Chemical News - January 2015

OFFICIAL JOURNAL OF THE INDIAN CHEMICAL COUNCIL

CHEMICAL NEWS VOL. XI z JANUARY 2015 z NO. 7

PAGES 78

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

2015 CELEBRATE NEW YEAR IN A SMART CITY!

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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 8 FROM THE DIRECTOR GENERAL 12 GUEST EDITORIAL – PROPYLENE AND DERIVATIVES: DOWS INDIA HAVE A STRATEGY? - RAJEEV M. PANDIA - Ever growing need for propylene and newer ways of manufacturing it.

14 ICC ACTIVITIES 26 DR. STAN HIGGINS’ COLUMN : KNOWLEDGE CAPTURE IS A PROCESS - Heat recovery at lower temp.

28 CHEMISTRY WITH A PURPOSE DELIVERED BY A RESPONSIBLE INDUSTRY - RAVI RAGHAVAN - How to attract students to the queen of science?

30 MUSINGS OF A CHEMICAL ENGINEER - RAJAN SHAH - About skills and attitude to work in Australia and India.

34 INSIGHTS ADD DEPTH TO QUALITY PROCESSES - OM P. GOYAL - Comprehensive insights so as to add depth and improve the understanding of quality practices, on a free-wheeled question-answer form 41 DRIVING OPERATIONAL DISCIPLINE THROUGH QUALITY WRITTEN PROCEDURES - BRIAN D. RAINS - An 8-step process used effectively to strengthen the Operational Discipline Culture of an organisation 48 PROJECTS INVESTMENTS IN CHEMICAL SECTOR 50 ECONOMIC REVIEW 56 NEWS FROM MEMBERS 64 NEWS NATIONAL 70 NEWS INTERNATIONAL 76 QUOTABLE & LAUGHABLE - Smart city, Nobel for work on Children education and Peshawar Massacre.

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 JANUARY 2015 NO. 7 CHEMICAL NEWS JANUARY 2015 z 3

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EDITORIAL

SMART CITIES – BEGINNING OF A NEW ERA?

DR. PRAKASH TRIVEDI Honorary Editor

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t is said that there are as many definitions of Smart City as there are smart people in this world. While perceptions and expectations may differ, it is clear that many countries of the world, most notably China, South Korea, Germany, United Arab Emirates and even good old United States are working at the forefront to develop their versions of smart cities. With announcement by Prime Minister Narendra Modi that India will also soon build 100 smart cities, we can say that India is getting aligned with one of the most important developments taking place in the world today.

In general, the macro picture of smart city remains the same for all.

It is a city where Homes, Businesses, Government, Transports, Health services, Entertainment, etc. are all seamlessly connected, where electronic technology is used to gather information to solve the urban issues, where waste generated is transformed into useful outlets including energy, where energy used

is sustainable, where transport is mostly public, where people’s health get priorities and so on.

Smart cities are necessitated by growing urbanisation, ageing populations in many countries and techno-savvy young generations now nearly everywhere, need for higher power but even greater need for keeping environment clean, easing the tremendous traffic problems in most big cities, possibility of faster solving health problems and increased possibilities of networking, cloud computing and superfast communications, including on hand-held devices.

India’s urban population is projected to grow from 340 million in 2008 to 590 million in 2030, according to a 2010 McKinsey study. The country will have to build the equivalent of one Mumbai of commercial and residential space every year to keep up, McKinsey estimated. India, however, is blessed with high young population, making it easy for electronic literacy, a much needed prerequisite. Also, our highly developed ’service sector’ should help. Wi-Fi hotspots, 4G introduction and cloud computing will accelerate the making of smart cities. Increasingly, some hospitals here are helping evaluate medical reports, like others do for accounting or legal documents for companies situated in the US & Europe. This expertise will help.

The other two major concerns are environment and transportation, which in a way, are related. India

is embarking in a concerted way to generate power using solar and wind energy. With so much Sun and wind in India, it is rather sad that we did not embark full-fledged earlier on their technological development to take lead in the world.

Hydropower, though clean, has its ecological problems. Nuclear power has huge potential but in addition to being costly, its waste products can be menacing. Bio-gas, as also gasification of wood, has been explored only in smaller scales, like for generating cooking gas. Thus, our major dependence remains coal based thermal power with constant CO2 generation. Not solving this problem will pose a big deterrent to form a smart city.

Increased wealth leads to increased auto-oriented transport, throwing more CO2 and other gases and soot in the air and requiring bigger & better roads. Public transport is the right alternative but few cities are now able to generate the right conditions for it. Metro in New Delhi and BRTS in Ahmedabad are two shining examples, no doubt but these are far from being perfect.

Availability of land is a major issue in most cities today for making public transport easily accessible.

Only newly build city can tackle this issue amicably. Smart city is smart because of ease of transports of men and materials and is least polluting. In India, therefore, making Mumbai or Kolkata a smart city will be lot harder than some of the smaller ones.

CHEMICAL NEWS JANUARY 2015 z 5

So far, smart city has meant excellent connectivity in every sense.

But with more than 900 million mobile phones, virtually in every hand at least in big cities, are these smart cities? When on a suburban road on Sunday morning no private vehicle is allowed and people move freely - walking, running, dancing, with a mobile in hand – and air smells fresh, are we creating that road into a smart road?

“Having a stable roof over every head, public transportation running on every road, a toilet in every house -- I would say that is the smartest city ever”, said Rutul Joshi, a CEPT planning professor. “We have to redefine what is smartness.”

Building a smart city out of Dholera is supposed to replace almost

40,000 people from their farmlands.

These people may not yet have acquired any major skill for city living, let alone for a smart city. But then, we need to also ask how many children of those getting so replaced want to continue to leave there tilling their small farms, when the whole new world is getting opened before them? A smart city should bring the whole world at their doorsteps rather than push them out.

Smart cities are still a work in process. Are we ready to give our consent to be in a city with 24*7 surveillance, sensors and cameras everywhere and rampant eves dropping? How to make a city smart without these issues?

Will they solve the energy and related environment crisis or will

they create more? Will we be socially speaking better off or more alienated from one another?

May be we should consider first, on paper at leisure, a city on Moon and ask what will be required for that. That will be a good model for smart cities on earth.

Thus, we need smart cities but more importantly we need more knowledgeable but contented people, who will learn to live a sustainable life with spending as few resources as feasible. Let us not forget T. S. Eliot’s famous remark: ” With all this information, where is knowledge? With all this knowledge, where is wisdom?”

Smart cities should not make us just smart but more importantly should help make us wise citizens. z

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.

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

Email: nkrao@laxmiorganic.co.in

CHEMICAL NEWS JANUARY 2015 z 7

FROM THE DIRECTOR GENERAL

H. S. Karangle Director General - ICC

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nce again I am privileged to be in a position to reach out to all enterprising members of Indian Chemical Council (ICC) and convey my Best Wishes for the New Year 2015. I would like to thank all the members and stakeholders for their support to ICC throughout 2014. I am sure in 2015, with the supportive policies of the Government, Indian chemical industry will be able to grow and achieve double digit growth.

In 2015, many chemical industries who are not ICC members at present will definitely like to join ICC and will make it stronger and more effective for taking up issues of chemical industry at all the forums.

2014 year was a very eventful year for ICC. Both the signature events i.e. 7th Annual India Chemical Industry Outlook Conference held on 6-7 March 2014 and Annual Awards Presentation Function held on 30 September 2014 at Mumbai were successful beyond expectations.

ICC with the support of DCPC, Government of India and the Japanese Society for Process Chemistry successfully organized “Indo-Japanese Conference on Process Chemistry R&D” on 3031 January 2014 at Mumbai. This Conference was possible because of excellent initiative taken by Mr.

Jai Hiremath who is Past President of ICC and Chairman & Managing Director of Hikal Limited. The response for the conference was overwhelming.

