“Formalizing India’s 1.5 million Informal Waste Pickers Could Increase Incomes by 50%” Says Paras Gupta, Head of EPR and Sustainability at GEM Enviro Management Pvt Ltd
In an interview with Policy Times of Chamber of Commerce, Mr. Paras Gupta, Head of EPR and Sustainability at GEM Enviro Management Pvt Ltd discussed in detail on integrated waste management infrastructure and the company’s recent IPO Success.
GEM Enviro Management Limited, a leading Waste Management Agency, with a range of services including EPR Fulfillment, ESG Consulting, and Project Advisory & Management for Plastic Credits. Their clients include prominent companies such as Coca Cola, SC Johnson, and Himalaya. They have a vast network of waste collectors and recyclers, preventing over 1 million metric tons of recyclable plastic waste and 100,000 metric tons of MLP waste from entering landfills.
Challenges in implementing integrated waste management:
When asked about the key challenges in implementing integrated waste management infrastructure in India, and how can they be addressed, he acknowledged the formidable task ahead, “One primary issue is the predominance of the informal sector, which handles approximately 90% of waste management but is not regulated by CPCB norms. This results in inadequate waste segregation and unsafe disposal practices, severely impacting the environment and public health.” He said, “India produces 62 million tonnes of waste annually, with 70% collected and only 12 million tonnes treated, leaving 31 million tonnes in landfills. The informal sector, comprising around 1.5 million waste pickers, works without proper training, equipment, or social security.”
He also reveals that, “The waste management sector struggles for recognition from government and financial institutions, limiting access to funding and banking services. Government policies focus more on regulation than direct support for the sector.”
Mr. Gupta suggests that integrating the informal sector into formal mechanisms through training, partnerships, effective waste segregation, and sustainable disposal practices. “This hybrid approach can improve waste management outcomes and lead to a more sustainable and equitable system.” says Mr. Gupta.
On EPR policies:
On question of, “How can EPR policies be effective in promoting sustainable waste management practices among producers, consumers, and waste managers? He emphasized that EPR policies are mandatory guidelines with penalties for non-compliance, up to INR 1 lakh per day in India as per the Plastic Waste Management Rules, 2016. Enforcing EPR policies incentivizes collection and recycling of post-consumer waste, with India targeting a 70% recycling rate for plastic packaging waste by 2022. This has reduced single-use plastics, increased consumer participation in waste segregation and recycling, and attracted large investments in the sector. “By implementing effective EPR policies, India can achieve a circular economy and minimize waste disposal in landfills and oceans.” He suggests.
Role of Technology:
In an answer to “What role do you think technology can play in enhancing waste segregation, collection, and processing in India’s integrated waste management infrastructure?” He highlighted technology’s vital role in waste management, stating, “The role of technology is essential at every step in waste management in India.” Smart dustbins can collect waste in a segregated manner, increasing efficiency by up to 30%. Advanced sorting technologies at Material Recovery Facilities (MRFs) can segregate waste into specific categories, increasing recycling rates by up to 25%. Technology can also optimize recycling processes at recycling facilities, resulting in a 15% increase in waste-to-resource conversion efficiency. Moreover, data analytics and IoT sensors can monitor and manage waste collection, transportation, and processing, reducing waste disposal costs by up to 20%.” Said Mr. Gupta.
Inclusivity in Waste Management:
Replying to a question on, “How can we ensure that the benefits of integrated waste management infrastructure reach all sections of society, particularly the informal sector and marginalized communities? He emphasized that integrated waste management infrastructure benefits all sections of society and the waste ecosystem. “The informal sector and marginalized communities can benefit significantly, with formalization increasing their income by up to 50%.” Inclusive programs can improve marginalized communities’ health and well-being, while decentralized systems can reduce transportation costs by up to 40%. Community engagement and participation in decision-making processes can increase public awareness and education. “By implementing policies like the Solid Waste Management Rules, 2016, and the Plastic Waste Management Rules, 2016, we can ensure the benefits reach all sections of society in India.”
Success Stories:
When asked about, “What are some successful examples of integrated waste management infrastructure in India that can be replicated or scaled up, and what are the key takeaways from these success stories?” He highlighted successful examples of integrated waste management infrastructure in India, noting that innovative models like NEPRA and others have demonstrated effective waste handling practices. “In India, there are several successful examples of integrated waste management infrastructure that can be replicated or scaled up.” The Alappuzha Model in Kerala has achieved 100% waste segregation and recycling, significantly reducing waste sent to landfills. The NEPRA model handles over 500 tonnes of dry waste daily, showing promising results. He emphasized key takeaways include segregation at source, decentralized systems, community engagement, public-private partnerships, and technology use. “These models can be replicated and scaled up across India, with modifications, to achieve sustainable, viable, and robust waste management infrastructure.”
On IPO’s Success:
GEM Enviro Management Limited launched an IPO on June 19, 2024. The IPO received an overwhelming response, being subscribed 265 times: retail investors 240 times, non-institutional investors 462 times, and QIBs 160 times.
Discussing the tremendous response to the IPO, he attributed the success to the recognition of his company’s GEM team effort, which has been working tirelessly in the field for 12 years, and the acceptance of companies working towards social causes and challenges. “We attribute this IPO success to recognition of our GEM team effort which has been working hard in this field from last 12 years and acceptance of such companies who are working for challenges and social causes.”
When asked about utilizing the funds raised from the IPO, he explained that the company plans to address other waste challenges beyond plastic, such as E-Waste, Battery, and Tyre waste, and other EPR compliance to build a strong foundation for infrastructure and recycling facilities in these sectors. “We plan to address other waste challenges beside plastic like E-Waste, Battery and Tyre waste and other EPR compliance to come to build the strong foundation to address infrastructure and recycling facilities in these sectors.”
Regarding delivering value to shareholders while maintaining environmental sustainability, he emphasized that the company has built trust in the industry by formalizing the informal sector in waste management, ensuring transparency from collection to recycling, and earning sustainable profits, which will continue in the future. “As I said, we have come a long way to some extent formalizing the informal sector in the waste and building the transparency from collection to recycling which has built the trust in the industry along with earning a sustainable profit which will continue in the future also.”
He believed that the IPO’s success sends a clear message to the market and industry about the importance of investing in sustainable waste management infrastructure. “The message is clear and loud that waste management is needed for the survival of humans and nature. So as the problem is huge so is the opportunity!”
Finally, he revealed that the IPO’s proceeds will be allocated towards expanding the company’s operations, enhancing technology, and increasing impact, with expected outcomes including forward and backward integration, building infrastructure for collection, enhancing existing capacities with recyclers, and advising companies on fulfilling new policies like BRSR, SDG, and ESG. “We are expanding in every direction with forward and backward integration for building the infrastructure for collection to building or enhancing the existing capacities with the recyclers. As new related compliances are introduced with BRSR, SDG, ESG, we are advising or advocating the companies on how to fulfil or align with these new policies.”
