Tasmac bottle buy-back scheme to completely shift to reverse vending machines

CHENNAI: The Tamil Nadu government has approved a tech enabled system to collect empty liquor bottles and refund Rs.10 to consumers through digital payments, taking the bottle buy-back process out of the hands of Tasmac retail shop employees and placing the responsibility on a system operator.

Under a Government Order (G.O. (Ms.) No. 63) issued by the Home, Prohibition and Excise Department, the government has approved the use of reverse vending machines (RVMs) and other authorised collection arrangements to replace the existing manual and cash-based system. The move comes amid protests by TASMAC employees over the additional workload involved in collecting, verifying and storing returned bottles.

The machines have already been introduced on a pilot basis at select outlets in Chennai. The revised system will be rolled out across the State in phases. Once implemented, consumers will be able to return eligible empty bottles at authorised collection points and receive Rs.10 through digital payments, without having to visit the outlet where they purchased the liquor.

The G.O. states that the existing bottle buy-back scheme was operational in 31 districts, with steps being taken to cover the remaining districts. The first pilot machine was installed at a Tasmac outlet near Albert Theatre in Egmore in June 2026.

The Managing Director of Tasmac and the Commissioner of Prohibition and Excise have been directed to finalise the tender and execute an agreement with the successful bidder. The system operator will be responsible for arranging manpower, operating the machines, collecting and storing bottles, and transporting them for further processing or disposal.

The order also explicitly excludes Tasmac retail shop employees from collecting, counting, verifying, handling and temporarily storing empty bottles, as well as processing cash refunds. They will also not be required to maintain manual accounts for these transactions. The operator must make its own arrangements for manpower and operations without transferring these responsibilities to shop personnel.

The transition will be carried out region-wise, with the existing arrangements continuing until the new system is commissioned. During the interim period, arrangements must, to the extent operationally feasible, avoid involving retail staff in manual refunds, handling and storage, except for supervision.

As part of the transition, existing region-wise contracts for collecting and disposing of empty liquor bottles, awarded for the period from August 2025 to July 2028, will be pre-closed or terminated in accordance with the applicable contractual provisions. Their closure will be linked to the commissioning of the revised system in each region, with the government directing that collection and disposal should continue without interruption.

The move follows a Madras High Court directive in March 2026, which gave the government until May 31 to implement the bottle buy-back scheme in the remaining districts. Initially introduced in the Nilgiris district in May 2022, the scheme was subsequently extended to other parts of the state