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Centre planning integrated policy for chemicals, petrochem sectors

Rutam Vora Ahmedabad | Updated on September 11, 2018 Published on September 11, 2018

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In a bid to streamline and synchronise key industrial sectors of petrochemicals and chemicals, the Centre is working on a comprehensive integrated policy for the two sectors.

Speaking on the sidelines of India Chem 2018 — Industry Meet in Ahmedabad on Tuesday, P Raghavendra Rao, Secretary, Department of Chemicals and Petrochemicals, said the government is holding consultations with stakeholders to revamp and redraft the existing National Policy on Petrochemicals, which was formulated in 2007.

Integrated policy

“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,” said Rao. “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 emphasis on issues 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 in the current financial year.

“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,” said Rao, 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.

Rao said a delegation had recently gone to Singapore to understand and take inputs in this context.

‘Huge potential’

Underlining the emerging needs of the industry in India, Rao added that the potential is huge for chemicals and petrochemicals sector as the total petrochemicals installed capacity likely to jump from 22 million tonnes now 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 ₹20,000 crore,” he added.

Published on September 11, 2018
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