Union chemical & fertilizer ministry to set up reverse SEZ abroad for chemical needs in India

On Jan 28, 2015

Mumbai January 28, 2015 Indian process and chemical industry should explore joint ventures and acquire assets in the oil and gas rich regions abroad for securing alternative feedstock and energy sources, Research and Development Cooperation, mining rights and global reach.

“The chemical industry is critical for the economic development of any country, providing products and enabling technical solutions in virtually all sectors of the economy. Indian chemical industry is pegged recently at USD 136 billion which forms less than 5 percent of the global chemical industry and accounts for approximately 7 per cent if GDP and 12 per cent of Indian exports. In 2013, India was the 2nd largest producer of chemicals in Asia after China. Joint Ventures and alliances abroad for technical and R & D support and global reach can help our industry grow in a big way” said Mr Surjit Chaudhary, Union Secretary for Chemicals and Fertilizers while inaugurating a Four day Chemical fair CHEMTECH World Expo 2015 here today.
“To meet the increasing demand of speciality chemicals in the country, Government plans to set up Reverse Special Economic Zones (SEZ) in various nations starting from Iran. The department of chemicals has proposed a reverse SEZ to be set up in Chabhar Port area of Iran for manufacturing of industrial chemicals that are used in abundance by Indian companies. To begin with , one such chemical proposed is methanol or methyl alcohol and the proposal has been sent for inter ministerial consultations with department of commerce and ministry of external affairs.” Said Mr Chaudhary

“Thus , as per the proposal, the Indian companies either in consortium or joint venture with foreign partners or standalone will set up unit in Iran for manufacturing of methanol . This primary chemical will then be exported back to India where the Indian companies could use it for manufacturing of end use chemicals. Thus while the Indian chemical companies could get the supply of the feedstock at a discounted price compared to the imported price, end use products – speciality chemicals could be manufactured for use in India and for exports thus making the slogan of make in India worthwhile, said officials. The feedstock will be primarily used for value addition in India. “ the secretary added .

“The demand for speciality and eco-friendly chemical products is on constant increase world wide, the India chemical and process industry should work towards clean tech, alternative feedstock and energy sources and find ways and means to fight global warming . Government of India will take all the necessary steps to boost the confidence of the industry and provide conducive environment for chemical industry to flourish in India and abroad The chemical and petrochemical industry is at the threshold of “sustainable” growth and Government’s ‘Make in India’ campaign will have tremendous influence on encouraging global and Indian companies to invest in the country. We are confident that Indian chemical industry has the potential to double its size in next ten years with the right support from the government.” Said Mr Chaudhary .

“With an aim to achieve sustainable growth in food production and incorporate global best practices in fertiliser usage, the centre in planning to bring out a new fertiliser policy for the country. The Central government was planning to set up six urea fertiliser production units.The government proposes to come out with a new holistic fertiliser policy soon” the Secretary said.

Those present on the occasion included Mr .B.Narayan, Group President, Reliance Industries Ltd Mr. Vipul Shah, COO Petrochemical Division, Reliance Industries Ltd Mr. A.K. Purwaha, Chairman & Managing Director, Engineers India Ltd. Overseas Guest Mr. Peder Claesson and Mr Yatinder Pal Singh Suri of Finnish Stainless steel major Outokumpu .

Leading companies from all over the world particularly from Finland, China, Taiwan, Germany, Iran, Japan, Russia, USA, and South East Asian countries are participating both as exhibitors and visitors. The event would also play host to a galaxy of eminent speakers and leaders from India and abroad. The event is a collaborative initiative by the Department of Chemicals and Petrochemicals, Government of India, Chemtech Foundation and Finnish Stainless Steel major Outokumpu .