Page 60 - Plastics News June 2023

ARTICLE

Clusters in Chemicals and Petrochemicals: PCPIR
Making India A PetChem Hub

The purpose of the PCPIR is to create an environmentally sustainable investment region for the devel-
opment of manufacturing, trading, services and logistics in India, in the field of petroleum, chemicals
and petrochemicals. The region focuses on investment and the development of infrastructure, which
includes the local supply of raw materials and resources, transportation, storage and logistics, and the
social infrastructure required for its operation. Overall, it is intended to create an attractive regional
environment to facilitate the development of the petrochemical industry in the region and to promote
economic development in the country. Varun Singh Poonia
IIT, Delhi
PCPIR aims to drive infrastructure, innovation, facilitate knowledge transfer, and promote collaboration among industry
players across the entire value chain to make the production of chemicals and petrochemicals more efficient and sustain-
able.
Global Chemicals Market
In 2017, the value of the global chemicals market exceeded US $5 trillion. By 2030, it is anticipated to double. In emerg-
ing economies, both output and consumption are rising quickly. Global supply chains, and the trade of chemicals and
products, are becoming increasingly complex. Growth in chemical-intensive industry sectors (such as building, agricul-
ture, and electronics), driven by global megatrends, creates risks but also opportunities to improve sustainable produc-
tion, consumption, and product innovation.

Source: Global Chemicals Outlook-II by UNEP
About 62% of the 345 million tonnes of chemicals consumed in the EU in 2016 were hazardous to health, according
to statistics from Eurostat, the statistical office of the European Union (EU), collected in 2018 by the European Envi-
ronment Agency. Leading businesses, from chemical manufacturers to retailers, are implementing human rights-based
policies, complete material disclosure, risk reduction beyond compliance, and sustainable supply chain management.
Cluster in Economies
To increase efficiency, the chemical and petrochemicals sector has a history of significant cluster-like ties amongst busi-
nesses. However, as the comparison with clusters in other sectors of the economy demonstrates, this legacy hasn't only
been a boon; in some respects, it has also constrained how clusters and cluster projects are handled in the chemical
industry.
The Indian petrochemical sector may use clusters as a tool to move to a new stage of successful growth, which is an ob-
vious possibility. Moving away from a concept of internal optimization inside businesses and toward a model of cluster-
based optimization across networks of co-located activities is necessary for the Chemicals and Petrochemical industry's
competitiveness upgrade.
To increase competitiveness at the level of enterprises, the cluster, and the cluster-specific business environment, cluster
initiatives in the Indian petrochemical sector must shift from a focus on supply-chain improvements to a broad-based
agenda. The concept of industry-based collaboration in the Indian petrochemical sector has to be replaced with a new
structure that involves all tiers of government, academic and research institutions, as well as industrial partners.
60 PLASTICS NEWS June 2023