By Aditya Kalra and Arpan Chaturvedi
NEW DELHI, July 7 (Reuters) - The Indian unit of U.S.
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 ( SSNLF ) 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 U.S., but the government says only 43% 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 U.S where they are up to five times
higher, according to research firm Redseer.
Carrier reported sales of $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.