Govt to soon announce new PLI scheme for chemicals sector, industry to give inputs
NEW DELHI, 30 September 2020: Mr Mansukh Mandaviya, Minister of State for Chemicals and Fertilizers, Govt of India today said Atmanirbharta or self-reliance in chemicals sector calls for more mutual cooperative efforts between the industry and government.
Addressing a webinar ‘Government’s Role in the Growth of Specialty Chemicals industry in India’, during the ‘Specialty Chem 2020,’ organized by FICCI, Mr Mandaviya said, “We need to move towards an Atmanirbhar Bharat. It cannot be done by the industries or by the government working in silos; we need to work together with cooperation. The industry should come forward with proposals and the government will provide necessary support.”
Mr Mandaviya further stated that the government is in the process of launching a PLI scheme (Production Linked Incentive) for the chemical sector. “I urge the industry to come forward and recommend the required changes. This scheme is for the benefit of industry and you (industry) should highlight the key areas on which we can work to make it effective,” he emphasized.
He further said that we don’t want to be dependent on imports of basic chemicals. The PLI scheme will help the sector to identify those import-dependent chemicals and work towards producing them within the country.
In order to promote further private sector expansion in the sector, Mr Mandaviya suggested FICCI and other industry players to develop a model to identify the land blocks for setting up new chemical industry or chemical parks in the country. “We will make necessary supportive changes in the existing laws or create new schemes if required to support these initiatives. Our government is pro-poor, pro-farmers but also an industry- friendly government,” he added.
Mr Deepak C Mehta, Chairman, FICCI Chemical Committee and CMD, Deepak Nitrite Ltd., said that the specialty chemicals demand, and usage is in direct proportion to the improvement of quality of life, including better health and more comfort. “By announcing the PLI scheme for the sector, the government wants to ensure that India becomes Atmanirbhar and the gap in demand-supply in specialty chemicals is closed by the investments that the sector brings in,” he added.
Mr Kamal Nanavaty, President, Reliance Industries Limited said emphasized on the need to develop an in-depth home-grown R&D in the industry, which will not only make the sector self-sufficient but also an export-oriented hub. He also urged the government on launching a thorough audit and safety program for the industry.
Mr Ravi Goenka, President, Indian Chemical Council (ICC) said that the chemicals industry is expected to double to $300 bn in revenues in the next few years, out of which at least half will come from the Specialty Chemicals industry, which is indicative of a huge opportunity.
Mr Sridhar Venkiteswaran, CEO, Avalon Consulting and Mr Rakesh Bhartia, former CEO, India Glycol also shared their perspective on the future of chemicals industry in India.