Tyre Waste Recycling Plant Setups in India

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On the outskirts of Pune, a young entrepreneur named Arjun stood before a mound of discarded tyres. Black, cracked, and endless — they stretched across the industrial yard like a sea of waste rubber.
Yet Arjun didn’t see junk; he saw a renewable goldmine.

Each tyre, he realized, was packed with valuable material — rubber, carbon, steel — waiting to be reborn. What began as a small dream to clean up his district’s scrap yards soon evolved into a plan to establish a CPCB-compliant tyre waste recycling plant.

But as Arjun discovered, success in this industry isn’t just about machines or investors.
It’s about understanding India’s evolving waste laws, navigating complex EPR registrations, and building a plant that passes every CPCB inspection without a glitch.

If you’re an entrepreneur like Arjun, this guide will help you turn that mountain of tyres into a sustainable business opportunity.

Tyre Waste Recycling setups

Understanding the Tyre Waste Challenge

India generates nearly 1.5 million tonnes of end-of-life tyres every year, and the number keeps rising with the booming automotive sector. For decades, most of these tyres ended up in informal pyrolysis units or landfills, causing severe air and soil pollution.

To tackle this, the Ministry of Environment, Forest and Climate Change (MoEFCC) and the Central Pollution Control Board (CPCB) introduced strict EPR-based tyre waste management rules.

Under this regime, tyre manufacturers and importers must ensure that a certain percentage of the tyres they sell are collected, recycled, or co-processed each year.

That’s where certified recyclers come in — and that’s where your business can play a vital role.

Why Tyre Waste Recycling Matters

A single waste tyre contains a cocktail of high-value materials:

  • 40–45 % rubber
  • 10–15 % steel
  • 25–30 % carbon black
  • 10–15 % textile and additives

Instead of burning or dumping them, these materials can be transformed into:

  • Tyre-derived fuel oil (TDF) – used in cement kilns and furnaces
  • Reclaimed rubber powder and granules – used in road construction, footwear, and flooring
  • Recovered steel – sold to foundries
  • Carbon black – reused in pigments, coatings, and plastic compounds

Every tonne of tyre waste recycled saves roughly 1.2 tonnes of CO₂ emissions and reduces the demand for virgin petroleum feedstock.

The Regulatory Landscape — India’s Tyre Waste Revolution

In 2022, CPCB made a landmark move by bringing waste tyres under the EPR framework.
By 2024-25, producers are expected to meet 100 % recycling targets, and only CPCB-registered recyclers can generate valid EPR certificates.

This means compliance is no longer a formality — it’s your ticket to doing business.

CPCB’s revised SOP for Tyre Pyrolysis Units (2024) also mandates:

  • Continuous feeding and de-oiling systems
  • Real-time emission monitoring
  • Online connectivity with SPCB servers
  • Proper fire-safety and zero-liquid-discharge facilities

Plants that fail to meet these criteria risk closure and environmental compensation penalties.

Step-by-Step: Setting Up a Tyre Waste Recycling Plant in India

1. Feasibility & Site Selection

Every successful project starts with a sound feasibility study.
Choose an industrially approved site with at least 0.5 – 1 acre of space for machinery, segregation, and safety corridors.
Check local zoning laws to ensure you’re not near residential or eco-sensitive areas.

Pro Tip: Land inside a notified industrial area simplifies the consent process from the State Pollution Control Board (SPCB).

2. Form a Legal Entity

Register your business as an LLP or Private Limited Company with GST and PAN.
If applicable, get a District Industries Centre (DIC) registration to access MSME benefits and financing schemes.

3. Obtain SPCB Consents (CTE & CTO)

Before construction, apply for:

  • Consent to Establish (CTE) under the Air & Water Acts
  • Consent to Operate (CTO) once the plant is ready

Alongside, secure Authorization under the Hazardous and Other Wastes (Management & Transboundary Movement) Rules, 2016.

These approvals are generally valid for five years and must be renewed periodically.

4. Register on the CPCB EPR Portal

Head to https://eprewastecpcb.in and register as a Recycler of Waste Tyres.
This digital certificate allows you to:

  • Receive waste tyres from producers and importers
  • Generate EPR Certificates for processed quantities
  • Legally trade those certificates with producers to help them meet targets

Without this registration, no producer can supply tyres to your unit.

