PLI likely for chemicals, not petchem
NEW DELHI : The finance ministry is considering introducing a production linked incentive (PLI) scheme for the chemicals sector, but there aren’t any proposals yet for such a scheme for the petrochemical industry, two senior officials told Mint. A PLI scheme for the chemicals sector is currently being considered by the finance ministry, but it hasn’t been approved yet, said the first person mentioned above, who spoke under the condition of anonymity. Since funds for PLI schemes are limited, the government can make funds available only to sectors that really need such schemes, the person said. Allocating funds to specific sectors for the scheme is decided by the Niti Aayog, the person added.
The government is expected to lay out ₹13,000 crore in FY24 to firms that are seeking benefits under the PLI schemes. A finance ministry spokesperson didn’t respond to queries. Finance minister Nirmala Sitharaman told a global chemical and petrochemical industry forum in July that the government will consider PLI schemes for the chemicals and petrochemicals industry as India pushes to become a manufacturing hub.
Sitharaman also said that while the chemicals and petrochemicals sectors are crucial for the economy, they face major challenges that need to be addressed. These challenges include issues related to pollution control regulation, rising labour costs, collaterals, skill development, sustainability and the reduction of carbon emissions, she said. “Net Zero cannot be achieved unless each industry contributes to it," she said.
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