Today Start your E-waste recycling business in India

WHAT IS RECYCLING

Recycling means recovery & reprocessing of waste material to use in new product. Materials which can be recycled are iron & steel scrap, aluminum cans, glass bottles, wood, plastic & paper which serves as substitute for raw material obtained from scarce natural resources like petroleum, natural gas, mineral ores, coal & trees. 

Mainly two types of recycling operations are internal recycling & external recycling. Internal recycling means when the reuse in the manufacturing process of materials that are waste product of that process is done which is common in metal industry. External recycling means reclaiming of material from a product that has been worn out or rendered useless & obsolete.

E-waste is now the fastest-growing waste stream, with computer equipment accounting for about 70% of it, followed by telecommunications (12%), electrical equipment (8%), and medical equipment (2%). (7 per cent).

E-waste, without a doubt, poses a significant environmental threat. It does, however, create enormous opportunity for entrepreneurs prepared to take the risk. According to a recent report by Assocham-Ckinetics, India is the world’s fifth largest e-waste producer, with annual e-waste creation anticipated to increase by 30% to 5.2 million metric tonnes (MT) by 2020, up from the current level of 1.8 million MT.

As a result, the e-waste recycling industry has a big revenue opportunity.

This study gives a quick rundown of the e-waste recycling industry’s criteria.

Importance of E-waste Management

According to the World Health Organization (WHO), when harmful elements leached from E-Waste come into direct contact with humans, animals, or the environment, health concerns and environmental degradation can occur. Lead (Pb), cadmium (Cd), chromium (Cr), and polychlorinated biphenyls (PCBs) are examples of poisonous materials (PCBs). Inhalation of hazardous gases, as well as the accumulation of toxins in soil, water, and food, can cause serious health problems. As a result, tainted water and food will enter the human food chain, with negative consequences.

This contamination endangers not just individuals but also the environment. The risks are particularly high in developing nations because some rich countries send their e-waste to for disposal. However, in light of the dangers of E-Waste, rules have been created that restrict the import and export of E-Waste. It has been discovered that worldwide e-waste has negative consequences not just for those who work with it, but also for those who live in its vicinity.

Due to a lack of understanding about E-Waste, it is difficult to manage it. As a result, a comprehensive recycling process must be implemented to protect us and future generations.

GOVERNMENT BODIES INVOLVED IN E-WASTE MANAGEMENT AUTHORIZATION:

  • Central pollution control board
  • Ministry of Electronics & Information Technology
  • State Board Pollution Board

GOVERNMENT SUBSIDY FOR E-WASTE RECYCLING PLANS:

Is there any subsidy for E waste recycling startup in India? Yes there is a recycling projects. The subsidy is from both the central government as well as state government .The CG gives a subsidy of 25% or equivalent to the state subsidy whichever is lower

What is an AIF (Alternative Investment Fund) ?

Alternative Investment Fund [AIF] are a class of pooled investment funds which invest in venture capital, real estate, private equity, hedge funds, managed futures. In other words, an AIF refers to an investment which is different from the conventional class of assets such as stocks, debt securities, etc. These privately pooled vehicles that collect money from sophisticated private investors who wish to diversify their portfolio and choose alternative modes of investments. 

Alternative Investment Fund [AIF] are governed and regulated by the Securities & Exchange Board of India (SEBI). AIF’s are not  classified under the Mutual fund regulations laid down by the SEBI. AIF’s are defined under Regulation 2(1) (b) of the SEBI (Alternative Investment Funds) Regulation, 2012 as “privately held and managed pool of investment fund of either domestic or foreign origin, organised in the form of a body corporate, company, LLP (limited liability partnership), or a trust. An AIF can be established in any of the forms mentioned above. Funds collected from these sophisticated investors are invested in accordance with the Private Placement Memorandum and the investment policy of the AIF.

AIF’s are private pooled investment funds and are not available through the forms of public issues (like Initial Public Offerings) which are applicable to Mutual Funds or other collective investment Schemes.

Generally, high net worth individuals and institutions invest in Alternative Investment Funds as it requires a high investment amount, unlike Mutual Funds


As per the AIF Regulation 2012, AIF is a fund established in India whether as a Trust or a Company or a LLP which is :: 

  • A Privately pooled investment vehicle that pools funds from sophisticated investors and invests in accordance with defined investment policy to benefit its investors.
  • Is not an entity registered under the SEBI (Collective Investment Schemes) Regulations, 1999 OR SEBI (Mutual Funds) Regulations, 1996 OR any other regulations issued by SEBI pertaining to pooling of funds or fund management.

