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Plastic Parks Scheme

  • 24 Sep 2020
  • 5 min read

Why in News

The Ministry of Chemicals & Fertilizers has approved setting up of 10 Plastic Parks in the country.

  • The Parks are being set up in the states of Assam, Madhya Pradesh, Odisha, Tamil Nadu, Jharkhand, Uttarakhand and Chhattisgarh.
  • A Plastic Park is an industrial zone devoted to plastic enterprises and its allied industries.

Key Points

  • Background:
    • The share of India in world trade of plastics is very low. India's share in the USD 1 trillion global plastic exports market is about 1%.
    • The Indian Plastics industry is large but highly fragmented with dominance of tiny, small and medium units and thus lacks the capacity to tap this opportunity.
    • The Scheme for setting up of Plastic Parks has been formulated with a view to synergize and consolidate the capacities through cluster development.
  • Features of the Scheme:
    • Demand-Driven: Supports setting up of a need based 'Plastic Parks’ - an ecosystem with requisite state of the art infrastructure and enabling common facilities to assist the plastic sector move up the value chain and contribute to the economy more effectively.
    • Major Objectives:
      • Increase the competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry through adaptation of modern, research and development led measurers.
        • In the petrochemical supply chain, the plastics industry can be classified into two categories.
        • First, the manufacturing of polymers, which is called ‘upstream’.
        • The second one is conversion of processable polymers (plastic raw materials) into useful end products, which are classified as ‘downstream’.
      • Achieve environmentally sustainable growth through innovative methods of waste management, recycling, etc.
  • Funding Pattern:
    • The Central Government provides grant funding up to 50% of the project cost, subject to a ceiling of Rs. 40 crore per project.
    • The remaining project cost is funded by the State Government, beneficiary industries and by loan from financial institutions.
  • Implementation: A Special Purpose Vehicle (SPV) shall complete the setting up of the Plastic Park in a period of three years from the date of final approval.
    • The SPV is a distinct legal entity formed by the State Government or its agency.
  • The Central Institute of Petrochemicals Engineering and Technology (CIPET) has established a Centre for Skilling and Technical Support (CSTS) at Vijayawada in Andhra Pradesh which provides Diploma programmes and skill development training programmes in the field of Plastics Engineering & Technology.
    • CIPET is a premier government of India institute.
  • Challenges for the Plastic Industry:
    • Increased volume of plastic waste. As per reports on the status of India, only 60% of this waste gets recycled.
      • The major challenge is segregation and re-aggregation of plastic waste streams such as packaging waste, including laminated plastic.
      • Pollution caused by plastic waste is tormenting the environment including aquatic resources necessitating urgent action, that is why the plastic sector needs better management.
    • A lack of upgrading quality and diversification in the product range.
      • India has committed to phase out the use of single-use plastic by 2022.

Way Forward

  • Plasticulture, i.e. the use of plastics in agriculture, horticulture, water-management, food grains storage and related areas should be promoted. Recycling of plastics is one of the foremost steps towards innovation and sustainability in this industry.
  • Further, the government needs to work on the draft 'National Plastic and Packaging Industry Development Policy 2019'.

Source: PIB

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