Scheme for Setting up of Plastic Parks

Scheme for Setting up of Plastic Parks 

Scheme for Setting up of Plastic Parks

Department of Chemicals and Petrochemicals has formulated the Scheme for Setting up of Plastic Parks to increase competitiveness and investments, achieve sustainable growth and adopt the cluster development approach to consolidate the capacities in the plastic sector. Under this scheme, Government provides funding to projects proposed to be implemented by a Special Purpose Vehicle (SPV) for Setting up of Plastic Parks. Plastic parks will have great potential for attracting investments and generating more employment opportunities in India. In this article, we will look at the Scheme for Setting up of Plastic Parks in detail.

Note on Plastic Park

A plastic park is an industrial zone devoted to plastic enterprises and its allied industries. Plastic Park includes a whole range of companies required by the plastics processing community from plastics processing companies, materials and machinery suppliers, plastic recycling companies including waste management system.

The objective of the Scheme

The objective of the Scheme for Setting up of Plastic Parks is explained in detail below:

  • To increase the competitiveness, polymer absorption capacity and value addition in the downstream plastic processing industry through adaptation of modern, research and development led measurers
  • To increase investments in the plastic sector through additions incapacity of unit and production, creating quality infrastructure and other facilitation to secure value addition and increase in exports.
  • For achieving environmentally sustainable growth through innovative methods of waste management and recycling
  • To adopt a cluster development approach to achieve the above-mentioned objectives owing to its benefits arising due to the optimization of resources and economies of scale.

Eligibility for Financial Assistance

The assistance under the scheme will be provided to the special purpose vehicle (SPV) formed by the State Government or any of the agencies such as State Industrial Development Corporation in association with user enterprises representing the plastic sector or sub-sector.

The grant should be used for following components of typical Plastic Park.

  • Infrastructure: To support production units like water supply, drainage, roads, electricity supply including the captive power plant, telecommunication lines, effluent treatment plant, hazardous waste management and incinerator.
  • Buildings: For support services like administrative buildings, canteen, hostel, recreation facilities, and facilities for labour and marketing support system.
  • Equipment: For characterization, prototyping, virtualization, non-destructive material testing, incubation, training, plastic recycling, warehousing, tooling, designing and Research & Development.
  • Administration: Other management support including the salary of CEO for the project implementation period
  • Construction management: Assistance for engaging engineers, architects, construction management and other experts
  • Awareness Programme: For surveys, studies, sensitization, awareness generation, skill development, training and exposure visits.

Quantum of Assistance

The projects proposed to be implemented by a Special Purpose Vehicle (SPV) will be eligible for funding under the Scheme for Setting up of Plastic Parks up to 50 % of the project cost not exceeding Rs 40.00 Crore per project.

  • A minimum of 25% of the grant will be provided for common enabling facilities dedicated to the plastics processing industry.
  • The 25% of the funds can be used for the characterization, prototyping and virtualization, incubation, training, non-destructive material, testing, warehousing, plastic recycling, tooling design, Research and development of the plastics industry.
  • According to this scheme, 5 % of the project cost will be provided to administration and other management supports of SPV including the salary of CEO.
  • According to this scheme, 5 % of the project cost will be granted for engaging engineers, architects, construction management and other experts for the execution of civil works.
  • Assistance for soft initiatives will be an extent of 75 % of the cost of soft interventions not exceeding Rs 50 lakhs per project.

Scheme for Setting up of Plastic Parks Application Procedure

The application procedure for Scheme for Setting up of Plastic Parks is explained in detail below:

  • Department of Chemicals and Petrochemicals will call for the preliminary proposals from State Governments proposed to setting up of Plastic parks.
  • The State Government or its agents such as State Industrial Development Corporation or any equivalent state entity will have to submit the preliminary proposals.
  • The proposal should contain the following components:
    • Proposed location of the park
    • Background of the State agency and its financial strength
    • Broad cost estimate and proposed means of finance
    • The conceptual background of the project
    • Proposed product mix
    • Nature of units being set up and the product proposed to be manufactured in the parks.
    • Investment in infrastructure (project cost minus the cost of land) per acre of proposed plastic park
    • Total project cost in terms of the number of times of grant-in-aid of Government of India.
    • Readiness for project execution

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  • The Scheme Steering Committee (SSC) will give in-principle approval, the project as per the parameters based on the merits of the preliminary proposals
  • Note: Projects proposing to enter manufacturing of medium-high end products will be given preference.
  • The in-principle approval accorded by the SSC will be valid for six months, with-in-which the SPV has to comply with the conditions and apply for final approval
  • Upon getting the in-principle approval, the applicant will prepare a Detailed Project Report (DPR) and submit it to the Department.
  • Final approval of the project will be accorded by the SSC based on the appraisal and recommendations of the Detailed Project report by the Programme Manager.

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.