Common Facility Centre to Boost R&D in Chemicals in Gujarat

Gujarat Chemical Association (GCA) has planned to set up a Common Facility Centre (CFC) in Ahmedabad for R&D in chemical clusters. According to experts, the facility is likely to increase the chemical production capacities of Gujarat, where research and development in chemicals account for more than 50 per cent of the industrial production. Centre has already acknowledged GCA’s plan and ministry of micro, small and medium enterprises has given the approval for establishing the centre.

The new facility will be coming up at Naroda Enviro Projects Limited, Odhav and as media reports suggest it will be called ‘Centre for R&D in Chemical and Allied Industries for Micro, Small and Medium Enterprises (MSME) Sector.’

The new centre will support scientific research and focus on a number of activities including design and development in chemical field. New product development, cost effective products technologies, reducing carbon footprint and boosting energy conservation will remain the core of the research activities.

The development is another positive initiative by the government to boost MSME sector in the state.

The Gujarat government policy has provided enough support for development of micro, small and medium sized chemical & petrochemical industries in the state.

In an column exclusively written for CEW earlier, Jaimin Vasa, President, GCA, has revealed that interest subsidy on loans for modernisation programmes, interest subsidy on eligible parameters, like sector, size, etc, venture capital and patent monetisation assistance, technology acquisition fund, support for vendor development, support for auxiliary industries for value-addition, cluster development in PPP mode, rehabilitation of sick units, etc, are some of the key policy features that have benefitted the industry in the state.

According to the Industries Commissionerate, Government of Gujarat, Gujarat produces around 94 per cent soda ash, 80 per cent salt and 42 per cent caustic soda of the total production in India. Also, Gujarat contributes significantly to the country’s petrochemicals production (62%), chemicals production (51%) and pharmaceuticals production (35%). The chemical industry is today the largest and fastest growing component of Gujarat’s manufacturing sector.

Why Gujarat will continue to lead the Chemicals and Petrochemicals industry in India?
  • Gujarat is well-connected to major trade routes to Europe, Middle-East, East Asia and Australia.
  • Gujarat has nearly 38 per cent (564 km) of the dedicated freight corridor passing through. Gujarat state, having one-fifth of country’s coastline (1,600 km) with 41 ports, second highest in the country.
  • The state also targets to handling 40 per cent of the traffic through Indian ports by 2020.
  • Gujarat is the only state in India organising the ‘Vibrant Gujarat’ Summit a biennial summit organised to attract foreign investment for development of Gujarat aimed at bringing together business leaders, investors, corporations, thought leaders, policy and opinion makers. This summit served as a perfect platform to understand and explore business opportunities with the State of Gujarat. During these summits large-scale investments flow from the partner countries.
  • Japan has a cooperation pact with the Union Government for 19 projects, of which seven are proposed in Gujarat. In fast-industrialising zones of Dahej and Sanand in the state, two ‘Smart City’ projects by Japan are proposed.
  • Gujarat is the only state in India having concentration of petroleum, chemical and petrochemical estates around PCPIR. Out of the all the PCPIRs in India, Gujarat PCPIR has the benefit of rich natural resources and feedstock, chemical port and storage facility and PCPIR-specific infrastructure - effluent disposal pipelines, solid waste disposal sites.
  • Gujarat is the only state to have better infrastructure like road, rail, port, power, gas, water with planned up-gradation.
  • Gujarat is the only state in India with Integrated State Wide Gas Grid and having 24 hours uninterrupted electricity. Gujarat is the only state in the country to have LNG terminals (at Dahej & Hazira)
  • Over and above it is clearly evident that Gujarat is definitely poised to become the global business hub of India. To progress continually, the Government of Gujarat is constantly in the process of identifying new avenues of investment opportunities not only in the industrial sector, but in the chemical sector as well.
Excerpts from Jaimin Vasa’s column