Conversion of NBFC Into Bank

Introduction

The firms incorporated under the Companies Act 2013 as the public or private limited company having objective of financial activity are known as NBFC or Non-Banking Financial Companies. NBFCs offer banking services without having met the legal banking concept. Under RBI Act Section 451(c), a Non-Banking Company carrying on a Financial Institution business would be an NBFC. It is regulated by both the Ministry of Corporate Affairs and the Bank of India Reserve.

NBFC plays an important role in the Indian economy. NBFCs would have access to lower-cost deposits and increased funding once they are transformed into banks

Advantage of Conversion

a. After conversion institution will able to accepts

b. After conversion institutions will able to draw cheques, DD.

c. Deposit Insurance and Credit Assurance Company Insurance Service

Eligibility for converting NBFC into bank:

➲ Minimum paid-up capital for a new bank is Rs.200 Crore. The initial capital is increased to Rs.300 crore within three years of the start of business.

➲ The total contribution of the promoters shall be 40 percent of the bank’s paid-up money.

➲ The initial money, other than the contribution of the promoters, can be provided by way of public or private placements.

➲ While capital grows to Rs.300 crore within three years of company start-up, promoters would have to collect additional money, which will amount to at least 40 percent of the fresh money generated.

➲ The capital shall be locked in for a term of at least 5 years from the date of receipt of capital by the bank.

➲ A industrial house will not be funded to the new bank. Nevertheless, individual companies that are directly or indirectly connected to large industrial houses can be allowed to invest in the equity of a new private sector bank up to a limit of 10 percent that would not have managed interest in the bank.

➲ The proposed bank shall maintain an arm’s length relationship with the promoter group’s business entities and the individual company / is investing up to 10 percent of the shareholdings as provided for.

➲ The relationship between the promoter group’s business entities and the proposed bank shall be like that between two separate and unconnected entities.

➲ The bank shall maintain on a continuous basis a minimum capital adequacy ratio of 10 percent.

➲ As applicable to other domestic banks, the new bank would have to experience a priority sector lending target of 40% of net bank credit.

➲ The new bank would be expected to open 25 percent of its rural and semi-urban branches.

➲ The formation of a subsidiary or mutual fund shall not be allowed by the new bank for at least three years from the start of the company.

➲ The proposed new bank’s headquarters could be at any place in India, as the promoters have agreed.

➲ The new bank shall be regulated by the provisions of the Banking Regulation Act, 1949, Reserve Bank of India Act, 1934, other relevant statutes and SEBI regulations on public matters and other guidelines relevant to the banks listed.

Procedure for NBFC Conversion Application In Bank

➲ The report is completed and filed in the required manner.

➲ The applications shall be followed by a project report covering the proposed bank’s market potential and feasibility, market emphasis, product lines, technology capabilities, and other relevant details.

➲ Detailed information on the history of promoters, their experience, the business and financial value track record, details of the direct and indirect interests of promoters in various companies/industries, details of the proposed participation by foreign banks / NRI / OCB shall be given.

➲ Licenses will be given on a selective basis to those who comply with RBI’s specified criteria and who are likely to comply with the best international and domestic customer service and efficiency standards.

➲ The same shall be screened by RBI after receiving an application to ensure prima facie eligibility of the applicants and referred to a high-level advisory committee to be set up by RBI

➲ The Committee must review applications according to the protocol they have set up.

➲ RBI will take the decision to grant in-principle approval for the establishment of a bank which will be final.

➲ The approval issued by RBI in principle is valid for a period of one year from the date of grant of the approval in principle and will then automatically lapse.

➲ After RBI has granted the approval in principle for the establishment of a bank in the private sector if any other features are subsequently noted with regard to the promoters or the companies/companies with which the promoters are affiliated and the community in which they are involved, the Reserve Bank of India may impose additional conditions and, if necessary, may withdraw the approval in principle

Limitation of Conversion:

  • After conversion, it will attract regulatory requirement such as maintain the CRR (cash reserve ratio), SLR (statutory liquidity ratio), etc
  • Maintenance of minimum net worth will increase to 500 cr
  • After conversion banking regulation act 1949 and RBI compliances will be applicable
  • There is a lot of cost of conversion, its an expensive process
  • Conversion is a time taking process