A meeting of global players of specialty and petrochemicals along with a group of Indian entrepreneurs and state government officials has led to a very positive outcome: Setting up of special economic regions (SER) across India, designed on the lines of a special economic zone (SEZ), without involving any fiscal incentives and export obligation.
Per capita consumption of plastic in India is growing at only 9.4% and specialty chemicals is expected to double from US$7 billion to US$14 billion by 2010. India also has an advantage on account of process engineering, low plant set costs, low labour costs and control over raw materials. Low cost pool of chemicals and trained manpower, coupled with 30-40% savings on account of local fabrication of equipment and use of local technology are all advantages offered by India.
Hence petrochemical was the first choice. The group has chalked out a US$30 billion investment in the chemical and petrochemical segment in the next three-four years. With investments ranging between US$8-10 billion each, three mega-size chemicals and petrochemicals special economic regions (SERs) across the country can be planned.
About 30 leading global chemical and petrochemical firms interested in investing in India, including Exxon, Mitsubishi, BASF and BP, were present for direct interaction with officials from the states of West Bengal, Orissa, Andhra Pradesh, Karnataka and Gujarat and discussed creating the right climate for investment. The global players can act as anchor investors in these SERs with alliances with domestic companies like GAIL, ONGC, IOC.
Will this initiative help India recover lost ground in a field where China has overtaken India?
26-Dec-05 
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