Introduction

In our previous article, we covered the evolution of India’s Plastic Waste Management Rules, 2016 and the amendments notified in 2018, 2021, and 2022. One of the biggest reforms introduced during this journey was the insertion of Schedule II into the Rules through the Plastic Waste Management (Amendment) Rules, 2022 (G.S.R. 133(E), dated 16 February 2022), which laid down detailed Guidelines on Extended Producer Responsibility (EPR) for Plastic Packaging.

These Guidelines were later refined through the Plastic Waste Management (Second Amendment) Rules, 2022 (G.S.R. 522(E), dated 6 July 2022), which introduced the concept of biodegradable plastics, updated technical standards, and simplified the Environmental Compensation mechanism.

This article takes a practical, deep-dive look at how the EPR framework actually works — who needs to register, how targets are calculated, what recycling and recycled-content obligations apply, how EPR certificates are generated and traded, and how Environmental Compensation is imposed for non-compliance.

Quick Recap: Obligated Entities and Packaging Categories

Before going into the operational details, it helps to recall the building blocks of the EPR framework.

Obligated Entities

Brand Owners include online platforms/marketplaces and supermarkets/retail chains, other than those classified as micro and small enterprises under the Ministry of Micro, Small and Medium Enterprises criteria.

Categories of Plastic Packaging

The EPR obligations cover four key dimensions for each category:

1. Reuse
2. Recycling
3. Use of recycled plastic content
4. End-of-life disposal

Part 1: The EPR Registration Process

Who Must Register

Every Producer, Importer, Brand Owner, and Plastic Waste Processor must register on the centralized online portal developed by the Central Pollution Control Board (CPCB) before commencing business. No entity can operate without this registration, and registered entities cannot deal with any unregistered entity in the value chain.

Which Authority Grants Registration

Information Required at Registration

While registering, entities must provide:

• PAN number
• GST number
• Company’s CIN (Corporate Identification Number)
• Aadhaar number and PAN of the authorised person/representative
• Any other information as required by CPCB’s Standard Operating Procedure

Key Registration Rules

• Multiple sub-categories: If an entity falls under more than one sub-category (e.g., it is both a Producer and a Brand Owner), it must register separately under each sub-category.
• Multi-state units: If an entity has units in different States under the same sub-category, each unit must be registered separately. However, only one registration is needed per sub-category per State, even if multiple units of that entity exist within that State.
• New entrants: Entities starting business and placing products in the market for the first time in a given year will have their EPR target obligations apply from the following year.
• Timeline: Registration must be completed within two weeks from submission of a complete online application.
• Fees: CPCB may levy application processing fees and an annual fee for processing returns. Where an entity falls under an SPCB/PCC’s jurisdiction, CPCB may share the application fee with that SPCB/PCC.
• Revocation: If an entity is found to have provided false information, wilfully concealed information, or deviated from the stipulated conditions, its registration can be revoked for one year after an opportunity of hearing. During revocation, the entity cannot re-register.
• Deadline for the online system: CPCB was required to establish the online registration and returns-filing system by 31 March 2022; until then, EPR-related activities were to be carried out offline.

Marking and Labelling Linked to Registration (Rule 11, as amended)

Carry bags and plastic packaging must display the name, registration number of the producer or brand owner, and thickness (in the case of carry bags and plastic packaging). However, this requirement does not apply to:

• Plastic packaging used for imported goods;
• Cases falling under Rule 26 of the Legal Metrology (Packaged Commodities) Rules, 2011, with CPCB approval;
• Cases where printing the mandated information is technically infeasible, as per BIS labelling guidelines, with CPCB approval.

With effect from 1 January 2023, references to “manufacturer” in these labelling provisions were replaced with “producer or brand owner.”

Part 2: EPR Targets, Recycling Targets & Recycled Plastic Content

This is the operational heart of the EPR framework. Targets are determined category-wise for each type of obligated entity.

