Lok Sabha Question No. 898 (UNSTARRED), answered on 2024-11-29
Subject: India Chem, 2024
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Jagdambika Pal, Smt. Shobhanaben Mahendrasinh Baraiya, Shri Pradeep Kumar Singh, Shri Vijay Baghel, Shri Ganesh Singh, Shri Vishweshwar Hegde Kageri, Shri Yogender Chandolia, Shri Parbhubhai Nagarbhai Vasava, Shri Janardan Mishra, Shri Ravindra Shukla Alias Ravi Kishan, Shri Hasmukhbhai Somabhai Patel, Shri Basavaraj Bommai, Shri Miteshbhai Rameshbhai Patel, Shri Khagen Murmu, Shri Mukesh Rajput, Smt. Aparajita Sarangi, Shri Parshottambhai Rupala

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

## LOK SABHA UNSTARRED QUESTION NO. 898

ANSWERED ON:29.11.2024

## INDIA CHEM, 2024

898. SHRI BASAVARAJ BOMMAI

SHRI PARBHUBHAI NAGARBHAI VASAVA

- SHRI PRADEEP KUMAR SINGH
- SHRI VISHWESHWAR HEGDE KAGERI
- SHRI GANESH SINGH
- SHRI VIJAY BAGHEL
- SHRI YOGENDER CHANDOLIA
- SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN
- SHRI MUKESH RAJPUT
- SHRI JANARDAN MISHRA
- SHRI PARSHOTTAMBHAI RUPALA
- SHRI HASMUKHBHAI SOMABHAI PATEL
- SMT. SHOBHANABEN MAHENDRASINH BARAIYA
- SHRI JAGDAMBIKA PAL
- SHIR KHAGEN MURMU
- SMT. APARAJITY SARANGI
- SHRI MITESH PATEL BAKABHAI

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

- (a) the salient features of 13 th edition of India Chem 2024;
- (b) the role of Chemical and Petrochemical sector in economic growth of the automotive, construction and healthcare sectors;
- (c) whether the measures are being taken by the Government to support the Chemical Industry to increase production and achieve the target of five trillion economy;
- (d) if so, the details of such Scheme formulated by the Government; and
- (e) the name of State leading in Petrochemical production alongwith the role played by Gujarat in the same?

## ANSWER

## THE MINISTER OF STATE FOR CHEMICALS AND FERTILIZERS

(SMT. ANUPRIYA PATEL)

(a): Department of Chemicals and Petrochemicals organised the 13 th edition of the mega event 'India Chem 2024", an exhibition cum conference during 17 th -19 th October, 2024, in Mumbai. The key objectives of India Chem 2024 were to showcase the opportunities being offered by rapidly growing Indian Chemicals and Petrochemicals Industry and various Government initiatives for accelerating  growth  in  the  sector  and  provide  a  platform  for  investors,  both  domestic  and international  and  other  stakeholders  to  interact  and  forge  alliances.  The  event  highlighted  the investment potential in Indian Chemicals & Petrochemicals Industry to support 'Make in India' initiative.  It  also  provided  a  platform  for  collaboration  and  business  expansion  of  foreign companies in India.

The event saw participation from 172 exhibitors, including 49 international exhibitors and attracted 78 global CEOs, 135 speakers, and 689 foreign participants, 1,115 Indian delegates and 8,720 business visitors. There were sector specific sessions on Dyes, Agrochemicals, Petrochemicals as also Process, Plants and Machinery. Besides, there were dedicated sessions focusing on region specific issues including the India-EU, India-East Asia, India-US and India-Russia Chemicals & Petrochemicals  Forums,  bringing  together  stakeholders  from  each  of  these  regions. A  Global CEOs' Conclave, presided over by the Union Minister for Chemicals & Fertilizers was organized during the event wherein industry leaders from across the globe discussed the opportunities and challenges of the Indian chemical industry. Netherlands was the Partner Country for this edition, and  several  Indian  states,  including  Gujarat,  Odisha,  Andhra  Pradesh,  Madhya  Pradesh,  and Rajasthan, featured as Partner States. On its third and final day, the event hosted an engaging job fair  featuring  leading  chemical  companies  from  different  sectors  and  students  from  CIPET  Central Institute of Plastic Engineering and Technology. During the job fair, the companies made presentations on the details of skill required by them for different roles and the students got an opportunity to interact with the industry to explore possible career prospect.

(b): The Chemical and Petrochemical sector plays a pivotal role in the economic growth of industries like automotive, construction, and healthcare by providing essential materials, products, and technologies.

Automotive industry is one of the largest consumers of chemicals and petrochemicals in India. Petrochemicals such as polymers, plastics, and synthetic rubbers are essential for manufacturing automotive components like bumpers, dashboards, seats, and tires. Materials like polypropylene (PP), polyvinyl chloride (PVC), and polyurethane (PU) are widely used in vehicle production. Refined  petrochemical  products  such  as  lubricants  and  motor  oils  are  vital  for  the  proper functioning  of  vehicles. Additionally,  fuel  additives  improve  engine  efficiency  and  emissions control. In construction, chemicals contribute to the production of materials like adhesives, paints, and insulation material, as well as high-performance polymers and coatings that enhance building durability and energy efficiency. The healthcare sector relies on chemicals for producing medical devices,  pharmaceuticals,  and  diagnostic  tools,  including  Active  pharmaceutical  ingredients (APIs), polymers used in medical devices like syringes, sterilization materials and materials for personal protective equipment (PPE).

