Page 11 - Plastics News Issue December 2024
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AIPMA AT WORK
roductive 2-hour meeting chaired by FM Support for the Plastic Recycling Sector - In-
Nirmala Sitharaman, joined by MOS Pan- dian Plastic recycling sector is growing at a rapid
Pkaj Choudhary, Finance Secretary M. Na- pace and the EPR mandate has given the indus-
garaju, Secretary Economic Affairs Ajay Seth, try a significant push, India is now recycling 60%
CEA Dr. V. Anantha Nageshwaran, MSME Sec- of its plastic waste. however, the sector is still in
retary C.L. Das & 9 associations. Deliberated on a nascent stage and requires support from the
MSME growth across sectors. AIPMA's recom- government. Reduce GST from 18% to 5% on re-
mendations, presented by spokesperson GC cycled plastic granules only on the conversion
Chairman Mr. Arvind Mehta & supported by the cost of recycled granules. Reduce GST to NIL on
AIPMA President Mr. Manoj R. Shah, were posi- recycling machinery to increase recycling com-
tively received. Pre-budget memorandum high- panies in India. 20% subsidy across India for buy-
lights to follow. Below are the points which were ing capital equipment for recycling.
presented by our GC chairman as proposal to
the ministry – Technological Upgradation Fund - In order to
promote ease of doing business in the country
Change in Tariff Rates – To increase custom and achieve the vision of generating employ-
duty of plastic finished goods to 20%, high tariff ment and promoting exports through "Make in
rates makes the cost of finished goods higher in India" with "Zero effect and Zero defect" in man-
the domestic market. The ID of plastic raw mate- ufacturing. Allocation of Technical Upgradation
rial which is imported under HS codes from 3901- Fund (TUF) around INR 2500 crores for 5 years
3915 shall be decreased to 5%. There should not for the plastic processing sector in line with the
be Anti-Dumping Duty on PVC paste resin, PVC textile sector.
suspension resin, Titanium Dioxide (current de-
creased to 7.5%), LDPE, Plastic processing ma- Plug and Play in Plastic Sector - Plastic process-
chines and other similar products. ing sector, predominantly comprising MSMEs
(around 85%). Its difficult for MSME's to invest
Boosting India’s Finished Products Export - in infrastructure setup. There is a pressing need
Government marketing support to identify and for establishing ready facilities in terms of land
connect with overseas buyers (Marketing sup- and building, power-water-sewage connectivity,
port for USA, Europe and Dubai) and by opening road connectivity, beside other basic things in-
warehouses. The RoDTEP rate which is currently cluding clearances in hand required to start the
on the lower side for most of the finished plastic operation for MSME's,
products be increased to 2%. Need to simplify
export processes, and mechanisms to secure Allocation of separate fund for establishing
export payments for Indian MSME, expansion of ready facilities.
the role of ECGC, and optimization of overseas
warehousing under Market Access Initiatives Long leasing (Initially 20 years and renewal for
(MAI) to benefit small exporters. Plastic industry further 10 years) of ready facilities to MSME's.
needs to be covered under PLI scheme for im- A great step forward—let's hope for the best!
port substitution and to enhance export.
December 2024 PLASTICS NEWS 11
