What solutions are available for managing waste? This and a lot more questions were raised at the event. Here’s an excerpt from a panel discussion. The panelists included:
- Prof Ashwin Mahalingam, Faculty-Dept of Civil Engineering, IIT-Madras
- Shekar Prabhakar, Managing Director, Hasiru Dala Innovations
- Som Narayan, CEO, Carbon Masters
- Sushil Vaishnav, Founder & CEO, KNP Arises Green Energy Pvt Ltd
- Dr R Vasudevan, Prof, Thiagarajar College of Engineering (TCE), Madurai
Ashwin Mahalingam: Everyone has heard of Adam Smith, who wrote the book The Wealth of Nations about 250 years ago. It is, by no means, the first treatise ever written on economics; economics predates him by several centuries. For example, in India, we have Chanakya’s Arthashastra. However, Adam Smith’s work marked the beginning of modern economic thought, particularly with his exploration of the concepts of supply and demand—essentially, production and consumption.
Over the last several centuries, society has become more efficient in both production and consumption, leading to improved GDP. Banks lower interest rates to incentivise consumption, which, in turn, stimulates production. This creates a cycle of production and consumption.
As an engineer, I was taught the principle of mass balance, or the conservation of mass, which states that whatever is produced gets consumed but never truly disappears. Unfortunately, the waste generated from production and consumption has become a major threat. Now, we are beginning to focus on reducing, recycling, and reusing materials. Some people are attempting to “valorise” waste, which means adding value to other processes through upcycling.
Let’s hear from the panel members about what they are doing in their respective fields.
The Green Force: A Mission for Inclusive Circularity
Shekar Prabhakar: ‘Hasiru Dala Innovations’ means ‘the green force’ in Kannada, a name chosen by the waste pickers we work with. We operate two organisations: one is a nonprofit that focusses on social justice for waste pickers, while I lead Hasiru Dala Innovations, which focusses on economic justice for them. We believe that social justice combined with economic justice provides waste pickers and informal waste workers the opportunity to aspire to significant improvements in their quality of life, given the right opportunities. That is our mission. We refer to it as inclusive circularity, a term we have registered as a trademark.
The Story of Lotfar
For example, Lotfar is a waste picker who became an entrepreneur with us seven years ago. Previously, he had an unpredictable income, faced harassment from police and citizens, and lived in a tarpaulin shack. He joined our business model, which provides waste management services to bulk waste generators, such as apartment complexes and corporate campuses. Today, Lotfar lives in a permanent house, has a stable income, and has filed his income tax returns for the last six years. He has even started paying GST. He manages a material recycling facility (MRF) and employs 30 workers. He also owns four trucks and a two-wheeler, having secured a bank loan to buy the scooter.
What we aim to do is provide access to markets that waste pickers cannot reach on their own, access to clean waste from the source, and access to business models that offer either entrepreneurship or predictable livelihood opportunities. We have experimented extensively and now have three business models that are working well.
Our vision is simple: a world with no waste and no waste pickers. Our mission is to make inclusive circularity a reality in the Global South. Inclusive circularity involves the deliberate and planned inclusion of waste pickers and informal waste workers as integral parts of the evolving circular economy, recognised as green-collar professionals and entrepreneurs.
Business Model
Our first business line is ‘building circular communities.’ In Bengaluru, there’s a regulation stating that bulk waste generators must manage their waste independently or through empanelled private service providers like us, as the municipal corporation does not service them. We provide these services for a monthly fee and hire a waste picker who becomes our entrepreneur. We buy them a truck, which they pay off over five years, creating an asset for themselves. They handle primary waste collection, while we manage wet waste and rejects. The entrepreneur sorts the dry waste and sells it in the recycling supply chain, generating two income sources: a fixed income from us for collection and additional income from selling recyclables. We may be the only waste management company in the world that does not take revenue from dry waste.
Each entrepreneur generates about seven to nine jobs. Currently, we have 22 such entrepreneurs, who have collectively created around 250 jobs. We also have a user-friendly mobile application for waste pickers. In partnership with Carbon Masters, we established the first completely private organic waste-to-compressed biogas plant, which replaces LPG cylinders and produces organic manure in both liquid and solid forms, substituting for chemical fertilizers. We are the only waste management company in India that manages the entire process, from collection to product creation from organic waste. This constitutes our second business model.
