The recent notification by the Ministry of Environment, Forest and Climate Change, Government of India of the Environment (Construction and Demolition) Waste Management Rules, 2025 (“Construction Waste Rules”) appears as a response to growing concerns about construction dust pollution from projects across India. The Construction Waste Rules seek to replace Construction and Demolition Waste Management Rules, 2016 (“Erstwhile Rules”) with several departures from the earlier regime.
The Construction Waste Rules are wider and more complex in scope than the Erstwhile Rules. The Erstwhile Rules provided a framework for the collection, segregation, recycling, treatment and disposal of waste resulting from construction, re-modeling, repair and demolition of any civil structure. On the other hand, the Construction Waste Rules set out an integrated framework for waste management as well as utilization by imposing extended producer responsibility (“EPR”) aided by a central interface based online monitoring and compliance assessment.
Project Developers: Treatment under the Construction Waste Rules
The Construction Waste Rules have the potential to bring a sea change in the way project developers deal with construction waste and the liability they may face in case of non-compliance. The responsibility placed is considerably higher than under the Erstwhile Rules. Project developers will have to apprise themselves of their targets and the manner of achieving their targets for dealing with and utilizing waste.
Waste generators and producers
The Construction Waste Rules recognize project developers as waste generators i.e. occupiers of a project having full control over the construction or reconstruction or demolition or renovation or remodeling activities generating waste. Although the term ‘project' is undefined, the definition of the term ‘construction' covers processes relating to any structure, building, infrastructure and utility projects, such as residential and office complexes, roads, highways, industrial complexes, railways, airports, ports, harbors, laying of pipeline for water, wastewater, gas, crude oil, optical fiber cable, electric cable, telecom cable, and such other projects.
An occupier has been defined under the Environment (Protection) Act, 1986 as a person who has control over the affairs of a factory or premises.
Accordingly, persons having full control over construction, reconstruction, renovation or demolition of any real estate, infrastructure or utility projects would have to comply with the terms of the Construction Waste Rules as waste generators. More stringent compliances are placed on a producer i.e. a waste generator who is an occupier or in charge of a building or a building complex project having a built-up area of 20,000 square meters and above.
Therefore, occupiers of large construction projects involving buildings would fall within the ambit of the term ‘producer' and be subject to EPR obligations under the Construction Waste Rules. Apart from real estate construction projects, infrastructure and manufacturing facilities also involve the construction of buildings, and it appears that developers of such facilities would, depending on size, also be subject to these norms.
Concessionaires
India has a sophisticated public-private partnership model for infrastructure delivery by private players across various sectors. Although there are variations in the model, several projects contemplate the private developer (termed ‘concessionaire') undertaking the financing, engineering, design, construction, operation and maintenance of public infrastructure over a long definite period under a license or concession. Although a concessionaire builds and, in many cases, utilizes project assets to comply with its obligations under the license or concession, the ownership of the project assets is at all times vested in the public authority that grants the concession.
Considering that a concessionaire is in charge of the project during the concession period and all risks and responsibilities relating to construction are placed on the concessionaire, the concessionaire could be considered as an occupier and hence a waste generator under the Construction Waste Rules.
Real estate developers
Real estate developers with projects having a built-up area of 20,000 square meters would be considered as producers, while those with smaller projects would be considered as waste generators.
Contractors
While concessionaires and real estate developers can be considered as waste generators, a contractor that has been engaged by a concessionaire or a real estate developer to undertake construction or demolition, but is not an occupier of the project, does not stand at the same footing. As such, a contractor has limited responsibilities under the Construction Waste Rules.
Project Developer's and Contractor's Responsibilities
Waste generators
A waste generator is required to collect and segregate, store and transport waste. A waste generator is also required to take steps to prevent pollution or littering and comply with directions from relevant authorities.
Any person carrying out construction activity is required to fulfill waste utilization targets as specified in the Construction Waste Rules. Debris derived processed waste will be considered for assessing compliance with the utilization targets. However, usable or resalable waste would not be so considered.
Producers
Producers are a subset of waste generators who are in charge of buildings or building complexes with a built-up area of at least 20,000 square meters. In addition to the obligations placed on waste producers, a producer has extensive responsibilities under the Construction Waste Rules, some of which are set out below:
- Registration. A producer is required to register itself on an online portal, along with recyclers, collection points and operators of intermediate waste storage facilities. Without such registration, the producer cannot carry on its business activity. This would mean that this is a prerequisite to the commencement of construction.
- EPR Targets. A producer is required to manage construction and demolition waste and meet recycling targets as specified in the Construction Waste Rules.
The debris part of the waste, such as cement concrete, bricks, etc., is accounted for assessing the EPR targets. Any usable or resalable waste, such as iron, wood, plastic etc. will not be included for such assessment.
The producer may either process the waste in-situ or deposit the waste at a recycling facility. The details would need to be entered on the online portal, to be verified by an implementing agency.
To meet the targets, a producer is required to purchase EPR certificates from a registered recycler. EPR certificates will be generated by the Central Pollution Control Board (“CPCB”) through the online portal in favor of a registered recycler based on the quantity of treated waste based on a formula as specified in the Construction Waste Rules.
A producer may purchase EPR certificates and adjust it against its EPR liability. The EPR certificates can cover the EPR liability for the current year plus any leftover liability of preceding years plus 5% of the current year's liability.