2.1 EPR Target for Producers

Eligible Quantity (Q1):

Q1 = Average weight of plastic packaging material sold in the last two financial years + average pre-consumer plastic packaging waste in the last two financial years − annual quantity supplied to Brand Owners in the previous financial year

Year-wise EPR Target (as % of Q1, category-wise):

2.2 EPR Target for Importers

Eligible Quantity (Q2):

Q2 = Average weight of plastic packaging material and/or plastic packaging of imported products sold in the last two financial years + average pre-consumer plastic packaging waste − annual quantity supplied to Brand Owners in the previous financial year

Year-wise EPR Target (as % of Q2, category-wise):

2.3 EPR Target for Brand Owners

Eligible Quantity (Q3):

Q3 = Average weight of virgin plastic packaging material purchased and introduced in the market in the last two financial years + average pre-consumer plastic packaging waste

Year-wise EPR Target (as % of Q3, category-wise):

All three entities must submit their category-wise EPR targets in metric tonnes as part of their Action Plan on the CPCB centralized portal.

2.4 Minimum Level of Recycling (Applicable to Producers, Importers, and Brand Owners)

Obligated entities must ensure a minimum level of recycling (excluding end-of-life disposal) of the plastic packaging waste collected under their EPR target:

For Category IV (plastic sheets and compostable-plastic carry bags), the “minimum level of recycling” means processing the waste for composting through industrial composting facilities.

2.5 End-of-Life Disposal

• Only plastics that cannot be recycled may be sent for end-of-life disposal — such as road construction, waste-to-energy, waste-to-oil, or cement kilns (co-processing) — following the relevant guidelines of the Indian Road Congress or CPCB.
• Final disposal of plastic packaging waste must follow the methodology specified in Rule 5(1)(b) of the Plastic Waste Management Rules, 2016.

2.6 Mandatory Use of Recycled Plastic Content

Producers, Importers, and Brand Owners must ensure their plastic packaging contains a minimum share of recycled plastic:

Note for Importers: Any recycled plastic used in imported material is not counted towards fulfilment of this obligation — the recycled content must be sourced/used independently.

Exemption route: Where statutory requirements make it impossible to meet the recycled-content obligation, CPCB may grant a case-by-case exemption. In such cases, the entity must instead purchase an equivalent-quantity certificate from another Producer/Importer/Brand Owner that has used recycled content in excess of its own obligation. CPCB is required to develop a mechanism for such exchanges on the centralized portal.

2.7 Reuse Obligation (Applicable Specifically to Brand Owners — Category I Rigid Packaging)

Brand Owners using Category I (rigid) plastic packaging must meet minimum reuse obligations, split by pack size:

A. Rigid packaging with volume/weight ≥ 0.9 litre or kg but < 4.9 litres or kg

B. Rigid packaging with volume/weight ≥ 4.9 litres or kg

Note: Reuse of Category I rigid plastic packaging in food contact applications is subject to regulation by the Food Safety and Standards Authority of India (FSSAI).

The quantity of rigid packaging reused is calculated by deducting it from the virgin plastic packaging manufactured/imported/purchased that year, and the reused quantity is correspondingly deducted from the total Category I packaging used by the Brand Owner. This information must be reported on the CPCB centralized portal.

2.8 Illustrative Examples (as given in the official Guidelines)

Example — EPR Target & Recycling (Category II, Year 2024–25)

Example — Reuse Obligation (Category I, Year 2025–26)

Example — Recycled Plastic Content (Category II, Year 2025–26)

2.9 Sustainable Packaging & Periodic Review

• CPCB will prepare guidelines to promote sustainable packaging, based on criteria such as: package design that promotes reuse; design amenable to recycling; recycled-content share; and design that is environment-friendly overall.
• All reuse, recycling, and recycled-content obligations will be reviewed every five years, based on the technologies available at the time.
• Where an obligated entity uses plastic packaging that is certified 100% biodegradable (leaving no micro-plastic, chemical residue, or adverse environmental/health traces, as certified by CPCB, BIS, or CIPET), the EPR target does not apply to that material. (This clause was later refined by the Second Amendment Rules, 2022 — see Part 4 below.)

Part 3: Surplus EPR Certificates — Generation, Carry-Forward, Offsetting & Trading

A distinctive feature of India’s EPR framework is that it allows obligated entities to trade compliance through EPR certificates.

