The Centre for Science and Environment (CSE) published a report in July 2026 comparing the costs incurred by municipalities to manage plastic packaging waste in India and the compensation available through the country’s Extended Producer Responsibility (EPR) framework (FPF reported). The report finds that EPR compensation may not fully cover the costs of managing flexible and multilayer plastic packaging, particularly in geographically challenging regions.
The report examines five Indian cities – Indore, Pune, Goa, Dharamshala, and Sri Vijaya Puram – that represent diverse waste management contexts. The authors compared estimated costs for collection, sorting, transport, and disposal of plastic waste with EPR credit values established under India’s Plastic Waste Management (PWM) Rules.
Cost performance across packaging categories
The report found substantial differences between the three packaging categories that exist under India’s PWM Rules. Category I covers rigid plastic packaging, Category II covers flexible plastic packaging, and Category III covers multilayer plastic packaging.
Category I (rigid plastics) showed the lowest management costs and the highest levels of cost recovery under the current EPR framework. In many cities, EPR credit rates exceeded estimated management costs, resulting in cost recovery rates well above 100%.
Category II (flexible plastics) incurred higher collection and processing costs and showed more variable performance. While EPR payments could cover costs in some large urban systems such as Indore and Pune, the report found that compensation was often insufficient in regions facing greater logistical and infrastructure challenges.
Category III (multilayer plastics, MLPs) emerged as the most expensive and difficult packaging category to manage. The report estimated that MLP management costs substantially exceeded those of Categories I and II, particularly in remote or geographically challenging locations.
For MLPs, management costs ranged from 2.35 to 3.67 Indian Rupees (INR)/kg in Indore and from 9.87 to 11.83 INR/kg in Sri Vijaya Puram. So even in Indore, where costs were lowest, costs may still exceed the EPR credit values for Category III plastics of 2.37 to 7.90 INR/kg. Several locations are unlikely to cover management costs, especially where transportation and processing are more expensive. The authors argue that because MLPs are the category with the largest financing gap, they remain heavily reliant on co-processing (e.g. in cement kilns) or disposal rather than material recycling.
Report criticizes 2024 revised definition of multilayer plastics
One of the report’s key criticisms was of the amendments made in 2024 to definitions of MLPs under India’s PWM Rules. According to the authors, changes to the definition of MLPs allow certain packaging formats, including metallized flexible packaging commonly used for snack foods and sachets, to be managed under the less stringent Category II requirements rather than Category III obligations.
The authors of the report argue that this reclassification may reduce producer obligations and increase reliance on co-processing and disposal rather than material recycling. The authors therefore recommend restoring the previous treatment of multilayer plastics under Category III of the EPR framework.
Expansion of EPR to additional packaging materials
Beyond plastics, the report highlights India’s efforts to broaden EPR requirements to include paper, glass, and metal packaging, among others. According to the report, this reflects an ongoing transition toward a more comprehensive packaging waste management framework and a broader circular economy approach.
References
Bisht, T. S., Singh, S. G. and Biswas, A. (2026). “Policy, Practice and Plastic: Cost of Managing Plastic Waste in Indian Cities.” Centre for Science and Environment, New Delhi.