During the year 2014 lot of interactions were possible with the new Government and has resulted in resolving some of the long pending demands with the help of Hon’ble Minister for Chemicals & Fertilizers, Mr. Ananth Kumar and Mr. Surjit Chaudhary, SecretaryDCPC. This includes reducing to some extent duty inversion in some of the products by suitably modifying duties. We could also achieve partial withdrawal of Public Hearing specially in the case of industrial estates established prior to 2006.

Our efforts to engage with the Government on issues affecting Indian chemical industry will continue and we are sure with the supportive Government these issues will be resolved to the satisfaction of the Indian chemical industry.

ICC always likes to communicate all about latest happenings / events and other details in shortest possible time. To make this possible ICC has established link with Facebook (www.facebook.com/ indianchemicalcouncil), Twitter (www. twitter.com/icc_india) and Linkedin (www.linkedin.com/company/indianchemical-council).

Readers are requested to follow ICC on these social media networks.

ICC has also revamped its website and made it more communicative.

Readers are requested to visit ICC Website (www.indianchemicalcouncil. com) and suggest improvements required, if any.

We felt motivated when International Council of Chemical

“The single biggest problem in communication is the illusion that it has taken place” - George Bernard Shaw 8 z CHEMICAL NEWS JANUARY 2015

The two words ‘information’ and ‘communication’ are often used interchangeably but they signify quite different things.

Information is giving one’s communication is getting through.

Association (ICCA) has recognized ICC’s efforts in propagating Responsible Care and noted this during ICCA Board of Directors Meeting held on 17 October 2014 at Paris.

The relevant para of the Minutes is extracted below: “ACTION 2: a) Responsible Care (RC) Hans-Jürgen Korte, Chair of RCLG briefed the members about the Responsible Care Global Charter rollout, which started in August 2014 via national RCLG associations. Each association is collecting signatures from multinationals headquartered in their country. The objective is to obtain signatories from 90% of eligible companies by ICCM4.

The Board urged member companies to sign the revised RC Charter to ensure that the 90% target is met.

The India Responsible Care implementation plan, including a short supporting report from Yogesh Kothari / ICC, was presented. The plan includes an enhanced RC effort over the next two years, to close existing gaps in the local programme with regard to the ICCA fundamental features requirements and accelerate local participation and support.

The Board supported the proposed India RC implementation plan. Yogesh Kothari was congratulated for his leadership and his engagement to accelerate the

RC implementation in India. Rakesh Bhartia was introduced as his successor.

The Board expressed concern over the potential for lack of harmonization in global process safety reporting metrics, and encouraged the RCLG to renew its efforts to find a solution.”

I am confident that with the support of members of ICC and Government, we will be able to do much better in 2015.

In addition during 2015 ICC will be working for following: z Propagation of Responsible Care vigorously to Indian chemical industry. In this connection Secretariat has issued circular regarding Responsible Care Mentorship Initiative. The response from the members have been very good, so far 13 members have requested for mentorship and all these requests are now being examined in consultation with the companies who have received RC logo and who have expressed desire to mentor other companies for implementation of RC in their respective companies. z On the basis of ICCA’s request, Secretariat has sent Responsible Care Global Charter which is expected to be signed by companies who are also having overseas manufacturing facilities.

ICC member-companies will certainly respond to ICCA’s appeal and will sign Responsible Care Global Charter. z Spreading NicerGlobe Project to the companies handling hazardous chemicals by road all over India z Corporate Social Responsibility: As per new Companies Act, the specified companies have to spend 2% of their average net profit for the 3 years towards CSR. It is thought prudent to either make ICC or establish new organization which can channelize this

amount for various CSR activities mentioned in the Act. This will definitely help for propagating ICC activities as well as help member-companies to abide by CSR voluntary guidelines. ICC has formed new Committee to achieve this goal under Chairmanship of Mr. Ashwin C. Shroff, Chairman, Excel Industries Ltd. I am sure and confident that future of Indian chemical industry is bright. With the hope of great future for Indian chemical industry, wishing you once again prosperous and growth oriented New Year. May this New Year be a step forward in leading you to new adventures, new roads to explore and new success to reach.

Happy New Year 2015.

Following are other significant initiatives undertaken by the Council in the last month: PRE-BUDGET MEMORANDUM FOR THE YEAR 2015-16 After receiving number of suggestions from the members, ICC’s Trade & Business Development Expert Committee has prepared Pre-Budget Memorandum for the year 2015-16 and was submitted to the concerned Departments of Government of India. On 2 December 2014 a meeting was organized under the Chairmanship of Mr. Kaushal Shrivastav, Chairman (CBEC), Department of Revenue, Ministry of Finance, Government of India at New Delhi to discuss various issues raised by ICC and Government has given assurance to resolve these to the extent possible.

EXEMPTION FROM PUBLIC CONSULTATION FOR THE PROJECTS / ACTIVITIES LOCATED WITHIN THE INDUSTRIAL ESTATES / PARKS Readers are aware that ICC and many other associations

has represented to the Hon’ble Minister for Environment, Forests & Climate Change, Mr. Prakash Javadekar regarding Public Hearing.

As a result of sustained efforts of all the associations, Ministry vide its Office Memorandum No. J-11013/36/2014-IA-I has exempted from Public Hearing, as provided for under para 7(i) III. Stage(3)(i)(b) of EIA Notification 2006 to the projects or activities or units located within the industrial estates or parks which were notified prior to 14.9.2006 i.e. the EIA Notification, 2006 coming into force.

AWARENESS PROGRAM ON “CHEMICAL WEAPONS CONVENTION” ICC along with Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Government of India and National Authority organized half-day Awareness Programs on “Chemical Weapons Convention” as per details given below: 4 December 2014 at Coimbatore 12 December 2014 at Hyderabad 12 December 2014 at Roha 13 December 2014 at Taloja 17 December 2014 at Kolkata 20 December 2014 at Ludhiana 24 December 2014 at Haldia The main purpose of organizing these awareness programs is to help the declarants in filing errorfree declarations to the Ministry of Chemicals & Fertilizers, Government of India and also to ensure that they comply with the new requirements of the Ministry. Members are aware that Ministry has now directed that all the declarants should ensure that information given in the declarations has been checked by Senior Executives of the rank of General Manager or Site In-charge and that his signature should be put on the declarations and be filed on line. This step Ministry has taken in view of the fact that earlier there use to be lot of errors in the declarations and no firm responsibility was fixed.

During the program delegates CHEMICAL NEWS JANUARY 2015 z 9

were informed about this requirement. Besides, delegates were also informed about procedure to be followed for delisting if the company has stopped producing any chemicals that falls under CWC regime and there is a format which must be filled in and send to the Ministry for de-registration.

All the programs were well attended and response was good.

HALF-DAY PROGRAM ON “SAP IN CHEMICAL INDUSTRY” ICC in cooperation with SAP INDIA PVT LTD. (a member-company of ICC through its technology partner YASH Technologies) organized a Half-day Program on “SAP IN CHEMICAL INDUSTRY” on 16 December 2014 at Auditorium of Tarapur Industrial Manufacturers Association (TIMA), Tarapur.

Chemical Industry operates in a volatile business environment where it needs to address issues like rapidly fluctuating raw material and energy prices, shifts in demand patterns with increased globalized operations, and heightened regulatory and compliance requirements to achieve operational excellences and profitable growth.

SAP for Chemicals set of solutions provides fully integrated software to help chemical companies address their changing needs for business information. In these interesting and challenging times, technology plays a pivotal role in providing roadmap for chemical companies to drive innovation, accelerated growth and improved margins.

Mr. Manoj Narang, SAP India Pvt Ltd and Mr. Uday Shankar & Mr. Murali, YASH Technologies, SAP Partner made presentations. Several successful case studies were also discussed (such as Aarti Group, Galaxy Surfactants, Aquapharma, Heubach Colour Pvt Ltd, etc.) and delegates were informed about benefits of using SAP technologies and gains that companies have received as a result of introduction 10 z CHEMICAL NEWS JANUARY 2015

of SAP technologies. Program was attended by more than 50 delegates.

