The global movement against plastic pollution has triggered a fundamental shift in materials science and packaging industries. In India, the Plastic Alternatives sector is emerging as a high-potential area for innovation and sustainability. As environmental regulations tighten and consumer preferences lean toward eco-conscious products, businesses exploring biodegradable, reusable, and compostable materials are rapidly gaining traction.
In line with this transition, the Government of Rajasthan, under its MSME Policy 2024, has rolled out an extensive framework of fiscal incentives, infrastructure support, and market facilitation specifically aimed at MSMEs involved in sustainable manufacturing, including plastic alternatives.
Overview of the Plastic Alternatives Industry
Key Products:
- Biodegradable Plastics (PLA, PHA, starch-based)
- Paper and Bagasse-Based Packaging
- Natural Fiber Products (jute, hemp, coir)
- Reusable Cloth or Canvas Bags
- Areca Leaf, Bamboo, and Edible Tableware
Growth Drivers:
- Plastic Waste Management Rules & Single-Use Plastic Ban
- Extended Producer Responsibility (EPR) Compliance
- Corporate ESG and sustainability mandates
- Rising export potential to Europe, North America, and Australia
- Government schemes promoting green entrepreneurship
Rajasthan MSME Policy 2024: Provisions for Plastic Alternatives Sector
The Rajasthan MSME Policy 2024 provides a comprehensive framework of fiscal incentives and enabling infrastructure for sustainable industries. Here's how it empowers new and existing businesses in the plastic alternatives domain.
How the Policy Benefits Entrepreneurs in Plastic Alternatives Business
Lower Startup Costs
- 50% Capital Subsidy (up to ₹40 lakh) for enterprises manufacturing plastic alternatives.
- 75% SGST Reimbursement for 10 years under RIPS 2024.
- Additional 5% subsidy for women, SC/ST, or Tribal Area entrepreneurs.
💡 Example: A ₹60 lakh investment in biodegradable packaging could yield over ₹25 lakh in support.
Affordable & Collateral-Free Financing
- Interest Subsidy:
- 2% (up to ₹5 Cr),
- 1% (₹5–10 Cr),
- 0.5% (₹10–50 Cr) over RIPS base rates.
- 100% CGTMSE Guarantee Fee Reimbursement for 7 years on loans below ₹5 Cr.
Hassle-Free Business Setup
- No approvals or inspections for 5 years under MSME Facilitation Act, 2019.
- Single Window Clearance (SWCS) for 135+ services across 16 departments.
- One Stop Shop mechanism with high-level task forces for time-bound approvals.
Technology, R&D, and Quality Support
- 50% grant (up to ₹5 lakh) for technology/software purchase from IITs, IISc, CSIR, etc.
- Support for cluster-based infrastructure like testing labs and common processing centers.
- Reimbursement up to ₹3 lakh for ISO, BIS, ZED, FSSAI certifications and IPR filings.
Green Manufacturing Incentives
- 50% subsidy (up to ₹1 Cr) on environmental projects like waste management, ETPs.
- 10% subsidy for clean-tech machinery.
- 100% electricity duty exemption for 7 years for captive renewable energy use.
- 50% waiver on consent fee under Green Rating System.
Skill Development & Training
- 50% reimbursement on employee training costs for up to 6 months:
- ₹20,000/month (Micro)
- ₹30,000/month (Small)
- ₹40,000/month (Medium)
Market & Export Support
|
Support Area |
Benefit |
|
Domestic Fairs |
Up to ₹1.12 lakh |
|
International Fairs |
Up to ₹1.5 lakh + airfare |
|
Local Fairs |
₹37,500 |
|
eCommerce Listing |
75% reimbursement (up to ₹50,000) |
|
Software for Digitization |
75% reimbursement (up to ₹50,000) |
|
Export Training |
Free under “Mission Niryatak Bano” |
|
SME Exchange Listing |
₹15 lakh support for IPO listing |
Non-Fiscal & Institutional Support
Ease of Doing Business
- 5-Year NOC-Free Operation under the Rajasthan MSME Facilitation Act, 2019.
- Single Window Clearance System (SWCS) offers over 135 services from 16 departments through a centralized portal.
Institutional & Facilitation Support
- MSME Investment & Facilitation Centers (MIFC) and Development & Facilitation Centers (MDFC) at district and divisional levels.
- District-Level Task Force Committees (DLTFC) and High-Level Task Force Committees (HLTFC) for fast-tracking approvals and incentives.
- State-Level Review Committee (SLRC) for overall policy monitoring and strategic decisions.
Dispute Resolution
- Micro & Small Enterprises Facilitation Council (MSEFC) to handle delayed payment disputes, offering arbitration and settlement support to MSMEs.
Export & Market Linkage Support
- Mission Niryatak Bano to train first-time exporters and help obtain IEC codes.
- District-Level Export Promotion Councils (DLEPCs) to identify and promote district-specific export-worthy products.
- Rajasthan Export Promotion Council (REPC) for trade fair support, international buyer events, and marketing coordination.
A Launchpad for Green Startups
The Rajasthan MSME Policy 2024 positions the state as a sustainable startup hub, particularly in the domains of plastic alternatives, eco-friendly packaging, and bio-based materials. The convergence of regulatory ease, financial incentives, infrastructure, and market access makes Rajasthan an ideal destination to:
- Launch a biodegradable cutlery or packaging startup
- Expand an export-oriented sustainable product line
- Build a cluster-based eco-manufacturing unit
- Digitize and list your green products on global platforms
Final Thoughts
The Plastic Alternatives sector is no longer a niche—it’s the future of responsible business. With the Rajasthan Government's forward-looking MSME Policy 2024, entrepreneurs now have the tools, capital, and environment needed to build viable, scalable, and sustainable ventures.
Whether you're an innovator, a first-time founder, or an established manufacturer looking to pivot to green solutions, this is your opportunity to lead the change.
Don’t wait - leverage these initiatives to scale smarter, compete better, and grow sustainably. Having any query, consult NOW with our Odoo Expert Accounting Team 👇