Parliament Parliamentary Committee
Domestic petrochemical demand rises to 40 MMT in 2024 from 9 MMT in 2007
The Standing Committee on Chemicals and Fertilisers examined the National Policy on Petrochemicals, 2007, to assess its effectiveness in boosting investment and domestic demand in the sector.
Who it concerns: Ministry of Chemicals and Fertilisers (implied by Committee name), Ministry of Commerce, State Governments (Gujarat, Andhra Pradesh, Odisha, Jharkhand, Tamil Nadu, Karnataka), and the general public affected by petrochemical production, plastic waste management, and industrial employment.
What the committee found
- Committee recommended a holistic review of the 2007 policy to address global competitiveness and sustainability goals.
- Committee recommended a comprehensive review of the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy to correct gaps, noting that Andhra Pradesh and Odisha regions lag behind Gujarat in investment and employment, and Andhra Pradesh has not secured an anchor tenant.
- Committee recommended increasing the production of synthetic fibres and enhancing exports, noting that exports (370 KT) were inadequate compared to production (6,700 KT) in 2024.
- Committee recommended reconstituting the Plastic Development Council (PDC), noting its tenure ended in 2013 and it was not reconstituted, which is a deviation from the policy.
- Committee recommended coordination with state governments to complete pending infrastructure for plastic parks, noting that only 50 of 919 approved plots are operational and zero plots were allotted in Jharkhand, Tamil Nadu, and Karnataka.
- Committee recommended establishing more Plastic Waste Management Centres (PWMCs) across the country, noting only three are currently functional.
- Committee recommended establishing more Centres of Excellence (CoEs) and reviewing their functioning regarding patent filing and technology transfer, noting that only 38 of 96 developed products/technologies were transferred to industry.
Also in the document
- Domestic demand for petrochemicals increased from 9 MMT in 2007 to 40 MMT in 2024, while production increased from 8.6 MMT to 28 MMT.
- The Andhra Pradesh PCPIR has not been able to secure an anchor tenant.
- Of 919 plots in approved plastic parks, only 50 are operational.
- Zero plots have been allotted for plastic parks in Jharkhand, Tamil Nadu, and Karnataka.
- Only 38 of 96 new products or technologies developed by Centres of Excellence were transferred to the industry.
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The original document
Parliamentary Standing Committee reports (via PRS Legislative Research)
Committee report · Ref. review-of-national-policy-on-petrochemicals-2007
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