As India aspires to become a global manufacturing hub for chemicals & petrochemicals, the Department of Chemicals and Petrochemicals intends to bring the Production Linked Incentive Scheme (PLI) to the sector. Further, the Centre proposes to redraft Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) policy guidelines.
"We have requested the industry to share their viewpoints so that the same can be fine-tuned further," said the Union Minister of State for Chemicals & Fertilizers and New and Renewable Energy Bhagwanth Khuba here on Friday at the industry meet organised jointly by the department with FICCI.
The minister said that the PLI scheme in key end-use sectors is driving growth in the Chemicals and Petrochemicals sector. "India has a huge demand for chemical and petrochemical products. Through PLI schemes with an incentive outlay of Rs 1.97 lakh crore, the Centre has recently given a thrust to promote key end-use sectors such as pharmaceuticals, telecommunication & networking equipment, automobiles, electronics, mobiles, medical devices and textiles. This will further drive the demand for chemicals and petrochemicals in the country. The tremendous growth in demand coupled with the rationalization of customs duty will attract large-scale investment in the sector. This additional production will support the entire chemical value chain in a big way. Starting from the raw materials to the finished goods, every single component in the value chain will see growth," he added.
The minister observed that the chemicals and petrochemicals sector is progressing at a steady pace and that the sector will be a major contributor in realizing the goal of making India a 5 trillion-dollar economy.
"The department wants to institutionalize the process to conduct regular meetings by involving all the stakeholders to address the major issues of the industry. Enabling frameworks, providing proper infrastructure and trade-related issues are among the major focus points of the department," he said.
The department joint secretary Susanta Kumar Purohit said that with strong growth drivers, the sector is set to grow faster than the global chemicals and petrochemicals industry.
"100% FDI is permitted through an automatic route in the Petrochemicals sector, informed the Joint Secretary. An Industry Facilitation Cell has been set up in the Department in April 2022. Over 50 industry issues have been taken up and resolved till date," he added.