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Government plans hubs, other measures to boost chemical industry

The Centre is planning to make all the 22 refineries in the country as the nerve centres.

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The government has proposed to set up chemical hubs across various states, and is also going to start Central Institute of Chemical Engineering and Technology (CICET) along the lines of Central Institute of Plastic Engineering and Technology (Cipet) to cater to the industry.

The Centre is planning to make all the 22 refineries in the country as the nerve centres. To being with, the government will start with five CICET centres and the Cipet will work as a mentor organisation, said Ananth Kumar, Union Minister for Chemicals and Fertilizers.

"From a consuming economy, India needs to become a producing economy, even in chemical and petro-chemical sector. We have to make a paradigm shift. We have decided in the ministry that we are going to make all the 22 refineries in the country as the nerve centres, and petro-chemical complexes, crackers will come around surrounding them so that we can handle infrastructural, environment and logistical issues together. If you have scattered chemical industry in the country, then it will be very difficult to manage all these important issues. Our refineries should not only be producing fuels but they should be one of the tipping points for value addition," the minister said at the launch event for India Chem 2016, which will be held between September 1-3 in Mumbai.

He said there is a need to take certain measures to make India a producing economy. "The government proposes that we will create chemical hubs in the country. We have 22 refineries and we will create chemical hubs state by state. When I speak of creating hubs, one of the major challenges is how to get the clearances from the environmental ministry and that too not for a greenfield industry but for a brownfield industry to expand. I had a meeting recently with Minister of Environment and Forests Prakash Javdekar. I want to give an assurance to all the chemical industry that in a cluster manner, if the chemical industry comes forward and undertakes that they will adhere to all environmental parameters and will safeguard the environment, then I assure you that we will facilitate the brownfield expansion clearances for you. For that, I am announcing one special division for this facilitation in the Ministry of Chemical and Fertilizers, but there has to be no compromises on environment projection," Kumar said.

Another major challenge before the chemical industry, he said, is the infrastructure facilities from the state government. "We are going to provide you (industry) adequate infrastructure like railways, highways, water, communication and coordinate between the union and state governments. Third important challenge is human resources. We have polytechnics and engineering courses in chemical engineering. On Thursday, I am proposing to have one specialised institution for chemical engineering and technology. We have one for plastics like CIPET for the sake chemical and petro-chemical industry, we are now going to start CICET. To being with, we will start with five centres and to make this happen speedily, CIPET would be the mentor organisation and these institutions will be developed in a kangaroo manner," said Kumar.

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