Indian government tightens restrictions on plastic scrap

Archiv – Towards the end of last year, the Indian government announced plans to bar the import of plastic scrap and waste by export-oriented units (EOUs). The decision follows concern over the dumping in developing countries of significant volumes of plastics scrap deemed to harbour toxic contaminants.Towards the end of last year, the Indian government announced plans to bar the import of plastic scrap and waste by export-oriented units (EOUs). The decision follows concern over the dumping in developing countries of significant volumes of plastics scrap deemed to harbour toxic contaminants.
According to press reports, the issue came under scrutiny when a leading recycling company – Poly-Beek Kunststoffe of Germany – applied for government approval to invest in India’s Amber Waste Recycling Company (AWRC). The Department of Chemicals and Petrochemicals refused to support the proposal as the Export Promotion Board had earlier taken a policy decision that no new unit would be set up, and that the import of plastic scrap would not be permitted even for EOUs.
According to the Indian government, most plastic waste/scrap is ’post-consumer waste’€™ containing contaminants which may be toxic. The Foreign Investment Promotion Board (FIPB) has said that the department should take up with the Ministry of Commerce the matter of prohibiting imports of plastic waste/scrap for EOUs.
While allowing the German company to invest in AWRC, the FIPB has insisted that the company cannot import plastic waste/scrap but must source its material locally. Poly-Beek Kunststoffe plans to invest ‘‚¬ 800 000 in the Indian company, which will be engaged in collecting, sorting, trading and recycling all kinds of scrap, and in manufacturing goods from it. Proposals entail 100% foreign equity involvement; the approval of the FIPB was sought even though 100% direct foreign investment is allowed in EOUs engaged in manufacturing.