Chemical News - February 2015 by Indian Chemical Council

OFFICIAL JOURNAL OF THE INDIAN CHEMICAL COUNCIL

CHEMICAL NEWS VOL. XI z FEBRUARY 2015 z NO. 8

PAGES 86

ANNUAL SUBSCRIPTION RS.1,500/- z PRICE PER COPY RS.150/-

Make India in

2 z CHEMICAL NEWS FEBRUARY 2015

HON. EDITOR DR. PRAKASH TRIVEDI ADVISORY BOARD: MR. YOGESH KOTHARI MR. RAKESH BHARTIA DR. S. SIVARAM MR. RAJEEV PANDIA MR. SAPAN RAY EDITORIAL BOARD: MR. D. P. MISRA MR. RAVI RAGHAVAN PROF. A. B. PANDIT MS. MALINI HARIHARAN MR. H. S. KARANGLE EDITORIAL, SUBSCRIPTION & ADVERTISING OFFICE: C/O INDIAN CHEMICAL COUNCIL SIR VITHALDAS CHAMBERS 16 MUMBAI SAMACHAR MARG MUMBAI – 400 001 TEL: 022- 22047649/8043 FAX: 022-22048057 E-MAIL : cin@iccmail.in NORTHERN REGIONAL OFFICE: IDA HOUSE, 1ST FLOOR, SEC - IV R. K. PURAM, NEW DELHI - 110 022 TEL: 011-26176689/26192910 EMAIL: iccnro@iccmail.in EASTERN REGIONAL OFFICE: SHANTINIKETAN, 8 CAMAC STREET KOLKATA - 700 017 TEL: 033-22829395 EMAIL: iccero@iccmail.in SOUTHERN REGIONAL OFFICE: KURIAN COMPLEX, III FLOOR 140-A NELSON MANICKAM ROAD CHENNAI - 600 029 TEL: 044-23746326 EMAIL: iccsro@iccmail.in GUJARAT CHAPTER: 30, NUTAN BHARAT SOCIETY 103, LA – CITADEL COMPLEX, ALKAPURI VADODARA - 390 007 GUJARAT TELEFAX: 0265-2342969 EMAIL: iccgujarat@iccmail.in ANNUAL SUBSCRIPTION INLAND – RS. 1,500 FOREIGN – U.S.$ 200 (AIR MAIL) SINGLE COPY – RS. 150

W H AT ’ S I N S I D E 5 EDITORIAL 6 FROM THE DIRECTOR GENERAL 10 GUEST EDITORIAL – FEAR, NOT FACTS, DRIVES BAN ON PET BOTTLES FOR PHARMA PACKAGING - Ravi Raghavan 13 THE 8TH ANNUAL INDIA CHEMICAL INDUSTRY OUTLOOK CONFERENCE 18 ICC ACTIVITIES 26 DR. STAN HIGGINS’ COLUMN: CONFERENCES PROVIDE VALUABLE BUSINESS INTELLIGENCE: ARE YOU ATTENDING THE 8TH ANNUAL INDIA CHEMICAL INDUSTRY OUTLOOK CONFERENCE SLATED FOR 3 & 4 MARCH 2015 IN MUMBAI? 28 UNITED NATIONALS SECURITY COUNCIL RESOLUTION 1540 – NONPROLIFERATION RISKS AND COMPLIANCE MANAGEMENT - Prashant Yajnik 34 MUSINGS OF A CHEMICAL ENGINEER - Rajan Shah 36 FOR THE RECORD: IN THE WORD “SINE”, WE SEE THE INTERCONNECTION OF THREE MATHEMATICAL TRADITIONS – INDIAN, ARABIC AND EUROPEAN - Amartya Sen 39 PRESSURE RELIEF SYSTEM REACTION FORCES – THE IMPORTANCE OF EVALUATING EXISTING INSTALLATIONS - Jason F. White P.E.; Bill Frenk & Dustin Smith P.E. 48 BOOK SHELF: CRUDE OIL PRICE FALL – WILL THE EUPHORIA FOR INDIA CONTINUE? 50 PROJECTS INVESTMENTS IN CHEMICAL SECTOR 54 ECONOMIC REVIEW 58 NEWS FROM MEMBERS 64 NEWS NATIONAL 76 NEWS INTERNATIONAL 84 QUOTABLE & LAUGHABLE

ICC’s Goal is to have Member-Companies joining the Responsible Care Programme.

The views expressed in the journal are not necessarily those of the Council. VOL. XI FEBRUARY 2015 NO. 8 CHEMICAL NEWS FEBRUARY 2015 z 3

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EDITORIAL

MAKE IN INDIA, MAKE FOR INDIA, MAKE FOR WORLD

DR. PRAKASH TRIVEDI Honorary Editor

n decades after Independence, with scarce foreign exchange, import substitution had become our mantra. Our industrialisation and indigenization had already started in 19th century. With call for swadeshi and for discarding of foreign cloths by Gandhiji, the idea of using this - made in India - khadi took significant importance. This lasted till reforms began in 1990s and winds of globalisation turned into a sort of hurricane. Our old history tells us that India, along with China, were economic super powers once. That meant we were not only exporting but also importing many things. In short, we were globalised to a good extent then. But when exploitation of India began on a vast scale by the British, it became impoverished and its exports dwindled at least in value. Thus, mantra of khadi and import substitution took deep roots in our economic and political life. The Gramodyog - village level industries - were important in not only creating livelihood for people, who had limited skills but also in reducing exploitation by exporting cheaper raw materials like raw cotton and after converting into cloths importing it back at high cost in India. The

non-acceptance of foreign cloths was an act of putting economic sanction against UK then. But as world and India progressed economically, that is materially, another paradigm got introduced. It was understood that it is better to produced where the costs are lowest rather than where markets are biggest! Certainly this has its well-known logic. In a Globalized world, every country should follow on its strength. The country with basic material resources should trade that, one with technology should convert that to value added products and finally these may be exported all over world wherever markets existed or could be developed. Today, even this looks simplistic. Take the genesis of I-phones. Designed initially in USA, assembled in China with materials, chips, glass, etc from many countries including India, Japan, S. Korea, Malaysia and software developed and apps created in many countries and of course sold world over. Millions of mobile phones assembled and sold in India have similar story to tell. How do we christian them as Made in USA or Made in India or Made in the World¹? So following mantra of only Make in India will come with riders. Yet of course, it is very important to provide jobs for the growing numbers of youth as well as experienced but retiring people. The recent challenge to raise our economy to nearly $20 trillion is a challenge akin to putting a “Man on the Moon and bring him back in a decade” thrown in the 1960s. Make in India will be possible only if we all

dedicate ourselves to follow such a “Man on the Moon” or Manhattan type mission FOR US to reach that distant goal of $ 20 trillion! It will be possible only with foreign technology, capital, management along with India¹s and of course with worldwide markets. We have not done very awesome technology development or capital generation in last 67 years. We of course do have the land, can train manpower for skills and management, have blissfully large developing internal markets and a diaspora that remains keenly active to serve the mother country. There is finally a new government which seems to have commitment to remove the existing hiccups. All these and more must fall in sync to enable us to reach that distant goal of $ 20 trillion! So we should Make in India for India and also for the world! May be another slogans added recently need to be emphasised too: Create in India, Innovate in India, Add value in India. 500 million young in India and 3billion poor people world over are awaiting our invitation to take part in this mission. Yet of course, it is important to keep in mind that any success for Make in India will have reverberations in other countries. That means any success for Make in India should not become a zero sum game but must focus on win-win type situation for all.

“With every thread I take, I spin the destiny of India”. - M. K. Gandhi CHEMICAL NEWS FEBRUARY 2015 z 5

FROM THE DIRECTOR GENERAL

H. S. Karangle Director General - ICC

“M

ake in India” is a campaign launched by Hon’ble Prime Minister of India, Shri Narendra Modi to establish manufacturing industries in India thereby increasing employment opportunities. While launching Hon’ble Prime Minister said that “I would like to call people of the world to ‘Come, Make in India’. I want to tell the global companies that we have skill, talent and discipline. From electronics to electrical, from chemicals to pharmaceuticals, come, Make in India. We have the capabilities. Come here and manufacture in India. Sell the products anywhere in the world but manufacture here..... we have the power, come I am inviting you”. An appeal was made to international as well as Indian corporates to invest in India to boost local manufacturing across all sectors of economy. The chemical sector which is prominent sector in Indian economy will also take part in

the “Make in India” campaign. Hon’ble Prime Minister has desired to have sector-wise presentation to discuss impediments in making and realizing “Make in India” in chemical industry. Secretary – C&PC had meeting with all industry associations including ICC on 23 December 2014 to prepare presentation on the subject. A workshop was organized by Ministry of Commerce & Industry on “Make in India Initiatives” on 29 December 2014 at New Delhi to sort out issues and give boost to “Make in India” in chemical industry. Some of the points emerged during the workshop were: z Focus on alternate feedstock like Oleo Chemicals, Ethanol, etc. z Setting up of ‘Reverse SEZs’ z Setting up of National Chemicals Centre z Infrastructure – PCPIRs, R&D and Skill Development z Comprehensive program for treatment of chemicals under ‘Swachh Bharat Abhiyan’ ICC is confident that with the support of Government, Indian chemical industry is destined to grow. DCPC has prepared a list of chemicals whose imports exceed Rs.100 Crores and whether this can be manufactured in India. With inputs from members, ICC had submitted list of chemicals which can be import substituted. In this context, ICC has chosen

With honest and straightforward business principles, close and careful attention to details and the ability to take advantage of favourable opportunities and circumstances, there is a scope for success. 6 z CHEMICAL NEWS FEBRUARY 2015

If there is one place on the face of earth where all dreams of living men have found a home from the very earliest days when man began the dream of existence.....it is India ! theme of its 8th Annual India Chemical Industry Outlook Conference which is a signature event of ICC : “Mission – ‘Make in India’ : International Partnership to Create Value” to be held on 3 – 4 March 2015 at Taj Lands End, Mumbai. The entire program of the conference is based on this theme. Eminent personalities from national and international fraternity having domain knowledge of the subject have agreed to speak during the conference. Their presentations will explore various possibilities as well as limitations to make this successful. They will also delve upon the outcome of such initiative. We are confident that deliberations during the conference will be of immense use to the delegates. The details of the conference are available in this issue. I sincerely request all the members to take advantage of this and make this conference a grand success. Following are other significant initiatives undertaken by the Council in the last month:

TRAINING PROGRAM ON RESPONSIBLE CARE Orientation Program on Responsible Care was held on 9 January 2015 at Solvay Specialities India Pvt Ltd,

Panoli. Mr. T. Y. Hote, Director – RC, ICC has conducted the program. Such training can be available to the interested members which can be organized in their premises. For further details please contact ICC Secretariat.

SEMINAR ON “CURRENCY & INTEREST RATE HEDGING” ICC under the auspices of Trade & Business Development Expert Committee and in cooperation with The National Stock Exchange of India Ltd (NSE), organized 2 hours Seminar on “CURRENCY & INTEREST RATE HEDGING” on 9 January 2015 at the premises of The National Stock Exchange of India Ltd (NSE), Bandra-Kurla Complex, Mumbai. Presentation was basically for Exchange Traded Currency Futures & Options and Interest Rate Risks. The subject was new but the response from the industry was very good.

TWO-DAY REFRESHER COURSE ON “CHEMICAL ENGINEERING FOR PLANT PERSONNEL” ICC under the auspices of Technology & Energy Expert Committee organized Two-day Refresher Course on “Chemical Engineering for Plant Personnel” on 9 – 10 January 2015 at West End Hotel, Mumbai. Mr. O. P. Goyal, Member, Technology & Energy Expert Committee, ICC was the Coordinator for the program. Dr. Ashwin W. Patwardhan and Dr. Parag R. Gogate of Institute of Chemical Technology, Mumbai delivered lectures on various subjects such as Material & Energy Balance, Fluid Flow Concepts & Fluid Transfer Equipment, Heat Transfer, Reaction Engineering, Distillation & Extraction, Crystallization & Filtration, and Process Utilities & Process Piping. The proceedings provided participants opportunity to have interactive, integrated and condensed refresher training. More than 52 delegates attended the Refresher Course. Feedback received from the delegates is overwhelming.

Some of the comments received were : “Very nice and useful and will help in solving many problems in the plant”, “Quiz was nice, helped in recollecting concepts covered in various sessions”, “Very useful and good to refresh from learned speakers”, etc.

PRESENTATION BY DR. KRUEGER OF CLARIANT During the Executive Committee meeting held on 14 November 2015 at West End Hotel, Mumbai Dr. Krueger of CLARIANT made presentation on “Sustainability@ Clariant Value Creation Through Sustainability”. Dr. Krueger answered various quarries raised by the members. He emphasized that implementation of sustainability principles pays back in long run.

AWARENESS SEMINAR ON “SAFETY AND SECURITY RATING SYSTEM WITH FOCUS ON BEHAVIOUR BASED SAFETY” ICC under the auspices of Sustainability, Responsible Care and Safety, Health & Environment Expert Committee and in cooperation with Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Government of India, organized One-day Awareness Seminar on “SAFETY AND SECURITY RATING SYSTEM WITH FOCUS ON BEHAVIOUR BASED SAFETY” on 23 January 2015 at Hotel Vivanta by Taj, Bengaluru, Karnataka. The main objective of the Seminar was to create awareness to the chemical industry regarding Safety, Health and Environment related issues with focus on Behaviour Based Safety. The Seminar also focussed on important areas such as Chemical Rating System, Behaviour Based Safety, Process Safety in a Petrochemical Industry, Responsible Care for Chemical Industry, Scientific Conduct of Mockdrill, Environment Management for Small and Medium Scale Industry, etc.

HALF-DAY SEMINAR ON “CHEMICAL BURNS MANAGEMENT – STOPPING INCIDENTS FROM BECOMING ACCIDENTS ICC in cooperation with HSE Solutions Pvt. Ltd. (a member-company of ICC) organized Half-day Seminar on “CHEMICAL BURNS MANAGEMENT – STOPPING INCIDENTS FROM BECOMING ACCIDENTS” on 28 January 2015 at Nagarjuna Fertilizers and Chemicals Ltd,, Nagarjuna Road, Kakinada, Andhra Pradesh. The main objective of the Seminar was to throw light on chemical industrial accidents and their consequences, on traditional first Aid methods and the evolution of new innovative products and empowering the employees through proactive safety measures. More than 40 delegates attended the Seminar.

RESPONSIBLE CARE GLOBAL CHARTER Earlier this year, the International Council of Chemical Associations’ (ICCA) Board of Directors approved a revised version of the Responsible Care Global Charter. The progress of Responsible Care was also reviewed during the ICCA Board of Director’s Meeting held on 16 & 17 October 2014 at Paris. During the meeting Dr. Hans-Jurgen Korte, Chairman, Responsible Care® Leadership Group briefed the members about the Responsible Care Global Charter roll-out and informed that main objective is to obtain signatories from 90% of eligible companies by ICCM4 (Geneva, October 2015). The revised Responsible Care Global Charter focuses on the roles, responsibilities and accountabilities of global chemical companies in support of Responsible Care. The Responsible Care Leadership Group will give a progress report on Global Charter signatories at the ICCA Board meetings in early 2015. To facilitate this process, ICC disseminated revised Responsible Care Global Charter and other supporting documents to its CHEMICAL NEWS FEBRUARY 2015 z 7

Responsible Care Logo holding members. In response, ICC has received Responsible Care Global Charter duly signed by CEOs from following companies: 1 Anshul Specialty Molecules Ltd. 2 BASF India Ltd. 3 Colourtex Industries Pvt. Ltd. 4 Dow AgroSciences India Pvt. Ltd. 5 E. I. DuPont India Pvt. Ltd. 6 Gujarat State Fertilizers & Chemicals Ltd. 7 Heubach Colour Pvt. Ltd. 8 Hikal Ltd. 9 Tata Chemicals Ltd. 10 Thirumalai Chemicals Ltd. 11 UPL Ltd.

RC Logo for a period of three years and 9 member-companies have been granted permission to use RC Logo on fast track basis for a period of one year.

RESPONSIBLE CARE

FORTHCOMING MEETINGS / CONFERENCES / SEMINARS: ICC will be organizing following Meetings / Conferences / Seminars: One-day Workshop on “SENSITIZING THE INDUSTRY ABOUT CHEMICAL CONVENTIONS viz STOCKHOLM CONVENTION, ROTTERDAM CONVENTION AND MINAMATA CONVENTION ON MERCURY” on 5 February 2015 at Ahmedabad One-day Workshop for SME’s for Creating Awareness on “HEALTH, SAFETY, SECURITY & ENVIRONMENT ISSUES WITH FOCUS ON PROCESS SAFETY” on 10

As on today, 120 member-companies of ICC have signed Responsible Care Initiative. 29 member-companies have been granted permission to use

February 2015 at Ankleshwar Two-day Refresher Course on “PRESSURE DROP CALCULATIONS” on 13 – 14 February 2015 at Mumbai ICC’s 8TH ANNUAL INDIA CHEMICAL INDUSTRY OUTLOOK CONFERENCE on 3 - 4 March 2015 at Hotel Taj Lands End, Mumbai ICC in co-operation with American Chemistry Council organizing One-day Program on RESPONSIBLE CARE AND SECURITY CODE in March 2015 at Mumbai One-day Program on “Vacuum System Engineering” in March 2015 at Ankleshwar ICC to support CHEMSPEC INDIA – an International Exhibition for Process Plant Equipment and Technology Industries organized by Chemical Weekly to be held on 16 – 17 April 2015 at Mumbai z

3 4 5 6 7

INDIAN CHEMICAL COUNCIL PATRON MEMBERS

LIFE MEMBERS

Aditya Birla Chemicals (India) Ltd.

Bayer MaterialScience Pvt. Ltd.

Aegis Logistics Limited

Bayer Vapi Pvt. Ltd.

Deepak Fertilizers & Petrochem Corpn. Ltd.

DCM Shriram Ltd.

Deepak Nitrite Limited

Gharda Chemicals Ltd.

Essar Oil Limited

Godrej Industries Ltd.

Evonik India Pvt. Ltd.

Gujarat Alkalies & Chemicals Ltd.

Haldia Petrochemicals Ltd.

Hindustan Unilever Ltd.

Hikal Limited

Lubrizol India Pvt. Ltd.

Rashtriya Chemicals & Fertilizers Ltd.

National Aluminium Co. Ltd.

Reliance Industries Ltd.

SABIC Innovative Plastics India P. Ltd.

TATA Chemicals Ltd.

Shasun Chemicals & Drugs Ltd.

UPL Limited

Thirumalai Chemicals Ltd.

8 z CHEMICAL NEWS FEBRUARY 2015

CHEMICAL NEWS FEBRUARY 2015 z 9

GUEST EDITORIAL

FEAR, NOT FACTS, DRIVES BAN ON PET BOTTLES FOR PHARMA PACKAGING

MR. RAVI RAGHAVAN Editor – Chemical Weekly & Member, Editorial Board CHEMICAL NEWS

n September 2014, the Ministry of Health and Family Welfare published a notification that sought to prohibit, in due course of time, the use of containers made of polyethylene terephthalate (PET) – a widely used thermoplastic – for the primary packaging of liquid oral formulations intended for certain sections of the population (children, elderly, pregnant women and women in the reproductive age group). The notification was issued following ‘findings’ that medicines packed in PET bottles were laced with contaminants that included

phthalates and heavy metals. The pharmaceutical industry and PET resin/bottle suppliers are predictably upset at the notification, and have every reason to be. The ban is bad in science, and based on tests carried out under conditions that raise grave doubts on the relevance, repeatability and authenticity of the results. The problem has been compounded by irresponsible comments made by all kinds of experts, including doctors, with little or no knowledge of either polymer science or toxicology. The arguments made to further the cause for the ban, fly in the face of a significant body of knowledge that PET – used in millions of tonnes, including for packaging of drinking water – is safe for use. If the ban is implemented, India may well be the first country to do so.

LITTLE SCIENTIFIC BACKING

The notification has its origins in a petition filed by an NGO, Him Jagriti with the Directorate General of Health Safety (DGHS) that claimed harmful effects on human health

and the environment from use of PET bottles, with little or no backing by way of peer-reviewed scientific data. The Drugs Technical Advisory Board, charged by the DGHS with going into the matter, has confessed that the evidence for a ban is not sufficient, but has chosen to play it safe and taken refuge under the so-called ‘precautionary principle’ and recommended a ban for what it sees are a vulnerable section of consumers. This is a dangerous precedent that can open the doors for all kinds of restrictions, based essentially on fear of the unknown.

NO BPA ANYWHERE!

The first fundamentally flawed allegation is that PET containers leach harmful chemicals such as bisphenol-A (BPA) and phthalates into the medicines they hold. BPA does not find a place in PET manufacture at any part of the manufacturing chain. It is an important raw material to make polycarbonate resin – but that is a wholly different polymer, and of no relevance to the issue at hand.

BPA does not find a place in PET manufacture at any part of the manufacturing chain. It is an important raw material to make polycarbonate resin – but that is a wholly different polymer, and of no relevance to the issue at hand. It is impossible for BPA to show up as a leach into liquids stored in PET bottles – unless, of course, the process of testing and/or sampling is seriously flawed. 10 z CHEMICAL NEWS FEBRUARY 2015

In the end the proposed ban reflects a chemophobia in modern society – a vulnerability exploited at times to serve vested interests. It is impossible for BPA to show up as a leach into liquids stored in PET bottles – unless, of course, the process of testing and/or sampling is seriously flawed.

WHERE COULD PHTHALATES COME FROM?

The manufacture of PET resin (and bottles therefrom) – as any chemist knows – involves a chemical reaction between two or three monomers: purified terephthalic acid (PTA), small quantities of isophthalic acid (IPA), and a glycol, usually monoethylene glycol (MEG). The similar sounding phthalic acid – a distinct chemical entity, with its own set of chemical and physical properties – is neither deliberately used nor tags along as a contaminant. In polymer processing, phthalates, based on ortho-phthalic anhydride, serve as plasticisers and are almost exclusively used for compounding polyvinyl chloride (PVC), not PET. Safety issues have been reported for some phthalates – especially long side-chain ones such as di-2ethyhexyl phthalate, more commonly known as di-octyl phthalate (DOP). While the jury is still out on this, its use in food contact applications or for manufacture of toys is restricted in many countries. There are, as yet, no restrictions in India on DOP use, and any shifts away from its use is largely voluntary, and aided by the fact that safer alternatives are available, even if they are more expensive. While it is impossible for DOP to leach out of PET bottles for the simple reason that it is not an ingredient in the bottle, there is a possibility of small quantities leaching from PVC caps used to seal them or PVC linings in the inside of the cap. But this could apply just as well to glass bottles. Polyethylene caps (which don’t need plasticisers)

are an alternative and used for packaging water. Even if PVC cap liners are to be used, alternative plasticisers (such as short side-chain phthalates, adipates, citrates etc.) with excellent safety profiles are commercially available. Banning PET bottles is akin to throwing out the baby with the bathwater!

SHOW ME THE ANTIMONY!

Another bone of contention relates to findings of small amounts of antimony in the leachate. Most likely this has come from the tiny amounts of antimony trioxide used as a catalyst in the polymerisation process leading to PET resin. Given the stiff barrier PET offers to transportation of small molecules, the levels of antimony leaching through it are expected to be very, very low, and not of toxicological concern. Numerous studies carried out elsewhere in the world and published in peer-reviewed publications, support this line of reasoning and reveal levels well within limits prescribed by the WHO (20-ppb) or health authorities in the US, Germany and Canada (5-6 ppb). Even the literature cited by the petitioner cites a study with PET bottled water that found 1.99-ppb of antimony – well below limits. In fact, other studies indicate higher levels of heavy metals leaching out of glass containers – the alternate packaging material that the ban may force drug companies to opt for!

PET VS GLASS

PET scores better than glass on several environmental and safety parameters. It is lighter and shatterproof, which brings savings and efficiencies in transportation. From energy and carbon footprint standpoints, glass is twice as intensive as PET. Both materials are eminently recyclable, and PET

recycling rates – ranging from about 30% in the US to about 60% in Brazil – are amongst the highest for all polymers, and rising. Recycled PET is a significant business in India with a handful of plants even importing PET wastes to convert to fibre for textile applications.

FACTS NOT FEARS – THE BASIS FOR SOUND CHEMICALS MANAGEMENT

In the end the proposed ban reflects a chemophobia in modern society – a vulnerability exploited at times to serve vested interests. There is no denying that several chemicals, both natural or man-made, in commerce are harmful to human health and/or to the environment, but restrictions on their manufacture and use must follow scientific rationale and be based on facts not fears. Sound chemical management is engaging regulators across the world, but sadly India is yet to make a beginning. In the absence of a wellbalanced regulatory regime, based on a proper assessment of risks and hazards, kneejerk reactions such as this ban on PET containers will become more and more common. The scientific community and the captains of the chemical industry must speak up for what they believe is right. At stake is the reputation of the industry as a reliable and responsible provider of much-needed solutions to aid modern living. Several chemicals are present widely in the environment and ultimately find their way into humans via food, air and water. Mere detection in a substrate means little, and does not justify a ban. Modern analytical techniques have given us an unsurpassed ability to measure at levels down to a few parts per trillion. Unfortunately, our ability to understand what these numbers mean has not kept pace! z CHEMICAL NEWS FEBRUARY 2015 z 11

32 z CHEMICAL NEWS JANUARY 2015

THE EIGHTH ANNUAL

INDIA CHEMICAL INDUSTRY OUTLOOK CONFERENCE MISSION - “MAKE IN INDIA”: INTERNATIONAL PARTNERSHIP TO CREATE VALUE 3 - 4 MARCH 2015 | TAJ LANDS END | BANDRA, MUMBAI | INDIA

Chief Guest

About the Event The Indian chemical industry is valued at approximately USD 140 billion. By supplying sectors that are critical to the Indian economy's growth and gradually moving towards higher selfsufficiency, it is generating significant growth and investment opportunities. Indian specialty chemicals are one of the key areas of growth, with a projected growth of 13-16 per cent per year through 2020. Driven by specialty chemicals, intermediate chemicals in turn present major opportunities. The industry as a whole can make this growth more profitable by achieving functional excellence in areas like manufacturing, procurement and marketing & sales, leveraging on domestic and international best practice. We are happy to announce the 8 th edition of the Annual India Chemical Industry Outlook Conference. It is the leading event for the chemicals industry in India, both in terms of Indian and international participants. The event, which was attended by more than 250 senior participants in 2014, brings growth and investment opportunities to the forefront. It also establishes a platform for leaders of private sector companies, public sector units, government bodies, experts and investors to interact on these opportunities.

Who should attend Highly recommended for the CXOs and thought leaders from industry to attend the event • Across the chemicals and materials industry value chain-President/ Vice Presidents, Directors, CXOs, General Managers, Sr. Executives • Policy makers and regulatory authorities • Financial institutions and Investors • Consultants / Thought Leaders

MR. ANANTH KUMAR Hon’ble Minister for Chemicals and Fertilizers, Govt. of India

Key-note Speaker MR. SURJIT KUMAR CHAUDHARY Secretary (C&PC), Govt. of India

Address by DR. TOBIAS OLHER Member of the Executive Board, Wacker Chemie AG.

Address by MR. CALVIN M. DOOLEY President & CEO, American Chemistry Council

Knowledge Partner: McKinsey & Company

CHEMICAL NEWS FEBRUARY 2015 z 13

DAY

08:30-09:30

Registration / Welcome

TUESDAY | 3 MARCH 2015

SESSION 1 Inaugural session 09:30-09:40

Welcome Address and Vision for Chemical Industry

Mr. Rakesh Bhartia, President, ICC

09:40-10:00

Address By Chief Guest

Mr. Ananth Kumar, Hon’ble Minister for Chemicals & Fertilizers, Govt. of India

10:00-10:15

Address by Keynote Speaker

Mr. Surjit Kumar Chaudhary Secretary (C&PC), Govt. of India

10:15-10:30

Address by

Dr. Tobias Ohler, Member of the Executive Board, Wacker Chemie AG

10:30-10:50

Address by

Mr. Calvin M. Dooley, President & CEO American Chemistry Council

10:50-10:55

Vote of Thanks

Mr. Ravi Kapoor, Vice President, ICC

10.55-11:10

Coffee/Tea Break

SESSION 2

SESSION CHAIRMAN: Mr. Rakesh Bhartia, President, ICC

Value Creation in Chemical Industry 11:10-11:30

Value Creation in Chemical Industry – A Deeper Look at Industry Mechanics, Trends and Paradigms

Mr. Saikiran Krishnamurthy Director, McKinsey & Company

11.30 -11.50

From Mission to Reality – How Make in India Can Happen

Dr. Joerg Strassburger CEO, Go East ! Advisors

11.50-12.10 -

Update on Make in India Implications for the Chemical Sector

Dr. Gopal Nori Sarma Partner, Bain & Company India Pvt. Ltd.

