India Invests ₹4,500 Cr in Three New Green Chemical Parks

Minister of State for Chemicals and Fertilisers Anupriya Patel urged state governments and industry leaders to participate in the Bhavya Rasayan scheme to build three dedicated greenfield chemical parks. The initiative aims to build domestic manufacturing capabilities and counter disruptions in global supply chains.

Understanding the Financial Mechanism

The project requires a minimum capital deployment of Rs 4,500 crore to establish the three industrial zones. The funding structure relies on a mix of central and state contributions to build core utilities.

• Central grant of Rs 1,000 crore per park for common infrastructure facilities and basic utilities.
• State government contribution of a minimum of Rs 500 crore each.
• Proposals for the challenge-based site selection process submitted through official channels.

The policy intends to foster a collaborative environment where large-scale industries and micro, small, and medium enterprises can expand. The sector currently contributes approximately 1% to the Indian gross domestic product.

Economic Scale and Growth Targets

The broader chemical and petrochemical industry currently holds a market size of $230 billion. Government projections outline an ambitious trajectory for this market over the coming decades.

• Reaching a targeted valuation of $1 trillion by the year 2040.
• Addressing a lag in research and development, where India accounts for roughly 3% of global spending compared to a global rise from $38 billion to $71 billion between 2012 and 2022.
• Integrating the sector into the Research Development Innovation Scheme, which features an outlay of about Rs 1 lakh crore.

The Ministry of Chemicals and Fertilisers is actively exploring additional incentives for import substitution. Industry participants have been invited to submit formal recommendations to shape these upcoming policy measures.