I&B Minister Ashwini Vaishnaw announced a new scheme to set up three dedicated chemical parks in the country at an outlay of Rs 3,030 crore.
The Cabinet, chaired by Prime Minister Narendra Modi, has approved Bharat Audyogik Vikas Yojana Rasayan, or BHAVYA-Rasayan Scheme in relation to the parks.
Out of the total outlay, Rs 3,000 crore would be towards the cost of establishing the common infrastructure facilities and basic utilities inside the parks.
The remaining Rs 30 crore will be spent for the administration-related work. The scheme would run for a period of 5 years from the current fiscal to 2030-31.
The minister said that the total investment for the establishment of these three parks would be much higher and the Rs 3,030 crore support is for common infrastructure facilities.
Vaishnaw said that many sectors in the economy are foundational and the chemical sector is one of them, as it provides basic raw materials for many other industries.
According to an official statement, the Centre would provide a grant of up to Rs 1,000 crore per park.
This will be subject to the minimum contribution of Rs 500 crore by the concerned state government.
About the benefits, the government said the scheme will "promote development of the chemical industry along the whole value chain, including upstream, downstream and ancillary industries, promoting efficient utilisation of resources, leading to lower logistics cost".