Plastic ban chokes Maharashtra’s MSME industry

Mumbai: The Maharashtra government has gone ahead with plastic ban (of some items) leaving the plastic industry in a fix. Now, the plastic industry is urging the government to come up with an alternative rather than imposing a ban as many players in the plastic industry are micro, small and medium enterprises, who have borrowed from banks.

The All Indian Plastics Manufacturers’ Association (AIPMA) claimed that post the ban about 2,150 industrial units will have to shut shops. The association stated this means businesses will fail and there will be increase in default cases in loan payments. According to the data of Plastic Bag Manufacturers’ Association of India’ (PBMAI), it is estimated that a total of Rs 3,800 crore is invested in plant and machinery in Maharashtra. Further, the borrowings from banks, receivables and outstanding in the market exceed Rs 11,000 crores as of today, stated Neemit Punamiya, General Secretary of PBMAI. A report states that livelihood of around 80,000 people will be impacted.

Adding to it, past president of the AIPMA said that plastic manufacturers are small players and are not large lobbies. “So, the government without consulting the stakeholders decided to ban plastic bags, pet bottles and other disposable plastic items in the state.” Overall plastic industry caters to 35 per cent of Maharashtra’s GDP.

For many years, various authorities have been pointing finger at plastic as the reason for floods in Mumbai city. Defying this claim, past president of AIPMA, Jayesh K Rambhia, this statement made by various government authorities are baseless. “There was no report or study done on this then. Plastic was not the reason but debris coming from construction was the reason for the Mumbai floods.”

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While AIPMA is asking to lift the ban, PBMAI has sought a seven-year moratorium period to get back what they have invested, before they exit the industry. Punamiya revealed post the introduction of charges on plastic bags anyway the demand had dropped but now the ban is the last nail. “For the past few years, due to demonetisation and GST, the industry was already struggling.”

AIPMA suggested the government to set-up recycle units in every ward. So, that the plastic industry can use recycled plastic, stated Maharashtra Plastic Manufacturers Association, president, Ravi Jashnani. But he stated that government has not considered this option as this would mean land allotment by local bodies. There is an NGO in Pune that is segregating plastic to recycle it and it has worked, revealed Jashnani.

Apart from Maharashtra, there are other 17 states in the country that have imposed the ban but it has not been implemented fully or monitored or no one is punished for using banned products.