The government is in the process of launching a production-linked incentive (PLI) for the chemical sector to increase self-reliance in the country, Mansukh Mandaviya, Minister of State for Chemicals and Fertilisers, said on Wednesday.

Addressing a webinar on ‘Government’s Role in the Growth of Specialty Chemicals industry in India’, during the Specialty Chem 2020 organised by FICCI, Mandaviya said the country doesn’t want to be dependent on imports of basic chemicals and the PLI scheme is meant to help the sector to identify those import-dependent chemicals and work towards producing them within the country.

Atmanirbharta or self-reliance in the chemicals sector calls for more mutual cooperative efforts between the industry and government, he 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,” the Minister said.

Mandaviya urged the industry to come forward and recommend the required changes in the proposed PLI scheme. “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 stressed.

In order to promote further private sector expansion, Mandaviya said FICCI and other industry players should develop a model to identify the land blocks for setting up a 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.

Deepak C Mehta, Chairman, FICCI Chemical Committee and CMD, Deepak Nitrite Ltd, said 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.

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