Business

Plastic ban: Industry stares at loss of Rs 15,000 crore and 3 lakh jobs

Updated : June 25, 2018 08:41 AM IST

Nearly 2,500 members of the association have left with the no option but to shut shop following the ban, he added and termed the ban as "discriminatory".

Industry insiders have said the job losses from the ban will impact the state's GDP, and also increase banks' bad loans from the plastic sector.

The state-wide plastic ban, including carry-bags and thermocol by the Devendra Fadanvis government, will result in loss of up to Rs 15,000 crore and nearly 3 lakh job, says the plastic manufacturing industry.

"The ban imposed by Maharashtra from Saturday has hit the industry very hard and the plastic industry is staring at a loss of Rs 15,000 crore, leaving nearly 3 lakh people jobless overnight," Plastic Bags Manufacturers Association of India general secretary Neemit Punamiya told PTI.

Nearly 2,500 members of the association have left with the no option but to shut shop following the ban, he added and termed the ban as "discriminatory".

On March 23, the state announced a ban on manufacture, use, sale, distribution and storage of plastic materials such as one-time-use bags, spoons, plates, PET and PETE bottles and thermocol items. The government had given three months time to dispose of the existing stocks, which ended on June 23.

Industry insiders have said the job losses from the ban will impact the state's GDP, and also increase banks' bad loans from the plastic sector.

While retailers across the megapolis have said heavy fines for violating the bank will make them financially unviable and force them to turn away many customers, consumers have complained of inconvenience, and wondered whether the ban makes any sense.

The civic authorities have imposed a fine of Rs 5,000 for the first-time offenders and Rs 10,000 for the second-time offenders. Those who violate the ban for the third time will face a fine of Rs 25,000, along with a three-month imprisonment.