Tinna management says tyre companies are “resistant to buy the EPR credit” and view it as an added advantage to the recyclers. As it is, tyre industry is going through tough times, and this comes as an additional burden on them.
The whole EPR regime is managed and administered by a Steering Committee, which has a representative each from Recycler and Tyre companies and a bunch of bureaucrats. The obligation percentages, product-wise weightages, conversion factor, floor and cap price etc. are all decided rather arbitrarily by the Committee. Changing these parameters changes the demand – supply balance of EPR credits. Tyre companies can exert more influence on these bureaucrats / politicians than recyclers and are known to work in a cartel anyway. It looks like they are refusing to buy the credits (at least at current rates). Until the EPR regime settles down, it is better not to factor in any revenues from EPR.
GRP has also not been able to sell any EPR credits. But they have not booked any revenue in P&L either.
This is a more conservative (and better) approach than Tinna, who has booked revenue on accrual basis.
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