In the wake of recent updates on plastic packaging obligations under the notification dated March 14, 2024, a significant shift has occurred. According to the new guidelines, producers of plastic packaging, except for micro and small enterprises, are now obligated to meet targets set under these rules. However, this update has caused confusion, leaving small and micro enterprises uncertain about their responsibilities.
Previously, it was widely understood that small and micro enterprises, as defined under the Micro, Small, and Medium Enterprises Development Act, 2006 (27 of 2006), were exempt from these obligations. This shift in policy has created a conundrum, particularly because, while the amendment seems to shift the responsibility, no such changes are reflected on the EPR portal. This has led to increased confusion as to whether the obligations will apply starting from FY 2023-24 or FY 2024-25.
Lack of Clarity from CPCB
The Central Pollution Control Board (CPCB) has yet to provide clear guidance on whether micro and small enterprises are exempt from obligations for the financial year (FY) 2023-24. Despite multiple attempts by stakeholders—through emails, calls, meetings, and support tickets—to seek clarification, no official communication has been provided. As a result, several assumptions have emerged:
- Only FY 2023-24 Obligations: Some believe that small and micro enterprises may be exempt only for FY 2023-24 since the notification was issued toward the end of this financial year.
- Registration Timeline: Others assume that companies registered before FY 2023-24 may still need to fulfill their obligations, leading to uncertainty in compliance.
- EC will be waived off: Some speculate that EC will be levied initially but later if micro or small enterprises provide proof of their status, their EC could be waived for this period.
In this atmosphere of uncertainty, small and micro enterprises find themselves in limbo, as official confirmation from the CPCB remains absent.
Current Status
For now, it seems evident that small and micro enterprises are not required to meet their plastic packaging obligations. However, the lack of official clarity poses risks for businesses trying to ensure compliance. If and when the target obligations shift away from micro and small enterprises, questions remain about who will bear responsibility and when the change will take effect.
Moreover, there is still no conclusion on which stakeholder will be obligated to take responsibility for these targets on the portal. Until formal communication is provided by CPCB, small and micro enterprises remain uncertain about their compliance duties for both FY 2023-24 and beyond.
Until formal communication is provided by CPCB, small and micro enterprises should:
Until CPCB provides formal clarification, micro and small enterprises should take the following steps to safeguard themselves:
- Stay Updated: Continuously monitor any updates from CPCB or other relevant authorities.
- Consult Trusted Sources: Stay connected with reliable sources and industry experts to navigate this confusion.
- Maintain Records: Keep detailed records of all correspondence with CPCB, including emails and meeting notes, as a safeguard against potential future liabilities.
The lack of clear guidance from CPCB on plastic packaging obligations has left small and micro enterprises in a state of uncertainty, complicating their compliance efforts. As these businesses await official clarification, it is essential to remain vigilant and proactive to avoid any unintended non-compliance.