Tyre Recycling in India: From Waste to Revenue

Updated: May 29, 2026 · 16 min read

India’s tyre industry crossed 22 crore units of annual production in FY 2023-24, and every one of those tyres will eventually become waste. The problem is what happens next. A significant portion of end-of-life tyres in India are either stockpiled in yards, burned openly for fuel recovery in violation of the Environment (Protection) Act, 1986, or fed into informal sector operations that generate toxic emissions and offer no paper trail. For fleet operators, tyre retailers, and large industrials, that informal comfort zone is narrowing rapidly — because tyre EPR rules are coming, and the Central Pollution Control Board (CPCB) has signalled enforcement intent clearly in its 2024-25 compliance communications.

1.5 Lakh Tonnes and Counting: India’s End-of-Life Tyre Crisis

India generates approximately 1.5 lakh tonnes of waste tyres every year. The number keeps climbing in lockstep with vehicle registrations — the Ministry of Road Transport and Highways recorded over 34 crore registered vehicles on Indian roads as of March 2024. Passenger cars, commercial trucks, two-wheelers, off-road construction equipment, and aviation all contribute to the waste stream. Truck and bus tyres alone account for the largest share by weight given their bulk, but passenger car tyres dominate by unit volume.

The formal recycling sector — authorised retreaders, CPCB-registered pyrolysis plants, and crumb rubber manufacturers — collectively handles less than 40% of this volume. The balance enters channels that range from informal tyre-derived fuel (TDF) combustion in brick kilns and cement plants, to outright open burning. Both pathways release polycyclic aromatic hydrocarbons (PAHs), dioxins, and heavy metals — all of which attract liability under Schedule I of the Environment (Protection) Act, 1986. For businesses generating end-of-life tyres in bulk, “we handed them to a kabadiwala” is no longer a defensible audit response.

The geographic concentration of informal activity is also well-documented. Districts in Rajasthan, Punjab, and Uttar Pradesh have historically been centres of unregulated tyre shredding and burning. State Pollution Control Boards in these states have been under CPCB pressure since the National Green Tribunal (NGT) issued directions in 2019 and again in 2022 to map and regulate waste tyre generators. That mapping exercise is now feeding into registration databases — which means large generators who have not filed returns are increasingly visible.

The Regulatory Framework: HWMR 2016, EPR Drafts and What They Actually Require

The foundational instrument is the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016 (HWMR 2016), notified by the Ministry of Environment, Forest and Climate Change (MoEFCC). Schedule IV of HWMR 2016 lists “waste tyres” among non-hazardous wastes that are, nonetheless, subject to controlled handling and authorisation requirements when generated in commercial quantities. Rule 4 of HWMR 2016 places a duty on every “occupier” — which includes fleet operators, tyre depots, and industrial facilities — to ensure waste is handled, stored, and disposed of only through authorised channels. Rule 7 requires that such wastes be consigned exclusively to registered recyclers or processors.

The more consequential development is the draft Extended Producer Responsibility framework for waste tyres circulated by MoEFCC in 2024. Taking the architecture of the Plastic Waste Management Rules, 2016 (as amended) as its structural template, the draft imposes collection and recycling obligations on tyre producers, importers, and brand owners. It also creates a class of “obligated entities” who must register on the EPR portal, report annually, and either meet targets through in-house collection or purchase EPR certificates from registered recyclers. Once notified in final form — widely expected in FY 2026 — this will mark the most significant regulatory shift for the tyre industry since the HWMR 2016 amendments of 2019.

Separately, the Environment (Protection) Act, 1986, remains the overarching enforcement tool. Violations — including open burning or consignment to unauthorised recyclers — can attract penalties of up to ₹1 lakh per day of continuing offence and, in egregious cases, imprisonment under Section 15. NGT-imposed penalties for tyre burning have run higher still, with consolidated fines in individual state matters crossing ₹50 lakh in documented 2023-24 orders.

Four Recycling Pathways — and Their Commercial Returns

Tyre recycling in India is not a single technology — it is a spectrum of pathways with sharply different capital requirements, output quality, and commercial returns. Understanding which pathway your waste tyres feed into determines both the revenue share you can negotiate and the compliance documentation you receive.

Retreading

Retreading is the most material-efficient pathway. A well-executed retread extends the serviceable life of a carcass by a full tyre cycle — typically 80,000–120,000 km for a truck tyre — at roughly 30–40% of the cost of a new tyre. India’s retreading sector is organised under the Bureau of Indian Standards (BIS), with IS 15414:2019 governing precured tread rubber. For fleet operators running large truck fleets in Maharashtra, Tamil Nadu, and Gujarat, retreading represents a cost-saving of ₹8,000–₹12,000 per tyre per retreading cycle compared to new tyre procurement. However, retreading works only on structurally sound carcasses; heavily worn or structurally compromised tyres exit to shredding or pyrolysis.

