The Maharashtra government has approved the Maharashtra Bioplastics Policy 2026, the state's first dedicated policy for the bioplastics sector. The initiative aims to reduce plastic pollution, strengthen sustainable manufacturing and position Maharashtra as a leading hub for bioplastics production.
Under the policy, greenfield investments worth ₹25,000 crore are expected to be attracted over the next five years, including at least ₹10,000 crore for Polylactic Acid (PLA) manufacturing facilities. Around 100,000 jobs are projected to be created across the bioplastics value chain. By 2030, the state plans to reduce its dependence on imported PLA by 50%, replace at least 30% of single-use plastic packaging in identified sectors with bioplastics and increase bioplastics exports from Maharashtra to $1 billion.
The policy seeks to expand domestic production of PLA and other biopolymers while strengthening the supply chain through greater use of agricultural feedstock. Around 100,000 farmers are proposed to be integrated into the sector through procurement of sugarcane, corn and starch-based raw materials, creating additional income opportunities.
The initiative comes amid growing concerns over plastic waste, microplastic pollution and greenhouse gas emissions. India currently contributes only about 0.46% of global bioplastics production and remains dependent on imports of key biopolymers, particularly PLA.
Maharashtra's existing strengths are expected to support the sector's growth. The state is the country's largest sugarcane producer and a major ethanol producer, providing abundant feedstock such as sugarcane derivatives, molasses, bagasse, corn and starch. During the 2025-26 sugar season, nearly 200 operational sugar mills crushed around 104.56 million metric tonnes of sugarcane and produced approximately 9.92 million metric tonnes of sugar. Its established chemical manufacturing industry, research institutions and logistics infrastructure, including the Jawaharlal Nehru Port Authority, are also expected to support an integrated bioplastics ecosystem.
According to Maharashtra Pollution Control Board data, the state generated 396,000 tonnes per annum of plastic waste during 2022-23. Around 288,000 TPA was collected and nearly 225,000 TPA was processed, highlighting the need for improved waste reduction, bioplastic substitution and recycling systems.
The policy will cover the entire bioplastics value chain, including feedstock processing, biopolymer manufacturing, compounding, conversion and finished-product manufacturing. Incentives will be available for anchor investors as well as eligible small, medium, large and mega units. However, benefits will apply only to new greenfield projects and fresh capacity additions. Existing conventional plastic manufacturers undertaking brownfield expansion will qualify only if the entire incremental investment is dedicated exclusively to bioplastics.
Eligible fixed capital investment will include plant and machinery, manufacturing infrastructure, utilities, quality testing facilities, pollution-control systems, research and development equipment and specified pre-operative expenses. Land costs, working capital, raw material inventory, unrelated transport equipment and expenditure already covered under other government incentive schemes will not qualify under the policy.