Gujarat, which was a pioneer in the industrial sector, is now getting advice to follow other states. Gujarat Chief Minister Vijay Rupani got two such pieces of advice at the inaugural function of India Chem – Gujarat 2017, that began in Gandhinagar on Thursday. One was regarding sending a proposal for Viability Gap Funding (VGF) for Dahej PCPIR, the other for having legal provisions for Ease of Doing Business (EODB) like West Bengal.
Union Minister of Chemicals and Fertilizers Ananthkumar suggested that just like other states are seeking Viability Gap Funding for Petroleum Chemical and Petrochemical Investment Regions (PCPIR) in their states, Gujarat should also seek one for its PCPIR at Dahej.
"I told Chief Minister Vijay Rupani that how other states are sending their proposal for VGF. Andhra Pradesh, Telangana, Odisha have sent the reports. Gujarat is well off so it might be hesitating. I am asking you to send a proposal for Dahej PCPIR," Ananthakumar said.
Deepak Mehta, chairman of Chemicals Committee at Federation of Indian Chambers of Commerce and Industry (FICCI) suggested that Gujarat should also provide legal backing to Ease of Doing Business, just like West Bengal.
"Last month we had met with West Bengal government and they have brought a law to ensure Ease of Doing Business in government. The bureaucracy in Gujarat is such that we do not need legal provisions but even if we follow West Bengal it will communicate," said Mehta.
However, Union Secretary for Chemicals and Petrochemicals, Rajeev Kapoor said that state environment watchdog Gujarat Pollution Control Board (GPCB) is a methodology to expedite clearance for projects that are not harming the environment and it could be replicated across the country as well.
Push for Chemical Industry boost
Captains of Chemical industry suggested a series of measures to boost the growth of the sector in the country. FICCI Chairman and Chairman of Zydus Cadila Pankaj Patel said the country needs better logistics, infrastructure, quality standards and sensitivity towards the environment.
Deepak Mehta, chairman of Ahmedabad-based Deepak Nitrate, said the country needs to look at marine transportation to make logistics efficient. "The logistics cost between the US and India is lower than between Bombay and Baroda," he said. He urged Gujarat Chief Minister to ensure that cities develop around Dahej so that skilled human resources are available.
He also suggested reviving of bodies such as Gujarat Industrial Investment Corporation, which would invest on behalf of the government and bring in foreign investors.
Union Minister for Chemicals and Fertilizers Ananthakumar suggested setting up of Central Institutes of Chemical Engineering and Technology (CICET) on the lines for plastic industry. Gujarat Chief Minister Vijay Rupani announced all the support for CICET. "You send us a proposal. We will reply in a week," said Rupani.
Union Secretary of Chemicals and Fertilizers, Rajeev Kapoor also had a series of steps that could provide chemical industries a momentum. He warned against the increasing reliance on imports of raw materials and intermediaries as well as Free Trade Agreements (FTA) with blocks like ASEAN which makes local production uncompetitive as the import duty on the final product is lower than on raw materials or intermediaries. He also cautioned against sub-standard imports and called for setting of production standards for the industry.
Union Minister of State for Chemicals and Fertilizers Mansukh Mandaviya said that the present NDA government has corrected the inverted duty structure, which will boost domestic production.
INDIA CHEMICALS MARKET
In 2016: $155 bn
7th largest globally
Estimated CAGR : 9%
Size by 2025: $250
India' Speciality Chemicals Market
Indian market: $30 bn
CAGR growth: 13%
Size by 2025: $85 bn
Gujarat's Share
Petro Chemical production: 52%
Other Chemicals: 35%
Exports : 18%
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