SESSION 3

SESSION CHAIRMAN: Mr. Saikiran Krishnamurthy, Director, McKinsey & Company

Game Changers in Driving Forward the Chemical Industry 12.10-12:30 Underground Coal Gasification – Feedstock for Process Chemical Industry

Harry Bradbury Chairman & CEO, Five Quarter Energy Ltd.

12:30-12:50

Industrial Carbon Capture & Storage for Tees Valley

Mr. John Brady, Sr. Project Manager, NEPIC

12:50-13:10

Feedstock for Petrochemical & Chemical Industry

Mr. Kishor Jhalaria, President-Business Planning & Project Development, Reliance Industries Ltd

13:10-13:30

Unlocking Syngas Feedstock

Song Lin Jun, Director-Energy & Chemical Business, Yingde Investment (Shanghai) Ltd.

13:30-14:30

Lunch Break

SESSION 4

SESSION CHAIRMAN: Mr. Ashwin C. Shroff, CMD, Excel Industries Ltd.

Sector Opportunities 14:30-14:50

Growth Outlook for Intermediates – Key Building Blocks between Bulk and Specialty Chemicals

Mr. Avinash Goyal McKinsey & Company

14:50-15:10

Smart Cities Development in India – Opportunity for Chemical Industry

Mr. Sudhir Shenoy CEO, Dow India

15:10–15:30

Agrochemicals – Helping Solve India's Food Challenge

Mr. S. Ganesan, Vice President – Corpt., Excel Crop Care Ltd.

15:30–15:50

Construction Chemicals / Cosmetic Chemicals

Mr. Himanshu Agarwal, Senior Manager – Sustainable Building Solutions, BASF India Ltd

15:50–16:10

Pharma Sector – Growth and Opportunities in Intermediates for Indian Companies

Dr. KVS Ram Rao Business Head (API), Dr. Reddy's Laboratories Ltd.

16:10–16:30

Coffee/Tea Break

SESSION 5

SESSION CHAIRMAN: Mr. Yogesh M. Kothari, Immediate Past President, ICC

Responsible Care 16:30-16:50

Global Practices in Responsible Care

Dr. Hans-Jurgen Korte, Chairman-RCLG, ACC

16:50-17:10

Responsible Care and Security Code – Challenges and Impediments in Implementation

Ms Debra Phillips, Vice President – RC & Value Chain Outreach, ACC

17:10-17:30

Growing Success in Implementing Responsible Care in India

Mr. Ravi Kapoor, Vice President, ICC

18:00-19:30

CEO ROUND TABLE (by invitation only)

Topic of Discussion - Enablers to Capture Growth

14 z CHEMICAL NEWS FEBRUARY 2015

DAY

09:00-09:20

Opening Remarks : Mr. Rakesh Bhartia, President, ICC

SESSION 1

WEDNESDAY | 4 MARCH 2015

SESSION CHAIRMAN : MR. RAVI KAPOOR, VICE PRESIDENT, ICC

Industry Readiness for Growth – Earning the Right to Grow 09:20-09:40

Functional Excellence – Required Enabler for Driving Profitable Growth

Mr. Ashok Kumar, McKinsey & Company

09:40-10:00

Consumer Friendly Chemistry through Novel Solutions

Dr. Arup Basu, President – New Businesses & Innovation Centre, Tata Chemicals Ltd.

10:00-10:20

Intellectual Property Issues in a Global Industry

Mr. Jonathan Atkinson, Partner, HGF Ltd. (UK)

10:20-10:40

Panel Discussion

10:40-11:00

Coffee/Tea Break

SESSION 2

SESSION CHAIRMAN: Dr. Stan Higgins, CEO, NEPIC

Driving Value from Waste 11:00-11:20

Energy from Waste Water Treatment

Dr. Maxine Mayhew, Group Commercial Director, Northumbrian Water Group.

11:20-12:00

De-polymerization of Waste Plastics

Dr. Sadanand Dixit, Managing Director, Plasma Energy Ltd.

12:00-12:20

Converting Waste Heat to Electricity

Mr. Roger Mallinson, Director, DRD Power Ltd.

12:20-12:40

Unconventional Energy and Coal to Chemicals

Mr. Rajesh Amba, Group Manager & Country Head - India, Jacobs Consultancy Ltd.

12:40-13:00

Conversion Technologies for Carbon Dioxide

Prof. Ludo Diels, Professor VITO, Antwerp University, Belgium

13:15-14:15

Lunch Break

SESSION 3

SESSION CHAIRMAN: MR. D. C. MEHTA , MANAGING DIRECTOR, DEEPAK NITRITE LTD.

Building World Class Chemical Hubs in India 14:15-14:35

Integrated Chemical Investment Zone – Cluster Advantage Status and Plan

Mr. Makarand Dixit Head Marketing, ONGC Petro additions Ltd.

14:35-14:55

Indian Refinery Footprint – Options for Chemical Industry

Mr. S. C. Mehta Exe. Director, Hindustan Petroleum Corporation Ltd.

14:55-15:15

Feedstock and Building blocks for Creating a Chemical Hub

Mr. Prasad Panicker Exe. Director, Bharat Petroleum Corporation Ltd.

15:15-15:55

Opportunities of Chemical Industry In Eastern India

Mr. S. Mitra, Executive Director (Petrochem), Indian Oil Corporation Ltd.

16:00-16:20

Coffee/Tea Break

SESSION 4

SESSION CHAIRMAN : MR. D.P. MISRA, DIRECTOR, DEVELOPMENT CONSULTANTS PVT. LTD.

Distribution and Logistics

Mr. Fulco Van Geuns Managing Director, Vopak India Pvt. Ltd.

16:20-16:40

Port Centric Logistics as a Strategy for Growth

16:40-17:00

Why & How NicerGlobe?

Capt. Dinesh Desai Country Manager-Corpt. Security & Emergency Response, Responsible Care, BASF India Ltd.

17:00-17:20

Role of a Chemical Distributor in a Growing Market

Mr. L. Balakrishna Managing Director, Brenntag Ingredients (India) Pvt. Ltd.

17:20-17:30

Vote of thanks

Mr. H. S. Karangle, Director General, ICC

CHEMICAL NEWS FEBRUARY 2015 z 15

16 z CHEMICAL NEWS FEBRUARY 2015

REGISTRATION FORM To: The Secretary General INDIAN CHEMICAL COUNCIL Sir Vithaldas Chambers, 6th floor 16 Mumbai Samachar Marg MUMBAI – 400 001

Date: ………………………………….……….

Tel: 22047649 / 22048043 / 22846852 Fax: 22048057 Email: iccmumbai@iccmail.in / events@iccmail.in

Dear Sir, With reference to the above Conference, we are deputing following representative/s from our organization to attend the same: #No.

Name of Participant/s

Designation

Contact Details (Mobile/Email)

1 2 3 4 5 REGISTRATION CHARGES:

ICC Members:

Rs.15,000/- per delegate

(Early Bird Discount if registered before 10 Feb. 2015):

Non-Members:

Rs.20,000/- per delegate

Rs.13,000/- per delegate

Rs.17,000/- per delegate Group Discount: 3-5 Delegates: 15% Discount Group Discount: More than 5 Delegates: 20% Discount (Early Bird Discount if registered before 10 Feb. 2015):

We are enclosing herewith our Cheque No. _____________ dated __________ for Rs.___________ being the Registration Fee in respect of the above delegates. Name

Designation

Name of the Company

Address

Tel/Fax Nos. Email

: :

Kindly draw the Cheque in favour of INDIAN CHEMICAL COUNCIL

CHEMICAL NEWS FEBRUARY 2015 z 17

TWO-DAY REFRESHER COURSE ON CHEMICAL ENGINEERING FOR PLANT PERSONNEL

two-day refresher course in â&#x20AC;&#x153;Chemical Engineering for Plant Personnelâ&#x20AC;? was held at West End Hotel, Mumbai on 09th-10thJanuary, 2015 under the auspices of Technology and Energy Expert Committee of INDIAN CHEMICAL COUNCIL . The course was designed for the benefit of chemical/ process plant personnel including chemical engineers engaged in operation, operationsupport activities such as process analysis and troubleshooting. The program was also meant for those who had lost touch with chemical engineering theory but would have liked to regain such knowledge/ skill.

MR. S. R. LOHOKARE, CHAIRMAN-TECHNOLOGY & ENERGY EXPERT COMMITTEE ADDRESSING THE DELEGATES

PROGRAM The 2-day Course covered various key subjects namely Material & energy balance, Fluid flow concepts & fluid transfer equipment, Heat transfer, Reaction engineering, Separation processes such as distillation & extraction, Crystallization & filtration, and plant utilities & plant piping in an interactive manner using an integrated and condensed refresher training approach. The intensity of training was enhanced by quizzing freely during the lectures, organizing quiz test and conducting an elaborate multi-topic interactive quiz. The faculty consisted of Dr. Ashwin W. Patwardhan and Dr. Parag R. Gogate of Institute of Chemical Technology, Mumbai and Mr. O.P.Goyal, Member, Technology and Energy Expert Committee, ICC.

SPEAKERS Dr. Patwardhan is a chemical engineer with his Bachelor and PhD degrees from Institute of Chemical 18 z CHEMICAL NEWS FEBRUARY 2015

MR. O. P. GOYAL ADDRESSING THE DELEGATES

Technology, Mumbai and has been teaching there several subjects since getting his doctorate degree; and has been a guest speaker in several international forums. He has guided a number of masters and PhD. students and has published very widely in international journals. He is consultant to several industries and is recipient of several honors and awards. Dr. Parag R. Gogate is a chemical engineer with all his degrees including PhD from Institute of Chemical Technology, Mumbai and has been teaching there since getting his doctorate degree. He

has guided a number of masters and PhD. students and has widely published in international journals. Dr. Gogate is consultant to several industries, has been a guest speaker in several international forums and is a recipient of several honors and awards. Mr. O.P.Goyal, a Chemical Engineer with Bachelor Degree from IIT (Roorkee) and Masters Degree from University of Waterloo, Canada presently teaches at Institute of Chemical Technology, Mumbai. He is member of Technology and Energy Expert Committee of ICC. During last four decades, he has written

extensively on a variety of technical and management subjects for several international publications including Hydrocarbon Processing and McKettaâ&#x20AC;&#x2122;s Encyclopedia, which he also served as a member of its International Advisory Board.

OPENING During his inaugural address, Mr. S.R.Lohokare, Chairman, Technology and Energy Expert Committee welcomed the delegates and explained the scope of various lectures covered in the refresher course. He gave an apt Helicopter View of the topics of relevance, the salient captures of which are compiled below: 1 The Material and Energy Balance being a part of regular daily activity should be done daily. 2 He gave an example of hydrogen plant material & energy balance, emphasized its importance, described various operations and presented the importance of material and energy balance in understanding and optimizing plant operation. 3 Emphasized that the participants should take home the messages and the approaches that would be delivered during the course and apply them as suited to their plant situations and activities. 4 The importance of composition

analysis and measurement techniques like online analyzers, talked of the importance of statistics, particularly concerning errors in flow meters that adversely affect the material and energy balance. Then the focus was laid on to cooling water and its chemistry related to silica content, hardness, pH etc and again linked it with the importance of material & energy balance in order to keep various impurities under check so that they remain under the tolerable limits as these have implications on cooling tower blowdown and heat exchanger fouling. He subsequently dealt with the importance of energy balance in the context of highly exothermic reactions having impact on safety. He talked about boiler efficiency calculations and steam balance resulting in steam loss assessment. Regarding fluid flow handling equipment, it is important to arrive at reduction in pumping energy costs and correct pipe sizing based on capital and operating costs. Regarding heat exchangers, monitoring of heat recovery and the state of fouling and knowledge of pressure drop are

key to plant energy management. 9 Mr. Lohokare informed the delegates about the emergence of ISO standard ISO-50000 that deals with energy and was published in 2011. He emphasized the need for using various performance indicators for benchmarking of plant operations. 10 He then concluded his address by saying, what he said was only a starting point and advised the delegates to take the knowledge gathered during various technical sessions back to work and improve plant operations.

PARTICIPATION The workshop was attended by a spectrum of 52 delegates who represented 20 different chemical manufacturing companies. Some of the participants had attended this very refresher course held at Mumbai several months ago. Interactive conversations with them throughout the two-day proceedings indicated that the course was highly satisfying for being practical, informative, well designed and structured: moving topic by topic with numerous examples and case studies. Many plant problems with solutions were systematically explained. Participants could fully use this opportunity and freely discuss their plant problems. They found the handout very useful for reference in their work. They confirmed that they got very relevant exposure to several new aspects of engineering information, methods and techniques.

SUBJECT-WISE CONCLUSIONS MATERIAL & ENERGY BALANCE

DR. ASHWIN PATWARDHAN CONDUCTING THE COURSE

z 7 problems were solved and 7 case studies presented. z It forms the first step in any design. z It forms the basis of calculations/ evaluations, including material loss. CHEMICAL NEWS FEBRUARY 2015 z 19

z Is used to calculate carbon footprint for products & processes. z Is used to choose and quantify process streams and utilities. z Helps improve profitability and is indispensible.

FLUID FLOW AND MIXING z 7 problems were solved and 5 case studies presented. z Hydrostatic head becomes critical in many applications. z Bernoulli equation enables computation of head and power requirements. z Pressure drops in two phase flow are higher than in single phase flow. z Mixer impellers can be designed based on experimental data and literature. z Knowledge is vital in design, operation and process analysis.

FLUID FLOW-EQUIPMENT z 8 problems were solved and 2 case studies presented. z Working knowledge of equipment, internals, operating curves and affinity laws. helps in process analysis and design. z NPSH is the most sensitive parameter requiring precise understanding/ knowledge. z Heat capacity ratio impacts compressibility and power consumption calculations.

HEAT TRANSFER z 4 problems were solved and 3 case studies presented. z Consider leakage flows to accurately estimate heat transfer coefficients and pressure drops. z Condensers and reboilers require careful considerations. z Heat transfer and pressure drops are coupled. z Design must be checked from mechanical and vibration considerations.

PLANT UTILITIES z 5 case studies were presented. z Thumb Rule understanding 20 z CHEMICAL NEWS FEBRUARY 2015

DR. PARAG GOGATE MAKING THE PRESENTATION

is a great help. z Effectiveness of process plants gets linked with reliability of utilities supply. z Utilities impact company profitability. z Conservation is always rewarding. z Balance is important for new equipment sizing, conservation and loss control. z Utilities saved means equivalent capacity generated. z Cooling water treatment is science as well as art. z Cooling towers are sensitive equipment; to be understood well.

PLANT PIPING z 5 problems were solved and 3 case studies presented. z Well designed and maintained systems are effective, safe and reliable. z Is an expensive part of plant hardware. A SECTION OF THE DELEGATES

z Do not ignore abnormal situations: vibrations, frequent leaks and overflows. z Correct flow distribution is operationally rewarding. z Sizing and rating must be done consciously. z Isolation, switchover vacuum creation/prevention must be done accurately and consciously.

REACTION ENGINEERING z 6 problems were solved and 3 case studies presented. z Understanding the mechanism is crucial. z Multiphase mixing is core issue in most operations. z A wide variety of contactors are available. z Hydrodynamic characteristics within multiphase equipment are complex, which makes their characterization difficult. z Equipment performance gets

strongly related to hydrodynamic behaviour.

DISTILLATION AND EXTRACTION z 2 problems were solved and 2 case studies presented. z Knowledge of vapor-liquid equilibrium is essential for design and operation of distillation columns. z Relative volatility changes significantly with composition. z Column diameter is decided by flooding limitations. z Continuous distillation is generally more economical.

CRYSTALLIZATION AND FILTRATION z 1 problem was solved and 3 case studies presented. z Crystallization and filtration are critical product purification steps. z Crystallization involves several important phenomena: mixing, suspension, heat transfer etc. z Solubility, supersaturation, nucleation rate and growth rate are key parameters that govern the crystallization process and determine crystal size. z Filtration is strongly dependent on physicochemical properties of the particles as well as the mother liquor. z Filtration rate is characterized by specific cake resistance and media resistance.

OPEN FORUM HIGHLIGHTS An open forum was held as the concluding session. The following was captured: z The age group of participants: 30 years to 45 years. z Industrial experience: 5 to 20 years. z Production Personnel: 90% z Multi-disciplinary engineers: 80% z Non-engineers: Balance z On the whole, participants valued the program. z They looked forward to attend more such programs. z Being a refresher course, several said they would attend again if repeated.

AWARENESS PROGRAM ON “CHEMICAL WEAPONS CONVENTION” AT COIMBATORE

he Indian Chemical Council (ICC), jointly with Department of Chemicals and Fertilizers (DCPC), Ministry of Chemicals and Fertilizers organized a full day awareness programme on “Chemical Weapons Convention” on 4th December 2014 at the DRDO- BU Centre for Life Sciences, Bharathiar University Campus, Coimbatore. The programme was attended by 46 participants. The main objective of the programme was to create an awareness and understanding of the Chemical Weapons Convention (CWC) among the industries. The other major objective is to explain the importance and entire aspects of the CWC Act 2000 and to make sure that the industries submit “ error free” declarations through e - filing. The programme was attended by the delegates from Chemical Industries, Professors and Research students. The welcome address was given by Mr. K. Kothandaraman, Officer, CWC Help Desk, Chennai. Prof. Dr. G. James Pitchai, Honorary Vice Chancellor of Bharathiar University, kindly agreed to be the Chief Guest and the programme was inaugurated by him. The Vice - Chancellor during his address talked about the importance of CWC and how cruel the Chemical Weapons can be to the mankind. He urged the researchers from industries and the students to concentrate on the research leading to various inventions and protection mechanisms for the defence against Chemical Weapons. Dr. Rajeev Varshney, Director, Technology Support and Management, DRDO, New Delhi was the Guest of Honour. Dr.Rajeev

PROF. DR. G. JAMES PITCHAI, HONORARY VICE - CHANCELLOR OF BHARATHIAR UNIVERSITY, DELIVERING THE INAUGURAL ADDRESS

DR.P.V.L. RAO, DIRECTOR, DRDOBUCLS, DELIVERING THE ADDRESS

DR.S. DAYANANDA, UNIV OF HYDERABAD, DELIVERING THE ADDRESS

MR.R. NARAYANAN CWC HD, ICC-SR, DELIVERING THE ADDRESS

CHEMICAL NEWS FEBRUARY 2015 z 21

Varshney is also the Staff officer to the Scientific Advisor to the Minister for Defence, Govt of India. Followed by the Chief Guest address, a detailed talk on Nuclear, Biological and Chemical Weapons – Detection and Protection Technologies developed by DRDO was delivered by Dr. P.V.L. Rao, Scientist “G”, Director, DRDO – BU Centre for Life Sciences. In his presentation, Dr. P.V.L. Rao explained regarding the challenges faced for developing the detection techniques and counter measures against Chemical Weapons. He explained at length regarding the role played by DRDO to support the CWC by hosting the training sessions for OPCW inspectors and the challenges faced by the DRDE, Gwalior to excel not only as one of the designated laboratories of OPCW but also as the evaluation and sample preparation lab for conducting proficiency tests which is a remarkable feat. Prof. Dr. S. Dayananda, Head of School of Life Sciences, University of Hyderabad delivered a lecture on the Decontamination studies of Organo Phosphates and CW agents using Organo Phosphate Hydrolase (OPH) . The studies carried out by him on the degradation of CW agents were very interesting and well appreciated by the participants. An overview on Chemical Weapons Convention, declarations, inspection and the Chemistry involved in detection and destruction of Chemical Warfare agents was given by Mr. R. Narayanan, Advisor for CWC Implementation, Indian Chemical Council – Southern Region. Mr. Narayanan during his presentation, talked about the importance of the CWC convention and the role played by the implementing body viz., Organisation for the Prohibition of Chemical Weapons (OPCW). He gave an overview about the CWC Act 2000. He talked about the weapons of mass destruction and the various types of Chemical Warfare agents. 22 z CHEMICAL NEWS FEBRUARY 2015

A SECTION OF THE PARTICIPANTS

ANOTHER VIEW OF THE DELEGATES

He cited the examples of where and when the Chemical Weapons were used and the after- effects of the attack. In between the presentations several video clipping were shown, which were pertaining to the functioning of OPCW, about hazardous chemicals, use of nerve and blister CW agents in the battle field which are called as weapons of mass destruction (WMD), mechanism of action of nerve agents and the antidotes. While explaining about CWC Act 2000 and its implementation in India, he talked about various Schedules of Chemicals and about declaration and verification thresholds. He explained about the terms involved in the declaration process with illustrated examples. Mr. Narayanan also explained about the online declaration through e-filing and the importance of error free declarations. He used quite a number of case studies to explain the error free declaration. Followed by the presentation on CWC, a presentation on the

Verification Regime was also given by Mr.Narayanan. Later he gave a short presentation on the Role of National Authority for the implementation CWC Act 2000 in India. The last session was about the Chemistry involved in the detection and destruction of Chemical Warfare agents. Dr. K. Kadirvelu, Scientist E, Jt. Director, DRDO-BU Centre for Life Sciences, delivered a talk on Environmental Safety in the destruction of CW agents. Dr. K. Kadirvelu and Mr. Narayanan talked about the principles and mechanisms of various detection techniques involved in the CW agents detection which was well appreciated by the professors and research students. Some of the participants were from the industries declaring Discrete Organic Chemicals (DOCs) falling into the category of Other Chemical Production Facilities (OCPFs). The rest were from dye manufacturing industries and users of dyes procured from other states. There were quite a number of

professors and research students, the venue being a research institution owned and run by Defence Research Development Organization (DRDO) in the Bharathiar University campus, Coimbatore. The participants were quite impressed with the way the programme was conducted which was reflected in their feedback. The programme ended with the vote of thanks by Mr. K. Kalyanaraman, Regional Secretary, ICC, Southern Region.

AT LUDHIANA

ndian Chemical Council (ICC), Northern Region with the support of Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers, Govt.of India, organised CWC awareness programme (CWCAP) on Saturday, 20th December 2014 in the conference hall of Hotel Maharaja Regency, Ludhiana. The programme was attended by representatives of declaring facilities from the region, other chemical industries and Officials from State Pollution Control Board and DRI. There were 25 Participants, majority were from Other Chemical Production Facilities. The main thrust was to make industry aware on filing complete, accurate and timely declaration and on implications of errors in the information provided in declarations as well as on compliance of CWC Act and declaration criteria. Mr. R. Balasubramaniyan, Secretary, ICC – Northern Region formally welcomed the participants and gave a brief information on CWC the disarmament treaty, industry’s obligation on compliance of CWC Act2000 and on notifications relevant to CWC Act issued by Government of India from time to time. He also introduced Dr. N.J. Singh, Chairman, (SHE), ICC – Northern Region and Mr. Anand Kane of ICC’s CWC Help Desk. He requested them to interact with participants on the subject so

DR. N. J. SINGH MAKING THE PRESENTATION

as to ensure submission of error free declarations. He further requested participants to clarify all the doubts with respect to provisions of CWC Act and filing of declarations so as to meet their statutory obligations. Mr. Kane informed participants about the functions of CWC Help Desk, particularly on communicating industry in compliance with CWC ACT and Foreign Trade Act with reference to import and export of schedule 2 and schedule 3 chemicals. Mr. Kane also informed participants on assistance to industry in filing error free declaration and protecting Industry interests. Mr.Kane thereafter gave a quick overview of CWC through a Power point presentation. He gave detailed information on the contents of the convention i.e. Articles, Annexes on (a) chemicals and on (b) Verification, and that how the Convention is designed to ensure that toxic chemicals are only developed and produced for purposes unrelated to Chemical Weapons. Specific definition of Chemical Weapons (CW), categories of CWs such as Choking agents, Blister agents, Blood agents and Nerve agents and their effects on human beings were communicated. Information on development on CWs in cold war era as well as their destruction scenario by various CW possessor States was given. Information on countries that are not members to CWC and precautions in conducting chemical

trade with these countries with respect to Schedule 2 and schedule 3 chemicals. Participants were shown a recently produced 6-minute video programme titled “OPCW Corporate Video” showing history of use of Chemical Weapons and OPCW’s role in destruction of Chemical Weapons (CW) and the statistics. Dr. N.J. Singh, in his presentation elaborately dealt on the provisions of most important Articles of CWC, i.e form Article I to Article VII. More emphasis was given on Article VI that covers “activities not prohibited under this Convention”, otherwise known as the non-proliferation or industry verification regime. He further informed that CWC member countries must ensure that toxic chemicals and their precursors are only developed, produced, transferred and used for peaceful purposes. Facilities that produce Scheduled chemicals and Discrete Organic Chemicals are subject to control and reporting mechanisms implemented by the State Party, and to inspection by the OPCW. Following Information was given on schedule chemicals: z The schedule 2 chemicals are mainly organic Phosphorus, sulphur, chlorine, fluorine or amine compounds. All the three schedules have been divided into Part A –Toxic chemicals and Part B- precursors. The criteria that has been taken into account in considering toxic chemical or precursor to be included in schedule 2 is that It poses significant risk because of its toxicity that enable its use as CW. The criteria for chemicals to be included in schedule 3 was also explained at length. He also gave detailed information on OCPFs and need for their declaration and inspection. z Declaration time line, criteria, threshold and declaration specifics were explained in lucid manner through pictorial slides CHEMICAL NEWS FEBRUARY 2015 z 23

MR. ANAND KANE ADDRESSING THE DELEGATES

and practical examples. z Participants were also explained in details, the verification threshold, procedure and the inspection time lines. Dr. Singh also explained in detail about the common mistakes caused by the declaring facilities. He further dealt with provisions of CWC Act2000 including its penal provisions and amendment. The next presentation was by Mr. Kane on “live demonstration of e-filing of OCPF declarations”. Information on required data to be entered in every field of declaration form was demonstrated. Participants were simultaneously informed on common mistakes committed in providing information, and details on submission of declarations by OCPFs falling in production range of B32 and B33. Clarification was also given on guidelines on implementation of ISO 9001:2008 by DCPC and formation of a Committee by declaring facility. Participants were communicated that DCPC has modified forms of e-filing system to make it more user’s friendly. Providing of incomplete and inaccurate information in declarations and its consequences leading to “inspection of non inspectable facility” was discussed in the form of a case study. Mr. Kane also informed participants the reason for OCPFs to be included for declarations and that there is no choice but to submit decorations for effective implementation of CWC Act. Q & A session was quite interactive. Participants enquired details on Annual Declaration 24 z CHEMICAL NEWS FEBRUARY 2015

on Past Activities and Annual Declaration on Anticipated Activities and declaration timeline. Questions were also posed on formation of ISO committee and as to how new facilities should proceed for filing declarations. All the queries were answered to participant’s satisfaction. Participants were requested to contact Mr. K.S. Varma, In Charge, New Delhi HelpDesk for any CWC related matter. The programme ended with vote of thanks by Mr. K.S. Varma, In Charge New Delhi Help Desk. He thanked participants for their time and interactive approach.

