New Delhi: Finance Minister Nirmala Sitharaman on Thursday said that the government will consider introducing a product-linked incentive (PLI) scheme for the chemicals and petrochemicals sector.
Addressing a FICCI event, the Finance Minister also highlighted that the country stands out as a manufacturing destination for the chemical industry as it offers a large domestic market.
“We are in favour of having India becoming a manufacturing hub and therefore, of course, we will consider the PLI also for the chemicals and petrochemicals,” Sitharaman said, as per PTI. As of now, the government is offering 14 PLI schemes for sectors including telecommunication, electronics, white goods, textiles and pharma.
As per the report, Sitharaman said that in view of stringent pollution control regulations and rising labour costs, 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 further added.
Finance Minister also emphasised that the chemical industry which has great potential should create manufacturing capacity keeping in mind sustainability, carbon emission, general pollution, and groundwater pollution.
“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.
Adding that India Inc should also keep in mind the Net Zero goal of India and 500 gigawatts of installed electricity capacities from non-fossil fuel sources.
Energy efficiency and renewable energy commitments of India are also very important, she said.
Sitharaman further said that the industry should also remember the Hydrogen Mission. 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.
