Economic aspect of waste in India
India has been grappling with the problem of waste disposal for more than 30 years. There is a constant attempt to establish the notion that garbage is gold or garbage is money which words have entered our common lexicon while it has become our destiny. After all, why are we developing this type of thinking when in reality it is a cost (loss of raw material) for many entrepreneurs and not a profitable thing for them. Large-scale entrepreneurs in India are either trying to solve this problem or are facing it.
The reality is that the idea of making money out of waste is the imagination of western countries. It is very cleverly inserted into our mindset so that we understand the attractive importance of Indian waste as a highly profitable enterprise. It was understood that we can convert garbage into gold for ourselves. We were tricked into earning money by telling the method of converting waste into valuable production, compost fertilizer, various types of useful grains, electricity generation, preparing eco-friendly briquettes and even pollution-free diesel.
The idea of turning waste into a valuable commodity has long attracted Western policy makers and thinkers in the waste management industry to play the game of the market. He considered it as a very accurate way of earning immense wealth and money for the society and industry towards which he was attracted.
This idea is debatable but also controversial but in comparison it should be taken with a pinch of salt with the western world.
The point to note is that the Western world, led by the United States, Europe, Australia, and Japan, was the first and most commercialized to handle waste management with a clearly sophisticated technological system. He took the first step in this direction and took commercial advantage of it.
China, on the other hand, adopted this hypothesis because of its longitudinal similarity with the West. However, there have been some aspects that have also enabled western countries to make a profitable venture out of waste management. For example, producing fertilizer and fuel as well as electricity from waste definitely proved to be a deal of profit for them.
India’s story with regard to solid waste management was quite different. With a very strong intention, India set up a waste-to-energy plant in 1985, while China also started this at the same time. But surprisingly, in 2020, China has the capacity to convert waste to energy and electricity. There are 434 plants while India still has only 7 plants. It is important to know here that the reason behind expanding waste-to-energy plans in China is to use land and reduce landfills through scientific energy conversion of waste.
However, both India and China have faced environmental impact resistance from Western groups. In China only 30 percent private funding with financial engineering is required for waste-to-energy and the rest will be financed through subsidies and bank loans up to seventy percent.
India has also made a provision of giving 35 percent as subsidy for waste to energy, but it is extremely difficult to get loans for this sector from banks and NBFCs. The reason why waste cannot be converted into electricity is the high moisture content of Indian waste. Also, due to this technical factor, low temperature is also generated. Obviously China also has low humidity and low heat rate but it has mastered the technology to recirculate it in all its major cities and towns.
If India is able to get advanced technology for waste disposal, it can prove to be a great source of money for both private entrepreneurs and the government. Their income can increase tremendously. The return on investment for the entrepreneur will be exponential as the rate of return from waste to electricity conversion will be more than thirty percent. (Waste to energy) requires about 16.6 hectares of land which is equivalent to 10000 hectares of land for cities in India. can save.
Another source of wealth or alleged wealth is composting or organic waste. conversion to manure. In India it is very difficult to convince farmers to use compost made from solid waste instead of fertilizers like urea DAP because farmers are used to using these fertilizers and are very reluctant to use compost. However, it can improve the soil condition while strengthening the fertilizer capacity.
Under the Swachh Bharat Mission, the Government of India has also given a subsidy of Rs 1500 per ton for the fertilizers sold to the farmers. This is a good earning for the entrepreneurs and companies as the production cost of manure is ninety paise per kilo which gives the entrepreneur a profit of about sixty paise per kilo. Money can also be made through the sale of refuse derived fuel or green coal and the conversion of plastic waste into pellets and diesel. Some companies such as Ram’s Hari Bhari and Jindal are producing waste derived fuel in India which can be used to manufacture cement. May be marketed by manufacturers as an alternative fuel or AFR. ,
Another aspect of increasing income in this sector can also be through the conversion of plastic which is more than 6 percent of the total municipal solid waste. Currently most plastics are being sent to landfills and dump sites. Most of the plastic waste is being handled by the Kabari community who sell the collected plastic to companies to sustain themselves. The big question is how to actually create a waste value chain to generate a source of income for this community.
The plastic can be converted into diesel and granules and sold in the market for boiler use. Community participation models can be created by the government to help them and ensure sustainability of the community and environment.
This article is based on the opinion of Sujay Jha, director Bhari Waste Valorization India Private Limited Company in Outlook
