• Posted on: 6 May 2016
  • By: admin


• India accounted for 3 % of global chemicals production with a value of $136.5 Billion (2013) 

• India occupied 3rd position in Asia and 6th in the world in chemicals production with a production of 19,300 thousand metric tonnes (as of 2013-14) 

• Chemicals sector is among the top five exporters from India and accounted for more than 4 % of the country’s exports in 2014 

• Indian chemicals sector attracted a total FDI inflow of more than USD10 billion during April 2000 to February 2015 

• The sector contributed ~6 percent to India’s GDP in 2013 

• The sector produces over 80,000 products for downstream sectors such as automobiles, construction & engineering, consumer durables, food processing, pharmaceuticals & personal care.



Chemical Sector Accounts for nearly 17 percent of chemical production in the country. 

Maharashtra is one of the leading states in India in chemical and petrochemical production.

• The state houses ~16 percent of the total number of chemical factories and 16 % of chemical production in India. 

• Though there are several chemical zones in the state that provide the necessary infrastructure, chemical zones located at Mumbai/Thane, and TTC are popular. 


Ecosystem for Chemical Sector 

Well-developed ecosystem translated into a successful chemical sector in the state. 


Dedicated Institutes 

• Indian Institute of Technology, Mumbai 

• Institute of Chemical Technology, Mumbai 

• National Chemical Laboratories, Pune 

• Visvesvaraya National Institute of Technology, Nagpur


Major Chemical Zones 

 Chemical Zones: 

The state has 13 chemical zones at Ambernath, Badalapur, Butibori, Dombivali, Kalyan–Bhiwandi, Kurkumbh, Lote Parshuram, Mahad, Patalganga, Roha, Taloja, Tarapur, and TTC. MIDC has planned to set up liquid waste management in these industries. 


Common Effluent Treatment Plants (CETPs) 

• Maharashtra has 18 operational CETPs and another 4 are under construction. Together the capacity of these treatment plants is ~258 MLD. 

Another 13 have been planned Common Hazardous Waste Treatment Plants (CHWTPs) 

• The state has 4 CHWTPs at Taloja, TTC, Ranjangaon and Butibori, which is one of the highest in the country. The aggregate capacity of these plants is 250,000 MT per annum. 

Sewage Treatment Plants (STPs) 

• There is 1 operational STP at Hinjewadi with a capacity of 4 MLD, while another 1 is under construction at Waluj of same capacity and 1 more has been proposed. 



 The state has proposed 3 landfills Others 

• State has well-developed and expanding infrastructure – electricity, ports, airports, road and rail

• It also offers a conducive labour environment that can be gauged from one of the lowest number of labour strikes in the country, compared to its peers. 


Fiscal Support

VAT + CST Abatement Stamp Duty Exemption Electricity Duty Exemption Plus, a host of other benefits. 


Special Incentives

Mega and Ultra Mega projects can qualify for fiscal incentives up to 100% of the fixed capital investment. 

10% additional incentive is provided by the state if the project creates double the employment required for the eligibility. 


Policy Incentives 

• Incentives are provided as per the firm’s categorisation (MSME/LSI), classification of industrial area and the benefit is provided for a specified period 

• Package scheme of incentives for new industrial units/expansion units in state’s developing regions awarded to pharmaceuticals and biotechnology units, medical and surgical appliances, 

cold storages (pharma products can be stored). For mega/ultra mega projects, incentives will be decided by high power committee 

• Maharashtra Scheme for Biotech provides fiscal and non-fiscal incentives under different programmes. 


State Government Initiatives 

The state government has announced several incentives to support the sector. 

• Subsidized land cost • Exemption on sale/lease of land 

• Investment subsidies/tax incentives 

• Special incentive packages for mega projects 

• Subsidies for backward areas 

• Relaxation in stamp duty 

• Incentives for power tariff 

• Concessional rate of interest on loans


Government of India initiatives 

• Removal of licensing requirements except for hazardous chemicals 

• Entrepreneurs permitted to set up chemical industries under Industrial Entrepreneurs’ Memorandum (IEM) route 

• Petroleum, chemicals and petrochemical investment regions (PCPIR) developed for setting-up manufacturing facilities. PCPIR may include industrial parks, SEZs, EoUs, free trade and warehousing zones. Benefits available under the relevant policy/legislation will remain valid 

 100 % FDI permitted under automatic route and 24 % permitted in products reserved for MSMEs such as fireworks and incense sticks, laundry soaps, wax candles, safety matches etc. 

• Fiscal benefits in the form of concession on customs duty and incentives for R&D activities are also provided. 

• GoI is also considering setting-up a R&D fund under PPP, augmenting testing centers to function as certifying agencies for testing raw materials and plastic products, formation of clusters, establishing specialized vocational training centers in clusters, among others 

• In addition, the GoI is also planning to set-up reverse SEZs for chemical sector, beginning with Iran to meet specifically meet demand for speciality chemicals.