Cut GST on Plastics, Industry urges the Govt

The state will release a portion of incentives to industrial units
from December: Jayesh Rajan, Principal Secretary
HIPLEX, the Central and South India’s largest Plastics Show will have an
exclusive pavilion for recycling units and startups working in that space
Hyderabad, July 18, 2023…..Telangana and Andhra Plastics Manufacturers Association,
TAAPMA, the 54 years old, leading trade association, established in 1969, representing 90% of
Industry turnover of the Plastics Industry from the state of Telangana and Andhra Pradesh
urged Telangana State Government to reduce GST on Plastics from the current 18% to 12%, Mr
Anil Reddy Vennum, Vice President South of All India Plastics Manufacturers Association
(AIPMA) addressing a curtain raiser event HIPLEX, the South and Central India’s biggest Plastics
Expo, to be held at Hitex in August, the plastic industry veteran in the city urged Mr Jayesh
Ranjan, Principal Secretary, Government of Telangana, in a function held at ITC Kakatiya in the
on Monday night.
Anil Reddy maintained that the plastic industry is subjected to a lot of stress for many reasons.
18% GST levied is a big blow to the industry. Our industry runs on very thin margins due to a
highly competitive market. There are many micro, small and medium enterprises in this sector.
The high rate of GST is a heavy blow he said. The plastic industry serves daily needs like the
packaging of food products, household articles, lunch, tiffin, and pencil boxes. Most plastic
processors are MSME units. The reduction in GST to 12% helps small players, Anil Reddy said.
In response to his request, Mr Jayesh Ranjan the Chief Guest said that he would take up the
matter with the State Finance Minister Mr Harish Rao, who is also the GST Council Member.
Mr Reddy also urged that the industry needs a second plastics park. The park at Thummalur is
fully sold out and only large companies could afford to set up units there due to steep land
prices. We need another park to facilitate micro, small, mid-sized companies. Jayesh Ranjan,
Principal Secretary and E. Venkat Narsimha Reddy, VC & MD TSIIC who were present in the
meeting responded that the demand could be considered as a good pocket of land can be
allotted at Zaheerabad. If need be TAAPMA could be given the sole responsibility of allocating
land to units.

Mr Jayesh Ranjan maintained that the land pocket at Zaheerabad could be the best bet as the
land prices would be affordable. 80% of the plastic industry is located in and around
Hyderabad. Any plastic park in and around Hyderabad could be a costly affair and may not be
affordable to many small units.
Speaking further, Mr Jayesh Ranjana added that the Telangana government is committed to
sustainable development and promotion of the reusable plastics industry. This will also help
improve the reputation of the plastic industry. Though we use plastics day in and day and can’t
imagine life without them the mental block of the public is different. Though there are 10,000
plastic units in the state, many seem to be out of TAAPMA for reasons best known to them and
these do not follow regulations and damage the reputation of the industry. It is your duty to
get them into your fold. Do some deep analysis, he said.
Also responding to the long pending demand for the disbursal of industry incentives to plastic
units, Mr Ranjan said, the department was aware of it and will start disbursing from December.
He ruled out that seniority was bypassed in favoring some companies disbursing incentives. If
at all any were done like that they were done for a valid reason. It must have happened on the
recommendation of a government body that keeps vigil on the well-being of the industry and
reports to the government to help to prevent their closure. Otherwise, we don’t go against
seniority in disbursing the incentives, he emphasized.
Mr Ranajan said that he must have visited HITEX umpteen a number of times visiting
exhibitions. But, never knew that all the halls were sold out and two more hangers are being
put up for HIPLEX. The officer hoped that the large number of participants of 400 plus
exhibitors and 50,000 visitors to the show will help in getting new investments into the state.
He asked the plastic industry to be the brand ambassador for the Government of Telangana in
attracting investments into the same.
The Senior Bureaucrat asked the plastics industry to work in tandem with the Research and
Innovation Circle of Hyderabad (RICH), the nodal agency for Hyderabad Science & Technology
(S&T) Cluster, T-Hub, T-Works and National Centre for Additive Manufacturing, which has its
state-of-the-art facility at the Technology Development Centre at Osmania University
Mr. Meela Jayadev, Guest of Honour at the event urged the government to promote industries
in districts, which have a lot of potential. It works well both for local entrepreneurs and the
government. 100-acre land pockets can be allocated to each district. These can create more
jobs for rural youth, who instead of seeking jobs, will start creating and providing jobs. His
suggestion was well taken by both the government officers Jayesh Ranajan and Narasimha
Reddy. We have a sufficient land bank and it is up to the industry to rise to the occasion, they
responded.

K. Padmaja Reddy, President of All India Flat Tape Manufacturers Association said as of now
there is no cheaper alternative to plastics. Even if it is available, it is a costly affair. And the best
way forward is circularity (technical, and environmental systems that aim to eliminate waste
and maximise the reuse of resources) and sustainability so that our planet is livable.
Vimalesh Gupta, President of TAAPMA said HIPLEX, international Plastic Expo 2023 is South and
Central India’s biggest expo will be held at Hitex for four days in August from 4th to 7th August

2023. It will be Spread over 20,000 sq. meters, and 400 exhibitors from across the world will be
      showcasing their products. Specialty Chemicals and Master Batches. These exhibitors
      comprised Process Machinery, Printing; Packaging, Raw Materials, Moulds; Die, Post Processing
      Equipment, Quality Testing Equipment, and Finished Products.
      Vimalesh maintained that plastics are the most utility material. The Plastic landscape is a multi-
      billion US-dollar industry.
       
      It will have an exclusive pavilion for recycling and startups working in this space, informed BL
      Bhandari, Chairman of HIPLEX. About 50,000 visitors are expected from across India. The
      exhibition is back after a gap of 4 years.