NEW DELHI: The Union Cabinet on Thursday approved the National Policy for Petrochemicals, providing for tax incentives to the industry to enable India to emerge as a global player in the segment, phasing out of the Jute Packaging Materials Act 1987, and setting up an inter-Ministerial Expert Committee to recommend use of plastics in the thrust areas as mandatory.

Briefing newsmen after the meeting, Information and Broadcasting Minister P. R. Dasmunsi said the Cabinet approved constitution of a Petrochemical Technology Upgradation Fund and setting up of a Plastic Development Council. The policy also envisages setting up a Task Force to ensure availability of petrochemical feedstock at internationally competitive prices and the setting up of future cracker complexes.

The policy proposes allowing medium and large industries to manufacture certain plastic items, now reserved for the small-scale sector. Under the policy, the Government will raise investment limit for SSI plastic manufacturing units from Rs. 1crore to Rs. 5 crore. As per estimates, domestic demand and per capita consumption of plastics and synthetic fibres ares likely to rise to about 12 kg and 4 kg, respectively, by 2011 from the present level of 4 kg and 1.6 kg respectively.

Jute packaging order

Under the policy, the Government is expected to facilitate creation of infrastructure, rationalise tariffs and taxes and promote exports so that the industry could capture a slice of the resurgent Asian demand for polymers. The Cabinet also approved transfer of the Plastics Export Promotion Council to the control of the Department of Chemicals and Fertilisers, inclusion of the synthetic fibres industry under the technology upgradation fund for textiles (TUF) and phasing out of the Jute Packaging Materials Act 1987.

The policy document envisages to increase the competitiveness and polymer absorption capacity of the domestic downstream plastic processing industry by modernising and technologically upgrading it and freeing it from structural constraints and achieve environmentally sustainable growth through innovative methods of plastic waste management and development of photodegradable polymers and plastics.

The Cabinet approved undertaking a feasibility study for turning around seven sick units of Fertiliser Corporation of India and Hindustan Fertiliser Corporation reversing the decision of the previous NDA Government taken in 2002 to close the sick fertiliser units of FCI and HFCI.

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