A report by EY–ASSOCHAM proposed for a national policy to position India as a leading hub for bioplastics manufacturing. The report, titled Incentivising Bioplastics, a Biopolymer: A Move Towards a Circular and Sustainable Economy, suggests that government intervention, regulatory adjustments, public education campaigns, and agricultural resources should be leveraged to make the bioplastics industry more sustainable.
To promote the sector’s growth, the report proposes capital subsidies covering up to fifty percent of eligible investments over five years. It also advocates for phased bioplastics adoption incentives and recommends lowering GST rates on these materials to twelve percent to offset initial costs and encourage broader use.
State governments, according to the report, should introduce sector-specific schemes offering various fiscal benefits, including a fifty percent capital subsidy, seven percent interest subvention for seven years, SGST reimbursement on investments for fourteen years, along with rebates on power and land subsidies. The schemes could be aligned with existing policies or customized to attract large investments.
For regulatory reform, the report recommends a gradual approach, similar to the campaign against single-use plastics, with bioplastics included under India’s plastic pact. It also suggests that certain industries should face restrictions on single-use plastics and be mandated to switch to bioplastic alternatives.
The report highlights the importance of bio-based plastics – polymers made from renewable biomass like sugarcane, starch, plant oils, and cellulose – as viable substitutes for traditional plastics. A comprehensive national policy for bioplastics is deemed essential to strengthen domestic production, application, and recycling capabilities.
The policy could also include provisions for composting and waste segregation at the municipal level, fostering innovation and investment, and making India more competitive globally. As reported by thehindubusinessline.com, by 2040, the report envisions replacing fifty percent of single-use plastics with compostable alternatives to significantly reduce environmental impact.
