NEW DELHI: The Centre has planned to provide financial assistance to promote setting up of plastic parks for downstream plastic processing industries. The chemicals and petrochemicals department has proposed setting up of a special purpose vehicle (SPV) that would provide infrastructure and common facilities for the industries.
In an official statement, the department has said that state government or its agency, which would set up such SPVs, must 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 Centre will provide a grant-in-aid upto 50% of the project cost and not exceeding Rs 40 crore per SPV. The rest of the contribution will be made by 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 milestone to be decided at the time of the project approval by a scheme steering committee (SSC).
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.
Source:- timesofindia.indiatimes.com
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