Chloe Zhang
India has implemented a Plastic Parks Scheme to address the issues of plastic waste and to enhance the competitiveness of the domestic downstream plastic processing industry. The Scheme involves the establishment of Plastic Parks, which are designed to consolidate the capacities of the fragmented plastics industry through cluster development. These parks will provide state-of-the-art infrastructure and facilities to support the plastic sector in moving up the value chain and contributing more effectively to the economy. With India's commitment to phasing out single-use plastic by 2022, the Plastic Parks Scheme becomes a crucial initiative in promoting recycling and sustainable practices in the industry.
| Characteristics | Values |
|---|---|
| Aim of the Plastic Parks Scheme | To increase competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry |
| Plastic Park setup period | Three years from the date of final approval |
| Setup by | A Special Purpose Vehicle (SPV), a distinct legal entity formed by the State Government or its agency |
| India's commitment | Phase out single-use plastic by 2022 |
| Plasticulture promotion | Use of plastics in agriculture, horticulture, water management, food grains storage and related areas |
| Recycling | Only 60% of plastic waste in India gets recycled |
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What You'll Learn
- The Indian Plastics industry is fragmented, dominated by small units
- The Plastic Parks Scheme aims to consolidate capacities through cluster development
- The Central Institute of Petrochemicals Engineering and Technology (CIPET) provides diploma programmes in Plastics Engineering
- India has committed to phasing out single-use plastic by 2022
- The major challenge is segregating and re-aggregating plastic waste streams
The Indian Plastics industry is fragmented, dominated by small units
India's plastic industry is highly fragmented and dominated by small-sized players. The industry employs nearly 4 million people, and the numbers are set to grow. It is one of the most profitable industries in the country, and the Indian government aims to benefit from economies of scale through cluster development to boost production and exports, thereby contributing to the economy and employment generation.
The Indian plastic industry has shown consistent growth of 3.4% annually and is expected to maintain this growth rate until 2028. By 2025, the Indian Chemicals and Petrochemical Industry, of which plastics are a part, is projected to attract investments worth Rs. 8,00,000 crores. The industry's growth is fuelled by innovation and the government's ambition of Atmanirbhar Bharat through the Make-in-India initiative. However, the current Indian plastic product manufacturing companies lack investment in market research and quality research and development (R&D) to develop high-quality international standard products.
The Indian plastic industry is characterised by a large number of small and medium-sized enterprises (SMEs). According to the Indian Brand Equity Foundation (IBEF), around 85-90% of the processing units are small and medium-sized enterprises. The industry is further fragmented by the presence of numerous unorganised units engaged in plastic recycling. The recycling rates in India are unclear due to a lack of transparency and inconsistent assessments, with estimates ranging from 30% to 70%.
The structure of the Indian Plastics Industry contributes to its fragmented nature. While there are a few dominant polymer and equipment manufacturers, the plastics processing sector comprises 30,000 units, and plastic recycling is undertaken by 4,000 unorganised and 3,000 organised units. The industry also includes various local and regional plastic manufacturers' associations that support production, manufacture, and processing units and collaborate with the government on policymaking.
To promote responsible recycling across all Indian industries, the Material Recycling Association of India (MRAI) brings together over 20,000 small, medium, and large enterprises, along with trade associations. With the right investments and ideas, the Indian plastic product manufacturing industry can explore significant growth opportunities in both domestic and international markets.
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The Plastic Parks Scheme aims to consolidate capacities through cluster development
India's plastics industry is large but fragmented, with small and medium-sized enterprises dominating the market. The Plastic Parks Scheme aims to consolidate capacities through cluster development. This scheme is designed to synergize and strengthen the industry by creating a supportive ecosystem with state-of-the-art infrastructure and shared facilities. This approach will enable the industry to move up the value chain and contribute more effectively to India's economy.
