Lok Sabha Question No. 352 (UNSTARRED), answered on 2019-11-19
Subject: Import of Petrochemicals
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Subhash Ramrao Bhamre, Supriya Sadanand Sule, Amol Ramsing Kolhe, Sunil Dattatray Tatkare, Kuldeep Rai Sharma, Mohanbhai Kalyanji Kundariya, A.K.P. Chinraj

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF CHEMICALS AND PETROCHEMICALS

## LOK SABHA UNSTARRED QUESTION NO. 352 TO BE ANSWERED ON 19-11-2019

## Import of Petrochemicals

352.  Shri Subhash Ramrao Bhamre: Shrimati Supriya Sule: Dr. Amol Ramsing  Kolhe: Shri Sunil Dattatray: Shri Kuldeep Rai Sharma: Shri Mohanbhai Kalyanji Kundariya: Shri A.K.P Chinraj

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- a) the details of domestic production of major chemicals and petrochemicals in the country during each  of the last three years and the current year;
- b) whether imports of chemicals and petrochemicals has touched a whopping Rs 1.21 lakh crore annually in 2018-19;
- c) if so, the details thereof and the reasons therefor;
- d) whether the Government is considering to attract investments in this sector and if so, the details thereof; and
- e) whether the Government is planning to boost domestic production of chemicals and petrochemicals to cut down import and make India a manufacturing hub for the sector and if so, the steps taken in this direction and the time by which it is likely to be accomplished?

## ANSWER

## MINISTER FOR CHEMICALS & FERTILIZERS (SHRI D.V. SADANANDA GOWDA)

## (a) The details of production of basic major chemicals are as below :

| Product                     |   2016-2017 |   2017-2018 |   2018-19 |   Quantity ('000mt) 2019-20 (up to Q2)* |
|-----------------------------|-------------|-------------|-----------|-----------------------------------------|
| Alkali Chemicals            |        7205 |        7924 |      8382 |                                    4299 |
| Inorganic Chemicals         |        1163 |        1184 |      1184 |                                     557 |
| Organic Chemicals           |        1662 |        1830 |      1917 |                                     937 |
| Pesticides and Insecticides |         215 |         213 |       218 |                                      93 |
| Dyes & Pigments             |         322 |         369 |       383 |                                     191 |
| Total                       |       10567 |       11520 |     12084 |                                    6078 |

(*provisional)

- (b) The details of production of basic major petrochemicals are as below:

| Product                           |   2016-2017 |   2017-2018 |   2018-19 |   Quantity ('000mt) 2019-20 |
|-----------------------------------|-------------|-------------|-----------|-----------------------------|
| Synthetic fibre                   |        3599 |        3625 |      3675 |                        1972 |
| Polymers                          |        9163 |        9276 |     12115 |                        5968 |
| Synthetic rubber                  |         285 |         308 |       350 |                         178 |
| Synthetic detergent intermediates |         664 |         743 |       687 |                         337 |
| Performance plastics              |        1799 |        1719 |      1605 |                         829 |
| Fibre Intermediate                |        4588 |        5068 |      5614 |                        2511 |
| Olefins                           |        8940 |       10304 |     11535 |                        5678 |
| Aromatics                         |        5374 |        5388 |      5622 |                        2114 |
| Other Petrochemicals              |        2192 |        2128 |      2292 |                        1169 |
| Total                             |       36604 |       38559 |     43495 |                       20756 |

(*provisional)

- (b)  Yes, the import of chemicals and petrochemicals for the year 2018-19 stands at Rs.  3.63  lakh  crore  (as  on  dated  31-5-2019)  as  per  Directorate  General  of Commercial Intelligence and Statistics (DGCIS).
- (c)  The production of domestic chemical and petrochemical is less than the demand for the  same  in  the  country.  This  is  because  chemical  and  petrochemical  sector  is  a highly  capital-intensive  sector  having  long  gestation  period  for  starting  operations. Shortage of feedstock/raw materials at competitive prices and high factor costs of production  as  compared  to  neighbouring  countries  are  same  of  the  factors  which have led to increase in imports to meet the demand.
- (d)  Yes,  the  Government  is  considering  attracting  investments  in  this  sector  and following measures are being taken:
- i. Chemicals  &  Petrochemicals  Sector  is  broadly  de-licensed  and  de-regulated. 100% FDI is permissible under automatic route.
- ii. Four  Petroleum,  Chemicals  and  Petrochemicals  Investment  Regions  (PCPIRs) have been notified in the country to give boost to the sector.
- iii. Various  other  schemes  are  implemented  and  initiatives  taken  to  promote investments in the sector for boosting domestic production.
- (e)  To boost the domestic production of chemicals and petrochemicals and cut down imports and make India a manufacturing hub for the sector, the 'Vision document 2024' of Department of Chemicals & Petrochemicals has been prepared to meet the growing domestic demand of chemicals and petrochemicals.

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