Page 10 - Plastics News April 2020

AIPMA's recommendation on urgent issues to be taken up by FICCI with Government of India to

mitigate the deep crisis faced by MSME's in Plastic Sector.
nd
An online meeting with CPC Sector was held on 2 April, enable the exporters to come out from this critical
2020, chaired by Shri P. Raghavendra Rao, Secretary, situation.
Department of Chemicals and Petrochemicals ,
Government of India to discuss the problems of 5. Trade-policy measures – Government may have to
Petrochemicals sector and possible solutions during this relook at various FTAs and revisit Anti-Dumping
difficult situation.. Duties on various products to avoid a scenario
where low-quality products will be dumped in the
AIPMA was represented by Mr. Raju Desai – Past President country and domestic players will suffer hugely.
and following suggestions were given in the meeting and Necessary duty protection may be given to Indian
requested FICCI to take up these issues urgently with companies. Export subsidies may also be accorded
Government of India to mitigate the crisis faced by quickly to boost exports.
MSMEs in Plastics Sector.
6. The Government should incentivize industry by
1. RBI should ask Banks to Automatically enhance the providing concessional credit, relaxed regulations
credit limit (Working Capital Loan, CC, BC, LC, for exports and tax simplifications (especially
etc.) of MSMEs by 25% without any additional GST) for units focused on exports.
collaterals.
7. In view of unprecedented demand of health and
2. In the present economic scenario during the packaging items during the current crisis
lockdown period, it may not be reasonable for (primarily single use plastics), Government should
Government to ask MSMEs to pay salary/wages to immediately give clarity on removing all the
their employees. The government alone may be barriers such as bans/ restrictions in production
able to provide any relief to the employers and and supply of Single Use Plastics.
employees. As per the last annual accounts, the
ESIC has got a huge reserve to the tune of Rs. 8. At the end of lockdown, there would be huge
91000 crores. Similar, there is a huge fund lying in quantity of plastics protective gears- PPEs, Face
PPF fund. Government should therefore pay salary Masks and many other items that have to be
for MSME workers (for the period of lockdown) discarded. Has the Government thought of
from ESIC and PPF fund lying with the something with respect of safe disposal,
government. collection and supervised incineration to prevent
secondary infection?
3. Benefit in Electricity Bill/ Charges – Defer
th
payment of pending Bills until 30 June, 2020 This had further reference the 3 sub committees being
without delayed payment surcharge. Also waive constituted by Department of Chemicals and
the minimum charges i.e. Demand/ Fixed Charges Petrochemicals on Trade, Logistics and Operations. We
from the Electricity bill for the month of March would like to nominate following persons from AIPMA to
and April 2020. Extend subsidy of Rs. 2/- per unit these sub committees.
on consumption charges from 1.3.2020 to
30.9.2020. 1. Sub committee on Trade Issues: Mr. Jagat Killawala
– President, AIPMA
4. Many companies have entered into forward
contracts against their export order with 2. Sub committee on Logistics : Mr. Deepak Ballani –
respective bank for supply of goods to their Director General, AIPMA
overseas customers. Due to the current situation,
there are chances of delayed shipments or may be 3. Sub committee on Operational Issues: Mr. Hiten
cancellation of orders. In view of the same, we Bheda – Past President, AIPMA
seek extension of time limit for such contracts for
Government should let us know if any guidance is
the further period of three months from their due
dates if orders are not canceled. If orders are required from our Association.
canceled, forward contract may be canceled
without any charges to the industries. This will

APRIL 2020 7 Plastics News