The Plastic Parks Scheme is a strategic initiative to enhance the competitiveness and value addition within the domestic downstream plastic processing industry. By adopting modern research and development-led measures, the scheme aims to increase polymer absorption capacity. This initiative is particularly relevant given India's commitment to phasing out single-use plastic by 2022 and the need to promote sustainable practices, such as plasticulture (using plastics in agriculture, horticulture, water management, and food grain storage).
The scheme will be implemented through a Special Purpose Vehicle (SPV), which will oversee the establishment of Plastic Parks. Each park will be set up within 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), a premier government institute in India, has already taken steps to support this initiative by establishing a Centre for Skilling and Technical Support (CSTS) at Vijayawada in Andhra Pradesh. This centre offers diploma programmes and skill development training in Plastics Engineering and Technology, ensuring a skilled workforce to support the industry's growth.
The Plastic Parks Scheme is a comprehensive approach to addressing the challenges faced by India's plastic sector. By consolidating capacities, the scheme aims to increase investment, production, and exports in the plastics sector while also promoting recycling and sustainable practices. This initiative is a step towards harnessing the full potential of India's plastic industry and ensuring its contribution to the country's economic growth. With the Plastic Parks Scheme, India is taking proactive measures to address the environmental concerns associated with plastic waste and foster a more sustainable future for its people.
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The Central Institute of Petrochemicals Engineering and Technology (CIPET) provides diploma programmes in Plastics Engineering
The Central Institute of Petrochemicals Engineering and Technology (CIPET), headquartered in Chennai, offers diploma programmes in Plastics Engineering. CIPET is an autonomous institute established in 1968 under the Societies Registration Act, 1860. It functions under the Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers, Government of India. The institute has been expanding its activities by establishing centres across India and introducing new programmes to meet industry requirements. As of 2022, CIPET has 45 centres spread across the country, including 8 Institute of Petrochemicals Technology (IPT), 31 Centres for Skilling and Technical Support (CSTS), 3 Schools for Advanced Research in Polymers (SARP), and 3 Sub-Centres.
CIPET offers a range of diploma programmes, including a Diploma in Plastic Technology/Plastics Mould Technology (DPMT). This 3-year course is open to candidates who have passed Class 10. The semester fee for this course is Rs 20,000. In addition, CIPET offers a Post-Graduate Diploma in Plastic Processing and Testing (PGD-PPT), which is a 2-year programme open to graduates in Science subjects. This course also has a semester fee of Rs 20,000. Applicants awaiting their final year exam results are also eligible to apply.
The Kochi centre of CIPET, located at Edayar Road, Near Premier Junction, Kalamassery – 683501, offers two programmes in Plastics Technology/Plastics Mould Technology. The admission fee for CIPET is Rs 500, with a reduced fee of Rs 250 for applicants from Scheduled Caste/Tribe communities. Interested candidates can visit the official website, cipet.gov.in, for detailed information about the application process, eligibility criteria, and entrance tests.
CIPET plays a crucial role in supporting the growth of the petrochemicals and allied industries in India. The institute is ISO-certified and has NABL and NABCB-accredited laboratories. It is devoted to Skill Development, Technology support, Academic & Research (STAR) activities, and the consolidation of the domestic downstream plastic processing industry. The Department of Chemicals and Petrochemicals has implemented a scheme to support the establishment of Plastic Parks with state-of-the-art infrastructure to increase investment, production, and export in the plastics sector.
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India has committed to phasing out single-use plastic by 2022
India has a large plastics industry, but it is fragmented, with small and medium-sized units dominating the market. The Indian government has committed to phasing out single-use plastic by 2022, and while some progress has been made, challenges persist. In 2018, India pledged to eliminate single-use plastics by 2022, and this ambitious resolution was praised by the then UN Environment Chief, Erik Solheim. However, at the United Nations Environment Assembly (UNEA) in Nairobi in 2019, the resolution was watered down, and the timeline was removed, with only a commitment to a "reduction by 2030". Despite this, India remains committed to phasing out single-use plastics and is taking steps to achieve this goal.