INTERNATIONAL CONFERENCE ON “HAZMAT & LIQUID BULK CARGO” ICC supported International Conference organized by EXIM INDIA on “Hazmat & Liquid Bulk Cargo” held on 4 December 2014 at Hyatt Regency, Mumbai. The Conference was attended by more than 100 delegates. Secretary General of ICC attended the Conference. Capt Dinesh Desai, Corporate Security & Emergency Response, BASF India Limited at the invitation of the organizers made presentation on NicerGlobe Project which was very well received. After the Conference few delegates contacted Capt.

Dinesh Desai and Secretary General regarding information on NicerGlobe Initiative of ICC and to consider enrolling for the same.

RESPONSIBLE CARE: As on today, 120 member-companies of ICC have signed Responsible Care Initiative. 28 member-companies have been granted permission to use RC Logo for a period of three years and 8 member-companies have been granted permission to use RC Logo on fast track basis for a period of one year.

FORTHCOMING MEETINGS / CONFERENCES / SEMINARS: ICC will be organizing following Meetings / Conferences / Seminars: ICC in co-operation with The National Stock Exchange of India Ltd organizing 2 hours Seminar on “CURRENCY & INTEREST RATE HEDGING” on 9 January 2015 at NSE, Conference Room, A Wing, 4th Floor, Bandra Kurla Complex, Mumbai Two-day Refresher Course on “CHEMICAL ENGINEERING FOR PLANT PERSONNEL” on 9-10 January 2015 at Mumbai ICC to support 5th Asia-Oceania Conference on “GREEN AND SUSTAINABLE CHEMISTRY”

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organized by Energy and Resources Institute to be held on 15 – 17 January 2015 at New Delhi ICC to support 2ND INTERNATIONAL CHEMICAL DOWNSTREAM CONFERENCE 2015 organized by Elite Plus++ Business Services and Tecnon Orbichem to be held on 29 – 30 January 2015 at Mumbai . Refresher Course on “Pressure Drop Calculations” on 13 – 14 February 2015 at Mumbai . ICC in co-operation with American Chemistry Council organizing One-day Program on RESPONSIBLE CARE AND SECURITY CODE in February 2015 at Mumbai One-day Seminar on SENSITIZING CHEMICAL INDUSTRY REGARDING ROTTERDAM AND STOCKHOM in February 2015 at Ahmedabad One-day Workshop for SMEs for creating awareness on “Health, Safety, Security & Environment issues with focus on Process Safety” in February 2015 at Vadodara / Ankleshwar One-day awareness Seminar on “Safety and Security Rating System with focus on Behaviour Based Safety” in February 2015 at Bengaluru One-day Workshop for SMEs on “SHE, Chemical Safety, Security Rating System with focus on Responsible Care” in February 2015 at Kashipur / Gajraula One-day Program on “Vacuum System Engineering” in February 2015 at Ankleshwar ICC’s 8TH ANNUAL INDIA CHEMICAL INDUSTRY OUTLOOK CONFERENCE on 3 - 4 March 2015 at Hotel Taj Lands End, Mumbai 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

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CHEMICAL NEWS JANUARY 2015 z 11

GUEST EDITORIAL

PROPYLENE AND DERIVATIVES: DOES INDIA HAVE A STRATEGY?

RAJEEV M. PANDIA Past President, Indian Chemical Council

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s the global annual consumption of Propylene crosses the 100 million MT milestones, the time is opportune to take cognizance of the major strategic shifts and developments, in various countries on the petrochemical map, for this versatile building block.

Some highlights: z Globally, about 63% of Propylene finds its way into the manufacture of Polypropylene (PP). The balance 37% is used for a wide range derivatives, including Oxo-alcohols, Cumene (and thus Phenol/Acetone), Acrylonitrile, Acrylic Acid, Propylene Oxide, Isopropyl Alcohol, Ethylene Propylene Rubbers and Propylene Oligomers. z Traditionally, there have been two major sources of Propylene: steam crackers, especially those using naphtha as feedstock, and Refinery-operated fluid catalytic crackers (FCCs), which crack 12 z CHEMICAL NEWS JANUARY 2015

heavy fractions of crude oil. z As the US shifts to Shale gas derived Ethane-based steam crackers (which reduce the Propylene: Ethylene ratio substantially) and as the Gasoline demand reduces in some geographies, aided by Ethanol blending, favouring diesel production, thus reducing FCC based Propylene output, there is an emerging shortage of Propylene. z To make up for this likely gap between demand and availability, with Propylene demand expected to grow at 4% CAGR, On Purpose Propylene (OPP) technologies have gained substantial prominence. These include Propane Dehydrogenation (PDH), Coal to Propylene/Methanol to Propylene (MTP) and Metathesis (conversion of Ethylene and Butenes to Propylene). Though at a nascent stage, developmental work has also been taken up for biomass based Propylene and catalytic cracking of lighter feedstocks, such as naphtha, to augment Propylene supplies in future. z Consequently, about ten large plants for PDH are at various stages of development in the USA, the Middle East is in any case moving towards naphtha as a feedstock for steam crackers in view of the anticipated shortage of natural gas (apart from considering several PDH

projects) and China has huge investments planned in its coal belts to produce several million tonnes of Propylene from coal, via Methanol. Even Thailand has operated a PDH plant for the last many years, being the first one using the continuous regeneration loop technology. z It is estimated that the proportion of OPP, which has been less than 5% in the past, would increase to 20% in another decade.

Against this backdrop, it is interesting to compare India’s approach to Propylene and its Derivatives. z Though India accounts for 17% of the global population, its output of Propylene is merely 3%. z Almost the entire Propylene is produced by the conventional routes of steam cracking and refinery FCCs, with no PDH or MTP being seriously contemplated. z Over 95% of the Propylene is used in the production of PP, as very limited volumes are available for other derivatives. z Only some public sector refineries are able to spare small quantities of refinery/chemical grade Propylene for non-polymer applications. Consequently, none of these derivative capacities is world scale in size. All the steam crackers use their Propylene output captively and almost entirely for PP. z As a result, India is a large importer of each of the first

generation derivatives of Propylene (including Oxoalcohols, Acrylonitrile, Acrylic Acid, Propylene Oxide, Isopropyl Alcohol, Ethylene Propylene Rubbers and Propylene oligomers). In addition, India imports large volumes of second and third generation derivatives, including Phenol, Acetone, Bisphenol A, Polycarbonates, Epoxy Resins, Polyols, Acrylic Esters, Super Absorbent Polymers and Poly Methyl Methacrylate.

If these volumes were to be converted into equivalent Propylene, the Indian average for the consumption of Propylene, when split between PP and non-polymer applications, would approach the global level.

Most leading Governments and Petrochemical industries have sharply defined strategies for this

and “Make for India” are the focal areas of the new Government, what could be the strategies that could be considered for enhancing the availability of Propylene to augment production of its derivatives?

Some suggestions: z A detailed study could be made of all the existing refineries to facilitate maximization of Propylene yields and recovery by following newer technological developments. z A master plan could be made to project capacities needed for PP and each of the non-polymer derivatives of Propylene over the next 15 years. Based thereon, capacities could be identified for each PCPIR, starting with Propylene. z In case the master plan reveals inadequacy of Propylene for meeting the downstream

for Propylene from renewable sources and for its derivatives. z Countries abroad have followed successfully the model of “Condominium crackers” and “integrated crackers” wherein certain volumes of building blocks, such as Ethylene, Propylene, Butadiene and Benzene are made available under long term contracts to mid-sized downstream companies which focus on specific derivatives. While this preserves the integration of the cracker product slate, it provides opportunities to other companies specializing in specific end products, thus reducing the investment burden on the cracker project. India’s master plan could draw from the experience of these projects implemented abroad. z It is also interesting to note that

At a time when “Make in India” and “Make for India” are the focal areas of the new Government, what could be the strategies that could be considered for enhancing the availability of Propylene to augment production of its derivatives? sector. China’s concerted move towards MTP, the US shift to Shale gas (resulting in new PDH capacity), Singapore’s cluster in Jurong Island facilitated by its Economic Development Board (EDB) and Saudi Arabia’s petrochemical plans are some examples of this approach.

