PIP’s Development Offers Prosperous Future For Chemical And Petrochemical Industries: Siraj Saiyed, Director, Arete Group
The interview covers topics such as the impact of industrial park development on industrialisation in India, details of the Payal Industrial Park project, the challenges faced by industrial parks, favourable government policies for private players, and the group's future projects. Siraj also sheds light on the installation of the CETP plant at Payal Industrial Park, and its focus on creating a sustainable ecosystem for its clients.
1. How is the concept of Industrial Park Development reshaping industrialization in the country?
The concept of Industrial Park Development has been instrumental in reshaping industrialization in India by creating a more organized and conducive environment for businesses to operate. India is steadily approaching its goal of becoming a USD 5 trillion economy, and it is widely acknowledged that infrastructure and industrial development will drive India's future growth.
In India, industrial estates have traditionally been promoted by state industrial corporations like GIDC and MIDC. However, the concept of Industrial Parks takes this a step further by creating designated areas with comprehensive infrastructure and support services that facilitate the growth of industries. The creation of Industrial Parks has led to the development of high economic growth generating hubs, which has helped India to build a strong manufacturing base. The clustering of industries within these parks has created economies of scale, increased efficiency, and reduced costs, which has made Indian industries more competitive.
Industrial Parks provide the advantage of a synergistic ecosystem by providing common utilities such as roads, water, and electricity, which helps industries within the park to have a competitive cost and logistic advantage. This has made it easier for businesses to set up operations in India and grow their operations.
The concept of Private Industrial Parks is relatively new in India, and this is further taking industrial growth on a higher trajectory. Private Industrial Parks are coming up with sector-specific parks, which have a lot of competitive advantages and attract international investments. This has led to the development of more specialized industries, which has contributed to the growth of the Indian economy.
2. Please shed light on your landmark project PIP (Payal Industrial Park) in Dahej, Gujarat
Payal Industrial Park (PIP) is a state-of-the-art industrial park spanning over 3500 acres of land in one of the fastest-growing industrial hubs in India. The Park in Dahej, Gujarat, was built within the Gujarat PCPIR (Petroleum, Chemicals and Petrochemicals Investment Region) under PCPIR Policy 2007. It has been specially designed for chemical and petrochemical industries with an aim to provide a comprehensive ecosystem for businesses to operate. PIP is strategically located near the Dahej port, which provides a logistical advantage to the industries located in the park. PIP is going to be home to petrochemicals, chemicals, agrochemicals, fertilisers, dyes intermediates, pigments, chloralkali, inorganic and organic chemicals, speciality chemicals, polymer, rubber, metals and metallurgical, and textile industries.
The port provides easy access through port, air, rail and road to national & international markets, making it easier for businesses to import and export goods. Moreover, the Park also offers easy access to Dahej Port, Kandla Port, and Mundra Port. PIP has recently developed a helipad for its clients’ convenience too.
Another key feature of the park is that it has an Environmental Clearance (EC) for 7(C) categories from the Ministry of Environment, Forest and Climate Change (MOEF). In addition to its strategic location and EC clearance, the park also has access to fresh water and an in-house common effluent treatment plant, which helps to manage wastewater from the industries operating within the park. There is also a deep-sea discharge facility available, which helps to ensure proper disposal of the treated effluent.
Power and gas are also readily available at the site, making it a truly plug-and-play infrastructure for industries operating within the park. In addition, a CETP with a capacity of 50 million litres per day (MLD) will be built in the park to aid enterprises in controlling pollution and the advancement towards a cleaner environment. Further, it offers the clients/partner companies Single Window Clearance, Environmental Clearance, and a team of industry specialists.
3. Arete Group has also launched CETP plant at PIP; please tell us about that?
CETP (Common Effluent Treatment Plant) at PIP is one of the most important utilities in a chemical estate. We have been approved for the CETP for 50 MLD (Million Litres per Day), and the plant has started with a capacity of 15 MLD. The efficiency of a CETP will ensure a hassle-free operation of chemical units within the park.
The ETP (Effluent Treatment Plant) at the park is designed based on the best available technology. It has a two-stage biological treatment process that can handle effluent up to 5000 COD (Chemical Oxygen Demand) and 1800 BOD (Biological Oxygen Demand). Additionally, we are working on implementing the monitoring system in the collection network and each step of the CETP has been implemented to ensure compliance with regulatory requirements.
Continuous research and development of the efficient treatment of the effluent from new incoming industries will be an important task to maintain the overall performance of the CETP. The launch of the CETP is a significant step towards sustainable industrial development, as it ensures that the effluent from various industries is treated and disposed of in an environmentally responsible manner
4. Any challenges that you would like to bring into light?
Unfortunately, many Indian industrial parks are poorly maintained and managed due to a lack of resources and expertise. It is challenging to find ideal places for the development of industrial parks that feature land that is both contiguous and has a clear underlying title. Industrial Park leaders have difficulties in several areas, including securing land parcels, coordinating with relevant authorities to obtain necessary approvals, and clearances, etc., providing initial handholding in terms of pre-construction approvals, etc. In addition, in the Indian market, master planning in larger city regions or on the city's outskirts, where industrial activity is located, is time intensive. Lastly, right-sizing the infrastructure for any park is crucial to have readily available industrial infrastructure.
5. Which are the favourable gov policies that are paving a significant way in boosting this concept, especially for private players?
Today, India holds a special place among the world's leading economies. India has become a top investment destination owing to its solid foundation and ongoing commitment to reform. As a result of the government's reform initiatives, India has risen dramatically in the World Bank's Ease of Doing Business rankings, from position 142 in 2015 to position 63 in 2022. In addition, the 'Make in India' initiative has re-emphasized the importance of manufacturing while promoting India as an excellent place to set up business and invest.
Multiple programmes have been undertaken by the State government to revitalize and stimulate the commercial sector. Various government initiatives, such as the launch of the Production Linked Incentives (PLI) Scheme, Interests subsidy, GST subsidy, EPF reimbursement, Stamp duty reimbursement for mega industries, Some Incentive policies for MSMEs, Atmanirbhar Bharat, etc., would further encourage private companies to spend more in this area, leading to a boom in industrial activity over the next two to three years. However, supply chain efficiency can be improved through continued government focus on specialised freight corridors and industrial corridors.
6. Are there any further projects in the pipeline by the group?
PIP is developing into an area with a prosperous future for the chemical and petrochemical industries. It is a massive industrial park that is being constructed in several phases. As development is in full swing, PIP is prepared to expedite and aid in the establishment of one's industry. In addition, PIP is constructing infrastructure for a variety of basic utilities and facilities.
ARETE Group is also developing other Industrial Parks that will cater to different categories like Solar Park, Pharma Park, etc. in the Jambusar area of Gujarat.
