Cabinate approves National Policy on Petrochemicals

13 Apr '07

2 min read

The Union Cabinet today gave its approval for the National Policy on Petrochemicals Document and also to the following :

(i) Proposals having financial implications:

(a) Constitution of Petrochemical Technology Upgradation Fund (PTUF)

(ii) Proposals without financial implication for the Department:

(a) Setting up of Plastic Development council.

(b) Setting up 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.

Setting up an Inter-Ministerial Expert Committee to recommend the use of plastics in the thrust areas as mandatory.

(iii) Proposals relating to other Departments :

(a) Increasing the investment limit for SSI units manufacturing plastic articles from Rs.1.00 crore to Rs.5.00 crore.

(b) De-reservation of items of plastics exclusively reserved for small scale industry.

(c) Transfer of Plastics Export Promotion Council under the control of Department of Chemicals & Petrochemicals.

(d) Inclusion of Synthetic Fibres Industry under Technology Upgradation fund for Textiles.

(e) Phasing out of Jute Packaging Materials Act (JPMA), 1987

This decision would derive the following benefits:

(i) Increase investments in the sector and capture a slice of the resurgent Asian demand in polymers through additions in capacity/production by ensuring availability of feedstock at internationally competitive prices, crating infrastructure, ationalizing tariffs & taxes and promoting exports.

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