In this context, it is relevant to ask what strategy the Ministry of Chemicals and Fertilisers has developed (jointly with the Ministry of Petroleum and Natural Gas) for Petrochemicals in general and Propylene derivatives in particular for India. While there have been references to PCPIRs and Anchor Tenants for over a decade, there is no tangible progress (even after considering Dahej, as it does not seem to have met any stated objectives of a PCPIR).

At a time when “Make in India”

demand, other options could be considered. These include import of Propane (for PDH), import of Propylene by setting up terminals (as done for LNG) and setting up of refineries with a petrochemical orientation (as done in Jamnagar). z In addition, the concept of Reverse SEZ, under which the building blocks (Methanol and Propylene) and even some first generation derivatives, such as Cumene, could be made in resource rich countries, such as Iran, parts of the Middle East and North Africa, could be pursued aggressively. These could then be imported into India for further value addition. z The CSIR, with its vast network of laboratories and assets, could be challenged to develop economically viable processes

in most advanced countries producing petrochemicals in large volumes, including China, Saudi Arabia and Singapore, Foreign Direct Investment (FDI) has played a catalytic role in the growth of the industry. This is a serious lacuna for the Indian petrochemical industry, which has virtually no FDI, and calls for introspection.

The initial announcements from the Government clearly show its commitment to develop India’s manufacturing sector. The time is now opportune to compile not merely a broad Policy for Chemicals and Petrochemicals, but a clear roadmap, prepared by the Government and the industry jointly, with very well defined targets and milestones for feedstocks, building blocks, each of the derivatives and their capacities. z CHEMICAL NEWS JANUARY 2015 z 13

MR. S. R. LOHOKARE ADDRESSING THE DELEGATES. SEATED TO HIS RIGHT IS MR. H. S. KARANGLE, DIRECTOR GENERAL ICC AND TO HIS LEFT IF PROF. V. V. MAHAJANI.

TWO-DAY REFRESHER COURSE ON SEPARATION PROCESSES

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NDIAN CHEMICAL COUNCIL (ICC) organised a Two-day Refresher Course on “SEPARATION PROCESSES” on 21 – 22 November 2014 at GRAND HOTEL, Ballard Estate, Mumbai.

Mr. S. R. Lohokare, Chairman, Technology & Energy Expert Committee of ICC in his brief address explained purpose and the importance of the refresher course.

Prof. V. V. Mahajani and Mr. Shreedhar M. Chitanvis, Members of the Technology & Energy Expert Committee of ICC, were the Coordinators for the program.

The 2-day course focused on Reactive Separation, Membrane Separation, Distillation, Adsorption, etc. Reactive Separation is a powerful tool in the hands of Process Engineers to accomplish separation of desired component(s) in a very 14 z CHEMICAL NEWS JANUARY 2015

PROF. V. V. MAHAJANI MAKING THE PRESENTATION

A PART VIEW OF THE DELEGATES

cost effective way.

Prof. Mahajani made presentation on “Reactive Separation covering Excursion to Basics and study on CO2 Absorber Process Design Simplified”.

Dr. B. Chakravorty, Managing Director, Genesis Membrane Sepratech P. Ltd. in his presentation dealt with“Membrane Processes with special reference to Liquid Liquid Separation” which also covered basics of Membrane Filtration, Nano Filtration, Reverse Osmosis, Membrane types and their industrial applications. Dr. Chakravorty also informed the delegates about pilot trials and system design with couple of cases studies.

Mr. Kedar Oke, Head-Mktg & Sales Terminal, Lanxess India

DR. M. O. GARG MAKING THE PESENTATION ON THE 2ND DAY OF THE REFRESHER COURSE.

Private Limited made presentation on “Unit Operation viz. Adsorption: Functionalized Polymers”which included basic theory of Adsorption, how to regenerate, aspects of Process Design illustrating this

by Functionalized Polymers, their application in de-metallation of aqueous stream from toxic metal contaminants as well as case study on Copper Removal.

Dr. M. O. Garg, Director, Indian Institute of Petroleum has participated in the Refresher Course and shared the Fundamentals of Solvent Extraction, Application of Solvent Extraction in Oil Refining and Petrochemicals, Recovery of BTX from Reformate and Pyrolysis Gasoline and Recovery of Benzene from FCC Gasoline, etc. Dr. Gard also dealt with the Recovery of Benzene based on project carried out for Reliance Industries Ltd, Jamnagar recently. This was a very

good case study on how a lab data can be scaled up to be commercial unit which is done first time in the world.

Dr. Nilesh A. Mali of National Chemical Laboratory, in his presentation on “Divided Wall Distillation Systems” covered the Conceptual introduction, Current state of art, Column Hydraulics, Challenges in adopting this technology, Mathematical Modeling of Divided Wall Distillation Column.

Dr. P. D. Vaidya of Institute of Chemical Technology (ICT -Mumbai),presented the topic on“Experimental Determination of Equilibria”.

At the end of the 2-day program, CERTIFICATES were distributed to the participants and Mr. Sreedhar M. Chitanvis, Member, Technology & Energy Expert Committee, ICC, proposed a customary vote of thanks.

CHEMICAL NEWS JANUARY 2015 z 15

AWARENESS PROGRAM ON “CHEMICAL WEAPONS CONVENTION”

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WC Help Desk of Indian Chemical Council (ICC) with the support of Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers, Govt. of India, organised CWC awareness programme on Thursday, 25th September 2014 in Conference Room of Gujarat Dyestuff Manufacturers Association, Ahmadabad.

The main objective of the programme was to make the participants aware on declaration related provisions of CWC, e-filing and implications of errors in the information provided in declarations. All the participants were (a) Members of Young Entrepreneur Committee (YEC) of GDMA and (b) CEO’s/Directors from OCPF declaring facilities.

Mr. Prashant Patel, Chairman YEC formally welcomed and introduced Mr. Anand Kane, In Charge CWC Help Desk and Mr. Y. P. Saxena, Secretary, ICC, Gujarat. Self introduction by the participants followed.

Mr. Anand kane first showed a recently made 6 minute video “ OPCW Corporate Video” depicting history of use of chemicals as chemical weapons (CWs) during World War I between 1915-1917, continued use of CWs in 20th Century that caused death of 90000 people, signing of CWC, establishing of OPCW and its working and destruction of CWs. Video also discussed on OPCW’s activities in promoting peaceful use of chemistry and organising various programmes towards “working together for world free of Chemical Weapons”. It was informed that more than 80% of CWs stock pile and 60% munitions have been destroyed till now.

There are 190 Member States to CWC. The latest State to join the treaty is Syria. It was also informed that 16 z CHEMICAL NEWS JANUARY 2015

OPCW was awarded “Nobel Peace Prize for 2013” for its achievements.

The next Power Point Presentation on e-filing followed by “live demonstration of e-filing of OCPF declaration” was given to the participants by Mr. Anand Kane. At the outset, benefits of the system to the users were explained. The main emphasis was given on securely keeping the e-filing credentials, providing correct and complete user details like name of company, address, e-mail ID, number of plants, unit of weight, production range, product group code and activities conducted at the site. Participants were also informed on Do’s and Dont’s during and after e-filing and the precautions to be observed before freezing the declaration. All the Participants being from existing declaring facilities found this deliberation quite useful.

Participants were also informed in detail on the common mistakes committed in filing declarations.

They were specifically explained a common problem of “confusion over the status of PSF- chemicals in relation to Discrete Organic Chemicals (DOCs)”.

Participants were communicated that DCPC is planning to modify e-filing system to make it more user’s friendly - a step towards providing error free declarations.

A brief session on “sharing of inspection experience” by a representative of industry that was inspected for “Other Chemical Production Facilities” was arranged for the benefit of the participants. The participants were informed to be attentive on the correctness of information provided in declarations. It was also made known to them that there is no impact on plant operation and routine activities of the plant site because of inspection.

