vibrant gujarat summit report on contribution of gujarat for development in chemical and...
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- 1. 16th October 2013 15th November 2013
2. Inside this issueFocal PointGujarat Updates : Investment Plans/ InitiativesEvents CalendarExplore GujaratContact Us12345 Fact FileGujarat contributes for more than 62% of the national petrochemical production and 53% of the national chemical production in the country.The chemical sector of Gujarat contributed 18% to Indias export in 2011-2012.Chemicals and Petrochemicals sector has attracted FDI worth INR 16,876 crore during 1991 to 2011; contributing 46% of the overall FDI attracted in Gujarat. 3. From The DeskD. Jagatheesa Pandian, IASAdditional Chief SecretaryEnergy & Petrochemicals Department,Government of Gujarat, GandhinagarThe chemicals and petrochemicals sector has consistently been amongst the most important sectors for Indias economic growth. Ever since the beginning, this industry has grown in leaps and bounds, with a growth rate of around 12% per year. India has a refining capacity of 194 MMTPA (Million Metric Tonnes Per Annum) in addition to a significant annual production of fertilizers, dyes, polymers, fine chemicals, agro chemicals and specialty chemicals.Its a matter of great pleasure for me to be a part of this edition of the newsletter which focuses on the petrochemicals and chemicals sector of Gujarat. Gujarat is no doubt the petro hub of India. Gujarat contributes to more than 62% of the national petrochemical production and 53% of the national chemical production in the country. The sector thus is a significant contributor to the national GDP as well as annual exports.Gujarat has four refineries including the worlds largest grassroots refinery at Jamnagar. In addition, Gujarat has SEZs, industrial clusters and an upcoming Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) all dedicated to chemical production and exports. Gujarat also has a chemical port at Dahej to specifically cater to the handling of chemical cargo.The policies adopted for the development and growth of the petrochemicals sector along with the support provided by the Government of Gujarat are covered at length in this edition of newsletter. I hope this edition makes for an interesting read.01 4. Focal PointChemical Industry02Vilayat and Dahej to facilitate further development and growth. There are 8 product clusters, 14 industrial estates and 3 SEZs for the chemical sector. The PCPIR in the Bharuch-Dhaej investment region would attract large scale investments in chemical/petrochemical industry as well as in providing world-class infrastructure. It includes development of Chemical terminal, LNG Terminal and a Dry Bulk Cargo Terminal. Total committed investments in Gujarat PCPIR are worth around INR 129,000 crores. Moreover, There are 39 Engineering colleges in Gujarat offering the course on chemical engineering. 49 Polytechnics offer courses in Chemical sector in Gujarat. Also there are 46 private and Government Management institutes in Gujarat for higher education.More than 35% of large & medium units in the state are from chemical industries and chemical sector accounts for 16% of employment in the state. The state is the largest supplier of bio- fertilizers, seeds, urea and other fertilizers and is the largest caustic soda producing state with 1.6 million tonnes capacities.With a size of about 7.3 billion and growing at 14%/year, the Indian speciality chemicals market is coming of age. In the last few years, there has been a marked improvement in this sector, despite the challenges that it still faces, like the overwhelming dependence on imports and the limited focus of domestic players on technology upgrades.Capacity augmentation in speciality chemicals has been undertaken on a war footing by most domestic firms, especially those in the western state of Gujarat, which accounts for an estimated 50% of India's national chemical production and 40% of its refining capacity.Three factors put Gujarat in the forefront: the needs and presence of end use customers, the availability of feedstock and the quick adaption of technology and Gujarat's rapid strides in urbanisation. People now demand better and high value products, which in turn makes it a ripe market for speciality chemicals.With one of the fastest growing chemical and petrochemical sector in the state economy, Gujarat is veriably the Petro hub of the country. It contributes for more than 62% of the national petrochemical production and 53% of the national chemical production. Around 6,600 types of different chemical and petrochemical products are manufactured in the state. This well-diversified industry has a complete portfolio of downstream products, pharmaceuticals, dyes and intermediates. It has the presence of mega-estates, particularly for chemicals at: Ankleshwar, Panoli, Vapi, Vatwa, Jhagadia, 53%21%5%6%6%9%Regional Production of Chemicals (FY11)GujaratMaharashtra UPTamilNaduMPOthersSource: IBEF Report Mar2013 5. 