Scheme for Setting Up of Plastic Parks

DETAILS The scheme "Scheme for Setting Up of Plastic Parks" was launched by the Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers. The scheme aims to increase the competitiveness, polymer absorption capacity, and value addition in the domestic downstream plastic processing industry through a cluster development approach. The scheme provides a one-time grant-in-aid to support the setting up of need-based plastic parks with state-of-the-art infrastructure and common facilities. The applicant must form a distinct legal entity, mobilize equity contributions, and procure land to execute the project. The scheme is implemented by Special Purpose Vehicles under the coordination of the Scheme Steering Committee. BENEFITS The scheme provides a grant-in-aid of up to 50% of the overall project cost, subject to a maximum ceiling of ₹40,00,00,000/- per project. A minimum of 25% of the Grant-in-aid is explicitly earmarked for creating common enabling facilities dedicated to the plastic processing industry, such as characterization, prototyping, testing, training, and plastic recycling. The scheme provides financial assistance for administrative and management support of the Special Purpose Vehicle, including the Chief Executive Officer's salary, limited to 5% of the total Grant-in-aid. Assistance is provided for engaging engineers, architects, and experts for civil works execution, up to a maximum of 5% of the total Grant-in-aid. The scheme covers up to 75% of the costs for soft interventions (such as awareness generation, skill development, and exposure visits), not exceeding an amount of ₹50,00,000/- per project.  Disbursal Schedule An initial 20% is disbursed as a mobilization advance upon final project approval, successful financial closure, and submission of a bank guarantee. The second installment of 35% is released after the utilization of at least 60% of the first installment. The third installment of 35% is released after the complete utilization of the first installment and 60% utilization of the second installment. The final installment of 10% is released after the Special Purpose Vehicle mobilizes its entire share and at least 25% of the park's units become operational.  Conditions The Special Purpose Vehicle must complete the complete setting up of the Plastic Park within a strict timeline of three years from the date of final approval. The Special Purpose Vehicle must assume responsibility for the continuous operation and maintenance of all created assets by instituting and collecting user charges from members. The services offered by the Common Facility Centres must be extended to the broader cluster in general, in addition to strictly serving member enterprises. The assets acquired or created substantially out of the Government grant must not be disposed of without the explicit prior approval of the sanctioning authority. The central grant may be completely recalled with penal interest in the event of partial implementation, incomplete execution, or a compromise with the envisioned quality standards. ELIGIBILITY The applicant must be a Special Purpose Vehicle formed by the State Government or its designated agency in association with user enterprises representing the plastic sector. The applicant must be a distinct legal entity, ordinarily registered as a Company under the Companies Act 1956. The applicant must successfully procure land for the project. The applicant must ensure the procured land is legally registered or officially transferred in the name of the Special Purpose Vehicle. The applicant must mandate that the equity contribution of the State Government or its agency constitutes at least 26% of the cash equity of the Special Purpose Vehicle. The applicant must officially mobilize at least 20% of the equity contribution of its members, including the cost of land, prior to receiving final approval. The applicant must establish a dedicated Escrow or Trust and Retention Account in a Schedule A Bank. The applicant must execute formal share subscription agreements between the Special Purpose Vehicle and all participating members. Preference Projects proposing to enter the specialized manufacturing of medium-high end products must be given preference during the initial approval stage.