How Surplus Arises and Can Be Used

An entity that has exceeded its category-wise EPR target can use the surplus for:

1. Offsetting a shortfall from the previous year;
2. Carrying forward for use in the succeeding year;
3. Selling it to other Producers, Importers, or Brand Owners.

Rules Governing Use of Surplus

• Surplus generated in one category can only be used for offsetting, carry-forward, or sale within that same category — it cannot be shifted across categories.
• Surplus under the Reuse head can be applied towards reuse, recycling, and end-of-life disposal.
• Surplus under the Recycling head can be applied towards recycling and end-of-life disposal.
• Surplus under End-of-life disposal cannot be used for reuse or recycling (i.e., it cannot be “upgraded”).

Purchase of Certificates

An obligated entity can meet its EPR obligation under a category by purchasing surplus EPR certificates from other entities in the same category. All such transactions must be recorded and submitted on the CPCB online portal at the time of filing annual returns, and CPCB is responsible for developing the exchange mechanism on the centralized portal.

Part 4: Environmental Compensation

The Governing Principle

Environmental Compensation (EC) under the Plastic Waste Management Rules is based on the “Polluter Pays Principle” — it applies to entities that fail to meet their EPR obligations, and the objective is to protect and improve environmental quality while preventing, controlling, and abating pollution.

Who Levies It

If an SPCB/PCC fails to act within a reasonable time, CPCB may issue directions to it.

Carry-Forward and Refund Mechanism (Original 2022 Guidelines)

Payment of Environmental Compensation does not absolve an entity of its underlying EPR obligation. A shortfall for a particular year is carried forward for up to three years, and if the shortfall is made good within that window, the compensation already paid is refunded on a sliding scale:

If the shortfall is not rectified even after three years, the entire compensation amount is forfeited.

Use of Collected Funds

Funds collected as Environmental Compensation are held in a separate escrow account by CPCB/SPCB/PCC and used specifically for the collection, recycling, and end-of-life disposal of uncollected or non-recycled plastic packaging waste relating to the entity on which the compensation was imposed. The modalities for annual utilisation of these funds are recommended by the EPR Implementation Committee and approved by the competent authority in the Ministry.

Simplification under the Second Amendment Rules, 2022

The Second Amendment Rules, 2022 (G.S.R. 522(E), dated 6 July 2022) replaced the earlier detailed Rule 18 with a concise, principle-based provision:

“Environmental Compensation shall be levied based upon the polluter pays principle, on persons who are not complying with the provisions of these rules, as per guidelines notified by the Central Pollution Control Board.”

This change allows CPCB to revise the detailed methodology for calculating and imposing Environmental Compensation through its own guidelines, without needing a fresh rule amendment each time — giving the system more flexibility to adapt over time.

Part 5: EPR Certificates from Plastic Waste Processors

Plastic Waste Processors (recyclers, and other processors including waste-to-energy, waste-to-oil, industrial composters) play a central role in helping obligated entities discharge their EPR obligations.

Registration and Reporting

• All Plastic Waste Processors must register with the concerned SPCB/PCC via the CPCB centralized portal, in line with Rule 13(3) of the Plastic Waste Management Rules, 2016.
• They must file annual returns by 30 April of the following financial year, giving the category-wise quantity of plastic waste processed.
• The total plastic waste processed, attributed to specific Producers/Importers/Brand Owners, is published annually on both the CPCB portal and the processor’s own website.
• If a processor is found to have provided false information, it can be debarred for one year from operating under the EPR framework.

Issuing Certificates

• Only registered Plastic Waste Processors can issue valid certificates for plastic waste processing — except where plastic waste is used in road construction, in which case the obligated entity itself provides a self-declaration certificate in the CPCB-prescribed format.
• Only certificates from registered processors are valid for fulfilling EPR obligations.
• The certified quantity of recycled plastic packaging waste cannot exceed the processor’s installed capacity.
• Certificates are issued category-wise and must include the enterprise’s GST data.
• Certificates are issued in the name of the registered Producer, Importer, Brand Owner, or local authority (as agreed), through a mechanism CPCB develops on the centralized portal.