Participants very much welcomed the feedback.

Soft copy of updated CWC Handbook, Guidelines on

e-filing and a detailed write up on “Common mistakes in filing OCPF Declarations” was given to each participant.

There were 22 participants to the programme.

Mr. Y. P. Saxena informed the participants on the provisions of CWC and that of CWC Act-2000. Participants were also informed on the implications of providing incomplete and inaccurate information in declarations.

Question and answers session followed the presentations.

Mr. Prashant Patel, Chairman, Young Entrepreneur Committee (YEC) of GDMA thanked Mr. Anand Kane and Mr. Y. P. Saxena on behalf of Committee members for imparting beneficial information.

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WC Help Desk of Indian Chemical Council (ICC) with the support of Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers, Govt.of India, organised CWC awareness programme (CWCAP) on Friday, 14th November 2014 in the conference hall of Vapi Industries Association (VIA), Vapi. The programme covered declaring facilities from Vapi, Sarigam, Valsad and Surat. There were 40 Participants, all from existing declaring facilities, 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.

Mr. Anand Kane formally welcomed the participants and the Chief Guest Mr. Kirit Shastri, Hon. Secretary Vapi Industries Association, Mr. Shastri was requested to address participants.

Mr.Shastri expressed that most of industries are of the opinion that when they are not engaged in Chemical Weapons activities why are they being asked to file declarations, and requested Mr.Kane to explain to participants as to why OCPF declarations are required.

He further informed the audience to take advantage of CWC Help Desk’s expertise in meeting their statutory obligations. He reminded participants to comply with declaration requirements.

Mr.Kane informed participants about functions of CWC Help Desk, discussed the contents of course documents that were sent to each declaring facility of the region 10 days before CWAP. Information was given, on contents of CWC Handbook, “confusion over the status of PSFchemicals in relation to Discrete Organic Chemicals (DOCs)” and details on SCOMET regulations with respect to import/export of schedule chemicals to State Parties and Non State Parties.

Help Desk has since discontinued distribution of hard copies of CWC Handbook and other relevant programme documents to participants. Three sets of hard copies of documents have been given for the library of Industries Association of Vapi, Sarigam and Surat for reference purpose.

CHEMICAL NEWS JANUARY 2015 z 17

Participants were showed a recently produced 6 minute video programme titled as “OPCW Corporate Video” showing history of use of Chemical Weapons and OPCW’s role in destruction of Chemical Weapons (CW) and the statistics.

Mr. Kane thereafter gave a quick overview of CWC through a Power point presentation. Details on schedule chemicals, declaration criteria, declaration threshold, frequency and timeline of submitting declarations were communicated.

The next Power Point Presentation was on e-filing, followed by “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, by 30 Nov 2014. 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 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. Two representatives of industries that were inspected (Schedule 3 and OCPF) in the past shared their inspection experience. Representatives informed the participants to ensure that declaration is error free. They were also informed that plant sites receive good cooperation from National escorts throughout inspection process and that there is no impact on plant operation and routine activities of the plant site because of inspection. This exercise was conducted as part of confidence building measure.

Mr.Y.P. Saxena, Secretary, ICC Gujarat informed participants on provisions of CWC Act -2000. He also informed the participants on the consequences of 18 z CHEMICAL NEWS JANUARY 2015

non compliance of the provisions of CWC Act -2000.

Information on appointment of Enforcement Officers and enforcement measures for implementation of Act was also given. He also emphasised that pertinent Officer from the industry should be deputed to participate in CWCAP. Q & A session was interactive.

The programme ended with vote of thanks by Mr.Y.P. Saxena. He thanked participants for their time and interactive approach. VIA and its staff was also thanked for making its conference hall and necessary paraphernalia available for CWCAP.

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WC Help Desk of Indian Chemical Council (ICC) with the support of Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers, organised CWC awareness programme (CWCAP) on Wednesday, 26th November 2014 in the conference hall of Centre of Excellence of Vatva Industries Association (VIA), Vatva, Ahmadabad. The programme was attended by representatives of declaring facilities from Vatva, Odhav, Naroda and North Gujarat. There were 47 Participants, all from existing declaring Facilities.

The gist of the programme was to make industry aware on filing complete and accurate declarations and on implications of errors in the information provided in declarations.

Ms. Aarat Sheth, Head-Events, ICC, Gujarat formally welcomed the participants and the Chief Guest Mr. Rakesh Patel, President Vatva Industries Association. Mr. Rakesh Patel in his address to participants emphasised on filing of correct declaration and take full advantage of the information given during the Programme and understand the declaration requirements.

Mr. Kane of CWC Help Desk informed participants about functions of CWC Help Desk and discussed the contents of documents that were sent to each declaring facility of the region, a week before CWCAP. Information was given on contents of CWC Handbook and on SCOMET regulations with respect to import/export of

schedule chemicals to and from Member countries and non Member countries to CWC. Participants were also informed that distribution of hard copies of CWCAP documents has been discontinued as a part of Ecofriendly measure.

The next was Power Point Presentation by Mr. Kane on “Guidelines on e-filing”, followed by “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 caused in providing information, and reason for submission of declarations by Other Chemical Production Facilities falling in production range of B32 and B33, by 30 Nov 2014. Clarification was also given on guidelines on implementation of ISO 9001:2008 by DCPC and formation of a Committee by every declaring facility.

Participants were communicated that DCPC has modified e-filing forms to make these more user’s friendly.

Consequences of providing of incomplete and inaccurate information in declarations were discussed. A case study with respect to inspection of non inspectable plant site was also deliberated.

Three representatives of industries that were inspected (OCPFs) in the past shared their inspection experience. Participants were informed that inspections are not intrusive and that the plant site receives required support from National escorts throughout inspection process. There is no impact on plant operation and routine activities of the plant site because of inspection.

Representatives also informed that the International inspectors are very particular in pointing errors in declarations.

Participants were showed a recently produced 6 minute

CHEMICAL NEWS JANUARY 2015 z 19

video programme titled as “OPCW Corporate Video” showing history of use of Chemical Weapons and OPCW’s role in destruction of Chemical Weapons (CW) and the statistics.

Q & A session was interactive.

The programme ended with vote of thanks by Ms. Aarat Sheth, Head-Events, ICC, Gujarat. She thanked participants for their interactive approach. VIA and its staff was also thanked for making its conference hall and necessary paraphernalia available for CWCAP.

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ndian Chemical Council & the Department of Chemicals & Fertilizers (DCPC), Ministry of Chemicals & Fertilizers jointly organized an awareness program on “Chemical Weapons Convention” on 17 December 2014 at “The Golden Park”. 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. B. Chattopadhyay, Chairman, ICC-Eastern Region extended a warm welcome to the delegates & hoped for an interactive session ahead. He outlined the importance of CWC Awareness Program ICC is conducting all through India and helping the Govt. of India to entirely eliminate chemical weapons of mass destruction and to prevent their re-emergence. He also said that CWC is a global arms control agreement which outlaws production, stockpiling & use of chemical A SECTION OF THE PARTICIPANTS IN KOLKATA

20 z CHEMICAL NEWS JANUARY 2015

MR. B. CHATTOPADHYAY, CHAIRMAN, ICC-EASTERN REGION, DELIVERING THE WELCOME ADDRESS.

weapons. He also mentioned that India has achieved commendable progress in this World peace process and the awareness program in today’s complicated world is of critical importance. Scientific inventions are mostly guided by man’s desire to explore the unknown whereas the utilization or (mis) utilization of the fruits of these inventions depends largely on Global collective political leadership.

The inaugural session was followed by the Technical

Session wherein Mr. Abhijit Chakraborty, In-charge, 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 & 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 & 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, the interactive session was found to be extremely responsive.

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CC - CWC Help Desk with the support of Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers, organised CWC awareness programme (CWCAP) on Wednesday, 12th December

2014 at Roha Industries Association (RIA) Conference Hall, Roha, MIDC. The programme was attended by representatives of declaring facilities from Roha, Mahad & Lote Parshuram. There were 35 Participants, all from existing declaring Facilities.

