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Plastic Park

The Scenario

The world trade in plastics is likely to reach 140 MMT by 2012; however, India, at present, has a mere low share of 1.5%. The consumption of plastic in agricultural applications and infrastructure in India is extremely low compared to developed nations, leading to an immense potential for growth. The Indian Plastics industry is large but highly fragmented; pre-dominated by tiny, small and medium units; thus lacking the capacity to tap this opportunity. In line with Vision 2012’s aim to grow the polymer demand by 19% instead of the projected 13%, the Department of Chemicals and Petrochemicals, Govt. of India has formulated a Scheme for setting up of Plastic Parks in order to synergize and consolidate the capacities through cluster development and meet this jump in demand.

The Scheme

This Scheme will offer a 50% subsidy for project development to a maximum of Rs.40 crores. The Scheme supports setting up of a need-based ‘Plastic Park’ with requisite state-of-the-art infrastructure and enabling common facilities to assist the sector move up the value chain and contribute to the economy more effectively.

Financial assistance will be in the form of a one time grant–in–aid to the Special Purpose Vehicle (SPV) formed by cluster entrepreneurs, which will support components like basic and support infrastructure, administrative support, equipment and machinery and soft initiatives.

Who can benefit from this Scheme?

Benefits

The expected outcome will lead to:

Role of the State Government

The State Government will play a pro-active role in the following areas:

Mandatories

Program Management Agencies

Considering the complexities of the scheme, the Government has engaged select Program Management Agencies (PMAs) to provide management, capacity building, coordination and monitoring support. A leading integrated Project Management Consultancy; Magus Consulting Pvt. Ltd. aims to assist entrepreneurs in liaisoning with the Ministry; creating concept and feasibility reports and in ensuring smooth implementation of projects through every stage.

Incorporated in 1954, Magus forayed into providing Project Management Consultancy services in 2003 and today, is amongst India’s leading PMCs, offering conception-to-completion services under one roof to a diverse set of clientele in micro infrastructure, realty and various other sectors. Some of the national projects it is associated with are MMRDA’s Rental Housing Development, Ministry of Textile’s SITP and Bhiwandi Powerloom Cluster and National Centre for Jute Development’s Jute Park.

With regard to Plastic Park, Magus can offer its expertise across all stages of project development including in:

Expression of Interest for Plastic Park

The Department of Chemicals and Petrochemicals will call for Expression of Interest or preliminary proposals from entities interested in setting up of Plastic Parks. The preliminary proposals will need to cover proposed location of the park, background of the promoter and their financial strength, conceptual background of the project, proposed product mix, broad cost estimates and proposed means of finance and readiness for project execution.

For professional assistance in creating EOIs and Detailed Project Reports (DPRs) or further information on Plastic Park, call Rajesh Verma on 9920112363 or email enquiry@magusindia.co