NEW DELHI: The Federation of Indian Chambers of Commerce and Industry (FICCI) has suggested that government should encourage investments in PCPIRs (Petroleum, Chemicals & Petrochemical Investment Regions) in Budget 2013.

FICCI noted that move was of great importance in order to secure raw materials such as Ethylene & Cl2, which are used for producing Vinyls.

The industry body also recommended avoiding indirect import of chlorine through EDC/VCM/PVC by retaining appropriate duty structure on these products.

The chlor-alkali industry in the country produces mainly caustic soda, chlorine and soda ash.

Several industries that have direct linkages with this sector, including Soaps and Detergent, Pulp and Paper, Textile Processing, Aluminium Smelting, Dyes and Dyestuff, Plastic Polymers, Rayon Grade Pulp, Pharmaceuticals, Electroplating and Adhesives/Additives.

To reduce the input costs, customs duty of 5 per cent on fuel oils should be abolished for imports by power intensive chlor-alkali industry, it said in its pre-Budget memorandum.

Allocation and pricing of natural gas used by captive power units feeding power to caustic soda and soda ash units should be made available under the administrative price mechanism, FICCI added.

FICCI is also rooting for the reduction of the interest rate and bring it to the international competitive prices so as to trim down on input cost for the chlor-alkali sector.