ABOUT THE SCHEME: The share of India in world trade of plastics is very low. The Indian Plastics industry is large but highly fragmented with dominance of tiny, small and medium units and thus lacks the capacity to tap this opportunity. Department of Chemicals & Petrochemicals has formulated this scheme with a view to synergize and consolidate the capacities through cluster development of Petrochemicals industry in the country.
Objectives:
1. Increase the competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry through adaptation of modern, research and development led measures.
2. Increase investments in the sector through additions in capacity and production, creating quality infrastructure and other facilitation to ensure value addition and increase in exports.
3. Achieve environmentally sustainable growth through innovative methods of waste management, recycling, etc.
4. Adopt a cluster development approach to achieve the above objectives owing to its benefits arising due to optimization of resources and economies of scale.
Salient features:
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- The scheme supports setting up of a need based “Plastic Parks‟ an ecosystem with requisite state-of-the-art infrastructure and enabling common facilities to assist the sector move up the value chain and contribute to the economy more effectively.
- The grant by the central government shall be by way of one time grant –in – aid 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 release of Grant-in-aid will be subject to the identification of milestones and time limits for each milestone to be decided by SSC (Scheme Steering Committee), constituted under the chairmanship of secretary.
- The Department of Chemicals and Petrochemicals will be the coordinating Department providing overall policy, coordination, and management support to the scheme.
- Role of the State Government: Promotion of the industrial infrastructure is normally done by the State Government, industry being the State subject. Accordingly, the State Government is envisaged to play a proactive role in the following areas:
- State Government shall nominate and recommend the state agency such as State Industrial Development Corporation (SIDC) for execution of the project.
- State Government or its agency shall share the project cost in setting up of the Plastic Park in the State by the SPV.
- Mandatory equity participation in SPV by State Government or its agency.
- Providing the necessary assistance for external/ access infrastructure as roads, Power, Water supply etc.
- Providing requisite land to the project, wherever needed, in appropriate mode.
- Providing necessary project related clearances on expeditious basis.
- Providing flexible and conducive labour environment and consider special facilities like exemption of stamp duty etc. for the SPV/ units.
- Extending the benefits of other related schemes to the SPV/ member enterprises for increasing viability of the projects.
SIGNIFICANCE:
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- Plastic waste generation in India has increased by 22.8% in last 3 years. Hence the need for its proper management and utilisation.
- The plastic parks will boost the value addition and competitiveness in the plastics processing industry. The scheme strives to achieve it though measures led by research and development.
- The Indian plastic industry is big. However, it is highly fragmented. The plastic parks will help to consolidate the industry.
- Increasing demand of plastic in global markets.
PROGRESS:
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- India’s plastic exports have increased with recent estimates showing growth of 5% in January 2024 from January 2023.
