Is the Deposit Refund System for Lead Batteries in Delhi and the National Capital Region Effective?

Lead recycling is often supported through a well-functioning Deposit Refund System (DRS) in the market for batteries (branded and generic). In this system, people can get a discount on the purchase of a new battery if they return the used one to the retailer. While a DRS has existed in the Indian battery markets for a long time, in 2001 the Indian Government put in place a set of rules to regulate the recycled lead market. These rules stipulate where and how lead is supposed to be recycled and have supported the development of a market for recycled lead through a DRS for batteries. Since a legal framework for using recycled lead batteries has been in place in India for over ten years, it is important to assess how effective the regulations have been in terms of recycling and disposal of lead-acid batteries. Thus, the objectives of this study are to: a) understand the strengths and weaknesses of the current DRS in order to ensure better recycling of lead-acid batteries; and b) identify policy instruments that could complement the existing system. We do this by studying the roles of and incentives faced by major stakeholders in both the organized and unorganized battery recycling sectors. [Working Paper, No 68–12]. URL:[http://www.sandeeonline.org/uploads/documents/publication/968_PUB_Working_Paper_68-12.pdf].