The emphasis of the programme was to make industry aware on submitting complete, accurate and timely declarations and on implications of errors in the information provided in declarations.

Mr. Kini of RIA in his address thanked ICC and GOI for arranging CWCAP for the benefit of the industry.

Mr.R.R. Gokhale, Secretary General, ICC formally welcomed the participants. Mr. Gokhale in his address to participants emphasised on filing of correct declarations and take full advantage of the pertinent information given by Mr. Anand Kane, In charge CWC Help Desk and understand the declaration requirements. He also encouraged participants to clarify all the doubts regarding filing of declarations. Mr.Gokhale discussed amendment of CWC Act- 2000, that became effective in the latter half of 2012, its penal provisions and consequences of non compliance.

Mr. Kane informed participants about functions of CWC Help Desk and discussed the contents of documents that were sent to each declaring facility of the region, two weeks before CWCAP. Detailed Information was given on contents of CWC Handbook, particularly on confusion over the status of PSF- chemicals in relation to Discrete Organic Chemicals (DOC) and on SCOMET regulations with respect to import/export of schedule chemicals to and from Member countries and non Member countries to CWC. Participants were also informed that distribution of hard copies of CWCAP documents has been discontinued to reduce paper usage.

The next was Power Point Presentation by Mr.Kane on “Guidelines on e-filing”, followed by “live demonstration of e-filing of OCPF declarations”.

Information on required data to be entered in every field of declaration form was given in detail.

Participants were simultaneously informed on common mistakes caused in providing information, and reason for submission of declarations by Other Chemical Production Facilities falling in production range of B32 and B33, by 30 Nov 2014. Clarification was also given on guidelines on implementation of ISO 9001:2008 by DCPC and formation of a Committee by every declaring facility. Participants were communicated that DCPC has modified e-filing forms to make these more users friendly.

Consequences of providing of incomplete and inaccurate information in declarations were also discussed.

Deliberations were quite interactive. Participants asked questions like need for mentioning molecular formula and production quantity of each product in the declaration.

CHEMICAL NEWS JANUARY 2015 z 21

Queries were also raised on declaration threshold, calculating aggregate amount of production, configuration of plant, product group code, production range, production by synthesis, definition of DOC, declaration requirement for consumption of schedule 3 chemical, frequency of inspection of a plant site, Registration by industry etc. etc.

Each of the questions raised was answered to the participant’s satisfaction.

A recently produced 6 minute video programme titled as “OPCW Corporate Video” showing history of use of Chemical Weapons and OPCW’s role in destruction of Chemical Weapons (CW) and the statistics was screened.

Industry representatives were also briefed on their rights and obligations towards compliance of CWC Act2000.

The programme ended with vote of thanks by Mr. R. R. Gokhale, Secretary General, ICC. He thanked participants for their time and interactive approach. RIA and its staff were also thanked for making its conference hall and necessary paraphernalia available for CWCAP.

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WC Help Desk of ICC with the support of Department of Chemicals & Petrochemicals (DCPC), Ministry of Chemicals & Fertilizers, GOI organised CWC awareness programme (CWCAP) on Saturday, 13th December 2014 at Hotel Tanish located within Taloja MIDC. The programme was attended by representatives of chemical industry including declaring facilities from Taloja,Mahad,Ratngiri, Solapur and Goa. There were 25 Participants, mostly from existing declaring Facilities.

The main focus of the programme was to sensitize participants on submitting error free and timely declarations and on implications of errors in the information provided in declarations.

Mr.R.R. Gokhale, Secretary General, ICC formally welcomed the participants. Mr. Gokhale in his address to participants emphasised on filing of correct declarations and take full advantage of the expertise of Mr. Anand Kane, in charge CWC Help Desk. He informed participants to clarify even the smallest doubt with respect to providing of CWC declarations and related information. Mr. Gokhale gave information on Amendment of CWC Act- 2000 that came into force from Sept. 2012, appointment of Enforcement Officers,its penal provisions and consequences of non compliance.

Mr. Kane informed participants about functions and responsibility of CWC Help Desk and deliberated the contents of documents that were sent electronically to each declaring facility of the region two weeks before CWCAP. Detailed Information was given on contents of CWC Handbook, particularly on the status of PSFchemicals in relation to Discrete Organic Chemicals(DOC), 22 z CHEMICAL NEWS JANUARY 2015

schedule chemicals, declaration thresholds, countries not members to CWC and on SCOMET regulations with respect to import/export of schedule chemicals to and from Member countries and non Member countries to CWC. Point by point explanation was given on the common mistakes committed and Do’s and Don’ts with respect to information to be provided in declarations. Participants were also informed that distribution of hard copies of CWCAP documents has been discontinued as pro environment initiative.

Participants were informed to follow a set communication procedure in communicating with DCPC and CWC Help Desk for quick and effective response.

A Presentation was given by Mr. Kane on “Guidelines on e-filing”, followed by “live demonstration of e-filing of OCPF declarations”.Information on required data to be entered in every field of E-declaration form was given in detail. Participants were also informed the reason for early submission of declarations by Other Chemical Production Facilities (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 every declaring facility. Participants were communicated that DCPC has modified e-filing forms to make these more users friendly.

Implications of providing of incomplete and inaccurate information in declarations were also discussed. Industry representatives were also briefed on their rights and obligations towards compliance of CWC Act-2000.

Deliberations during the session were quite interactive.

Participants raised queries such as declaration of activities like distillation, fermentation,mixing etc as OCPFs. Questions on mixed plant sites and production range of schedule 3 and OCPFs, Product Group Codes, aggregate production and configuration of plant were also raised. Information on Registration by industry was also sought.

All the queries were answered to the participant’s satisfaction.

A recently produced 6 minute video programme titled as “OPCW Corporate Video” showing history of use of Chemical Weapons and OPCW’s role in destruction of Chemical Weapons (CW) and the statistics was screened.

Industry was suggested that CWC Help Desk shall organise a two day camp in areas where concentration of CWC relevant industries/declaring facilities is more.

This will be done to assist industry to file on the spot declarations to minimise/eliminate errors.

An Other Chemical Production Facility was assisted in filing and freezing Annual Declaration on Past Activities-2014 The programme ended with vote of thanks by Mr.R.R. Gokhale, Secretary General, ICC. He thanked participants for their enthusiastic and interactive approach. He also thanked Taloja Industries Association for its support.

DRIVER TRAINING PROGRAM ON SAFE TRANSPORTATION OF HAZARDOUS CHEMICALS

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n 14th November 2014, Indian Chemical Council, Southern Region, organized a Driver Training Program on SAFE TRANSPORTATION OF HAZARDOUS CHEMICALS, in association with Pure Chemicals Co., Chennai. Thirty nine participants from various member companies participated in the program.

Dr. M. Surianarayanan, Principal Scientist, Cell for Industrial Safety and Risk Analysis, CLRI Chennai was the distinguished Guest. Dr. M. Surianarayanan,is also the Chairman of Safety, Health and Environment Expert Committee of ICC-Southern Region.

Mr. T.T. Sridhar, Pure Chemical Co. who was coordinating the programme welcomed the participants followed by key-note address by Mr. S. Srinivasan, DirectorOperations, Pure Chemicals Co. The programme was inaugurated by Dr. M. Surianarayanan. In his inaugural address, he insisted the need for such refresher training course for understanding the hazardous nature of the chemicals being transported and the recent amendments in rules and regulations of Road Transportation. Dr. Surianarayanan also highlighted ICC’s initiatives towards Safe Transportation of Hazardous Cargo (Nicer Globe Project) and distributed the flier with a request for active participation of the companies.

The following topics were covered in the Programme.

1 Defensive Driving.

2 Advanced Driving Skills.

3 Product Safety.

4 UN Panel 5 Product Information 6 Emergency Procedure.

Mr.V.S. Balasubramanian of M/s Ashok Leyland Drivers Training Institute, Namakkal was the faculty. The program

was conducted in the local language (Tamil) for the benefit of the participants.

