Mumbai, Mar 20 (KNN) With the government imposing strict measures banning plastic in the state, the Micro, Small and Medium Enterprises (MSMEs) involved in the sector fear rising NPAs due to the immediate ban imposed on plastic.

Talking to KNN, Rakesh Surana, Vice President of Vidarbha Plastic Industries Association (VIPA) said that while the move comes as a favourable one considering the larger concern for environment, there could have been a systematic approach to the ban.

Focus on Recycling

Surana said instead of imposing ban and implementing punitive measures against the businesses that use plastic, the government should have focussed more on putting up recycling plants.

By doing that, on one hand the uncalled disruption in the business of plastic making MSMEs could be delayed and at the same time the plastic that poses harm to environment could have been taken care.

Also the recycling plants would help generate direct as well as indirect employment opportunities in the state, he added

Rising NPAs and Unemployment 

There are entrepreneurs who have recently set their units unaware of the upcoming ban, now with a restriction imposed, there is likely to be a rise in bad loans for the sector.

“One of my friend recently opened up a unit investing 5 crores of which a major chunk is obtained as loan from the bank, now the government says plastic is ban, how will he unit owner repay the loans”, he said.

1-2 Year time period

A good way of going about could be to give the industries 1-2 years’ time period to either shift their business to other states or to migrate into some other sector, Surana lamented.

“An overnight approach is not the best thing to do to any industry”, he added.

Checks and balances

While the government has imposed a ban in state, it should also keep a check on the material flowing in from other states where there is no ban, he said. If the ban is just limited on plastic within the state and it coming from other states is permitted, the local industries are the ones who will further feel the heat of ban, he added. (KNN/DA)