Chemicals sector: an important constituent of domestic industrial activity
Updated: Jan 10, 2014 11:47:40am
New Delhi, Jan 10 (KNN) The Chemicals and Petrochemicals sector in India constitutes about 14 per cent of the domestic industrial activity. As per latest data from industry associations, the size of the Indian Chemical Industry in 2010 was worth USD 108.4 billion.
The Chemical Sector includes basic chemicals as well as chemical products, petrochemicals, fertilisers, paints, gases, dyestuffs and dye intermediates, synthetic rubber, plastics including fabrications of plastic and moulded goods etc.
Investments in this sector are mostly capital intensive, with long gestation periods.
There are three PSUs in the chemicals sector – Hindustan Organic Chemicals Ltd (HOCL), Hindustan Insecticides Ltd (HIL) and Hindustan Fluorocarbon Ltd. (HFL). The fourth PSU namely Brahamputra Cracker and Polymers Ltd. (BCPL) is implementing the Assam Gas Cracker Project (AGCP).
The Department also has two autonomous institutes namely Central Institute of Plastics Engineering and Technology (CIPET) and Institute of Pesticides Formulation Technology (IPFT) under its administrative control.
Hindustan Insecticides Limited (HIL): The company produces Agro-Pesticides which are an important input for agriculture. It is also the sole manufacturer of DDT to meet the demand of National Vector Borne Disease Control Programme (NVBDCP) launched by the Government of India. HIL diversified into agro-chemicals in the late seventies to ensure supply of quality pesticides at reasonable prices to the farming community. The company faced a major challenge with a ban on Endosulfan by the Supreme Court of India on 14th May, 2011, that accounted for approximately 20 per cent of annual sales turnover. Despite the ban on Endosulfan, the Company increased the turnover to Rs. 301.11 crore, against Rs. 279.82 crore during last year and the turnover achieved is highest since its inception.
Hindustan Organic Chemicals Limited (HOCL): The company was set up with the objective of attaining self-reliance in basic organic chemicals. In fact this was the first endeavor to indigenize manufacture of basic chemicals and to reduce country’s dependence on imports of vital organic chemicals. The company has two units located at Rasayani (Maharashtra) and Kochi (Kerala).
Hindustan Fluorocarbons Ltd (HFL): Hindustan Fluorocarbons Ltd (HFL) is a subsidiary company of Hindustan Organic Chemicals Limited, incorporated on 14.07.1983, with its registered office in Hyderabad. The company is engaged in the manufacture of Poly Tetra-Fluoro Ethylene (PTFE) and Chloro-Di-Fluoro Methane (CFM-22). PTFE is extensively used in chemical, mechanical, electrical and electronic industries, and has strategic applications in the defence and aeronautical sectors.
Institute of Pesticide Formulation and Technology (IPFT): The Institute of Pesticide Formulation and Technology (IPFT) located at Gurgaon, Haryana, is a non-profit making organization registered under the Societies Registration Act in May 1991, under the Department of Chemicals and Petrochemicals. Its main objective is development and production of the state-of-the art user and environment friendly pesticide formulation technology and promotion of efficient application technologies suiting the existing requirements and for newer formulations. IPFT has established a healthy rapport with the pesticide industry and has been able to successfully transfer technology for safer, efficient and environment friendly formulations.
IPFT continues to be an accredited Laboratory by National Accreditation Board for Testing and Calibration Laboratories (NABL) as per ISO-17025 (2005) for the analysis of Pesticides and Chemical Weapons Convention (CWC) related chemicals. IPFT was granted BIS Recognition/Certification in June, 2011 with validity till May 2014.
Central Institute of Plastics Engineering & Technology (CIPET): CIPET is an autonomous body under the Department, engaged in Academic, Technology support and Research (ATR) for the benefit of plastic and allied industries in the country. It is a premier ISO 9001:2008 QMS, NABL; ISO/IEC 17020 accredited Institute providing specialized education across the spectrum of polymer science and technology from shop floor vocational training to PhD levels.
The 12th Plan period is significant for CIPET in terms of its mandate to fulfill the skill requirements of the growing plastic industry in the country, especially its commitment to train over six lakh persons by 2020 as part of the Prime Minister's National Skill Development initiative. As per the target, CIPET will train over two lakh persons in the 12th Plan through its vocational training programs.
