Lok Sabha Question No. 3409 (UNSTARRED), answered on 2021-03-16
Subject: Boosting of Chemical Industry
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Navneet Ravi Rana

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

## LOK SABHA UNSTARRED QUESTION NO 3409 TO BE ANSWERED ON 16.03.2021

## Boosting of Chemical Industry

## 3409:   SHRIMATI NAVNEET RAVI RANA:

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

- (a) whether it is a fact that the specialty of chemical sector in India has been one of the few sectors that have remained largely unfazed by the ongoing Covid-19 slowdown;
- (b) if  so,  the  steps  taken/being  taken  by  the  Government  to  further  boost  the chemical industry in the country by creating a conducive policy structure for export and technological transfer; and
- (c) the measures taken by the Government for promoting technology that would help domestic industries for rising to global standards considering the fact that the Government's production-linked-incentive scheme and push for 'Aatmanirbhar Bharat' will continue to create demand for the chemical industry as it spans across most manufacturing sectors ?

## ANSWER

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

- (a)    The Chemical sector is delicensed and free from licensing regime except for three hazardous chemicals. Only Industrial Entrepreneur Memorandum (IEM) is required to be obtained from Department for Promotion of Industry and Internal Trade (DPIIT) for setting up  new  undertaking  or  to  carry  out  substantial  expansion  in  the  chemical  sector.

Entrepreneurs are setting up units based on techno economic feasibility, demand and supply scenario and cost of feedstock/ raw materials and selling in the free market. 100% FDI is permissible under the automatic route to boost foreign investment.

The quantum of production of Major Chemicals decreased to 69.34 lakh tonnes during 2020-21 (Up to November-2020) as compared to 80.75 lakh tonnes during the corresponding period of the previous year, recording a decline of 14.13%. Among Major Chemicals, the production of Pesticides & Insecticides has increased by 23.5% and in case of Alkali Chemicals, Inorganic Chemicals, Organic Chemicals and Dyes & Pigments production has decreased during the period as compared to the last year.

The quantum of production of Major Petrochemicals also decreased to 266.20 lakh tonnes during 2020-21 (Up to November-2020) as compared to 282.48 lakh tonnes during the corresponding period of the previous year, recording a decline of 5.76%. Production of  all  the  Major  Petrochemicals  i.e.,  Synthetic  Fibre,  Fibre  Intermediate,  Polymers, Synthetic Rubber, Performance Plastics, Aromatics and Other Petrochemicals decreased except Synthetic Detergent Intermediates and Olefins during the period as compared to the last year.

(b) & (c) The Government has notified 'Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) Policy, 2007' to provide integrated top class infrastructure in the approved four PCPIRs in different States. Steps have been taken to increase growth of  the  chemical  sector  by  rationalization  of  customs  duty  on  the  feedstock/building blocks/Intermediates  for  having  growth  along  the  complete  value  chain.  In  addition, various virtual conferences/webinar have been organized with stakeholders and overseas manufacturers  for  boosting  investment  in  chemical  sector.  Moreover,  for  promoting technological capability, acquisition of foreign technology is encouraged through foreign technology collaboration agreements which is permitted through automatic route by RBI subject  to  ceiling  on  payment  of  lumpsum  fee/royalty.  Recent  measures  such  as production-linked-incentive scheme for 13 sectors announced in the Budget 2021-22 and push for 'Aatmanirbhar Bharat' will help the growth of the chemical sector by increasing demand of chemical products.

*****