Scheme of Setting up of Plastic Park Scheme of Setting up of Plastic Park Scheme of Setting up of Plastic Park Subsidy for plastic park
The Scheme has the following objectives:
1. Increase the competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry through adaptation of modern, research and development led measures.
2. Increase investments in the sector through additions in capacity and production, creating quality infrastructure and other facilitation to ensure value addition and increase in exports.
3. Achieve environmentally sustainable growth through innovative methods of waste management, recycling, etc.
4. Adopt a cluster development approach to achieve the above objectives owing to its benefits arising due to optimization of resources and economies of scale.
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 State Industrial Development Corporation or similar agencies of the State Government shall be at least 26% of the cash equity of the SPV( excluding value of any land given as equity).
In the event of user enterprises/beneficiary industries/ private developers/JV partners not bringing in the required equity contribution within a period of one year from the date of final approval of the project, the deficit of cash equity (excluding value of land given as equity) shall be financed by the State Government or State Industrial Development Corporation or similar agencies of the State Government. Cost escalation due to any reason has to be borne by the State Government or its agency. Interest earned on central grant by the SPV would be treated as a part of the central grant.
1. Each of the projects proposed to be implemented by a Special Purpose Vehicle (SPV) shall be eligible for grant funding under the scheme up to 50 % of the project cost (as mentioned in the previous section) not exceeding Rs 40.00 Crore per project subject to the following:
a. A minimum of 25 per cent of the Grant-in-aid should be earmarked for common enabling facilities dedicated to plastic processing industry like characterization, prototyping & virtualization, non-destructive material testing, incubation, training, warehousing, plastic recycling, tooling design, Research & development, etc.
b. Assistance for Administrative and other management support of SPV including the salary of CEO for the project implementation period shall not exceed 5 % of Grant-in-aid of the overall project cost.
c. Assistance for engaging engineers / architects / construction management / other experts for execution of civil works shall not exceed 5 % of Grant-in-aid of the overall project cost.
- Assistance for soft initiatives [as explained at pt. no in the section above and as approved by SSC] shall be over and above the grant provision for infrastructure components and shall be restricted to 75 % of the cost of soft interventions not exceeding Rs 50 lakhs per project. This amount may be met from within the total grant to be given for each project.
- SPVs may dovetail funds from other sources as well for the project, provided there is no duplication of funding for the same component / intervention.
- The soft initiatives shall be funded during the project implementation phase. Subsequently, it will be the responsibility of the SPV to undertake such initiatives on its own.