Tyre Waste Recycling Plant Setup: Market Scope & CPCB Compliance

  • Home
  • Recycling
  • Tyre Waste Recycling Plant Setup: Market Scope & CPCB Compliance

In early 2025, several tyre pyrolysis units across Rajasthan, Gujarat and Haryana received show-cause notices because their operations were not aligned with the EPR Guidelines for Waste Tyres, 2022 issued under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.

Some plants were operating at 25–50 TPD capacity but had not completed CPCB EPR registration. Others had Consent to Operate (CTO) but failed to upload recycling data on the portal within prescribed timelines.

Under Section 15 of the Environment (Protection) Act, 1986, such violations can attract:

  • Imprisonment up to 5 years
  • Monetary penalties
  • Environmental compensation
  • Immediate plant closure directions

In 2026, tyre recycling is no longer just a business opportunity — it is a tightly regulated environmental activity.

This guide explains the market potential, plant economics, EPR obligations, CPCB registration process, compliance timelines, and legal risks involved in setting up a Tyre Waste Recycling Plant in India.

Tyre Recycling Business

Market Scope of Tyre Waste Recycling in India

India generates approximately 2.7–3.0 million metric tonnes (MT) of waste tyres annually, driven by:

  • 30+ crore registered vehicles
  • 6–8% annual vehicle growth rate
  • Replacement cycle of 3–5 years for commercial vehicles
  • 4–6 years for passenger vehicles

Nearly 60%–65% of waste tyres historically moved into informal recycling channels. Post-EPR enforcement, this material is gradually shifting toward registered recyclers.

Revenue Streams in a Tyre Recycling Plant

A typical 25 TPD pyrolysis plant produces:

  • 35–45% Pyrolysis Oil
  • 30–35% Carbon Black
  • 10–15% Steel Scrap
  • 5–10% Combustible Gas (self-use)

For a 50 TPD plant:

  • Annual input: ~15,000–16,000 MT
  • Potential gross turnover: ₹18–30 crore annually (depending on oil pricing)

However, revenue is now directly linked to EPR certificate generation, making compliance a profit determinant.

Legal Framework Governing Tyre Recycling in India

Tyre recycling is regulated under multiple environmental statutes.

Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016

Waste tyres are regulated under Schedule I of the HOWM Rules, 2016.

Before starting operations, the recycler must obtain:

  • Consent to Establish (CTE) under the Water Act, 1974
  • Consent to Operate (CTO) under the Air Act, 1981
  • Authorization under HOWM Rules, 2016
  • CPCB EPR Portal Registration

Operating without authorization constitutes violation under Section 15 of the Environment (Protection) Act, 1986.

EPR Guidelines for Waste Tyres, 2022

The EPR framework mandates that:

  • Producers (manufacturers/importers of tyres) must meet annual recycling targets.
  • Registered recyclers generate EPR certificates based on actual recycling.
  • Certificates are purchased digitally through CPCB portal.

Failure by producers to meet targets may lead to environmental compensation assessment.

Recyclers must:

  • Upload monthly/quarterly recycling data
  • Maintain material balance
  • Maintain purchase and dispatch records
  • Comply with portal verification

Non-reporting can lead to suspension of certificate generation.

Regulatory Overview Table

Regulation Key Requirement Deadline Applicable To Risk if Ignored
HOWM Rules, 2016 Authorization for tyre recycling Before operation Recyclers Closure order
Water Act, 1974 CTE before installation Pre-construction All plants Project halt
Air Act, 1981 CTO before operation Before production All plants Sealing of plant
EPR Guidelines 2022 Portal registration & reporting Annual cycle Producers & Recyclers Portal suspension
EPA, 1986 (Sec 15) Penal action for violations On detection All entities Fine & imprisonment

Interpretation:
A tyre recycling plant requires sequential compliance. Skipping one approval can delay the project by 4–6 months and increase cost by 8–12%.

Tyre Recycling Plant Setup — Technical & Infrastructure Requirements

Plant Capacity Options

  • 10 TPD (Small scale)
  • 25 TPD (Medium scale)
  • 50 TPD (Commercial scale)
  • 100+ TPD (Continuous system)

Land Requirement

  • 10 TPD: 1 acre
  • 25 TPD: 1.5–2 acres
  • 50 TPD: 2–3 acres

Utility Requirements

  • Electricity: 150–500 kW
  • Water: 5–20 KL/day
  • Cooling tower system
  • Fire NOC mandatory

Pollution Control Systems Required

SPCBs typically require:

  • Secondary combustion chamber
  • Oil scrubber system
  • Multi-stage condenser
  • Stack height as per emission norms
  • Hazardous waste storage area
  • Online emission monitoring (for larger units)

Improper emission control is the primary reason for CTO rejection.

Compliance Process & Timeline

Step Authority Timeline Documents Required Risk Area
Land & Zoning Local Authority 30–60 days Industrial land proof Location rejection
CTE SPCB 45–90 days DPR, layout, emissions plan Design deficiency
Authorization (HOWM) SPCB 60 days Waste handling plan Incomplete forms
EPR Portal Registration CPCB 30 working days GST, PAN, Consent copies Portal objection
CTO SPCB 30–60 days Compliance verification Emission non-compliance

Interpretation:
Typical project approval cycle: 6–9 months if documentation is structured properly.

Financial Overview

Estimated Investment

  • 10 TPD: ₹4–6 crore
  • 25 TPD: ₹8–12 crore
  • 50 TPD: ₹15–20 crore
  • Continuous 100 TPD: ₹30+ crore

Boiler & Utilities (If Integrated)

  • 10–20 TPH boiler may cost ₹2–4 crore
  • Fire & safety compliance: ₹25–50 lakh
  • Pollution control system: ₹50 lakh–₹2 crore

Delays in SPCB approvals increase financing cost significantly.

Compliance Risks & Penalty Exposure

Failure in compliance may result in:

  • Registration rejection
  • Portal suspension
  • Environmental compensation assessment
  • Bank guarantee forfeiture
  • Power disconnection
  • Production halt
  • Criminal liability under Section 15 of EPA, 1986

SPCBs are increasingly conducting surprise inspections for pyrolysis units.

Practical Example

A 50 TPD tyre pyrolysis unit in Western India:

  • Investment: ₹16 crore
  • Delay due to emission redesign: 5 months
  • Additional compliance cost: ₹1.2 crore
  • Interest burden: ₹12–15 lakh per month

Lesson: Environmental engineering must align with SPCB norms before construction.

Step-by-Step Compliance Checklist

  • Identify industrial land
  • Prepare Detailed Project Report (DPR)
  • Design emission control system
  • Apply for CTE
  • Install plant with pollution controls
  • Apply for Authorization under HOWM Rules
  • Register on CPCB EPR Portal
  • Obtain CTO
  • Begin EPR certificate generation

Conclusion — Compliance Determines Profitability

The tyre recycling market in India is structurally strong with nearly 3 million MT annual waste generation.

However:

  • Compliance costs now form 8–15% of total project cost
  • Non-compliance can halt operations immediately
  • Early registration reduces approval timeline by 30–40%
  • Structured documentation avoids portal objections

A properly planned tyre recycling plant can operate profitably for 15–20 years — but only if regulatory compliance is integrated from day one.

Need Expert Guidance?

Green Permits assists with:

  • DPR preparation
  • SPCB approvals (CTE & CTO)
  • Authorization under HOWM Rules
  • CPCB EPR Registration
  • Compliance documentation

📞 +91 78350 06182
📧 wecare@greenpermits.in

Book a Consultation with Green Permits

Book a Technical Call with Expert

📞 +91 78350 06182