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Chemicals, Petrochemicals, Oil & Gas

The state has a strong presence in the chemicals, petrochemicals and oil & gas sector. It contributes 27.4 per cent of the country's chemicals, petrochemicals and oil & gas output. The state also accounts for 18.2 per cent of the country's employment in the sector. The chemicals sector in the country is expected to grow at 15 per cent per annum till 2010 and thus, presents ample opportunities for the state. Opportunities would primarily exist in the areas of polymers & plastics, fertilisers and synthetic yarns.

The key competitive strength of the state in this industry is the upstream and downstream linkages for raw materials and products. The availability of oil & gas from Bombay High oil fields (offshore of Mumbai) has spurred the large-scale development of chemicals and petrochemicals industry in the state. Bombay High accounts for over 50 per cent of the country's oil & gas production.

All major domestic and number of global chemicals & petrochemicals players have a presence in the state. These include Hindustan Petroleum, Bharat Petroleum, Reliance Industries, Indo-Rama Synthetics, Rohm & Haas and Dow Corning.

In 2004, Indo-Rama Synthetics announced plans to expand the polyester production capacity at its plant at Nagpur. The expansion will cost US$ 200 million and will double the polyester production capacity from 800 tonnes per day to 1,600 tonnes per day. Reliance Industries is increasing the polyester fibre and yarn production capacity at its Patalganga plant. Bharat Petroleum Corporation proposes to invest US$ 2.7 billion at its Mumbai refinery to install facilities for producing Euro IV compliant fuel.