Cabinet okays policy for Petrochemicals sector

New Delhi, Apr 12: The Union Cabinet today gave its approval for a new National Policy on Petrochemicals, which includes increasing the investment limit of Small Scale Industry units manufacturing plastic articles from Rs one crore to Rs five crore and Constitution of a Petrochemical Technology Upgradation Fund.

The policy also includes de-reservation of plastic items exculsively reserved for the small scale sector and phasing out of the Jute Packing Materials Act (JPMA), 1987.

Briefing mediapersons on the Cabinet meeting, Information and Broadcasting Minister Priya Ranjan Dasmunsi said the policy aims to increase investments in the sector and capture a slice of the resurgent Asian demand in polymers through additions in capacity and production. This would be done by ensuring availability of feedstock at internationally competitive prices, creating infrastructure, rationalising tariffs and taxes and promoting exports.

The policy lays down increasing competitiveness and polymer absorption capacity of the domestic downstream plastic processing industry by modernising and technologically upgrading it and freeing it from structural constraints.

The policy envisages setting up of a Plastic Development Council and a Task Force on Petrochemical Feedstock to suggest measures to ensure the availability of petrochemical feedstock at internationally competitive prices and the setting up of future cracker complexes. An Inter-Ministerial Expert Committee will be set up to recommend the use of plastics in the thrust areas as mandatory.

The Plastic Export Promotion Council is to be transfferred under the control of the Department of Chemicals&Petrochemicals.

Synthetic Fibres Industry is to be brought under the Technology Upgradation fund for Textiles.

The Policy will aim to increase the domestic demand and per capita consumption of plastics and synthetic fibres from the present 4 Kgs and 1.6 Kg respectively to about 12 Kg and 4 Kg respectively by 2011 by increasing the use of petrochemicals in thrust areas.

It seeks to increase the competitiveness and polymer absorption capacity of the domestic downstream plastic processing industry by modernizing and technologically upgrading it and freeing it from structural constraints.

The new policy will aim to achieve environmentally sustainable growth through innovative methods of plastic waste management, recycling and development of bio and photo degradable polymers and plastics.

UNI