**Executive Summary**
This document addresses a question raised in Lok Sabha concerning support mechanisms for Small and Medium Enterprises (SMEs) in the chemical sector, focusing on Hazardous Waste Rules, circular economy standards, and implementation status, specifically in states like Chhattisgarh. It outlines the measures taken to promote a circular economy and sustainable development within the sector, and initiatives to reduce compliance costs, boost R&D, and integrate schemes like MSE-SPICE and PLI. The measures aim to benefit stakeholders and contribute to the sector's growth target of $400-450 billion by 2030.
**Key Points / Main Content**
* **Hazardous Waste Management:**
* The Ministry of Environment, Forest & Climate Change (MoEF&CC) has notified Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 (HOWM Rules, 2016) under the Environment (Protection) Act, 1986.
* The Rules promote the adoption of waste management hierarchy steps, including prevention, minimization, reuse, recycling, recovery, utilization (including co-processing), and safe disposal.
* Disposal must be carried out with authorization from State Pollution Control Boards/Committees (SPCBs/PCCs).
* The Ministry has developed 127 Standard Operating Procedures (SoPs) for utilizing various hazardous waste categories.
* **Implementation in Chhattisgarh:**
* As of FY 2023-24, Chhattisgarh has 587 hazardous waste generating units, 36 recyclers, 40 authorized utilizers, and 175 captive utilizers.
* Around 2,12,848 metric tonnes of hazardous waste has been recycled or utilized for FY 2023-24.
* **Promotion of Circular Economy:**
* *MSE-SPICE*: Implemented by Ministry of Micro Small Medium Enterprises (MSME) with an outlay of Rs 472.50 Cr for FY 2023-24 to 2026-27.
* The scheme aims to promote a circular economy in the MSME sector by incentivizing circular economy practices in micro and small enterprises (MSEs).
* Supports MSEs in meeting Extended Producer Responsibility (EPR) and waste recycling targets.
* Under the MSE-SPICE Scheme, micro and small enterprises receive a 25% subsidy on Plant and Machinery costs, capped at INR 12.5 Lakhs per unit.
* **Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR):**
* Initiative to promote sustainable development and a circular economy through a cluster-based industry model.
* Three PCPIRs have been set up at Dahej (Gujarat), Vishakhapatnam–Kakinada (Andhra Pradesh), and Paradeep (Odisha).
**Impact Analysis**
**Stakeholder: SMEs in the Chemical Sector**
**Impact:** Increased access to support mechanisms for adopting circular economy practices, waste recycling, and meeting environmental standards, particularly concerning hazardous waste management. Financial incentives through the MSE-SPICE scheme provide access to investment.
**Action Required:** SMEs should familiarize themselves with the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016, and ensure compliance with these regulations. They should also explore opportunities for participation in the MSE-SPICE scheme to avail subsidies for circular economy projects.
**Stakeholder: State Pollution Control Boards/Committees (SPCBs/PCCs)**
**Impact:** Responsible for granting authorizations for hazardous waste handling, generation, collection, storage, packaging, transportation, use, treatment, processing, recycling, recovery, pre-processing, co-processing, utilisation, offering for sale, transfer or disposal.
**Action Required:** Enforce the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.
**Stakeholder: Local Communities and the Chemical Sector as a Whole**
**Impact:** Benefits from a more sustainable and environmentally sound chemical sector, promoting economic growth, job creation, and reduced environmental pollution.
**Action Required:** Support initiatives for the development of the sector in a sustainable way and adoption of various steps under the waste management hierarchy, including prevention, minimization, reuse, recycling, recovery, utilization, and safe disposal.
Key Entities Referenced
Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016: Rules notified under the Environment (Protection) Act, 1986, focused on safe handling and management of hazardous wastes and promoting waste management hierarchy.
Ministry of Environment Forest & Climate Change: Ministry that notified the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 and formulates Standard Operating Procedures (SOPs) for the utilization of various categories of hazardous waste.
MSE-SPICE: Micro and Small Enterprises (MSE) - Scheme for Promotion and Investment in Circular Economy (SPICE) implemented by the Ministry of Micro Small Medium Enterprises (MSME) to promote a circular economy in the MSME sector.
Central Pollution Control Board: Prepares and publishes the annual national inventory on the generation and management of hazardous and other wastes.
