As the Assam Industrial Development Corporation Ltd (AIDCL) comes looking for potential investors for the upcoming Tinsukia Plastic Park, the state could see exodus of more polymer processing firms to hilly states.
The AIDCL is in the process of setting up a 360 acre Plastic Park in Tinsukia, north of Guwahati that will use raw material produced at the Brahmaputra Crackers and Polymers Limited (BCPL) that is likely to come onstream in around a year's time.
"The AIDCL is looking at investors from across the country, primarily from Maharashtra and Gujarat. It expects to attract around Rs 5000 crore worth investments in the park.", said Bipin Shah, vice president, Plastindia Foundation, the apex body of major associations, organisations, and institutions connected with plastics processing.
The AIDCL is scheduled to hold a meeting with the plastic processors in the state tomorrow.
Shah said "The idea is to utilise the 200,000 tonnes per annum polymer produced at the BCPL to produce finished products that can be sold in neighbouring markets of Myanmar, Bangladesh, Bhutan among other regions in South East Asia".
When complete, the Tinsukia Plastic Park is expected to house at least 1250 downstream plastic processing units generating over one lakh direct and indirect employment.
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Shah added that units at the park will enjoy a 30 per cent subsidy on capital expenditure besides sales tax and excise benefits.
Gujarat has seen the exodus of polymer processing units out to tax-free havens like Himachal Pradesh and Uttarakhand and neighbouring Daman-Silvassa, blaming high power tariffs. Of the 7000 odd units in the state, mainly small and medium units, nearly 10 per cent started moving out of the state around five years back.
India’s polymer capacity is around six million tonnes per annum (mtpa), and Gujarat accounts for nearly 60 per cent of the net production.
The net investment in the plastics processing sector here is about Rs 70,000 crore, and annual business generated is Rs 150,000 crore.