The Ministry of Chemicals & Fertilizers in India has recently given its affirmative nod to the establishment of 10 Plastic Parks across the county. These industrial parks, dedicated solely to plastic enterprises and their related sectors, will be strategically located in the states of Assam, Madhya Pradesh, Odisha, Tamil Nadu, Jharkhand, Uttarakhand, and Chhattisgarh.
The Backdrop: India’s Stance in Global Plastic Trade
In comparison to international markets, India’s share in the global plastic trade is significantly low, accounting for only about 1% of the USD 1 trillion global plastic exports market. The domestically large but highly fragmented Indian Plastic industry, dominated by small and medium-sized units, lacks the capacity to seize this global opportunity. To streamline this sector, the Ministry has envisioned the idea of creating Plastic Parks, adopting a cluster development approach.
Key Aspects of the Plastic Park Scheme
This initiative to establish ‘Plastic Parks’ is essentially demand-driven, aiming to boost the plastic sector and contribute to the economy more effectively through the creation of an ecosystem with state-of-the-art infrastructure and supportive common facilities.
The prime objectives include enhancing the competitiveness and polymer absorption capacity of the domestic downstream plastic processing industry. It aims to encourage adaptation of research based methodologies, and achieve sustainable growth through innovative waste management and recycling methods.
Funding Pattern and Implementation
The Central Government is set to provide grant funding up to 50% of each project’s cost, capped at Rs. 40 crore per project. The remaining cost will be funded by the State Government, beneficiary industries, and financial institutions loans.
The implementation will be carried out by a Special Purpose Vehicle (SPV), a defined legal entity formed by the State Government or its agency. The SPV shall complete the setting up of the Plastic Park within three years from the final approval date.
Role of Central Institute of Petrochemicals Engineering and Technology
Playing a vital role in this initiative, the Central Institute of Petrochemicals Engineering and Technology (CIPET) has established a Centre for Skilling and Technical Support (CSTS) at Vijayawada in Andhra Pradesh. The centre offers Diploma programs and skill development training in Plastics Engineering & Technology, thus nurturing the future talents for the sector.
Challenges for the Plastic Industry
The plastic industry in India faces a host of challenges. Topping the list is the increasing volume of plastic waste – according to reports, only 60% of this waste gets recycled. Segregation and re-aggregation of waste streams like packaging waste pose significant problems.
Another challenge is the pollution caused by plastic waste, which affects the environment, including aquatic resources. This necessitates urgent action for better management of the plastic sector, including upgrading quality and diversifying the product range.
The Way Forward
The government promotes “Plasticulture”, or the use of plastics in agriculture, horticulture, water-management, food grain storage, and related areas. Recycling of plastics is another crucial step towards sustainability in this industry. Further efforts by the government include working on the draft ‘National Plastic and Packaging Industry Development Policy 2019’.
