The finance ministry and the Planning Commission have overhauled India's petrochemical policy, over ruling the proposals in the original policy draft of the ministry of chemicals and fertilisers, to impose a cess on all polymers and provide direct capital subsidy to SMEs in the plastic industry. Instead, it would consider making budgetary allocation for creation of an R&D fund for the polymers-to-plastic industry.
The finance ministry has also endorsed the policy assertion that the petrochem sector suffered from an inverted import tariff structure and absence of competition in certain industrial segments. These anomalies would be corrected through the instrument of Budget.
Pricing and availability of gas and basic polymers have been identified in the policy as major issues to be diligently addressed.
The Cabinet had, last year, referred the draft policy to a three-member committee as divergent views surfaced. The policy, as modified by the committee, will be proposed to the Cabinet for approval.
11-Jul-06 
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