The government will consider bringing in the production-linked incentive (PLI) scheme for the chemicals and petrochemicals sector to make the country a manufacturing hub in this segment, Finance Minister Nirmala Sitharaman said Thursday.
Stating that the government is focused on green growth and becoming energy independent by 2047, Sitharaman said India aims to achieve net zero by 2070, but cannot achieve the goal unless each sector and industry contributes towards it.
“We are in favour of India becoming a manufacturing hub and we will consider the PLI scheme also for the chemicals and petrochemicals sector,” she said at FICCI’s Global Chemicals and Petrochemicals Manufacturing Hubs in India Summit.
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In view of stringent pollution control regulations and rising labour cost, she said global manufacturers in the chemical industry are looking at diversifying their products and production capability and India stands out as an alternative destination for manufacturing. “If viable options exist, it exists in such markets where there is a domestic buffer and beyond which there is an export potential. So that is where the government’s policies have been facilitating,” she said.
The Finance Minister said the industry has great potential and should create manufacturing capacity keeping in mind sustainability, carbon emission, general pollution and groundwater pollution, among other issues. “We should remember that India has set its sights on becoming energy independent by 2047 and achieving net zero by 2070. So net zero cannot be achieved unless each industry and each sector contributes to it. We are very focused on green growth. Carbon intensity has to be reduced and therefore each one of the sectors will have to contribute to this,” she said.
Energy efficiency and renewable energy commitments of India are also very important, she said. She also asked the industry to keep the hydrogen mission in mind. The government has approved a Rs 19,744-crore incentive plan to promote the manufacturing of green hydrogen in the country in a bid to cut emissions. The National Green Hydrogen Mission seeks to promote development of green hydrogen production capacity of at least 5 million metric tonnes per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.
Sitharaman said if Indian manufacturers focus on challenges such as sustainability, recycling, skilling and technology adoption, global investors will actively look at parking their money or forging joint ventures with Indian partners in the chemicals and petrochemicals industry.