Reporting by Obligated Entities

When filing annual returns (by 30 June of the next financial year), Producers, Importers, and Brand Owners must submit:

• Recycling certificates from registered recyclers only;
• Details of quantities sent for end-of-life disposal;
• Details of any reused and/or recycled content used in packaging;
• Details of the registered recyclers from whom recycled plastic was procured.

Where the figures declared by the obligated entity and the processor differ, the lower figure is taken into account for EPR compliance purposes — and all such certificates remain subject to verification by CPCB/SPCB/PCC.

Part 6: Institutional Roles and the Centralized Online Portal

Role of CPCB

• Registers Producers, Importers, Brand Owners operating in more than two States, and all Plastic Waste Processors requiring central registration.
• Prescribes the Standard Operating Procedure for registration.
• Verifies compliance through inspections and periodic audits (directly or through a designated agency).
• Publishes, by 30 September each year, the list of entities that failed to meet their EPR targets in the previous financial year.
• Establishes a dialogue mechanism between stakeholders.
• Conducts a half-yearly compositional survey of mixed municipal waste to assess plastic content share.
• Periodically reviews the technologies available for reuse, recycling, and recycled-content compliance.

Role of SPCBs / PCCs

• Register Producers, Importers, Brand Owners operating in one or two States, and Plastic Waste Processors, through the CPCB portal.
• Verify compliance in their jurisdiction through inspections and audits.
• Publish an annual “Exception Report” listing entities that failed to meet EPR obligations.
• Submit annual compliance reports to CPCB and upload them to the EPR portal.
• Conduct their own half-yearly compositional survey of municipal waste.

The Centralized Online Portal

CPCB was mandated to establish the online system for registration and returns filing by 31 March 2022. The portal:

• Reflects the material balance of plastic packaging introduced into the market by Producers/Importers/Brand Owners each financial year;
• Shows details of audits of obligated entities, recyclers, and other waste processors;
• Serves as the single-point data repository for orders and guidelines relating to EPR implementation under the Rules.

Until the portal was fully developed, EPR-related activities were to continue offline.

Committee for EPR Implementation

CPCB has constituted a committee, chaired by the Chairman, CPCB, to recommend measures for effective EPR implementation (including amendments to the Guidelines), monitor implementation, resolve difficulties, and guide/supervise the online portal (including approving forms). Its members include representatives from:

• Ministry of Housing and Urban Affairs
• Ministry of Micro, Small and Medium Enterprises
• Department of Drinking Water and Sanitation
• Department of Chemicals and Petrochemicals
• Bureau of Indian Standards (BIS)
• Three SPCBs/PCCs
• Central Institute of Plastics Engineering & Technology (CIPET)
• National Environmental Engineering Research Institute (NEERI)
• Three industry associations, and other invitees as decided by the Chairperson.

Part 7: What Changed Under the Second Amendment Rules, 2022

The Second Amendment Rules, 2022 (G.S.R. 522(E)) made several refinements directly relevant to the EPR framework:

• Biodegradable plastics defined and regulated separately. A new definition of “biodegradable plastics” was inserted (distinct from compostable plastics), governed by BIS standards and CPCB certification.
• Rule 9(1) substituted to clearly state that Producers, Importers, and Brand Owners must fulfil EPR “as per guidelines specified in Schedule-II” — anchoring the obligation directly to Schedule II rather than general government guidelines.
• Rule 10 substituted with detailed “Protocols for compostable and biodegradable plastic materials,” including the updated standard IS/ISO 17088:2021 for compostable plastics and the interim standard IS 17899 T:2022 for biodegradable plastics, along with a provisional-certification mechanism (valid till 30 June 2023, with production/import under interim certification to cease after 31 March 2023).
• Rule 13 amended to make Importers explicitly subject to registration requirements (previously the rule text referred mainly to Producers), and registration was made subject to fulfilling Schedule II obligations.
• New Rule 18 inserted — the simplified Environmental Compensation provision discussed in Part 4 above.
• Schedule II, Paragraph (3) omitted, streamlining the Guidelines.
• Schedule II, Paragraph 7.8 substituted: where an obligated entity uses plastic packaging made from biodegradable plastics, Rule 10 provisions apply instead, and the EPR target does not apply to that packaging.
• Form I, IV, and VI updated to align reporting formats with the Schedule II guidelines and registration categories, and a new “Importers” section was added to Form I.

