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| Industry Overview
:: Chemicals ,Petrochemical &
Fertilizer |
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100
Days Plan of Ministry of Chemicals and Fertilizers
A.
DEPARTMENT OF FERTILIZER
(1) UPGRADATION OF
FERTILIZER MONITORING SYSTEM
Fertilizer Monitoring
System (FMS) will be upgraded to ensure timely
availability of fertilizers and quick disbursal of
subsidy.
(2) REVIVAL CLOSED
UREA UNITS
Various feasible options
for revival of closed units of Hindustan Fertilizer
Corporation Limited and Fertilizers Corporation of
India
will be generated before 30th August, 2009.
(3) RESTRUCTURING OF
SICK PSUs i.e. FACT, MFL etc.
A roadmap to make these
units profit making ventures will be prepared through
financial restructuring, modernization, conversion of
feedstock to gas etc.
(4) INVESTMENT POLICY
FOR PROMOTING INDIGENOUS PRODUCTION IN UREA AND P&K
SECTOR
Investment policy in urea
and P&K sectors will be revisited and a
comprehensive policy will be drafted to attract
investments in these sectors.
(5) AMENDMENTS TO NEW
PRICING SCHEME STAGE III (NPS-III)
There is a need to
amend certain provisions of the New Pricing Scheme
Stage-III (NPS-III) for Urea in order to address the
concerns of the industry. Accordingly, as per the
decision of CCEA, modified NPS III would be implemented.
(6) MODIFICATION IN
CERTAIN ELEMENTS OF THE CONCESSION SCHEME FOR P&K
FERTILIZERS w.e.f. 1st APRIL 2009
Concession Scheme for
P&K fertilizers w.e.f. 1.4.2008 is continuing.
However, in the implementation of the scheme, it has
been observed that certain modifications are required to
modify methodology of costing and price adjustments. As
approved by CCEA, all these modifications would be
implemented.
(7) CONTINUATION OF
CONCESSION SCHEME FOR SSP w.e.f. 1st May 2009
Concession scheme for SSP
approved by the Government w.e.f. 1st May 2008 is in
effect up to 30th June 2009. The matter of continuation
of the scheme of concession for SSP w.e.f 1st July 2009
onwards shall be submitted to CCEA and finalized.
B.
DEPARTMENT OF CHEMICALS AND PETRO-CHEMICALS
(1) World class
investment hubs in the chemicals and Petrochemicals
sectors through provision of state of the art
infrastructure under the Petroleum Chemicals and
Petrochemicals Investment Region Policy (PCPIR) are
proposed to the established in Andhra Pradesh, Gujarat
and
West Bengal
. Memorandum of Agreement with each of these States will
be signed before 30th August, 2009.
(2) CIPET Centre
at Jaipur will be made functional before 30th August
2009.
(3) Plastic waste
management centre at Guwahati will start functioning.
(4) To ensure
speedy implementation of the Assam Gas Cracker Project,
enhanced financial outlay will be provided.
(5) To promote
reprocessing of plastic waste, a note of the
COS
will be prepared on various facts of plastic waste
re-processing.
C.
DEPARTMENT OF PHARMACEUTICALS
(a) MEDICINES
AVAILABILITY
(1) Affordable
medicines for all: To decide Policy Initiatives and
Action Plan to provide all types of medicines at
affordable prices used by common people throughout the
country.
(2) Formulation of
New Pharma Policy: For holistic development of Pharma
industry and ensure availability of essential medicines
for major diseases, for all.
(3) Revival of
Indian Drugs and Pharmaceuticals Limited: To utilize
idle capacity and locked investment in the public sector
for production and availability of essential medicines
and of mass consumption for all.
(b) RESEARCH AND
DEVELOPMENT INCLUDING HUMAN RESOURCE
(1) Cabinet
clearance for full Operationalisation of 6 new National
Institutes of Pharmaceutical Education and Research
(NIPERS).
(2) A
comprehensive plan for creation of infrastructure
facilities for R&D sector and improvement of
manpower skills in the Pharma Sector.
The
Indian Chemical sector accounts for 13-14% of total
exports and 8-9% of total imports of the country. In
terms of volume, it is 12th largest in the world and 3rd
largest in
Asia
. Currently, per capita consumption of products of
chemical industry in
India
is about 1/10th of the world average.
