Megacities represent a striking paradox; they expand by simultaneously constructing and dismantling themselves. In this perpetual cycle of growth, construction and demolition (C&D) waste has emerged as one of the most voluminous yet underutilised by-products of urbanisation. There is a major data gap in the measurement and reporting of the quantity generated. Estimates of C&D waste generation in India vary widely, ranging from approximately 150 million tonnes (mt) to over 500 mt annually. This uncertainty directly affects infrastructure planning for recycling capacity, policy target-setting for utilisation mandates and investment decisions in C&D waste processing.
Traditionally, such debris has been relegated to landfills or informal dumping grounds, creating environmental and logistical crises. However, the emerging paradigm of a circular economy is proving transformational, looking at how the C&D waste generated by cities can be reutilised as raw materials for the next phase of infrastructure development. Projects in the road, railway, airport, port and other infrastructure sectors that demand enormous raw materials are turning towards the repositories of recycled C&D waste. This shift is not merely technological; it represents a deeper restructuring of urban governance and economic incentives.
Waste processing scenario from municipal lens
The scale of the challenge posed by C&D waste becomes evident when one considers the simultaneous growth in its generation and infrastructure demand. Among large urban agglomerations, Delhi generates around 12,500 tonnes per day (tpd) of municipal solid waste (MSW), owing to rapid urbanisation and resultant high construction activity. As part of MSW, C&D waste accounts for nearly a 50 per cent share and holds distinct value due to its high potential for reuse in construction applications. Tapping into this potential, Delhi’s municipal bodies are responding more strategically. The Municipal Corporation of Delhi (MCD) manages and processes this large waste stream through its four C&D recycling plants with a combined capacity of 5,000 tpd, located at Bakkarwala, Burari, Shastri Park and Ranikhera. To further strengthen processing capacity, it is also developing a new 1,000 tpd plant at Tehkhand, Okhla, on reclaimed land, targeted to be completed by December 2026. This demonstrates how centralised processing can enable efficient logistics for potential reuse. In the city’s other jurisdiction limits, a near-total recycling model is being attempted by the New Delhi Municipal Council as a decentralised solution. It has developed a relatively streamlined system in which 35-40 tpd of C&D waste is collected and transported to its Shastri Park recycling plant by a dedicated agency for scientific processing.
Yet another perspective is evident in the case of Haryana, where cities are addressing C&D waste processing gaps at varying stages of progress. One of them is Gurugram, which generates around 1,500 tpd of C&D waste (as of February 2026), of which nearly 80 per cent is processed at the Basai plant, with a proposed 400 tpd facility expected to address the residual gap. In Faridabad, which generates around 300 tpd of C&D waste, the absence of an operational facility persists despite visible progress in capacity planning. The city has identified three sites, namely, Riwazpur, Bajri and Mirzapur, for a proposed 300 tpd centralised plant and two 50 tpd mobile units. Their land demarcation is complete, and project planning is under way. This reflects a transitional stage in which institutional intent is clear, but infrastructural capacity is still catching up. These varying trajectories highlight a broader reality. The integration of C&D waste into a circular economy is not a uniform process but a spectrum shaped by governance capacity through facility development.
Regulatory turn towards circularity
The evolving policy landscape in India recognises the status quo of infrastructure and the need to integrate it with waste management. Aligning with this objective, a significant departure from earlier frameworks has been made in the C&D Waste Management Rules, 2025. The introduction of extended producer responsibility (EPR) and waste utilisation targets in these new rules is attention-worthy. They define EPR as the responsibility of producers to manage C&D waste in an environmentally sound manner and meet recycling targets. These targets start at 25 per cent in 2025-26 and increase to 100 per cent by 2028-29. Effective from April 1, 2026, the rules have shifted the accountability on to builders and developers. This regulatory shift is particularly important because it calls out a major lacuna in waste management, which is the disconnection between waste generation and responsibility for its reuse.
The overdue oversight on waste management outcomes has led to a recent regulatory push by the Prime Minister’s Office and the Ministry of Housing and Urban Affairs (MoHUA) to clear 100,000 metric tonnes of C&D waste in Delhi between March 6 and 21, 2026. However, this exercise risks merely piling waste once again, in the absence of adequate processing or utilisation mechanisms. Stitching this disconnect, policy interventions are increasingly becoming more directive at the municipal level. The MCD’s decision in November 2025 to mandate the use of recycled C&D materials in its construction and maintenance works is one such step towards institutionalising circular practices. These mandates are crucial because they create assured demand for recycled products, thereby encouraging investment in processing infrastructure.
