Maharashtra to unveil chemical sector policy by October, plans Rs 1,000 crore fund

Senior Maharashtra government officials said at the "MahaChem 2026" event in Mumbai that the state will roll out a separate policy for the chemical sector by the end of October. The government is also scouting land in Palghar, Raigad and Ratnagiri to build chemical parks spanning 2,500 to 5,000 acres each. A Rs 1,000 crore "Maharashtra Industry and Investment Fund" is being planned to support research, technology and innovation.

The government said the new policy will strengthen Maharashtra's already robust chemical production base and help make the state a global hub for the sector. It is expected to open up investment opportunities in high-value areas such as specialty chemicals, advanced materials, battery materials, electronic chemicals, advanced polymers and bioplastics.

Dr P Anbalagan, Principal Secretary of Maharashtra's Department of Industries, Investment and Services, speaking at the ASSOCHAM MahaChem 2026 event, said the state government is building a strong ecosystem for the chemical sector through a separate policy, new chemical parks and steps to support innovation and technology-driven growth. "Maharashtra is working on a separate chemical sector policy, and we expect it to be implemented by the end of October," he said. "This policy will address the specific needs of the sector and will help ongoing projects in emerging areas such as bioplastics, biotechnology and biomanufacturing."

He said the government is looking for land for 2,500 to 5,000-acre chemical parks in locations such as Palghar, Raigad and Ratnagiri, with faster approvals and ease of doing business given top priority. The proposed Rs 1,000 crore Maharashtra Industry and Investment Fund will support research, technical preparation and innovation, strengthening the financial ecosystem for new technology and business.

Praveen Pardeshi, the Chief Minister's chief economic advisor and CEO of Mitra, said the chemical and pharmaceutical sector will play a very large role in Maharashtra's goal of becoming a one-trillion-dollar economy. He said the sector's competitiveness will depend on infrastructure, availability of power and water, and supportive policy reforms. "This requires an ecosystem that drives faster growth and attracts more private investment," he said. "Affordable power and water supply, flexible energy availability, sustainable water management and supportive policy reforms for strategic sectors like chemicals and pharmaceuticals will play a key role in boosting Maharashtra's industrial competitiveness."

Chief Minister Devendra Fadnavis sent a message through ASSOCHAM that the government is committed to bringing new investment to the sector and easing the business environment through the "Maitri" single-window platform, faster approvals and policy incentives. "We appeal to entrepreneurs to choose Maharashtra for their next big project," he said. "The state government is fully committed to creating a business-friendly environment through the single-window Maitri platform, faster permissions and strong policy incentives. A dedicated policy for this sector will be announced soon, which will help attract investment and accelerate growth."

The Chief Minister also said the chemical and petrochemical sector is a key engine for Maharashtra's one-trillion-dollar economy goal, and that the government will continue to provide financial, logistical and administrative support to build an innovation-driven and sustainable industrial future.

According to an ASSOCHAM-EY report titled "Maharashtra: Fuelling India's Trillion-Dollar Chemical Vision" released at MahaChem 2026, Maharashtra's chemical sector is valued at about 22 billion dollars, with more than 3,600 factories and 13 declared chemical zones. The sector contributes about 19 percent of India's total chemical GVA and 17 percent of the country's chemical exports. It accounts for 13.5 percent of Maharashtra's total industrial production and has provided employment to about 3 lakh people.

The report identified major opportunities for Maharashtra to move up the value chain in emerging areas such as specialty chemicals, battery materials, electronic chemicals, advanced polymers, specialty coatings, pharma and agrochemical intermediates, and bioplastics. Milind Hardikar, chairman of the ASSOCHAM Maharashtra State Council, said the sector is at a decisive turning point, and that future growth must go beyond raising production capacity toward specialty chemicals, high-value derivatives and sustainable green chemistry. "This sector is at a very important juncture," he said. "It is no longer just about increasing capacity, but about shifting toward specialty chemicals, high-value derivatives and sustainable green chemistry. We must balance growth with supply chain resilience, raw material security and sustainable production, and for that, industry and government will have to work together."

At the ASSOCHAM-organised "MahaChem 2026 - 3i: Catalyzing Investments, Innovation and Infrastructure" conference, policymakers, industry leaders, investors, researchers and startups discussed the next phase of Maharashtra's chemical sector, including investment opportunities, innovation and sustainable production, infrastructure and logistics, standardisation and certification, and taking new chemical technologies from concept to market.

The conference also noted the need for greater coordination between policy, infrastructure, investment, research and industry to make Maharashtra globally competitive in next-generation chemical production.