Import duty on basic and bulk chemicals may go up

Chemical department to set up TUF in line with textile ministry

The department of chemicals proposes to recommend a hike in import duty of major basic and bulk chemicals in order to generate funds for setting up of technology upgradation fund for the sector.

According to official close to the development, the technology upgradation and innovation fund will be set up for the chemical sector in line with textile sector to promote green technology and processes in the chemical companies.

These chemicals will be the ones which are basically imported due to price differential rather than unavailability in the domestic market.

Besides, the department has also recommended fast clearance by the environment ministry of all projects which are aimed at achieving green processes or are in the process of upgrading themselves in line with green technology. To expedite such measures, the ministry had decided to finalise the national chemical policy soon.

The basic objective of setting up of the fund is to promote indigenous R&D, IPR creation, entrepreneurship, manufacturing, commercialising products.

Emphasis will also be given to creation of Indian intellectual property rights (IPRs) which go into international standards as well as in product manufacturing in implementation of major programs and projects as a vehicle to develop ”Brand India”.

Besides, it will make available pre venture and venture capital fund for young entrepreneurs engaged in research and development and commercialise their products. Besides, it will also facilitate e soft credit to the Indian innovative product manufacturers for domestic deployment and exports.

In the draft national chemical policy, the government envisaged identifying some focus areas, one of them is adopting green technology. Incentives for development of Green Products and Processes (biofeedstock, bio-degradable products, eco-friendly processes, etc) will also be introduced, said officials.

These could include putting in place a national policy and action plan to develop the necessary plantation industry, including industrial utility plants such as castor oil, biofuels, etc, on waste land, identifying and inventorizing all agro-wastes (e.g. molasses) and their utility as raw materials and bring in the processes for necessary commercial utilization, setting up a Centre for Green Technologies and regional ‘Centers of Excellence’, which will also partner with international technology organizations and institutes.

Besides the department it will conduct research and development as well as to develop and upgrade processes and products. In fact officials added that treating renewable resources/ agro-waste based chemical industry is of strategic national importance.

Earlier it had proposed to impose a “Chemical Up-gradation & Innovation Cess” at the rate of 0.5-1% ad-valoerm.