Gujarat plastic industry seeks special zone for high growth
Plastic industry in Gujarat wants an exclusive zone for their systematic all-round growth. Interestingly, this industry’s contribution is around 65% in the country’s total production.
By RR Goswami, TNN |
AHMEDABAD: Plastic industry in Gujarat wants an exclusive zone for their systematic all-round growth. Interestingly, this industry’s contribution is around 65% in the country’s total production. There are around 30,000 units in the country engaged in plastic manufacturing activities of which 90% are in small scale sector, which cannot afford their entry into special economic zone because of high charges says Vajubhai Vaghasia, vice-chairman, governing council to Gujarat State Plastic Manufacturers’ Association (GSPMA).
Gujarat has about 10,000 units, of which about 80% are in small-scale sector which witness an annual turnover of about Rs 7,000 crore. The country’s total turnover is Rs 38,500 crore.
However, so far neither Centre nor any state government has made an exclusive zone for the plastic industry, said Atul Kanuga, secretary, GSPMA. The government should also announce collective purchase policy for the small scale industry and also offer them an incentive and at the same time the Gujarat government in particular should reduce government taxes on power supply to small scale industry.
Because of higher power tariff in Gujarat compared to neighbouring states like Rajasthan, Madhya Pradesh and Maharashtra besides, Union Territory of Daman and Dadra Nagar Haveli, about 100 small and medium plastic making units have within last two years migrated to states like Himachal Pradesh to avail tax incentives.
If special plastic zone is set up, not only these units will heave a sigh relief in terms of manufacturing facility but they would also benefit in term of getting raw materials at their doorstep.
The plastic industry also faces shortage of skilled manpower for the industry and therefore, the state directorate of employment and training should come forward to introduce training programme for plastic industry in cooperation with GSPMA as has been done in the case of BPO, call centres, airlines industry, textiles and piped natural gas industry, Vajubhai said.
Gujarat has about 10,000 units, of which about 80% are in small-scale sector which witness an annual turnover of about Rs 7,000 crore. The country’s total turnover is Rs 38,500 crore.
However, so far neither Centre nor any state government has made an exclusive zone for the plastic industry, said Atul Kanuga, secretary, GSPMA. The government should also announce collective purchase policy for the small scale industry and also offer them an incentive and at the same time the Gujarat government in particular should reduce government taxes on power supply to small scale industry.
Because of higher power tariff in Gujarat compared to neighbouring states like Rajasthan, Madhya Pradesh and Maharashtra besides, Union Territory of Daman and Dadra Nagar Haveli, about 100 small and medium plastic making units have within last two years migrated to states like Himachal Pradesh to avail tax incentives.
If special plastic zone is set up, not only these units will heave a sigh relief in terms of manufacturing facility but they would also benefit in term of getting raw materials at their doorstep.
The plastic industry also faces shortage of skilled manpower for the industry and therefore, the state directorate of employment and training should come forward to introduce training programme for plastic industry in cooperation with GSPMA as has been done in the case of BPO, call centres, airlines industry, textiles and piped natural gas industry, Vajubhai said.
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