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Recommendations for Chemicals and Petrochemicals industry
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17 Nov 2019
India is the sixth largest producer of chemicals globally. The sector is at present valued at $150-155 billion and is growing at 8-10% annually. It provides employment to 7.5 lakh people, and accounts for a little over 2% to India’s GDP. CII has identified certain key issues that require primary consideration to strengthen the development of this sector and exploit its abundant potential
1. Improvements in Environmental and Safety Issues
Environment Impact Assessment
(EIA) timelines, as defined under the EIA Notification, should be strictly
adhered to. All the steps of EIA clearance, such as screening, scoping and
appraisal, should be done in a single presentation. The EIA report with
standard TOR and potential additional TOR should be allowed to be submitted
along with Form 1, and appraised directly. The entire process should not extend
beyond 3 months (90 days).
CII requests consent for validity
period differentiation based on risk assessment, and fast-track approval of
‘Responsible Care’ certified units.
The absence of separate norms for
deep-sea discharge defeats the very purpose of deep-sea discharge and
discourages industries from developing any infrastructure in this regard. The
chemicals industry’s waste water quality standards require immediate review for
discharge into the deep sea, in consultation with industry.
Trade Policy Initiatives
Europe, USA and Africa are major
markets and India should engage with these regions for expediting free trade
agreements (FTAs) with the EU and Africa.
Trade agreements for chemicals
should be negotiated in line with the size of domestic production and planned
investments for specific segments.
China is a major import source. It
also levies high anti-dumping duty on Pyridine exported from India. Industry
urges the Government to remove this levy on exports from India to China.
Integrated Chemicals and Petrochemicals Policy
The current draft Chemicals Policy covers only
the chemicals sector. The petrochemicals sector is governed by a separate
policy of 2007. An integrated policy should be established to create an
enabling environment and infrastructure; develop a framework for promoting
safety, security and R&D; and encourage initiatives to help both sectors
become more competitive.
Standards for Ecological Conservation
It is important to establish
mandatory standards for both producers and sellers across the value chain to be
at par with global quality products. The Green Project Rating should be
introduced with the focus on emissions, waste recovery, and resource
With 40% of China’s agro-chemical
units closing down due to pollution issues, Indian producers, who are more
environment-compliant, have huge export opportunities to explore.
Rebuilding the Infrastructural Landscape
In India, ISO tanks can be used to
transport regular chemicals but not Class A petroleum products. Class A
petroleum products are required to be transported only by road tankers approved
by the Petroleum and Explosives Safety Organization (PESO). Industry is keen to
switch to transportation by rail to reduce the movement of hazardous chemicals
by road, and ensure safety for the villages/cities through which these roads
pass. Thus, ISO tanks are required to transport Class A petroleum products.
PESO has applied to the Ministry of Petroleum and Natural Gas for approval to
start issuing permissions for use of ISO tanks for Class A petroleum products.
Industry seeks the creation of world-class
infrastructure at the ports for efficient bulk liquid coastal movement, and
public warehousing facilities for all types of packed cargo, including
dangerous goods. This will enable the industry to source feedstock