Plastics Circularity
Our third model focuses on plastics circularity, which involves aggregating plastic waste. We purchase plastic from our waste picker entrepreneurs and dry waste collection centres, then segregate it for recyclers. We stand out as the only multi-stream waste management company in the world that is fair trade guaranteed by the World Fair Trade Organization. For instance, we collaborated with brands like Unilever, which recently launched Sunsilk Oil Blends shampoo. For the first time ever, their bottles carry the words: ‘Hasiru Dala Innovations, a WFTO guaranteed Fair Trade enterprise, supplied the post-consumer plastic waste that went into this bottle.’ No company or brand has ever acknowledged a supplier on their packaging. This is what we refer to as circularity, where the waste we collect is reintegrated into a bottle.
We are also working with brands to enhance design functionalities. Can we design out waste and incorporate recyclability and remanufacturability? H&M uses buttons made of recycled plastic sourced exclusively from us in their apparel manufactured in India; they call them ‘social buttons.’ We also pioneer event waste management services, assisting in hosting events such as weddings and the IPL. We manage all four marathons in the country, as well as the Sunburn Music Festival and Echoes of Earth Music Festival. Last year, we managed around 400 events. The advantage is that waste pickers are hired for these events at above-market wages, allowing them to meet people they wouldn’t otherwise encounter and enjoy their work.
We have waste pickers dressed in sarees we’ve provided, wearing makeup, and excitedly discussing their work at these events. Their participation supplements their base income. In all our models, we offer either entrepreneurial opportunities, livelihood positions with us (such as at the aggregation centre), or supplemental income opportunities.
Recognising that people need different solutions, we understand that not everyone can be an entrepreneur or work a traditional nine-to-five job. We provide various models to create impact. Anyone who joins our system has seen their household income increase by 122%.
Som Narayan: I represent Carbon Masters and I am one of the co-founders. I’m an environmental engineer, and after my engineering, I went to Edinburgh to pursue a master’s degree in carbon management. I was taken aback by the man-made climate crisis we all need to address, which motivated me to spend the next ten years working on solutions. We initially started as a consulting firm focused on measuring, managing, and reducing carbon emissions, which is how we came to be called Carbon Masters.
As Bengaluru transitioned from the Garden City to what some call a ‘garbage city,’ I became increasingly interested in waste management. Ninety percent of methane emissions come from landfills, and since methane has a global warming potential 32 times greater than CO2, addressing climate change requires us to reduce methane emissions. Additionally, India’s heavy dependence on fossil fuel imports and soil health are other critical factors to consider.
Connecting the Dots
By connecting these dots, we realised we could tackle the issue through one solution: the circular economy. Today, we have around 60 employees and expect to achieve over 10 crores in revenue this year, with a target of 20 crores by executing projects and selling gas and fertilizer under our brand name, Carbonlites.
India has a rich history with biogas, boasting over 80 to 100 years of experience in the field. Just as India introduced yoga to the world, it has also contributed to biogas technology. While Germany has about 10,000 biogas plants, India has only around 50 or 60. The government’s current mandate aims to establish 5,000 plants in the next three to four years, supported by various policy interventions. Companies like Hasiru Dala Innovations have created a vital supply chain in this ecosystem, enabling business models like ours to thrive.
Waste generation is inevitable, with each household producing at least one kilogram of waste daily. Our process involves collecting this waste, producing biogas and organic fertiliser, and distributing these products to our customers. We have over 50 customers who have replaced LPG for cooking. Biogas can substitute for any fossil fuel; we even run trucks on it. We operate eight trucks that cover more than 200 kilometres a day to collect feedstock and deliver gas to customers. Our end-to-end process aims for carbon neutrality, generating no residual waste. The 1,000 kilograms of wet waste that come to our facilities are either converted into organic fertiliser or compressed biomethane gas, effectively replacing fossil fuels—achieving complete circularity.
