Govt plans to set up petrochem hubs around 22 oil refineries

The government says petrochemical firms and downstream manufacturers need to be set up around refineries as it will bring down cost of logistics


New Delhi: The government on Friday announced its plans to set up petrochemical complexes around all 22 refineries across the country which would help generate one crore jobs and boost the sector’s growth.

Union minister Ananth Kumar asked the chemical industry “not to just rely on the government incentives but become competitive” while assuring companies of providing common facilities for those setting up brownfield clusters.

He called upon the industry to become “competitive” in feed stock, procurement of natural gas and production of end products for doubling the sector’s growth to $400 billion by 2021.

“The government has decided to establish petrochemical hubs in and around all 22 refineries,” the minister for chemicals and fertilisers said at an event.

The proposed petrochemical complexes would not just be confined to Gujarat, Maharashtra, Andhra Pradesh, Odisha and parts of Tamil Nadu, but would be set up in other states as well, he said.

Petrochemical companies and other downstream manufacturers catering pharma and plastics, need to be set up around refineries as this will help bring down the cost of logistics, he said.

The proposed plan, which is expected to attract huge investment and generate one crore jobs, will soon be discussed with petroleum minister Dharmendra Pradhan, he added.

The minister also said the industry should focus on cluster approach for establishing both greenfield and brownfield petrochemical projects, and promised to provide common facilities for brownfield clusters to bring down the cost.

“The government is a facilitator. We are here to support you. Please don’t just rely on incentives. That will be there. Become more competitive,” he said.

Incentives give minor relief to the industry but the major relief would come from becoming competitive in feed stock and other alternative sources of fuel.

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