Details of EPR certificates available and the records of transactions relating to them would be on the online portal. The CPCB may fix the highest and lowest price for an exchange of EPR certificates equivalent to 100% and 30% of the environment compensation for non-fulfilment of EPR targets.
- Waste Management Plan. A producer is required to prepare a waste management plan to assess the quantum of waste from all streams in a construction, re-construction and demolition project. This plan would need to be submitted to the local authority for its approval.
- Compliance with norms. A producer is required to follow standard operating procedures (“SOPs”) for environmentally sound management of waste as specified by the CPCB, local authority and development authority. While demolition buildings, a producer is required to comply with ‘IS 4130: Safety code for demolition of buildings' or other SOPs and measures as specified by the local authority or development authority.
- Environment Compensation. Any failure by a producer, occupier of a construction or reconstruction projects or other entities fail to comply with the Construction Waste Rules, causing loss, damage or injury to environment or public health, it shall be liable to pay environmental compensation which may be equal to such loss, damage or injury.
Contractor
A contractor is required to assist the waste generator in the collection of waste and assist the waste generator in meeting the EPR targets and utilization of waste. A contractor is required implement sustainable construction practices, including guidance on ‘IS 15883: 2021 – Guidelines for Construction Project Management Part 11 Sustainability Management'. A contractor must also establish adequate infrastructure for the management of waste, impart training and create awareness among its employees and workers on environmental sound management of waste and utilization of processed waste.
Implementation Challenges
The implementation of the Construction Waste Rules could have a significant impact in the manner of disposal and treatment of construction waste and mitigate some of the pollution caused thereby. However, there may be certain challenges that would need to be considered, some of which are set out below.
- Establishment of systems. The Construction Waste Rules are set to come into force on April 1, 2026. The relevant authorities would need to establish the systems and processes as well as the online portal to enable implementation of the Construction Waste Rules. Therefore, the compliance by producers is dependent on the timely establishment of the relevant systems and processes.
- Jurisdiction of local authority and development authority. Several provisions require the local authority or development authority to undertake certain obligations including ensuring compliance with EPR targets, approving waste management plans, monitoring the utilization of processed waste and compliance of the Construction Waste Rules, etc. The term ‘development authority' has been defined to mean an agency that implements town planning schemes, area development plans, building laws, and responsible for development of an urban area, while the term ‘local authority' means an agency entrusted to discharge functions related to sanitation, covering management of construction and demolition waste, and includes a municipality, panchayat, cantonment board, and notified area committee.
In the case of large infrastructure projects, including roads and ports, there may not be a development authority or local authority with jurisdiction over the area of the project. Further, certain large projects may span over vast areas that may be within the jurisdiction of multiple development authorities or local authorities. In such case, compliance may result in more complexities.
- Capacity building. The recycling of the waste is required to be undertaken through registered recyclers. Further, the local or development authority has to establish collection points and intermediate waste storage facilities. All this would require significant capacity building by the relevant authorities.
- Distinction between debris and usable waste. A distinction is made between debris in the form of cement, bricks, etc. and usable or resalable waste to assess compliance. While debris is considered for the purpose of setting targets and for utilization, usable waste is not. However, not all waste that is deemed usable or resalable may be of a quality or quantity that lends itself to use or sale.
- Ambit of ‘producers'. The term ‘producer' appears to only include waste generators having charge of building(s) of a built-up of at least 20,000 square meters. However, the term ‘construction' refers to not only buildings but infrastructure facilities and utilities. Several infrastructure facilities may not have large buildings as a part of them but do result in generating significant amounts of waste. Given this, a more extensive definition of the term ‘producers' may be required to extend compliance to such infrastructure developers.
Risk allocation under Construction Contracts
The primary risk arising from the compliance of these rules is placed on producers i.e. those in charge of the projects. However, many producers and waste generators are likely to appoint contractors. The role of contractors in the compliance of the Construction Waste Rules appears to be secondary with the duty to assist the waste generator and undertake its activities in an environmentally sound manner.
However, under many construction contracts, the contractor has full control over the site and is in charge of waste management. Although the Construction Management Rules do obligate contractors to assist producers, the liability for environmental compensation will lie with the producer.
As such, developers would need to review their contracts to ensure adequate flow down of obligations relating to waste treatment, disposal and utilization to the contractor along with adequate indemnities. Prior to the commencement of the construction activities, the contractor should prepare or assist the producer in preparing the waste management plan to be submitted to the relevant authorities.
From the perspective of both parties, the costs involved in relation to enhanced obligations relating to construction waste would need to be assessed, including cost of registration, preparation of a waste management plan and reuse.
Conclusion
The Construction Waste Rules have strengthened the existing framework in relation to the treatment of construction waste and significantly increased the liability of project developers. The Construction Waste Rules will come into force a year after their issuance, providing all stakeholders time to prepare for their compliance. Players in the real estate, infrastructure and construction industry would be well advised to apprise themselves of their obligations, assess their liabilities, organize their procedures, and realign their contractual risks in readiness of the Construction Waste Rules.
This insight/article is intended only as a general discussion of issues and is not intended for any solicitation of work. It should not be regarded as legal advice and no legal or business decision should be based on its content.
