Maharashtra plans to develop a large chemical industry park near Vadhvan Port, with the state government proposing to allocate between 2,500 and 5,000 acres for the project. Chief Minister Devendra Fadnavis announced the proposal at the inauguration of India Chem 2026 in Goregaon and said the state had sought approval from the Centre for the proposed industrial hub.
The project aims to support the growth of Maharashtra’s chemical industry by creating dedicated industrial infrastructure and attracting fresh investments. However, the development remains subject to central government approval and the applicable regulatory clearances.
Fadnavis also announced that the state government was preparing a separate policy to encourage investment in the chemical sector. The policy is expected to be announced in the first week of November 2026.
Maharashtra Plans New Chemical Sector Investment Policy
Alongside the proposed industrial park, the state government is working to simplify industrial approvals and improve access to government services for investors. Fadnavis highlighted the role of the Maitri single-window platform and the Invest Maharashtra initiative in facilitating industrial development and investment.
According to the Chief Minister, Maharashtra’s chemical industry currently provides around three lakh jobs, with the potential to double employment. The proposed park and the upcoming investment policy are expected to support further expansion of the sector.
The availability of dedicated industrial land could help accommodate chemical manufacturing facilities and related industries. Its proposed location near Vadhvan Port could also provide opportunities to connect port infrastructure with industrial activity, although the project’s final scope and development plans are yet to be confirmed.
Centre’s Grand Chemical Park Scheme
The proposal comes as the Union government advances its Grand Chemical Park scheme to promote the development of large-scale chemical industry clusters.
Union Minister for Chemicals and Fertilisers J P Nadda said the Union Budget had allocated ₹1,000 crore for the initiative, while participating state governments would contribute ₹500 crore.
Under the scheme, proposed projects must have a minimum land area of 2,000 acres. The Centre would also facilitate environmental clearances for projects under the initiative.
Nadda said the scheme formed part of the government’s broader development agenda, including the ambition to build a developed India and achieve a US$1 trillion economy by 2040.
He also highlighted the inclusion of advanced chemicals and petrochemicals in the Centre’s ₹1 lakh crore research, development and innovation scheme, indicating a policy focus on developing industrial capabilities and supporting innovation in these sectors.
Maharashtra’s proposed park, with a planned area of 2,500–5,000 acres, exceeds the minimum land requirement specified under the Grand Chemical Park scheme. However, the state’s proposal is still awaiting the Centre’s approval.
Environmental Considerations Around Vadhvan Port
The proposed location near Vadhvan Port could strengthen links between port infrastructure and chemical manufacturing. However, environmental considerations remain an important factor in the project’s development.
Dahanu taluka, where Vadhvan Port is being developed, was previously designated an ecologically sensitive area under the Environment (Protection) Act, 1986. The proposed chemical park will therefore need to proceed in accordance with applicable environmental requirements and clearances.
The state government’s proposal marks a step towards expanding Maharashtra’s chemical manufacturing capacity and attracting investment to the sector. The next stages will depend on the Centre’s decision, the final land allocation and the regulatory approvals required for development.