Chhattisgarh: The state where sixty percent of small industries are red-category and face river pollution challenges; its status of implementation is discussed.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS & FERTILIZERS
DEPARTMENT OF CHEMICALS & PETROCHEMICALS
LOK SABHA
UNSTARRED QUESTION NO. 1214
ANSWERED ON 06/02/2026
SUPPORT FOR SMES IN CHEMICAL SECTOR
1214. SHRI BRIJMOHAN AGRAWAL:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the details of support mechanisms under policies like Hazardous Waste Rules, 2016, for
Small and Medium Enterprises (SMEs) in the chemical sector to meet circular economy
standards, including waste recycling in non-major clusters;
(b) the status of implementation thereof in the States like Chhattisgarh, where sixty percent of
small industries are red-category and face river pollution challenges, along with regional
variations, State-wise;
(c) the steps being taken to address gaps such as high compliance costs and low R&D spend
(0.7% of revenues), including timelines for initiatives like MSE-SPICE and PLI scheme
integration; and
(d) the manner in which the said measures are likely to be beneficial for stakeholders, including
local communities and the sector's growth towards $400-450 billion by 2030?
ANSWER
THE MINISTER OF STATE FOR CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) and (b)
The Ministry of Environment Forest & Climate Change, Government of India (MoEF&CC)
has notified Hazardous and Other Wastes (Management and Transboundary Movement) Rules,
2016 (HOWM Rules, 2016) under the Environment (Protection) Act, 1986 for safe handling
and management of hazardous wastes in an environmentally sound manner without causing
adverse effect to environment and human health. The said Rules promote adoption of various
steps under waste management hierarchy i.e. prevention; minimization; reuse; recycling;
recovery, utilization including co-processing and safe disposal.Handling, generation, collection, storage, packaging, transportation, use, treatment, processing,
recycling, recovery, pre-processing, co-processing, utilisation, offering for sale, transfer or
disposal of the hazardous and other waste by any occupier are to be carried out only after
obtaining an authorization from the concerned State Pollution Control Boards/Committees
(SPCBs/PCCs) in accordance with the procedures laid down under the said Rules.
Under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules,
2016, Standard Operating Procedures (SOPs) are formulated by the Ministry of Environment
Forest & Climate Change, upon receiving the request from industry for utilizing hazardous
waste generated by one unit as a raw material to be used by another unit. This mechanism
ensures safe inter-industry waste reuse, facilitating circular economy. Ministry of Environment
Forest & Climate Change has developed 127 Standard Operating Procedures (SoPs) for
utilization of various categories of hazardous waste.
The said Rules also provides for a list of commonly recyclable wastes. Ministry of Environment
Forest & Climate Change has prepared guidelines for environmental sound recycling of the
said wastes and has published the same on their website.
Status of implementation in the State of Chhattisgarh:
The national inventory on generation and management of hazardous and other wastes is
prepared by Central Pollution Control Board. As per the information received from Ministry
of Environment Forest & Climate Change, in India for the Financial Year 2023-24, there are
2,317 units engaged in recycling and 1,231 units engaged in utilization of hazardous waste.
These units have recycled 2.34 million metric tonnes and utilized 1.97 million metric tonnes
of hazardous waste. Further, in the state of Chhattisgarh, there are 587 hazardous waste
generating units, 36 recyclers, 40 authorized utilizers and 175 captive utilizers. About 2,12,848
metric tonnes of hazardous waste has been recycled or utilized for FY 2023-24.
Annual national inventory on generation and management of hazardous and other wastes is
prepared and published by Central Pollution Control Board on their website which contains
State wise inventory of hazardous waste.
(c) and (d)
The various measures that are being taken to promote circular economy in the sector are as
follows:
MSE-SPICE: Micro and Small Enterprises (MSE) - Scheme for Promotion and Investment in
Circular Economy (SPICE) is being implemented by Ministry of Micro Small Medium
Enterprises (MSME). It is a Central Sector Scheme, with an outlay of Rs 472.50 Cr for the
period between FY 2023-24 to 2026-27.
The scheme aims to promote a circular economy in the MSME sector by incentivizing
micro and small enterprises (MSEs) to adopt circular economy practices on different types of
wastes including on plastic, rubber, and e-waste management. It supports micro and small
enterprises (MSEs) in meeting Extended Producer Responsibility (EPR) and waste recyclingtargets, while spreading awareness to boost resource efficiency, profitability, and cost
reduction.
Under the MSE-SPICE Scheme, micro and small enterprises receive a 25% subsidy on Plant
and Machinery cost for circular economy projects with a cap at INR 12.5 Lakhs per unit.
In addition to the above, this Department has taken the initiative to promote the development
of the sector in a sustainable way by coming out with the initiative like Petroleum, Chemicals
and Petrochemicals Investment Regions (PCPIR). Through this initiative, this department
promotes growth of industry in a cluster based model, which also facilitates sustainable
development and circular economy. Three PCPIRs have been set up at Dahej (Gujarat),
Vishakhapatnam–Kakinada (Andhra Pradesh) and Paradeep (Odisha).
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