Gandhinagar, Jan 30 (KNN) The dyes and chemicals industry in Gujarat is urging support from the central government under the Atmanirbhar Bharat initiative to revive the production of certain products that were once manufactured locally but are now being imported from China.

The sector is also eagerly awaiting the implementation of the Production Linked Incentives (PLI) scheme.

Nilesh Damani, Secretary, Gujarat Dyes Manufacturers Association (GDMA), highlighted the challenges faced by the industry, stating that Gujarat has traditionally been a key hub for dyes and chemicals.

“There has been some degree of a revival in the last few months, but we are not competitive with China in the international market. In the last year, China has also increased its supply to Bangladesh, which used to be a significant market for dyes and chemicals manufacturers in Gujarat,” Damani added.

Damani emphasised the need for government support, pointing out the significant incentives provided by the Chinese government for chemical exports, ranging from 13-17 per cent, compared to India's approximately 5 per cent under various schemes.

He highlighted specific products like J acid, Tobias acid, and MPDSA, which were previously manufactured in Gujarat but have become economically unviable due to price wars initiated by China. He urged government assistance for the local production of these essential raw materials.

Haresh Bhuta, President, GDMA, emphasised the importance of Common Effluent Treatment Plants (CETPs) for the chemicals industry's growth.

Expressing disappointment, Bhuta added, “However, there is no assistance from the central government as of now. We demand that the central government announce subsidies for new CETPs and for upgrading existing CETPs like earlier.”

(KNN Bureau)