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SEP 22 2017

Centre offers viability gap funding for Gujarats petro project

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 22nd SEP 2017

 

The Union Minister for Chemicals and FertilisersAnanth Kumar on Thursday offered financial support from the Central treasury through Viability-Gap Funding (VGF) for the success of ambitious project of Petroleum Chemicals and Petrochemicals Investment Region (PCPIR) at Dahej in Gujarat.

Looking at the dismal participation of the processing units at the PCPIR in Dahej, Kumar asked Gujarat to submit a proposal for VGF from the Centre.

“Dahej PCPIR produces 2 million tonnes of raw material or intermediaries. But only 800,000 tonnes is consumed directly. I assure you, if you ask for VGF, the Centre will consider it favourably,” Kumar said, adding that there is a potential to create employment opportunity for 800,000 by 2040 in the region.

Training talents

At the fifth edition of India CHEM Gujarat 2017 at Mahatma Mandir here, Kumar also announced India’s first Central Institute of Chemical Engineering and Technology (CICET) to be set up at Dahej on the similar lines of CIPET for plastics sector, to facilitate skill development in the chemicals sector.

Highlighting the emerging need of talent for chemicals processing in the country, Kumar said: “The Central government has planned to set up a specialised institute on the lines of Central Institute of Plastics Engineering and Technology (CIPET) for skill development in chemicals sector. This (CICET) will be country’s first specialised institute on chemicals and it will be set up at Dahej. We will send a formal proposal to Gujarat for land requirement of about 10-15 acres and the infrastructure support.”

Gujarat Chief Minister Vijay Rupani assured support for setting up of CICET. According to Rupani, Gujarat currently has over 16,000 small and medium enterprises and more than 500 medium-to-large units in the chemicals sector, producing about 6,500 types of chemicals and petroleum products.

Roadmap

On the future roadmap for the chemicals sector in the country, Tata Strategic Management Group released a report, which highlighted critical issues in the industry such as availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business. Today, at a domestic industry size of $155 billion, India’s chemical sector accounts for only 3.4 per cent of the global chemical market, while it has a potential to grow to a size of $346 billion by fiscal 2025.

At the 5th edition of India CHEM Gujarat 2017, Union Minister Anant Kumar revealed plans to set up skill development centre for chemicals sector

 

Tags

Gujarat Energy Security Petroleum Products Energy Petroleum India TATA

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