The proposed project is not located within 25 kms of the standard urban area limits of a city with a population of more than 10 lakhs according to 1991 census. This condition will not apply, provided these are located within the area designated as “Industrial Area” by the State Government before July 25, 1991. If the unit is proposed to be located in a restricted location industrial license may have to be obtained.
The economic reforms initiated in 1991 brought about significant changes in the domestic petrochemical industry. Delicensing and deregulation allowed the market forces to determine investment and growth. It is now established globally that ethylene (the main building block for petrochemicals) consumption and polymer consumption in the downstream plastic articles have strong correlations with the growth of Gross Domestic Product (GDP). Polymer consumption has strong backward and forward linkages and an increase in polymer consumption has a multiplier effect on the GDP Growth.