Overall, the Chemical and Petrochemical sector serves as the backbone of these industries, driving technological advancements, economic growth, and sustainable practices.

(c)&(d):Department of Chemicals and Petrochemicals has been taking various measures to support the Chemicals and Petrochemicals Industry to promote investment and innovation in this sector. The measures are as follows:

Petroleum,  Chemicals  and  Petrochemicals  Investment  Regions  (PCPIR): To  attract  mega investments  in  chemicals  &  petrochemicals  sector,  Department  had  notified  the  Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) Policy. PCPIRs are conceptualized as cluster-based  model  of  Development  with  common  infrastructure  and  support  services.  Three PCPIRs have been set up at Dahej (Gujarat), Vishakhapatnam-Kakinada (Andhra Pradesh) and Paradeep (Odisha). Currently, 824 Petroleum, Chemicals, Petrochemicals and ancillary industries are functional in these PCPIRs having a cumulative investment of Rs. 2,43,000 crore and these regions have generated employment of 3.7 lakh persons.

Plastic Parks: The Department implements the Scheme for Setting up of Plastic Parks under the scheme of New Scheme of Petrochemicals. The Scheme promotes setting up of need-based Plastic Parks with requisite state-of-the-art infrastructure and enabling common facilities. The objective is to consolidate and synergize the capacities of downstream plastic processing industry to help increase investment, production and export in the sector as well as generate employment. Under the Scheme, the Government of India provides grant funding up to 50% of the project cost to the State government subject to a ceiling of Rs. 40 crore per project. In accordance with the Scheme Guidelines, 10 Plastic Parks have been approved so far and the same are at different levels of implementation.

Centre of Excellence: The Department of Chemicals and Petrochemicals has formulated a scheme on setting up of Centres of Excellence. The objective is to provide grant-in-aid to educational and research institutions to improve existing technology and promote development of new applications of polymers and plastics. The emphasis of the Scheme is on modernization and upgradation of existing manufacturing processes as well as improving the quality of products. Under the scheme, the  Government of India provides financial support up  to 50 per cent of the total project cost subject to an upper limit of Rs. 5 crores. So far, 18 CoEs have been approved under the Scheme. Earlier the CoE scheme was only available for petrochemical sector, now revised scheme includes chemicals sector also.

Chemical Promotion Development Scheme (CPDS): The objective of the scheme is to facilitate growth and development of Chemicals and Petrochemicals Industry by creation of knowledge products through studies, survey, data banks, promotional material as also to facilitate seminars, conferences, and exhibitions to facilitate development of the sector. The Scheme also promotes research and  innovation  by  awarding  outstanding  efforts in the field  of  chemicals  and petrochemicals.

Quality Control Orders (QCOs): The Department of Chemicals and Petrochemicals has initiated an exercise to make product Standards as mandatory so that both domestic manufacturers and

overseas suppliers meet the Bureau of Indian Standards (BIS) parameters in the public interest for protection of human, animal or plant health; safety of the environment; prevention of unfair trade practices and national security, under Section 16 of BIS Act, 2016. Accordingly, Quality Control Orders (QCOs) are being notified in the Gazette of India making these standards mandatory. So far, QCOs for 72 Chemicals & Petrochemicals have  been notified by the Department.

New  Harmonized  System  of  Nomenclature  (HSN)  Codes: Department  of  Chemical  & Petrochemicals has also initiated an exercise for assigning dedicated HSN codes for distinguishing different commodities so that correct data, particularly for import-export of these chemicals can be gathered, which enables targeted policy interventions such as differential rates of duty for such chemicals.

(e): The  leading  States  in  Petrochemical  production  are  Gujarat,  Haryana,  West  Bengal, Maharashtra and Punjab. These 5 states account for 84% of the total petrochemical production in the country. The state-wise Production of Petrochemical Products (FY 2023-24) are as under:

| S. No.   | State        |   Quantity (in MT ) FY 2023-2024 | % Share of Production in India   |
|----------|--------------|----------------------------------|----------------------------------|
| 1        | Gujarat      |                         23387025 | 55.5%                            |
| 2        | Haryana      |                          4130203 | 9.8%                             |
| 3        | West Bengal  |                          3699393 | 8.8%                             |
| 4        | Maharashtra  |                          2433411 | 5.8%                             |
| 5        | Punjab       |                          1731626 | 4.1%                             |
| 7        | Other States |                          6753911 | 16%                              |
| Total    | Total        |                         42135569 | 100%                             |

Note : Production data are based on reports received from Petrochemical industries under large and medium scale category.

From the table above, it is observed that Gujarat is playing a significant role in production of petrochemicals in the country with a 55.5% share of the total production in the country, with its advanced infrastructure including strategically located ports and a robust industrial ecosystem that includes common utilities.

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