Govt to boost increase economies of scale of Indian plastic industry

21-Dec-09

Help has come for the Indian plastic processing industry from the government. To make the Indian plastic industry increase economies of scale to become globally competitive as compared to processors from USA, China and other countries, the Centre plans to set up plastic clusters or parks across the country. The sops include tax holidays, exemption in sales tax, octroi, excise, as well as subsidy. Guidelines will be taken from the existing automobile, textile and food processing parks in the states of Maharashtra and Gujarat. Each park, planned with about 200 plastic units, entails an investment of around Rs 200 crore. Each park is to be developed on 100-150 acres and is expected to house over 100 plastic units with a monthly production capacity of 200 tons. These parks may be developed in upcoming or existing special economic zones or at new sites. They will have common facilities for research and development, effluent treatment and waste management. The chemicals and fertilisers ministry will soon approach the Planning Commission and the finance ministry with a proposal to provide various fiscal incentives for the development of such parks. Finalisation of incentives will be subject to approval from the Planning Commission, as well as the finance ministry. This step is expected to provide an impetus to exports of the Indian plastic industry, from existing levels of merely US$3 bln as compared with China’s US$22 bln.