AT HALDIA

ndian Chemical Council & the Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers jointly organized an awareness program on “Chemical Weapons Convention” on 24 December’2014 at “The Golden Retreat” City Centre, Haldia. The program was organized with the objective of generating awareness and understanding about the CWC Act’2000 highlighting the compliance & obligations under the convention and its relevance to the Indian Chemical Industry. At the outset, Mr. Ashok Purohit , Vice President, Dhunseri Petrochem Ltd. extended a warm welcome to the delegates. He outlined the importance of CWC Awareness Program ICC is conducting all through India & helping GOI to entirely eliminate chemical weapons of mass destruction & to prevent their re-emergence. He A SECTION OF THE DELEGATES

MR. ASHOK PUROHIT, VICE PRESIDENT, DHUNSERI PETROCHEM LTD, DELIVERING THE WELCOME ADDRESS

also briefed that CWC is a global arms control agreement which outlaws production, stockpiling & use of chemical weapons. He also mentioned that India has achieved commendable progress in this World peace process & the awareness program in today’s complicated world is of critical importance. He requested the participants to interact with Mr. Abhijit Chakraborty, CWC HelpDesk In-charge, Kolkata, for ensuring right declaration to DCPC. The inaugural session was followed by the Technical Session wherein Mr. Abhijit Chakraborty, Incharge, CWC Helpdesk, Kolkata made presentations on overview of Chemical Weapons Convention. He explained the CWC Act’2000, its implementation in India, stipulations laid down under the Act, Schedules of Chemicals (Schedule 1 comprising of Chemical Weapons, Schedule 2 comprising of Precursors & Schedule 3 referring to general purpose chemicals), Discrete Organic Chemicals, PSF Chemicals and also Declaration & Verification Thresholds. He also presented the complete list of commercially traded schedule 2 chemicals for the benefit of Indian Chemical Industry. Mr. Chakraborty

also highlighted the export control measures, filing declarations & the role of National Authority for CWC Act implementation. The penal provisions are also discussed with the Participants. E-filing of CWC declaration system which is a user friendly web based software to facilitate the industry users in filing their periodic CWC declaration and submit to the Department has been discussed in detail and he repeatedly

MR. ABHIJIT CHAKRABORTY, INCHARGE, CWC HELPDESK, KOLKATA, MAKING THE PRESENTATION

requested the participants to contact the CWC Helpdesks for any sort of queries / support required in filing correct declarations to the DCPC. Followed by the presentation, there was an interactive session where the queries of the participants were addressed. Forty (40) participants from various Chemical, Petrochemical, and other industries joined the CWC Awareness Program.

ROAD SAFETY WEEK AT HPL (HALDIA)

z Road safety week is celebrated from 11 to 17th January every year in India with greatest joy and enthusiasm - People are encouraged about how to drive on road by organizing variety of programmes related to the road safety. z On the auspicious week, Indian Chemical Council (ICC) – Eastern Region had arranged a program on “Defensive Driving” & “Safety Quiz Contest” on 16th January’2015 at the main conference hall of Haldia Petrochemicals Ltd., for HPL employees. Both the events were found to be extremely enjoyable to the participating 45 delegates. z In the introductory session, Mr. A. K. Ghosh (Head - Plant, Haldia

Petrochemicals Limited) stressed on the important aspects of Road Safety & requested each individual to practice each & every learning on a regular basis & told to share with the society at large. z In the technical session, Safety Consultant, Mr. Bimal Mukhopadhyay shared with the participants the statistics ( which tells 2 lakhs reported accident per year & death of 80,000 people & loss of 55,000 crores) & shared in detail with the group types & length of roads in India, night traffic, vehicle population, type of accidents, factors of accidents, main causes of accident, analysis of faults, defensive driving by audio visual, driver condition / qualities, Motor Vehicles Act, Alcohol & its effect,

Road markings, mandatory signs etc. The session was found to be extremely informative & interacting. z Safety Quiz was conducted at the post lunch session with 8 groups & three groups were selected in order of performance in the competition. z The Programme ended with vote of thanks by Mr. Sudinder Singh (V.P. – Head, Engineering & Maintenance, Haldia Petrochemicals). He thanked the participants for their time and keen interest on the important subject. He also thanked ICC & HPL Safety team for arranging this important Programme for ensuring safety of HPL employees and the safety of Community at large. CHEMICAL NEWS FEBRUARY 2015 z 25

DR. STAN HIGGINSâ&#x20AC;&#x2122; COLUMN

CONFERENCES PROVIDE VALUABLE BUSINESS INTELLIGENCE

Are you attending the 8th Annual India Chemical Industry Outlook Conference slated for 3 & 4 March 2015 in Mumbai?

am pleased to report that NEPIC and its member companies will again be supporting the event with over 20 delegates. Meanwhile I have been considering why conferences and related exhibitions are so important to businesses and yet in many instances at such events around the world we have seen poorer attendances and quite often a decline in quality of the agenda. The fact is that with the rate of change within industry today businesses require up-to-date sharing of information. Furthermore, you will never find the most valuable intelligence on the web or published elsewhere, this still comes from personal contacts in the sector. Most conferences are designed to provide attendees with useful content on relevant industry topics. Copies of the speakerâ&#x20AC;&#x2122;s slides certainly should be part of mechanism through which the attendee and their company can understand the latest industry developments. More importantly 26 z CHEMICAL NEWS FEBRUARY 2015

though, conferences should generate opportunities to build network connections, a more lucrative source of intelligence and the Annual India Chemistry Outlook Conference is certainly such an opportunity.

CONFERENCE NETWORKING Attending industry conferences is such an easy way to meet potential customers, suppliers and industry experts in a short space of time. Over a single day, or even 2 or 3 days conferences, they enable an individual to be introduced to many new network contacts. In most industries it is the network and pieces of information from within it that are important to the identification of new business and innovation opportunities, this is the source of most valuable business intelligence. However I am not sure that many companies understand the value of information and business intelligence. Industry information is always of value whether seemingly positive or negative. For example

knowing very quickly that trying to sell your particular products to a company is a waste of time can save your organisation a huge amount of resource and effort in trying to do so. While on the positive side you may find your new network contact makes a recommendation for you to meet someone else within his or her network where your products are more suited or where your idea might find a supportive partner. In addition the speakers at most conferences have been chosen because they too have valuable insights on a topic. Notes from their talks will also have valuable intelligence that can help your own company with both strategic and tactical activities. I for one believe that attending industry conferences is vital to the future of a business. When assessing any business one of the first questions that one should be ask is just who is responsible within the business for external intelligence gathering. You will be surprised how few businesses allocate anyone responsibility for this role. As a

company box. They will be become more valuable to the business particularly if the business values the intelligence they are gathering. Executives should be attending 2-4 external conferences and seminars per annum that are of relevance to the company or their careers. They should be formally charged with reporting back on what intelligence they have gathered and what they should action as a result. A senior director should be responsible for assessing this intelligence and making it available within the company. consequence such a business will not strategically evaluate which conferences to attend and perhaps more importantly which ones it will not attend (again saving valuable time and resource). When such decisions are left to individuals to decide it will also be likely that there is no concerted effort to pool, share and assess the intelligence gathered. I contest that too many within industry do not take advantage of this valuable intelligence gathering opportunity and leave conference and exhibition attendance to the whim of individuals or departmental managers, and then make no effort to capture and evaluate what is learned.

CONTENT VS SALES PITCH One issue for some conferences & exhibitions today is that in any country or any global industry there are far too many conferences in every industrial sector. This is yet another reason why it is important that a strategic assessment is made of which meetings to attend. An assessment of the agenda should help with this and a look at the historical attendance. If the attendance numbers are steadily increasing, this is a pretty good indication that the content and networking opportunities are valued. In addition the quality and level of attendees is also a good indicator.

Many do not like to attend conferences that have become a platform for an extended sales pitch. In some instances though, this in itself can be useful if a sales or purchasing opportunity is identified. Most attendees will be attending to understand business, new developments and how industry issues are being addressed in a wider context. Perhaps benchmarking of performance, looking for best practice or just plain and simply identifying business leads. One must always remember that listening to the talks is just one aspect of conference attendance and the business intelligence gained from the other attendees is just as likely to be of greatest value. However it is only likely that value will captured if arrangements are made back at the office to make use of the intelligence gathered. Sometimes the conference attendee is not the one that spots the opportunity but the person who reviews the intelligence gathered.

EXECUTIVE DEVELOPMENT The importance of conference attendance and industry nous for the development of young executives should also not be underestimated. Conferences and industry meetings is the best way that they will be able to build up their own network and help them to think outside of the

ONE YOU SHOULD NOT MISS The ICC Industry Outlook Conference is a very good way of meeting decision makers in the Indian Chemical Industry and it is also growing in stature on the international scene. The number of international attendees has been steadily growing as its agenda has become more internationally focussed. There are many networking opportunities provided across the two days of this conference with most speakers also providing access to their presentations. I know many businesses that have reported that they have identifying new business and innovation opportunities through attending this meeting. NEPIC have been proud partners with ICC for its delivery over the last three years and I hope that we will continue to help ICC internationalise the event even further. The ICC Annual Outlook Conference has become a strategic meeting for NEPIC and its Member and we look forward to identifying more opportunities to do business with our colleagues from India when we attend again in March 2015. DR. STAN HIGGINS is CEO of the Northeast of England Process Industry Cluster (NEPIC), a leading European Cluster for the chemical process industries see www. nepic.co.uk. NEPIC and ICC work closely on business development projects. Any opinions expressed in this column are those of Dr. Higgins alone. CHEMICAL NEWS FEBRUARY 2015 z 27

UNITED NATIONS SECURITY COUNCIL RESOLUTION 1540 – NON-PROLIFERATION RISKS AND COMPLIANCE MANAGEMENT

PRASHANT YAJNIK Independent Professional Integrated Chemicals and Compliance Management

ndia has over the years demonstrated responsible non-proliferation and export control practices. It has tightened its export control norms to prevent sensitive technologies and materials falling in hands of terrorists and undesired elements, thus making a strong representation for its membership to key multilateral export control regimes.

ENFORCEMENT OF GLOBAL EXPORT CONTROLS: Enforcement of effective export controls have been emphasized time and again. Indian chemical industry strongly adheres to the national regulations of SCOMET and other measures that are in place. It therefore does not share the view of some that export controls will be an added burden on industry – on the contrary, it will be a mistaken and short sighted notion. Following are some of the measures enforced that captures the essence and spirit of non-proliferation and hence the export controls.

CWC (CHEMICAL WEAPONS CONVENTION) ACT (2000):

The law was enacted in the Indian parliament in 2005 as a result of ratifying the CWC Treaty, demonstrating India’s compliance towards CWC particularly being a responsible possessor State Party. The Government is now in the process of amending some provisions at the end 28 z CHEMICAL NEWS FEBRUARY 2015

of almost ten years of its being enacted. It empowers the Government to enforce stricter controls on the transfers of dual use chemicals and penalizing the industry for any violations of the norms including levying of fines and imprisonment. Additionally, being the State party to the CWC, it is mandatory for the chemical industry to abide by to the submission of industrial declarations to OPCW providing necessary information on transfers of schedules of chemicals and open its facilities for verification.

SCOMET ( SPECIAL CHEMICALS, ORGANISMS, MATERIALS, EQUIPMENT AND TECHNOLOGIES)

Enforcement of SCOMET provisions is a robust national export control mechanism that covers prevention, detection and penalization of unauthorized exports. Systematic dual use control lists in India widely known as “SCOMET” List exists and is monitored successfully. The open ended list enumerated is in line with chemicals and items, listed in the CWC and the Australia Group, almost consistent with the EU list and is subject to be amended as the international updates take place. The licensing process is rigorous and involves assessment of export applications by various departments. Due restraint and responsibility in the transfer of chemicals and technologies is exercised based on a dynamic risk assessment system and ever changing proliferation trends. Export controls currently enforced are thus in line with the highest international practices and in some cases, in view of the generic coverage of controlled items or controls at the stage of manufacturing, they extend beyond the controls of the multilateral regimes. For instance, it has enumerated the factors that will be used henceforth to evaluate applications for exports of SCOMET items. The government, moreover, requires applicants for export licenses to certify that the item

exported will be used only for the purpose intended and stated. This declaration will neither be changed nor will be modified or duplicated without the consent of the Indian Government. Additionally, the end-user will need to facilitate all verification checks required by the Indian Government. The procedures also empower the enforcing authorities to require formal assurances, pertaining to such matters as end-use, non-retransfer or reshipment from the state in which the recipient firm is based.

FOREIGN TRADE (DEVELOPMENT AND REGULATION) ACT (1992):

The 2010 Amendment to the Foreign Trade (Development and Regulation) Act (1992) also focuses on provisions regarding transfer, re-transfer, transit and trans-shipment, though these provisions had already existed in the Indian regulatory system thus reinforcing towards tighter controls.

WEAPONS OF MASS DESTRUCTION ACT (2005):

In 2005, the WMD Act was passed to foment India’s commitment on United Nations Security Council Resolution (UNSCR) 1540. The Section 11 of the Act explicitly states: “No person shall export any material, equipment, or technology knowing that such material, equipment, or technology is intended to be used in the design or manufacture of a biological weapon, chemical weapon, nuclear weapon or other nuclear explosive

device, or in their missile delivery systems.” In addition, it has an intricate and graded penalty system for dealing with acts of violation. This Act introduced other elements such as transit and trans-shipment controls retransfer provisions, technology transfer controls, brokering controls and end-use based controls into the Indian export controls system. Besides, the Customs Act and the Unlawful Activities (Prevention) Amendment Act, 2004 provide statutory authority for export controls.

UNSCR 1540 - IS INDUSTRY IN COMPLIANCE…: India being the UN Member State is obligated to fully address and enforce the provisions of the Resolution. It is unquestionably agreed that UNSCR 1540 is an important tool in global efforts to prevent WMD proliferation, is a political resolve to develop and maintain appropriate effective border controls and to put in place an export and transshipment control system to prevent the dissemination of weapons of mass destruction and related technologies for illegitimate purposes. Additionally UNSCR 1540 Secretariat also undertakes to extend its support and assist those Member States who do not have adequate legal system in place to draft appropriate national legal framework. This resolution encompasses (a) accountability, (b) physical protection, (c) border controls and law enforcement efforts and (d) national export and trans-shipment controls including controls on providing funds and services such as financing CHEMICAL NEWS FEBRUARY 2015 z 29

to such export and trans-shipment. India does not require any additional support from the UNSCR 1540 Committee to draft additional provisions for implementation of UNSCR 1540. It enforces already initiated transfer provisions by virtue of its adherence to CWC and ever fluid but robust internally generated SCOMET mechanism. In the industry’s perception by adhering to these regulations, India therefore does not need to cast any additional regulations on the industry but the enforcement agencies need to streamline their efforts towards enhancing customs personnel involvement and industrial outreach. Many in the chemical industry continue to believe that transfer provisions are adequately embedded in the CWC provisions on schedules of chemicals and therefore the impact of UNSCR 1540 is diluted to an extent as it does not offer any additional controls that needs to be adhered by the industry. It is left to States Parties to ensure that the regulations are consistent with the Resolution, and which is in spirit and intent encompasses with those in CWC. This interpretation bears credence from views that have been expressed. Though the UNSCR 1540 Committee has made efforts over years to support those member States who need to draft in required laws that will render them consistent with international obligations, gaps continue to appear in efficient application of implementation. It is since last 10 years that the committee gathers various progress reports but is unable to seek any legal action against those that neither report their compliance nor are there any provisions to deal with the issue of noncompliance. This is a major loophole in the operational terms. Methods of warfare are changing quickly. If uniform implementation procedures, may be based on the regional groups, is not in place soon, the existing Resolution will need to be revisited and its priorities relooked at.

OTHER INDUSTRIAL INITIATIVES – INDUSTRY’S COMPLIANCE …: Following are some of the international initiatives that the chemical industry has not only abided to but practiced to raise their performance bar, internal audit and compliance systems that have helped them to effectively organize their supply and production chain.

RESPONSIBLE CARE: Responsible Care is the voluntary initiative of the chemical industry to continuously improve its performance on environmental, health, safety and security issues. It promotes regular audits, verification and continuous improvement to seek continuous monitoring of all security processes. Responsible Care companies have management systems in place that are robust, well documented and 30 z CHEMICAL NEWS FEBRUARY 2015

most often verified or certified. Ideally, for declarable and “inspectable” plant sites a single company policy on record-keeping, declarations and export controls should cover CWC and all other related restrictions to trade. It also seeks to prevent harm to the public or environment posed by the storage, handling, and transportation of chemicals by evaluating and eliminating risks and providing emergency response support in the event of a chemical distribution emergency. This encompasses company activities associated with the production, storage, distribution and transportation of products as well as the pertinent liaison with suppliers and customers. An important aspect to Responsible Care is the introduction of the Security Codes of Conduct. Introduction of Security Code will help industries with regards to identifying and mitigating risks associated with the product cycle including transportation and value chain security. Security affects many different functions. Besides site security, this topic has become a fundamental element within the supply chain e.g. in transport security and in export and trade controls as well. The Security Code is intended to complement commitments existing in those areas and aims to raise awareness of all involved parties that only close interaction and a regular reassessment of securityrelated practices will improve the overall security performance. Under the codes, Responsible Care companies require senior leadership commitment and companies are encouraged to undertake periodical analysis of threats and vulnerabilities. If security weaknesses are revealed then security measures must be developed and implemented. Maintaining open and effective lines of communication with industry partners and law enforcement officials is evident. The security code will be implemented with the understanding that security is a shared responsibility requiring actions also by other parties such as downstream customers, suppliers, service providers and governmental security agencies. Effectively assessing and reducing the global threat of international terrorism can only occur with the competent support of the responsible national and international counterterrorism agencies.

REACH: This is an EU initiative effective 2007. It improves the knowledge of hazards of chemicals and risks associated with their use as well as better risk management. However, chemical industry believes it is enforcement of new control regime for exports to EU but without its full implementation procedures in place. Substance users can no longer continue to use them, if they were not pre-registered or registered by an upstream actor in the supply chain. On the other hand exporters to EU of registered chemicals believe that this initiative has allowed them to raise the internal compliance bar and have been successful in implementing an efficient chemical tracking record. However, issues pertaining to implications for commercial confidentiality, intellectual property rights in the supply chain and product life cycles have been questioned.

SAICHM: It is a common understanding amongst the regulatory agencies that significant, but insufficient, progress has been made in international chemicals management. It

defines a policy framework to foster the sound worldwide management and chemical safety of chemicals. This initiative covers risk assessments of chemicals and harmonized labeling up to tackling obsolete and stockpiled products. It has as its overall objective the achievement of the sound management of chemicals throughout their life cycle so that, by 2020, chemicals are produced and used in ways that minimize significant adverse impacts on human health and the environment. This will also include The â&#x20AC;&#x153;Globally Harmonised System of Classification and Labelling of Chemicalsâ&#x20AC;? (GHS) proposes harmonised hazard communication elements, including labels and safety data sheets. The classification of chemicals is done based on their hazard. This harmonisation will facilitate trade and exports when implemented entirely. There is an emphasis for developing training module for chemical safety and security in areas of implementation of security measures, documentation, responses to security threats and incidents, audits and third party verification, physical security of manufacturing locations and security of product in supply chain.

WHAT DOES INDUSTRY NEED TO DOâ&#x20AC;Ś: Having said that, as more Indian companies get involved in manufacturing and exporting dual-use items, it also poses several stiff challenges, the Indian export control system will need to continuously upgrade its regulations to respond effectively. The need of the hour is to generate a uniform global harmonized export control system and sharing of information. It is the controlling of dual use chemicals and equipment that will pose real challenges in the coming years. Some experts in the international arena believe advocating harmonized control system may not be a pragmatic approach as the industrial and national

CHEMICAL NEWS FEBRUARY 2015 z 31

infrastructures as well as approach by regional groups differ largely. On the other hand there are many who believe that unless all States parties do not observe consistent and uniform export control regulations, it will be difficult to tame the dual use chemicals falling in the hands of unwanted elements. To begin with, it may be taken up in stages. Each regional group must make earnest efforts to arrive at a minimum understanding of export controls within a specific time frame and devise regulations. These can then be discussed – be either modified, amended or propelled for the acceptance of a common minimum export control norms. Such an activity will need an unflinching support and dedicated work from customs, cross border monitoring officials, industries and chemical institutions, governmental officials and others. In India, there is a gradual integration into the internal auditing mechanism. Industry will need to adapt compliance measures to mitigate non-proliferation risks. It is equally true that many companies in the industry have inadequate systems for dealing with export control rules and practically devoid of no real internal compliance or internal audit system at all particularly with regards to reshipments and retransfers. Unless, the chemical industry does not accept to evaluate its internal mechanism for plant and supply chain audits, there is a risk potential that in the ever changing /updating global export control enforcements, industry will get into a crossfire that will blemish their up to now compliance records as well as risk its consignments being “watched, monitored and /or intercepted” globally. This will lead to heavy penalties Industry will need to transform itself by sharing best audit, internal compliance programmes with those who have expertise in dealing with it. In this context, the chemical industry may wish to consider and offer an unlimited access to all its plants and establish voluntary measures to prevent misuse of chemicals by training sales and marketing personnel to identify suspicious inquiries, auditing data security, participating in the table top exercises to identify companies/sites subject to verification. This is being done by several companies but needs more thrust in this direction. Though the chemical Industry is supportive but concerned, very often, about how verification would be implemented particularly on compromising trade secrets, excessive burden and technical soundness of the control regime, level playing field and industry reputation, it will need to take a step forward to ensure their own safety and security.

ADDRESSING THE STUMBLING BLOCKS AND FUTURE GLOBAL CHALLENGES:

GLOBALISATION AND TRADE:

Economic globalisation has changed the perception of

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threat of production and distribution of toxic chemicals. Some of the factors that contribute towards it are - fast developing chemical industry, constantly changing industry structure, easy access to chemicals and records management, operating plants in developing countries with high tech manufacturing capabilities, adaptability of the chemical industry to absorb newer developments, generation of large pool of expertise and dissemination of information, all these contribute significantly towards the need to constantly update existing export controls, trans border movements, security aspects and trade management. It is desirable that the economic impact of strategic trade controls is assessed in context of industrial globalization. Challenges will continue to crop up as a result of constant improvisations that take place due to technological advances as well as due to diminishing boundaries between chemistry and biology. It is vital that Resolution 1540 do not impede globalization phenomenon while exercising its potential to counter security risks and threats also.

CHANGES IN THE METHODS OF WARFARE:

In addition, issues of IEDs – explosive devices need to be addressed as these have potential to procure those dual use chemicals that can have devastating effects. It’s a new method of chemical warfare that has begun draining vast financial resources of several countries to combat its impact. There have been instances of potential use of nerve agent. It was almost a century ago that chlorine was used as a method of warfare. History repeats. Syria and recently Iraq have witnessed use of chlorine gas together with the IEDs.

CONCLUSIONS: Legislation alone is not sufficient if the resolution 1540 is to be used to maximum effect. Implementation is thus the key challenge moving into the resolution’s second decade. There is a need to discuss the value of regional standards and the benefits of a model Common Control List, how targeting and risk management practices can be integrated effectively into trade facilitation measures, enhance the capabilities of customs and border control officials. It also raises a question – do we need more regulations and enforcements to manage export controls and safe operatives in terms of safety and security or do we need to redefine the current export control mechanisms and strengthen them to meet needs 10 years from now. UNSCR 1540 Committee and the state party therefore look towards its industries, traders, universities to come forward and accept voluntarily measures to ensure that they adopt audits, internal compliance measures in their supply chain and share the acquired knowledge. z

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MUSINGS OF A CHEMICAL ENGINEER RAJAN SHAHâ&#x20AC;&#x2122;S COLUMN

he typical chemical manufacturing process involves reactions and separations. It is common to focus on reactions but it is the separation processes that consume most of the energy consumed, require most plant space and involve most of the capital investment. The most common separation process in the chemical industry is fractional distillation. This column will discuss the science and art of fractional distillation. I will use the word distillation to signify fractional distillation as distinct from simple distillation also known as Rayleigh distillation. The design of distillation columns requires vapour-liquid equilibrium data for the components present in the mixture to be separated. For a large number of mixtures, these data are available in data banks as well as in many process simulation packages. It is common to fit VLE data to various thermodynamic models. These models are needed, when computers are used to design distillation columns. For mixtures, where VLE data are not available, a technique called UNIFAC based on the chemical structure (using functional groups) to estimate this data has been developed and is used fairly extensively. Most process simulators are able to use UNIFAC parameters for distillation column design. As can be expected, 34 z CHEMICAL NEWS FEBRUARY 2015

designers prefer to avoid having to use UNIFAC to estimate VLE data because it can be inaccurate, leading to columns that do not provide the expected performance. Distillation processes can be continuous or batch. Continuous distillation is used when there is very little variation in the feed composition to the distillation column. This occurs mostly in large plants and in some smaller single product plants. Continuous distillation columns need total automation for successful operation. Control systems for optimum operation of continuous distillation systems can be fairly complex and require experts to design them. The vast majority of chemicals are produced in batches and different products are often produced in the same set of reactors. Solvents are commonly used in the synthesis of many fine chemicals and APIs. Such processes can generate mixtures of solvents often containing dissolved solids as waste streams. These waste streams are often hazardous, are difficult to dispose off and cannot be recycled unless separated into pure components. In such cases batch distillation becomes the only feasible option. Assuming that VLE data is either available or can be estimated using UNIFAC or can be measured in the laboratory, a batch distillation column can be designed using

methods described in textbooks and in several articles published in open literature. Textbooks describe two methods of operating batch distillation columns. One method is to vary the reflux ratio and maintain constant purity of the distillate. The second method is to maintain constant reflux ratio and obtain variable purity of distillate. Both methods are used. There are, however, other methods, which can be used to operate batch distillation columns that can provide superior performance in certain cases. Though process simulators contain batch distillation modules, they are not always easy to use and can be restricted to the constant reflux case. A batch distillation column typically consists of a kettle reboiler with the column mounted on it. A condenser and receiver are provided at the top so that reflux flows by gravity into the column. By contrast a continuous column has a separation section, referred to as rectification section, above the feed tray and another separation section, referred to as stripping section, below the feed tray. A conventional batch column performs rectification and is similar to the column section above the feed plate in a continuous column. This means that in conventional batch distillation, the stripping section present in continuous distillation

columns is missing. In the stripping section, the low boilers are stripped off from the high boilers. Therefore batch columns do not perform well when stripping is required. Stripping becomes dominant when the concentration of high boilers is low. In such applications the preferred method would be to use inverted batch distillation, which involves replacing the feed as reflux and collecting the distillate. The feed mixture flows down the column, while the vapours travel upwards from the reboiler. This way the low boiler is stripped out by vapourization and the high boiler flows down into the reboiler. In the air oxidation of cyclohexane to KA oil, the conversion of cyclohexane can be as low as 6%. The feed contains 6.5% high boiler (KA oil) and 93.5% low boiler. If this is mixture is to be separated by batch distillation, the best option would be to use inverted batch column. It is much more difficult to obtain high recovery and purity of the KA oil product using a conventional batch column.

Middle vessel batch distillation is another technique that can be used to separate difficult mixtures such as azeotropes. Azeoitropic mixtures can be separated by azeotropic and/or extractive distillation. An example of using azeotropic distillation is the dehydration of ethyl alcohol to obtain 99.9% ethanol. In this specific case, azeotropic distillation uses an entrainer such a toluene, which generates a distillate stream having lower boiling point than the other components. Extractive distillation uses a solvent such as ethylene glycol that increases the relative volatility of ethanol. Middle vessel

batch column is an efficient way to obtain dry ethanol by extractive distillation column. Unfortunately these techniques are described in only two books on batch distillation and universities do not, generally use them in their courses. Chemical producers could consider the use of these techniques to recover and recycle solvents from their mixtures. All that is required are two packed columns, two to three heat exchangers and two pumps and two tanks. The system can separate a wide range of components. The control system is also relatively simple. The difficulties lie in system design.