The enrolment of students for diploma and higher programs has increased from 10,542 in 2012-13 to 11,494 in 2013-14 with a growth of around 9 per cent. In order to augment the growth of the plastics sector through skill development, CIPET is committed to skill development of 39,000 persons through vocational training programs during 2013-14, against an achievement of 26,277 persons in 2012-13.
Assam Gas Cracker Project (AGCP): The Assam Gas Cracker Project, which was initiated in pursuance of the Memorandum of Settlement signed between Central Government and All Assam Students Union (AASU) and All Assam Gana Parishad (AAGP) on 15th August 1985, is being implemented by a joint venture company Brahmaputra Cracker and Polymer Limited (BCPL), at a revised cost of Rs. 8920 crore, comprising capital subsidy of Rs 4,690 crore and debt and equity of Rs. 2961 crore and Rs. 1269 crore respectively.
The cumulative physical progress of the project is 94.9 per cent, as of November, 2013. Certain key units (Gas Sweetening Unit, Captive Power, Utilities and gas collection/pipeline at Duliajan) will be ready for commissioning towards end of January, 2014. The other units (cracker, polymerization and few utilities) will also be mechanically completed by that time.
The Assam Gas Cracker Project is expected to lead to substantial employment generation as a result of investments in downstream plastic processing industries and allied activities. The project is of economic significance for the State of Assam and the North-Eastern region.
Scheme of Setting up Plastic Parks: This scheme, launched in pursuance of the National Policy on Petrochemicals, aims at setting up need based plastic parks, with state-of-the-art infrastructure and enabling common facilities, to assist the Petrochemicals sector to move up the value chain and contribute to the economy more effectively. This scheme seeks to synergize and consolidate the capacities of the highly fragmented Indian plastic industry through cluster development.
Under the scheme, the Department of Chemicals and Petrochemicals has approved projects and released the first installment of Rs eight crores each as the grant-in-aid to Madhya Pradesh Plastic Park Development Corporation Ltd (MPPPDCL) and to Paradeep Plastic Park Limited, (PPPL), for setting up plastic parks in Raisen district of Madhya Pradesh and in Paradeep, Odisha.
Bhopal Gas Leak Disaster: Based on recommendations of the Group of Ministers on Bhopal Gas Leak Disaster, the Government decided in June, 2010 to provide ex-gratia, (in addition to compensation already paid) to the eligible categories of Bhopal Gas Victims. As per this decision, disbursal of ex-gratia to the Gas Victims was commenced by the Office of the Welfare Commissioner on 19.12.2010. During the period from 19.12.2010 to 31.10.2013, 54100 cases have been decided by the Welfare Commissioner and a sum of Rs. 721.76 crore has been sanctioned/disbursed in these cases.
Implementation of Chemical Weapons Convention (CWC): CWC is a universal non-discriminatory, multilateral, Disarmament Treaty, which bans the development, production, acquisition, transfer, use and stockpile of all chemical weapons. India is a party to this Treaty.
In terms of the allocation of work in relation to this CWC activity, the Department is responsible for chemical industry matters and more specifically preparation of declarations, facilitation of inspections by Organisation for Prohibition of Chemical Weapons (OPCW) teams as also creating awareness in the industry about its obligations under the Convention.
Following activities have been undertaken in 2013-14:
· Creating awareness about the obligations under the Convention by organising awareness generation programmes in different parts of the country with concentration of chemical industry relevant to the Convention.
· In view of the limited manpower resources available with the Department and the fact that the chemical industry relevant to the CWC is scattered in the country, compliance/assistance through PP mode is being undertaken by setting up CWC Help Desks. Six such Help Desks have been established at Vadodara, Navi Mumbai, Hyderabad, Chennai, Kolkatta and Delhi.
India Chem Gujrat-2013: To promote the Indian Chemical Industry, India Chem-Gujarat 2013, the 3rd edition of this event, was held from October 24th to 26th , 2013 at Gandhinagar, Gujarat with the theme “Gujarat: A New Gateway to International Possibilities”. The event mainly comprises an International Exhibition and Conference along with other associated activities.
The international exhibition was a huge success with participation of over 122 exhibitors, including seven from abroad, and received 6235 business visitors. In the Conference, 8 technical sessions were held to discuss topics relevant for the growth and development of the areas such as agrochemicals, chemical plant safety, Innovations, new developments and green chemistry, colorants, specialty chemicals, etc. A Knowledge and Strategy Paper on “Specialty, Fine, Agrochemicals, Personal Care Chemicals, Dyes,” was released.
