The Tamil Nadu State Marketing Corporation (Tasmac) has invited bids to appoint a system operator for deploying and operating reverse vending machines to automate the collection and buyback of empty liquor bottles and containers across the state. The proposed technology-driven system aims to replace the existing manual bottle return mechanism and provide consumers with a faster, digital process for claiming the bottle deposit.
Tasmac sold around 314.04 crore liquor bottles of various sizes during the 2025-26 financial year, highlighting the scale of the proposed bottle collection system. Under the new arrangement, consumers will be able to return empty liquor containers at designated collection points and receive an incentive of Rs 10 per container through instant digital payments, including UPI, according to an official.
The incentive amount will be paid from a separate account maintained by the Commissionerate of Prohibition and Excise. The tender covers Tasmac retail outlets, attached bars and licensed FL-2, FL-3, FL-11 and allied premises across Tamil Nadu. As of August 2026, Tasmac operated 4,048 liquor shops, including 1,409 outlets with attached bars.
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Under the proposed system, every eligible liquor container will carry a unique serialised QR code. The QR code will be scanned at the time of sale and again when the empty bottle is returned. Consumers will be allowed to return bottles at any designated collection point, irrespective of the Tasmac outlet from which the bottle was originally purchased.
The reverse vending machines will verify the QR code as well as the physical condition and identity of the returned container. The system is also designed to prevent duplicate claims and automatically initiate the Rs 10 incentive payment once the return is successfully verified.
Tasmac plans to implement the automated bottle buyback system in six phases. Handheld collection devices are expected to be deployed at 500 stores within one month of signing the agreement with the selected contractor, followed by deployment at 2,000 stores within two months and all Tasmac outlets within three months.
The installation of automated reverse vending machines will also be carried out in phases. Machines are scheduled to be installed at 500 stores within three months, 1,000 stores within four months and 3,000 stores within five months. The company plans to complete installation across all Tasmac outlets as well as FL-2 and FL-3 premises within six months.
The proposed technology-enabled system will replace the existing manual liquor bottle buyback arrangement, which was introduced following directions from the Madras High Court in a series of environment-related petitions. Under the current system, consumers pay Rs 10 in addition to the maximum retail price (MRP) of the liquor bottle and receive the amount back after returning the empty container.
Tasmac said that amounts collected but not reimbursed have been deposited into designated bank accounts in compliance with the High Court’s directions. The proceeds generated from the sale of bottles collected under the existing arrangement have also been accounted for separately.
The proposed reverse vending machine system is expected to bring greater automation and traceability to Tamil Nadu’s liquor bottle collection process while enabling digital settlement of bottle incentives through platforms such as UPI.
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