Carrier becomes latest global firm to sue India over electronic waste rules

New Delhi: The Indian unit of US air conditioning giant Carrier has become the latest major firm to sue Prime Minister Narendra Modi's government over electronic waste rules that have hiked the fees manufacturers must pay to recyclers.

South Korea's Samsung Electronics and LG Electronics as well as Japan's Daikin and Tata's Voltas have also brought suits, which are set to be heard by the High Court of Delhi on Tuesday. All of the companies are seeking to have the rules quashed.

India is the third-biggest generator of electronic waste behind China and the US, but the government says only 43 per cent of the country's e-waste last year was recycled.

Modi's government in September fixed a floor price that electronics makers must pay recyclers, which manufacturers argue is roughly three to four times higher than what they paid earlier.

In a 380-page court filing dated June 3, which has not been disclosed publicly, Carrier said recyclers were willing to continue their work at the older prices and the government should not interfere in private dealings between companies and recyclers.

"The burden of the benefit being given to the recyclers has been put on the producers, which is unfair and arbitrary," said submissions by Carrier Airconditioning & Refrigeration which were reviewed by Reuters.

The submissions added that the rules will impose a "huge financial burden" on the company.

Carrier did not respond to a Reuters request for comment.

India's Ministry of Environment also did not respond to Reuters queries. It has previously argued in court that the pricing rules are needed to ensure proper waste disposal and were a "reasonable" intervention.

The new rules mandate a minimum payment of 22 rupees per kilogram to recycle consumer electronics. Such rates are still lower than levels in the US where they are up to five times higher, according to research firm Redseer.

Carrier reported sales of Rs 2070 crore ($248 million) in India last year, its highest level since at least the financial year ending March 2020. Its filing said it installed India's first-ever air conditioning system in Jaipur city in 1936.