In a progressive step toward environmental sustainability, the Himachal Pradesh government has introduced the Deposit Refund Scheme 2025, aiming to effectively manage non-biodegradable waste and encourage recycling habits among consumers. The scheme was approved by the State Cabinet on May 31 and was officially notified on June 16 by the Department of Environment, Science, Technology & Climate Change. It will be launched initially on a pilot basis at a designated location before being scaled up across the state.
Under this scheme, consumers will pay a refundable deposit in addition to the price of certain packaged products. This deposit will be reimbursed once the empty product is returned at an authorized collection point. The scheme will apply to a wide range of packaging materials including glass bottles, plastic beverage containers, aluminium cans, liquid packaging cartons, flexible plastic packaging, and multilayered materials. Each Deposit Refund Scheme (DRS) product will carry a Unique Serialized Identifier (USI) that enables its tracking throughout the distribution cycle, ensuring transparency and smooth processing of refunds.
The refundable deposit will be collected at the first point of sale and passed along the entire supply chain. The final consumer will receive the refund upon returning the packaging at designated collection points, either in cash or through a bank transaction. Notably, the deposit amount will be kept outside the scope of commercial taxes to maintain the refund’s neutrality and prevent it from being absorbed as a retail cost. Liquor bottles and aluminium cans are expected to be among the first categories of products covered under the pilot phase.
The administration and monitoring of the scheme will be overseen by a Scheme Administrator appointed by the government. The administrator will be supported by a nonprofit society and operational teams responsible for managing collection points, retailer coordination, consumer awareness campaigns, and technology integration. A High-Powered Committee under the chairmanship of the Chief Secretary, and comprising secretaries of relevant departments including Environment, Urban Development, Tourism, Forest, Industries, and Legal Affairs, will provide policy guidance and strategic oversight.
Through the Deposit Refund Scheme 2025, the government aims to transform the way waste is handled by incentivizing consumers to return used packaging, thus enhancing recycling rates and minimizing littering. The scheme complements the existing Extended Producer Responsibility framework under the Plastic Waste Management Rules, 2016, and signals a decisive move toward a circular economy model in the state.