Over
the last decade, the Indian Chemical industry has
evolved from being a basic chemical producer to becoming
an innovative industry. With investments in R&D, the
industry is registering significant growth in the
knowledge sector comprising of specialty chemicals, fine
chemicals and pharmaceuticals. The Indian Chemical
Market Segment wise is as under: -
|
Segment |
Market
Value (billion US$) |
| Basic Chemicals |
20 |
| Specially
Chemicals |
9 |
| High End/
Knowledge Segment |
6 |
| Total |
35 |
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The
Indian Chemicals Industry comprises both small and
large-scale units. The fiscal concessions granted to
small sector in mid-eighties led to establishment of
large number of units in the Small Scale Industries (SSI)
sector. Currently, the Indian Chemical industry is in
the midst of a major restructuring and consolidation
phase. With the shift in emphasis on product innovation,
branch building and environmental friendliness, this
industry is increasingly moving towards greater customer
orientation. Even though
India
enjoys an abundant supply of basic raw materials, it
will have to build upon technical services and marketing
capabilities to face global competition and increase its
share of exports. India is one of the most dynamic
generic pesticide manufacturers in the world with more
than 60 technical grade pesticides being manufactured
indigenously by 125 producers consisting of large and
medium scale enterprises (including about 10
multinational companies) and more than 500 pesticide
formulators spread over the country.
India
is the 4th largest producer of agrochemicals after
USA
,
Japan
and
China
.
The agrochemicals market in
India
is Rs.4500 crores.
The
Dyestuff sector is one of the important segments of the
chemicals industry in
India
, having forward and backward linkages with a variety of
sectors like textiles, leather, paper, plastics,
printing inks and foodstuffs. The textile industry
accounts for the largest consumption of dyestuffs. From
being importers and distributors in the 1950’s, it has
now emerged as a very strong industry and a major
foreign exchange earner.
India
has emerged as a global supplier of dyestuffs and dye
intermediates, particularly for reactives, acid, vat and
direct dyes.
India
accounts for 7% of the world production.
In
Chemical Sector, 100% FDI is permissible. Manufacture of
most chemical products inter-alia covering organic /
inorganic, dyestuffs & Pesticides is delicensed. The
entrepreneurs need to submit only IEM with the
Department of Industrial Policy & Promotion provided
no locational angle is applicable. Only the following
items are covered in the compulsory licensing list
because of their hazardous nature.
•
Hydrocyanic acid & its derivatives
• Phosgene & its derivatives
• Isocynates & di-isocynates of hydrocarbons
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PetrochemicalS
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Petrochemicals
are derived from various chemical compounds, mainly from
hydrocarbons. These hydrocarbons are derived from crude
oil and natural gas. Among the various fractions produced
by distillation of crude oil, petroleum gases, naphtha,
kerosene and gas oil are the main feed-stocks for the
petrochemical industry. Ethane and natural gas liquids
obtained from natural gas are the other important
feedstocks used in the petrochemical industry. Olefins
(Ethylene, Propylene & Butadiene) and Aromatics
(Benzene, Toluene & Xylenes) are the major building
blocks from which most petrochemicals are produced.
Petrochemical
manufacturing involves manufacture of building blocks by
cracking or reforming operation; conversion of building
blocks into intermediates such as fibre intermediates (Acrylonitrile,
Caprolactum, Dimethyl Terephthalate/Purified Terephthalic
Acid, Mono Ethylene Glycol); precursors (Styrene, Ethylene
Dichloride, Vinyl Chloride Monomer etc.) and other
chemical intermediates; production of synthetic fibres,
plastics, elastomers, other chemicals and processing of
plastics to produce consumer and industrial products.
Presently
there are five naphtha and three gas cracker complexes in
operation with combined ethylene capacity of about 2.6
million tonnes per annum. In addition, there are four
aromatic complexes in operation with a combined Xylene
capacity of about 2.1 million tonnes. The production
performance of major petrochemicals during 2001-02 to
2005-06 is as follows :Presently there are five naphtha
and three gas cracker complexes in operation with combined
ethylene capacity of about 2.6 million tonnes per annum.
In addition, there are four aromatic complexes in
operation with a combined Xylene capacity of about 2.1
million tonnes.
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