India approves 10 plastic parks to boost waste management and drive circular economy

The Government of India has approved 10 plastic parks to consolidate and synergize efforts in managing used plastic waste while promoting downstream processing facilities across the country. Spread across various states, these plastic parks aim to attract increased investment, boost production and exports in the sector, and generate employment opportunities. A plastic park is an industrial zone specifically designed to support plastic-related businesses and industries. These parks also focus on achieving environmentally sustainable growth through waste management and recycling initiatives.

The Department of Chemicals and Petrochemicals is implementing the scheme for setting up plastic parks under the banner of the ‘New Scheme of Petrochemicals.’ This initiative aims to establish need-based downstream processing facilities equipped with state-of-the-art infrastructure. The scheme facilitates common facilities using a cluster development approach to strengthen the capacities of the domestic downstream plastic processing industry.

The scheme is expected to drive increased investment, production, and exports in the sector while generating employment opportunities. Under this scheme, the Government of India provides grant funding of up to 50 percent of the project cost, subject to a ceiling of ₹40 crore per project. Plastic parks have emerged as an integral part of India’s strategy for managing plastic waste, promoting recycling, and supporting the chemical industry.

Well positioning
The World Bank, in its 2022 report, positions India as the 12th largest exporter of plastics globally. India’s plastic exports have grown exponentially from USD 8.2 billion in the calendar year 2014 to USD 27 billion in the calendar year 2022. This growth is a result of the government’s consistent efforts to promote the production and export of plastics, including initiatives like setting up plastic parks.

The Indian plastics industry is large but highly fragmented, with dominance by tiny, small, and medium enterprises, which limits its capacity to fully capitalize on this opportunity. To address this, the Department of Chemicals & Petrochemicals formulated a scheme to synergize and consolidate capacities through a cluster development approach, aiming to enhance India’s plastic production and export capabilities.

The major objectives of this scheme include:
Increasing Competitiveness: Enhancing the polymer absorption capacity and value addition in the domestic downstream plastic processing industry through the adoption of modern, research-and-development-led measures.
Attracting Investments: Encouraging investments in the sector by expanding production capacities, creating quality infrastructure, and providing other facilitations to ensure value addition and boost exports.
Achieving Sustainable Growth: Promoting environmentally sustainable growth through innovative methods of waste management, recycling, and related initiatives.
Adopting a Cluster Development Approach: Leveraging the benefits of resource optimization and economies of scale to achieve the aforementioned objectives.

Source: Ministry of Chemicals and Fertilizers, Government of India

The process
For the purpose of setting up plastic parks, the Department of Chemicals and Petrochemicals invites preliminary proposals from state governments, highlighting the proposed location, financial details, broad cost estimates, etc. Following in-principle approval from the Scheme Steering Committee, the state implementing agency is required to submit a Detailed Project Report (DPR) to the Department. The DPR is evaluated, and final approval is granted by the Scheme Steering Committee based on the viability of the proposed project.

The government provides grants-in-aid for establishing plastic parks. The implementation of these projects, as well as the process of populating them with industrial units, is largely managed by Special Purpose Vehicles (SPVs) set up by the state government, the State Industrial Development Corporation, or their agencies. To encourage private sector participation, state governments have undertaken several initiatives, including conducting awareness and sensitization programs for the industry, offering plots at competitive rates, providing tax incentives, etc.

Under the scheme, common infrastructure is provided to ensure the sustainability and eco-friendliness of industrial units. This includes facilities such as effluent treatment plants, solid/hazardous waste management systems, plastic recycling units, and incinerators. Some of the plastic parks have also established in-house recycling sheds for processing plastic waste.

The Extended Producer Responsibility (EPR) regulations for plastic packaging mandate targets for minimum levels of reuse, recycling, and the incorporation of recycled content. These regulations ensure accountability for waste collection, recycling, and reuse. Additionally, certain single-use plastics have been banned, with an emphasis on reducing plastic waste. The regulations also mandate the use of a minimum amount of recycled material in packaging products.

Innovations
Globally, innovations such as chemical recycling, advanced sorting systems, and bioplastics are revolutionizing plastic recycling. These advancements enable the recycling of a wider range of plastics, improve sorting accuracy, and offer sustainable alternatives. The Chemicals and Petrochemicals Manufacturers’ Association (CPMA) estimates that the global chemical recycling of plastics market will grow at a compound annual growth rate (CAGR) of 5.1 percent, from USD 13.15 billion in the calendar year 2023 to USD 18.39 billion in the calendar year 2030.

Polyethylene terephthalate (PET) is the most commonly recycled type of plastic, accounting for 55 percent of global plastic recycling, while High-Density Polyethylene (HDPE) accounts for another 32.9 percent. India has the highest plastic recycling rate in the world, reportedly recycling as much as 60 percent of its plastic waste and 90 percent of its PET waste. South Africa, the Netherlands, South Korea, Norway, and Spain follow closely behind. South Korea aims to increase its recycling rate to 70 percent by 2030. Globally, the average plastic recycling rate is just 18 percent.

Enforcing rules
India’s recycling rate continues to grow, driven by efforts to develop efficient technologies, spearhead the implementation of Plastic Waste Management Rules, and improve overall waste management practices. The Plastic Waste Management Rules, 2016, established a statutory framework for managing plastic waste in an environmentally sound manner across India. Recognizing the detrimental impact of single-use plastic items on terrestrial, aquatic, and marine ecosystems due to their high littering potential, the Ministry introduced the Plastic Waste Management Amendment Rules, 2021.

These amended rules, notified on August 12, 2021, banned specific single-use plastic items deemed to have low utility and high littering potential, effective from July 1, 2022. Furthermore, to enhance the management of plastic packaging, the Ministry of Environment, Forest, and Climate Change issued guidelines on Extended Producer Responsibility (EPR) for plastic packaging. These guidelines have provided a significant boost to the recycling segment.

Several categories of plastic packaging are covered under Extended Producer Responsibility (EPR) to ensure that plastic packaging, which accounts for 35-40 percent of plastics produced, is responsibly disposed of. The government has also introduced several amendments, including the mandatory issuance of QR codes, mandatory registration, and annual filing of returns under the Plastic Waste Management Rules to encourage plastic waste recycling for a cleaner environment and a better future.

India has a substantial installed capacity for processing plastic scrap, with 2,309 recycling units operating across the country. These units have a total installed capacity of 4.78 million tonnes per annum (tpa). However, the recycling rate remains relatively low at 8 percent. Polyolefins (PP, PE, HDPE, LDPE) are the most widely recycled plastics, followed by PET. If current practices continue, India’s plastic waste recycling capacity could increase by 11 percent, rising from the current 24.1 million tonnes per annum to 70.5 million tonnes per annum by 2035.


DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com