Dedicated Chemical Parks
Context:
In the Union Budget 2026-27, the government announced a new scheme to support States in establishing three dedicated Chemical Parks.
This initiative is designed to strengthen domestic chemical manufacturing and reduce import reliance
What are Chemical Parks?
Chemical parks are planned industrial clusters explicitly designed for chemical and petrochemical manufacturing, where multiple units operate together, sharing world-class infrastructure and common services.
Key Features of the Scheme:
The parks will be established through a challenge-based route, encouraging competition among States to provide the best ecosystem.
They will follow a cluster-based, plug-and-play model, which includes:
Shared infrastructure to lower operational costs.
Standard environmental compliance facilities to ensure sustainability.
A total of ₹600 crore has been allocated in the Budget Estimates (BE) for FY 2026-27 to support this initiative.
Related Green Initiative (CCUS):
To align industrial growth with environmental goals, the Budget also announced an allocation of ₹20,000 crore for the development and deployment of Carbon Capture, Utilisation and Storage (CCUS) technologies.
This is critical for the chemical sector, which is energy-intensive, to transition towards lower carbon emissions.
Significance of the Chemical Sector:
India is currently the 6th largest chemical producer in the world.
The initiative positions India to enhance supply-chain resilience and become a reliable global hub for chemical manufacturing, particularly in higher-value and specialty segments.
The new parks will build upon established chemical clusters in states like Gujarat, Odisha, Andhra Pradesh, and Tamil Nadu.