Upgradation fund for plastics

Centre may levy cess on polymer production and imports to mobilise funds.

The central government is planning to set up a technology upgradation fund (TUF) for the plastic processing sector, in line with a similar scheme for the textiles industry. Under the plan, dedicated plastic parks will also be set up.

The government is also planning to levy a cess of Rs 100 per metric tonne on polymer production and imports, to mobilise funds. "This fund will help the plastic industry to attract additional investment of approximately Rs 10,970 crore, required during the 11th Five-Year Plan", official sources said.

"It will help in technology upgradation, cost reduction and quality improvement, which are imperative for the domestic players to compete with the international players," the sources added.

The funds will be utilised for research, projects on waste management, recycling and developments on biopolymers and biodegradable polymers.

The draft scheme for creation of fund for existing small and medium enterprises was proposed by the Central Institute for Plastic Engineering and Technology to the ministry of chemicals and fertilisers.

The fund would be managed by the empowered committee of the Plastic Development Council, which has representatives from the government and industry.

The committee will monitor allocation, disbursement, prioritisation, utilisation and control of the funds.

The PDC will also encourage replacing natural, scarce and high energy consuming materials with plastics. Sources added that dedicated plastic parks would also be developed after conducting the feasibility study.

It will promote cluster approach in the areas of development of plastic applications and plastic recycling. These would benefit the downstream petrochemical sector involved in technology development, market development and recycling of plastic waste.

"Creation of plastic parks would go a long way in developing international competitiveness of the downstream sector," sources said.