Govt considers industry status for waste management and recycling sector
Subscribe to enjoy similar stories. New Delhi: The government may accord industry status to waste management and recycling businesses, two people aware of the development said, amid a push for circular economy. This has been a long-standing demand of the waste management sector, as an industry status helps businesses get easier access to cheaper bank loans.
"This has been a constant demand by the waste management and recycling sector, and a proposal has been submitted which is under consideration with the government," said one of the officials mentioned above, requesting anonymity. An email query sent to the Union ministry of micro, small, and medium enterprises (MSME) did not elicit a response till press time. Many of the businesses in this sector are MSMEs.
Apart from allowing businesses to secure loans at lower rates, industry status granted by the Centre or state government also entitles these firms to be exempted from some levies, and get benefits such as cheaper power supplies. It assumes importance as India is likely to produce more waste in the coming decades. A report on circular economy by the federal thinktank NITI Aayog indicated that India will generate 165 million tonnes of waste by 2030, rising to 436 million tonnes by 2050.
Waste management is a comprehensive process that includes planning, securing finances, as well as building and operating facilities to collect, recycle and dispose of waste products. Financial institutions are not confident in lending to enterprises in this sector, as they often lack creditworthiness. "It is important to have operating income exceed operating expenditures, including interest on existing debt, to increase the creditworthiness of municipal agencies (which undertake waste
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