The All India Plastics Manufacturers Association (AIPMA) has opposed the Government notification for ban on various types of plastics In Maharashtra. Terming the ‘Maharashtra Plastic and Thermocol Products Notification, 2018’ as “impractical, unrealistic and not a solution to the underlying issue of Pollution,” the AIPMA stated that the ban has drastically affected the Plastic Industry with its impact being seen statewide.
Describing the plastic sector in Maharashtra as ‘vital’ for economic and industrial development in the state, Hiten Bheda, President, AIPMA, said the plastic industry caters to about 30% of India’s GDP and around 35% of Maharashtra’s GDP. The total volume of plastic products is around Rs 50,000 crores, while the ban-related products amount to Rs 5,000 crores, he said.
“The overall employment through the plastics industry is over four lakh jobs, while the overall plastic industrial units being closed down — due to this ban in Maharashtra – are 2,150 units. The estimated GST revenue from the plastics sector through sale in Maharashtra is Rs 8,400 crores, while GST revenue from sale of disposable plastic items –covered by the ban – is Rs 800 crores,” Bheda stated, adding “The plastics industry is becoming increasingly important for facilitating sound infrastructure in a very sustainable manner and this sector has a huge, unrealized potential, which will remain unexplored due to such bans being imposed.”
“As of now, we are not aware about who is making these illegal plastic bags. However, this ban in Maharashtra has drastically affected manufacturers, traders, distributors, retailers and stakeholders of the plastics industry and also resulted in large-scale unemployment. This ban will devour the plastics industry and affect the state’s economy as well due to affiliated industries like beverages, medical, fast food, retail chains, wholesalers, garment, packaging, dairy industry all shutting down due to no viable alternatives in place of plastic packaging,” he said.
“There is a comprehensive Central regulation issued by MOEFCC called ‘Plastics Waste Management Rules’ that effectively address the issue of plastic waste. Hence multiple regulations around the same challenge may send potentially-conflicting messages and – more importantly – hamper ease of doing business.”
“On Extended Producer Responsibility (EPR), a national level framework is being proposed by the industry and is under active consideration of the MOEFCC,” he said while urging the Maharashtra Government to wait for that report to be released before developing anything specific for Maharashtra. “The EPR model proposed in the Maharashtra notification takes away the primary responsibility of the Municipal, Local urban bodies and Village Panchayats to administer the task of waste collection, segregation and disposal. The established models of EPR are in partnership with the industry, but Primary responsibility remains with the Government.
Replying to media queries, Bheda said “We are trying to persuade the Maharashtra Government to lift the ban before we decide to approach the court. The Supreme Court guidelines stipulate waste collection only by Municipal Authorities. Ragpickers are unable to collect plastic waste and reach it to us. Besides the Plastics Industry is the only one having its own recycling sector.”
The Plastics Processing Industry has grown at a CAGR of 10% in volume terms from 8.3 MMTPA in FY10 to 13.4 MMTPA in FY15 and is expected to grow at a CAGR of 10.5% from FY15 to FY20 to reach 22 MMTPA. In value terms, the plastics processing industry has grown at a CAGR of 11% from Rs 35,000 crore in FY 05 to Rs 100,000 crores in FY15, the AIPMA stated.