ABOUT THE AUTHOR: RAJAN SHAH received his BS in 1966 and MS in 1967 in Chemical Engineering from the Massachusetts Institute of Technology (MIT), USA. He then worked as a development engineer with MIT Prof. Dr. Ralph Landauâ&#x20AC;&#x2122;s company Halcon International Inc. (part of the Halcon/Scientific Design Group) in New York. He returned to India in 1968 and joined Aniline Dyestuffs & Pharmaceuticals Pvt. Ltd. (ADP). The company had been started by his father, late Shri. Shivanand J. Shah, who was a past president of ICMA (now ICC) and past Chairman of CHEMEXCIL. In 1990 Rajan started Chemet Design & Engineering (I) Pvt. Ltd. to provide design, engineering and construction services for the chemical process industries. He moved to Australia in 1998 and has continued to provide design and process consulting services in Australasia, India and USA. Since 2005, Rajan has also been associated with Biospecialties International Pty. Ltd. as CEO, where he was engaged in developing the manufacturing process for a novel peptide for use as an ingredient in health supplements. CHEMICAL NEWS FEBRUARY 2015 z 35

FOR THE RECORD: IN THE WORD “SINE”, WE SEE THE INTERCONNECTION OF THREE MATHEMATICAL TRADITIONS – INDIAN, ARABIC AND EUROPEAN Amartya Sen

[Excerpts from the speech delivered at the Infosys Science Foundation Award meeting in Kolkata, on 5th January 2015].

want to say a few things about the wider role of teaching in linking different nations and different cultures together. Teaching is not just a matter of instruction given by teachers to their individual students. The progress of science and of knowledge depends, in general, on the learning that one nation — one group of people — derives from what has been achieved by other nations and other groups of people. For example, the golden age of Indian mathematics, which changed the face of mathematics in the world, was roughly from the 5th to the 12th century, and its beginning was directly inspired by what we Indians were learning from work done in Babylon, Greece and Rome. To be sure, there was an Indian tradition of analytical thinking going back much further, on which the stellar outbursts of mathematical work in India from around the 5th century drew, but we learned a lot about theorems and proofs and rigorous mathematical reasoning from the Greeks and the Romans and the Babylonians. There is no shame in learning from others and then putting what we have learned to good use, going on to create new knowledge, new understanding and thrillingly novel ideas and results. Indians, of course, were teaching other Indians. Perhaps the most powerful mathematician of ancient India, Brahmagupta, would not have been able to do such dazzling work without his having been influenced by the ideas of his own teachers, in particular Aryabhata, the pioneering leader of the Indian school of mathematics. Alberuni, the Iranian mathematician who spent many years in India from the end of the 10th to the early years of the 11th century (and helped to

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make Arab mathematicians learn even more from Indian mathematics than they were already doing) thought that Brahmagupta was perhaps the finest mathematician and astronomer in India — and possibly in the world — and yet, argued Alberuni, Brahmagupta could be so productive only by standing on the shoulders of the great Aryabhata, who was not only an extraordinary scientist and mathematician, but also a superb teacher. Learning from each other continued over centuries, involving, in addition to Aryabhata and Brahmagupta, Varahamihira and Bhaskara, among many others. And just as Indian mathematicians learned something from Babylonians, Greeks and Romans, they also taught some brilliantly new ideas to mathematicians elsewhere in the world. For example, Yi Xing [I-Hsing], who lived in China between the 7th and 8th century and who was, as Joseph Needham describes him, probably the finest Chinese mathematician of his time, knew all the relevant Indian texts. Chinese mathematicians as well as the pioneering Arab mathematicians, including Al-Khwarizmi (from whose name the term “algorithm” is derived), all knew Sanskrit and the Sanskritic literature in maths. What we are admiring here is not Indian mathematics done in splendid isolation (that rarely occurs

anywhere in the world), but mathematics done with a huge role of international and interregional exchange of ideas. Indian research was deeply influenced by the knowledge of foreign works on the subject, and in turn, Indian maths influenced mathematical work even in those countries, including Greece and Rome and Baghdad, from where Indians themselves had learned many things. Let me end with an example. The history of the term “sine” in trigonometry illustrates how we learn from each other. That trigonometric idea was well developed by Aryabhata, who called it jya-ardha, and sometimes shortened it to jya. Arab mathematicians, using Aryabhata’s idea, called it “jiba”, which is phonetically close. Jiba is a meaningless sound in Arabic, but jaib, which has the same consonants, is a good Arabic word, and since the Arabic script does not specify vowels, later generation of Arab mathematicians used the term jaib, which means a bay or a cove. Then, in 1150, when Italian mathematician Gherardo of Cremona translated the word into Latin, he used the Latin word “sinus”, which means a bay or a cove in Latin. And it is from this — the Latin sinus — that the modern trigonometric term “sine” is derived. In this one word we see the interconnection of three mathematical traditions: Indian, Arabic and European.

ABOUT THE AUTHOR: AMARTYA SEN Thomas W. Lamont University Professor and Professor of Economics and Philosophy at Harvard University, USA Until 2004, he was the Master of Trinity College, Cambridge. He has served as President of the Econometric Society, the American Economic Association, the Indian Economic Association, and the International Economic Association. Amartya Sen’s awards include Bharat Ratna (India), Commandeur de la Legion d’Honneur (France), the National Humanities Medal (USA), Ordem do Merito Cientifico (Brazil), Honorary Companion of Honour (UK), Aztec Eagle (Mexico), Edinburgh Medal (UK), the George Marshall Award (USA), the Eisenhauer Medal (USA), and the Nobel Prize in Economics.

Chandermukhi, 3rd Floor, Nariman Point, Mumbai - 400021, INDIA Phone: 91 22 2285 1316 / 5176 / 5177

Email: nkrao@laxmiorganic.co.in

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This issue sponsored by http://www.aiche.org/CCPS/Publications/Beacon/index.aspx www.aiche.org/ccps

Messages for Manufacturing Personnel

www.acutech-consulting.com

Who are all these people? In a number of serious events, there may have been more people in the area than were needed to do or monitor the job. Some examples: • Nineteen people managed to escape, although some were engulfed in flames, when investigating a leaking oil pipe in a refinery. The leak suddenly increased in size releasing a flammable vapor cloud which ignited (1). • There were 17 fatalities from an explosion when a compressor removing vapors from a wastewater storage tank was restarted. The tank unexpectedly contained a flammable atmosphere (2). • Three of five workers investigating a pipe leak in a metal processing plant were fatally injured when a hydrogen fire broke out (3). The risk of a serious event is higher when equipment is starting up, shutting down, or in abnormal operation. Why? In some cases, safeguards may not be fully functional during a transition. During startup, it is possible that somebody made a mistake in preparing the equipment for startup and something is not correct. Perhaps a valve that should be closed has been left open, a blind has been left in a line, or some other error. People doing the startup are focused on the task at hand and may not be thinking about what could go wrong or what happens if it does. Upset conditions may create a large number of alarms which hide a potential problem.

February 2015 1

Too many people in the area, whether the control room or the plant, can be a distraction, causing bad decisions which could lead to serious process safety events. They may also be injured by the event, and there was no good reason for them to be in the area.

What can you do? Review operating procedures for non-standard operating modes – for example, startup, shutdown, process upset, investigating a process or equipment problem. The procedures should consider who is allowed in the area and who isn’t. If this information is not clear, bring it to the attention of plant management. Here are some questions that the operating procedure should have answers for: 1. 2. 3. 4. 5. 6.

Who is essential to this task? Who MUST be there? Who are just concerned people who do not need to be in the area and who should be directed to go to a safer location? For planned activities such as startup and shutdown, this should be determined when the startup or shutdown plan is developed. If something goes wrong, what could happen to people in the area? Review emergency procedures for leaks – do they consider what people who are not essential for response should do while the leak is being investigated? Do all people in the area know what they should do if a loss of containment occurs? Do they have the proper personal protective equipment? Consider postponing tasks to prevent non-essential people from being in an area during non-standard operating modes. If you don’t have a specific, defined job to do in the operation, maybe you should go somewhere else! If you are not sure, ask for permission from the area supervisor or operator to be present while this operation is taking place?

Think about who is not required to be present when starting up equipment or investigating a problem! ©AIChE 2015. All rights reserved. Reproduction for non-commercial, educational purposes is encouraged. However, reproduction for any commercial purpose without express written consent of AIChE is strictly prohibited. Contact us at ccps_beacon@aiche.org or 646-495-1371.

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PRESSURE RELIEF SYSTEM REACTION FORCES â&#x20AC;&#x201C; THE IMPORTANCE OF EVALUATING EXISTING INSTALLATIONS Jason F. White P.E.; Bill Frenk & Dustin Smith P.E.

KEYWORDS: Pressure Relief, Overpressure, Reaction Forces, PSM Compliance, Action Item Resolution, Relief Systems Design, Pipe Stress, Atmospheric Discharge, Mechanical Integrity

ABSTRACT Overpressure protection analysis has evolved significantly since the inception of the PSM standard, but the mechanical stress applied to the piping during overpressure events appears to have been overlooked. Recent events have led several facilities to request more attention be paid to the effects stresses induced from relief device discharges have on their piping. The purpose of this study is to allow an existing facility to focus resources on the relief device installations most likely to fail due to reaction forces. A series of representative installations were evaluated in order to determine which parameters associated with pressure relief have the strongest impact on the installations, with particular concentration on the dynamic effects of the release. Screening criteria for identifying pressure relief device installations which may exceed the allowable pipe stress levels were developed from these systems. When evaluated against a petrochemical facilityâ&#x20AC;&#x2122;s pressure relief systems and benchmarked for its validity as a first pass tool to identify potential installations that may require further analysis or additional physical supports, is was found that over 30% of the existing installations may require support for reaction forces.

INTRODUCTION

Pressure relief devices control the amount and disposition of material during a process upset while simultaneously protecting process equipment from damage due to overpressure caused by the upset. The most common devices used for this purpose are pressure relief/pressure safety

valves. Quite a bit of engineering research, testing, and analysis has been performed to improve the ability to quantify the suitability of a relief valve and the associated installation to protect equipment from overpressure. One area that has less prescriptive requirements is analyzing the structural integrity of the relief device installation

during the emergency event. These installations are not designed for continuous flow; but rather sporadic flow often times at choked/sonic conditions. This paper takes a brief look at the existing evaluation of reaction forces for pressure relief valves, performs a detailed baseline analysis of typical installations in order to develop a screening tool for evaluating an existing facility, and identifies the results when tested against an existing petrochemical facility. The purpose of this study is to limit the number of relief valves that require rigorous engineering calculations to determine the adequacy of the installation. Often times it is assumed that pressure relief valve installations are simple and easy to design; practical experience has shown that pressure relief valve installations (particularly devices that discharge to the atmosphere) are the most easily manipulated during the actual construction phase and often are not installed as they were intended. See Figure 1 for two examples of installations that were likely not installed as designed (or designed at all); clearly not all existing relief valve installations meet the specifications as recommended by industry practice. CHEMICAL NEWS FEBRUARY 2015 z 39

FIGURE 1 – EXAMPLES OF PRESSURE RELIEF VALVE INSTALLATIONS WHERE LITTLE OR NO ENGINEERING PIPING DESIGN WAS PERFORMED OR DESIGN WAS NOT FOLLOWED.

REACTION FORCE ANALYSIS METHODOLOGY

2.1 REACTION FORCES GENERAL During an overpressure event, the discharge of a pressure relief valve imposes a load, referred to as a reaction force, on the collective installation. This force creates a bending moment that is both a function of the quantity and state of the release and the physical layout of the piping installation: the lever arm created by the installation. The stress caused by the reaction force is propagated into and through the relief valve and then into the inlet piping and vessel nozzle, unless the system is properly supported. 2.1.1 API REACTION FORCE ANALYSIS The American Petroleum Institute (API) provides guidance for determining pressure relief requirements for pressure relief 40 z CHEMICAL NEWS FEBRUARY 2015

device installations. API 520 Part II (American Petroleum Institute, 2008) states that pressure relief valve outlet piping should be independently supported and properly directionally aligned. Stresses placed due to forced alignment of pressure relief valve

piping are also mentioned; however, that topic will not be elaborated in this paper. The authors’ practical experience has demonstrated that a significant portion of atmospheric relief devices do not have piping supports in place as described in Figure 2.

FIGURE 2 - RECREATION OF FIGURE 7 FROM API 520 FOR A TYPICAL RELIEF VALVE INSTALLATION

NOTE 1 – THE SUPPORT SHOULD BE AS CLOSE AS POSSIBLE TO THE CENTERLINE OF THE VENT PIPE. NOTE 2 – F = REACTION FORCE, A = CROSS-SECTIONAL AREA OF DISCHARGE PIPE.

F (see Note 2) A (see Note 2) Vent Pipe Relief Valve

Support to resist weight and reaction forces (see Note 1)

API 520 Part II provides a calculation as a basis for the reaction forces in the event of a vapor or 2-phase releases directly to the atmosphere. No discussion of the reaction forces developed during a liquid release exists in this section. No guidance with respect to applying these results or determining if an installation is acceptable are presented; the burden is placed on the designer to ensure that the installation is appropriate. While this may be reasonable for the design of new facilities, evaluating the adequacy of existing facilities becomes much more complicated. The formulas as from API RP 520 Part 2 are listed below for relief devices discharging to the atmosphere:

W kT + AP 366 (k + 1) M

API 520 pt II 4.4.1.1 U.S. customary units for vapor relief reaction forces

 x (1 − x)  W2  +  + A( Pe − Pa ) ρl  2.898 E106 A  ρ g

API 520 pt II 4.4.1.2 U.S. customary units for 2-phase relief reaction forces

Where F = Reaction force at the point of discharge to the atmosphere, lbf k = Ratio of specific heats (CP/CV) at the outlet conditions W = Flow of any gas or vapor, lbm/hr Cp = Specific heat at constant pressure Cv = Specific heat at constant volume T = Temperature at the outlet, °R M = Molecular weight of the process fluid

2.1.2 DIERS REACTION FORCE ANALYSIS The Design Institute for Emergency Relief Systems (DIERS) provides much of the same guidance for the considerations for reaction forces and the determination as to the acceptability of a relief device installation. (Fisher, 1992) Some additional recommendations are provided with regard to the

P = Static pressure within the outlet at the point of discharge, psig g = Vapor density at exit conditions, lbm/ft3 A = Area of the outlet at the point of discharge, in2 x = Weight fraction vapor at exit conditions l = Liquid density at exit conditions, lbm/ft3 Pe = Absolute pressure at pipe exit, psia Pa = Absolute ambient pressure, psig

suggested piping layout to avoid excessive lever arms as recreated in Figure 3. Additionally, emphasis is placed on the importance of evaluating the reaction forces for all credible overpressure contingencies, not simply the controlling contingency. This is very important because the physical properties are not always the same, and in some cases, the

FIGURE 3 – EXAMPLE OF HOW EVEN THE SMALLEST MODIFICATION IN PIPING DESIGN CAN HAVE A SIGNIFICANT EFFECT ON THE RESULTING REACTION FORCES. IN THIS CASE, THE SYSTEM ON THE LEFT HAS SIGNIFICANTLY MORE STRESS DUE TO THE INCREASED LEVER ARM AND DIRECTION OF DISCHARGE WHEN COMPARED TO THE SYSTEM ON THE RIGHT. L

controlling contingency for sizing may be a vapor stream while the controlling case for the reaction forces may be an all 2-Phase stream.

REACTION FORCE CASE STUDY ANALYSIS

A piping system may respond far differently to a dynamic load than it would to a static load of the same magnitude. Static loads are those which are applied slowly enough that the piping system has time to react and internally distribute the loads, thereby remaining in equilibrium. With a dynamic load – a load which changes quickly with time – the piping system may not have time to internally distribute the loads, so forces and moments are not always resolved, resulting in unbalanced and potentially concentrated loads and pipe movement. The typical action of relief valve venting is an impulse load where the flow rate and associated forces ramps from nominally zero to some value, remains relatively constant for the duration of the release, and then ramps down to zero again. CHEMICAL NEWS FEBRUARY 2015 z 41

When the relief valve opens, the discharge fluid creates a jet force which acts on the piping system; this force increases to its full value, from zero, over a time frame similar to the opening time of the valve. The relief valve remains open until sufficient fluid is vented to relieve the overpressure situation. When the valve then closes, the reduction in flow corresponds to the loss of the jet force over the closing time of the valve. Multiple relief valve piping configurations were analyzed for both static and dynamic conditions using CEASAR II. The stresses calculated during the analysis were checked against the allowable stresses per ASME B31.3 - 302.3.5. Additionally, the analysis was used to determine if a flange leak was likely. In all cases, the dynamic condition was determined to be the governing condition for the structural integrity of the piping system. The leakage check looks at the tendency of the flanges to separate under the applied piping loads. ASME B31.3 does not address flange leakage directly. The purpose

of this analysis was to determine piping failure and not flange leaks. From extensive tests, “it has been determined that even under unusually severe bending stresses, flange assemblies did not fail in the flange proper, by fracture of the bolts, or by leakage across the joint face. Structural failure occurred almost invariably in the pipe adjacent to the flange, and in rare instances, across an unusually weak attachment weld. Leakage well in advance of failure was observed only in the case of threaded flanges.” (Peng, 2009). This would suggest that the structural integrity of the piping is the major area of concern for any stress analysis and should be considered over flange leakage. This is the basis for these evaluations. A variety of process connections have been observed in field installations: welding reducing tees, weld/thread O-Let’s, and unreinforced “Stub-In” connections. Unreinforced “Stub-In” connections result in the highest ratio of calculated to Code allowed stresses, followed by O-Let’s and then

welding reducing tees for the same relief system applied piping loads. The model used in the current evaluations has been confined to “welding reducing tees.” The allowable Code stresses are below the yield and well below the tensile as indicated below for commonly used carbon steel materials. The net result is that there is approximately 19% to 24% safety factor between the Code allowable for “Occasional Loading” and the yield point where the material begins to fail. The relief valve models were evaluated to establish relief pressures at which the calculated stresses were within 5% of each of the Allowable Occasional, Yield, and Tensile stress.

3.1 SOFTWARE USED AND MODELING DETAILS 3.1.1 CAESAR II 5.30 The relief valves were modeled as an “Open Discharge”; with a vertical pipe discharging directly to atmosphere. The process connection is mounted on a pipe header with a welding reducing tee. This

TABLE 1 – SAMPLE OF ALLOWABLE STRESSES USED IN SCREENING STUDY MATERIAL

ALLOWABLE STRESS B31.3 TABLE A-1 (PSI)

ALLOWABLE STRESS OCCASIONAL LOAD (PSI)

YIELD STRESS B31.3 TABLE A-1 (PSI)

TENSILE STRESS B31.3 TABLE A-1 (PSI)

A 234 (tee) API 5L B (Pipe) A105 (Flange)

23,300 20,000 21,900

30,990 26,600 29,130

40,000 35,000 36,000

70,000 60,000 70,000

FIGURE 4 - SAMPLE OF THE MODEL BASIS AS DEVELOPED IN CAESAR II.

42 z CHEMICAL NEWS FEBRUARY 2015

arrangement was chosen to provide a more realistic representation of “typical” installations together with the inherent flexibility of the tee / header connection. The vent pipe is the same diameter as the outlet connection on the valve and is unsupported at the elbow with a 6’-0” long vertical vent pipe. 3.1.2 SOLIDWORKS FLOW SIMULATION SolidWorks was used to determine the physical properties along the vent pipe required to calculate the thrust and momentum forces. z Average velocity along the vent pipe z Average temperature across the outlet of the vent pipe z Average velocity at the elbow The relief valve was modeled as an orifice at the end of a converging nozzle. The orifice was set to produce the capacity calculated by the Caesar Relief Valve Symmetry analysis for the given inlet conditions using the certified orifice size. Assumptions: The following assumptions were made regarding the analysis. z Process fluid is vapor. z Manufacturer’s certified orifice diameter from National Board Relief Device Certification NB -18 were used in place of standard API orifice diameters to provide more realistic discharge flow. Crosby JOS valve orifice data was used. z Valve opening and closing time is 8.0 milliseconds. Venting will last for (1) one second. While these numbers are specific to the valve manufacturer, they appear to be typical throughout the relief valve industry. z Wind loadings were not considered. z All piping considered to be Schedule 40 carbon steel. z Relief valve inlet flanges: as required for process considerations. z Relief valve outlet flanges: ANSI RF 150#.

FIGURE 5 – SAMPLE OF VELOCITY PROFILE OUTPUT FROM SOLIDWORKS FLOW SIMULATION

1613.210 1496.916 1380.622 1264.328 1148.033 1031.739 915.445 799.151 682.857 566.563 450.269 333.975 217.681 101.387 Velocity (ft/s) Cut Plot 1: contours Flow Trajectories 1

SCREENING STUDY AND RESULTS

The objective of developing the screening tool was to provide a fairly quick method to identify relief valves in a facility that were likely to need either support or more detailed analysis to verify the adequacy of the existing installation. For the purposes of simplification, the following assumptions were made: All relief valves discharging to a closed disposal system are adequately supported for an individual release – Relief valve installations that discharge into a closed system are by definition supported by at least the point of discharge, and the purpose of this screening is to identify relief valves that require support, not to evaluate the adequacy of existing supports. Because of the complexity of a supported common disposal system, they are excluded from the scope of this study. All liquid and 2-phase relief contingencies require detailed analysis – It appears water hammer is a much larger concern for liquid and 2-phase releases than reaction forces, and is therefore an item to be

evaluated outside of reaction forces. Additionally, the dynamic effects of flashing flow create far too many variables to include in a simplistic screening. All non-standard pressure relief valve sizes require detailed analysis – While this statement may not be true for every installation, for the purposes of developing an automated tool to identify relief valves that may need detailed engineering, the obvious decision was to flag any installation that falls out of the normal range. For the purposes of this study, standard us defined by the flanged relief valve sizes as listed in API 526 and shown in Figure 6. Pressure relief valves installations can be characterized as either “Typical” or “Complex” – Because the generic screening methodology was performed using a “typical” pressure relief valve configuration (as seen in Figure 4), some method of identifying configurations with more complex piping had to be identified. For the purposes of this study, any piping configuration containing more than “charge of direction” fitting (elbow, 45° bend, CHEMICAL NEWS FEBRUARY 2015 z 43

FIGURE 6 – RELIEF VALVE SIZE CONFIGURATIONS EVALUATED PER API 526

API Orifice Letter

Inlet Diameter (in.) X Outlet Diameter (in.) 1X2 1.5X2 1.5X2.5 1.5X3 2X3 2.5X4 3X4 4X6 6X8

6X10 8X10

D E F G H J K L M N P Q R T

branch tee, etc.) were considered to be “complex,” using Figure 3 as the basis for this assumption. Pressure relief valves installed and sized for the external fire contingency only will not require reaction force evaluation – While this may seem counter intuitive, as external fire is the prevailing overpressure contingency in pressure relief systems design, it is proposed here that a pressure relief valve installation cannot be deemed adequate by a reaction force analysis in the event of an external fire. The affect heating from a fire would have on the relief device are unknown and can be more significant on the relief device installation (particularly the outlet piping and the valve body itself) than the stresses caused by the flow rate. It is proposed that a relief valve

installation failing due to reaction forces is more likely controlled by the reduction in tensile strength of the installation due to the heat input than the system design. Pressure relief valves installed and sized for the liquid hydraulic expansion contingency only will not require reaction force evaluation – Liquid hydraulic expansion cases are often nominal rates for which a small thermal pressure relief valve is installed, and in many cases possesses a capacity far greater than the required relief load. Additionally, the non-steady-state nature of a thermal expansion event tends to results in the unsustained releases that do not develop typical fluid flow characteristics. Taking these factors into account, it was determined that hydraulic expansion scenarios do not require pipe stress screening.

4.1 QUALITATIVE SCREENING The screening study was divided into two phases; one being qualitative screening against assumptions as set forth above, and the other being against the criteria set for in the base case study for each relief valve size. The qualitative step was performed stepwise as a discussion tree as represented in Table 2. Therefore, the qualitative screening step identified 32 installations that are acceptable as is, 45 that require more detailed analysis (including the potential review of why two- phase/liquid releases are being sent to the atmosphere), and 112 installations that are not covered by this screening..

4.2 QUANTITATIVE SCREENING The second stage of the screening

TABLE 2 – STEPWISE RESULTS OF DECISION TREE OF QUALITATIVE RESULTS TO DETERMINE RELIEF DEVICES THAT REQUIRE DETAILED ENGINEERING ANALYSIS. QUALITATIVE STEP Starting Point External Fire Only Thermal Expansion Only Discharge to Closed System Non Standard Device Sizes Liquid or 2-phase Relief 44 z CHEMICAL NEWS FEBRUARY 2015

RELIEF VALVES REMAINING 189 186 168 157 152 112

RELIVE VALVES REQUIRING ANALYSIS 0 0 0 0 5 45

RELIVE VALVES NOT REQUIRING ANALYSIS 0 3 21 32 32 32

was developed based on “generic” pressure relief device installations. The intention was to draw a line separating pressure relief valve installations into three categories: installations predicted to be acceptable as installed, installations that would require detailed engineering analysis to determine the adequacy of the installation, and installation that are expected to require proper piping support if a detailed engineering analysis was performed; the results of this screening are found in Table-3. This screening was performed against all 189 relief device installations rather than the remaining 112 from the qualitative screening, due to the fact that three possible results exist rather than the two previously used. A relief valve installation that was flagged as needed a detailed analysis in the qualitative step may be identified as a device that is predicted to require support irrespective of a detailed analysis. Additionally, a relief device sized only for fire may be identified as an installation requiring support even before the effects of temperature change can be accounted for. In order to perform this screening the existing pressure relief valve installations were divided into “typical” and “complex” groups as described previously. For typical installations a threshold value of 90% was used when comparing the installation to screening tool generated stresses for each relief valve size; meaning that relief valves having a relief pressure within 90% of the threshold for occasional loading were flagged as to require detailed engineering analysis and relief pressures exceeding 90% of the threshold for yield stress were flagged as expected to require support regardless of the detailed analysis. For “complex” pressure relief valve installations the threshold value was lowered to 70% of the occasional loading/yield stress limits respectfully.

TABLE 3 – QUANTITATIVE SCREENING RESULTS FOR PRESSURE RELIEF VALVE INSTALLATIONS BASED ON COMPLEXITY OF THE INSTALLATION INSTALLATION # OF REQUIRING REQUIRE TYPE INSTALLATIONS DETAILED ANALYSIS SUPPORT Typical 145 4 15 Complex 58 5 13 Total 189 9 28 The results of the quantitative screening indicate that most of the valves predicted to possible require support (28 of the 37 identified) fall into the category of those predicted to excee d the yield stress and therefore identified as installation that do not require detailed analysis to determine if support is required.

4.3 OVERALL RESULTS The results of both screening studies were combined to create an actionable list of items for ensuring the physical integrity of the

pressure relief valve installations, which can be seen in Table 4. For the facility studied, the aggregate of the two screenings predicted that 28 pressure relief installations would require support (even if a detailed engineering study were performed), and an additional 34 pressure relief valve installations would require a more detailed engineering study to determine the adequacy of the installations. Overall, more than 30% of the relief valves studied were found to require action.

CHEMICAL NEWS FEBRUARY 2015 z 45

TABLE 4 â&#x20AC;&#x201C; OVERALL RESULTS BASED ON REACTION FORCE SCREENING ACTION ITEM QUANTITY Relief Devices Requiring Support 28 Relief Devices Requiring Engineering Analysis 34 Installations Predicted to be Adequate with Respect to Reaction Forces 127 TOTAL 189

A sample from each of the three categories was taken and detailed analysis was performed to verify these results. Of that sample all relief device installations predicted to require support did indeed require support to avoid exceeding the yield stress; likewise all sampled installations predicted to be adequate were found to be adequate. Of the sampled devices predicted to require detailed engineering analysis, all but one was resulted in exceeding the yield stress, and that installation did exceed the allowable stress. The purpose of this study was to provide a solid screening tool in order to prevent the cost of performing

detailed engineering evaluation on every relief device installation, and the end result proved to succeed at this. In some cases, it may be more cost effective to simply support pressure relief valve installations for which a detailed study is suggested rather than perform the detailed study.

CONCLUSIONS

Overpressure protection analysis has evolved significantly since the inception of the PSM standard, but the mechanical stress applied to the piping during overpressure events appears to have been for the most part overlooked. Criteria for

identifying pressure relief device installations which may exceed the allowable stress levels were developed from these systems. This criteria was then evaluated against a petrochemical facilityâ&#x20AC;&#x2122;s pressure relief systems and benchmarked for its validity as a first pass tool to identify potential installations that may require physical supports. For the facility studied, ~2/3 of the pressure relief valve installations were predicted to be adequate with respect to reaction forces with the remaining installations being broken into two categories, those requiring support, and those requiring further analysis. Proving that in practice, a significant percentage of pressure relief valve installations do not meet the desired structural integrity when considering reaction forces. This study demonstrates a screening tool that allows plants to focus resources on the relief valve installations most likely to fail due to reaction forces.

