Sarkari Yojana
Scheme for Setting Up of Plastic Parks
About Scheme for Setting Up of Plastic Parks
The Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers, runs the “Scheme for Setting Up of Plastic Parks” to boost competitiveness, polymer absorption, and value addition in the domestic downstream plastic processing industry through a cluster-development approach. It gives a one-time grant-in-aid to set up need-based plastic parks with modern infrastructure and shared facilities. Applicants must form a distinct legal entity, mobilize equity, and procure land to carry out the project, with Special Purpose Vehicles implementing it under the Scheme Steering Committee’s coordination.
Scheme Overview
Central Government
Ministry Of Chemicals And Fertilizers
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Scheme for Setting Up of Plastic Parks, applicants must satisfy the following conditions:
The applicant must be a Special Purpose Vehicle…
The applicant must be a Special Purpose Vehicle set up by the State Government or its designated agency, together with user enterprises from the plastic sector.
It must be a distinct legal entity, typically…
It must be a distinct legal entity, typically registered as a Company under the Companies Act, 1956.
Land for the project must already be secured
Land for the project must already be secured.
This land must be legally registered or officially…
This land must be legally registered or officially transferred in the SPV's name.
The State Government/agency's equity contribution must make up…
The State Government/agency's equity contribution must make up at least 26% of the SPV's cash equity.
At least 20% of members' equity contribution, including…
At least 20% of members' equity contribution, including land cost, must be mobilized before final approval.
A dedicated Escrow or Trust and Retention Account…
A dedicated Escrow or Trust and Retention Account must be set up in a Schedule A Bank.
Formal share subscription agreements must be executed between…
Formal share subscription agreements must be executed between the SPV and all participating members. Preference
Projects planning specialized manufacturing of medium-to-high-end products get…
Projects planning specialized manufacturing of medium-to-high-end products get preference at the initial approval stage.
Benefits Provided
Scheme for Setting Up of Plastic Parks provides the following benefits to eligible applicants:
The scheme gives a grant-in-aid of up to…
The scheme gives a grant-in-aid of up to 50% of overall project cost, capped at ₹40,00,00,000/- per project.
At least 25% of this grant-in-aid must go…
At least 25% of this grant-in-aid must go toward common enabling facilities for the plastic processing industry — characterization, prototyping, testing, training, and plastic recycling.
Financial assistance also covers the SPV's administrative and…
Financial assistance also covers the SPV's administrative and management support, including the CEO's salary, up to 5% of the total grant-in-aid.
Assistance covers engaging engineers, architects, and experts for…
Assistance covers engaging engineers, architects, and experts for civil works, up to 5% of the total grant-in-aid.
The scheme covers up to 75% of soft…
The scheme covers up to 75% of soft intervention costs (awareness generation, skill development, exposure visits), capped at ₹50,00,000/- per project. Disbursal Schedule
20% is disbursed as a mobilization advance once…
20% is disbursed as a mobilization advance once the project is finally approved, financial closure achieved, and a bank guarantee submitted.
35% (second installment) releases once at least 60%…
35% (second installment) releases once at least 60% of the first installment is utilized.
35% (third installment) releases once the first installment…
35% (third installment) releases once the first installment is fully utilized and 60% of the second is used.
10% (final installment) releases once the SPV mobilizes…
10% (final installment) releases once the SPV mobilizes its full share and at least 25% of the park's units become operational. Conditions
The SPV must fully set up the Plastic…
The SPV must fully set up the Plastic Park within a strict 3-year timeline from final approval.
The SPV must take responsibility for ongoing operation…
The SPV must take responsibility for ongoing operation and maintenance of all created assets, by charging and collecting user fees from members.
Common Facility Centre services must extend beyond member…
Common Facility Centre services must extend beyond member enterprises to the broader cluster as well.
Assets acquired/created substantially from the Government grant cannot…
Assets acquired/created substantially from the Government grant cannot be disposed of without the sanctioning authority's prior approval.
The central grant may be fully recalled, with…
The central grant may be fully recalled, with penal interest, in cases of partial implementation, incomplete execution, or compromised quality standards.
Documents Required
Applicants should keep the following documents ready before starting the application:
Preliminary proposal (covering proposed location, the State agency's…
Preliminary proposal (covering proposed location, the State agency's background, conceptual background, proposed product mix, cost estimates, and readiness for execution)
Detailed Project Report
Detailed Project Report
Share subscription agreements between the SPV and its…
Share subscription agreements between the SPV and its members
Final sanction letter from the financial institution, where…
Final sanction letter from the financial institution, where external funding is planned
How to Apply
Offline Application
Applicants can apply for Scheme for Setting Up of Plastic Parks through the offline application process outlined below.
The Department of Chemicals and Petrochemicals invites preliminary…
The Department of Chemicals and Petrochemicals invites preliminary proposals from State Governments interested in setting up regional Plastic Parks; States or their designated agencies assess local needs and compile these initial proposals.
The State Government or its nominated agency (such…
The State Government or its nominated agency (such as a State Industrial Development Corporation) submits the full preliminary proposal to the Department, covering the proposed location, conceptual background, product mix, broad cost estimates, and readiness for execution.
The Scheme Steering Committee evaluates these proposals on…
The Scheme Steering Committee evaluates these proposals on merit and the State Government's financial commitment, granting selected projects "in-principle" approval, valid for exactly six months.
The applicant prepares a Detailed Project Report and…
The applicant prepares a Detailed Project Report and submits it within six months of the "in-principle" approval — this stage includes legally forming the SPV, procuring land, and achieving financial closure.
The appointed Programme Manager appraises the SPV's Detailed…
The appointed Programme Manager appraises the SPV's Detailed Project Report, focusing on financial viability, commercial sustainability, and the park's overall socio-economic impact.
The Scheme Steering Committee grants final approval based…
The Scheme Steering Committee grants final approval based on the Programme Manager's appraisal and recommendations, after which the Grant-in-aid is released against predefined milestones.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.