On the sidelines of the event, CHEMEXCIL arranged a Reverse Buyer Seller Meet (RBSM) which was attended by 35 international participants from 14 countries. (KNN/PIB)
The Chemical Sector includes basic chemicals as well as chemical products, petrochemicals, fertilisers, paints, gases, dyestuffs and dye intermediates, synthetic rubber, plastics including fabrications of plastic and moulded goods etc.
Investments in this sector are mostly capital intensive, with long gestation periods.
There are three PSUs in the chemicals sector – Hindustan Organic Chemicals Ltd (HOCL), Hindustan Insecticides Ltd (HIL) and Hindustan Fluorocarbon Ltd. (HFL). The fourth PSU namely Brahamputra Cracker and Polymers Ltd. (BCPL) is implementing the Assam Gas Cracker Project (AGCP).
The Department also has two autonomous institutes namely Central Institute of Plastics Engineering and Technology (CIPET) and Institute of Pesticides Formulation Technology (IPFT) under its administrative control.
Hindustan Insecticides Limited (HIL): The company produces Agro-Pesticides which are an important input for agriculture. It is also the sole manufacturer of DDT to meet the demand of National Vector Borne Disease Control Programme (NVBDCP) launched by the Government of India. HIL diversified into agro-chemicals in the late seventies to ensure supply of quality pesticides at reasonable prices to the farming community. The company faced a major challenge with a ban on Endosulfan by the Supreme Court of India on 14th May, 2011, that accounted for approximately 20 per cent of annual sales turnover. Despite the ban on Endosulfan, the Company increased the turnover to Rs. 301.11 crore, against Rs. 279.82 crore during last year and the turnover achieved is highest since its inception.
Hindustan Organic Chemicals Limited (HOCL): The company was set up with the objective of attaining self-reliance in basic organic chemicals. In fact this was the first endeavor to indigenize manufacture of basic chemicals and to reduce country’s dependence on imports of vital organic chemicals. The company has two units located at Rasayani (Maharashtra) and Kochi (Kerala).
Hindustan Fluorocarbons Ltd (HFL): Hindustan Fluorocarbons Ltd (HFL) is a subsidiary company of Hindustan Organic Chemicals Limited, incorporated on 14.07.1983, with its registered office in Hyderabad. The company is engaged in the manufacture of Poly Tetra-Fluoro Ethylene (PTFE) and Chloro-Di-Fluoro Methane (CFM-22). PTFE is extensively used in chemical, mechanical, electrical and electronic industries, and has strategic applications in the defence and aeronautical sectors.
Institute of Pesticide Formulation and Technology (IPFT): The Institute of Pesticide Formulation and Technology (IPFT) located at Gurgaon, Haryana, is a non-profit making organization registered under the Societies Registration Act in May 1991, under the Department of Chemicals and Petrochemicals. Its main objective is development and production of the state-of-the art user and environment friendly pesticide formulation technology and promotion of efficient application technologies suiting the existing requirements and for newer formulations. IPFT has established a healthy rapport with the pesticide industry and has been able to successfully transfer technology for safer, efficient and environment friendly formulations.
IPFT continues to be an accredited Laboratory by National Accreditation Board for Testing and Calibration Laboratories (NABL) as per ISO-17025 (2005) for the analysis of Pesticides and Chemical Weapons Convention (CWC) related chemicals. IPFT was granted BIS Recognition/Certification in June, 2011 with validity till May 2014.
Central Institute of Plastics Engineering & Technology (CIPET): CIPET is an autonomous body under the Department, engaged in Academic, Technology support and Research (ATR) for the benefit of plastic and allied industries in the country. It is a premier ISO 9001:2008 QMS, NABL; ISO/IEC 17020 accredited Institute providing specialized education across the spectrum of polymer science and technology from shop floor vocational training to PhD levels.
The 12th Plan period is significant for CIPET in terms of its mandate to fulfill the skill requirements of the growing plastic industry in the country, especially its commitment to train over six lakh persons by 2020 as part of the Prime Minister's National Skill Development initiative. As per the target, CIPET will train over two lakh persons in the 12th Plan through its vocational training programs.
The enrolment of students for diploma and higher programs has increased from 10,542 in 2012-13 to 11,494 in 2013-14 with a growth of around 9 per cent. In order to augment the growth of the plastics sector through skill development, CIPET is committed to skill development of 39,000 persons through vocational training programs during 2013-14, against an achievement of 26,277 persons in 2012-13.
