Lok Sabha Question No. 873 (UNSTARRED), answered on 2024-11-29
Subject: Chemicals and Petrochemicals Industry
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Smt. Bharti Pardhi, Shri Arvind Ganpat Sawant, Shri Shrirang Appa Chandu Barne

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

## LOK SABHA UNSTARRED QUESTION NO. 873

ANSWERED ON:29.11.2024

## CHEMICALS AND PETROCHEMICALS INDUSTRY

873.    SHRI SHRIRANG APPA CHANDU BARNE:

SMT. BHARTI PARDHI: SHRI ARVIND GANPAT SAWANT:

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

- (a) whether  the  chemicals  and  petrochemicals  industry  has  been  facing  challenges  in boosting its growth;
- (b) if so, the facts in this regard;
- (c) whether  Government  interventions  are  needed  to  address  challenges  to  boost  the sector's growth;
- (d) if so, the steps taken by the Union Government in this regard;
- (e) whether the Chemicals and Petrochemicals Industry requested the Union Government for Production-Linked Incentive (PLI) scheme to boost manufacturing and reduce the import; and
- (f) if so, the action taken by the Union Government to give production-linked incentive to the chemical and petrochemicals sector and the time by which the final decision is likely to be taken in this regard?

## ANSWER

## THE MINISTER OF STATE FOR CHEMICALS AND FERTILIZERS

(SMT. ANUPRIYA PATEL)

(a)&(b):  The chemicals and petrochemicals industry in India has been experiencing significant growth in recent years, driven by factors such as increasing domestic demand, government initiatives, and foreign investments. As per current CAGR of 6.29% (on the basis of Annual Survey of Industries), the chemical sector market is estimated to be of $ 185 Bn (Rs.15,52,421 Cr) in 2023-24. Various Government initiatives focusing on 'Make in India' have the potential to accelerate the growth further.

(c)&(d):  Government is taking various steps to boost the sector's growth like:

-  The Department of Chemicals and Petrochemicals (DCPC) implements the Scheme for  Setting  up  of  Plastic  Parks  under  the  umbrella  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. In accordance with the Scheme Guidelines, 10 Plastic  Parks have been approved so far and the same are at different levels of implementation.

-  With the objective of promoting research and development efforts in the chemical and petrochemical sector to develop new molecules and technologies, the Department of Chemicals  and  Petrochemicals  has  formulated  a  New  Scheme  of  Petrochemicals, which includes a sub-scheme on setting up of Centres of Excellence. The objective of the  scheme  is  to  provide  grant-in-aid  to  educational  and  research  institutions  to improve  existing  technology  and  promote  development  of  new  applications  of polymers, chemicals and plastics. The emphasis of the Scheme is on modernization and upgradation of existing manufacturing processes as well as improving the quality of products. So far, 18 CoEs have been approved under the Scheme.
-  Government of India has notified the PCPIR Policy, 2007 to attract investment and for the  generation  of  employment  in  the  Petroleum,  Chemical  and  Petrochemical Investment  Regions  (PCPIRs).  PCPIRs  promote  the  Chemical  and  Petrochemical sectors in an integrated and environmentally friendly manner on a large scale. PCPIRs are conceptualized in a cluster- based approach with high-class common infrastructure and support services to provide a competitive environment conducive for setting up businesses.  At  present  three  Petroleum,  Chemical  and  Petrochemical  Investment Regions (PCPIRs) are being implemented in the States of Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej) and Odisha (Paradeep) to promote investment  and  industrial  development  in  these  sectors.These  PCPIRs  has  attracted investment  of  Rs.  2.6  Lakh  Crore  in  Petroleum,  Chemicals,  Petrochemicals  and ancillary industries and generated employment to 3.7 Lakh persons.

(e)&(f):  Yes  Sir,  request  to  give  Production-Linked  Incentive  (PLI)  to  the  chemical and  petrochemicals  sector  has  been  received  from  the  Industry. A  decision  will  be taken on the same after due analysis and consideration.

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