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| Six Guj-based polymer processors to invest in Assam plastic park |
| BS Reporter / Mumbai/ Ahmedabad Jun 22, 2010, 00:38 IST |
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At least six or seven plastic processing companies from the state have decided to set up units at the upcoming Tinsukia Plastic Park in Assam for a total investment close to Rs 150 crore in response to Assam Industrial Development Corporation Ltd's (AIDCL) campaign to attract investors to the Plastic Park project.
"Already around six or seven Gujarat based processors have signed the memorandum of understanding with the AIDCL", said Bipin Shah, vice president Plastindia Foundation,the apex body of major associations,organisations,and institutions connected with plastics processing. Plastindia was helping AIDCL attract potential investors and had held a meeting with the plastic processors in the state in April. Shah,however, did not have further details on the companies.
Jigish Doshi, chairman of the Gujarat State Plastics Manufacturers Association(GSPMA), also confirmed the development. Ravi Kapoor, commissioner & secretary, department of industries & commerce, government of Assam could not be reached for a comment.
A GSPMA official informed that the net investment in the Tinsukia Plastic Park from Gujarat based companies could be to the tune of Rs150-200 crore. Shah added that, "AIDCL is looking at investors from across the country, primarily from Maharashtra and Gujarat. It expects to attract around Rs 5000 crore worth investments in the park".
The AIDCL is in the process of setting up a 360 acre Plastic Park in Tinsukia, north of Guwahati that will use raw material produced at the Brahmaputra Crackers and Polymers Limited (BCPL) that is likely to come onstream in around a year's time. The idea is to utilise the 200,000 tonnes per annum polymer produced at the BCPL to produce finished products that can be sold in neighbouring markets of Myanmar, Bangladesh, Bhutan among other regions in South East Asia.
The hilly states are an attractive destination for the small and medium companies from other regions who look forward to setting up units there to take advantage of the excise and other duty incentives offered by these states. In Assam, for example, apart from value added tax(VAT) exemption,micro industries would also enjoy 30 per cent interest subsidy on term loans, apart from a 30 per cent power subsidy.
Gujarat has already seen the exodus of polymer processing units out to tax-free havens like Himachal Pradesh and Uttarakhand and neighbouring Daman-Silvassa, blaming high power tariffs. Of the 7000 odd units in the state, mainly small and medium units, nearly 10 per cent started moving out of the state around five years back.
The state accounts for nearly 60 per cent of the net polymer production of the country.
India's net production capacity is around six million tonnes per annum. However, at nearly 90,000 tonnes per annum (tpa), Gujarat currently accounts for only 15 per cent of all-India polymer processing.
When complete, the Tinsukia Plastic Park is expected to house at least 1250 downstream plastic processing units generating over one lakh direct and indirect employment.
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