REFERENCES

I. Relief System Reaction Forces in Gas and Two-phase Flow, 1991, 25th Annual AIChE Loss Prevention Symposium II. Emergency Relief System Design Using DIERS Technology, 1992, New York, NY, American Institute of Chemical Engineers III. Thrust Force Calculations for Pressure Safety Valves, 2006, Process Safety Progress, 203-213 IV. Pipe Stress Engineering, 2009, New York, NY, American Society of Mechanical Engineers V. American Petroleum Institute, API Standard 520, Sizing, Selection, and Installation of Pressure-relieving Devices in Refineries, API VI. American Society of Mechanical Engineers, 2004, B31.3 Process Piping Guide, American Society of Mechanical Engineers VII. CCPS - Center for Chemical Process Safety, 1998, Pressure Relief and Effluent Handling Systems, New York, NY, American Institute of Chemical Engineers

AUTHORS: JASON F. WHITE P.E., Smith & Burgess LLC 5700 NW Central Dr, Ste. 301 Houston, TX 77092; Jason.White@smithburgess.com BILL FRENK, Frenk Water Technologies LLC; Frenk.water.technologies@gmail.com; bfrenk@wtwater.net DUSTIN SMITH P.E., Smith & Burgess LLC 5700 NW Central Dr, Ste. 301 Houston, TX 77092; Dustin.Smith@smithburgess.com COURTESY: MR. SCOTT BERGER, Executive Director, Center for Chemical Process Safety, AIChE, Three Park Ave, New York, NY 10016, USA, http://www. ccpsonline.org. Tel: +1.646.495.1370, fax: +1.646.495.1504, mob: +1.609.462.505 & 98335 44780 (India). The Center for Chemical Process Safety (CCPS) was founded by the American Institute of Chemical Engineers in 1985 to give engineers the tools they need to prevent further accidents like Bhopal. Since that time, CCPS has published more than 70 books on all aspects of process safety and established a dynamic university curriculum for process safety. CCPS is supported by the contributions and voluntary participation of more than 80 companies around the world. For more information about CCPS, please visit www.ccpsonline.org or contact ccps@aiche.org.

46 z CHEMICAL NEWS FEBRUARY 2015

BOOKSHELF

CRUDE OIL PRICE FALL Will the euphoria for India continue?

SWAMINATHAN VENKATARAMAN Nandini Consultancy Centre Pvt. Ltd. December 2014. Price: Rs. 500/-

his slim volume, of just 36 pages, is more like a handbook, coming with many figures and tables and quite good scenario building of crude prices cycles and reasons for that. Its first chapter deals with past trends of crude prices, its ups and downs, after remaining steady or declining slightly from 1947 to 1973/74. It was then that the first spike came from being less than $20 per barrel to about $42 and then in 1979/81 to $ 70 per barrel. Its fall started subsequently, reaching again $20 pbl and finally to $18 in the recession years of 1998/99. The price subsequently kept rising till it reached more than $90 till 2007/08, when worldwide recession hit again to bring it down to $40 in 2009 and then went up again to more than $110 in 2012/13. Finally, yet again, as we have witnessed recently, it fell to reach $50 per barrel. The third chapter lists some of the 48 z CHEMICAL NEWS FEBRUARY 2015

reasons why in recent time, crude prices has started falling. The most important reason is of course Shale Oil & Gas production, which suddenly increased the supply of fossil fuels. Author estimates drilling of almost 20,000 new wells in USA in past just four to five years. This has reduced the imports of crude oil for USA. However, the large producers of OPEC continued to produce oil unabated resulting in almost a daily oversupply of 1 Million barrels. Further, the weak economy world over has reduced the consumption of oil and use of renewable energy source, however, small today has exacerbated the problem of oversupply. Hence the drop is seen in crude price. There is no doubt that exploration is becoming increasingly costly. The fracking technology for shale oil, even though, has given a big boost to US economy and new refineries and petrochemical plants are coming up after many years, is also under increased criticisms due to possibility of environmental concerns like water contamination and seismic activities. Will the price continue to be low in 2015 and in foreseeable future?

What are the strategies of producers going to be? How long will USA continue to import oil? What will be China’s strategy? With falling prices, China has already started building reserves. How about India? Some of these and more questions are raised and alluded to in the rest of the pages. What is going to be impact on this price decrease on Indian Chemicl Industry? Though less than 10% of oil is used for making chemicals after refining, already the large scale polymers like Polypropylene has shown lowering of price. Will this help in increasing the consumption? Bringing more manufacturers to the market? Will it help in generating employment? While crude price fall is welcome, India, as it did before, should not lose focus on its other strength like abundant solar power, long coastline giving high wind, huge possibility of growing algae and other aspects that can be rich source of energy and chemicals. This book ‘Crude Oil Price Fall’ is a very good start for further dialogue for India’s growing economy. [REVIEW BY DR. PRAKASH TRIVEDI]

CHEMICAL NEWS FEBRUARY 2015 z 49

PROJECTS INVESTMENT IN CHEMICALS SECTOR Cost in Rs. Crore

UREA

Promoter: MATIX FERTILISERS & CHEMICALS LTD. Cost: 5,000.00 Industry: Nitrogenous Fertilisers Completion: NA Location: Bardhaman, West Bengal Matix Fertilisers & Chemicals is setting up an urea unit (Phase-II) with a capacity of 1.3 million tpa at Panagarh in Bardhaman district of West Bengal. Work underway. Contact: Matix Fertilisers & Chemicals Ltd., Poonam Chambers, B Wing, 5th Floor, Dr.Annie Besant Road, Mumbai, Maharashtra 400018. 50 z CHEMICAL NEWS FEBRUARY 2015

Tel: (022)-61167000, Fax: 61167011.

SPECIALITY CHEMICALS

Promoter: NEOGEN CHEMICALS LTD. Cost: 100.00 Industry: Chemicals Completion: NA Location: Bharuch, Gujarat Neogen Chemicals plans to set up a speciality chemicals unit with a capacity of 5,000 tpa at Dahej SEZ in Bharuch district of Gujarat. Land acquired. Work to commence by October 2015. Contact: Neogen Chemicals Ltd.,

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Promoter: ACME PHARMACEUTICALS LTD. Cost: 40.00 Industry: Drug Formulations Completion: April 2015 Location: Ahmedabad, Gujarat Acme Pharmaceuticals is setting up an injectables unit at GIDC, Sanand in Ahmedabad district of Gujarat. Work underway. Contact: Acme Pharmaceuticals Ltd., Office No.203, Parshwa Tower, Besides Pakwan II, SakhejGandhinagar Highway, Ahmedabad, Gujarat 380015. Tel: (079)-26859022 / 33 / 55

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DRUG FORMULATIONS

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Data source: ProjectsToday

Promoter: KABRA DRUGS LTD. Cost: 20.00 Industry: Drug Formulations Completion: February 2016 Location: Indore, Madhya Pradesh Kabra Drugs is expanding drug formulations capacity at Sanwer Road in Indore district of Madhya Pradesh. Work underway. Contact: Kabra Drugs Ltd., 26 Sanwer Road, Sector-A, Industrial Area, Indore, Madhya Pradesh 452015. Mobile No: +91-0-98-260-41139

BULK DRUGS

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Completion: NA Location: Nizamabad, Telangana Basis Laboratories plans to set up a bulk drugs unit at Bhiknoor in Nizamabad district of Telangana. Contact: Basis Laboratories, #12-13-521/3, 1495, Survey No.14, Nagarjuna Nagar, Tarnaka, Hyderabad, Telangana 500017.

CHLORINATED PARAFFIN WAX

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Kemplast Industries plans to set up chlorinated paraffin wax unit with a capacity of 150 tpm in Gandhinagar district of Gujarat.Work to commence by March 2015. Contact: Kemplast Industries , S No 1067/B, Kadi Road, Chhatral, Tal- Kalol, Gandhinagar, Gujarat 382729. Tel: (02712)-233548

INJECTABLES

Promoter: DENDROIDS LIFE SCIENCES PVT. LTD. Cost: 100.00 Industry: Drug Formulations Completion: NA Location: Ranga Reddy, Telangana Dendroids Life Sciences plans to set up an injectables unit with a capacity of 5 crore numbers per year at Shamirpet in Ranga Reddy district of Telangana. Land acquired. Contact: Dendroids Life Sciences Pvt. Ltd., 8-2-684/247, MLA Colony, Road No.12, Banjara Hills, Hyderabad, Telangana. Tel: (040)-23552744 Email: projects.dls@gmail.com

For a free trail access please log on to www.projectstoday.com CHEMICAL NEWS FEBRUARY 2015 z 51

52 z CHEMICAL NEWS FEBRUARY 2015

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profit

ECONOMIC REVIEW Compiled by MR. BIPIN JHA, Senior-Executive-Corporate, Excel Industries Ltd.

According to the latest publication “Global Economic Prospects” of World Bank, India is expected to become the fastest-growing big economy in the world in the year 2017, edging past China. It is set to register a 7% rise in GDP in 2017 compared with 6.9% for China. India will recover to 6.4% in the current calendar year itself on the back of higher export growth and bolstered investor confidence. Global growth is expected to increase to 3.0% in 2015 from 2.6% 54 z CHEMICAL NEWS FEBRUARY 2015

in 2014 and further increase to 3.3% in 2017.

The Centre’s Indirect tax collections at Rs 3,77,648 crore increased by 6.7 per cent during April-December 2014-15 compared to Rs 3,54,049 crore during the corresponding period last year. Excise collections increased by 1.6 per cent to Rs 1,19,719 crore from Rs. 1,17,887 crore during AprilDecember 2013-14. Customs collections increased by 9.7

200 per cent to Rs 1,38,529 crore from Rs. 1,26,285 crore during April-December 2013-14. Service tax collections increased by 8.7 per cent to Rs 1,19,400 crore during April-December 2014-15 from Rs. 1,09,887 crore during April-December 2013-14.

3 4

The Reserve Bank of India (RBI) cut the repo rate by 25 basis point from 8 percent to 7.75 percent with immediate effect from 15 January 2015. The cash reserve ratio (CRR) remains unchanged at 4.

The eight core infrastructure industries growth - crude petroleum, petroleum products, coal, electricity, cement, Natural Gas, Fertilizers and finished steel witnessed growth of 4.6% in AprilNovember 2014 compared to growth of 4.1% registered during April-November 2013. During April-November 2014, crude oil production declined by 0.8% as compared to decline of 0.9% in April-November 2013. Petroleum refinery products declined by 0.5% in April-November 2014 as against the increase of 2.4% during AprilNovember 2013. Coal recorded growth of 9.4% compared to growth of 1.6% in April-November 2013. Cement registered growth of 8.5% as compared to growth of 4% recorded in April-November 2013. Electricity achieved growth of 10.4% in April-November 2014 compared to growth of 5.3% in April-November 2013. Finished steel recorded growth of 2.2% in April-November 2014 as compared to growth of 11.7% during the corresponding period in 2013. Natural gas declined by 5.3% in AprilNovember 2014 as compared to decline of 15.5% in AprilNovember 2013. Fertilizers registered negative growth of 1.3% in April-November 2014 compared to 2.5% growth posted during April-November 2013.

Data on Index of Industrial Production (IIP) with the base year 2004-05, released by the CSO show that industrial production increased by 3.8% in November 2014 as compared to decline of 1.3% in November 2013. The manufacturing sector, which accounts for about 80% of the weightage in the IIP, increased by 3% in November 2014 as against the decline of 2.6% recorded in November 2013. The mining sector increased by 3.4% in November 2014 as compared to increase of 1.6% in November 2013. The Electricity recorded growth of 10% as compared to growth of 6.3% during November 2013. During April-November 2014, industrial production increased by 2.2% as compared to 0.1% growth recorded during April-November 2013. The manufacturing sector posted growth of 1.1% in April-November 2014 as compared to decline of 0.4% in April-November 2013. The mining sector recorded growth of 2.5% in April-November 2014 as compared to decline of 2.1% during April-November 2013. The Electricity witnessed growth of 10.7% as compared to growth of 5.4% during April-November 2013.

Industrial Sector

BKJ : 15.1

Index of Industrial Production : General

(Base : 2004-05 = 100)

180

2013-14

2014-15

160

2012-13

140 120

220 200

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Industrial Sector

BKJ : 15.1

Manufacturing : Production Index

(Base : 2004-05 = 100)

180 160

2012-13 2013-14

2014-15

140 120

220 200

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Industrial Sector

BKJ : 15.1

Index of Industrial Production : Electricity

(Base : 2004-05 = 100)

2014-15

2013-14

180 160

2012-13

140 120 100

200 180

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Industrial Sector

BKJ : 15.1

Basic Goods : Production Index

(Base : 2004-05 = 100)

2014-15

2013-14

160 140

2012-13

120 100

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

CHEMICAL NEWS FEBRUARY 2015 z 55

Going by the use-based classification of IIP data, in November 2014, the production of Capital Goods segment of the manufacturing industries rose by 6.5% as compared to meager growth of 0.1% in November 2013. Intermediate Goods production increased by 4.3% in November 2014 as compared to increase of 3.7% in November 2013. Basic Goods sector registered growth of 7% as compared to growth of 2.7% in November 2013. Consumer Durables declined by 14.5% in November 2014 as compared to decline

410 360 310

Industrial Sector

BKJ : 15.1

Capital Goods : Production Index (Base : 2004-05 = 100)

2014-15

2013-14

2012-13

260 210 160

180

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Industrial Sector

BKJ : 15.1

Intermediate Goods : Production Index (Base : 2004-05 = 100)

2013-14

2014-15 140

100

360 330

2012-13

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Industrial Sector

BKJ : 15.1

Consumer Durables : Prod. Index

(Base : 2004-05 = 100)

200

160

120

2014-15

210 180

On the foreign trade front, India’s exports during December 2014 valued at $25.4 bln. declined by 3.8% from its level of $26.4 bln. in December 2013. Imports during the month at $34.8 billion fell by 4.8% from its level of $36.6 bln. in December 2013. India’s cumulative exports during April-December 2014-15 valued at $241.15 bln. increased by 4% from its level of $231.8 bln. in April-December 2013-14. Imports during the period at $351.2 billion increased by 3.6% from its level of $338.9 bln. in April-December 2013-14. Oil import bill in April-December 2014-15 was lower by 4.7% from

Industrial Sector

BKJ : 15.1

Consumer Non-durables : Prod. Index (Base : 2004-05 = 100)

2014-15 2013-14

140

270 240

ACCORDING TO THE INDUSTRYWISE IIP DATA, THE CHEMICAL INDUSTRY DECLINED BY 1.4% IN NOVEMBER 2014. DURING APRILNOVEMBER 2014 THE INDUSTRY REGISTERED NEGATIVE GROWTH OF 1.8% FROM APRIL-NOVEMBER 2013.

180

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of 21.7% in November 2013. Consumer Non-durables witnessed growth of 6% as compared to rise of 2.2% in November 2013. During April-November 2014, Capital Goods represented growth of 4.9% as compared to decline of 0.1% in April-November 2013. Intermediate Goods production increased by 1.8% in April-November 2014 as compared to growth of 2.8% in April-November 2013. Basic Goods sector registered growth of 7.5% as compared to growth of 1.2% in April-November 2013. Consumer Durables declined by 15.9% in April-November 2014 compared to decline of 12.6% during AprilNovember 2013. Consumer Non-durables during AprilNovember 2014 increased by 1.9% as compared to rise of 6.2% during April-November 2013.

2013-14 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

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2012-13

100 80

Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Industrial Sector BKJ : 15.1 20 18 Chemicals : Production 16 (% change over previous year) 14 2013-14 12 10 8 6 4 2 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar -2 2012-13 -4 2014-15 -6 -8 -10 the level of oil imports in April-December 2013-14. Non-oil imports in April-December 2014-15 were higher by 8.3% from non-oil imports in April-December 2013-14. The trade deficit for April-December 2014-15 was estimated at $110.05 billion, higher than the deficit of $107.08 billion during the corresponding period in 2013-14.

India’s foreign exchange reserves declined by $471 million to $319.23 billion for the week ended 2 January 2015. The foreign currency assets decreased by $863 million to $294.53 billion. The value of gold reserves increased by $392 million to $19.37 billion compared to previous week. The value of special drawing rights (SDRs) declined by $0.7 million to $4.18 billion. India’s reserve position with the International Monetary Fund (IMF) was down by $0.2 million to $1.13 billion.

THE TOTAL EARNINGS OF INDIAN RAILWAYS DURING APRIL-DECEMBER 2014 WERE RS. 114656.13 CRORE COMPARED TO RS. 101856.45 CRORE DURING THE SAME PERIOD LAST YEAR, REPRESENTING A RISE OF 12.57 PER CENT.

The annual rate of inflation, based on monthly WPI, stood at 0.11% (provisional) for the month of December 2014 (over December 2013) as compared to 0.0% (provisional) for the previous month and 6.40% during the corresponding month of the previous year.

35000

External Sector Exports

2012-13

BKJ : 15.1

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30000 (Million Dollars) 25000 20000 15000 10000 5000 0

50000 40000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

External Sector

Imports

2012-13

BKJ : 15.1

2013-14

2014-15

(Million Dollars)

30000 20000 10000 0

400

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

External Sector Foreign Exchange

2012-13

BKJ : 15.1

2013-14

2014-15

350 (Billion Dollars) 300 250 200 150 100 50 0

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

ALL INDIA CONSUMER PRICE INDEX NUMBER FOR INDUSTRIAL WORKERS (CPI-IW) ON BASE 2001=100 FOR THE MONTH OF NOVEMBER 2014 REMAINED STATIC AT 253. CHEMICAL NEWS FEBRUARY 2015 z 57

NEWS FROM MEMBERS SRF ACQUIRES GLOBAL DUPONT DYMEL HFC 134A PHARMA BUSINESS

Leading manufacturers of refrigerants in India, SRF Ltd signed a binding agreement on 31st December 2014 to purchase the global 134a regulated medical pharmaceutical propellant business from DuPont, a world leader in innovation and science. This DuPont Fluorochemicals business is part of the Performance Chemicals segment which DuPont anticipates separating by mid -2015. The acquisition comes into force with immediate effect. Under the transaction, SRF will own the DuPont Dymel brand and will also receive the technology and know-how for setting up its own ‘current Good Manufacturing Practices’(cGMP) facility for manufacturing HFC 134a Pharma grade. DuPont and SRF have entered an agreement under which DuPont will supply SRF with product until SRF’sproduction facility is approved. 58 z CHEMICAL NEWS FEBRUARY 2015

Commenting on the transaction, Ashish Bharat Ram, Managing Director, SRF Ltd. stated, “This acquisition is in sync with our long term strategy to move up the value chain and will enable us to enter the niche pharma product segment. The growth in the Metered Dose Inhalers (MDI) sector is expected to be reasonably robust in the years to come and with India playing a major role in this sector we are ideally positioned to take benefit of this opportunity. This will also offer great synergy with our Existing HFC plants going forward.” Providing a rationale for the transaction Kathryn K. McCord, Global Business Director, DuPont Fluorochemicals, said, “DuPont is making this move to enable a stronger focus on developing and commercializing the company’s new family of products.” She further added, “We believe this business is an excellent fit for SRF, which already supplies to the pharmaceutical industry.” SRF is the only Indian manufacturer of HFC 134a and also has the rare distinction of developing the product with indigenous

technology. For SRF, this transaction provides immediate access to DuPont’s technology, brand and customers, thus enabling an instant entry into the niche pharmaceutical segment at a global level. SRF has two manufacturing facilities for HFCs in India. Through this transaction SRF would not only utilize its existing HFC 134a facilities better, but would also become one of the world’s few suppliers of the pharma grade of HFC 134a, a product with stringent purity and handling parameters, and superior margins. In the long run, the access to the pharma segment allows SRF to move up the value chain and cater to the growing demand for the pharma grade HFC 134a, which, as per the global health standards, is approved as a long-term environment friendly alternative propellant for a growing number of medical applications. Additionally, with the possibility of some drugs going off patent by 2019, it is likely that India will witness a significant growth in the demand of pharma grade of HFC 134a and SRF, as the only Indian supplier of the product, looks well positioned to reap the benefits.

JUBILANT RECEIVES USFDA NOD FOR IMMUNOSUPPRESSANT & MIGRAINE DRUGS The company has received ANDA approval for mycophenolate mofetil and rizatriptan

Jubilant Life Sciences Ltd has received abbreviated new drug application (ANDA) final approval from the US Food and Drug Administration (US FDA) for mycophenolate mofetil (an immunosuppressant drug) and rizatriptan, which is used for treating migraine. Jubilant Cadista Pharmaceuticals Inc, the company’s US subsidiary, has received the approval for mycophenolate mofetil USP, 250 mg capsules and 500 mg tablets, while Jubilant Generics Ltd was granted approval for rizatriptan tablets 5 mg and 10 mg. Mycophenolate mofetil tablet is the generic version of Cellcept (of Roche), an immunosuppressant which is used to help prevent organ rejection in transplants. As per IMS, the current annualised US market size for mycophenolate mofetil USP, 250 mg capsules and 500 mg tablets is $ 245 million. Rizatriptan tablet is the generic version of Maxalt (of Merck), used for the treatment of migraine. The current annualised US market size for rizatriptan tablets 5 mg and 10 mg is $70 million, according to IMS. As on September 30, 2014, Jubilant Life Sciences had a total of 781 filings for formulations of which 322 have been approved in various regions globally. This includes 72 ANDAs filed in the US and 46 dossier filings in Europe.

PRAJ INDUSTRIES BAGS ETHANOL PLANT CONTRACT IN UGANDA The contract for Uganda's largest ethanol plant was awarded to the company by Kakira Sugars Pune-based Praj Industries has received a contract from Kakira Sugars, an Uganda-based producer of sugar and power, for 60,000 litre per day (LPD) project for production of fuel ethanol and premium grade extra neutral alcohol (beverage alcohol). Kakira Sugars is part of the diversified Madhvani Group, one of the largest private-sector group in East Africa. The plant will process cane molasses from the Kakira Sugar Mill. Praj Industries will provide key technologies for fermentation, distillation, wastewater treatment including biomethanation followed by biocomposting. The project will be supplied on EPC basis including boiler, turbine, water treatment plant, laboratory, auxiliary packages, etc. All of the steam required and 50-60 percent of the electricity consumed by the complex will be generated by the distillery plant itself. Effluent generated by the plant will be converted into biocompost for renewing the soil fertility, making this one of the most sustainable distilleries. Effluent generated by the plant will be converted into biocompost for renewing the soil fertility.

Pramod Chaudhari, executive chairman, Praj Industries, said, “We are happy to partner Kakira Sugars in their environmentally sustainable project. This project reinforces our commitment towards environmentally sustainable solutions.” Praj has been present in Africa for last two decades by way of providing solutions for ethanol, brewery and wastewater treatment systems. “We have a significant market share in Africa,” added Chaudhari. Praj recently commissioned Africa’s first RSB (Roundtable on Sustainable Biomaterials) certified 80,000 m3 of fuel grade ethanol plant at Sierra Leone, Africa. The RSB standards define the criteria for reduction of green-house gases in compliance with Renewable Fuels Directive, applicable to biofuels entering the EU market. The fuel grade ethanol produced from this plant will be exported to the European Union. This plant is for Addax Bioenergy SL.

BASF INDIA LIMITED AND CITIZENS FOUNDATION FOR BETTER INDIA LAUNCH PROGRAM TO SUPPORT SWACH BHARAT INITIATIVE IN DAHEJ Commitment of Rupees 50 lakhs for the first project phase To build toilets in private households and for the community and establish a waste management system Support

ESSAR OIL COMMISSIONS SECOND HYDROGEN MANUFACTURING UNIT The unit with a capacity of 105 Knm3/hr has been commissioned at its Vadinar refinery Essar Oil Ltd, a subsidiary of Essar Energy, has commissioned second hydrogen manufacturing unit (HMU) at company’s Vadinar refinery, Gujarat. The HMU with a capacity of 105 Knm3/hr has been commissioned at Vadinar refinery of Essar Oil in Gujarat which would provide flexibility and reliability to overall refinery operations, according to Essar Oil’s statement to BSE. Essar Oil had commissioned the first hydrogen manufacturing unit (HMU) at its Vadinar refinery in January 2012. HMU helps produce and supply 99.9% pure hydrogen gas to the diesel hydrotreater (DHDT) and vacuum gas oil hydrotreater (VGO-HT) for the hydrotreating process. CHEMICAL NEWS FEBRUARY 2015 z 59

government’s Swach Bharat program to improve sanitation in India BASF India Limited and the non-profit organization Citizens Foundation For Better India (CFBI) launched a program to aid better sanitation and waste management facilities in Dahej. As committed by BASF during the inauguration of the Dahej site, the company will dedicate rupees 50 lakhs to aid this sanitation drive. The partnership will entail building toilets for private households and the community in and around the Company's site at Dahej. In addition, a waste management system will be established that comprises of segregation, collection, disposal and recovery of waste at the local level. The project is expected to complete by April 2015. The program witnessed the presence of the representatives of the local community including the Member of the Legislative Assembly (MLA), the Sarpanch of Dahej, and the Taluka Development Officer. Dedicated communication and educational measures will be launched to strengthen the community’s awareness and capacities towards Water, Sanitation and Hygiene (WASH) as well as waste management. The waste management and sanitation program has been initiated by BASF India and jointly developed with CFBI. The implementation of the program will be managed by CFBI in close cooperation will local stakeholders. “With our sanitation and waste management program for the Dahej community, BASF India will extend its support towards the government’s Swach Bharat initiative to make toilets available to all Indians. We share the government’s strong belief that proper sanitation will have a major positive impact on the quality of life of our nation,” said Raman Ramachandran, Chairman and Managing Director, BASF India Limited and Head of BASF in South Asia. 60 z CHEMICAL NEWS FEBRUARY 2015

“BASF is committed to the social development of the community around our manufacturing site in Dahej. Our sanitation and waste management program will help make Dahej a cleaner and more hygienic place to live.” said Jayant Bahekar, Site Head - Dahej, BASF India Limited. “Representatives of the local community will be important partners and ambassadors in the implementation of the program. In addition, we will recruit volunteers to be Community WASH Educators.” said Harshit Sharma, Team Lead at Citizens Foundation for Better India said.

GSFC SEEKS CHANGES IN ENVIRONMENTAL CLEARANCE FOR SIKKA DAP EXPANSION Gujarat State Fertilizers & Chemicals (GSFC) has urged Ministry of Environment and Forests (MoEF) to make two important amendments to the environmental clearance (EC) dated 9th October 2014 for its DAP expansion project at Sikka. The first issue relates to restatement of ammonia capacity of three storage tanks and their operational norms, which are crucial for viable and safe operations of the facilities. The second request relates to allocation of funds for corporate social responsibility (CSR)/enterprise social commitment (ESC) activities.

