Output cap imposed by Maharashtra govt hits chemicals’ producers

February 21
22:25 2018

At a time when the government of Maharashtra is trying to attract investors, the chemicals industry here says it plans to shift units to neighbouring states. The reason is a ‘production cap’ imposed by the state’s environment ministry. Thousands of chemical manufacturing units, largely small and medium enterprises (SMEs) and micro SMEs (MSMEs) have cut production by 20-50 per cent. A cap has been set on output of all products and permission is needed for any increase. “There is no flexibility for in the product mix. By the time approval arrives, market sentiment changes, as buyers seek to import. Hence, many producers are looking to shift their factories to alternative destinations — Gujarat is preferred,” said Satish Wagh, chairman, Supriya Lifescience, while announcing Cap India 2018, a three-day seminar scheduled to be held here on March 22-24. This has also affected allied sectors such as paints, pigments and plastics. In addition, the Maharashtra government has announced a ban on sale of plastic bags and packaging material, as also on production of such material, after next month.

This is set to impact millions of skilled and unskilled workers.

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