Maharashtra, Madhya Pradesh and Odisha have separately announced plans to attract investors to their chemical and petrochemical sectors through business-friendly policies, streamlined regulatory frameworks and efforts to expedite project approvals. These states have emerged as preferred investment destinations for domestic and international chemical and petrochemical producers, including upstream and downstream players, seeking to establish manufacturing facilities and expand their operations to serve domestic markets and boost exports.
The states are focused on facilitating industrial development through faster clearances, land acquisition support and infrastructure development, enabling investors to establish manufacturing facilities and scale up operations. Their strategic locations, connectivity and access to industrial infrastructure further strengthen their appeal to domestic and international investors seeking to expand their presence in India’s chemical and petrochemical sectors.
In addition, the three states offer a conducive business environment for developing integrated industrial ecosystems encompassing upstream and downstream manufacturing, ancillary industries and related services. Opportunities across the value chain can help companies improve operational efficiency, strengthen supply chains and cater to growing domestic demand. Their industrial development initiatives, coupled with access to key consumption centres, logistics networks and export markets, also offer significant potential for businesses to expand their market reach, enhance competitiveness and strengthen India’s position as a global manufacturing hub for chemicals and petrochemicals.
Chemical park near Vadhvan Port in MaharashtraMaharashtra Chief Minister Devendra Fadnavis announced that the state government will unveil a dedicated chemicals industry policy in the first week of November and develop a mega chemicals park near the upcoming Vadhavan Port in Palghar district. The state is willing to allocate between 2,500- 5,000 acres for the proposed park and has urged the Centre to approve the project under its Bhavya Rasayan Parks initiative. Speaking at India Chem 2026, Fadnavis said on Thursday that the proposed policy was in its final stage of formulation and would provide a long-term framework to accelerate investment and growth in the chemicals sector.
The government has consulted industry leaders, including Reliance Industries executive director Nikhil Meswani and UPL chairman Jai Shroff, to incorporate industry requirements into the policy. Maharashtra currently has around 3,600 entities operating in the chemicals sector, contributing 19 percent of the industry's gross value added (GVA) and 17 percent of India's chemical exports, while providing employment to approximately 300,000 people. Fadnavis said the state's existing port infrastructure, particularly Jawaharlal Nehru Port Authority (JNPA), and the proposed Vadhavan Port would strengthen its position as a major chemicals manufacturing and export hub.
Union Minister for Chemicals and Fertilisers J P Nadda said the Centre had announced the Bhavya Rasayan scheme in the Union Budget, under which the central government would provide Rs 1,000 crore and the state government would contribute Rs 500 crore. He assured the industry that the Centre would facilitate environmental clearances for projects to support capacity expansion and accelerate industrial development. Nadda said India's chemicals sector, currently valued at around US$ 220 billion, has the potential to grow to US$ 1 trillion by 2040, in line with the government's Viksit Bharat vision. He also called on industry players to increase investment in research and development (R&D), noting that advanced chemicals and petrochemicals have been included in a newly launched Rs 1 lakh crore fund to promote research and innovation.
The proposed chemicals park near Vadhavan Port is expected to support an integrated industrial ecosystem, bringing together upstream and downstream manufacturing, ancillary industries and related services. However, the project's development will require the necessary regulatory approvals and careful consideration of environmental sensitivities in the region, particularly as parts of Dahanu taluka in Palghar district have previously been designated as ecologically sensitive.
Madhya Pradesh – an emerging hubMadhya Pradesh Chief Minister Mohan Yadav has invited domestic and international companies to invest in the state's chemicals, petrochemicals, fertilisers and pharmaceutical sectors, positioning the state as an emerging manufacturing hub. Yadav highlighted the Rs 49,000-crore Bharat Petroleum Corporation Ltd (BPCL) refinery expansion and ethylene cracker project at Bina as a major catalyst for downstream industrial development. The project is expected to produce more than 2.2 million tonnes of petrochemical products annually, creating opportunities for polymer processing, plastics, packaging, pharmaceuticals, textiles and automobile-related industries.