BASF LAUNCHES YEAR-LONG, GLOBAL TOUR TO BOOST COCREATION z Creator Space™ tour celebrates 150 years of BASF in six locations worldwide z Addressing challenges of smart energy, food and urban living z First stop in Mumbai, India, focuses on water z Week-long event includes exclusive summit, cultural events, contests and workshops BASF will connect people and ideas in six locations worldwide at

the Creator Space™ tour, a year-long, global event series aiming to address the challenges of smart energy, food and urban living. The first stop, in Mumbai, India, will take place from January 16 to 23, 2015, with a focus on water sustainability. The tour is part of BASF’s global co-creation program, Creator Space. Led by local, interdisciplinary, internal and external teams from

areas such as architecture, art, design, science, government, technology, and sustainability, each city stop in the Creator Space tour will explore a locally relevant topic. Following the first stop in Mumbai, the tour will move to Shanghai, New York, São Paulo, Barcelona and Ludwigshafen. Topics will range from sustainable consumption, to housing of the future, to intelligent solutions along the energy value chain. The Creator Space tour stop in Mumbai will take place at Chhatrapati Shivaji Maharaj Vastu Sangrahalaya (CSMVS), formerly the Prince of Wales Museum of Western India. “The 150-year history of BASF shows that chemistry is an enabler for new ideas and solutions. In our anniversary year more than ever, we are connecting people and ideas to make meaningful contributions to society in accordance with our corporate purpose: ‘We create chemistry for a sustainable future,’” said Sanjeev Gandhi, member of the Board of Executive Directors, BASF SE. First tour stop in Mumbai focuses on water Access to clean water is one of the most pressing issues in the rapidly growing metropolis of Mumbai. Almost a fifth of the world’s population lives in India, but the country has access to only 4% of the world’s fresh water resources. Is it possible to improve access to safe affordable water through changes in technology, policy and behavior? Ideas about how to improve water accessibility, water quality, and policy and behavior will be developed in customer innovation workshops, jamming sessions with employees and the public. At the Creator Space tour in Mumbai, more than 250 water experts, business professionals, NGOs, academia and interested citizens with different perspectives and expertise will discuss solutions to this question and other important challenges. Sessions at Creator Space

Mumbai will include a variety of activities, with diverse groups of participants being invited, ranging from business and academia to government, NGOs and society in general. Advance registration is required for all sessions: z Unveiling of a unique Water Installation by renowned Indian artist Brinda Miller z Creator Space Summit, a top-tier expert summit bringing together specialists in water technology, water policy, water quality and water consumption behavior for intensive collaboration on solutions for Mumbai’s water challenge z Collaborative project with Save the Children, a global nongovernmental organization, using the innovative Empathic Design methodology to tackle issues in the space of water z Awards ceremony for the “Wat(er) is the matter?” short film competition and an inter-school drawing competition z Public jamming session on

better ways to manage organic waste and save water through composting z Employee jamming session on responsible water consumption z Innovation workshop on industrial waste water management with customers and additional stakeholders from industry and public administration z Research and development event fostering dialogue between young scientific talent and experienced researchers from academia and industry About Creator Space™ BASF will host activities and events around the world in 2015 to celebrate and to co-create – bringing in the ideas and collaborative energy of BASF employees, customers, scientists and members of the community. In addition to the Creator Space tour, key elements of the Creator Space program include Creator Space online, a global internet platform, and three Creator Space science symposia, in Ludwigshafen (smart energy),

RELIANCE INKS PACT WITH NRDC FOR SUPERABSORBENT HYDROGELS TECHNOLOGY This hydrophilic super absorbent polymer was indigenously developed by the Indian Agricultural Research Institute to meet the requirements of water productivity in agriculture Reliance Industreis Ltd (RIL) and National Research Development Corporation (NRDC), under the Department of Scientific & Industrial Research (DSIR), have signed an agreement for commercialisation of a novel superabsorbent hydrogels technology. This involves a novel hydrophilic super absorbent polymer indigenously developed by the Indian Agricultural Research Institute, New Delhi, to meet the requirements of water productivity in agriculture. “The scientists had successfully demonstrated the potential of resolving the problem of poor water use efficiency in agricultural crops. Besides, improved nutrient use efficiency, an array of other benefits have been achieved by using this product,” said DSIR in a press release. NRDC is about to execute another agreement with a Chennai based company for the transfer of the same technology. NRDC has already executed agreements with five companies. Hydrogel absorbs a minimum of 350 times its weight of pure water. It exhibits absorbency at high temperatures suitable for semi-arid and arid regions. Besides, low rate of application it also improves physical properties of soil such as porosity, aggregate stability and hydraulic conductivity. “No undesirable effect on the crops raised in the fields treated with hydrogel has ever been observed or reported by the experimenters or the end users, the farmers,” added the release. CHEMICAL NEWS FEBRUARY 2015 z 61

Chicago (food) and Shanghai (urban living). More information under: http:// www.creator-space.basf.com

LANXESS BUSINESS UNIT ADVANCED INDUSTRIAL INTERMEDIATES GAINS NEW STRENGTHS / SETS NEW DIRECTION

LANXESS, the global specialty chemicals company is currently undergoing strategic realignment within the organization as part of its ‘Let’s LANXESS Again’ project. One of its largest business units Advanced Industrial Intermediates (AII), which until now catered to intermediates for agrochemicals, pharmaceuticals, dyes, coatings among others, will now also take over the antioxidants and accelerators businesses previously managed by the Rubber Chemicals (RUC) business unit at LANXESS. The restructured business unit AII's core business will continue to be the production and global marketing of high-grade industrial chemicals. The expansion of its current product portfolio through the addition of the business unit RUC's antioxidants and accelerators fits in very well with

62 z CHEMICAL NEWS FEBRUARY 2015

the existing business model. This realignment will allow leveraging the synergies between the two erstwhile BUs, build a competitive sales structure with improved efficiencies, allow competitive access to raw materials and utilities, enable sharing of resources and optimizing costs. With its networked global production organization and marketing operations, the AII business unit has been highly successful in the past, even though its products are in an environment of stiff competition from the products of other suppliers. “In the AII business unit we operate a chemical business that has long-term perspectives. This is based largely on sustainable customer relations and trust built up over many years in the markets in question. Similarly, we want to develop strong relations with the customers of antioxidants and accelerators previously served by BU RUC. It is very important to me that we maintain long-term customer relationships in the future as well. We would continue to leverage these relationships and our market experiences for reaching out to customers with the rubber chemicals products” said Mr. Hubert Fink, Head – Business Unit, Advanced Industrial Intermediates, LANXESS AG.

“I believe that we have an excellent example of efficient, competitive and sustainable manufacturing with the BU AII’s manufacturing operations in Nagda, Madhya Pradesh. Under the realm of BU AII, the RUC production assets in Jhagadia will also be run in a similar manner. Thus, we now have a wider basket of products to offer to our customers in India and overseas. Together with these assets, an expanded portfolio and our capabilities, I am optimistic that we will be able to leverage the synergies for profitable growth”, added Mr. Neelanjan Banerjee, Senior Vice President – BU AII and Senior Executive Director, LANXESS India.

TATA CHEMICALS TO FOCUS ON SPECIALITY FERTILISERS Tata Chemicals will focus on producing fertilisers that are totally decontrolled and do not involve any subsidy element as it leads to increase in finance cost. “At present, we have no plans at all for any expansion or any new capacity in fertiliser segment where subsidy is involved, as it leads to increase in finance costs. For our future plans we are looking at speciality fertilisers,” informed Tata Chemicals’ Managing Director, Mr. R. Mukundan. Tata Chemicals is engaged in various business including salt, pulses, water purifiers, soda ash, fertilisers and various chemicals. In fertilisers, Tata Chemicals produces urea in Babrala in Uttar Pradesh with a capacity of about 1-mtpa and P&K fertilisers in Haldia in West Bengal with capacity of about 1.25-mtpa. Speciality fertilisers like calcium ammonium nitrate are not controlled by the government, whereas urea is controlled and its price is fixed by the government at Rs. 5,360 per tonne. The difference between cost of production and selling price of urea is paid as subsidy. In case of P&K fertilisers the companies are free to decide the price, while subsidy is fixed by the government. z

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NEWS NATIONAL SAFEGUARD DUTY SODIUM CITRATE IMPORTS

MANGALORE CHEMICALS RESUMES UREA PRODUCTION

The Finance Ministry. Government of India has imposed safeguard duty on sodium citrate imports into India. â&#x20AC;&#x153;The increased imports of sodium citrate into India has caused and threatened to cause further serious injury to the domestic producers of sodium citrate, necessitating the imposition of safeguard duty on imports of Sodium Citrate into India, and accordingly has recommended the imposition of safeguard duty on imports of the subject goods into India,â&#x20AC;? the Ministry said in a notification. For the period from December 31, 2014 to December 30, 2015, the revenue department has imposed safeguard duty of 30 per cent. All sodium citrate imports between December 31, 2015 and December 30, 2016 will attract safeguard duty of 20 per cent.

This follows the decision of the centre government to continue the payment of subsidy for urea plants using naphtha as feedstock The UB Group-promoted Mangalore Chemicals and Fertilizers Ltd has re-started manufacturing operation at its urea plant from January 07, 2015. The company, which had shut down operation of the plant since October 1, 2014, resumed production after the government notified extension of subsidy for 100 days on production of urea using naphtha as feedstock, according to a PTI report. The government had stopped the extension of subsidy to the naphtha-based urea plants as cost of production of urea was as high as Rs 43,000 per tonne compared to Rs 18,000 per tonne using gas as feedstock. Following this, Mangalore

64 z CHEMICAL NEWS FEBRUARY 2015

Chemicals, SPIC Tuticorin and Madras Fertilisers Ltd had stopped the production of urea in October last year after subsidy payments were stopped. Addressing media in New Delhi yesterday, Ananth Kumar, Minister of Chemicals and Fertilizers, said, that all these three companies have now resumed production, following the government's decision to continue the payment of subsidy for urea using naphtha as feedstock.

DOMESTIC REGULATORS FOR US-FDA INSPECTIONS The frequent censure of Indian drug-makers by overseas regulatory agencies has driven the government to request the US Food and Drug Administration (FDA) to allow its officials during inspections of domestic pharma units. Many Indian pharmaceutical companies have faced regulatory

action by the US-FDA in the recent past for alleged violation of ‘good manufacturing practices’ and other irregularities at drug facilities. In many cases, these companies have been barred from selling their drugs in the US and other countries, although Indian firms account for a significant share of generic drug market in those places. “US-FDA’s increased inspections and observations (under 483) also are troubling us. The Ministry of Commerce has taken up the issue seriously. Earlier practice was that whenever they are visiting any Indian site they used to inform us. Now they started coming without any notice,” said Dr. P.V. Appaji, Director General, Pharmexcil. “Cultural differences and body language may sometime widen the gap (during FDA inspection). We are requesting them (FDA) to allow Indian regulators also to be present during the inspections,” Dr. Appaji said. Indian pharma exports have come under tremendous pressure in the recent times owing to various import alerts issued by the USA drug regulator on some major pharma companies. Describing India as a nation which is of “particularly important” to US food and drug trade, FDA Commissioner Ms. Margaret Hamburg had said inspections are routine part of the regulatory process and what happens in India is consistent with what happens in the US and throughout world. Export performance: India’s pharmaceutical exports during AprilNovember 2014 have been to the tune of $10.2-bn, nearly 5% over the corresponding period of 2013. Two-thirds of exports, nearly $7-bn, are made to top 25 destinations, with exports to USA alone estimated at $2.9-bn for the April-November period, against $2.5-bn during the same period last year. According to Dr. Appaji, Indian pharma exports could touch $16.5-bn this year.

GAZETTE NOTIFICATION FROM GOVERNMENT OF INDIA Government of India Ministry of Commerce & Industry Department of Commerce Udyog Bhavan Notification No. 98(RE-2013)2009-2014 New Delhi, Dated 19 November 2014 S.O.(E) In exercise of powers conferred by Section 5 of the Foreign Trade (Development & Regulation ) Act, 1992 (No.22 of 1992), as amended, read with Para 1.3 of the Foreign Trade Policy, 2009-2014, the Central Government hereby stipulates the following condition for import of scheduled chemicals: “Import of Chemicals listed at Category 1A, 1B & 1C of Appendix 3 (SCOMET list) to Schedule 2 of ITC (HS) Classification of Export and Import Items is subject to the condition that for each import consignment, the importer shall, within 30 days of imports, notify the details of import to Directorate General of Foreign Trade (DGFT), National Authority, Chemical Weapons Convention (NACWC) and Department of Chemicals & Petrochemicals”. 2. Effect of this Notification: The Notification makes it mandatory for the importers of chemicals listed at Category 1A, 1B & 1C of Appendix 3 (SCOMET list) to Schedule 2 of ITC (HS) Classification of Export and Import Items to notify the details of such imports to DGFT, NACWC and Department of Chemicals & Petrochemicals within 30 days from the date of their importation. Sd/ PRAVIR KUMAR Director General of Foreign Trade Email: dgft@nic.in To INDIAN CHEMICAL COUNCIL Sir Vithaldas Chambers 16 Mumbai Samachar Marg Mumbai – 400 001 INDIA “Last year Indian pharma exports grew by 2%. This year we are expecting the growth to be in the range of 8-10%. The USA market recovered well,” Dr. Appaji commented.

NO RESTRICTION ON NEEMCOATED UREA PRODUCTION In a belated but welcome move to improve urea efficiency and reduce nitrogen leaching, the Department of Fertilizers (DoF), Government of India, has removed the fetters on urea companies for production of neem-coated urea. Urea companies

- For circulation have so far been allowed to produce up to 35% of their respective total output of subsidized fertilizers under a policy initiative taken in January 2011. In a communication dated January 7, 2015 addressed to all urea manufacturers, DoF stated: “Competent authority has approved to remove the cap/restriction to produce neem coated urea. Therefore, the indigenous producers of urea are allowed to produce neem coated urea which has been incorporated in Schedule 1 of the Fertilizer Control Order, 1985 up to CHEMICAL NEWS FEBRUARY 2015 z 65

maximum of their total production of subsidized urea.” It continued: “Further, it has been decided to restrict the extra 5% of MRP to be charged by the companies on neem coated urea for future to the extent of 5% of the existing MRP of urea only, i.e. Rs. 5,360 per mt.” The removal of the cap on production is also expected to rein in the subsidy bill by Rs. 5,000-crore and help enhance farmers’ incomes. According to Mr. Ananth Kumar, the Chemicals & Fertiliser Minister, the move will ensure better productivity and curb excessive use of urea. “With neem-coated urea, slow nitrogen release improves soil fertility, which can increase yields by 15-20%. It will also help Government save almost Rs. 5,000-crore,” said the Minister.

REPORT ON THE SEMINAR ON: COAL GASIFICATION A Seminar on Coal Gasification, organized by Indian Institute of Chemical Engineers (IIChE), Bhubaneswar Regional Centre, was held on 26.11.2014 at the Nirvana Hall of Hotel New Marrion, Bhubaneswar. Fifteen Invited Speakers delivered lectures on various topic relevant to Coal Gasification. Besides speakers, 103 delegates participated in the seminar.

INAUGURAL SESSION

Shri B.V.R. Murthy, Organising Secretary, invited all the Guests to the dais. The Chairman of the Seminar Committee, Mr. D. P. Misra, in his welcome address, explained the purpose and background of the Coal Gasification Seminar. He introduced the subject of ‘Coal Gasification’ to the audience and outlined a comparative picture related to mineral resources of Odisha with that of South Africa. He raised a question to ponder as to why the State of Odisha is poor in spite of having abundant mineral wealth. Odisha has abundant coal reserve 66 z CHEMICAL NEWS FEBRUARY 2015

like China but China has already started many ‘Coal to Oil’ plants and is planning to produce 20 million tonnes of oil from coal by 2020. Mr. Misra, in brief, described the flow sheet related to coal gasification and downstream processes. He further emphasized that the objective of the seminar was to educate people of Odisha on importance of coal gasification. Mr. Misra expressed his gratitude to the Shri Debi Prasad Mishra, Hon’ble Minister of Industries, Government of Odisha for gracing the occasion as the Chief Guest and expected co-operation from the State Government for coal linked projects in future. Prof. G. K. Roy, Chairman, IIChE, Bhubaneswar Regional Centre and Co-Chairman, Seminar Committee, briefed about the objectives of IIChE and various activities of IIChE, Bhubaneswar Regional Centre. He stated that IIChE is an appropriate forum for promoting Chemical Engineering profession, maintaining contacts among the Chemical Engg. professionals, ensuring regular exchange of ideas through seminars / workshop etc. the application of chemical sciences. Bhubaneswar Regional Centre of IIChE, established in September 1992, has organized many seminars and interactive meets; the recent one was Seminar on PCPIR-Paradeep on 10th March 2014 at Bhubaneswar. He emphasized that the seminar on Coal Gasification is an important topic for the State of Odisha. Dr. K. V. Raghavan, former Director of CSIR-IICT and Vice President of INAE delivered a lecture on ‘Coal Gasification- Technological

Challenges’ as the Guest of Honour. Dr. Raghavan discussed on various issues related to coal gasification. He emphasized that coal is the future source of energy and chemicals. Production of various chemicals from coal will be possible only through gasification route. He dealt upon various types of coal gasifiers such as moving bed, fluidized bed, entrained bed and the technical challenges involved. He explained in detail the efforts made in clean coal technologies since last two decades in India. He also explained about the need for a demonstration plant as the technology developed abroad cannot be completely applied to Indian coal. The future Indian challenges in this area of coal gasification are tremendous and need to be tackled on war footing. He stressed that Coal India should take the lead in developing technology for gasification of Indian coal. Mr. R. G. Rajan, CMD, Rashtriya Chemicals & Fertilizers Ltd. addressed the delegates as the Distinguished Guest. He emphasized that in addition to utilization of natural gas, coal gasification is the need of the 21st century. He stated that a good beginning has been made by JSPL by setting up coal gasification plant at Angul. He briefly dealt upon the Talcher Fertilizer Project which will be based on coal gasification technology and the involvement of RCF in the project. Mr. Rajan said that the Talcher Fertilizer project will be commissioned by 2019. Mr. Debi Prasad Mishra, Hon’ble Minister of Industries, Govt. of Odisha, addressed the gathering as

the Chief Guest. He emphasized that coal gasification is a clean coal technology. Coal and lignite contribute more than 54% to present power generation. Coal gasification will not only improve the efficiency of energy generation it will also contribute in production of chemicals and fertilizers as is being practiced in China. The declining production of coal is a concern for all coal based industries. He mentioned about the use of coal gasification technology for production of urea in Talcher plant of FCI during 1980-2000 and indicated about Govt. of India’s plan for revival of the plant. Hon’ble Minister expected the deliberations will be useful and assured to carry forward the recommendations of the seminar. At the end of the session, the Chairman, Organising Committee handed over mementos to all the guests on the dais. The Organising Secretary offered 'Vote of Thanks' to all the Guests, Delegates and Invitees. SESSION-I: The session was chaired by Dr. K. V. Raghavan. Five Invited Lectures were presented in this session. Dr. Sudipta Dutta, Scientist, CSIR-CIMFR, delivered the first lecture ‘Indian Coal Scenario and its Utilization – Present and Future’. While explaining the energy scenario Dr. Dutta stated that although India is the third largest producer of coal after China and USA, the per capita consumption is 447 kgoe which is very low in comparison to world average of 1746 kgoe. The energy consumption in India by 2020 would be 5.3% of world’s energy scenario.

At present, coal accounts for 55% of energy need. He dealt upon coal consumption pattern in the country and also other energy resources like biomass. Coal gasification is considered as one of the most efficient clean way to produce energy. The present worldwide gasification capacity is 10,400 MWhr. Stress must be given for clean coal technologies with minimal pollutant discharge. He elaborated on benefits of coal gasification and on enormous scope of gasification after beneficiation of low grade coal. Dr. Sambhu Jha, Sr. Manager, Mahanadi Coalfield Limited, delivered the second lecture ‘Coal Deposit in Odisha and its Utilization’. He indicates that out of total 301.564 billion tons of coal reserves in India as of now Odisha has 75.073 billion tones which constitute only second after Jharkhand. Talcher and Ib Valley have coal reserve in 64% and 36% ratio respectively. The gap between demand and supply of coal is increasing and the country is relying on imported coal. Dr. Jha further stated that Odisha coal is cheap and abundantly available and, therefore, is the right coal for power plants. He discussed aspects of utilization potential of Odisha coal for generation and supply of power to the nation. At present about 80% of coal produced in Odisha is being utilized in power plants including CPPs. He discussed in detail about coal reserve pattern in Talcher and Ib Valley area. He stated that high population density of Angul district is a problem as 30% area is covered with coal.

Mr. Jonna Pillay, Executive Director, Jindal Steel & Power Limited, delivered the third lecture ‘Coal Gasification for Steel Industry’. Mr. Pillay discussed about the coal gasification plant of JSPL at Angul and stated that there is now more enthusiasm on gasification of coal after this achievement of JSPL. The overall investment is comparable and there is scope for reduction. It is important to select the right technology for success of gasification process and learning from JSPL’s experience will help select the technologies. He elaborated on various benefits of coal gasification for use in steel industry and stated that Syngas from CGP is cost competitive to imported LNG. In addition, there is generation of valuable by-products like tar, phenol etc. Mr. Ashish Logani, Sr. Process Specialist, Flour India, delivered the fourth lecture ‘Manufacture of Liquid from Coal’. The paper presented an overview of various processes of conversion of coal to syngas, its conditioning and subsequent conversion to liquid fuel like diesel and naptha. The presentation highlighted various feed options and product options - characteristics and factors associated with each option. The speaker also elaborated on gasifier configuration and types and gasification technologies and production challenges. Mr. Amitava Banerjee, Technical Advisor, Air Liquide Global E&C Solution (Lurgi), presented the fifth and last lecture of the session ‘Compatibility of Low Rank Indian Coal for Gasification’. He indicated that the energy and environmental sector in east and central India is dependent on the low rank, high ash and reactive sub-bituminous coal available in India at present. Coal accounts for 60% of the commercial energy and over 95% of coal is used for production of electricity. The paper presented the CHEMICAL NEWS FEBRUARY 2015 z 67

critical characterization of coal for gasification and further extended and discussed the characteristic for different gasification technology like fixed bed, back mix and plug flow. The presentation also elaborated as to how proximate analysis cannot have the final say on quality of coal for gasification. SESSION – II: The session was chaired by Mr. Arun Jain, MD, Fluor India. Five Invited Lectures were presented in this session. In the opening remark, Mr. Arun Jain, the Chairman, briefed about Fluor’s gasification technology. He also presented salient features of the pet coke gasification project of Reliance. Mr. Jain also talked about Clean Energy Project. Mr. C.M.T. Britto, Director (T), Rashtriya Chemicals & Fertilizers Ltd., delivered the first lecture of the session ‘Coal Gasification for Manufacture of Fertilizer’. He described that fertilizer production is energy intensive. The main raw material for fertilizer production, especially ammonia, is produced from natural gas. He stated that with decreasing availability of natural gas in the country, it has become essential to go for alternative feed stock like coal. China has gone a long way in supporting 85% of ammonia production based on coal gasification. He indicated that in the past Indian experiments with coal gasification for production of fertilizer were not successful mainly because of high ash in Indian coal. Now there is a new interest, i.e., maturity in the coal gasification technology especially with respect to reliability and emission. Considering the large resources of coal, coal gasification option may be the best bet for the fertilizer industries. He also dealt upon Indian fertilizer scenario, India being the third largest producer of fertilizer after China and USA. Mr. Rajesh Amba, Head-India Operation, Jacobs Consultancy Ltd., UK, delivered the second lecture of the session ‘Coal Gasification 68 z CHEMICAL NEWS FEBRUARY 2015

for Methanol / Olefin’. He stated that with the oil demand maturing and stagnating, naptha feed stock for petrochemicals for 4-5 decades will not be able to meet the rising demand for petrochemical building block. China and other Asian countries like Indonesia and India have huge quantities of coal reserves and these are the new drive economies – that are focused on or will need to develop long term coal to chemical strategies. He discussed on cost competitiveness of coal versus naptha as feed stock. He discussed various aspects of the processes from coal to olefin, Coal to monoethyl glycol, coal to methanol, coal to vinyl chloride monomer etc.. Mr. Rasmus Trane-Restrup, Process Development Engineer, Halder Topsoe, Denmark presented the third lecture ‘Haldor Topsoe’s Technologies for Sour Shift and SNG Production’. Haldor Topsoe has catalysts and technologies for most processes downstream a gasifier, e.g., sour shift, sulfur recovery and synthesis of ammonia, methanol, substitute natural gas (SNG). Benefit of using Haldor Toposoe’s SSK-10 catalyst for sour shift catalysts such as high activity at low steam to dry gas ratio and low temperatures was discussed along with industries data. Topsoe Recycle Energy Efficiency Methanation Process (TREMP) for production of SNG was presented and data from industry were compared. The TREMP process is tailor made to each case to ensure optimal performance. Mr. Sanjiv Shah, General Manager, Indian Oil Cororation Ltd., presented the fourth lecture ‘Pet coke gasification for manufacture of ethanol / acetic acid’. He presented IOCL’s scheme on utilization of petroleum coke. Petroleum coke is the bottom of the barrel product of refinery. IOCL is implementing 156.0 MMTPA refinery at Paradeep which is likely to be commissioned in 2015. The pet-coke availability will be 1.3 MMTPA. Based on this pet-

coke availability, IOCL is examining feasibility of gasification of coke and utilization of syngas for value addition. He discussed in detail about the process scheme for production of ethanol / acetic acid through pet coke gasification. Ehtanol production is a synthesis gas route which involves a chain of processes. The syn gas can be generated by gasification of fossil fuel based on carbonaceous substances like coal, pet coke, biomass, etc.. Mr. M. Guha Roy, Resident Director, Essar Oil Ltd along with his colleague Mr. Vishal Tawde presented the fifth and last lecture of the session ‘Undergound Coal Gasification and Coal Bed Methane’. The presentation dealt with coal bed methane (CBM) generation vis-a-vis types of coal. Coal bed methane is a natural gas and production of CBM is a mixture of coal mining and conventional gas industry. CBM is a clean fuel which

is boon and can be sold as CNG. He discussed about the world wide scenario of CBM and on different phases in CBM exploration and development. The presentation also dealt upon underground coal gasification (UGCG). Underground coal gasification is the process to convert coal to synthetic gas. The presentation discussed on various selection criteria of UGCG and also on drilling procedure. SESSION-III: The session was chaired by Prof. G.K. Roy, former Director of NIT-Rourkela and Chairman, IIChE- Bhubaneswar Regional Centre. Four Invited Lectures were presented in this session. Mr. V. K. Joshi, Sr. General Manager, ThyssenKrupp Industrial Solutions Ltd., presented the first lecture of the session ‘Uhde Prenflo & HTW Gasification Processes’. He discussed about the organization and various technologies related to fertilizer, oil and gas, gasification technology, polymer etc.. He elaborated on various gasification technologies such as (a) fixed bed, (b) fluidized bed and (c) entrained flow gasification. He also discussed about current scenario regarding the reserves and challenges for the gasification. Approaches to improve high ash coal gasification were also discussed. Mr. D. P. Misra, Director, DCPL and Chairman - Seminar Committee, presented the second lecture ‘Coal Gasification in China and Lessons for India’. He compared the scenario in India and China as regards the availability of coal and its utilization for production of various chemicals. India has the third largest coal reserve in the world. China, in the absence of sufficient resource of crude oil and natural gas, has started harnessing coal for manufacture of methanol, olefins, ethylene glycol, ethanol, acetic acid and liquid product like diesel, naptha and substituted natural gases

through coal gasification route during last decade. There was a good start in 1980s for manufacture of fertilizer through coal gasification route but nothing much has happened in coal utilization for fertilizer and chemicals in last two decades after the closure of those plants. He, in detail, discussed about different coal chemical projects of China those have come up in last decade and also the future projection. He discussed various avenues for utilization of coal in India and stressed that India must concentrate on supplying feed stock to chemical and metallurgical industry through gasification of coal. The need of the hour is to get out of scams and compete with China in use of coal. He indicated to consider factors such as technology maturity, water consumption, CO2 emission and energy efficiency while finalizing the various coal based projects. Mr. A. K. Tripathy, Chief Manager (CBM), CMPDI, delivered the third lecture of the session ‘Development of Coal Based Non-conventional Energy Resources’. At present, the energy scheme is occupied by fossil fuels like coal, oil and gas. Coal is the main source of energy. Global environmental concern has activated the world community to look for new and cleaner fuels. At present, coal meets 53% need of energy requirement. Studies indicate that dependence on coal will continue. The presentation dealt in details about various projects of CMPDI for development of coal absed nonconventional energy resources like CBM, CMM,VAM, UGCG etc.. Mr. Deepak Jain, MD, Naltern Technologies Pvt. Ltd., delivered the fourth and last lecture ‘Coal Gasification Technology – Fixed Updraft Coal Gasification’. He discussed about various types of gasification system. He presented details about updraft coal gasifier and the benefits such as low capital and operating cost, continuous operation with minimum shut

down time, less construction time, minimum environmental problem and good compatibility to replace all liquid and gaseous fuel ie., HSD, FO, SKO, LPG, etc.. VALEDICTORY SESSION & PANEL DISCUSSION At the end of the seminar, a panel discussion was held. Mr. Vivek Pattnaik, IAS (Retd.) and former MD, IPICOL chaired the session. Other panelists were Mr. D.P. Misra, Dr. K.V. Raghavan, Prof. G.K. Roy, Mr. Jeevan Rath and Mr. Vilas Tawde. At the end of discussion, following recommendations were finalized: For Govt. of India: 1 Govt. of India should come out with a Vision Document, like China has done, through inter- ministerial High Powered Committee consisting Ministries of Coal / Power / Fertilizer/ Chemicals / Petroleum & Natural Gas for Coal Gasification for use in Power, Chemical, Fertilizer, Steel and SNG. 2 Central Gasification Plant by Coal India with downstream units like MEG, Ethanol, Acetic Acid etc. by private sectors. 3 Policy for use of petroleum coke by a centralized unit of oil companies. 4 As per Govt. policy, a premium is proposed for Deep Water, High Pressure and High Temperature gas wells. Similar premium should be proposed to CBM / Shale Gas development to attract investment in this area. 5 Govt. should encourage production of Substituted Natural Gas (SNG) instead of importing LNG and set up SNG grid. 6 Govt. should fund and participate in demonstration plants for coal gasification related technologies. For Govt. of Odisha: 1 Govt. of Odisha should constitute a Working Group, consisting of experts, for preparation. 2 Vision Document for coal based chemical and metallurgical industries. CHEMICAL NEWS FEBRUARY 2015 z 69

3 Govt. should form a Steering Committee to monitor the implementation of Vision Document. 4 Govt. of Odisha should ensure that the clearances, such as Prospecting Licence, Mining License, clearance from State Pollution Control Board, clearance from Forest dept etc. and different departments for setting up coal based industries should be faster. 5 Govt. should offer fiscal incentives for setting up coal based chemical and metallurgical projects in Odisha. 6 Govt. should offer subsidy for the feasibility study for coal based chemical and metallurgical industries.

