US AC maker Carrier sues India over e-waste rules: report

US-based air conditioner (AC) maker Carrier is the latest global company to file a lawsuit against the Indian government over recently revised electronic waste (e-waste) recycling rules, Reuters reported on Monday.

Carrier’s Indian subsidiary filed a 380-page petition on 3 June, arguing that the government’s pricing mandates interfere with private contracts and are not justified.

“Recyclers were willing to operate under the older rates,” the company stated in its court filing, and labelled the new rules an “unfair and arbitrary” burden that would result in a “huge financial burden” on its operations, according to Reuters.

Carrier joins other global firms including Samsung Electronics, LG Electronics, Daikin, and Tata-owned Voltas that are contesting the revised rules. All the companies have requested the Delhi High Court to overturn the regulations. A hearing is scheduled for 8 July.

The government introduced the updated recycling rules in September 2023. Under the new policy, producers are required to pay a minimum of Rs22 per kilogram to authorized recyclers.

According to manufacturers, this rate is three to four times higher than previous costs.

India is the world’s third-largest generator of e-waste, following China and the US. However, government estimates show that only 43% of this waste was recycled last year.

The Ministry of Environment has defended the revised pricing system in earlier court filings, describing it as a “reasonable” and “proportionate” step to improve recycling efficiency.

Last year, Carrier reported $248 million in revenue from India, making its best performance in the market since at least the fiscal year ending March 2020.

The company also highlighted its long-standing presence in India, dating back to the installation of the country’s first air-conditioning system in Jaipur in 1936.

Carrier and the Ministry of Environment have not issued any statement on the matter yet.