Mint Explainer | From Goa to Uttarakhand: how states are pushing for bottle recycling
The Deposit Return Scheme (DRS), a circular economy initiative, is gaining momentum across India as states explore incentive-based systems to improve the collection, recovery and recycling of plastic waste and packaging, including beverage and liquor bottles.
Following Goa, Uttarakhand and Himachal Pradesh are working to finalise frameworks for statewide implementation, aiming to improve the collection and recycling of glass and plastic bottles and other packaging waste. Mint explains why states are turning to incentive-based systems to tackle packaging waste and promote recycling.
What is a Deposit Refund Scheme?
Under the scheme, manufacturers register eligible packaged products on a digital platform and assign unique quick-response (QR) codes to track the packaging through the supply chain. Consumers pay the product's maximum retail price (MRP) plus an additional refundable deposit, expected to be around ₹2–10 for covered products. After using the product, the customer takes the eligible empty bottle or package to an authorised collection point or designated return machine. The product's code is scanned or verified, and the consumer receives the applicable refund under the scheme's return process. The system aims to improve collection rates for plastic, glass and metal packaging while reducing litter and boosting recycling efficiency. Countries across Europe and parts of Africa have already used DRS to improve recycling outcomes.
Why are states turning to DRS to tackle packaging waste?
According to the United Nations Development Programme (UNDP), India generates 15 million tonnes of plastic waste every year, but only one fourth of this is recycled due to lack of a functioning solid waste management system. Some of the remaining plastic waste is processed through co-processing or used in road construction, while the rest is often mismanaged, ending up as litter or in open dumps and contributing to environmental degradation. Packaging is the primary driver of plastic waste, representing about 59% of the total plastic consumed in India. This demand will only increase with the growth and development of sectors such as pharmaceuticals, retail, and fast-moving consumer goods (FMCG), along with demand for plastic in other sectors such as construction and agriculture. So, the move could help reduce litter and strengthen the circular economy by creating incentives for consumers to return used packaging. For this, the collection systems need to improve alongside recycling targets. According to experts, DRS is not being viewed merely as a waste management tool, but as a mechanism to build a more circular economy where packaging materials remain in continuous use rather than becoming environmental waste.
Goa is among the early movers in implementing a Deposit Return Scheme. What are its key features?
The Goa Deposit Refund Scheme (GDRS) Authority would roll out the scheme for liquor and liquor-based products initially, extending it later to other recyclable material. It will be implemented from April next year and all producers, importers and brand owners (PIBOs) dealing in liquor products must obtain registration. Phase-I will cover liquor and liquor-based commodities packaged in glass, plastic, metal and other notified packaging materials. Goa has proposed refundable deposits of ₹5-10 per unit on alcoholic beverage packaging under the first phase of its DRS, according to the proposed framework. The deposit will be ₹10 for beer and ready-to-drink (RTD) beverages sold in containers exceeding 500 ml, and ₹5 for those in containers of 500 ml or less. For other liquor, the proposed deposit is ₹10 for containers exceeding 180 ml and ₹5 for those of 180 ml or less. The proposed deposits will apply to glass bottles, PET bottles, metal cans, Tetra Pak and other packaging notified under the scheme.
Which other states are preparing for statewide implementation of the scheme?
Uttarakhand is preparing a framework for statewide implementation of its digital Deposit Return Scheme (dDRS), after collection rates across the Char Dham pilgrimage routes rose to over 90% in FY26 from around 30% in FY23. The scheme would cover all non-biodegradable products and materials such as water bottles, cold-drink bottles and multi-layer plastic (MLP) packaging like chip packets. At present, glass bottles and metal cans are excluded from the material stream. Uttarakhand began it as a pilot at Kedarnath during the 2022 Char Dham Yatra and then extended it to Gangotri and Yamunotri. Rudraprayag district received the Digital India Award 2022 for the pilot. In August 2024, the state government and the Uttarakhand Pollution Control Board took the lead in advancing the implementation of the dDRS across the state. This season, Gangotri saw the return of around 273,000 end-of-use PET bottles, while Yamunotri recorded more than 149,000 such returns.
Similarly, Himachal Pradesh is targeting to implement the scheme in a phased manner starting April 2027, following the complete set-up of state-mandated material recovery facilities (MRFs), automated collection points, and mandatory QR labelling integrations across the state. The scheme would cover glass bottles, plastic bottles, aluminium beverage containers, liquid packaging board (Tetra Paks), flexible plastic packaging and multi-layered packaging.
Why could DRS become an important part of India's circular economy?
A circular economy seeks to keep materials in use for longer instead of allowing them to become waste. DRS can improve the collection of recyclable packaging, provide material for recycling and reduce litter. It can also create opportunities for waste collectors and recycling businesses while encouraging producers to take greater responsibility for packaging recovery. "By rewarding consumers for returning beverage and liquor containers, these schemes aim to improve collection, boost recycling and promote a circular economy, turning discarded packaging into a valuable resource," said Pradeep Sangwan, founder and president of the Healing Himalayas Foundation. The foundation enabled door-to-door collection systems in 50+ villages, achieving 90–95% source segregation, and together these systems now manage over 1,740 tonnes of waste. These material resource facilities are equipped with essential machinery and supported by digitised data tracking for transparency and accountability. However, lasting results will depend on strong collection infrastructure, clear rules, appropriate incentives and coordination among governments, businesses, consumers and waste pickers.