Lok Sabha Question No. 798 (UNSTARRED), answered on 2025-02-07
Subject: Strategies Global Competitiveness in Chemical Manufacturing
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Balya Mama Suresh Gopinath Mhatre

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## LOK SABHA UNSTARRED QUESTION NO. 798

TO BE ANSWERED ON 07/02/2025

## STRATEGIES GLOBAL COMPETITIVENESS IN CHEMICAL MANUFACTURING

## 798. SHRI BALYA MAMA SURESH GOPINATH MHATRE:

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

- (a) whether the Government is pursuing strategies to enhance the global competitiveness of  domestic  manufacturing,  fostering  the  emergence  of  leading  chemical  manufacturing companies, promoting export growth and stimulating job creation in the country;
- (b) if so, the details thereof including the strategy formulated and initiatives taken  by the Government in this regard; and
- (c) the total amount of fund (s) allocated and utilised under the said scheme in the State of Maharashtra?

## ANSWER

## MINISTER OF STATE FOR CHEMICALS AND FERTILIZERS

(SMT. ANUPRIYA PATEL)

- (a) & (b) : To enhance the global competitiveness of domestic manufacturing, fostering emergence  of  leading  chemical  manufacturing  companies,  promoting  export  growth  and stimulating  job  creation  in  the  country,  Department  of  Chemicals  &  Petrochemicals  has taken following initiatives:

## (i) Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs)

Government  of  India  has  notified  the  PCPIR  Policy  to  attract  investment  and  for generation of employment. PCPIRs promote Chemical and Petrochemical sectors in an  integrated  and  environmentally  friendly  manner  on  a  large  scale.  PCPIRs  are conceptualized in a cluster-based approach with 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) have been implemented in the States of Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej) and Odisha (Paradeep) to promote investment and industrial development in these sectors.

The status of implementation of these PCPIR projects is as under:

| Indicator   | Gujarat   | Andhra Pradesh   | Odisha   | Total   |
|-------------|-----------|------------------|----------|---------|
| Location/   | Dahej,    | Vishakhapatnam-  | Paradeep | -       |

| Region                       | Bharuch   | Kakinada   |           |          |
|------------------------------|-----------|------------|-----------|----------|
| Date of Approval             | Feb, 2009 | Feb, 2009  | Dec, 2010 | -        |
| Total Area (Sq. kms.)        | 453.00    | 640.00     | 284.15    | 1377.15  |
| Investments made (Rs. Crore) | 1,28,509  | 58,918     | 73,518    | 2,60,945 |
| Employment generated (No.)   | 2,45,140  | 86,123     | 40,000    | 3,71,263 |
| No. of Chemical Units        | 626       | 150        | 48        | 824      |

These PCPIRs have attracted a cumulative investment of Rs. 2.6 lakh crore and resulted in establishment of 824 units and generated employment to 3,71,263 persons.

## (ii) Plastic Park Scheme

The Department of Chemicals and Petrochemicals (DCPC) implements the Scheme for Setting  up  of  Plastic  Parks.  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 capacities of downstream plastic processing industry  to  help  increase  investment,  production  and  export  in  the  sector  as  well  as generate employment. Under the Scheme, Government of India provides grant funding up  to  50%  of  the  project  cost,  subject  to  a  ceiling  of  Rs  40  crores  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.

## (iii) Plastic Waste Management Centers (PWMC):

As  a  part  of  the  Department's  efforts  to  promote  sustainable  development  of  the sector,  the  Department  has  established  PWMCs  at  Bengaluru,  Bhagalpur  and Varanasi.

## (iv) Centers of Excellence (CoEs):

With the objective of promoting research and development efforts in the chemical and petrochemical sector to develop new molecules and technologies, the Department has set up Centers 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, 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.  Under  the  scheme,  the  Government  of  India provides financial support upto 50 per cent of the total project cost subject to an upper limit of Rs. 5 crores. So far, 18 CoEs have been set up under this scheme.

## (v) Foreign Direct Investment (FDI):

To  attract  foreign  direct  investment  in  the  Chemical  sector  with  the  objective  of enhanced development and self-sufficiency, there is a policy for allowing 100% FDI in the sector automatically, except for a few hazardous chemicals. In last 5 years, Rs. 42,641 crores of FDI has come into the sector.

