Indian Economy News

According to Union Finance Minister Ms. Nirmala Sitaraman, the centre may begin Production-Linked Scheme (PLI) scheme for the chemical and petroleum sector

  • IBEF
  • July 28, 2023

The government is considering the implementation of the production-linked incentive (PLI) scheme for the chemicals and petrochemical sectors. The government also aims to be energy independent by 2047 and achieve net zero by 2070, says Union Finance Minister Ms. Nirmala Sitharaman.

She further mentioned during the third global summit on chemical and petrochemical manufacturing hubs in India that net zero can’t be achieved unless each industry and sector contributes to it. The main priority is green growth, and each sector will need to contribute to lowering carbon intensity.

The government has been focused on introducing PLI schemes in various manufacturing sectors in India to boost the production industry.

In February 2022, the Chemical and Fertilizers Minister, Mr. Mansukh Mandaviya, stated that the ministry was planning to bring a PLI scheme for the chemical sector to boost domestic production and exports. The minister added that this was part of India's larger goal of becoming self-reliant.

The government announced the opening of new PLI bids to produce 20 gigawatt hours (GWh) of advanced chemistry cells. The US$ 2.19 billion (Rs. 18,100 crore) plan is designed to increase domestic battery cell production. The National Programme on ACC Battery Storage, a PLI initiative, was started in order to reach a 50 GWh ACC manufacturing capacity. It was anticipated that this would boost the proportion of renewable energy in the national grid while also significantly reducing crude oil imports.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.