Scheme for Setting Up of Plastic Parks

DBT (direct benefit transfer): No

Categories: Transport & Infrastructure

Sub-categories: Infrastructure

Target beneficiaries: Business Entity

Tags: Enterprise, Industry, Polymer, Infrastructure, Cluster, Park, Manufacturer

• - The scheme provides a grant-in-aid of up to 50% of the overall project cost, subject to a maximum ceiling of ₹40,00,00,000/- per project
• A minimum of 25% of the Grant-in-aid is explicitly earmarked for creating common enabling facilities dedicated to the plastic processing industry, such as characterization, prototyping, testing, training, and plastic recycling
• The scheme provides financial assistance for administrative and management support of the Special Purpose Vehicle, including the Chief Executive Officer's salary, limited to 5% of the total Grant-in-aid
• Assistance is provided for engaging engineers, architects, and experts for civil works execution, up to a maximum of 5% of the total Grant-in-aid
• The scheme covers up to 75% of the costs for soft interventions (such as awareness generation, skill development, and exposure visits), not exceeding an amount of ₹50,00,000/- per project. Disbursal Schedule
• An initial 20% is disbursed as a mobilization advance upon final project approval, successful financial closure, and submission of a bank guarantee
• The second installment of 35% is released after the utilization of at least 60% of the first installment
• The third installment of 35% is released after the complete utilization of the first installment and 60% utilization of the second installment
• The final installment of 10% is released after the Special Purpose Vehicle mobilizes its entire share and at least 25% of the park's units become operational. Conditions
• The Special Purpose Vehicle must complete the complete setting up of the Plastic Park within a strict timeline of three years from the date of final approval
• The Special Purpose Vehicle must assume responsibility for the continuous operation and maintenance of all created assets by instituting and collecting user charges from members
• The services offered by the Common Facility Centres must be extended to the broader cluster in general, in addition to strictly serving member enterprises

Before we can begin submitting our application for this financial grant, what specific type of legal organizational structure must our newly formed development group adopt to be considered eligible?

Your applying group must be a distinct legal entity, which should ordinarily be formally registered as a Company strictly under the Companies Act 1956. <br>

To ensure proper financial oversight and transparent management of project funds during the execution phase, what specific type of banking arrangement are we explicitly required to establish?

You must establish a dedicated Escrow Account or a Trust and Retention Account strictly within an officially recognized Schedule A Bank. <br>

After our comprehensive proposal receives its final definitive approval from the governing committee, how much time are we officially allotted to ensure the complete establishment of the proposed infrastructure?

Your Special Purpose Vehicle must ensure the absolute completion of the entire project within a strict period of exactly 3 years from the date of final approval. <br>

In the event that our development group intends to rely on external loans to finance a portion of the infrastructure costs, what explicit documentation must we submit to demonstrate lending viability?

If external funding is envisaged, you must provide a final official sanction letter from the willing financial institution alongside your Detailed Project Report to demonstrate complete financial closure. <br>

During the initial evaluation stage where preliminary proposals are assessed by the steering committee, what specific category of proposed manufacturing outputs will be granted an official priority or advantage?

Preliminary proposals that actively intend to engage in the specialized manufacturing of medium-high end products will explicitly be given preference during the initial approval stage. <br>

If our comprehensive project report demonstrates a highly ambitious and large-scale industrial development plan, what is the absolute maximum financial ceiling of the grant-in-aid we can receive from the central government?

The central government will provide a maximum financial grant equal to 50% of your total project cost, subject to an absolute upper limit of ₹40,00,00,000/- per project. <br>

To formally demonstrate the binding financial commitments and official participation of all involved corporate partners and user enterprises, what specific legal documentation is strictly mandated prior to final approval?

You must successfully execute formal share subscription agreements between the Special Purpose Vehicle and all participating member enterprises. <br>

Once our shared infrastructure and testing facilities are fully operational, are we permitted to restrict their use solely to our official member enterprises, or must we allow wider access?

You must extend the services offered by your Common Facility Centres to the broader industrial cluster in general, rather than restricting access exclusively to your own member enterprises. <br>

While seeking to appropriately compensate our executive leadership and cover daily operational management costs during the construction phase, what is the strict percentage limit placed on utilizing the central grant for these purposes?

Financial assistance for administrative and management support, strictly including the salary of your Chief Executive Officer, cannot exceed 5% of the total Grant-in-aid. <br>

As an applying entity looking to establish this industrial infrastructure, what are the strict requirements regarding the possession and legal status of the proposed land?

You must procure the required land and ensure that it is officially registered or transferred solely in the name of your Special Purpose Vehicle. <br>

To ensure our collaborative corporate structure satisfies the basic financial criteria, what is the mandatory minimum percentage of cash equity that the state government or its designated agency must hold?

The state government or its nominated state agency must strictly hold a minimum of 26% of the cash equity within your Special Purpose Vehicle, completely excluding the value of any land given as equity. <br>

Following the successful construction and operationalization of all shared industrial assets and facilities, what specific financial mechanism must we implement to guarantee their continuous ongoing maintenance and sustainability?

Your Special Purpose Vehicle must assume total responsibility for ongoing operation and maintenance by officially instituting and collecting mandatory user charges from all members utilizing the shared facilities. <br>

When allocating the financial assistance received from the government, what is the exact minimum proportion that we must dedicate specifically toward creating shared manufacturing and testing infrastructure?

You are required to earmark exactly 25% of the provided Grant-in-aid to build common enabling facilities, such as testing, warehousing, and recycling centers dedicated to the polymer processing industry. <br>

In order to be considered a fully qualified applicant capable of proposing this industrial development project, which specific parties must collaboratively come together to form the official applying entity?

The applying Special Purpose Vehicle must be collaboratively formed by the State Government, or its designated state agency, acting in direct association with local user enterprises representing the polymer sector. <br>

• https://www.myscheme.gov.in/schemes/ssupp
• https://chemicals.gov.in/sites/default/files/plastic_park_doc/FPP260613.pdf
• https://chemicals.gov.in/sites/default/files/plastic_park_doc/Contact%20details%20of%20Plastic%20Parks.pdf

• Guidelines
• Contact Details For Plastic Parks