India's street food sector, for example, relies heavily on single-use plastics, and a reuse system could offer a compelling business case with reduced costs and waste. The Extended Producer Responsibility (EPR) policy, introduced in 2022, covers the remaining single-use plastic items, mostly packaging products, with target collection and recycling specifications. However, some non-banned single-use plastics, such as multilayered packaging, are non-recyclable. India ranked 3rd globally in single-use plastic waste contribution, with 5.5 million tonnes, and 94th in per capita waste, at 4 kg per person per year.
The Plastic Parks Scheme aims to address these issues by providing a consolidated ecosystem with state-of-the-art infrastructure and enabling common facilities to assist the plastic sector in moving up the value chain and contributing more effectively to the economy. The Central Institute of Petrochemicals Engineering and Technology (CIPET), a premier government institute, has established a Centre for Skilling and Technical Support (CSTS) at Vijayawada in Andhra Pradesh, offering diploma and skill development programmes in Plastics Engineering and Technology. This centre will help increase the competitiveness and polymer absorption capacity of the domestic downstream plastic processing industry through modern, research and development-led measures.
Additionally, India has been taking steps to address the socio-economic implications of phasing out single-use plastics and provide support for affected individuals and communities. The Central Pollution Control Board (CPCB) and the Ministry of Environment, Forest and Climate Change (MOEFCC) have been working to improve reporting and transparency on environmental compliance. They have mandated local governments and states to provide quarterly updates on their websites, including information on environmental compensation, units shut, and fines imposed. States are also required to submit enforcement reports to the CPCB fortnightly, ensuring that data from private players and state authorities is included in the Annual Report, as per the Plastic Waste Management Rules, 2016.
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The major challenge is segregating and re-aggregating plastic waste streams
The Indian government is implementing a scheme to support the establishment of Plastic Parks with state-of-the-art infrastructure to consolidate the capacities of the domestic downstream plastic processing industry. However, the major challenge remains the effective segregation and management of plastic waste streams.
Segregating and re-aggregating plastic waste streams is a complex task that requires community engagement, adequate infrastructure, and trained professionals. Source segregation, mandated by local authorities, plays a crucial role in improving waste management economics by reducing upstream sorting costs and ensuring that downstream recyclers receive clean feedstock. However, the primary challenges include a lack of public awareness about sorting and the absence of adequate collection infrastructure to support segregated waste pickup.
To address these challenges, several approaches can be employed. Providing incentives for households to segregate waste, such as rewards or reduced charges, can encourage participation. Local authorities can also enforce penalties for non-compliance, as seen in Bangalore, India, where fines were imposed, resulting in a 35% segregation rate within a year. Additionally, rotating the frequency of collection for different waste streams based on volumes, as practiced in Goa, India, can optimize waste management operations.
Effective segregation requires community action and trained collectors. Municipalities should implement separate collection systems for different waste streams, such as dry and wet waste, to ensure proper segregation. Furthermore, improving sorting and washing technologies, as seen in European countries, enables the recycling of mixed plastics, enhancing resource efficiency and diverting waste from landfills.
Overall, addressing the challenges of segregating and re-aggregating plastic waste streams requires a combination of community engagement, incentives, penalties, improved infrastructure, and technological advancements in sorting and recycling processes. By implementing these measures, India can improve its plastic waste management and work towards a more sustainable future.
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Frequently asked questions
There is currently only one plastic park in India, located in Andhra Pradesh.
Plastic parks are part of a scheme formulated to consolidate the capacities of India's fragmented plastics industry through cluster development. The aim is to increase competitiveness, polymer absorption capacity, and value addition in the domestic downstream plastic processing industry.
A Special Purpose Vehicle (SPV) has three years from the date of final approval to complete the setup of a plastic park.
India has committed to phasing out single-use plastics by 2022 and promoting plasticulture, i.e., the use of plastics in agriculture, horticulture, water management, and food grain storage.
