Under the new rules, it will be the responsibility of each manufacturer, importer, assembler and recycler of batteries to ensure that the number of used batteries collected is equal to the number of new batteries sold. They will be required to file returns, set up collection centres and ensure that collected batteries are sent to authorised recyclers only in the absence of an in-house recycling facility.

Each recycler will have to apply to the ministry to be registered for reprocessing used batteries. The batteries thus collected are to be recycled only by the recycling units who have the required environmentally sound managed (ESM) plants. The ministry of environment and forests will decide which are the ESM plants after due inspection and verification of the pollution control and other facilities available with the plant.

Bulk consumers have to ensure that used batteries are not discarded but instead passed on to a dealer, importer, or authorised recycler. They must also buy secondary lead only from authorised recyclers. Consumers like railways, defence, transport undertakings, ordinance factories etc. have to ensure that the used batteries are given only to the certified/authorised secondary plants for recycling.

Indian Lead, chairman Bhagwan Thadani says that lead is a metal which is most amenable to being recycled by virtue of its having a low melting point and the relative ease with which it can be reduced to its metallic form from its compounds.

In fact, he adds that lead has an indefinite life and can be reused again and again.

In April 1997 the Supreme Court banned the import of battery scrap, as old batteries were considered to be a hazardous waste.

The Supreme Court advised the ministry of environment and forests to regularise the recycling of lead waste within the country. The environment ministry thereafter took up this matter and after consulting all the persons, trade associations and organisations concerned with the production, usage and distribution etc. of the old batteries and lead bearing waste materials in general formulated the required rules and have now published them in the Gazette. The new rules are expected to increase the availability of battery scrap for registered recyclers. Some estimate that during the next twelve months around 50,000 tonnes of lead scrap will flow into the market for registered secondary lead producers.

For example, Indian Lead said it could step up production from its present 12,000 tpy of lead to over 30,000 tpy. There are at least another three companies which may apply for registration by the ministry.

Thadani believes, that with the rules coming into force soon, the lead recycling industry will attract investment once again. With secondary materials the cost of used batteries and other lead bearing waste would vary according to the LME price for lead metal and the margins would be more or less stable. Currently there are around three to four eco-friendly secondary lead smelters.

Initially, few of the units that shut down because of the ban on imports of battery scrap are likely to start-up operations. Fresh investment is likely to follow.

Exide Industries, which is the biggest user of lead in India, is also planning to have a recycling unit for lead from used batteries.

Exide also plans to set up a new battery making unit in Bawal, Haryana in India at a cost of Rs 80 crore. The plant will produce batteries for export, with the sales strategy targeted mostly at south east Asia through its subsidiary Chloride Batteries, based in Singapore. The company's rights on the "Exide" logo is restricted to India and some neighbouring countries.

Its strategic partner, Shin Kobe Electric Co of Japan, is keen to source battery supplies from India which would benefit the Exide project.

Exide plans to reach sales of Rs 1,200 crore in 2000-2001 from Rs 939 crore in the previous financial year. It has a share of over 75 per cent of India's automotive battery market and is now moving into industrial batteries to expand its volumes.