Three Divisions
We have three divisions. First, we design and build facilities. Once constructed, we brand and sell both gas and fertilizers under the Carbonlites name. For feedstock, we partner with local waste management companies. Our first secured region is Bengaluru, and we have also completed a project in Telangana, where we have a long-term partnership with the municipality extending up to 20 years. We offer a complete and transparent solution. In Siddipet, Telangana, we cleared 17 acres of landfill and built our plant on two acres of land. The city, with a population of 200,000, generates about 30 tons of waste daily, all of which we process with zero waste, turning everything into either fertiliser or gas. The municipality benefits as well, generating a portion of EBITDA from their capital investment.
In Bengaluru, we have formed a joint venture with Hasiru Dala Innovations. Typically, the government provides land and waste, but in this case, we collaborated to lease land for 20 years, built the plant, and now process 30 to 40 tons of household waste daily. Our two climate-friendly products are sold within a 30 to 40-kilometer radius of the plant, substituting LPG for restaurants and providing organic fertilisers to farmers within 10 kilometres.
The first time we attempted to set up the plant, we had to shut it down due to community objections. Residents were concerned that waste processing in their area would negatively impact real estate prices. We paused operations for 9 to 10 months, during which we worked closely with the community. This experience taught us the importance of project location. Now, we operate in an industrial area, functioning like an industry.
In Tamil Nadu, we have operations in Namakkal, where our assets are financed by local angel investors. Our twin products have strong applications in India. We are currently involved in four projects and are adding two more. Our aim is to foster another 1,500 entrepreneurs like me in their local regions. Our long-term vision is to create a franchise model that involves local people on the ground, as establishing effective supply chains requires local engagement. That’s our focus for the future.
Sushil Vaishnav: We are trying to solve the problem of used cooking oil. Any fat is a dense form of energy, and we aim to create a solution that converts every type of fat into energy. We are energy-hungry and need a lot of it. Every problem has potential solutions, and we are working to create one from what’s left on your food plate.
Oil is essential for our bodies, and we use it when cooking. However, in households, we typically don’t cook with oil for prolonged periods; it usually doesn’t extend beyond 15 to 20 minutes. Therefore, we try to reuse the oil. Ideally, it can be used twice, but definitely no more than three times. Even top executive chefs often use it only once.
Fat consists of long chains. When oil is heated for too long, it breaks down into polar components that can negatively impact our arteries, leading to various diseases. Alarmingly, 60% of the oil currently disposed of goes back into the food chain. Scrap vendors or street food sellers buy this oil and use it for dishes like pani puri. You can’t be sure what it was previously cooked with—fish, mutton, or something else. Street vendors often continue cooking with it until it turns into a black, viscous substance. Interestingly, the darker and more viscous the oil becomes, the more it enhances the taste.
Disposing of oil presents a significant challenge. You can’t pour it into water; a single litre of oil can pollute up to 20,000 litres of water, which is not a solution. You also can’t throw it into the soil, as it will damage the soil’s conditions. We are working to convert used oil into sustainable aviation fuel. Shell, one of the largest energy companies, holds 5% equity in our company and is supporting us. We’re starting with a small model.
Collecting used oil in the supply chain is quite difficult. No logistics companies will handle it, regardless of what you pay them, because any contact with oil poses a risk of spillage and other consignments getting spoiled. To address this, we have developed a mobile application for collection and treatment, similar to the Ola app. We’ve connected with 2,500 restaurants, and when they place a request, a vehicle comes to collect the oil. We also provide training to restaurants, households, and schools.
Our facility is a small plant, and we are an ISCC-certified company, ensuring traceability in everything we do. So far, we have prevented 15 million kg of CO2 emissions from entering the atmosphere by processing 6 million kg of used oil. Additionally, we won the first Startup Challenge held in 2022.
The Road from Plastics
Dr. Vasudevan: I’d like to start with the phrase “think differently.” Plastic can be seen as a gift; it emerged at a time when the environment was heavily exploited. To help save the environment, plastic has become a wonderful substitute. I believe it’s better to plan for its use than to impose a ban.
My technology has been recognised in India, earning me several awards, including the Padma Shri. My work has been patented, and I was once offered $300 million for my technology, which I declined, choosing instead to give it freely to my country. Today, this technology is widely accepted and utilised, both in India and abroad.
