Home / Knowledge / News / Textiles / Indian petrochemical capacity will grow by 12-15%
Indian petrochemical capacity will grow by 12-15%
16
Feb '12
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.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM)

Must ReadView All

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

RBI Governor Urjit Patel and other officials addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

RBI withdraws the incremental CRR from Dec 10

The Reserve Bank of India (RBI) has decided to withdraw the...

Textiles | On 7th Dec 2016

‘Price-competitiveness is crucial for China yarn market’

Kikani Exports, India based yarn supplier with 12 years of experience ...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search