Indian Petrochemical Capacity will Grow by 12-15%.

The growth rate of 40 billion dollar Indian petrochemical capacity is expected to range between 12 to 15 per cent in the next five to seven years with millions of new jobs being generated, trade body ASSOCHAM said.

In recent years, the global chemical and petrochemical industries have moved eastward towards Asia and the Middle East with major hubs being set up in these regions. This simultaneously represents a tremendous window of opportunity for Indian chemical and petrochemical industries, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

India can take advantage of this shift and attract large funds from investors keen to invest in the region near mega demand centres – India and China – it said in the study titled ‘Mark Up for Growth: PCPIR in Andhra Pradesh.’ With investments of 60 billion dollars, the Indian chemical industry employs one million people directly and indirectly.

The government has so far notified four petroleum, chemicals and petrochemical investment regions (PCPIRs) – Dahej in Gujarat, Haldia in West Bengal, Paradeep in Orissa and Vishakhapatnam in Andhra Pradesh.

The proposal of Tamil Nadu government for a PCPIR at Cuddalore has been approved by the Cabinet Secretariat and forwarded to the Cabinet Committee on Economic Affairs. Another project at Mangalore in Karnataka is at planning stage. The notified area of PCPIR in Andhra Pradesh is 603 square kilometres. There are five special economic zones (SEZs) including two multi-product SEZs, two pharma SEZs and one apparel SEZ.

Among major players who have expressed interest in setting up units here are: Hindustan Petroleum, LG Polymers, Coromandel Fertilisers, Andhra Petrochemicals, Rain Commodities, Pharma City with Pharma SEZ, Hetero Pharma SEZ, Godavari Fertilisers and Chemicals, and Nagarjuna Fertilisers and Chemicals.

With the setting up of Andhra Pradesh PCPIR, the state’s objectives of attaining growth, development and employment generation are aligned with the national objective of creating a world class infrastructure such as widening of national and state highways, rail links, upgradation of airports and seaports, improving power and water supply.

Strategic location and robust infrastructure back up the supports for domestic and global players to invest in setting up units in Andhra Pradesh PCPIR that consists of a processing and a non-processing area. The processing area occupies a minimum of 40 per cent of total area – that is about 100 square km – and includes manufacturing facilities along with logistics and other services with required infrastructure.

The non-processing area will hence occupy a maximum of 60 per cent of the total area – about 150 square km and include residential, commercial and other social and institutional infrastructure.

However, the Indian industry faces major competition from hubs in China, Singapore and the Middle East to grab a shareof the investment pie. India needs to maintain certain levels of competitiveness and cost effectiveness to tackle this competition.

Thus PCPIRs – with their integrated and resource efficient approach – are vital for the Indian chemicals and petrochemicals industry, said the ASSOCHAM.

Source : fibre2fashion.com