Now, let me pose a simple question regarding plastic: What does plastic represent? I say it is a ‘friend in need.’ It is used everywhere. It is a common man’s ally and plays an essential role in our lives. The issues surrounding plastic are not due to the material itself, but rather how we dispose of it. Disposal is where the problem lies. Plastic is available in various forms—used for storing food, medical supplies, and more.
It’s important to remember that plastic is not biodegradable in the same way that organic materials are. Some materials, like stones, gold, and diamonds, also do not decompose easily, yet they hold significant value. Similarly, while plastic does not break down quickly, it possesses remarkable properties, especially as a binder. By recognising the potential of plastic as a binding agent, we can create numerous valuable products.
Plastic is a permanent necessity and a friend to the common man. You’ll find plastic in every household, from packets to cups. It provided essential protection to us during health crises like COVID-19. It is a key component in many structures, including cars.
The real problem arises from careless disposal. Much of the waste found in oceans and other environments, like cigarette butts and food wrappers, is man-made. Urban areas contribute more significantly to waste than rural ones, where awareness and education about waste management are lacking. The challenge lies in changing this mindset and understanding that plastic is not the enemy; improper disposal is.
Instead of creating landfills, which aggravate the problem, we can manage waste properly. Organic material can be composted, and plastic can be repurposed. With the right management strategies, landfills should be unnecessary.
We must acknowledge that the pollution stemming from plastic waste is a result of human actions. Governments often struggle to enforce regulations effectively, and there’s a lack of awareness among the educated population about solving these issues. For example, during this year’s Independence Day celebrations, I noticed people discarding chocolate wrappers carelessly, reflecting a lack of awareness and responsibility.
Plastic, in fact, is a versatile material that can be recycled. If we can properly collect and sort plastic waste, we can find valuable uses for it. Thinner plastics can be repurposed for road construction and other applications.
We have developed a process to create roads using plastic waste. By mixing plastic with stone, heating it, and coating the stone, we can produce durable roads with a lifespan of over 15 years, free from potholes and degradation. Since 2002, we have laid over 300,000 kilometres of roads in India using this method, demonstrating that plastic waste can significantly improve infrastructure.
We require vast amounts of plastic for road construction—one kilometre of single-lane road needs about one ton of plastic, which is equivalent to 10 lakh carry bags. With over 56 lakh kilometres of road in India, we need an immense amount of plastic waste to meet this demand.
We can also create building materials, such as blocks for toilets, using plastic, which will be essential for the government’s initiative to construct two crore toilets. Furthermore, we are developing plastic boulders for ocean protection, which also require significant amounts of plastic.
The potential for utilising plastic is vast. The government has already allocated substantial funding for plastic roads, and our Prime Minister has assured support for this initiative. The applications of plastic are endless—pathways, thermal insulation, water canals, and more can all be made from recycled plastic.
Ultimately, the key is proper management and increased public awareness about plastic waste. We must encourage recycling, segregation, and responsible disposal. There is no waste in this world; it all depends on how we use it. Remember, plastic is a creation that can be harnessed for the betterment of society. Let us embrace it positively and think about how we can utilise it effectively.
Ashwin Mahalingam: All these are good initiatives. India is a large country. What are the challenges that we face? How can we scale up such initiatives?
Shekar Prabhakar: One key issue we’ve faced is the lack of political will. Eight years ago, when we started our company, we believed that Bangalore was progressive, especially with the implementation of the bulk generator rule. In many cities, bulk generators contribute up to 40% of the total waste. If the bulk generator rule mandated that these entities manage their waste independently and cover the costs, it would have been a significant step forward. Initially, I pitched to investors about expanding to multiple cities, assuming every city would adopt similar regulations.
However, successful scaling isn’t just about having a scalable model or sufficient capital; it often depends on local municipal corporations and panchayats in enabling these changes. Real scale will only come when there is both political and citizen support.
For example, many people argue that source segregation isn’t sustainable. Yet, we currently manage 300 apartment complexes that segregate their waste at the source. If they don’t segregate, we won’t pick up mixed waste. They categorise their waste into three streams, and these solutions are indeed scalable. If the bulk generator rule in Bangalore were fully implemented, we could be managing around 4,000 bulk generators today. Instead, due to poor enforcement by local municipal corporations, contractors often just dump waste indiscriminately, preventing us from scaling effectively.
