India is among the largest generators of electronic waste in the world — yet a major share of this e-waste is still processed informally, without safety standards or legal accountability. To bridge this gap and encourage responsible recycling, the Central Pollution Control Board (CPCB) introduced Environmental Compensation (EC) under the E-Waste Management Rules, 2022.
This blog will help you understand what Environmental Compensation is, who needs to comply, and how it’s reshaping India’s e-waste recycling and Extended Producer Responsibility (EPR) landscape.
Environmental Compensation (EC) is a monetary penalty imposed on producers, recyclers, and other stakeholders when they fail to comply with the provisions of the E-Waste Management Rules. It ensures that environmental costs are recovered when entities do not fulfil their EPR targets or violate compliance protocols.
The rules apply to a wide spectrum of stakeholders involved in the life cycle of electrical and electronic equipment, including:
You may be liable to pay EC in the following cases:
In this regime, the fine is calculated based on the cost of handling each material:
| Material | EC per Unit |
| Gold | ₹2,575 per gram |
| Copper | ₹1,875 per kg |
| Iron | ₹101 per kg |
| Aluminium | ₹456 per kg |
These fines are fixed based on the violation type:
| Entity Type | 1st Offense | 2nd Offense | 3rd Offense |
| Producers | ₹ 20,000 | ₹ 40,000 | ₹ 80,000 |
| Recyclers/Refurbishers | ₹ 15,000 | ₹ 30,000 | ₹ 60,000 |
| Unregistered Handlers | ₹15,000 + ₹93/kg seized |
If you delay the EC payment:
The CPCB has introduced a refund mechanism to encourage corrective action:
| Timeline to Meet Missed Target | Refund Percentage |
| Within 1 year | 85% |
| Within 2 years | 60% |
| Within 3 years | 30% |
The money collected through Environmental Compensation is not just punitive. It funds:
To ensure fair practices and stop underpricing in the EPR certificate market, the government introduced EC-based pricing. This means the price of an EPR certificate must range between 30% and 100% of the EC value.
| Material | EC Value |
| Gold | ₹2,575/g |
| Copper | ₹1,875/kg |
| Iron | ₹101/kg |
The CPCB has also standardized prices across e-waste product categories to prevent undercutting:
| Category (Acronym) | EC (₹/kg) |
| ITEW (IT Equipment) | ₹ 112 |
| CEEW (Consumer Electronics) | ₹ 74 |
| EETW (Electrical Tools) | ₹ 82 |
Before this framework, some recyclers were issuing fake or low-cost certificates without conducting actual recycling. Now, with minimum price rules:
The introduction of Environmental Compensation under the E-Waste Management Rules is more than just a penalty mechanism — it is a policy tool for:
