New Delhi, Oct. 27 -- In Bhopal, Madhya Pradesh, household waste can do more than fill a bin. At the Kachra Cafe, old newspapers, plastic packets, cardboard and other recyclable materials can be exchanged for food, drinks and everyday essentials.

The idea is simple: give people a reason to separate their waste instead of throwing everything away together.

The initiative, launched with the Bhopal Municipal Corporation, offers a different way to approach a problem that cities across India continue to face. Instead of asking residents to recycle simply because it is good for the environment, the cafe gives them something tangible in return.

The concept has attracted attention for turning everyday rubbish into something of value. According...