Union Finance Minister Nirmala Sitharaman said that the government is considering the implementation of the ‘Production-Linked Incentive’ (PLI) scheme for the chemical and petrochemical sector. The government aims to be energy independent by the year 2047 and achieve net-zero by the year 2070.
Main point
- According to the Finance Minister, big global investors like BASF, Adnoc, Rosneft and Aram Co are looking for joint venture partners to invest in India.
- Ms. Sitharaman said that unless our standards in terms of sustainability are at par with global standards or the commitment made by India in the form of NDCs, India is not going to benefit while partnering with these global mega investors.
- On the inverse duty structures affecting several sectors of the chemical industry, Ms. Sitharaman said that “the government is set to correct them as this could impact tax reform for other products in the value chain.
Objective
- Emphasis on the need to adopt new technologies to reduce our dependence on imports of chemicals that can be made in India.
- Ms Sitharaman in her inaugural address at the ‘Global Chemical and Petrochemical Manufacturing Summit’ organized by FICCI said “We are in favor of making India a manufacturing hub so of course we are on PLI for chemical and petrochemical sectors as well Will consider
- The Finance Minister said that Net Zero cannot be achieved unless every industry and sector contributes to it. We are focusing a lot on green development. Carbon intensity has to be reduced so every sector has to contribute to it.
- The idea comes at a time when India imports 46 per cent of its crude oil from Russia. Now that India’s waivers are dwindling, relying too heavily on a single source of supply could cause problems in the long run, especially if sanctions become more stringent.
- The PLI scheme is also applicable to electric vehicles, maintaining grid stability, solar rooftop, consumer electronics etc.
- Therefore, it will prove to be an ally in the Indian government’s endeavor towards renewable energy.
- To achieve Net Zero by the year 2070 by promoting Indian manufacturers and industries through PLI scheme.