Strong regulatory enforcement through disciplinary actions and a tight monitoring grip is a must to improve traceability and channelisation of debris into formal systems. This ground is established by the Municipal Corporation of Gurugram with the recent uptake of round-the-clock surveillance, penalties and designated collection centres to curb illegal dumping. Similarly, Chennai adopted a more assertive enforcement approach by introducing vehicle seizure, real-time monitoring and fines of Rs 5,000 per tonne of waste, for reckless dumping, in January 2026.
Infrastructure as a reuse design board
If policy provides the framework, infrastructure projects offer the scale necessary to operationalise circularity. Roads, in particular, have emerged as a key entry point for integrating recycled materials. The 2025 rules also mandate the minimum use of recycled or processed C&D waste in construction and road projects. The requirement begins at 5 per cent in 2026-27 and will increase to 15 per cent for road projects by 2030-31.
A recent move in Delhi showcases how waste management can be the backbone for circular infrastructure systems. In November 2025, the government sanctioned a Rs 6.1 billion programme to upgrade C&D waste collection and monitoring infrastructure, alongside expanding mechanised road sweeping. Beyond dust control, the initiative aligns waste aggregation with infrastructure maintenance, improving the quality, consistency and traceability of debris. Further, the MCD’s recent pilot initiative to incorporate plastic waste in dense carpet work of road construction at three locations in two zones provides a template for the broader use of recycled C&D aggregates in road sub-bases and embankments. More significantly, there is growing evidence of C&D waste being utilised in large-scale infrastructure projects. For instance, C&D waste recovered from biomining processes is being used as landfill material in National Highways Authority of India projects such as Meethapur 1, Urban Extension Road II; FRD Bypass project, RMC Plant; and Eco Park, private land and Ravali, Reliance road; etc. This demonstrates the potential of infrastructure projects to act as material sinks, absorbing large volumes of recycled waste that would otherwise burden landfills.
Waste clearance is also being structured into material recovery along Delhi’s railway corridors. In March 2026, the MCD and Indian Railways launched a coordinated drive to remove legacy waste, including C&D debris, while establishing designated collection points and long-term cleaning mechanisms. This shifts railway corridors from informal dumping zones to organised aggregation channels, improving the capture and quality of debris and strengthening its potential for reuse in construction applications.
Cost economics driven by incentives and private offtake
While the environmental rationale for using C&D waste is compelling, its widespread adoption ultimately depends on economic viability. Recycled materials often face a cost disadvantage due to processing and transportation expenses. Moreover, the spatial mismatch between waste generation sites and construction projects can further increase logistics costs. To address this, economic instruments are also being recalibrated to support this transition. The proposal to reduce the GST on recycled construction materials from the current 18 per cent to 5 per cent reflects an understanding that market barriers, particularly price competitiveness, are a major impediment to adoption.
At the same time, the involvement of private sector players in C&D recycling indicates that the sector is beginning to attract commercial interest, which could drive innovation and scale. Notably, private buyers account for nearly 67 per cent of recycled C&D waste demand, while government agencies contribute only about 14 per cent, indicating a clear divergence between policy intent and actual offtake patterns. This trend is also evident in recent data (from April 2025 to November 2025), which highlighted that around 450,000 metric tonnes of processed material was sold in the private market, compared to just 80,000 metric tonnes procured by government agencies.
Market acceptance is emerging organically in cost-sensitive private applications, while public sector uptake remains constrained by procurement practices and project pipelines. As a result, the scalability of C&D waste reuse will depend on strengthening institutional demand alongside leveraging private sector momentum, to ensure consistent and balanced offtake of recycled materials.
Filling up systemic cracks
A fundamental constraint in scaling C&D waste reuse lies not in the availability of material, but in the systemic inefficiencies that limit its absorption into mainstream construction. In Delhi, despite policy mandates, a pronounced demand-side bottleneck persists. In 2025-26, against a revised waste utilisation target of 990,000 metric tonnes set by MoHUA for agencies such as the MCD and the Delhi Development Authority, only about 13 per cent (130,000 metric tonnes) was utilised between April 2025 and February 2026. This shortfall, despite moderated targets, underscores a structural disconnect between recycling capacity and actual offtake, reflecting gaps in procurement practices, material acceptance and integration into engineering specifications.
At the same time, utilisation remains skewed towards low-value applications such as landfilling and embankments, with limited penetration into higher-value uses like structural concrete or prefabricated components. Advancing this transition will require not only improvements in material processing and standardisation, but also stronger alignment with regulatory frameworks and contracting norms. Equally critical is addressing market perception – persistent concerns around quality and reliability continue to deter adoption, even where technical validation exists. Building confidence through demonstration projects, robust certification systems and targeted awareness initiatives will therefore be essential to mainstream recycled C&D materials within India’s infrastructure ecosystem.
Shubhangi Goswami