Assam Gas Cracker Project (AGCP): The Assam Gas Cracker Project, which was initiated in pursuance of the Memorandum of Settlement signed between Central Government and All Assam Students Union (AASU) and All Assam Gana Parishad (AAGP) on 15th August 1985, is being implemented by a joint venture company Brahmaputra Cracker and Polymer Limited (BCPL), at a revised cost of Rs. 8920 crore, comprising capital subsidy of Rs 4,690 crore and debt and equity of Rs. 2961 crore and Rs. 1269 crore respectively.
The cumulative physical progress of the project is 94.9 per cent, as of November, 2013. Certain key units (Gas Sweetening Unit, Captive Power, Utilities and gas collection/pipeline at Duliajan) will be ready for commissioning towards end of January, 2014. The other units (cracker, polymerization and few utilities) will also be mechanically completed by that time.
The Assam Gas Cracker Project is expected to lead to substantial employment generation as a result of investments in downstream plastic processing industries and allied activities. The project is of economic significance for the State of Assam and the North-Eastern region.
Scheme of Setting up Plastic Parks: This scheme, launched in pursuance of the National Policy on Petrochemicals, aims at setting up need based plastic parks, with state-of-the-art infrastructure and enabling common facilities, to assist the Petrochemicals sector to move up the value chain and contribute to the economy more effectively. This scheme seeks to synergize and consolidate the capacities of the highly fragmented Indian plastic industry through cluster development.
Under the scheme, the Department of Chemicals and Petrochemicals has approved projects and released the first installment of Rs eight crores each as the grant-in-aid to Madhya Pradesh Plastic Park Development Corporation Ltd (MPPPDCL) and to Paradeep Plastic Park Limited, (PPPL), for setting up plastic parks in Raisen district of Madhya Pradesh and in Paradeep, Odisha.
Bhopal Gas Leak Disaster: Based on recommendations of the Group of Ministers on Bhopal Gas Leak Disaster, the Government decided in June, 2010 to provide ex-gratia, (in addition to compensation already paid) to the eligible categories of Bhopal Gas Victims. As per this decision, disbursal of ex-gratia to the Gas Victims was commenced by the Office of the Welfare Commissioner on 19.12.2010. During the period from 19.12.2010 to 31.10.2013, 54100 cases have been decided by the Welfare Commissioner and a sum of Rs. 721.76 crore has been sanctioned/disbursed in these cases.
Implementation of Chemical Weapons Convention (CWC): CWC is a universal non-discriminatory, multilateral, Disarmament Treaty, which bans the development, production, acquisition, transfer, use and stockpile of all chemical weapons. India is a party to this Treaty.
In terms of the allocation of work in relation to this CWC activity, the Department is responsible for chemical industry matters and more specifically preparation of declarations, facilitation of inspections by Organisation for Prohibition of Chemical Weapons (OPCW) teams as also creating awareness in the industry about its obligations under the Convention.
Following activities have been undertaken in 2013-14:
· Creating awareness about the obligations under the Convention by organising awareness generation programmes in different parts of the country with concentration of chemical industry relevant to the Convention.
· In view of the limited manpower resources available with the Department and the fact that the chemical industry relevant to the CWC is scattered in the country, compliance/assistance through PP mode is being undertaken by setting up CWC Help Desks. Six such Help Desks have been established at Vadodara, Navi Mumbai, Hyderabad, Chennai, Kolkatta and Delhi.
India Chem Gujrat-2013: To promote the Indian Chemical Industry, India Chem-Gujarat 2013, the 3rd edition of this event, was held from October 24th to 26th , 2013 at Gandhinagar, Gujarat with the theme “Gujarat: A New Gateway to International Possibilities”. The event mainly comprises an International Exhibition and Conference along with other associated activities.
The international exhibition was a huge success with participation of over 122 exhibitors, including seven from abroad, and received 6235 business visitors. In the Conference, 8 technical sessions were held to discuss topics relevant for the growth and development of the areas such as agrochemicals, chemical plant safety, Innovations, new developments and green chemistry, colorants, specialty chemicals, etc. A Knowledge and Strategy Paper on “Specialty, Fine, Agrochemicals, Personal Care Chemicals, Dyes,” was released.
On the sidelines of the event, CHEMEXCIL arranged a Reverse Buyer Seller Meet (RBSM) which was attended by 35 international participants from 14 countries. (KNN/PIB)
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