5. Choose the Right Recycling Technology

Mechanical Recycling:
Shredding and crumbing tyres to produce granules and reclaim rubber. Low pollution, good ROI, but requires consistent feedstock.

Continuous Pyrolysis Systems:
Modern plants use automated feeding, closed reactors, and advanced emission control. They recover fuel oil, gas, steel, and carbon black — all with CPCB-approved designs.

Devulcanization / Rubber Reclaim Units:
Used for producing high-value rubber compounds for new tyres and industrial applications.

6. Install Pollution Control & Safety Infrastructure

Compliance isn’t just paperwork — it’s visible in your plant design.
Equip your facility with:

  • Wet scrubbers and activated-carbon filters for air emissions
  • Effluent treatment and zero-liquid-discharge units
  • Fire-safety systems, alarms, and ventilation
  • Personal protective equipment (PPE) and emergency drills

7. EPR Certificate Generation & Quarterly Reporting

Once operational, update your data on the CPCB EPR portal every quarter:
waste received, processed output, recovered materials.

EPR Certificates are generated automatically based on verified quantities of recovered carbon, steel, or fuel oil.
These are then purchased by tyre producers to offset their EPR targets — creating your primary revenue stream.

Investment Snapshot (2025 Benchmarks)

Component Estimated Cost (₹ Lakhs)
Land & Civil Works 50 – 80
Machinery & Installation (5 TPD Plant) 120 – 200
Pollution Control Systems 25 – 40
Licensing & Consultancy 10 – 15
Working Capital (3 months) 30 – 40
Total Setup Cost ≈ ₹ 2 – 3 Crore

Large-scale continuous pyrolysis plants with automation can cost up to ₹ 5 crore but yield faster ROI through higher efficiency and EPR credit sales.

Key Approvals & Authorities

Registration / License Issuing Body Validity
Consent to Establish (CTE) State Pollution Control Board 5 years
Consent to Operate (CTO) SPCB 5 years
Hazardous Waste Authorization SPCB / CPCB 5 years
EPR Recycler Registration CPCB 5 years
Factory License & Fire NOC Local Authority / Fire Dept Annual
GST & PAN Govt of India Permanent

The Hidden Risks of Non-Compliance

Ignoring CPCB rules can cost dearly:

  • Plant suspension or closure for non-registration
  • Environmental compensation fines up to ₹ 8.4 per kg of unaccounted waste
  • Loss of OEM tie-ups, since producers can’t transact with unregistered recyclers
  • Legal action under the Environment (Protection) Act, 1986

Compliance isn’t just an obligation; it’s a market credential that builds trust with tyre manufacturers.

Real-World Example: Gujarat’s Green Transition

In 2025, Gujarat became the first Indian state to officially permit continuous, emission-controlled pyrolysis plants while phasing out older batch units.

One recycler in Ahmedabad invested ₹ 3 crore in automation and online emission monitoring. Within a year, the plant not only secured EPR contracts with three national tyre brands but also doubled its profit margin by selling high-grade carbon black to pigment manufacturers.

That’s the power of compliance-driven growth.

Environmental & Economic Benefits

  • Diverts hazardous waste from landfills
  • Cuts dependency on imported furnace oil
  • Generates employment for skilled and unskilled workers
  • Enables tyre producers to meet 100 % EPR targets by 2025
  • Advances India’s Net Zero 2050 and Circular Economy goals

How Green Permits Can Help

At Green Permits Consulting LLC, we guide businesses like yours through every stage — from idea to operation.

Our services include:

  • Project Feasibility and DPR Preparation
  • Plant Layout & Pollution Control Design
  • SPCB CTE / CTO Assistance
  • CPCB EPR Portal Registration and Certificate Generation
  • Annual Return Compliance and Audit Support

📞 +91 78350 06182 📧 wecare@greenpermits.in
Book a Consultation with Green Permits

Book a Technical Call with Expert

Yes — but only for CPCB-approved continuous plants equipped with emission and safety controls. Batch-type systems are prohibited.

You need CTE, CTO, Hazardous Waste Authorization, and EPR Recycler Registration through the CPCB portal.

A 5 TPD unit needs around 0.5 to 1 acre of industrial land with safe road access and fire-fighting facilities.

A compliant plant can achieve 25–35 % ROI with a payback of 2–3 years, especially if EPR certificates are monetized efficiently.

It can be shut down immediately and fined up to ₹ 8.4/kg of waste handled, besides losing future EPR eligibility.