New Delhi, October 09, 2013: The Government of India proposes to support setting up of ‘Plastic Parks’ for the promotion of downstream plastic processing industries. The Scheme to be implemented by the Department of Chemicals and Petrochemicals envisages setting up of a ‘Special Purpose Vehicle’ (SPV), which would provide infrastructure and common facilities for the industries. State Government or its agency, which would set up such SPV, will have to mandatorily have equity participation in it. Share subscription agreements between the SPV and its members will have to be executed. The contribution of the members will have to be at least 20% of the total equity, including the cost of the land.
The Government of India would provide a Grant-in-Aid to the extent of 50% of the project cost, not exceeding Rs. 40 crore per SPV to be set up for the purpose. The remaining contribution in the SPV will be from the State Government, its agencies, beneficiary industries or loan from financial institutions. The release of funds will be based on identification of milestones and time limits set for each such milestone to be decided at the time of the project approval by a Scheme Steering Committee (SSC) in the Department of Chemicals and Petrochemicals. The proposals are to be made by the State Governments.
The Scheme is aimed at increasing investment in the sector for additions in capacity and for increased exports in the sector. Adopting a clustered development approach, the scheme aims to achieve environmentally sustainable growth through innovative methods of waste management, recycling etc.
Currently the share of India in world trade for plastics is very low. The industry in the country is v