Frequently Asked Questions (FAQs)

Q1. Who needs to register on the CPCB EPR portal?

Every Producer, Importer, Brand Owner, and Plastic Waste Processor dealing in plastic packaging must register on the centralized portal developed by CPCB before commencing business. No entity may operate, or transact with an unregistered entity, without this registration.

Q2. How is the EPR target calculated?

It is calculated category-wise as a percentage of a base “eligible quantity” — derived from the average plastic packaging sold/imported/introduced in the last two financial years, plus pre-consumer packaging waste, minus (for Producers/Importers) quantities already supplied to Brand Owners. The percentage target rose from 25% (2021–22) to 70% (2022–23) to 100% (2023–24 onwards).

Q3. What is the minimum recycling requirement?

It varies by packaging category and year — for example, Category I and Category IV packaging require 50% recycling in 2024–25, rising to 80% by 2027–28 onwards; Category II and III require 30% rising to 60% over the same period.

Q4. Can EPR obligations be met by purchasing certificates from another company?

Yes. Entities that have exceeded their targets in a category can sell surplus EPR certificates to other entities in the same category. Purchasing such certificates is also the prescribed route for meeting the recycled-content obligation when statutory constraints make direct compliance impossible.

Q5. What happens if a company fails to meet its EPR target?

Environmental Compensation is levied on the polluter-pays principle, by CPCB (for entities operating in more than two States) or the relevant SPCB/PCC (for others). The shortfall itself is also carried forward for up to three years, with partial refund of the compensation if it is rectified within that window.

Q6. Are biodegradable plastics subject to EPR targets?

No. Following the Second Amendment Rules, 2022, plastic packaging made from certified biodegradable plastics is governed by the protocols under Rule 10 instead, and the EPR target does not apply to such packaging.

Q7. What is the deadline for filing EPR annual returns?

Producers, Importers, and Brand Owners must file annual returns by 30 June of the next financial year. Plastic Waste Processors must file their returns by 30 April of the next financial year.

Conclusion

The Schedule II Guidelines transformed India’s Extended Producer Responsibility framework from a broad policy commitment into a measurable, portal-driven compliance system with clear registration requirements, category-wise numeric targets, a certificate-trading mechanism, and a defined Environmental Compensation structure. The Second Amendment Rules, 2022 further refined this system by carving out a separate regulatory pathway for biodegradable plastics and simplifying the compensation mechanism to allow CPCB greater flexibility going forward.

For Producers, Importers, Brand Owners, and Plastic Waste Processors, staying compliant now depends on active use of the CPCB centralized portal — registering correctly, tracking category-wise targets, maintaining verifiable records with registered recyclers, and filing timely annual returns. As recycling and recycled-content targets continue to rise through 2028–29 and beyond, early alignment with these obligations will be key to avoiding Environmental Compensation and ensuring uninterrupted business operations.

References

1. Plastic Waste Management (Amendment) Rules, 2022 – G.S.R. 133(E), dated 16 February 2022 (inserting Schedule II — EPR Guidelines for Plastic Packaging), MoEFCC
2. Plastic Waste Management (Second Amendment) Rules, 2022 – G.S.R. 522(E), dated 6 July 2022, MoEFCC
3. Plastic Waste Management Rules, 2016 – G.S.R. 320(E), dated 18 March 2016, MoEFCC
4. Plastic Waste Management (Amendment) Rules, 2018 – G.S.R. 285(E), dated 27 March 2018
5. Plastic Waste Management (Amendment) Rules, 2021 – G.S.R. 571(E), dated 12 August 2021
6. CPCB Centralized Online Portal for Extended Producer Responsibility (EPR) on Plastic Packaging