In a bid to streamline and synchronise the key industrial sectors of petrochemicals and chemicals, the Government of India is working towards developing a comprehensive integrated policy for the two key sectors.

Speaking on the sidelines of India Chem 2018 - Industry Meet in Ahmedabad on Tuesday, P Raghavendra Rao, Secretary, Department of Chemicals and Petrochemicals, Government of India, stated that the Government is in consultations with stakeholders to revamp and redraft the existing national policy on petrochemicals, which was formulated in 2007.

"Our attempt is to redraft the existing petrochemical policy that was formulated in 2007 as well as the chemical policy, which has been in the draft stage for quite long but not yet been finalised. Our latest thinking is that based on the inputs that we get from various sources, there is a need to come up with a comprehensive integrated policy for chemicals and petrochemicals," Rao said.

However, it remains unclear what will be the fate of the units that have come up or are at the implementation stage under the existing policies.

"You can't see petrochemicals and chemicals in isolation from industrial policy and manufacturing policy. What we need to bring in is a policy that has to be in tune with sectors. In the policy, we are laying special emphasis on those issues which are specific to chemicals and petrochemicals," he said.

Rao, however, clarified that an amended policy for Petroleum, Chemicals and Petrochemicals Industrial Region (PCPIR) is also under consultation and will be finalised within the current financial year 2018-19.

"The existing PCPIRs are facing a lot of issues in terms of infrastructure, new investments, feedstock issues and also in terms of incentives. We are having a lot of consultation with the stakeholders to address these issues," Rao said, adding that out of the four approved PCPIRs each in Gujarat, Andhra Pradesh, Odisha and Tamil Nadu, the one in Gujarat has taken off reasonably well, while others were still attempting to get the momentum.

Notably, Rao stated that a delegation had recently gone to Singapore to understand and take inputs in this context.

Underlining the emerging needs of the industry in India, the Secretary added that the potential is huge for chemicals and petrochemicals sector as the total petrochemicals installed capacity is likely to jump from 22 million tonnes to about 31-32 million tonnes by 2025 with projects worth about 9 million tonnes of capacities being at various stages of completion.

"Looking at the growing requirement of the industry, we can say India will need about five crackers of 1.5 million tonnes capacity each by 2025, meaning one new cracker every year that will cost roughly about Rs 20,000 crore," he added.

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