Govt Mulls PLI Scheme For Chemicals Sector To Increase Domestic Manufacturing

In a bid to boost the domestic manufacturing and exports of the chemicals and petrochemicals, the government is considering a production linked incentive (PLI) scheme for the sector.

Union Minister of State for Chemicals and Fertilisers Mansukh Mandaviya, while addressing a webinar on 'Implementation Strategy of Budget Announcement 2021-22' organised by industry body FICCI on Friday (5 March), said that there are immense opportunities for the industry and the government is working to provide all necessary support.

According to a FICCI statement, Mandaviya said that the government is working to introduce PLI scheme for the Chemicals sector to increase domestic production, reports Economic Times.

Union Minister for Chemicals and Fertilisers DV Sadananda Gowda also addressed the webinar and said that the government is working on a consultative approach in forming the policies for India's chemicals and petrochemicals sector.

Gowda underscored that the implementation of the announcements made in the Union budget cannot be done solely by the government.

"We should take our industry in confidence so that implementations can start from first week of April. The challenge for the government is to now match the suggestions of the industry with the implementation part," he added.

Gowda further said that 2021 budget has provided a nearly 200 per cent boost to the Indian pharmaceutical sector as the government sets around INR 124.42 cr for initiatives aimed at the development of the industry.

"The big push for the pharma sector is being seen as an attempt to discourage the imports of raw materials that are widely used in local manufacturing," he said.