At the end of the program, the participants expressed their satisfaction with the way the programme was conducted. Many of them said that this was a good opportunity to learn/refresh and understand the hazards associated during transportation of hazardous materials.

After the programme, there was an interactive session which went on well with the participants with their good response. Certificates were issued to all the participants.

The programme ended with a vote of thanks by Mr.K. Kalyanaraman, Regional Secretary, ICC-SR, Chennai.

Mr.T.T. Sridhar, Manager Safety and Quality of Pure Chemicals Company and the staff members of the company coordinated well for smooth conduct of the programme. z CHEMICAL NEWS JANUARY 2015 z 23

CHEMICAL NEWS JANUARY 2015 z 25

DR. STAN HIGGINS’ COLUMN

BREAKTHROUGH INNOVATIONS OFTEN ARISE VIA INCREMENTAL IMPROVEMENT

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he MIT Technology Review annually announces its top 10 breakthrough technologies.

Each year I take a look at the list and become ever more amazed at the predicted achievements of human kind. MIT’s list can be viewed on the web site www. technologyreview.comand is aimed at bringing to our attention innovations that may become true milestones.

However my reflection on the list makes me more and more aware that these innovations are brought to the attention of the public, the ultimate consumer or user, without explaining any of the underpinning or enabling technology. Such lists have become one of the reasons why the public at large under appreciate the importance of chemistry.

The MIT 2014 list of breakthrough technologies is full of chemistry and process engineering. One thing is certain they will never come to market without the chemical sciences. The MIT topic here is followed by my chemistry comment.

Agricultural Drones polymers and metals, Ultraprivate Smartphones 26 z CHEMICAL NEWS JANUARY 2015

electronic chemicals and polymers, Brain Mapping medicinal chemistry and electronic chemicals, Neuromorphic Chips metals and electronic chemicals, Genome Editing biochemistry, Microscale 3-D Printing polymers and inks, Mobile Collaboration electronic chemicals and polymers, Oculus Rift metals, polymers and electronic chemicals and even the computers needed to run the big data programmes need the chemistry based materials mentioned above.

Looking back in time though, innovations that look like breakthrough technologies have in fact been a long time in their gestation. In fact many of the so called breakthroughs are achieved and are often highly dependent on supporting technologies that have been incrementally improved.

A good example of this in energy intensive industries like the chemical industry is the “Organic Rankine Cycle”(ORC) where over many years step changes have been made resulting in new &innovative solutions to industry.

NEW ORC OPPORTUNITIES FOR INDUSTRY The Rankine Cycle,a 19th century idea developed to describe the thermodynamics of steam generation was named after William Rankine. It still describes the most important means of producing power for electricity production today. The chemical development of organic fluids for heat transfer in the 20th century has resulted in the development of the “Organic Rankine Cycle” (ORC). The incremental development of new organic fluids with different thermodynamic characteristics has enabled power to be produced from lower and lower temperature heat sources. Today in the 21st century this brings an opportunity for the chemical and related process industries which often have significant quantities of waste hot water or low grade steam as some of this energy can now be recovered. This is an example where incremental innovation has enabled a break-through in technology that enables chemical plants and other industrial units to be even more

efficient and cost effective. Whilst also providing one of the solutions our industry needs to reduce its climate change emissions. Within the footprint of the NEPIC Cluster in the UK this technology is being implemented by DRD Power. DRD will be coming to India March 2015 to participate in the NEPIC Delegation at the 2015 ICC India Outlook Conference.

By using an ORC, DRD Power, a Northeast England engineering consultancy, has developed a process for recovering vast quantities of low grade (i.e. low temperature) heat from a varying range of process industries, and turning this waste into electricity. DRD Power’s ORC units produce electricity from waste heat streams at temperatures as low as 90ºC. This temperature is significant because the process industries discharge large amounts of heat at low temperatures. An additional benefit is a reduction in CO2 emissions. Such ORC units produce electricity on site, ready to use, thus improving the manufacturer’s energy efficiency, reducing carbon emissions from the process and reduced utility costs. Alternatively, the electricity generated can of course, be exported to the local power grid. Further benefits may also be achieved as the loads on cooling towers and condensers can be reduced.

Furthermore DRD Power has designed and built a transportable, modular demonstration unit suitable for the process industry that takes waste heat and generates an electric power output in the range 75kW to 130kW. This can easily be scaled to 1 MW power generation. Currently they have an ORC unit that is in continuous operation at a Teesside chemical manufacturing site utilizing waste hot water as the heat source. Both unit and manufacturing site data confirm a reduction in site electricity consumption, a reduction in the site carbon footprint and financial

THE ORC UNIT OPERATING ON TEESSIDE IN THE UK

savings as a direct result of not purchasing electricity.

This particular ORC technology has not been applied before to the process industries waste recovery because of the previously low energy costs and the lack of understanding and operating experience of ORC units. DRD Power has now gained significant knowledge in the important factors to consider when specifying an ORC unit and can supply ORC units with an attractive payback. This is a breakthrough that can now provide a practical and economic solution to a widespread problem of recovering energy from low grade heat, producing valuable electricity without generating additional carbon dioxide. The applications and sectors for ORC are numerous and can include chemical industry, oil and gas, cement, iron and steel, glass, power, anaerobic digestion, biomass, geothermal and solar. Typically 50-60% of the heat consumed in manufacturing processes is discarded as waste heat and this represents a huge opportunity to reduce energy costs and CO2 on a global scale.

ORC PRACTICAL DETAILS Some of the benefits include payback < 3 years, low temperature operation, power output increase with temperature, excellent load following characteristics, 24/7 operation, easy push button start up or remote, closed cycle - zero emissions, no toxic or flammable substances, modular construction, easy installation, low maintenance, CO2 free electric power, no process

risks and wireless 3G remote monitoring.

A typical working performance would look like: HOT WATER: Electrical Output Gross 125kWe; Hot Water Temperature 95°C; Hot Water Flowrate 72 m3/h Condensing Temperature 21°C LOW PRESSURE STEAM: Electrical Output Gross 250kWe; Inlet Steam Temperature 110°C; Steam Flowrate 5 tph; Condensing Temperature 21°C STEAM: Electrical Output Gross 500kWe; Inlet Steam Temperature 130°C; Steam Flowrate 9 tph; Condensing Temperature 21°C

THINK INCREMENTAL As far as the chemical process industry is concerned radical innovation, often derived from blue sky thinking, can be effective but is very high risk. The vast majority of blue sky projects however never get a return. Incremental innovation may not bring one off economic windfalls but on the other hand do not put a company’s whole existence at risk.

A company culture of identifying and driving through incremental improvements can still bring in breakthrough achievements. Small gains can soon add up to big wins.

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 JANUARY 2015 z 27

CHEMISTRY WITH A PURPOSE DELIVERED BY A RESPONSIBLE INDUSTRY MR. RAVI RAGHAVAN, Editor – Chemical Weekly& Member, Editorial Board - CHEMICAL NEWS

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he Confederation of Indian Industry recently organised a one-day conference to highlight the ubiquitous nature of chemicals, as part of a concerted effort to communicate the role & relevance of chemistry & the chemical industry to modern living and society. This is a commendable initiative that must go beyond addressing industry stakeholders – who are already converts – and reach out to broader society. This is admittedly a difficult, timeconsuming and not inexpensive proposition, but one well worth doing if the chemical sciences are to continue to attract students seeking a career and if industry is to find enablers for growth.

EVERYWHERE AND IN EVERYTHING….

Chemicals are everywhere and in everything. It is the stuff of life, and all encompassing. The air we breathe, the water we drink, the food we eat and the clothes we wear are all creation of chemistry – natural or synthetic. Chemistry is a great enabler of all sorts of things that we today take for granted: electronics & electricals, membranes & materials, herbicides & herbal extracts, paints & plastics, to name just a few.

