Eastern India can draw Rs 30,000 cr petrochem investments by 2030

The country's eastern region has the potential to attract Rs 30,000 crore investments in the petrochemicals sector by 2030. 

A white paper on 'Petrochemical: The Sunrise Industry of the East' prepared by Deloitte says new investments in the petrochemicals sector could generate 2.2 million jobs.

The paper was released here at the 'Petrochemicals Investors Conclave: 2017' by Minister for Petroleum & Natural Gas and Skill Development & Entrepreneurship Dharmendra Pradhan. According to the paper, plastic cluster in the eastern states offers an investment opportunity of Rs 14,000-16,000 crore while textile cluster could potentially draw investments in the range of Rs 12,000-15,000 crore. Opportunities for entrepreneurs exist across the plastic and textiles value chain like masterbatches, films, auto components, looms, packaging, injection moulding and spinning & weaving.

"The petrochemicals sector is growing at a much faster rate than the GDP. The sector can be a catalyst for economic growth. About Rs 30,000 crore is expected to be invested in the petrochemicals sector in the eastern India by 2030. It will generate about 2.2 million job opportunities. If Odisha wants to have a greater pie of the investment projects, the supporting system needs to be simplified and power cost is one of the components”, Pradhan said.

Sanjiv Singh, chairman of Indian Oil Corporation Ltd (IOCL) said, “The petrochemicals market in the country is estimated at $50 billion and is growing 11 per cent year-on-year. The country has per capita polymer consumption of 10 kg and it has to catch up with the global average. Paradip can be developed as the potential petrochemicals hub.”

Debasish Mishra, partner, Deloitte said, “Per capita polymer consumption in eastern India is less than five kg compared to the pan India average of 10 kg. The global average for polymer consumption is 32 kg. There are huge opportunities in eastern India for investments in petrochemicals space.”

To attract investments in petrochemicals sector, Mishra suggested that the eastern states need to develop industrial parks with well planned and innovative models, make the business model viable for investors, customise incentive packages, focus on skill development and create an incubation centre for entrepreneurs.

Vipul Tuli, chief executive officer and country head at Sembcorp said, “The size of the petrochemicals market is seen at Rs 46,000 crore by 2030. Reaching a per capita consumption of 30 kg of polymer is an interim target, the potential is higher. Currently, the petrochemicals sector contributes four per cent to Indian Oil's revenue but in the future, the segment would be crucial for reforms and could be potentially the biggest driver for investments and profits.”