## (vi) Skilling:

The  Central  Institute  of  Petrochemicals  Engineering  &  Technology  (CIPET)  is  a technical education institution under the Department of Chemicals & Petrochemicals, engaged in skill development, technology support, as well as academic and research activities for  the promotion  of the petrochemical and allied industry in the country. CIPET  has  47  centers  across  the  country,  which  include  8  Institutes  of  Plastics Technology (IPTs), 32 Centers for Skilling and Technical Support (CSTS), 3 Schools for  Advanced  Research  in  Polymers  (SARP)  and  4  sub-centers.  During  2023-24, CIPET  provided  training  to 66,606  persons  (5,046  long  term  professional  skill development  programmes  and  61,560  short  term  vocational  skill  development training programmes).

## (vii) Quality Control Orders :

Chemicals &  Petrochemicals imported or produced domestically may  contain impurities  that  may  be  hazardous  to  human  health,  safety  &  environment.  It  is, therefore, of paramount importance to improve the quality of Chemicals/Petrochemicals  produced  in  the  country  as  well  as  to  ensure  that  only quality chemicals are being imported. With this objective, the Department initiated an exercise to make the Standards of Chemicals/Petrochemicals mandatory to ensure that both the importers and domestic manufacturers meet the Bureau of Indian Standards (BIS)  quality  parameters.  Such  Chemicals/Petrochemicals  shall  bear  the  Standard Mark under a license to be obtained from BIS. This mechanism helps in improving the quality of these products.

## (viii) Promotional Events:

Under  the  Chemical  Promotion  and  Development  Scheme  (CPDS),  Department organizes  events  in  association  with  industry  bodies  for  attracting  investment, facilitating collaboration among industry players and promoting business to business opportunities.

(c): Of the 18 Centre of Excellence (CoE) approved so far, 3 COEs have been  set up in Maharashtra. Details of the COEs are given below:-

|   No. | Location of Centre of Excellence (CoE)   | Title                                    | Date of approval   |   GoI approved grant (Rs. crore) |   Amount sanctioned (Rs. crore) |
|-------|------------------------------------------|------------------------------------------|--------------------|----------------------------------|---------------------------------|
|     1 | National Chemical                        | Sustainable Polymer Industry to research | April, 2011        |                                6 |                               6 |

|    | Laboratory, Pune                                        | & innovation                                                                       |                |      |     |
|----|---------------------------------------------------------|------------------------------------------------------------------------------------|----------------|------|-----|
|  2 | National Chemical Laboratory, Pune                      | Specialty Polymers for Customized Additive Manufacturing                           | February, 2019 | 2.8  | 1.4 |
|  3 | Indian Rubber Manufacturers Research Association, Thane | Design and Development for Value added Toys of Rubber and Allied Finished Products | February, 2022 | 4.93 | 2.5 |

Further,  the  Department  has  set  up  two  Centres  of  Central  Institute  of  Petrochemicals for  Skilling  and  Technical  Support  (CSTS)  at Aurangabad and Chandrapur. These Centres serve the requirements of the Petrochemical and allied industry in the region by providing academic, skill development and technical

Engineering  &  Technology  (CIPET) support services.

Under the Chemical Promotion and Development Scheme (CPDS), in  Maharasthra, DCPC jointly with FICCI organised the 13 th  edition of biennial event 'India  Chem  2024'  during 17th  -  19th  October  2024  at  the  Bombay  Exhibition

Centre,  Mumbai  with  the  theme  -  'Advantage  BHARAT:  Indian  Chemicals  and Petrochemicals paving the future'. India Chem is one of the largest event in the chemical and  petrochemical  sector  in  Asia  -  Pacific  region.  This  event  focuses inter-alia  on international cooperation, boosting trade and investment, fostering  best practices etc. This event is a conference cum exhibition and is widely participated by Global and Domestic Industry,  exhibitors,  State  Governments  and  International  delegations.  The  event  saw participation  from  172  exhibitors,  including  49  international  exhibitors,  and  attracted  78 global CEOs, 135 speakers, and 689 foreign participants. A total of 1,115 Indian delegates and 8,720 business visitors participated in India Chem 2024.

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