Paper brings in to focus the differentiation of waste at Faridabad as a case study, in order to achieve the sustainable waste management with heat recovery options. There are more than 234 clinics/ hospitals and having more than 2400 beds in Faridabad. These units are generating 3600 kg / day as hospital waste and 800 kg -1600 kg as incineration and autoclave waste which is disposed through Common Waste Treatment Facility (CWTF) at Faridabad. Attempt has been made to reduce waste in Faridabad hospitals by using minimization technique. The paper is to seek segregation of waste with color (red, blue, yellow and black) coding as to assist reuse, recycling and at the same time minimizing waste for waste disposal options. Category wise waste segregation is computed. Qualitative analysis was performed on each bag by separating its contents in to one of three component categories; (1) Treatable (2), Biodegradable and (3) Recyclable waste. Treatable, Recyclable and Biodegradable waste from Faridabad hospitals is 45.1 percent, 20-30 percent,21-40 percent respectively Correlation coefficient is also determined between general waste and infectious waste. All segregated waste percentage is also calculated for the purpose of best options of waste disposal and resource recovery. Paper summarizes the results of the field investigation. [ABSTRACT FROM AUTHOR]