Mechanical Shredding and Crumb Rubber

Shredding reduces whole tyres into chips, granules, or crumb rubber (CR). Crumb rubber at 30–40 mesh finds application in sports surfaces, rubberised asphalt, moulded goods, and construction materials. The National Highways Authority of India (NHAI) has mandated the use of rubberised bitumen — incorporating crumb rubber — in highway construction under specific project specifications, creating a structural demand anchor. Crumb rubber trades at ₹22–₹30 per kg at Gujarat and Maharashtra recycling yards, depending on mesh size and steel/fibre content. This is a lower-margin but lower-capex pathway relative to pyrolysis.

Pyrolysis

Pyrolysis is the highest-value thermochemical pathway and the one attracting the most private capital. It is covered in detail in the next section.

Tyre-Derived Fuel (TDF) in Cement Kilns

Co-processing of shredded tyres as TDF in cement kilns is permitted under the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016, subject to co-processor authorisation and CPCB approval of the facility’s co-processing quota. Large cement manufacturers in Rajasthan and Madhya Pradesh are active TDF consumers. The tipping fee ranges from nil to ₹2,000 per tonne depending on the generator’s location and the cement plant’s feed demand. While this pathway disposes of waste efficiently, it generates no certificate of recycling — only a co-processing certificate — which is a meaningful distinction for BRSR and sustainability reporting purposes.

Tyre Pyrolysis Economics: What the Numbers Actually Look Like

Pyrolysis converts waste tyres into three primary outputs: fuel oil (40–45% by weight), carbon black (30–35%), and steel wire (10–15%), with a small fraction of non-condensable gas used on-site for process heat. At a feed rate of one tonne of waste tyres, a well-operated batch pyrolysis unit generates approximately 420 kg of fuel oil, 320 kg of recovered carbon black (rCB), and 130 kg of steel scrap.

At current market prices — pyrolysis oil trading at ₹42–₹48 per litre in Maharashtra and Gujarat, rCB at ₹18–₹25 per kg for industrial grades, and steel wire at ₹32–₹38 per kg — the gross output value per tonne of feed runs to ₹18,000–₹24,000. Subtract feedstock acquisition costs (waste tyres often carry a negative cost or zero cost when collected from large generators), energy consumption, and operating overheads of ₹6,000–₹9,000 per tonne, and a properly scaled pyrolysis unit can generate operating margins of ₹9,000–₹15,000 per tonne of feed processed. These are numbers that have attracted serious industrial capital — including several publicly listed chemicals companies — into the space since 2022.

The regulatory caveat is critical. Pyrolysis plants must hold a valid authorisation under Rule 6 of HWMR 2016 from the relevant State Pollution Control Board (SPCB). Plants operating without this authorisation are liable to closure notices and penalties. The CPCB published a model Standard Operating Procedure for tyre pyrolysis in 2022, specifying emission standards for the process, and SPCBs in Maharashtra (MPCB), Tamil Nadu, and Gujarat have used these standards as the basis for recent inspections. Any fleet operator or industrial generator consigning waste tyres to a pyrolysis unit should demand sight of the unit’s current SPCB authorisation — not just a business registration.

The Tyre EPR Target Table: Deadlines You Cannot Miss

The MoEFCC draft EPR framework for tyres — modelled closely on the EPR architecture already operational for plastics under the CPCB’s EPR portal — proposes a phased target structure. The numbers below reflect the draft as circulated in 2024; the final notification may adjust specific percentages, but the directional ratchet is not in question.

Financial Year	Mandatory EPR Collection Target (% of prior year sales by weight)	Penalty for Shortfall (Indicative)	Key Obligation
FY 2025-26	30%	Environmental Compensation as per CPCB schedule	Register on EPR portal; file baseline return
FY 2026-27	45%	Environmental Compensation as per CPCB schedule	Annual EPR report submission by 30 June
FY 2027-28	60%	Environmental Compensation as per CPCB schedule	EPR certificate reconciliation; third-party audit
FY 2028-29	70%	Environmental Compensation as per CPCB schedule	Full EPR compliance; certificate-based reporting to SEBI (BRSR)

For tyre producers and importers, the EPR certificate marketplace will function similarly to the plastic EPR credit system: entities that cannot meet targets through direct collection must purchase credits from registered recyclers. This creates a direct revenue stream for CPCB-authorised recycling processors — and a procurement cost for obligated entities who delay building collection infrastructure. The lesson from plastic EPR, where credit prices on the CPCB portal rose sharply in FY 2024-25 as enforcement tightened, is that waiting to build collection networks until targets bite is a costly strategy.

