BENGALURU: Two days after he announced that the Union Government had cleared the setting up of a plastic park in Mangaluru, Union Minister for Chemicals and Fertilisers, DV Sadananda Gowda, urged the state to submit a detailed project report at the earliest.
Pointing out that the Centre will fund 50 per cent of the project cost, with Rs 40 crore to be released in four instalments, Gowda said he has written to the State Government to get final clearances within six months for the project so the scheme can be implemented without delay.
"The plastic park will be an ecosystem enabling common facilities - like characterisation, prototyping and virtualization, non-destructive material testing, incubation, training, warehousing, plastic recycling, tooling design, research & development, etc - to assist the plastics sector move up the value chain and contribute to the economy more effectively," Sadananda Gowda said.
"The Union Government will fund 50 per cent of the project cost, up to Rs 40 crore. The rest can be funded by the State Government via its existing entities like Karnataka State Industrial Development Corporation (KSIDC) or through a new special purpose vehicle," he added.
According to the Union government’s scheme guidelines, the equity contribution of the State Government shall be at least 26 per cent of the cash equity of the SPV (excluding value of any land given as equity).