PCPIR Rejuvenation Study launched at Summit on Global Chemicals & Petrochemicals Manufacturing Hubs in India 2019
The chemicals market in India has grown at 3% over the last decade
In endeavour to strive robust advancement in the Indian Chemical & Petrochemical Industry, Federation of Indian Chambers of Commerce & Industry (FICCI) jointly with the Ministry of Chemicals and Fertilizers, Government of India launched PCPIR Rejuvenation Study at the Summit on Global Chemicals & Petrochemicals Manufacturing Hubs in India 2019.
The PCPIR Rejuvenation Study, by FICCI and their knowledge partner Mott MacDonald, highlights the continuous development of Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR), its current scenario and government’s roadmap for policy interventions to rejuvenate investment in PCPIRs. It has stated that India is the sixth largest producer of chemicals in the world and contributes 3.4% to the global chemical industry. The chemicals market in India has grown at 3% over the last decade. The industry comprises of 13.38% of manufacturing GVA and 2.39% of National GVA which employs about 2 million people.
The Government of India adopted a policy in 2007 to set up Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR). Currently there are four identified regions – Dahej (Gujarat), Vishakhapatnam (Andhra Pradesh), Paradip (Odisha) and Cuddalore (Tamil Nadu). However, due to a wide range of issues (ranging from overall infrastructure development to project financing), attracting investment to Vizag, Paradip and Cuddalore has been relatively challenging in comparison to Dahej. Considering the overall scenario, the government has now planned for policy interventions to rejuvenate investment in PCPIRs.
Speaking about extraordinary role of Chemicals and Petrochemicals Industry in shaping the other industries, D.V. Sadananda Gowda, Minister of Chemicals & Fertilizers, Government of India said, “The Indian Chemical & Petrochemical Industry is currently witnessing a rapid expansion. The untapped potential of this industry needs to be addressed which holds the power to bring a revolution in the country. The industry is expected to grow at a CAGR of 9.3% from USD 163 billion to USD 304 billion market by 2025, which not only emphasizes the important role it can play in the growth of Indian economy but to become the global leaders in petrochemicals and emerge itself as world’s next manufacturing hub. We are honoured to partner with FICCI to host first of its kind Summit on Global Chemicals & Petrochemicals Manufacturing Hubs in India 2019.”
Commenting on the significance of the report launch, Deepak C. Mehta, Chairman – FICCI Chemical Industry Committee and CMD, Deepak Nitrite said, “It is my privilege to be a part of Summit on Global Chemicals & Petrochemicals Manufacturing Hubs in India 2019 and meet the entire industry fraternity at this important event. The Indian Chemical and Petrochemical industry is an integral part of the Indian economy and possess huge unrealized potential to strengthen the Indian economy. The PCPIR Rejuvenation Study connotes the chemicals market in India has grown at 3% over the last decade, current development and policy interventions to rejuvenate investment in PCPIRs.”
“The government’s initiative towards successful implementation of Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR), shoring up existing infrastructure to world class level is truly commendable. We at FICCI are really obligated to Department of Chemicals & Petrochemicals, Government of India for their valuable support and guidance in organizing the first ever summit of its kind.” he added.
Across the summit, eminent speakers from the industry like Nikhil Meswani, Executive Director, Reliance Industries, R Mukundan, Managing Director & CEO, Tata Chemicals, Sanjeev Gandhi, Members of the Board of Executive Directors, BASF SE, Walmir Soller, CEO, Braskem Europe, Prabh Das, Chairman – FICCI Petrochemical and Plastic Industry Committee, MD & CEO, HPCL Mittal Energy, amongst others were a part of it.