South Korean companies LG and Samsung have filed a lawsuit against the Indian government to overturn a new policy requiring corporations to make minimum payments to e-waste recyclers. About this informs Reuters.
India is currently the world’s third largest producer of e-waste, after China and the United States. However, according to official data, only 43% of such waste was recycled last year, and around 80% of the industry is made up of informal collectors. Prior to this, similar lawsuits were filed by other companies, including Daikin, India’s Havells and Voltas, which belongs to the Tata Group.
Samsung and LG previously opposed the introduction of mandatory payments to processors, noting that such a decision would significantly increase their costs. The Indian government insists that the new rules are intended to encourage the development of the formal processing sector and attract more investment.
LG’s lawsuit in the Delhi High Court said the new requirements “ignore the fact that simply taxing companies under the guise of the ‘polluter pays’ principle will not achieve environmental goals.” The company also notes: “If the authorities were unable to regulate the informal sector, it is a failure on the part of control.”
In its lawsuit, Samsung states that “price regulation alone does not contribute to the protection of the environment” and emphasizes the “significant financial burden”. Under the new regulations, companies are required to pay at least 25 US cents for every kilogram of e-waste that can be recycled. According to manufacturers, this almost triples their costs and mostly benefits only processors.
In a letter to the government, LG explained that the proposed rates are “too high and should be reduced” and pricing should be left to the market. In its lawsuit, Samsung said it had approached Prime Minister Narendra Modi’s office with a warning that the new tariffs would be 5 to 15 times higher than the current level of payments.
The Indian air conditioner manufacturer Blue Star also filed a lawsuit, citing excessive regulatory pressure. Meanwhile, Johnson Controls-Hitachi recently withdrew its lawsuit without explanation.
