Tech Makeover for Scrapping

That happens when your electronic gadget grows old? You perhaps sell it to a
nearby raddiwala for a few rupees. Then what? In all probability, this waste
will go on to become a part of the ever-increasing mount that is getting
accumulated all over the country.

According to a recent statement by the Central Pollution Control Board (CPCB),
Mumbai tops the list of e-waste producing cities in the country followed closely
by Delhi at the second position. The board also predicts the countrys annual
e-waste production will touch the 8,00,000 tonnes mark by 2012. Affirming this,
Jeevesh Kumar, executive director, Greenscape Eco Management says, "Due to the
wide spectrum of constituents contained in e-waste, a broad range of equipment
and technology is required for processing all of them. This requires a huge
investment considering that most of the e-waste in India goes to the
unauthorized scrap dealers, and the licensed players get only about 10% of the
total e-waste."

In this scenario, the effort of recyclers seems commendable as they are
attempting what can be called an herculean task in India. They are trying to
break into the huge informal e-waste recycling sector and establish a formal
recycling ecosystem.

Here we try and establish the nuances of the recycling business. And in a
way, this is actually on popular demand, since we got a lot of reader mails
asking us what is the scope and method of setting up an e-waste recycling plant
in India.

Modeling it Up

Basically, the business model of most recyclers revolves around the basic
setup where e-waste is collected and treated in a way that is safe for the
workers as well as the environment.

The model of functioning followed by most recyclers is not the one wherein
the valuable part is taken away while the remaining is thrown away. They have
been trying to ensure that approximately 99.99% of the waste is recycled and
used again. Describing their operational model of collecting e-waste, Kumar
explains, "GEM works with mass producers of e-waste and uses comprehensive
de-manufacturing and reverse logistical processes to process e-waste into its
component fractions which can be further re-used by the manufacturers. GEM also
serves companies which have custom bonded equipments awaiting disposal."

In treating e-waste, the aspect of logistics also assumes great importance.
"Yes, logistics and all India collection network is one of the most important
success criteria for this chain," opines Rahul Gupta, director, RT Outsourcing
Services. Logistics plays a very important role in this industry. Collection
from different sources all over the country is a major challenge.

The scrap dealer network, on the other hand, has a marked advantage in terms
of collection and logistics due to the kabariwala chain who collect waste from
doorsteps at very low costs. In the words of Kumar, a solution to this could be,
"The formal recycling sector could benefit from this by working out a strategy
where the informal sectors low cost collection mechanisms can be coupled with
the best practices available with the formal recyclers."

Fair Treatment

A few use the general software while others follow specific procedures.
Describing the methodology followed at Greenscape, Kumar says, "GEM has a
recycling facility in Alwar which is equipped to handle all kinds of e-waste. We
follow a process driven methodology rather than an extreme technology driven
operation. Upon dismantling and separation, GEM works with vendors who process
the component fractions obtained from e-waste. For example, ferrous metals are
forwarded to the government approved metal smelters and printed circuit boards
(which contain hazardous substances) are processed at Umicore in Belgium.
Umicore employs an extremely complex metallurgical process to dispose off
printed circuit boards, while recovering precious metals contained in them."

Meanwhile, others like KG Nandini Enterprises started recycling activities in
2008 by installing their first e-waste recycling plant that made use of the
European technology. The recycling plant that was procured from Switzerland is
capable of processing 1 tonne of e-waste like computers, printed circuit boards,
electrical cables, mobile phones, etc. Other new entrants like RT Outsourcing
are also creating a pathway for themselves. Describing the method followed by
them, Gupta explains, "We are creating a separate company with equity
participation from a leading e-waste recycler of the world. Their patented
technology would be used by RTO."

The Scope

Many people feel that there is a lot of value in this field, but the entire
perspective of e-waste handling is an expensive proposition and above all, those
who enter this segment need to have a thorough knowledge of e-waste. Sound
government support is also essential.

Apart from that, even if companies take the corporate social responsibility
related to e-waste seriously then the picture will change totally. Talking about
the scope of this field, Gupta says, "The potential is immense. However, it is a
long term story with a huge focus on the collection of good quality and high
volume of e-waste."

Affirming his stand, Kumar adds, "The business is at a nascent stage and
requires a lot of effort in terms of building awareness among the producers of
e-waste. However, given the fact that India has a huge market for refurbished
goods, there are good prospects for companies engaged in refurbishing of used
electronics. At the same time, the amount of precious metals contained in
e-waste makes it a profitable business.

Given the fact that there are different levels at which e-waste processors
can operate, the RoI varies considerably and the range is between 10% to 25%."

Government Regulations

Even the government is trying to do its best for this field. This field
requires tight monitoring to ensure that nothing harmful is discharged into the
water table or landfill. Recently, the Ministry of Environment and Forests (MoEF)
issued a statement that the rules for e-waste would be announced by March 2010.
The rules would contain provisions regarding the take-back policy being set by
the IT industry and also highlight the collection centers being set up by them.

It also intends to ensure that steps are taken so that the informal sector is
integrated into the formal stream of e-waste management. While Gupta says, "The
e-waste policy (regulation) is likely to become effective in 2010. It would put
the responsibility of disposing e-waste in an environment-friendly manner on
producers and consumers. It would become mandatory to use an authorized recycler
after the regulation is in force."

Talking about the finer nuances that shall ensure the success of the policy,
Kumar elaborates, "Currently, the e-waste policy is limited to the rules on
storage, shipment and cross boundary movement of e-waste even from one state to
another. However, the MoEFs proposed e-waste policy is a step in the right
direction and would definitely be a big boost for the recyclers. The policy
talks about making producers responsible for recycling the goods they produce as
well as for clarity in terms of how companies dispose off their e-waste. This
would certainly enhance the demand for safe recycling. It is extremely essential
that the government backs up the policy through stringent enforcement."

According to a statement issued by the MoEF, there are 36,165 hazardous waste
generating industries in the country. Apart from that, approximately 6.2 mn
tonnes of hazardous waste is generated by them every year, of which landfillable
waste is 2.7 mn tonnes, incinerable 0.41 mn tonnes and recyclable hazardous
waste is 3.08 mn tonnes. Considering this mounting pile of e-waste, the role of
the recycler assumes even greater significance.

But cautioning those who intend to jump on to the bandwagon in a hurry, Gupta
says, "The recyclers business is exciting but futuristic, and one where real
returns should be expected only in the long run."

E-waste recycling therefore is literally a business for those who are ready
to enter in a long term relationship!

Shilpa Shanbhag

shilpas@cybermedia.co.in