For SEBI-listed companies with sustainability reporting obligations under BRSR Core (mandated under SEBI’s circular dated 12 July 2023 for the top 150 listed entities by market capitalisation, with broader application from FY 2024-25), tyre EPR compliance will become a disclosable metric under the “Principle 2 — Responsible Product Lifecycle” section of the Business Responsibility and Sustainability Report. Companies that cannot demonstrate authorised disposal chains for their end-of-life tyre volumes face both regulatory exposure and ESG rating risk.

Your Q3 FY 2026 Compliance Checklist for Used Tyre Disposal

Whether the final EPR notification lands in Q1 or Q2 FY 2026, the compliance infrastructure you need is the same. The following checklist is calibrated for fleet operators, tyre retailers, and large industrial plants generating end-of-life tyres in commercial volumes. Completing these steps now protects you against retroactive liability and positions you to acquire EPR credits rather than buy them at peak-cycle prices.

1. Classify and quantify your waste tyre stream. Conduct an internal audit of tyre volumes generated per quarter by type (truck/bus, passenger car, OTR, two-wheeler). Document tyre brand, size, and disposal method currently used. This baseline is required for EPR portal registration and BRSR reporting.
2. Verify your current recycler’s SPCB authorisation. Request a copy of the current authorisation letter issued under Rule 6 of the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016. Check the authorisation expiry date — many SPCB authorisations are valid for only one to three years and lapse silently.
3. Establish a documented chain of custody. Every consignment of waste tyres to a recycler must be supported by a consignment note (Form 10 under HWMR 2016 where applicable), a weighment slip, and a destination receipt. Maintain these records for a minimum of three years to satisfy CPCB inspection requirements.
4. Obtain certificates of recycling for each disposal event. Ensure your recycling partner issues a certificate of recycling or a co-processing certificate on its letterhead, referencing its authorisation number. Generic acknowledgement receipts are not sufficient for BRSR or EPR credit purposes.
5. Register on the CPCB EPR portal proactively. Even before the tyre EPR rules are formally notified, voluntary registration on the CPCB’s EPR platform establishes your entity’s compliance intent and prevents last-minute rush registration.
6. Review your GST documentation. Waste tyre transactions attract HSN code 4004 (rubber waste, parings and scrap) and GST at 5% for certain categories. Ensure your recycler issues a valid GST invoice — without this, the transaction does not exist for input tax credit or audit purposes. Check the GST portal for current HSN classifications.
7. Map your BRSR disclosure requirements. If your company is in the SEBI-listed universe subject to BRSR Core reporting, identify which BRSR Principle 2 indicators require tyre disposal data and assign ownership to your sustainability or compliance team before the financial year closes.
8. Engage a pan-India disposal partner. For multi-location operations, ad hoc local arrangements create compliance gaps. A single authorised recycling partner with pan-India reach simplifies documentation, standardises certificates, and reduces the risk of authorisation gaps at regional level.

For companies operating in Maharashtra, the Maharashtra Pollution Control Board (MPCB) has been particularly active in inspecting tyre generators and dealers in the Pune-Mumbai-Nashik corridor since late 2023. Businesses in this region should treat this checklist as urgent rather than aspirational. Our full-service waste management operations and Thane-based scrap and recycling services are specifically geared to support Maharashtra-based generators through this transition.

Related Articles

• India’s Vehicle Scrapping Policy: What Businesses Need to Know — the regulatory context for end-of-life vehicle tyres in the context of the vehicle scrapping framework.
• Solar Panel Recycling: India’s Next Big Waste Challenge — a parallel EPR story for another product category facing the same regulatory ratchet.
• Factory Scrap Auctions: How They Work and How to Participate — relevant for industrial plants managing tyre scrap alongside metal and equipment waste.

Frequently Asked Questions

Are waste tyres classified as hazardous waste under Indian law?

Waste tyres are listed under Schedule IV of the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016, as a controlled waste. They are not classified as “hazardous” in the strictest sense of Schedule I (which covers acutely toxic and reactive wastes), but they are subject to regulated handling, storage, and disposal through authorised channels. Rule 4 requires occupiers to manage such waste responsibly, and Rule 7 restricts consignment to authorised recyclers only. Open burning is explicitly prohibited under the Environment (Protection) Act, 1986.

What is the penalty for burning or illegally dumping used tyres?

Under Section 15 of the Environment (Protection) Act, 1986, violations attract fines of up to ₹1 lakh per day of continuing offence and imprisonment of up to five years for repeat or wilful offences. The National Green Tribunal has additionally imposed consolidated environmental compensation in tyre-burning cases — orders from 2023-24 have seen state-level fines exceeding ₹50 lakh in documented NGT proceedings. State Pollution Control Boards can also suspend or revoke operating authorisations for industrial facilities found to be illegally disposing of waste tyres.

