Chemicals and Fertilizers Minister Mansukh Mandaviya said on Friday that the ministry plans to introduce a Production Linked Incentives (PLI) program for the chemical sector to boost domestic production and exports.
Addressing a seminar, the minister said that the government has launched LIP programs for different sectors to make India self-reliant.
“We are considering how to introduce the PLI system in the chemical sector. We have started working in this direction,” said Mandaviya, who also heads the health ministry.
Speaking on the sidelines of the event, he said the ministry was working on it but the final decision would rest with the government.
Mandaviya said the aim is to ensure that all commodity chemicals are produced in India for domestic and global markets.
Last year, the government launched a PLI program for 13 sectors with financial expenditure commitments of Rs 1.97 lakh crore over the 5 years starting in 2021-22.
Mandaviya was speaking at an “Industry Connect 2022: Industry and Academia Synergy” seminar organized by his ministry in association with the Central Institute of Petrochemical Engineering and Technology (CIPET) and FICCI.
Mandaviya emphasized greater synergy between ministries, CIPET, industry and academia for the holistic development of this “booming” sector.
The minister said the sector has an important role to play in helping the country become a $5 trillion economy.
The chemical and petrochemical sector provides raw materials to many industries, he added.
Mandaviya stressed the need to make India a global manufacturing hub to meet domestic demand as well as exports. The minister also pointed out that the logistics cost in India is higher than other countries, which makes exports uncompetitive.
Mandaviya said the government was making huge investments to develop road, rail and river infrastructure holistically.
The minister said the government is pro-industry and respects wealth creators and job generators.
Speaking about the pandemic, Mandaviya said the number of cases had gone down and the vaccination program was working extremely well.
He said India had successfully managed the pandemic and was commended for the best handling of COVID in the world.
Minister of State for Chemicals and Fertilizers, Bhagwanth Khuba also highlighted the steps taken by the government to make India Aatmanirbhar.
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