India to invest Rs 1,600 cr in chemical, petchem R&D
New Delhi: India plans to pump in Rs 1,600 crore in chemical and petrochemical sectors for research and innovation by the existing players to improve their global competitiveness and sustainability while addressing import substitution, resource efficiency, and energy security.
The funding, spread over five years, would be available to all stakeholders - large, medium, small and micro enterprises (MSMEs). The beneficiaries targeted are around 12,000 large and 450,000 MSMEs with focus on enhancing their R&D capabilities to reduce import dependency which was $31 billion in 2023.
Ten projects would be on end-to-end research in any of the nine priority areas in collaboration with Government owned academic institutes of national repute. Investments made by the companies on the projects at the institutes would get financial support of 35 percent of the total cost incurred or Rs 100 crores per research project under benefit sharing principle.
Ten research projects with products or technologies with high commercial potential or societal implications would get funding to expedite the launch of products in the market and large-scale commercialization process. The funding support will cover 35 percent of the cost or Rs 50 crores per project, again based on the principle of benefit sharing.
Category 3 would be for the MSMEs where around 100 research projects would get financial support for innovative technology application programmes to promote innovative application, high-tech processes and modernization of existing technologies in MSMEs Those who have made sufficient headway in the research of priority areas will be selected and funding up to Rs 1 crore per project would be provided.
The scheme emphasizes several priority areas: Green Chemistry for development of eco-friendly processes and products; Advanced Materials research into polymers, composites, and nanomaterials; Process Intensification to optimize chemical processes; and Market-driven Innovation to align R&D with market demands and trends.
The target is development of 20 new products through end-to-end research, generation of 20 intellectual property rights/patents and creation of 100 new processes specifically for MSMEs.
An empowered committee, chaired by CEO Niti Aayog, will oversee the scheme’s implementation and evaluation while a Project Appraisal Committee will approve projects and manage disbursements. The application process is open to all registered companies in India.
The Sectoral Groups of. Secretaries, in its report on Viksit Bharat Action Plan, had identified chemicals and petrochemicals as a critical and import dependent sector as their imports in 2023 was $75 billion while exports were around $44 billion in the same period. The SGoS had recommended that the sectors needed to move up the value chain and had specifically identified agrochemical intermediates, dyes, multi-use chemicals as key sub-sectors that need attention.