When will tyre EPR rules be notified, and who will be obligated?

MoEFCC circulated the draft EPR framework for waste tyres in 2024. The final notification is widely anticipated in FY 2025-26. Obligated entities under the draft framework include tyre producers, importers, and brand owners — on the model of the Plastic Waste Management Rules, 2016 (as amended). Large commercial tyre users (fleets, OEMs) may also face generator-reporting obligations. The CPCB EPR portal is expected to host tyre EPR registrations once the rules are formally notified. Entities should monitor the CPCB website and MoEFCC gazette notifications closely.

What documents must I obtain from my tyre recycler to satisfy an audit?

At minimum, you need: (1) a copy of the recycler’s current SPCB authorisation under Rule 6 of HWMR 2016; (2) a signed consignment note or Form 10 for each waste tyre shipment; (3) a weight-based receipt or delivery challan; and (4) a certificate of recycling or co-processing certificate referencing the authorisation number. For BRSR reporting, the certificate must name your company as the generator and specify the quantity processed. GST-compliant invoicing (HSN 4004) is additionally required for tax audit purposes. Records must be maintained for at least three years.

Can a tyre retailer or fleet operator generate revenue from waste tyres?

Yes — though the revenue model depends on tyre type and volume. Truck and bus tyres with intact carcasses can be sold to retreaders at ₹500–₹1,500 per carcass depending on condition. Passenger car tyres in bulk are typically accepted by pyrolysis operators at nil or marginal cost, sometimes with a collection charge waived for large volumes. Once tyre EPR rules are notified, large generators who invest in collection infrastructure may be able to generate EPR credits for sale to obligated producers — a revenue channel that has proved meaningful in the plastic EPR credit market. Contact our team to understand the current commercial terms in your state.

Work With The National Recycling Corporation

The National Recycling Corporation is a Mumbai-headquartered recycling and scrap trading company with pan-India operations. We work with fleet operators, tyre retailers, automotive OEMs, industrial plants, and logistics companies to build compliant, documented, and commercially sensible used tyre disposal programmes. As the regulatory landscape for tyre recycling shifts — with HWMR 2016 enforcement already active and tyre EPR rules imminent — having a reliable authorised disposal partner is no longer optional for businesses that care about their audit trail.

Our services for waste tyre generators include: pan-India pickup scheduling with advance booking and volume flexibility; connection to CPCB-authorised and SPCB-registered recycling facilities across Maharashtra, Gujarat, Tamil Nadu, Karnataka, Delhi-NCR, and Telangana; GST-compliant invoicing with correct HSN classification; certificates of recycling in a format accepted for BRSR, EPR reporting, and internal sustainability audits; and BRSR-grade documentation packages for listed companies. For metal-bearing tyre components — steel wire, rim scrap — we provide fair-market pricing indexed to prevailing scrap market rates. Explore our full range of scrap categories we purchase and our dedicated EPR compliance services.

If your organisation is preparing for the tyre EPR registration window or needs to close a compliance gap before your next sustainability audit, contact us today. Our compliance team can assess your waste tyre volumes, recommend the appropriate recycling pathway, and provide a formal quote within 48 hours.

• Pan-India pickup with advance scheduling and volume flexibility
• Authorised recycling through SPCB-registered facilities — pyrolysis, retreading, crumb rubber
• GST-compliant invoicing with HSN code 4004 classification
• Certificates of recycling accepted for BRSR and EPR reporting
• BRSR-grade documentation packages for SEBI-listed entities
• Fair-market pricing for recoverable steel wire and scrap components
• Dedicated compliance support for Maharashtra generators under MPCB jurisdiction

Sources and References

• Central Pollution Control Board — Hazardous and Other Wastes Management Rules, 2016
• Ministry of Environment, Forest and Climate Change — Official Gazette Notifications and Draft EPR Framework for Waste Tyres
• Central Pollution Control Board — CPCB Tyre Pyrolysis SOP (2022) and EPR Enforcement Updates
• CPCB Extended Producer Responsibility Portal — Plastic EPR (Reference Architecture for Tyre EPR)
• NITI Aayog — Circular Economy Policy Reports and Waste Tyre Resource Efficiency Studies
• Bureau of Indian Standards — IS 15414:2019 (Precured Tread Rubber for Retreading)
• GST Council / CBIC — HSN Classification for Rubber Waste and Scrap (HSN 4004)
• Press reports — Business Standard and Economic Times coverage of NGT tyre-burning enforcement orders (2023-24) and MoEFCC EPR draft circulation (2024)