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DRS under govt review, rollout to be delayed

Scheme's deposit rates, timeline being examined; may take another two months to launch

THE GOAN NETWORK
Published Mar 4
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PANAJI
Facing mounting resistance, operational concerns and cost implications, the State government is reviewing both the timeline and pricing structure of the proposed Deposit Refund Scheme (DRS), raising the possibility of a rollout being pushed beyond the planned April 1 launch.

With apprehensions growing across industry and trade sectors, the government is likely to defer implementation by one to two months while intensifying discussions on rationalising deposit rates for products packaged in plastic and multi-layered materials. However, the deposit rate for liquor bottles will remain unchanged at Rs 10 per bottle.

The scheme is proposed to begin with the collection of alcoholic beverage containers in the first phase, followed by other liquid beverages in the second phase, before being expanded to additional categories of non-biodegradable packaging.

A senior official at the Secretariat confirmed that deliberations are underway to postpone the launch. “Unless we are able to address concerns raised by stakeholders such as trade bodies, village representatives and citizens, we cannot proceed. Even after the launch, a transition period of about one month will have to be provided,” the official said.

The official indicated that the rollout could be delayed by a month or two. “That is what is currently under discussion. A delay beyond that may not be feasible,” the official added, confirming that the government is also working on revising the deposit rates payable by consumers.

As per the existing framework, consumers would pay a refundable deposit ranging from Rs 2 to Rs 10 over and above the Maximum Retail Price (MRP) for products sold in plastic and glass packaging. The government is now exploring a reduction in rates. “Items priced below Rs 5 will be exempt from the DRS. Only products costing Rs 5 and above will be covered,” the official said.

Clarifying the pricing mechanism, the official emphasised that the additional amount is not part of the product price but a refundable deposit. “The deposit will be returned to consumers upon the return of used packaging,” he said.

Industry bodies representing the alcoholic beverage sector ” the first to come under the scheme ” have urged the government to defer implementation until after October, citing potential supply chain disruptions and revenue losses. Several village panchayats and retailers have also expressed concerns over operational challenges.

Meanwhile, the Excise Department has made it mandatory for all liquor bottles sold in the State to carry high-security, tamper-resistant QR code stickers to enable digital tracking. The track-and-trace system will facilitate refund processing and help authorities monitor the source of purchase.

According to a notification published in the official gazette, amendments to the Goa Excise Duty Rules, 1964 apply to manufacturers of Indian Made Foreign Liquor (IMFL), wine, beer and country liquor, as well as bottling units and importers supplying packaged liquor to Goa from other states or abroad. No bottle will be permitted to leave a manufacturing unit, bottling unit, warehouse or licensed premises without the mandated security label affixed.

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