Parliament Question: Circular Economy

GOVERNMENT OF INDIA MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE LOK SABHA UNSTARRED QUESTION NO. 4914 TO BE ANSWERED ON 23.03.2026

Circular Economy

4914. SHRI B K PARTHASARATHI:

SHRI BASTIPATI NAGARAJU:

Will the Minister of ENVIRONMENT, FOREST AND CLIMATE CHANGE be pleased to

state:

(a) the details of number of jobs generated through circular economy initiatives in the country, State/UT-wise;

(b) the details of steps taken by the Government to promote the circular economy in the country, including policy frameworks, incentive schemes, regulatory reforms and technology adoption;

(c) the details of States which have adopted circular economy policies and aligned their regulations accordingly;

(d) the amount of financial assistance or grants sanctioned and released by the Central Government to support these States' policies; and

(e) whether the Government plans to institute a central monitoring and evaluation mechanism for circular economy job creation and policy alignment and if so, the details thereof? ANSWER MINISTER OF STATE IN THE MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE (SHRI KIRTI VARDHAN SINGH)

(a) to (e). Under the Circular Economy framework, Waste Management Rules have been notified for different waste categories such as plastic waste, battery waste, e-waste, waste tyre, used oil, end-of-life vehicles, construction and demolition waste, non-ferrous scrap metal and Solid Waste.

The detail of Waste Management Rules linked to the circular economy is as follows i. Extended Producer Responsibility (EPR) for Waste Tyre, 2022 on

21.07.2022. ii. Battery Waste Management Rules, 2022 on 22.08.2022 and its amendments dated 25.10.2023 and 14.03.2024. iii. E-Waste (Management) Rules, 2022 on 02.11.2022 and its amendments dated 30.01.2023 and 24.07.2023.

iv. Plastic Waste Management Rules, 2016 amended on 27.04.2023 for effective implementation of EPR guidelines. v. Extended Producer Responsibility (EPR) for Used Oil on 18.09.2023. vi. EPR Framework for Environment Protection (End-of-Life Vehicles) Rules, 2025 on 06.01.2025.

vii. Environment (Construction and Demolition) Waste Management Rules, 2025 on 02.04.2025 Page 1 of 3viii. Extended Producer Responsibility for Scrap of Non-Ferrous Metals on

01.07.2025 MoEF&CC has notified market based Extended Producer Responsibility (EPR) framework under the waste management rules with provisions for recycling and reuse, thus promoting circular economy in respective waste categories.

As per the EPR framework, the producer, importer or brand owner (PIBOs)/ Original Equipment Manufacturers (OEMs) who introduces the product in the market are obligated for its environmentally sound management after end-of-life of such products.

Along with the EPR targets, EPR framework also imposes mandatory annual targets for recycling and/ or use of recycled content. To promote ease of doing business, online EPR portals with features for registration, EPR obligations, EPR Certificate generation etc.

have been developed and are operational for plastic packaging, e- waste, battery waste, waste tyre and used oil waste.

Under the EPR mechanism, the provision of transfer of EPR certificates provides financial incentives to recyclers, encouraging capacity expansion, technological upgradation and increased recycling activities, which collectively contribute to generation of jobs across the entire value chain of the recycling sector. Further, the EPR mechanism facilitates formalization of the recycling sector by integrating the informal recycling sector into organized systems. Status of implementation of EPR frameworks (as on 05.03.2026) is as follows:

Type of Waste No. of Registered Waste EPR Certificate recyclers recycled Generated (MT)

(MT) Plastic Waste 2986 196.97 lakh 196.97 Lakh Battery Waste 520 69.37 Lakh 16.14 Lakh Tyre Waste 579 122.29 Lakh 116.94 Lakh E-Waste 386 28.75 Lakh 11.86 Lakh Used Oil 103 0.19 Lakh 0.02 Lakh

417.57 341.93 Total 4,574 Lakh MT Lakh MT NITI Aayog launched three Reports on "Enhancing Circular Economy in End-of-Life Vehicles (ELVs), Waste Tyres and E-waste and Lithium-ion Batteries in India" in January, 2026. These reports provide recommendations for infrastructure development, sector formalisation, strengthening the Extended Producer Responsibility (EPR) framework, and enhancing economic potential for revenue generation.

The 4th National Conference of Chief Secretaries (NCCS) held in New Delhi on 13-15 December 2024 had ‘Circular Economy’ as one of the sub-themes. The Conference was attended by all the State/UTs and aimed at institutional orientation of all States/UTs for transition to circular economy.

Page 2 of 3States including Bihar, Odisha, Arunachal Pradesh, Punjab, Madhya Pradesh, Himachal Pradesh, Uttar Pradesh, Meghalaya, Chhattisgarh have specific provisions for promotion of circular economy in their Industrial Policy Resolution. States have also launched capital subsidy schemes as well as investment promotion incentive schemes to promote recycling and waste processing industries.

Other initiatives of the government for mainstreaming circular economy are as follows: i. Under the National Critical Mineral Mission (NCMM) of Ministry of Mines, launched on 2nd October, 2025, the Government has approved Rs. 1,500 crore incentive scheme for critical mineral recycling. The Scheme incentivizes creation of recycling capacity for the extraction of critical minerals, including lithium, nickel and cobalt, from used products like Spent Lithium- ion batteries

(LiBs) and e-waste to build supply chain resilience and reduce import dependence in critical minerals ii. Ministry of Electronics and Information Technology has taken initiative to create a complete eco-system to upgrade informal sector into formal value chain through a project on “Informal Sector Capacity Building Upgradation with formation of recycling clusters under MSME scheme and Enabling Technology for Recovery of Resources from Electronic Waste thereby Promoting Resource Efficiency and Circular Economy”.

iii. MoEF&CC has facilitated the signing of Memorandum of Understanding between CSIR laboratories and recycler organisations on 10th December, 2024, to facilitate technology transfer and technical support to establish state-of-the- art recycling infrastructure and support domestic waste recycling.

iv. Mission LiFE (Lifestyle for Environment), which is a citizen-led initiative that focuses on inspiring and enabling individuals to adopt sustainable lifestyles through day-to-day voluntary actions, addresses areas closely linked to circularity, including conservation of energy and water, waste reduction and segregation, e-waste management, reduced use of single-use plastics, and sustainable food systems. MoEF&CC in collaboration with various stakeholders including Line Ministries, State/UT governments has undertaken several mass mobilisation campaigns and awareness initiatives aligned with the principles of Circular Economy.

v. The Central Government has formulated the Voluntary Vehicle-Fleet Modernization Program (V-VMP) that inter-alia targets scrapping of unfit and polluting vehicles strictly based on their fitness, and promotes setting up of Registered Vehicle Scrapping Facilities, which is primarily focused towards the scrapping of unfit vehicles through automated equipment and its scientific recycling.

vi. The Central Government also provides incentives to States/UTs under the Scheme for Special Assistance to States for Capital Investment (SASCI) 2025-

26. Rs. 2,000 crore has been earmarked under the Scheme to promote scrapping of vehicles at Registered Vehicle Scrapping Facilities (RVSFs) and related implementation measures under the Voluntary Vehicle-Fleet Modernization Program.

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