News: The Union Budget 2026–27 proposed three dedicated Chemical Parks and announced financial support to States for their establishment.
About Dedicated Chemical Parks
- Dedicated Chemical Parks are planned industrial clusters designed for chemical manufacturing with shared infrastructure and common environmental compliance facilities.
- Objective: The initiative aims to strengthen domestic chemical production, reduce import dependency, and enhance global competitiveness of the chemical sector.
- Budgetary Support: The Union Budget 2026–27 has allocated Rs. 600 crore in BE FY 2026–27 to support the establishment of three Chemical Parks.
- Model: The parks will operate on a cluster-based, plug-and-play model, providing shared infrastructure and standardized environmental compliance facilities.
- Selection: Locations will be decided through a challenge-based route, where states compete to host the facilities.
- Key features
- Cluster-Based Infrastructure: The parks will provide common infrastructure and shared utilities to support multiple chemical units efficiently.
- Plug-and-Play Facilities: Standardized facilities will help reduce project delays and support faster industrial establishment.
- Environmental Compliance Support: Shared environmental compliance facilities will assist industries in meeting regulatory requirements.
- Significance
- The scheme supports domestic manufacturing growth, improves supply efficiency, and contributes to long-term economic growth and job preservation.
Other Initiatives to Develop Chemical Industrial Parks are:
- The Petroleum, Chemical and Petrochemical Investment Regions (PCPIR) policy.
- It was notified in 2007 to attract investment and generate employment.
- Under the policy, cluster-based regions with common infrastructure and support services were planned to create a competitive business environment.
- Three PCPIRs were notified — Visakhapatnam in Andhra Pradesh, Dahej in Gujarat, and Paradip in Odisha.
- The Scheme for Setting up of Plastic Parks
- It was launched in 2010–11 to promote need-based plastic parks with shared infrastructure and common facilities.
- Under the scheme, 10 plastic parks were approved across different states and are at various stages of implementation.
