Context: Recently, the Government has come up with a scheme of setting up of Plastic Parks with state-of-the-art infrastructure through cluster development approach.
Key Points

• The Department of Chemicals and Petrochemicals has approved the setting up of 10 Plastic Parks in the country.
• Six of these parks have already been given the final approval and they are in the states of Assam, Jharkhand, Madhya Pradesh (2 parks), Tamil Nadu and Odisha.
• The parks are being built to consolidate and synergize the capacities of the domestic downstream plastic processing industry.

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.

Road Ahead

• 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'.
• The options are all around us but true change is possible only when each one of us takes responsibility for the environment around us and takes necessary steps to Refuse, Reduce, Reuse, Recycle and Remove, or dispose of plastic waste safely and effectively.