Arete Group announced the launch of Phase 2 of Payal Industrial Park (PIP) at Dahej, within the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR). Spread across 850 acres, the second phase expands on the success of Phase 1 and marks a significant step in Arete Group’s commitment to creating a modern, ESG-aligned industrial ecosystem.
Arete Group will invest approximately Rs 1,200 crore in the overall infrastructure development of the park across multiple phases. Phase 2 builds upon the robust infrastructure and industrial momentum of Phase 1, which attracted over Rs 12,000 crore in capital investment.
With Phase 2, Arete Group expects to surpass its previous investment benchmark, unlocking opportunities in the speciality chemicals, advanced materials, green energy, and allied manufacturing sectors.
The launch event also marked the inauguration of the Central Effluent Treatment Plant (CETP) at PIP, a critical infrastructure milestone towards sustainable industrialisation. The CETP, inaugurated in Phase-1 with a capacity of 2.5 MLD (expandable to 50 MLD), will help the industry with waste management initiatives. Lenient inlet norms and deep-sea discharge connectivity will drastically reduce the compliance burden on tenant industries.
PIP’s sustainability approach is anchored in four foundational pillars: economic development, environmental stewardship, social equity, and transparent governance. As part of its green roadmap, Arete Group has partnered with Fourier Earth, a Palo Alto-based hydrogen startup, to generate green hydrogen using modular, on-site units powered by renewable energy. The park also plans to set up a steam boiler facility with a transition plan from coal to biomass, aiming to reduce emissions and produce green steam. PIP has committed to becoming carbon neutral in operational emissions by 2040.
Additionally, the park spearheads the 25,000 Trees Project, pledging to plant 25,000 trees and develop over 250 acres of green spaces, including parks, grasslands, and urban forests, over the next decade. These efforts are expected to generate up to 10,000 tCO? in annual carbon sequestration.
Phase 2 also includes 80 acres dedicated to worker housing, creating over 1,000 residential units through dormitories, studio apartments, and 1-BHK configurations. The park will also feature a 35,000 sq. ft. executive clubhouse, ‘Ikshaana’, along with a 22-bed Primary Healthcare Centre, a community park, and a sensory park, ensuring that those working within PIP have access to dignified living, healthcare, and wellness spaces.
The success of this landmark project has also been made possible due to the progressive policy environment and robust infrastructure support extended by the Government of Gujarat, which continues to foster a conducive ecosystem for industrial innovation and growth.
“We are grateful for the unwavering support of the Government of Gujarat and inspired by our Hon’ble Prime Minister’s vision of industrial transformation.” Siraj Saiyed added.
PIP, zoned for hazardous chemical industries and equipped with plug-and-play infrastructure, continues to draw leading global and Indian companies, including ALTANA AG, Perfect Day Inc., Silox Group, Hindalco Industries Limited, Gharda Chemicals, and Yasho Industries. The park supports national development initiatives like Make in India and PM Gati Shakti, and features advanced infrastructure such as dedicated utility corridors, smart meters, green hydrogen readiness, and a 55 MW solar captive plant.
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