Sherab Lhamo

Picture this: You drop a PET bottle into a machine and receive Nu 5 back, just like using an ATM. Thanks to the new Digital Deposit Refund System (dDRS), this is now a reality.

The dDRS is an incentive system that encourages consumers to bring back their waste for a refund deposit. This system employs Internet of Things (IoT) and machine learning to identify and sort recyclable materials.

Ugyen Trading House, in collaboration with Recykal from India, introduced this system yesterday while observing World Ozone Day.

The dDRS, developed by Recykal—a leading Indian technology firm specialising in waste management—utilises advanced AI to detect whether items are plastic, glass, or metal.

The system scans and verifies deposits through a combination of cameras and sensors, ensuring only eligible items are accepted.

Currently, bottles and cans must be scanned using a QR code sticker, but future plans include integrating their app with the banks for direct online refunds via mobile banking apps.

The system also alerts handlers when it reaches half capacity, ensuring timely maintenance.

A comprehensive study on waste generation in Thimphu, costing Nu 2 million, informed the design of the dDRS.

The pilot phase will begin in October, with machines placed at strategic locations including Changyul Park, Centenary Park, and town centers.

Smaller versions of the system, requiring a supervisor, will be deployed in less crowded areas.

The consultant of the dDRS, Druk consult International CEO, Sangay Dorji, said that compared to the existing waste banks, the dDRS does not require visits to waste collection centres, making it easier for individuals to recycle and earn rewards.

“But if you do not deposit and leave it some place. Someone else will pick it up due to its intrinsic value, and they will take it to the machine, and get the value back,” he said.

The chairman of Ugen Trading House, Ugen Norbu Jamyang, said that the system aims to foster personal responsibility in waste management, shifting focus from traditional scrap dealers to individual recyclers.

“Scrap dealers pick up trash from riversides, drains, and roadside to earn money. Instead through this system, we are asking individuals and making them feel responsible,” he said.

The Recykal’s chief innovation officer, Sujan Parthasaradhi, said the dDRS encourages responsible recycling by offering financial incentives, which not only benefits the environment but also creates job opportunities and reduces carbon emissions.

“The funds returned to people are a direct result of their commitment to responsible recycling by providing the dDRS team with recyclable materials, and the people are receiving the reimbursement,” Sujan Parthasaradhi said.

The dDRS team is working with the Department of Environment and Climate Change to establish a policy and regulatory framework.

Once in place, the price of the pet bottle and can products can increase. For example the price of mineral water can increase to Nu 15 for each bottle, and when deposited into the system will receive Nu 5 refund.

Sangay Dorji said that the idea is to make sure that the cost of the product also includes the cost of disposal, and to refund back for managing your waste.

The system also stores data of individuals, the number of bottles and cans deposited, and how many times a person deposits.

The long-term goal of the dDRS team is to create a circular economy by ensuring all materials are recycled and reused within the country.