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New petrochemical policy gives tax incentives to industry

New petrochemical policy gives tax incentives to industry
PTI
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First Published: Thu, Apr 12 2007. 06 51 PM IST
Updated: Thu, Apr 12 2007. 06 51 PM IST
The Union government on 12 April approved the National Policy for Petrochemicals that envisages providing tax incentives to the industry to enable India emerge as a global player in the segment.
“The Union Cabinet today gave its approval for the national petrochemicals policy document and setting up an Inter-Ministerial Expert Committee to recommend the use of plastics in the thrust areas as mandatory,” Information and Broadcasting Minister PR Dasmunsi told reporters.
The policy has also proposed allowing medium and large industries to manufacture certain plastic items, currently reserved for the small scale sector.
Under the policy, the government will also set up of Petrochemical Technology Fund and raise investment limit for SSI plastic manufacturing units from Rs1 crore to Rs 5 crore.
As per estimates, domestic demand and per capita consumption of plastics and synthetic fibres is 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.
Under the policy, government is expected to facilitate creating of infrastructure, rationalise tariffs and taxes and promote exports so that Indian industry can capture a slice of the resurgent Asian demand in polymers, Dasmunsi said.
A task force on petrochemical feedstock will also be set up to suggest measures to ensure the availability of petrochemical feedstock at internationally competitive prices and the setting up future cracker complexes, he added.
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First Published: Thu, Apr 12 2007. 06 51 PM IST