The Scheme, to be implemented by the Department of Chemicals and Petrochemicals, will also aim to increase exports in the sector, achieve environmentally sustainable growth through innovative methods of waste management, recycling etc. by adopting a clustered development approach.
Under the scheme, the state governments will set up a ‘Special Purpose Vehicle’ (SPV) to provide infrastructure and common facilities to the industries. The state government or its agency, which would set up such SPV, should mandatorily 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 per cent of the total equity, including the cost of the land.
The Centre will contribute a Grant-in-Aid up to 50 per cent of the project cost, not exceeding Rs 40 crore per SPV. The rest of the money will come from 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 such milestone to be decided at the time of the project approval by a Scheme Steering Committee (SSC) in the Department of Chemicals and Petrochemicals. The proposals are to be made by the state governments.
India’s current share in global plastic trade is minimal.