The framework for success is already in place—laws exist, we have a viable model, and the waste is available. However, the enforcement is lacking.
While biogas plants have become a priority for lending, we still haven’t received a loan from any bank. This highlights the need for proper frameworks and understanding. In a startup environment, you can’t wait three years to show profitable, audited statements before securing a loan. You need some initial capital for capital expenditures. Venture capitalists typically prefer asset-light models, which complicates things further. These are some of the challenges we’re currently facing.
Dr Vasudevan: Our technology has been recognized and appreciated, but the real challenge lies in implementation. Politicians, tend to prioritise short-term projects, rather than investing in long-lasting solutions that could last 15 years. We need to encourage conversations that help politicians make the right decisions because ultimately, these roads benefit us all, not just them. If we have good roads, we will all be happier.
For road construction, plastic is a vital component. We need to engage those who can help us collect the plastic required for road construction. Raising awareness among the public is critical for the collection process and ensuring that we complete the cycle of road laying. This aligns with the principles of a circular economy. If we can successfully implement this, India will thrive, and other countries will be eager to adopt this technology as well. We just need to bring our minds together to embrace this vision.
Ashwin Mahalingam: How can partnership help in scaling up?
Som Narayan: It’s a complex issue, and addressing waste management requires a long-term approach. If we consider the macro problem on a national scale, India generates approximately 150,000 tons of wet waste daily, which need to be managed. To effectively tackle this volume, we would require around 1,000 to 1,500 treatment plants, each costing between 50 to 60 crores. This translates to a total investment of about 50,000 crores.
While that sounds like a significant amount, it’s actually manageable within the budgets of municipal corporations. For instance, Bengaluru spends about 1,000 crores annually on waste management, and to solve its waste issues, the total capital expenditure needed is under 1,500 crores. In just one and a half years, this investment could address the problem.
Moreover, the fuel generated from these plants could be utilised for waste collection trucks. The issue isn’t the lack of funds; it’s about organisation and collaboration. We could initiate the first 100 plants through private investments and angel networks.
Currently, in Bengaluru, we have an operational plant that receives around 100 visitors every two to three months. This interest indicates a willingness to replicate our model elsewhere, which we encourage. We have about a decade to solve this problem, but realistically, we need to act much faster. The urgency lies in scaling up our efforts and fostering entrepreneurship in different cities.
These projects can be designed to become profitable within 24 months: one year to set up and another year to fully operationalise. The process begins with a waste management company, followed by an operating company, and then we integrate the gas production.
Fortunately, the government is prepared to off-take the biogas or inject it into the grid, with a recent 5% blending mandate similar to what we’ve seen with ethanol. The government has accelerated its targets, achieving what was originally set for 2030 ahead of schedule, and is now focussing on biogas as well. To create a replicable model, we need a collaborative approach among multiple companies and effective source segregation. Getting financing should be as easy as obtaining a car loan.
Sushil Vaishnav: With the right incentives, the ethanol blending became more efficient. For example, sugarcane farmers used to receive payments in 90 days or even six months, but after the ethanol initiative, that timeframe was reduced to a maximum of 30 to 45 days. This shift attracted a lot of support.
Now, if we consider the waste management sector, the people involved in waste collection can also form a similar voter base for the government. If the government recognises this potential and develops incentives around it, we could see significant change.
It’s crucial to understand that change often requires consumer demand. Until consumers start asking for sustainable practices, it’s challenging to drive systemic change. This is where government incentives—essentially, votes—come into play. Both consumers and the government need to recognise their roles in this ecosystem.
Another important aspect is education. If we start focussing on sustainability in schools, we can foster awareness and behavioural change among children. By incorporating these topics into the curriculum, we can create a generation that prioritises environmental responsibility.
Investment in these areas often requires a long-term view, as the ROI may not be immediate. Investors typically prioritise sectors where they can see quicker returns. However, if we focus on these foundational changes, we can create a more sustainable future.
