The plastic processors and machinery makers will get encouragement from Gujarat government in the form of rebate and VAT subsidies. The move is aimed at providing competitiveness to the small players and encourage procurement from the state industries.

"The Gujarat government has decided to offer 5 per cent rebate on purchase of machinery from Gujarat-based companies and three per cent on machinery to companies from outside Gujarat," said Subhash Kadakia, president, Plastindia Foundation, organiser of the ninth international plastics exhibition & conference to be held in Gandhinagar during February 5-10.

Also, the government will provide subsidies on VAT for purchase of raw materials from Gujarat and 5 per cent subsidy on the interest on purchase of machinery from the state, informed Kadakia while announcing the expo, which will be inaugurated by Union Minister for Chemicals and Fertilisers, Ananth Kumar and Gujarat Chief Minister Anandiben Patel on February 5.

"The incentives on machinery will be applicable for a period of six weeks as a part of the exhibition period, and those on raw materials it will be applicable for a period of one year," said Mahendra Patel, Chairman, Mamta Group, a leading machinery player in Gujarat.

The plastics industry eyes India's polymer consumption to rise rapidly from 11.8 million tonnes per annum during 2012-13 to 17.6 million tonnes per annum by 2016-17.

According to industry insiders, packaging segment, which has about 50 per cent share in the overall plastics consumption in the country will continue to grow due to increase in demand for flexible packaging.

India's plastics exports is estimated at around $ 7.2-7.5 billion (approx. Rs 45,000 crore), which includes 35 per cent raw material and the balance of processed plastics products. However, India's share in the overall international market continues to remain subdued at less than one per cent of the overall global plastics market.

"Now, we are catching up fast with the Asian countries with superior products and better price. There is a steady growth of about 7-7.5 per cent in the international demand," informed Rajeev Chitalia, vice-president, Plastindia Foundation.

The ninth Plastindia expo will be spread across 1,25,000 square metres and will host about 1,50,000 business visitors. About 2,000 exhibitors will put up their products, while delegates from 40 countries will participate in the expo.

Related Topics
comment COMMENT NOW