Centre mulling PLI scheme for chemicals & petrochemical industry, says FM
1 min read 27 Jul 2023, 03:15 PM ISTSitharaman said that while chemicals and petrochemicals sector is crucial for the economy, it faces major challenges that need to be addressed
PremiumNew Delhi: The Indian government will consider Production Linked Incentive (PLI) scheme for the chemicals and petrochemicals industry as it pushes to become a manufacturing hub, finance minister Nirmala Sitharaman said on Thursday.
"We are in favour of making India a manufacturing hub," Sitharaman said at Ficci’s Global Chemicals & Petrochemicals Manufacturing Hubs in India Summit. “We will consider PLI for chemicals and petrochemicals.".
Under the PLI scheme, the government offers companies incentives on incremental sales from products manufactured in domestic units. It is aimed at boosting India's manufacturing prowess and rely dependance on imports.
Speaking at the event, Sitharaman said that while chemicals and petrochemicals sector is crucial for the economy, it faces major challenges that need to be addressed. These include: pollution control regulations, rising labour cost, and collaterals, skilling, sustainability, carbon emission reduction.
"Net zero can’t be achieved unless each industry and sector contributes to it," Sitharaman said.
"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 that all industries have to work towards achieving net zero and energy targets.
India aims to reach net zero by 2070, which means cutting greenhouse gas emissions to zero. It also hopes to achieve energy independence by 2047 through usage of clean technology.
According to Mckinsey & Company, Industry 4.0, also called the Fourth Industrial Revolution, or 4IR, is the next phase in the digitization of the manufacturing sector, driven by disruptive trends including the rise of data and connectivity, analytics, human-machine interaction, and improvements in robotics.
