• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Ambarish Mukherjee

New Delhi , Dec. 8

THE draft `National Policy on Petrochemicals' has proposed to levy a cess of Rs 100 per tonne on polymer produced or imported into the country to mobilise funds for setting up a Plastic Technology Upgradation Fund (PTUF).

Apart from suggesting a 5 per cent interest subsidy under the PTUF scheme, the policy draft has also favoured the inclusion of synthetic fibres under the existing Technology Upgradation Fund Scheme.

According to estimates made by the Ministry of Chemicals and Fertilisers, since the yearly consumption of polymers in India currently stands at around four million tonnes, the cess of Rs 100 per tonne should be able to generate about Rs 40 crore annually for the PTUF.

The Ministry circulated the draft policy among industry members on Monday to elicit their views on the recommendations.

According to Mr Vinay Kohli, Secretary, Department of Chemicals and Fertilisers, the national policy is likely to be finalised only during the next financial year, as the entire exercise would take several months.

Regarding rationalisation of the import duty on petrochemical products, the draft policy has recommended a four-tier duty structure in place of the existing three-tier mechanism. As per the recommendations, the first tier will include crude oil, natural gas and naphtha while the second tier is to include capital goods, catalysts and building blocks. The third tier will have the intermediaries and the fourth will be applicable for polymers, fibres and yarns.

On the issue of upgrading the small-scale sector, the policy draft has recommended an increase in the investment limit in plant and machinery from the existing Rs 1 crore to Rs 5 crore along with removal of reservation for the small sector.

It has also been estimated that the petrochemical industry will face a severe shortage of trained manpower, which, for 2010, has been projected at about 22,550. To tackle this problem, existing institutions like the Central Institute of Plastic Engineering and Technology is to be upgraded further to the "deemed university" status along with new courses. Also, new institutions are to be promoted as public-private ventures as also wholly in the private sector.

The draft policy has set a target to increase per capita plastic consumption from the present four kilograms to 12 kg by 2010. It has also imposed a mandatory stipulation of minimum thickness of 20 microns of film for carry-bags for food products. The policy has also suggested the constitution of a Plastic Development Council and establishment of a `mega chemical industrial estate', apart from special plastic export parks and plastic recycling clusters.

Article E-Mail :: Comment :: Syndication

Stories in this Section
Rs 100/t cess on polymer proposed — Draft petrochem policy moots synthetic fibres under TUFS

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line