New Delhi, July 27 (ANI): Union Finance Minister Nirmala Sitharaman lights a ceremonial lamp at the third edition of the ‘Global Chemicals and Petrochemicals Manufacturing Hubs in India’ Summit, in New Delhi on Thursday. (ANI Photo/Shrikant Singh)
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Large global investors like BASF, Adnoc, Rosneft and Aramco are looking for joint venture partners to invest in India, Finance Minister Nirmala Sitharaman hinted on Thursday, and said the government is open to introducing a production-linked incentive (PLI) scheme for investments in the chemicals and petrochemicals sectors.
Urging industry to reduce its reliance on imports of chemicals that can be made in India, Ms. Sitharaman also emphasised the need to step up their adoption of newer technologies, with an eye on sustainability and circularity, for any benefits to accrue from potential partnerships with global players.
“Unless you’re able to bring in that element when becoming a partner with these global big investors, India is not going to benefit,” Ms. Sitharaman said. “I do not want to be a pessimist or a naysayer, but we really cannot have joint ventures, even with a global player, when our standards in terms of sustainability are not really up to the global mark or the commitment India has given as NDC–nationally determined commitments,” she added.
“About the PLI, quite a lot has been said. We are in favour of making India a manufacturing hub and therefore, of course, we will consider the PLI also for the chemical and petrochemical sectors,” Ms. Sitharaman said in her inaugural address at a global chemicals & petrochemicals manufacturing summit hosted by FICCI.
On inverted duty structures that affect several segments of the chemicals industry, Ms. Sitharaman said the government is open to correcting them, but noted that this may affect the tax treatment for other products in the value chain.
“I will utter a word of caution. I am not saying there won’t be any inversion in your area. But inversion on an item, if corrected, can have a collateral elsewhere. So where there is no inversion, your inversion getting corrected, can put that one upside down. So while inversion is a great concern for industry, and correction is definitely necessary, do look at it in a holistic fashion,” she underlined. The Finance Ministry will review all suggestions on this front with an open mind, the minister concluded.
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