AP aims to position as pioneer in circular economy, to increase GSDP by Rs.15,000 crore, GST gain to over Rs.4,000 crore by 2030

The Circular Economy and Waste Recycling (CEWR) Policy 4.0 (2025-30) unveiled recently aims to position the State as a pioneer in circular economy and formalise handling of waste in a responsible and efficient manner.

The policy lays emphasis on creating regenerative economic system to minimise waste and facilitate its reuse, repair, refurbishment and recycling dispensing with the old system of 'collect and dump' so as to make waste into a valuable resource.

With focus by Chief Minister N. Chandrababu Naidu to convert waste into value, Andhra Pradesh has become the first State to introduce the policy exclusively to integrate large-scale circular economy clusters with standalone waste collection and processing centres. In the first phase, a circular economy park will be established in an area of 400 acres in Visakhapatnam on the proposal made by Material Recycling Association of India.

The policy has set its eyes on increasing GSDP by an estimated Rs.15,000 crore per annul and supply of recycled material worth Rs.10,000 crore to the manufacturing sector. The value addition is likely to create Rs.3,000 crore per annum in the form of GST revenue to the State. The initiative is also expected to generate direct jobs for one lakh people and support as many as 10,000 micro enterprises so as to provide livelihood indirectly to over one million people.The revenue from GST is expected to increase by over Rs.4,000 crore by 2030 from projects taken up under the circular economy mission.

As part of the policy, the State has decided to a first of kind to 5-star certification scheme that publicly recognises companies based on their circular-economy performance. Each star level corresponds to progressively higher waste-diversion and resource-recovery benchmarks.

Rated firms will receive fast-track environmental permits, streamlined regulatory clearances, and exclusive branding rights (use of the “Green Star” logo) to showcase their leadership.

By aligning reputational benefits with tangible incentives, this scheme drives voluntary overachievement and sets a new national standard for industrial sustainability. The Green Star Rating initiative by the Andhra Pradesh Pollution Control Board (APPCB) will be a unique role model being set for others to replicate, a senior official said.

The policy aims to transform all categories of waste into valuable inputs to propel environmental restoration, resource efficiency, climate resilience and sustainable economic prosperity so as to achieve a full circular economy by 2047 as part of Swarnandhra Vision.

The government believes that this will align with the vision to convert AP into a 'nucleus for circular manufacturing'' and unlock new economic opportunities.

Several departments including Municipal Administration & Urban Development,, Panchayat Raj and Rural Development, Industries and Commerce and Environment and Forests are involved actively to use digital tools for effective implementation of the policy.

Minimising waste generation, maximising resource efficiency and reintegrating wase into the production cycle through reuse, recycling and recovery are the focus areas of the policy.Mitigating adverse environmental impacts will be the thrust of the critical measures outlined in the policy.

The policy's thrust is on fostering innovation in waste management, create regional thematic clusters, circular economy parks and create a robust digital circularity ecosystem.