India Considers Rules to Prevent Plastics Scrap from Entering Country

An India inter-ministerial panel, under the auspices of the India Department of Commerce, is looking to establish a framework for scrap plastics imported into the country’s Specialized Enterprise Zones (SEZ). The rules being discussed are being considered to prevent India from becoming a dumping group for waste from Western countries.

According to The Calcutta Telegraph, the panel plans to come out with strict export obligations for existing units and make it mandatory for them to comply with India’s environmental laws. The panel is expected to make a ruling by the end of July.

While environmental activists argue that these units should not continue their operations on the grounds of environment and safety hazards, SEZ units maintain that besides value addition, the processing of waste provides significant employment opportunities. The finished products are sold in the domestic market after the payment of full duty.

“Sales in DTA (domestic tariff area) can be gradually reduced and the units should gradually increase physical exports to 50 percent of their total turnover in the fifth year,” the draft policy notes.

Businesses interested in setting up new plastic recycling units in Special Economic Zones (SEZs) would have to invest a minimum of Rs 1 crore (US$210,000) in plant and machinery and export 80 percent of the turnover by the fifth year of their operations.

"The quantum of sale in the DTA can be gradually reduced...and they (units) should gradually increase physical exports to the level of 50 percent of their total turnover in the 5th year," the draft policy for setting up of units for recycling of plastics in SEZs states.

The Environment Ministry has apprehensions that certain export oriented units and units in SEZs handling wastes were operating without the mandatory consent and authorization.

However, SEZ units claim they comply with the law. The proposal also seeks changes in certain European regulations to ease imports of plastic wastes.

European countries are the largest exporters of the waste to India, which along with China is the primary recycler of plastic waste.

 Update -- (The ruling board has decided to defer a decision on the plastics issue. The Commerce Secretary says that a decision on plastic recycling will be taken up at the Commerce Department's next meeting.)