India invites mega investment by American companies in petrochem sector

India's per capita polymer consumption currently stands at only 4 kg as against the world average of 25 kg per capita. Per capita consumption is much lower than China's 26 kg, hence the Indian petrochemical market offers huge possibilities. This was the core of the sales pitch at a conference of CEOs of American Petrochemical companies including Dow Chemicals, Dow Corning, Exxon Mobil, Total SA, British Petroleum, Akzo. Ashwani Kumar, Minister of State for Industry has invited mega investment by American companies in India's petrochemical sector at a meeting in Greenbrier, Virginia (USA). This conference is a sequel to the initiative by Prime Minister Dr. Manmohan Singh in September 2004 to attract mega investments in India, and is being convened by a high powered delegation from India, which include Secretary, Petrochemicals, Secretary Department of Industrial Promotion, Joint Secretary PMO, Joint Secretary Department of Petrochemicals and Chief Secretaries of the states of West Bengal and Karnataka. Indian government's role as an enabler and facilitator in setting up Petroleum Petrochemical Investment Regions (PCPIRs) through partnership initiatives emphasizes the commitment of the government. These PCPIRs will be modelled on similar investment regions in Antwerp, Singapore, Shanghai and Thailand, and will offer tax breaks and other Special Economic Zone-like incentives and single window clearances with the centre becoming a proactive enabler and facilitator. Based on a preliminary study and evaluation, the states of Karnataka, West Bengal, Orissa, Gujarat and Andhra Pradesh have been identified as possible destinations for setting up PCPIRs. These sector-specific investment regions will offer world class infrastructure in terms of roads, rails and air connectivity and will be co-developed by Indian and foreign developers based on the concept of anchor tenants. Competitive labour costs and advanced scientific, technical and managerial skills makes India one of the most preferred investment destinations of the world. The Prime Minister's Office had set up a task force headed by his principal secretary to woo mega investments for these regions with the aim of raising the manufacturing sector's share in GDP from the current 17% to 23-24% by 2012 and 33% by 2020. A second meet with the National Association of Manufacturers (NAM), the largest industry trade group in America, attracted 130 more top executives from leading companies like Eastman, Bechtel and GE.