Maharashtra has proposed setting up a chemical industry park near Vadhvan Port in Dahanu taluka, Palghar district, with land allocation of between 2,500 and 5,000 acres. The state government is seeking central approval under the Grand Chemical Park scheme to attract investment, strengthen industrial infrastructure and expand chemical manufacturing. Chief Minister Devendra Fadnavis announced the proposal during the inauguration of India Chem 2026. He also said the state was preparing a dedicated chemical industry policy, which is expected to be announced in the first week of November. The policy is intended to encourage investment, simplify regulatory procedures and support expansion in the chemical sector. The proposed site’s proximity to Vadhvan Port could support the development of industrial infrastructure and manufacturing clusters, while offering logistical advantages to chemical companies and related industries. However, the location has environmental considerations, as the area was previously designated as ecologically sensitive under the Environment (Protection) Act, 1986. Environmental assessments and statutory clearances will therefore be important to the project’s feasibility. Maharashtra plans to use its Maitri single-window platform and the Invest Maharashtra initiative to coordinate approvals and facilitate investment. The Grand Chemical Park scheme, announced in the Union Budget, provides central support of Rs. 10 bn, while the state contribution is Rs. 5 bn. The scheme requires a minimum land area of 2,000 acres, making the proposed allocation eligible in principle, subject to formal approval and compliance with other conditions. The Centre has also included advanced chemicals and petrochemicals in a Rs. 1 tn research, development and innovation scheme. The initiative is intended to promote technological capabilities and innovation across strategic industries. Maharashtra’s proposed park could complement that effort by attracting manufacturers, supporting industrial investment and creating opportunities for technology development. Progress will depend on the state’s formal submission, central approval, land allocation and completion of the environmental clearance process.