The Department of Chemicals and Petro-Chemicals is set to implement its scheme for setting up of Plastic Parks under the broader New Scheme of Petrochemicals.

This initiative aims to establish need-based Plastic Parks with modern infrastructure and shared facilities through a cluster development approach, designed to consolidate and synergize the downstream plastic processing industry. The primary objective is to bolster investment, enhance production and exports, and generate employment by strengthening domestic capabilities.

The Government of India provides grant funding of up to 50 percent of the project cost, capped at Rs 40 crore per project. These funds help develop infrastructure and promote industrial clustering to drive efficiencies and scale.

State governments are encouraged to submit preliminary proposals specifying location, cost, and financial details. Once the Scheme Steering Committee gives in-principle approval, a detailed project report (DPR) must be submitted by the state’s implementing agency for final approval based on the project’s viability. The grant-in-aid for these projects is complemented by the efforts of special purpose vehicles (SPVs) formed by State Industrial Development Corporations or their agencies. State governments have been actively promoting private sector participation by offering plots at competitive prices, tax incentives, and conducting awareness programmes.

The parks are equipped with common infrastructure including effluent treatment plants, solid/hazardous waste management systems, plastic recycling units, and incinerators. Some parks have even established in-house recycling facilities to manage plastic waste effectively.

A Plastic Park is defined as a designated industrial zone for plastic-related enterprises. These parks serve as a cornerstone in India’s efforts to manage plastic waste, encourage recycling, and promote eco-friendly growth in the chemical and plastics industry. To date, 10 Plastic Parks have received approval across various states.