PRESIDENTS DESK

 

From the President’s Desk

 

Dear Members,

I hope all of you have started the production after the Unlock.

My discussions with our several members indicate that some of them have reached 50% of the capacity production. Processors producing flexible packaging, medical/ Covid-19 related products have achieved over 80% of the capacity. It is also learnt that the logistics are also near-normal. It is essential that we make concentrated efforts for the accelerated revival of the Plastic Industry and focus on boosting exports.

We have had many meetings with the Department of Chemicals & Petrochemicals. The 2nd Meeting/ Video Conference of Chemicals & Petrochemicals Advisory Forum was held on 25th June, 2020 under the Chairmanship of Hon'ble Minister (Chemicals & Fertilizers). Government of India has set a vision that the Indian Chemicals & Petrochemicals Sector should contribute US $ 200Bn in the US $ 5Tn Indian Economy by 2025. The Government of India is of the view that the Plastic Industry should reduce import dependency and pursue export of plastic products aggressively.

Our Secretary General made a very detailed Presentation in the Meeting held on 25th June 2020 . I am giving below following excerpts from the Minutes of the Meeting received from the Ministry:-

Quote

Sh. Deepak Lawale, Secretary General, Organization of Plastic Processors of India (OPPI) mentioned that Plastic Industry is very labour intensive and by promoting the same, the objectives of creation of jobs in India, Make in India, Aatmanirbhar Bharat are fulfilled. Government has announced stimulus package to revive the economy. It appears many banks are not implementing the revised definitions of MSMEs and are not giving loans to MSMEs as per the revised definition. They need Governments help in the following areas:

  1. Creation of large plastic processing industrial parks in close proximity to sea ports and polymer suppliers with developed infrastructure is the need for promotion of exports. PCPIRs need to be revived by giving incentives to the Production Units setting up their factories in PCPIRs.
     
  2. Labour policies may be made flexible for exports. Also flexibility in working hours need to be provided. Further, Cost of labour should be linked to productivity.
     
  3. At present most of the medium scale units are charged interest @ 12-14% by banks for Term Loans. This makes the export units uncompetitive.
     
  4. Also streamlining the process of export and import would bring down transactional and compliance cost. Delays at Ports, high transportation cost, delays in refund of GST add to the cost of exports. These impediments need to be removed to push exports from India.
     
  5. Continuous high quality power is the pre-requisite for quality product manufacturing. Cost of power should be lowered to increase competitiveness of the segment.
     
  6. Industry should be suitably incentivized to promote exports by providing such incentives which are compatible with WTO guidelines. A zero GST rate for all exports may be implemented.
     
  7. The industry needs to adequately supported to develop research infrastructure, laboratories/ testing facilities for validations relevant to International Standards.
     
  8. India should enter into more Free Trade Agreements (FTAs) to create more opportunities for export. China has got largest number of FTAs with countries globally due to which they have captured markets. India should leverage tensions in international trade relations caused by outbreak of COVID-19 as opportunities to sign more FTAs for creating global demand for Indian products. Import duty on plastic products should be increased to 20% from 10%.This will help “Make in India” policy and Make the country “Aatmanirbhar”.

     
  9. CIPET should introduce courses for entrepreneurs, who want to set up their own plastic processing units. This action will lead to generation of employment, boost exports and help the Government to achieve its objectives – Aatmanirbhar Bharat; Make in India policy and 5 trillion economy by 2025.

     
  10. Higher duty drawback benefits should be given on exports. Technological Upgradation Fund Scheme (TUFS) for plastic processing industry may be provided which will help MSMEs to upgrade their technological and process know how. Support for R & D especially to exporters.

 

A meeting for Scheme for Setting up of Plastic Parks was held on 2nd July 2020 under the Chairmanship of Secretary (C&PC).

The following points were emphasized during the Meeting:-

  • Land should be available on long lease at reasonable rent.
     
  • OPPI is willing to enter into Agreements with the Plastic Park Authority in order to support them in Promotional Activities.
     
  • Power Tariff must be reworked in order to attract the Production Unit in the Plastic Parks.

We have submitted a detailed Representation giving details of the unnecessary imports of Articles of Plastic under various Chapters. The Government is actively working on action plan to reduce unnecessary imports of Articles of Plastic and thereby reduce the import dependency.

Our monthly Plastiscope is undergoing transformation. We have switched to Digital Plastiscope in Web and Flip Book Formats. I appeal to all our members to share this Digital Plastiscope with their management, colleagues, all employees, dealers and distributors as well as customers. This will be a step towards “Empowerment of Employees”.

 

Kindly take care and follow all precautions to break the chain of COVID -19.

 

Stay Safe. Stay Healthy

 

With Best Wishes,

 

Dharmendra Gandhi

President