Plastic Park sanctioned for Odisha

Ministry of Chemicals and Fertilizers – Government of India approved for establishing a Plastic Park at Siju Village, Kujanga Tehsil of Jagatsinghpur District in Odisha. In this direction, a Special Purpose Vehicle (SPV) called Paradeep Plastic Park Limited would be set up for funding of the park.  The Government of India will provide a grant of Rs 40 crore for this purpose.

Why the Plastic Parks are being created?

The Government of India intends to set up a number of plastic parks in the country as envisaged in the the National Plastic Park Policy in 2010 which was modified in 2013. The national policy for plastic parks seeks to organise the plastic manufacturing and processing industry by setting up “dedicated plastic parks”.

At present, 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 function as a centre for manufacturers of telecom or automobile and other users to source the material.

The policy intends to encourage competitiveness of the plastic industry by upgrading the quality of the product to suffice 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.

What are the recent modifications in the National Plastic Park Policy?

The policy has been modified to specify the role of state governments, the scheme will be demand driven and the government will provide a one time grant. This grant will be given to the Special Purpose Vehicle (SPV) set up 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.

What is the funding pattern for setting up the Plastic Parks?

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).

The Ministry of Chemicals and Fertilizers

The Ministry of Chemicals and Fertilizers is the administrative unit of 3 departments:-

  1. Department of Chemicals and Petrochemicals
  2. Department of Fertilizers
  3. Department of Pharmaceuticals

The Ministry of Chemicals and Fertilizers is headed by Minister of Chemicals and fertilizers.

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Categories: Business & Economy Current Affairs 2017India Current Affairs 2017

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