AP in talks with MNCs for investments in petrochem sector
AP has attracted marquee investments in recent times within chemical and specialty chemical industries that do not have dependencies on basic feedstock availability like chloralkali, caustic soda, agrochemicals, paints and adhesives
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Visakhapatnam: ANDHRA Pradesh Industries Minister Mekapati Goutham Reddy has said that the State under the leadership of Chief Minister YS Jagan Mohan Reddy was in talks with multinational corporations to facilitate joint ventures and technology transfers to attract investments in the PCPIR proposed between Visakhapatnam and Kakinada.
Speaking at IndiaChem 2021 organised in Delhi on Wednesday, he said being the only State where the three National Industrial Corridors run across every district, they would develop the largest PCPIR region in the nation spread across 640 square km very soon. In these uncertain times, where the government has reinforced its stand as equal partner with the industry, the Centre and the State must explore synergies between the National Industrial Corridor Development programme with the PCPIR development to meet the need of the hour.
Reddy said the presence of large petrochemical refineries and oil & gas exploration companies in AP, such as HPCL, ONGC, and Haldia Petrochemicals, the Reliance-enabled chemical and petrochemical industry will help build self-sufficiency in petrochemical intermediates and drive downstream industries.
The Minister said AP has attracted marquee investments in recent times within chemical and specialty chemical industries that do not have dependencies on basic feedstock availability like chloralkali, caustic soda, agrochemicals, paints and adhesives.
Stating that AP is one of the champion States poised to propel the Indian economy forward under the 'Atma Nirbhar Bharat' initiative, he said with home to maximum oil and gas discoveries (1,130 MMTPA) in India and in proximity to sources of petrochemical feedstock, the State is looking to build self-sufficiency in petrochemical products and drive economies of scale for downstream chemical industries.
He said achieving this demand and aspiration to build 85 per cent self sufficiency requires a joint and concerted effort by the governments and industry at large. AP is pivoting these efforts to address key constraints, which are currently holding back the petrochemical intermediates industry.
"We are building a network of specialised infrastructure such as pipelines, water desalination plants, and cost-effective effluent treatment facilities. To realise the goal of the PCPIR clusters, we are enabling co-location of bulk, intermediate and specialty petrochemicals players to drive economies of scale," he stated.
About 70 mega industries and 5,000 plus MSME enterprises have invested $2.4 billion) in the State, contributing to 8 per cent of India's production value in FY 2019-20.
Describing investors as brand ambassadors of AP, he said he was glad that they had helped the State in creating further opportunities and growth in end-user segments, such as paints, textiles, adhesives, personal and home care products. The Ministers said the chemicals and petrochemicals are strategic areas not just for consumer products, but also for critical and lifesaving products.
He wanted the help of the Centre India for bringing specialised glass makers to provide vital material for CT scans, medical tubes and lamps used for RT PCR by forging partnership with investors like Saint Gobain. He said the specialised glass makers enter into the business of providing medical glass and strategic support to AP MedTech Zone being developed in Visakhapatnam as India's leading medical equipment manufacturing park.
He said to encourage areas like medical equipment manufacturing, the Centre could consider setting off 50 per cent of CGST components visavis capital machinery investment on items such as production of medical glass.
Reddy pointed out that "polysulfone raisins and dyes are used for making many products such as dialyzers that are used in renal care, apart from their use in many other industrial areas. If the Ministry of Petrochemicals could lead a project with other industries in making polysulfone in India, it would greatly impact manufacturing of many medical grade products such as dialyzers for renal care, apart from many industrial grade products that depend on polysulfone supply."
