The r-PET industry has so far invested an estimated Rs 7,500-8,000 crore, with a total planned capacity of 4 lakh metric tonnes
| Photo Credit:
K_Ananthan
The recycled PET industry is facing a crisis amid poor uptake of recycled plastic by major brand owners over policy ambiguity stemming from proposed amendments to the Plastic Waste Management (PWM) Rules.
According to the Association of PET Recyclers (Bharat), a coalition of companies in India dedicated to the responsible recycling of PET (Polyethylene Terephthalate) materials, massive investments are at risk as brand owners delay compliance with recycled plastic targets.
Despite the Ministry of Environment, Forest and Climate Change (MoEFCC) mandating the use of 30 per cent recycled content in rigid Category-1 PET packaging used by beverage companies – effective from April 1, 2025, brand owners are delaying compliance, citing PWM Rules.
The MoEFCC’s proposed amendment, issued on June 3, 2025, allows brand owners to carry forward shortfalls in meeting the 30 per cent r-PET target for food contact applications for 2025-26 over the next three years.
This leeway, according to industry insiders, has emboldened some brand owners to assume an eventual rollback or relaxation of the target, resulting in delayed or avoided purchase of r-PET.
The r-PET industry has so far invested an estimated Rs 7,500-8,000 crore, with a total planned capacity of 4 lakh metric tonnes, of which 1.5 lakh MT is already operational and FSSAI-authorised, and another 1.5 lakh MT scheduled to become FSSAI authorised soon.
Industry voices warn that this disconnect between policy intention and ground-level implementation may undo years of progress and jeopardize India’s international climate and sustainability commitments.
“Recyclers have taken bold steps, investing in world-class food-grade compliant r-PET plants. But if enforcement remains weak and brand owners keep defaulting, we fear the entire circular economy framework could collapse, in similar lines to what is happening in EU Nations,” Shailendra Singh, Director General, APR (Association of PET Recyclers), Bharat, said.
As India positions itself as a global champion of sustainable development, the disconnect between regulatory ambitions and on-ground reality now poses a serious threat to the credibility of its green transition narrative.
Published on August 1, 2025