Yadav urged companies, including Indian Oil Corporation, Reliance Industries and Haldia Petrochemicals, to explore polymer processing and distribution opportunities around Bina. He also called on agrochemical manufacturers such as UPL, PI Industries, Dhanuka and Syngenta to consider Madhya Pradesh as a manufacturing base rather than merely a consumer market. Emphasising the state's investor-friendly policies, simplified procedures and availability of industrial infrastructure, he assured investors of the government's support and necessary facilities. He also invited global chemical majors, including BASF, Dow, Arkema and Mitsubishi Chemical, to explore investment and expansion opportunities.
To strengthen downstream development and ensure that micro, small and medium enterprises (MSMEs) benefit from large petrochemical investments, the state is developing polymer-processing clusters and plastic parks. These include a 121-acre plastic park at Tamot in Raisen district and a 93-acre facility at Bilaua in Gwalior. The industrial potential of Nagda, Vijaypur and Ashta, along with the PM MITRA textile park in Dhar, gain special significance where existing infrastructure could support investments in chemicals, polymers, textiles and gas-based industries. Madhya Pradesh has received investment proposals worth more than Rs 34 lakh crore over the past nearly three years, of which projects worth over Rs 12 lakh crore had moved towards implementation.
Yadav held discussions with Aditya Birla Group Chairman Kumar Mangalam Birla to discuss industrial growth and propose a Rs 22,000 crore new investment for Hindalco Industries in Singrauli. The chief minister invited the group to consider expanding its aluminium and downstream manufacturing operations in Madhya Pradesh, highlighting the state's industry-friendly policies, availability of land and infrastructure, and growing opportunities across chemicals, metals and allied industries. The proposed investment could strengthen the state's industrial ecosystem, generate employment and create opportunities for ancillary industries and MSMEs.
Odisha rolls out red carpetIndia’s north-east state of Odisha has invited domestic and international chemical and petrochemical manufacturers to establish new facilities and expand existing operations in the state, offering assistance with land identification, infrastructure development and regulatory approvals to accelerate investments and promote downstream manufacturing. The state Chief Minister Mohan Charan Majhi said in Mumbai on Thursday that the state government would work closely with investors at every stage, from site selection and infrastructure planning to project implementation and commercial production.
He outlined Odisha’s ambition to diversify beyond its traditional strengths in mining and metals and emerge as a major chemicals and petrochemicals manufacturing hub. The state is leveraging its deep-draft ports, Indian Oil Corporation Ltd’s 15-million-tonne-per-annum refinery at Paradip, industrial feedstock availability and a strong manufacturing base to attract investments. Existing steel, aluminium, fertiliser and mining industries provide substantial demand for industrial gases, process chemicals, coatings, refractories and water-treatment chemicals, creating opportunities for manufacturers to establish facilities close to major consumers.
The state has identified Paradip, Dhamra and Gopalpur as potential destinations for port-based chemical and petrochemical industries, while Angul and Dhenkanal could attract projects requiring access to coal, power, metals and established industrial customers. Paradip remains central to the state's strategy, supported by the refinery and petrochemical complex, the Paradip Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) and the plastic park. These facilities offer opportunities in polymers, plastic products, packaging, technical textiles and other downstream industries.
The government is also facilitating common effluent treatment plants, storage and logistics facilities, utility corridors, pipeline connectivity and deep-sea discharge systems, depending on project requirements. Majhi said Odisha was prepared to extend a “red carpet to red-category industries”, while emphasising environmental compliance, industrial safety and transparency.
The state has attracted 56 companies in the chemical and petrochemical sector, with proposed investments of Rs 1.93 lakh crore and potential employment generation of 112,324 people. Of these, 27 projects involving investments of Rs 60,825.34 crore have been grounded or inaugurated. Across industries, Odisha has received investment proposals exceeding Rs 22.5 lakh crore, of which more than Rs 12.5 lakh crore have been approved. Around 200 industrial units have been established in less than two-and-a-half years, involving cumulative investments of Rs 3.52 lakh crore.
Odisha is targeting investments in coal-to-chemicals, coal-gasification derivatives, specialty chemicals, fluorochemicals, battery materials, advanced polymers, refrigerants and green chemicals. Hemant Sharma, Additional Chief Secretary for Industries, Home and Information and Public Relations, said the government would work with companies to address infrastructure, utility and regulatory requirements.
DILIP KUMAR JHA
Editor
dilip.jha@polymerupdate.com
