Industry focus
Plastics and Packaging
Machinery-led projects where quotations, power and the consent category drive the file, and where the subsidy claim stands or falls on how the investment is evidenced.
Injection and blow moulding units, PP and HDPE woven sack plants, films and laminates, PET preforms and containers, corrugated boxes and other packaging converters serve the state's food, cement, steel and consumer sectors. The project cost is mostly machines, often imported or supplied with a dealer margin that the department will scrutinise.
These units are also where we see FCI subsidy claims rejected for evidential reasons: invoices that do not match the chartered engineer's certificate, payments without bank trail, or ineligible items included. We build the claim file from the first machine purchase.
Project finance considerations
- Term loan for moulding, extrusion or converting lines, with the DPR built on machine-hour capacity, conversion cost and raw material price linkage.
- Letter of credit limits for imported machinery.
- Working capital for polymer inventory and converter receivables.
- Expansion finance for additional lines, reconciled to existing performance.
Government incentive considerations
- Classification by unit type, size and product; some packaging and value-added products may be Thrust-sector with minimum investment conditions.
- FCI subsidy on eligible plant investment; GST, freight and installation treatment confirmed against the policy.
- Interest subsidy within the annual ceiling.
- Electricity duty exemption for power-intensive processes, where applicable.
- Exclusion list checked for any restricted plastic products.
Incentive eligibility depends on the activity, block location, investment, unit type (new, expansion, diversification or modernisation), dates and the policy's exclusion list. Not every incentive applies to every project, and the FCI subsidy and Net SGST reimbursement routes under IDP 2024-30 are alternatives, not a combination.
Documentation we typically prepare
- DPR with machine-hour capacity and conversion cost assumptions
- CMA data for working capital and LC limits
- Machinery quotations, proforma invoices and import documents
- Layout and power load
- Entity documents and registrations
- Investment certificates and bank trail at claim stage
Regulatory and approval considerations
- Consent to Establish and Consent to Operate from CECB, category depending on process and scale.
- Plastic waste management registration where applicable, including producer and brand-owner obligations.
- Factory licence where thresholds are met.
- Electricity load sanction and electrical inspector clearance.
- Food-contact packaging requirements for relevant products.
- Legal metrology for packed products.
Where projects in this sector commonly lose time
- Imported machine valuation and bank trail not in the form the department accepts.
- Dealer invoices including items the policy treats as ineligible.
- Plastic waste management obligations not registered before production.
- Power load applied for below the connected load of the machine list.
Frequently asked questions
Are single-use plastic products eligible?
Products restricted under the plastic waste rules are not viable projects regardless of incentive, and the policy's exclusion list is checked for restricted items. Eligible packaging and industrial products are assessed on the normal classification.
Does imported machinery count for FCI subsidy?
Eligible plant investment includes machinery evidenced by invoice and bank trail, subject to the policy's rules on what is included. Import documents, duty and freight treatment are confirmed against the policy.
What consent category applies to a moulding unit?
It depends on the process, scale and any printing or coating. We confirm the category against the current classification before applying.
Planning a plastics and packaging project in Chhattisgarh?
Share the district, capacity and investment outline. We will map the finance, the incentives and the approvals for that specific project.