ANTI-DUMPING DUTY IMPOSED ON PENTAERYTHRITOL The Finance Ministry has imposed a

definitive anti-dumping duty of $664 per tonne on pentaerythritol imports from Chinese Taipei (Taiwan). This duty will last for five years, unless revoked earlier. This move follows re-commendation by the designated authority in the Commerce Ministry in its final findings of the sunset review investigations. Pentaerythritol, an organic compound, is principally used in surface coating industries. It finds application in the manufacture of plasticisers, printing inks, alkyd resins, pharmaceuticals and synthetic rubber. Kanoria Chemicals had filed the petition seeking continuation of anti-dumping duty on pentaerythritol imports from Chinese Taipei.

MFL, SPIC & MCFL RESTART NAPHTHA-BASED UREA PLANTS Madras Fertilizers Ltd. (MFL), Southern Petrochemical Industries

EXPORT DOCUMENTS TO BE REDUCED FROM FIVE TO THREE The paperwork involved in exporting and importing goods is set to come down significantly from the next fiscal year. The move will cut down transaction costs and time for industry and also improve the country’s global ranking in the World Bank’s ‘ease of doing business’ index. “The Revenue Department has recently agreed to bring down the number of mandatory documents required for exports to three in the new fiscal year from the seven cited in the World Bank’s report,” an official at the Directorate General of Foreign Trade (DGFT) was quoted as saying in a report in a leading business newspaper. The reduction in export documents to three will put India at par with countries such as the US, Canada, Singapore and Japan. On the imports side, the government is working to cut mandatory documents from seven to four. A report circulated to various government departments has looked at ways to reduce documentation for cross-border transactions and improve India’s ranking in the World Bank’s ‘Doing Business’ report, where the country slipped two notches in 2014 to the 142nd spot among 189 countries. No shipping bill needed: The Centre has decided to dispense with the need to file shipping bill-customs export declaration and merge the commercial invoice with the packing list. “Since the RBI can take all information on transactions made in foreign exchange directly from banks, there is no need for a separate filing of shipping bill,” the DGFT official said. The DGFT is also holding talks with the Shipping Ministry to improve digitisation at ports, which will also cut down transaction time. According to estimates made by exporters’ body Federation of Indian Export Organisations (FIEO), transaction costs could go down by 3 per cent of the total $750-bn of trade, or $22.5-bn, once the Government’s plans are fully implemented. This is expected to give a boost to the country’s exports, which rose by a modest 5 per cent in AprilNovember 2014-15. 70 z CHEMICAL NEWS FEBRUARY 2015

Corporation (SPIC) and Mangalore Chemicals and Fertilizers Ltd. (MCFL) have commenced start-up operations at their respective urea plants following receipt of a subsidyrelated communication from the Department of Fertilizers (DoF). The government has continued subsidy for the three naphtha-based fertiliser plants till they are provided with piped gas connection for the next 100 days. The three units, which have a combined capacity of 1.5-mtpa of urea, stated this in their separate communications to the National Stock Exchange (NSE). In a brief communication, MFL stated: “the company has commenced start-up activities of urea plant from January 7, 2015 based on the notification dated January 7, 2015 received from Department of Fertilizers.” SPIC added that the Government has informed that SPIC would be allowed to produce urea using feedstock naphtha for a period of 100 days from the date of notification. MCFL has also confirmed that it has restarted its urea plant after an over three-month closure necessitated by withdrawal of subsidy for naphtha-based urea plants. In a brief disclosure to stock exchanges, BSE and NSE, the company stated that operation of the company’s urea plant has commenced from January 7, 2015. The disclosure implies Karnataka Government’s decision or intent to sacrifice tax revenue on naphtha consumed by MCFL. Waiver of local taxes on naphtha/ fuel oil: The Centre had decided on December 10, 2014 to resume provision of subsidy to naphthabased urea plants for 100 days after which a new initiative would be put in place. The Cabinet Committee on Economic Affairs resolved that this decision would be implemented after concerned State Governments agree to waive the local taxes (VAT, Entry Tax) on

naphtha/fuel oil used as feedstock for urea production. “After the meetings with respective state Chief Ministers and to maintain smooth supply of urea in the country, the Ministry decided for extension of subsidy payments to these three firms for the period of 100 days for producing urea from naphtha,” informed Fertiliser Minister, Mr. Ananth Kumar. He said the ministry has requested the respective state governments for providing land for gas pipeline, and GAIL to provide connectivity to these plants at the earliest.

REPORT ON THE WORKSHOP ON: WASTE (RESOURCE) MANAGEMENT OF CHEMICAL AND ALLIED INDUSTRIES The International Workshop on “Waste (Resource) Management of Chemical and Allied Industries” was held on the 7th and 8th November 2014, by World Forum for Crystallization, Filtration and Drying (WFCFD) and Institute of Chemical Technology. The main theme of the workshop was resource management focusing on chemical aspect. It was an Industry focused conference bringing together the current advancements and industry experts to share their views on various techniques of Resource Management, the current scenario and the future roadmap. The Main aim and objective of the workshop were: z Provide an interactive platform for enhancement of potential values of Waste Management z Present real time process of Waste Management z Illustrate examples as solutions for the current Waste Management scenario in Indian Industries Hosted by Prof. Bhaskar N. Thorat, Institute of Chemical Technology organized the event at KV Auditorium at the ICT, Mumbai. The workshop featuring ten principal speakers was attended by over 120

members from both academia and industry. “There should be nothing like waste”, proclaimed Professor M.M. Sharma, while giving the plenary lecture. “Resource management calls for the change of mindset amongst the stake holders across a wider section of industries including chemical sector. Valorising all such resource streams should be the mantra for achieving the higher sustainability of chemical and allied industries, the need of hour, as India is inching towards adding to its capability in the manufacturing sector.” Prof. Sharma, impressed upon delegates, by giving several classical examples like recovering elemental sulphur, ‘S’, using the catalytic process from H2S stream in refineries. The amine based regenerable SO2 by Scrubbing in Smelter industries to give water saturated SO2 as a by-product is another noteworthy example of converting off gases into a value added product. SO2 can then be directed to the front end of a Sulphuric acid plant for conversion to sulphuric acid. Depending on the inlet gas temperature, the emissions in the treated gas can be brought down to as low as 55 to 60 mg/ Nm3. In power plant, the “Flue gas desulphurization” can be elegantly achieved by injecting either slurry of CaCO3 or Ca(OH)2, followed by air oxidation to convert calcium sulphite into calcium sulphate dihydrate and then into valuable cement grade hemihydrate calcium sulphate, the gypsum. Over 95% SO2 wet scrubbing efficiency has been reported in some of the new installations. An early example of conversion of nitrobenzene to aniline using Fe as catalyst, where the spend catalyst in the form of oxides is upgraded to pigment grade. Several examples were cited by Prof. Sharma including the valorised products such as polyferric sulphate (PFS), a polymeric

coagulant in water treatment widely used world-wide. In similar way, the ferrous sulphate, FeSO4, obtained as a byproduct in the process TiO2 to TiSO4, can be value added to make PFS. Number of other processes doing justice to the phrase “Wealth from waste” can be thought about included, Polyaluminium chloride (PAC) from AlCl3 used as acid catalyst in FC alkylation/acylation reactions, Copper used as a catalyst in the aryl halide coupling reactions (Ullman reaction) can be recovered to Cu(OH)2, which then can be valorised into fungicide/insecticide formulation.

PROF. G. D. YADAV ADDRESSING THE PARTICIPANTS. OTHERS SEATED (L TO R) ARE: MR. SURESH BHOSALE, PROF. ALBIN PINTAR, PROF. M.M. SHARMA & PROF. B. N. THORAT.

In the manufacturing of Polycarbonate via phosgene route in the earlier days, NaCl, obtained as a co-product, was suitably made use of in the membrane cells for caustic and chlorine industry. In the manufacturing process of soda ash, where, humungous CaCl2 is valorised in north hemisphere for winter deicing/thawing purpose. As also in the establishment and maintenance of oil wells world-wide. The bio-refractory aromatic sulphonic acid, obtained as a residue and/or co-product can be converted to the value added phenol or substituted phenols. Phosphoric acid plant generates large quantities of gypsum and the hemihydrate form obtained from it has been valorised into gypsum board for low cost housing projects. Another compound in the same league is the single super phosphate, where, Sodium Silico Fluoride has been converted into cryolite (Na3AlF6), required in the Aluminium smelting industry. In the manufacture of single super phosphate fertilizer, the phosphate rock is acidulated with sulfuric CHEMICAL NEWS FEBRUARY 2015 z 71

acid, and the fluoride content of the rock evolves as volatile silicofluorides. In the past, much of this volatile material was vented to the atmosphere, contributing heavily to pollution of the air and land surrounding the manufacturing site. As awareness of the pollution problem increased, scrubbers were added to strip particulate and gaseous components from the waste gases. Infact, the hudrofluorosilicic acid (H2SiF6) can be converted to high purity SiO2 which finds it ultimate use in the tyre industries. Further refining it into high grade silica has number of other high value applications such as flow agent in the making of tablets in pharma and free flowing powder/granules to arrest lumping and overcome the issue of cohesiveness of powder. In classical route of manufacturing styrene, diethyl benzene is invariably obtained. Besides, recycling it, it can be converted into divinyl benzene (DVB) ubiquitously used for ion exchange resins. Phenol obtained via classical route of cumene, generates diisopropyl benzene (DIPB) as a coproduct, which again can be recycled back or valorized in to variety of products. 1,4-Diisopropylbenzene is an intermediate for the preparation of stabilizers, polymers, synthetic lubricants, hydroperoxides, and so on. The most practiced reactions of DIPB include side chain modification by oxidation, dehydrogenation, and bromination. Ring substitution reactions include nitration, sulfonation, bromination, and acetylation. Highlighting the typical E-factor of 20 to 100 in pharmaceutical industries, which generate between 10 to 20 times the so called unwanted products. Typical examples include recovery of DMF, nitro-aromatics, Pyridine through derivatization and so on. Prof. Sharma exuded immense confidence amongst 120 odd delegates by vouching for the 72 z CHEMICAL NEWS FEBRUARY 2015

guaranteed 100,000 crore business in valorisation and be a stakeholder in making a chemical industry more sustainable by adopting the 4 ‘R’ principles of Reduce, Reuse, Recycle and finally Refuse. The key note speech was addressed by Prof. Albin Pintar, Head of Laboratory for Environmental Sciences and Engineering at the National Institute of Chemistry (Ljubljana, Slovenia), and professor of chemical engineering at the Faculty of Chemistry and Chemical Technology, University of Ljubljana. Prof. Pintar’s talk on Advanced Catalytic Process for purification of Industrial waste water, key points being Wet Air oxidation and Advanced Oxidation process for the effective mineralization of organic compounds under milder conditions using heterogeneous catalyst. He mentioned about Ru/TiO2 being stable at hydrothermal conditions, even in solutions with high salinity, not prone to deactivation due to coking of the catalyst surface, enabling complete mineralization of organic matter and active for oxidation of intermediate acetic acid. In case of photocatalytic oxidation, TiO2 nanotubes as catalyst, besides nanowires and nanofibres could be considered. Prof. Aniruddha Pandit, a senior Professor at ICT in the Department of Chemical Engineering, spoke about the room temperature technologies for the conversion of persistent organic chemicals into smaller molecules ready to be transformed into benign CO2 via aerobic oxidation. Hydrodynamic cavitation is relatively recent methodology that can be considered for treatment of effluents containing refractory pollutants. Design, development and operation optimization of hydrodynamic cavitation reactors is a promising area. There are several reports that indicate the application of hydrodynamic cavitation for wastewater treatment through novel design apart from the

conventional multi-orifice devices. The scope is truly wide in treating pharmaceuticals co-products to bring down the COD substantially with higher conversion as well as energy efficiency. Prof. Pandit summarized his talk by showing how reactors based on hydrodynamic cavitation show a considerable optimization possibility due to the presence of multiple pressure oscillation frequencies present as turbulent and chaotic flow. Mr. Madhukar Naik, Managing Director of M/s Aquachem Enviro Engineers Pvt Ltd, spoke on Membrane Biorecator (MBR) and Fixed & Moving Bed Bioreactor (MBBR). Aquachem is a leader in wastewater treatment and has completed, more than 6 CETP’S, 25+ Sewage Treatment Plants and more than 250 ETP’s. He also mentioned about several competitive biological processes including Submerged Aerobic Fixed Film (SAFF), Fluidized Aerobic Bioreactor System (FAB) and Sequential Batch Reactor Systems and compared their performance in terms of techno-economic factors. Mr. Naik also stressed upon the advanced high rate waste water treatment technology using MBBR giving rise to high treatment efficiency, low capital, operations and maintenance cost. He also enumerated other essential factors such as ability of MBBR to handle varying loadings from different sources. Membrane bioreactors are capable of biological treatment along with disinfection, reduced sludge and complete control over sludge age. MBR gives efficient low pressure filtration without fouling, smaller foot print and therefore a compact unit, robust system of high MLSS (>10,000 mg/l) and importantly now sludge bulking. V. V. Mahajani, Prof. of Chemical Engineering Institute of Chemical Technology spoke on Conservation of Water and Energy via Wet Air Oxidation (WAO). explaining the

detailed theory behind all the Oxidation processes ie Hydroxyl Radicals formation mechanism, use of Fenton chemistry and ozonation. The advantages and limitations of the various processes were discussed as well.

PROF. V. V. MAHAJANI ADDRESSING THE DELEGATES

Water and energy are becoming more and more important to chemical process industries being scarce and therefore proper treatment is needed for the sustainability of the chemical industry. Prof. Mahajani talked about the homogeneous as well as heterogeneous catalysts used in WAO and the cost implications. WAO can handle up to COD up to 50% (10,000 to 50,000 mg/l) and can handle toxic chemicals such as cyanide, sulfides, chlorophenols, amines, high TDS streams and metals. Dr. Sukumar Devotta, the former Director of NEERI, Nagpur, talked about the resources handling challenges in chemical and allied industries and stressed upon the use of green solvents and green processes.

DIGNITARIES IN THE AUDIENCE: (L-R) DR. KALYAN RAMAN, DR. SUKUMAR DEVOTTA & DR. S. RAJAMANI

Dr. Kalyan Raman, Divisional Manager & Head, Centre of Excellence (Biotechnology) and Water & Wastewater Treatment Technologies in Research,

Technology and Innovation Centre (RTIC) at Thermax Ltd. presented the Recent Trends in Water & Waste Water Treatment Technologies. The talk was based on the India Centric Solutions focusing on the Membrane distillation technology (Memstill) that uses low cost waste heat. Dr. Raman spoke about the “Forward Osmosis (FO) technology for water treatment”, defined as the net movement of water across a selectively permeable membrane driven by a difference in osmotic pressure across the membrane. A selectively permeable membrane allows passage of water rejecting the solute molecules or ions. He claimed that Forward osmosis has high rejection of wide range of contaminants having a lower membrane fouling propensity than pressure-driven membrane processes (RO). The main advantages of using FO are that it operates at low or no hydraulic pressures. Several state of the art suggestions came from him including the Nano-coating with anti-microbial capabilities to reduce the bio-fouling of membranes, mixed metal oxide nano-structured materials for photo-catalytic oxidation of organics, development of porous polymer based UF with nano-coating to enhance flux and resistance to contamination. Mr. Shripad Khatav, S.S. Techno Pvt Ltd. who saw a huge potential in the area of wastewater management. His expertise lies in multiple effect evaporators and scraped surface heat exchangers and turnkey projects for zero liquid discharge (ZLD). In several industries, ZLD has become a norm and there is no alternative but to concentrate several kgs of salts generated in pharma and other industries. Sometimes, the concentration of high boiling chemicals/solvents is a preferred route as compared to the conventional aerobic/anaerobic treatment. The distilleries are needed to adopt ZLD and convert

the spent wash into a semi-solid before it is disposed either by using it as a fuel in a boiler or valorizing it as a granular fertilizer as it contains around 15% K2O on dry basis. Dr. S. Sridhar, of CSIR-Indian Institute of Chemical Technology (IICT), Hyderabad spoke on “Development of Industry, Society and Academia through Chemical Engineering” while Dr. P. N. Parameswaran, the Vice President (Environment) at UPL, discussed about his expertise in “Management systems post waste recovery and remediation techniques.” Dr. S. Rajamani, the former director of CLRI, Chennai, gave overview of the leather industries in India and also the issues related to the Ganges pollution and the ways to overcome by adopting the newer and better leather processing technologies. He mentions about the segregated treatment and recovery of metallic chrome using a dedicated chrome recovery system. He strongly recommends the use of aerobic-membrane bioreactor sans redundant secondary clarifier for water recovery. Tamil Nadu being a water scarcity region, total recycle has become a norm rather than exception. Dr. Rajamani takes pride in being associated with several ZLD plants. The one he mentioned in his lecture was Micro-filter and MBR based system to remove color, residual coliform, BOD and COD, the first ZLD plant, installed in Leather sector in Lurca, Spain. The other notable example being RO system installed at Pallavaram, Chennai. Speaking on the need for the reduction in sludge volume, the sludge should not contain more than 20% of volatile organic matter according to the new guidelines of CPCB. The conference was well appreciated by all participants. [REPORT BY: B. N. THORAT AND POONAM VIJ, DEPARTMENT OF CHEMICAL ENGINEERING, INSTITUTE OF CHEMICAL TECHNOLOGY, MATUNGA (E), MUMBAI 400019. EMAIL: BN.THORAT@ ICTMUMBAI.EDU.IN]

CHEMICAL NEWS FEBRUARY 2015 z 73

Government of India Ministry of Chemicals & Fertilizers Department of Chemicals & Petrochemicals

CHEMICAL WEAPONS CONVENTION (CWC) ATTENTION ALL CHEMICAL / PHARMACEUTICAL / PETROCHEMICAL / DYESTUFFS / PIGMENTS MANUFACTURERS / EXPORTERS / IMPORTERS (ENFORCEMENT OF CWC ACT- 2000)

SUBMIT DECLARATIONS NOW

India being signatory to CWC, submission of Declaration is obligatory under the CWC Act – 2000. Non-compliance is a criminal offence & attracts imprisonment / penalties. SCHEDULE- 2 CHEMICALS Initial and Annual Declarations are required for all plant sites that comprise one or more plant(s) which produced, processed or consumed during any of the previous three calendar years or is anticipated to produce, process or consume in the next calendar year more than:

(a) 1 Kg. of a Chemical designated “ * ” in Schedule–2, Part-A; (b) 100 Kg. of any other chemical listed in Schedule-2, Part-A; OR (c) 1 Tonne of a chemical listed in Schedule-2, Part-B of Annex on Chemicals of CWC.

SCHEDULE- 3 CHEMICALS

Initial and Annual Declarations are required for all plant sites that comprise one or more plants which produced during the previous calendar year or are anticipated to produce in the next calendar year more than 30 Tonnes of a Schedule-3 Chemical of Annex on Chemicals of CWC. Declarations are also required on the quantities for each Schedule-2 and Schedule-3 chemical(s) imported and exported for the previous Calendar Year for each country involved.

Declaration Time Limit for Schedules – 2, 3 & Other Chemical Production Facilities (OCPFs) DECLARATION Annual Declaration of Past Activities (ADPA) for Schedule 2,3 & OCPF

25th January every year

Annual Declaration of Anticipated Activities (ADAA) for Schedule 2 & 3 only

25th July every year

Additionally planned activities

DEADLINE

Any planned change minus 30 Days i.e. 30 days before commencement of activities

FOR OTHER CHEMICAL PRODUCTION FACILITIES (OCPFs)

Initial and Annual Declaration is required for all plant sites that produced by synthesis during previous calendar year more than 200 tonnes of unscheduled Discrete Organic Chemicals (DOCs) or 30 tonnes of an unscheduled DOC containing – PSF (elements Phosphorus, Sulphur or Fluorine) Chemical. File CWC Declarations online. Access the web address http://cwc.dcpc.nic.in for the purpose.

FOR FURTHER DETAILS UNDERMENTIONED WEBSITES MAY BE VISITED

www.opcw.org



www.chemicals.nic.in



www.nacwc.nic.in

For any clarification, please contact CWC HelpDesk of your region set up by Department of Chemicals & Petrochemicals, Govt. of India: ■ Chennai HelpDesk: ■ Hyderabad HelpDesk: ■ Kolkata HelpDesk: ■ Mumbai HelpDesk: ■ New Delhi HelpDesk: ■ Vadodara HelpDesk:

MR. R. NARAYANAN, Mobile: 09788580405 Email: narayanan.icc@gmail.com MR. V. GIREESAN MENON, Mobile: 08790975660 Email: icc.cwc@iccmail.in MR. ABHIJIT CHAKRABORTY, Mobile: 09831325654 Email: iccero@iccmail.in MR. SUDHIR KULKARNI, Mobile: 09930301927 Email: kulkarni.icc.mumbai@gmail.com MR. K.S. VARMA, Mobile: 09811007209 Email: cwchdd@gmail.com MR. ANAND KANE, Mobile: 09376980207 Email: cwchelpdesk@iccmail.in

Intimation Slip and Hard Copy of Declaration is to be sent (by SPEED POST ONLY) to: MR. O. P. SHARMA, Joint Industrial Advisor Ministry of Chemicals & Fertilizers, Dept.of Chemicals & Petrochemicals, Govt.of India Room No. 223, A-Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi - 110001 Tel: 011-23071442 Tele-Fax: 011-23071187 Email: efilehelp.dcpc@nic.in

A Hard Copy of the Declaration also be submitted to: MRS. LATA MOHAN, Joint Director National Authority, Chemical Weapons Convention Cabinet Secretariat, 1st Floor,Chanakya Bhavan, New Delhi - 110021 Tel: 011-24675527 Fax: 011-24675767 Cell: 09560454945 Email: lata.mohan@nic.in

74 z CHEMICAL NEWS FEBRUARY 2015

Member-Signatories to Responsible Care 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60.

AARTI INDUSTRIES LTD. ADITYA BIRLA CHEMICALS INDIA LTD. ADITYA BULK CARRIERS AKZO NOBEL CHEMICALS (I) LTD. ALKYL AMINES CHEMICALS LTD. AMINES & PLASTICIZERS LTD. ANSHUL SPECIALTY MOLECULES LTD. APCOTEX INDUSTRIES LTD. ARCL ORGANICS LTD. ASCU ARCH TIMBER PROTECTION LTD. ASG BIOCHEM PVT. LTD. ASHOK CHEM-PHARMA INTERNATIONAL LTD. ASIAN PEROXIDES LTD. ASTEC LIFESCIENCES LTD. ATUL LIMITED AUCHTEL PRODUCTS LTD. BASF INDIA LTD. BAYER CROP SCIENCE LTD. BENGAL CHEMICALS & PHARM. LTD. BHARAT PETROLEUM CORPORATION LTD. BHARUCH ENVIRO INFRASTRUCTURE LTD. BILAG INDUSTRIES LTD. BRENTAG INGREDIENTS (INDIA) PVT. LTD. CENTURY RAYON CETEX PETROCHEMICALS CHEMPLAST SANMAR LTD. CHEMSTAR ORGANICS (INDIA) LTD. CHEMTURA CHEMICALS INDIA PVT. LTD. CLARIANT CHEMICALS (INDIA) LTD. COLOURTEX INDUSTRIES PVT. LTD. CONNELL BROS CO. (I) PVT. LTD. COROMANDEL INTERNATIONAL LTD. CRL TERMINALS PVT. LTD. DAI-ICHI KARKARIA LTD. DCM SHRIRAM CONSOLIDATED LTD. DECCAN FINE CHEMICALS INDIA PVT. LTD. DEEPAK FERT. & PETROCHEMICALS CORPN. LTD. DEEPAK NITRITE LTD. DHARAMSI MORARJI CHEMICAL CO. LTD., THE DIAMINES & CHEMICALS LTD. DIC INDIA LTD. DISHMAN PHARMACEUTICALS & CHEMICALS LTD. DORF KETAL CHEMICALS (I) PVT LTD. DORF KETAL SPECIALITY CATALYST (P) LTD. DOW AGROSCIENCES INDIA PVT. LTD. (Lote Parshuram Unit) DOW CHEMICAL INTERNATIONAL PVT. LTD. (Kalwa Unit) EAST INDIA PHARMACEUTICAL WORKS LTD. E. I. DUPONT INDIA PVT. LTD. ELANTAS BECK INDIA LTD. ESSAR OIL LIMITED EXCEL INDUSTRIES LTD. GALAXY SURFACTANTS LTD. GANESH POLYCHEM LTD. GE BETZ INDIA PVT. LTD. GHCL LIMITED GODAVARI BIOREFINERIES LTD. GODREJ INDUSTRIES LTD. GRASIM INDUSTRIES LTD. GUJARAT ALKALIES & CHEMICALS LTD. GUJARAT ORGANICS LTD.

61. GUJARAT STATE FERT. & CHEM. LTD. 62. GULBRANDSEN CHEMICALS PVT. LTD. 63. GULBRANDSEN TECHNOLOGIES (INDIA) PVT. LTD. 64. HALDIA PETROCHEMICALS LTD. 65. HEUBACH COLOUR PVT. LTD. 66. HIKAL LIMITED 67. HINDUSTAN INSECTICIDES LTD. 68. HINDUSTAN ORGANIC CHEMICALS LTD. 69. HUNTSMAN INTERNATIONAL (I) PVT. LTD. 70. INDIA GLYCOLS LTD. 71. INDIAN ADDITIVES LTD. 72. INDIAN OIL CORPORATION LTD. 73. INDOFIL INDUSTRIES LTD. 74. INDUSTRIAL SOLVENTS & CHEM. PVT. LTD. 75. INSILCO LTD. 76. IOL CHEMICALS & PHARMACEUTICALS LTD. 77. JAYSHREE CHEMICALS LTD. 78. JUBILANT LIFE SCIENCES LTD. 79. K.V. FIRE CHEMICALS (I) PVT. LTD. 80. KANSAI NEROLAC PAINTS LTD. 81. LANXESS INDIA PVT. LTD. 82. LAXMI ORGANIC INDUSTRIES LTD. 83. LUBRIZOL INDIA LTD. 84. MCC PTA INDIA CORP. PVT. LTD. 85. NAGARJUNA FERTILIZERS AND CHEMICALS LTD. 86. NATIONAL PEROXIDE LTD. 87. NAVDEEP CHEMICALS PVT. LTD. 88. NAVIN FLUORINE INTERNATIONAL LTD. 89. NLC NALCO (INDIA) LTD. 90. PI INDUSTRIES LIMITED 91. RALLIS INDIA LTD. 92. RASHTRIYA CHEMICALS & FERTILIZERS LTD. 93. RELIANCE INDUSTRIES LTD. 94. RISHI KIRAN LOGISTICS PVT. LTD. 95. ROHM AND HAAS INDIA PVT. LTD. (Taloja Unit) 96. S I GROUP – INDIA LTD. 97. SAJJAN INDIA LTD. 98. SAVIORAY PETROCHEMICALS LTD. 99. SHASUN CHEMICALS & DRUGS LTD. 100. SOLARIS CHEMTECH INDUSTRIES LTD. 101. SOLVAY SPECIALITIES INDIA (PVT.) LTD. 102. SOUTHERN PETROCHEM INDS. CORPN. LTD. 103. SRF LIMITED 104. STP LIMITED 105. STYROLUTION ABS (INDIA) LTD. 106. STYROLUTION INDIA PVT. LTD. 107. SUDARSHAN CHEMICAL INDUSTRIES LTD. 108. SUD-CHEMIE INDIA PVT. LTD. 109. SUPARNA CHEMICALS LTD. 110. SUPREME PETROCHEM LTD. 111. TAGROS CHEMICALS INDIA LTD. 112. TANFAC INDUSTRIES LTD. 113. TATA CHEMICALS LTD. 114. THIRUMALAI CHEMICALS LTD. 115. TRANSPEK INDUSTRY LTD. 116. TRANSPEK SILOX INDUSTRY LTD. 117. TUTICORIN ALKALI CHEMICALS & FERT. LTD. 118. UNITED PHOSPHORUS LTD. 119. VADODARA ENVIRO CHANNEL LTD. 120. WACKER METROARK CHEMICALS LTD. Updated as on 14 November 2014 CHEMICAL NEWS FEBRUARY 2015 z 75

NEWS INTERNATIONAL

EMERY OLEOCHEMICALS PRECOMMISSIONS ‘RENEWABLE AND RECYCLABLE POLYOL’ PLANT

Emery Oleochemicals, a world leader in natural-based chemicals announced that construction activities of its new technologically advanced bio-polyol plant located in Cincinnati, Ohio has reached mechanical completion. The plant will further strengthen Emery Oleochemicals’ ability to provide wide range of Eco-Friendly Polyoyls products and customer service. With the initiation of precommissioning activities and site operational verification, startup of the first phase of the US$50mil investment marks a key milestone in the expansion project designed to boost capacity and technical capabilities in the manufacturing of performance bio-based polyols for the automotive, furniture and bedding and major appliances industries. Announced in 2012, the project will reach initial production goals 76 z CHEMICAL NEWS FEBRUARY 2015

by the end of the year specifically in the area of renewable-based polyols, using Emery Oleochemicals’ proprietary ozonolysis technology. “Once the commercial operation of the first phase begins, the biopolyol plant will demonstrate unique capabilities of renewable-based polyols that can deliver on both performance and cost,” said Jay Taylor, Senior Vice President, Chief Manufacturing Officer and Regional Managing Director, North America. The second phase adjoins in this same manufacturing complex and is in its final building stage with civil and structural installation at various process units nearing completion. This state-of-the-art site is dedicated to the production of recyclable polyols, bringing to life Emery Oleochemicals’ “closed-loop” processing value proposition and marks the successful integration of award-winning INFIGREEN® technology acquired in 2012. When full facility commissioning completes in Q2 2015, the Cinccinati site will additionally produce solutions for Emery Oleochemicals’ Agro Green, Bio-Lubricants and

Green Polymer Additives businesses, therefore providing natural-based solutions in market segments such as agriculture, lubricants, oilfield, packaging, toys and other highgrowth industries.

