New Delhi [India], September 17 (ANI): To offer capital subsidies of up to 50 per cent in bioplastic sector on eligible investments over a five-year period is one of the key recommendations made through a recent report by EY and ASSOCHAM titled “Incentivising Bioplastics, a Biopolymer”.
The report recommends fiscal incentives, regulatory changes, and government-backed support for research and development to promote the growth of this environmentally sustainable industry.
It aligns with India’s broader goals under the BioE3 policy, which seeks to promote bio-manufacturing, create a circular economy, and achieve net-zero carbon emissions.
This financial support is essential to help offset the high initial production costs and make bioplastics more economically viable.
The report also suggests reducing GST rates on bioplastic products to 12 per cent, further encouraging businesses to invest in the sector.
State governments could also play a role by introducing sector-specific schemes that offer additional benefits like interest subvention, SGST reimbursement, power rebates, and land subsidies.
These measures are expected to support the establishment of a robust bioplastics manufacturing base in India.
Deepak Sood, Secretary General, ASSOCHAM, said, “The government must play a key role and take firm actions to ensure bioplastics succeed and grow in India. Government-backed fiscal incentives and regulatory policies are paramount in overcoming initial market entry challenges, such as high production costs and mandating their use.”
The report advocates for a strong regulatory framework to support bioplastics, including mandating their use in place of traditional plastics.
It proposes the introduction of Quality Control Orders (QCOs) to ensure bioplastic standards are maintained and suggests imposing import restrictions to protect domestic manufacturers.
A phased approach, similar to the elimination of single-use plastics in 2022, could be adopted to promote the widespread use of bioplastics.
Government-backed research and development, as well as the creation of a “bioplastics cluster,” are also essential elements of the strategy. Such clusters would help foster innovation, encourage industry-academic partnerships, and create jobs.
Bipin Sapra, Tax Partner, EY India said, “The ban of identified single use plastics in 2022 needs to be implemented in full for the creation of a demand for sustainable alternatives such as bioplastics. By allowing grants, subsidies and apt regulatory framework, the Indian government can incentivize businesses to invest in bioplastic production, research and development.”
He added, “These incentives will not only bolster the economic viability of bioplastics but also foster innovation, paving the way for superior and more cost-effective bioplastic products to emerge in the marketplace.”
By investing in advanced bioplastic technologies and infrastructure, the government could facilitate the growth of both large companies and small and medium-sized enterprises (MSMEs) in the sector.
In addition to financial and regulatory measures, the report underscores the importance of raising public awareness about bioplastics.
It calls for educational campaigns and the allocation of funds under the Swachh Bharat Mission to promote the use of bioplastics and support composting initiatives.
By enhancing public understanding, the report aims to drive community engagement in waste segregation and composting efforts, helping India move closer to its sustainability goals. (ANI)
This report is auto-generated from ANI news service. ThePrint holds no responsibility for its content.