[10/10] India will have four plastic parks approved by end of this month. This is the first set of plastic parks coming up after the government launched the National Plastic Park Policy in 2010 and modified it in 2013. These four plastic parks shortlisted among host of other applications are in Paradeep, Orissa, Manali Industrial Estate, Ennore port, TamilNadu, Tinsukhia in Assam and Bhopal, Assam. According to officials, projects have been shortlisted depending on either their proximity to market or PCPIR zone where raw material availability is preferred. PCPIR- Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) is a flagship scheme of the department of chemicals and petrochemical to develop projects to ensure raw material availability of the petrochemical and plastic industry- naphtha. Paradip in Orissa and Tinsukhia in Assam are situated near PCPIR zones of Pradip in Orissa and Assam Gas Cracker plant near Dibrugarh, Assam which will ensure availability of feedstock – naphtha. Bhopal and TamilNadu are situated near market places. The national policy for plastic parks is intended to organise the plastic manufacturing and processing industry by setting up “dedicated plastic parks”. States, which do not have special zones for the sector, could earmark land for such parks. Currently, the industry is highly fragmented and disorganised. Most units are in the small and medium category. While they are producing and processing plastic, there is no hub where one can source it at one place.” “On the other hand, there are industries ranging from tooth brush and milk pouches to automobiles and automobile spare parts and accessories which are regularly facing a problem of timely availability of raw material both in basic or processed form. Therefore, such a park will act as a hub for manufacturers of telecom or automobile and other users to source the material,” the official said. “The objective of the policy is to encourage the competitiveness of the plastic industry by upgrading the quality of the product to meet the end uses of domestic industries and exports. Therefore, it will benefit both the established players in the industry and the first generation entrepreneurs, as long as it has competitive edge. Thus, the policy will not have much financial incentive and is more of a facilitator of infrastructure support for industrial units,” said an official source. Recently the policy was modified to specify the role of state governments the scheme will be demand driven and the government grant will be one time grant –in – aid. This grant will be given to the special purpose vehicle (SPV) formed by the State Government or any of its agencies such as State Industrial Development Corporation (SIDC) in association with user enterprises representing the plastic sector / sub sector. Government of India would provide grant funding up to 50% of the project cost subject to a ceiling of Rs. 40 crore per project. The remaining contribution in the SPV will be from the State Government or State Industrial Development Corporation or similar agencies of State Government, beneficiary industries and loan from financial Institutions. The equity contribution of the State Government or respective SIDC shall be at least 26% of the cash equity of the SPV (excluding value of any land given as equity).
Posted on: Thu, 10 Oct 2013 09:39:44 +0000
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