INDORAMA TO ACQUIRE POLYPLEX’S PET RESIN PLANT IN TURKEY Indorama Ventures PCL (IVL), one of the world’s foremost petrochemical producers, has reached a definitive agreement with Polyplex Europa Polyester Film San ve Ticaret A?, Turkey, a 100 per cent subsidiary of Polyplex (Thailand) PCL (PTL) and Polyplex (Asia) Pte Ltd, Singapore, to fully acquire the new state-of-theart PET resin plant with a planned capacity of 252,000 tonne per year situated close to Istanbul in Turkey. The transaction is expected to be completed in the first quarter of 2015. Following the acquisition of the 130,000 tonne Artenius Turkpet plant (now renamed Indorama Ventures Adana PET) in the second

quarter of 2014, the company will have a combined capacity of 382,000 tonne, making IVL a clear number one domestic PET producer in Turkey and the South East Europe region. “Turkey is the rising star - the fastest emerging market of Europe and OECD in fact, with strategic access to the South East European market. Our focused growth in key markets will be instrumental in reinforcing our position as the preferred supplier to the beverage industry. Europe in general has been relatively weak since 2013 which has led to strategic M&A actions by us in 2014 to improve our EMEA cost position and serve our customers competitively from within the region. The industry consolidation, competitive currency environment and the lower raw material costs creates superior value for our customers and shareholders alike,” said Aloke Lohia, Vice Chairman and CEO, Indorama Ventures.

CHINA SEARCHES PRECIOUS METALS IN INDIAN OCEAN A Chinese submersible vessel has conducted its first deep dive in the Indian Ocean in search of rare metals. The project involves collecting samples of hydrothermal fluid and sulfide, a kind of seabed deposit containing copper, zinc and precious metals such as gold and silver. The project, which involves exploring the Indian Ocean for 120 days, reflects China’s hunger for resources, and its long-term development plans, said sources. The vessel will also obtain samples of rocks, sediment and water from selected spots in the India Ocean. Different metals become sulfides after chemical reactions and come to rest in the seabed in ‘chimney vents,’ said Xinhua news agency official. The mission’s chief scientist, Tao Chunhui, said diving in the submersible enables researchers to see active hydrothermal vent and

polymetallic sulfide in seabed and study the environment in the sites from which samples are drawn. The information is important for China’s future research in the polymetallic sulfide exploration contract area, said Tao. The first dive last Friday was part of a plan for 20 more planned for the submersible called Jiaolong after a mythical dragon. It will research polymetallic sulfides, biological diversity, hydrothermal microbes and genetic resources in a 120-day expedition in the Indian Ocean. Jiaolong earlier conducted a 52-day scientific expedition in the northwest Pacific Ocean until last August. It collected 116 biological samples, 22 rock samples, 100 kg of cobalt-rich crust and 24 kg of polymetallic crust samples, as well

as 1,232 liters of seawater from the Pacific Ocean. Chinese experts also tested a remotely operated underwater vehicle, Longzhu. China said it was conducting the diving operation within its own licensed exploration area. It entered a contract with the International Seabed Authority and China Ocean Mineral Resources Research and Development Association (COMRA) in 2011 to cover 10,000 sq km of sea surface for research. Research mission’s chief commander, Yu Hongjun, said the vessel will also be used to help pilot trainees to learn skills of submersible operation in active hydrothermal vent and collect samples. The submersible has been carried by a research ship, Xiangyanghong 09.

JAPANESE WASTE TO ENERGY FIRM JFE COMPLETES HAZARDOUS WASTE INCINERATOR IN MALAYSIA A joint venture between Japanese waste to energy technology firm, JFE Engineering and Tsukishima Engineering Malaysia has completed a hazardous waste incineration plant in Sarawak State, Borneo Island, Malaysia. JFE explained that the plant was ordered by Sarawak Wastes Management, which is a joint venture of the Government of Sarawak State, Malaysia, and Trienekens GmbH, a German waste treatment company. The kiln stoker furnace adopted in the plant was supplied by Tsukishima Kankyo Engineering, which is a Tsukishima Kikai Group company specialising in thermal treatment plants. The plant is said to be capable of treating a wide range of wastes, including both liquids and solids, and offer high combustion efficiency and reduced discharges of greenhouse gases through the utilisation of gas collected from an adjoining landfill site as supplementary fuel. According to JFE, Sarawak Wastes Management is the only waste management agency in Sarawak State, and the plant makes it possible to expand incineration treatment of industrial wastes generated by oil refineries, as well as medical wastes from hospitals in East Malaysia. The order for this plant was said to have been received based on an evaluation of JFE Engineering Group’s track record in the construction of urban-type environmental plants, and the various thermal treatment technologies of the Tsukishima Kikai Group. In particular, JFE said that one key point was the creation of localised implementation system, under which every possible effort was made to carry out the project by the local subsidiaries of JFE Engineering and Tsukishima Kikai. In the future, the JFE said that it will continue to actively expand its presence with Tsukishima Kikai Group in the nations of Southeast Asia, beginning with Malaysia, by supplying urban-type environmental plant technologies. CHEMICAL NEWS FEBRUARY 2015 z 77

SOLVAY COMPLETES ACQUISITION OF CHEVRON PHILLIPS’ RYTON PPS BUSINESS Solvay has completed the acquisition of the Ryton PPS (polyphenylene sulphide) business from US based Chevron Phillips Chemical Company for $220 million, enlarging its high-performance polymers offering and entering a solid growth market. Solvay’s Global Business Unit (GBU) Specialty Polymers has bought two Ryton PPS resin manufacturing units in Borger, Texas, US, a pilot plant and R&D laboratories in Bartlesville, Oklahoma, US as well as a compounding plant in KalloBeveren, Belgium with a total of about 200 employees joining the Group. Chevron Philips Chemical’s compounding unit in La Porte, Texas, will provide temporary tolling services to Solvay, allowing for an orderly transition with the Ryton customer base. The acquisition is part of Solvay’s strategic development to enhance its specialized solutions, deliver higher growth and greater returns while reducing cyclicality. The Ryton PPS businesses will be consolidated into Solvay’s accounts as of 1 January 2015.

SIPCHEM TO START UP PBT PLANT IN FIRST QUARTER OF 2015

Saudi International Petrochemical Co (Sipchem) said the initial start-up of its new polybutylene terephthalate (PBT) plant will begin in the first quarter of 2015. The company has been testing the plant’s main equipment in preparation for the launch, it said in a statement. The 78 z CHEMICAL NEWS FEBRUARY 2015

facility is located in Saudi Arabia’s Jubail Industrial City. The plant will manufacture up to 63,000 tonne per year of PBT resin. The material is a highly-specialised thermal polymer used in electrical and electronic material production in the automotive industry, as well as in the production of IT based materials.

CSB NAMES POOR DESIGN AND FAILURE TO TEST DUST COLLECTION SYSTEM AMONG CAUSES OF U.S. INK NEW JERSEY FLASH FIRE THAT BURNED SEVEN WORKERS IN 2012 OSHA Again Urged to Issue New Combustible Dust Regulations The flash fire that burned seven workers, one seriously, at a U.S. Ink plant in New Jersey in 2012 resulted from the accumulation of combustible dust inside a poorly designed dust collection system that had been put into operation only four days before the accident, an investigation by the U.S. Chemical Safety Board (CSB) has found. In a report released today and scheduled to be presented for board consideration at a CSB public meeting in East Rutherford this evening, the investigation team concludes that the system was so flawed it only took a day to accumulate enough combustible dust and hydrocarbons in the

duct work to overheat, ignite spontaneously, cause an explosion in the rooftop dust collector, and send back a fiery flash that enveloped seven workers. U.S. Ink is a subsidiary of Sun Chemical, a global graphic arts corporation which has some 9,000 employees worldwide. U.S. Ink manufactures black and color-based inks at seven U.S. locations including East Rutherford. A key step in the ink production process is mixing fine particulate solids, such as pigments and binders, with liquid oils in agitated tanks. CSB Chairperson Rafael Moure-Eraso said, “The findings presented in the CSB report under consideration show that neither U.S. Ink nor its international parent company, Sun Chemical, performed a thorough hazard analysis, study, or testing of the system before it was commissioned in early October 2012. The original design was changed, the original company engineer retired prior to completion of the project, and no testing was done in the days before the operation of the black-ink pre-mixing room production was started up.” The CSB found that the ductwork conveyed combustible, condensable vapors above each of three tanks in the mixing room, combining with combustible particles of dust of carbon black and Gilsonite used in

the production of black ink. Investigation Supervisor Johnnie Banks said, “The closed system air flow was insufficient to keep dust and sludge from accumulating inside the air ducts. But to make matters worse, the new dust collector design included three vacuuming hoses which were attached to the closed-system ductwork, used to pick up accumulated dust, dirt and other material from the facility’s floor and other level surfaces as a ‘housekeeping’ measure. The addition of these contaminants to the system ductwork doomed it to be plugged within days of startup.” The report describes a dramatic series of events that took place within minutes on October 9, 2012. About 1 p.m., an operator was loading powdered Gilsonite, a combustible carbon-containing mineral, into the bag dump station near the pre-mixing room when he heard what he called a strange, squealing sound. He checked some gauges in the control room, and as he was leaving he saw a flash fire originating from the bag dump where he had just been working. He left to notify his supervisor. At about that same time, other workers heard a loud thump that shook the building. In response to the flash from the bag dump station and the thump, workers congregated at the entrance to the pre-mix room. One worker spotted flames coming from one of the tanks. He obtained a fire extinguisher but before he could use it, he saw an orange fireball erupt and advance toward him. He squeezed the handle on the extinguisher as he jumped from some stairs, just as the flames engulfed him and six other

employees who were standing in the doorway. The CSB determined that overheating and spontaneous ignition which likely caused the initial flash fire at the bag dump was followed by ignition of accumulated sludge-like material and powdery dust mixture of Gilsonite and carbon black in the duct work above tank 306. Meantime, the dust collection system, which had not been turned off, continued to move burning material up toward the dust collector on the building’s roof, where a sharp pressure rise indicated an imminent explosion. This was contained by explosion suppression equipment, but the resulting pressure reversed the air flow, back to the pre-mix room, where a second flash fire occurred, engulfing the workers. Investigation Supervisor Banks said, “The new system was not thoroughly commissioned. There was no confirmation of whether the system would work as configured, missing opportunities to find potential hazards. The design flaws were not revealed until the dust explosion.” The report’s safety management analysis points to a lack of oversight by company engineers of the work done by installation contractors. The company chose not to perform a process hazard analysis or management of change analysis – required by company policy for the installation of new processing equipment – because it determined it was merely replacing a previous dust collection system in kind. However, the new system in fact was of an entirely different design. Considering the emergency response following the flash fire

and dust collector explosion, CSB Investigators found that while workers had received training in emergency response situations, they did not follow those procedures, because U.S. Ink had not developed and implemented an effective hazard communication and response plan. A fire coordinator was designated to use the public address system to announce a fire and also pull the alarm box. But because the system was not shut down immediately after the first flash fire, he was among the injured and could not perform his duties. The CSB report’s regulatory analysis highlights the need for a national general industry combustible dust standard which the agency has long recommended that OSHA promulgate, putting in on the CSB’s “Most Wanted” list in 2013, following years of urging action as dust explosions continued to occur in industry. The report, if adopted by the board, would reiterate the CSB’s original recommendation to OSHA, and also recommend OSHA broaden the industries it includes in its current National Emphasis Program on mitigating dust hazards, to include printing ink manufacturers. Chairperson Moure-Eraso said, “Although OSHA’s investigation of this accident deemed it a combustible dust explosion, it did not issue any dust-related citations, doubtless hampered by the fact that there is no comprehensive combustible dust regulatory standard. In U.S. Ink’s case – and thousands of other facilities with combustible dust – an OSHA standard would likely have required compliance with National Fire Protection Association codes that speak directly to such critical factors as dust containment and collection, hazard analysis, testing, ventilation, air flow, and fire suppression.” The CSB report notes that the volume of air flow and the air velocity in the company’s dust collection system was significantly CHEMICAL NEWS FEBRUARY 2015 z 79

below industry recommendations – which, in the absence of a federal combustible dust regulation, are essentially voluntary. The report states the ductwork design did not comply in several respects with guidelines set by the American Conference of Governmental Industrial Hygienists (ACGIH) Industrial Ventilation Manual. Nor did the system’s design, the CSB said, comply with the voluntary requirements of NFPA 91, which states: “All ductwork shall be sized to provide the air volume and air velocity necessary to keep the duct interior clean and free of residual material.” Chairperson Moure-Eraso said, “A national combustible dust standard would include requirements to conform to what are now largely voluntary industry guidelines and would go far in preventing these dust explosions.” The report cites gaps in New Jersey’s regulatory system, noting the state’s Uniform Construction Code Act has adopted the International Building Code (which references NFPA dust standards) but has also exempted “manufacturing, production and process equipment.” A proposed CSB recommendation to New Jersey’s Department of Community Affairs calls on the regulatory agency to revise the state’s administrative code to remove this exemption so that dust handling equipment would be designed to meet national fire code requirements. The state is also urged to implement training for local code officials as local jurisdictions enforce the code, and to promulgate a regulation that requires all occupancies handling hazardous materials to inform the local enforcement agency of any type of construction or installation of equipment at an industrial or manufacturing facility. Chairperson Moure-Eraso said, “Events leading to this accident began even before the earliest 80 z CHEMICAL NEWS FEBRUARY 2015

planning stages, when the company failed to properly oversee the design, construction and testing of a potentially hazardous system. The victims have suffered the consequences. We hope our recommendations are adopted so that these terrifying industrial dust explosion accidents will stop.” The CSB is an independent federal agency charged with investigating industrial chemical accidents. The agency’s board members are appointed by the president and confirmed by the Senate. CSB investigations look into all aspects of chemical accidents, including physical causes such as equipment failure as well as inadequacies in regulations, industry standards, and safety management systems.

CSB RELEASES SAFETY BULLETIN ON ANHYDROUS AMMONIA INCIDENT NEAR MOBILE, ALABAMA Safety Bulletin Notes Five Key Lessons to Prevent Hydraulic Shock The U.S. Chemical Safety Board released a safety bulletin intended to inform industries that utilize anhydrous ammonia in bulk refrigeration operations on how to avoid a hazard referred to as hydraulic shock. The safety lessons were derived from an investigation into a 2010 anhydrous ammonia release that occurred at Millard Refrigerated Services Inc., located in Theodore, Alabama. The accident occurred before 9:00 am on the morning of August 23, 2010. Two international ships were being loaded when the facility’s refrigeration system experienced “hydraulic shock” which is defined as a sudden, localized pressure surge in piping or equipment resulting from a rapid change in the velocity of a flowing liquid. The highest pressures often occur when vapor and liquid ammonia are present in a single line and are disturbed by a sudden change in volume.

This abnormal transient condition results in a sharp pressure rise with the potential to cause catastrophic failure of piping, valves, and other components - often prior to a hydraulic shock incident there is an audible “hammering” in refrigeration piping. The incident at Millard caused a roof-mounted 12-inch suction pipe to catastrophically fail, resulting in the release of more than 32,000 pounds of anhydrous ammonia. The release led to one Millard employee sustaining injuries when he fell while attempting to escape from a crane was after it became engulfed in the traveling ammonia cloud. The large cloud traveled a quarter mile from the facility south toward an area where 800 contractors were working outdoors at a clean-up site for the Deepwater Horizon oil spill. A total of 152 offsite workers and ship crew members reported symptomatic illnesses from ammonia exposure. Thirty two of the offsite workers required hospitalization, four of them in an intensive care unit. Chairperson Rafael MoureEraso said, “The CSB believes that if companies in the ammonia refrigeration industry follow the key lessons from its investigation into the accident at Millard Refrigeration Services, dangerous hydraulic shock events can be avoided - preventing injuries, environmental damage, and potential fatalities.” Entitled, “Key Lessons for Preventing Hydraulic Shock in Industrial Refrigeration Systems” the bulletin describes that on the day before the incident, on August 22, 2010, the Millard facility experienced a loss of power that lasted over seven hours. During that time the refrigeration system was shut down. The next day the system regained power and was up and running, though operators reported some problems. While doing some troubleshooting an operator cleared alarms in the control system, which

reset the refrigeration cycle on a group of freezer evaporators that were in the process of defrosting. The control system reset caused the freezer evaporator to switch directly from a step in the defrost cycle into refrigeration mode while the evaporator coil still contained hot, high-pressure gas. The reset triggered a valve to open and low temperature liquid ammonia was fed back into all four evaporator coils before removing the hot ammonia gas. This resulted in both hot, high-pressure gas and extremely low temperature liquid ammonia to be present in the coils and associated piping at the same time. This caused the hot highpressure ammonia gas to rapidly condense into a liquid. Because liquid ammonia takes up less volume than ammonia gas – a vacuum was created where the gas had been. The void sent a wave of liquid ammonia through the piping – causing the “hydraulic shock.” The pressure surge ruptured the evaporator piping manifold inside one of the freezers and its associated 12-inch piping on the roof of the facility. An estimated 32,100 pounds of ammonia were released into the surrounding environment. Investigator Lucy Tyler said, “The CSB notes that one key lesson is to avoid the manual interruption of evaporators in defrost and ensure control systems are equipped with password protection to ensure only trained and authorized personnel have the authority to manually override systems.“

The CSB also found that the evaporators at the Millard facility were designed so that one set of valves controlled four separate evaporator coils. As a result, the contents of all four coils connected to that valve group were involved in the hydraulic shock event – leading to a larger, more hazardous pressure surge. As a result, the CSB notes that when designing ammonia refrigeration systems each evaporator coil should be controlled by a separate set of valves. The CSB found that immediately after discovering the ammonia release, a decision was made to isolate the source of the leak while the refrigeration system was still operating instead of initiating an emergency shutdown. Shutting down the refrigeration system may have resulted in a smaller release, since all other ammonia-containing equipment associated with the failed rooftop piping continued to operate. A final key lesson from the CSB’s investigation is that an emergency

shutdown should be activated in the event of an ammonia release if a leak cannot be promptly isolated and controlled. Doing so can greatly reduce the amount of ammonia released during an accident. The CSB is an independent federal agency charged with investigating serious chemical accidents. The agency’s board members are appointed by the president and confirmed by the Senate. CSB investigations look into all aspects of chemical accidents, including physical causes such as equipment failure as well as inadequacies in regulations, industry standards, and safety management systems.

QATAR PETROLEUM TO PURSUE THE EXPANSION OF AL-KARAANA PETROCHEMICALS PROJECT

In a step forward aimed at promoting the growth of the petrochemical industry in Qatar, Saad Sherida Al-Kaabi, President & CEO of Qatar Petroleum (QP), said that QP will be conducting feasibility studies to assess utilizing the available ethane feedstock made available after the decision not to go ahead with the AlKaraana Petrochemicals Project. The studies will be carried out by QP in cooperation with Qatar Petrochemical Company (QAPCO), Qatar Chemical Company (Q-Chem)

CLARIANT COMPLETES ACQUISITION OF DE-ICING SPECIALIST, AEROCHEM Clariant, a world leader in specialty chemicals, has announced that its Business Unit Industrial & Consumer Specialties (BU ICS) has completed the acquisition of the de-icing specialist Aerochem AB, a privately-owned company based in Stockholm, Sweden. Centrally located within the Nordic region Aerochem has a leading market position in supplying de-icing fluids to the aviation and railway industries in Sweden, Norway and Denmark. Financial details of the acquisition are not being disclosed. “The acquisition is in line with our growth and sustainability strategy. Aerochem offers access to the attractive de-icing markets in the Nordics and provides an excellent platform for our activities in recycling of aircraft deicing fluids in Europe,” said Hariolf Kottmann, CEO, Clariant. CHEMICAL NEWS FEBRUARY 2015 z 81

and Ras Laffan Olefins Company (RLOC), with the aim to expand and further develop the petrochemical plants under Industries Qatar (IQ) and Mesaieed Petrochemical Holding Company (MPHC). This significant step was driven by QP’s efforts to achieve the best utilization of Qatar’s natural resources, particularly in the petrochemical sector and in a manner that supports local industries, and maximizes its contribution to the national economy. Based on the results of the studies, the best option will be selected in a manner that ensures that maximum economic benefits to the State and to all shareholders in these companies in the long term. Saad Sherida Al-Kaabi stressed that this approach will also maximize the benefit from available synergies by utilizing the existing facilities and infrastructure in this sector, and will significantly reduce capital and operational costs.

DOW PARTNERS WITH THE AMERICAN CHEMICAL SOCIETY TO IMPROVE CHEMISTRY TEACHING THROUGHOUT NORTH AMERICA

Inaugural Teacher Summit to be held Summer 2015 in Midland, Michigan The Dow Chemical Company (Dow) and the American Association of Chemistry Teachers (AACT) are partnering to invigorate chemistry education and support STEM (science, technology, engineering and math) education in the nation’s schools. Dow and AACT will work together to convene a series of teacher summits and create more than 750 lesson plans, multimedia resources, demonstrations and other highquality chemistry teaching materials for use in K–12 classrooms. The 82 z CHEMICAL NEWS FEBRUARY 2015

work will be supported by a $1 million contribution from Dow to AACT spread over a four year period. AACT was launched in 2014 by the American Chemical Society (ACS), the world’s largest scientific society. The partnership with Dow promotes the main goal of AACT—to provide its members with resources that foster top-notch chemistry instruction grounded in everyday life. “We are thrilled to be working together with Dow to support teachers of chemistry across the country and develop the workforce of the tomorrow,” said Madeleine Jacobs, ACS executive director and chief executive officer. “We hope that this partnership can serve as a model that will catalyze greater engagement between chemical industries and local communities.” “A skilled STEM workforce fuels innovation and economic prosperity and creates solutions that improve the quality of life for people across the globe. At Dow, we value teachers’ critical role, both in inspiring chemistry excitement and in helping students to gain the key skills they need to be successful in STEM careers,” said Andrew N. Liveris, Dow’s chairman and chief executive officer. “As the founding partner of this program, we are proud to collaborate with ACS on this first of its kind community to empower chemistry teachers inside and outside of the classroom as they work to inspire the next generation of innovators and entrepreneurs.” Dow’s STEM mission is to build the workforce of tomorrow by supporting teachers, motivating student achievement, developing careers, and collaborating with communities to transform STEM education into a driver for innovation, manufacturing, and economic prosperity. Through its STEMtheGAP™ initiatives, including the AACT partnership, Dow strives to provide more resources to teachers, drive excitement in young people around STEM topics and increase the number of students who choose

STEM majors, ultimately preparing these students to be successful in STEM careers. “This new partnership comes at a critical time,” said Adam Boyd, AACT program director. “Enrollment in high school chemistry classes is on the rise. Yet, only 35 percent of high school chemistry teachers have both a bachelor’s degree in chemistry and are actually certified to teach it.” In order to prepare these teachers for the challenges they face in the chemistry classroom, Dow and AACT will host a series of teacher summits in cities around the country, with the first summit occurring this summer in Midland, Michigan. Approximately 30 chemistry teachers from surrounding communities will attend the weeklong summit. They will work with Dow volunteers, known as Dow STEM Ambassadors, to identify improvement opportunities in K–12 classroom resources and develop lesson plans, multimedia presentations and other materials that better meet teachers’ needs. As part of this effort, Dow STEM Ambassadors will help teachers incorporate career-based examples into their teaching resources, educating students on future potential career opportunities. Lesson plans and other classroom materials developed at the Dow-AACT teacher summits will be available to AACT members via the association’s website, www.teachchemistry.org. About AACT: AACT is the first national organization of its kind in the United States. Membership in the new organization is open to all who are interested in chemistry education. AACT has three goals: to serve as a trusted source of curricular and pedagogical resources for K–12 chemistry instruction, to provide opportunities for chemistry teachers to network with each other and the broader ACS community, and to disseminate effective teaching and learning practices at the K–12 level. For more information, visit www.teachchemistry.org. z

Yet Another Important Milestone in the Service History of ICC All ICC Offices have been authorised by Government of India to issue

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which is an invaluable document for exporters. No n eed to w ait for lon g h ou rs! ICC offices issu e th e Certificates across th e table.

Members and other exporters are requested to avail this facility. For further details, please contact:

INDIAN CHEMICAL COUNCIL  Sir Vithaldas Chambers

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CHEMICAL NEWS FEBRUARY 2015 z 83

QUOTABLE & LAUGHABLE

“I was very taken during Prime Minister Narendra Modi’s campaigns “SABKA SAATH, SABKA VIKAS” - Participation of All for Development for All. That sounds like a pretty good slogan for all of us to adopt, and if we adopt it we can get the job done. We will turn Modi’s ‘Make in India’ initiative into a Win-Win Opportunity for the planet as a whole” - John Kerry, US Secretary of State in Vibrant Gujarat Summit 2015.

“India today is a land of opportunities. We have to build fast tract roads and railways. We have to energize homes and factories on a continuous basis. We have to build infrastructure for cities where almost half of our population lives. We have to take the taste of modern amenities to every village. We have to propel our growth through value addition in our natural resources and agri-produce. We have to provide services to our people which are of global standards. If our human resource can be equipped with skills and technology, we may serve the world in many areas. Thus, there are immense possibilities for global investors in India. The process of development we are taking up is not incremental. We are planning to take a quantum leap. It is not limited to one sector or region, it is truly unlimited. And we want to do things in a cleaner and greener way. We are open to welcome ideas, investments and innovations”. - Prime Minister, Narendra Modi 84 z CHEMICAL NEWS FEBRUARY 2015

Published by Mr. R. R. Gokhale at Mumbai on behalf of the owners Indian Chemical Council (ICC), Sir Vithaldas Chambers, 16 Mumbai Samachar Marg, Mumbai-400 001 and printed by him at Sevak Printers, 308 Shri Hanuman Indl. Est., G. D. Ambekar Road, Wadala, Mumbai-400 031, Tel.: 24114890, Telefax: 24116484, E-mail: sevak308@gmail.com Editor: Dr. Prakash Trivedi CHEMICAL NEWS FEBRUARY 2015 z 85

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