03Focal PointTo promote the Indian Chemical Industry, Department of Chemicals & Petrochemicals, Government of Gujarat organize "India Chem" series of events. Recently, India Chem Gujarat 2013, 3rd International Exhibition & Conference was held from October 24th to 26th at Gandhinagar with the theme Gujarat: A New Gateway to International Possibilities.A series of conferences ran parallel with the exhibition. The conferences focused on various areas of chemicals including specialty, fine, agro, personal care, dyes, colorants and pigments. Additionally, CEO Forum was arranged at the event. The focus was to have all top decision makers together at one platform to have a concrete discussion on taking the Indian Chemical & Petrochemical sector to the next level with the help of Public-Private Partnership.The growth of the oil and gas industry in Gujarat led to the availability of sufficient feedstocks for the downstream chemical industry. Over the years, the Government of Gujarat has always remained proactive in the development of the petrochemical and chemical sector. Industry friendly policies, good governance, strong infrastructure, robust transportation network, efficient ports and investment promotion activities have all culminated in the Gujarat petrochemical and chemical sector growing strong day by day.Going forward, some of the focus in this sector will be on removal of hazardous chemical industries, employing clean technology in chemical manufacturing and thus reducing the environment footprint generated by this sector. There will also be a need to fully utilize the potential for chemical manufacturing to meet the ever growing global demand.The adjoining graph shows Gujarats contribution to the national production of some major chemicals. The chemical sector of Gujarat contributed 18% to Indias export in 2011-2012. The export policy aims to increase Gujarats share in total Indian exports from 25% to 30% and chemicals will have a major role to play in this.98%58%52%50%42%39%38%0%50%100%150%Soda AshPolymersAcetic acidEthyleneCaustic sodaLABMetanolGujarat has a Petroleum, chemicals, and petrochemicals investment region (PCPIR) which is a specifically delineated investment region with an area of around 250 sq. km. planned for the establishment of manufacturing facilities for domestic and export led production in petroleum, chemicals & petrochemicals, along with the associated services and infrastructure. 6. GESIA delegation to represent Gujarat's ICT industry in DubaiOctober 18, 2013The Gujarat Electronics and Software Industries (GESIA) with Gujarat Electronics and ICT business are going on a trade mission to visit GITEX - Dubai from October 20 to 24, 2013. A separate committee of international branding has been created to promote electronics and IT sectors in world market.The delegation led by Paresh Shah, Chairman, International branding, is planning to conduct many activities to boost exports from region i.e. trade delegation to participate in international exhibition, B2B meetings in overseas market, workshop and seminars on export activity.Pankaj Shah, President, GESIA will led this mission which will be supported by Ministry of MSME under the international cooperation scheme. It is the first time that GESIA is taking an official trade mission of Gujarat's IT sector to an international market wherein about 14 small and medium size companies will take part. The delegates will network with government and business officials and they will gain useful knowledge of the market and engage with potential commercial partners.Worlds largest acetic acid plant to come up in GujaratOctober 19, 2013Global energy giant BP is working with Indian Oil Corporation (IOC) to set up an acetic acid plant in Gujarat, while the BP - RIL joint venture hasGujarat Updates : Investment Plans/ Initiativessubmitted a proposal for Gujarat State Petroleum Corporation (GSPC)'s LNG terminal inthe state. Mr. Bob Dudley, global chief executive of BP, while talking about BP's Gujarat plans, said: "Gujarat emphasises how the above- ground factors largely based on good policy can make a major difference into the lives of many people. Gujarat, too, features prominently in our growth plans as we are hoping to set up one of the world's largest acetic acid plants here."Dudley elaborated that BP was working with IOC for an acetic acid plant of a capacity of a million tonnes at an investment of over $1 billion dollar near IOC's Koyali refinery. He added that they are also looking at LNG re-gasification with Reliance in Gujarat. Further, he mentioned that they are one of the few companies who have submitted proposal for a LNG terminal and re- gasification in Gujarat.Mr. Bob Dudley recently shared the dais with Gujarat Chief Minister Shri Narendra Modi and Reliance Industries Ltd. Chairman and Managing Director at the third convocation of Pandit Deendayal Petroleum University (PDPU).04 7. Gujarat Updates : Investment Plans/ InitiativesAhmedabad slum rehabilitation schem