Govt to set up SEZ for chemical, petrochemical feedstock complex abroad

Move aimed at ensuring chemical feedstock availability for Indian companies

The department of chemicals and petrochemicals proposes to set up chemical and petrochemical complex in overseas countries to ensure the availability of primary chemicals raw materials exclusively for the Indian companies.

The feedstock complex will be set in a special economic zone to be set up by Indian government in these countries , part of which will be utilised for establishing the petrochemical and chemicals feedstock.

According to officials, two countries that have been identified for this purpose are Iran and Myanmar with whom it proposes to start the dialogue for setting up such chemical feedstock complexes . According to officials, it will be a win win for both countries, one where the feedstock complex will come up and another which will import these basic raw material chemicals.

This endeavour is aimed at making India a export hub for processed and finished chemicals and not producer of basic chemicals. Thus for Iran and mayanmar, it will bring in foreign investment and employment while for India a sustainable source of raw material . This way the oil import bill will also come down as crude is the basic source of all chemicals which are generated in the process of refining of crude oil as by products.
 
Meanwhile, Iran on the other hand has evinced interest to invest in the PCPIRs (Petroleum, Chemicals and Petrochemicals Investment Regions) zone in Andhra Pradesh. This project suffered a set back as prior land allocation could not be made in the erstwhile Andhra Pradesh besides facing environmental hurdles.

However the government of Andhra Pradesh both bifurcation of Telengana has revived the project and had sought foreign investment as well. The petrochemical complex in which Iran has shown interest is proposed to be set up by Hindustan Petroleum Corporation ( HPCL)
 
The special delineated investments in PCPIRs (Petroleum, Chemicals and Petrochemicals Investment Regions) have been set up in in Dahej (Gujarat), Visakhapatnam and Kakinada (Andhra Pradesh), Paradip (Odisha), and Cuddalore and Nagapattinam (Tamil Nadu).

Further the ministry proposes to constitute four steering committees with representation from ministries like Finance, Petroleum, Railways, Urban Development and Transport. These committees will boost investments in these regions to the tune of Rs. 7.2 lakh-crore in which the government has invested Rs 1.47 lakh crore so far.

The department has framed the National Chemical Policy for the first time owing to emerging challenges. Officials explained that the potential of the chemical sector is huge. A conservative estimate puts the growth rate at 11%, and a turnover of $224 billion by 2017. The plan envisages India to be a hub for research and development for the subcontinent and neighbouring countries.