Chemistry feeds, clothes, lights, 28 z CHEMICAL NEWS JANUARY 2015

lightens, cures, cleans, energises and embellishes the world. It reduces the complexity of buildings, lessens the weight of planes & cars, alleviates pain & suffering, and preserves food & crops.

Arguably, no science has made as great an impact as chemistry.

It is, as Prof. M.M. Sharma says, both the queen and servant of biology. While space missions have been made possible by physics and mathematics, the probes they carry seek answers of chemistry – be it the composition of alien atmospheres, comets or inhospitable planets. Clues to the possible existence of extra-terrestrial life will most likely come from detecting organic molecules and minerals – the stuff of chemistry!

ROLE IN ENHANCING FOOD SECURITY …

Chemistry’s role in enhancing food security, in particular, can never be overstated in a populous and poor country like India. If it were not for the Haber-Bosch process – for producing ammonia (and then urea) literally out of thin air – Malthusian predictions of doom and widespread famine could well have been a reality. Agrochemicals used in milligram quantities are now capable of warding off pests, and remarkably distinguish between a weed and the desired plant, even where the naked eye cannot (as in a flooded rice field). The positive impacts of these developments in chemistry – in terms of yield improvement and

efficient use of soil nutrients – are immense, but poorly communicated to and understood by the commonman. Post-harvest food preservation – a vital but neglected area in India – is only possible through the judicious use of chemicals. Getting fresh produce to consumers with its vitality intact requires not just a cold chain – impossible without chemistry – but also packaging. Polymers play a tremendous role here, but it is unfortunate that this is only recognised in the waste generated.

… AND IN PURIFYING WATER It is chemistry that makes humble water fit to drink or for use in industrial processes. Starting from simple chlorination – which has saved more lives than most medical interventions – to membrane processes to remove soluble salts to levels of a few parts per billion, and treatments for turning brackish & saline water potable, chemistry plays an unheralded and unappreciated role.

The simple act of hand-washing with soap – one of the earliest products of the chemical industry – has saved more lives than most drugs. If medical science is able to stay one step ahead of deadly bugs it is due to chemistry. While the first antibiotic – penicillin – was a serendipitous discovery of biology – it is the directed tweaking of the structure of this molecule through chemistry that has provided a cornucopia of antibiotics in the armoury of doctors today. The call for a Swacch Bharat by the Prime

Minister will need all the might chemistry has to offer.

REACHING OUT TO THE YOUNG For all of its virtues, the irony is that chemistry earns a bad rap.

The immediate connotations of the

term ‘chemicals’ are almost always negative, and this is what the CII campaign is hoping to set right.

This is an ambitious exercise, but one that is very much needed. All stakeholders, including industry and government, must support it.

Attempts to alter deep-set perceptions of chemistry and of the chemical industry need to start young – at the school level when impressions are formed and interests sparked. Teachers have an important role to play in igniting young minds to the wonders of chemistry, but need to be aided by a contemporary curriculum that presents a balanced perspective of the contributions of chemistry.

Experiments can be designed to entertain and educate, and need not necessarily be confined to a laboratory. A commendable initiative by scientists at the Tata Institute of Fundamental Research in Mumbai, called ‘Chai and Why’ takes science (not just chemistry) to the masses. The simple experiments use common tools, as found in a kitchen, to demonstrate scientific principles in a manner that makes for fascinating watching. Likewise, scientists at National Chemical Laboratory in Pune carry out outreach programmes. The idea behind all of these efforts is to bring

in the ‘wow factor’ and put fun into fundamental research. But they need to be amplified many times over if they are to have an impact.

Resources for such enhanced efforts need not only come from government; industry and industry associations should extend a

from nearby schools could be brought in to see for themselves the wonders of chemistry. This column has had the fortune of visiting a communication centre created by Bayer at their site in Leverkusen (Germany) and amazed to see tens of school children playing and

welcome hand – for selfish, if not altruistic reasons.

learning, and often unable to see the difference! Surely at least a couple of companies in India can afford to set up something similar?

The Institute of Chemical Technology in Mumbai has an excellent ‘Hall of Fame’ highlighting stellar achievements in chemical technology, but is tucked away deep in the corridors of the institute and not accessible to outsiders. Can officials consider bringing in school children, say once a week, for a guided tour of this inspirational facility? Can the Indian chemical industry come together to fund something akin to the Chemical Heritage Foundation in the US to document and celebrate chemical sciences?

LEVERAGING MEDIA ….

The chemical industry must also partner mainstream media, including social media, to communicate the virtues of the industry. Carrying messages only through trade publications (as this one) is akin to preaching to the converted and will serve limited purpose. Captains of industry must take it upon themselves to convey the role of chemistry through consistent, concise and clear opinion pieces and articles.

Regular interactions – and not only when there is a product launch to plug – with editors and senior correspondents of major newspapers and TV networks will pay dividends. It will be a good idea to sponsor open debates in TV channels on the role of chemicals and the industry. Large companies should make outreach to the communities living in the vicinity of their plants an integral part of their operations. Many do, but it is not enough.

… AND OTHER COMMUNICATION TOOLS It will also be a good idea to set up permanent or temporary exhibitions to highlight the positive contributions of chemical sciences. Students

IMPROVE REALITIES, THEN PERCEPTIONS Before setting out to improving perceptions, it is vital to improve realities. Sections of the industry continue to get away with environmentally irresponsible behaviour, and bring a bad rap to the industry as a whole. Every attempt must be made to correct this state of affairs if the industry is not to lose the all-important license to operate – either by actions of regulators or by the legislature. This will be a tragedy and not allowed to happen! Mindsets need to change. Today. z CHEMICAL NEWS JANUARY 2015 z 29

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

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n this column I propose to describe my experience working closely with a small group of mostly Australian scientists and engineers having virtually no industrial experience. The group comprised, apart from me, two Ph.D. Chemical Engineers, one Ph.D. Chemist, one Ph.D. Biotechnologist (who developed the process), two B.E. Chemical Engineers, one B.Sc. Chemist. Everyone, except for me and one B.E. Chemical Engineer from Chennai, had received their education in Australia. I was assigned to lead a unique project and I recruited this group to assist me in this project.

The projectâ&#x20AC;&#x2122;s objective was to develop a commercially viable process to manufacture a naturally occurring dipeptide which has applications as an ingredient in nutritional supplements. An indirect method to synthesize the dipeptide had been developed by the Biotechnologist during his research for a Ph.D. degree in Australia and patent applications had been filed.

The patent described the synthesis method and mentioned possible techniques that could be used to convert the liquid reaction mixture into the final product which was a solid. The techniques described in the patent for downstream processing of the reaction mixture were basically educated speculations and had never been 30 z CHEMICAL NEWS JANUARY 2015

attempted by the researcher. Four chemical reactions were involved in synthesizing the product though the inventive step covered only two of these reactions. The synthesis reaction was enzyme catalyzed and only this reaction had been studied in the laboratory during his doctoral work.

A pilot plant built from mainly used process equipment was installed to develop the process.

The initial installation of the pilot plant was done by contractors. Apart from the usual operations such as reaction, mixing, fluid flow, heat transfer, distillation, filtration, drying and crystallization, the process also involved operations such as adsorption, chromatographic separations, electrochemistry, membrane separations and high speed centrifugation. Physical and chemical properties of our product and intermediates were not available in published literature and we had to develop analytical techniques for the intermediates and product along with methods to measure relevant chemical and physical properties.

We installed a laboratory in a building next to the pilot plant.

We had to equip the laboratory with tables and other associated equipment by dismantling an old laboratory on the site, transporting it to another building and installing it. In addition we had to complete

the piping and other connections in the lab. Our young staff under the direction of the Biotechnologist pretty much equipped the new lab. They literally did all the work of moving and installing tables, fume cupboards, lab equipment, connecting piping etc.

The pilot plant operation required daily movement of materials using forklifts and also manual handling of chemicals. In India this type of work would have been performed exclusively by workmen.

This work was handled entirely by the technical staff as we had no workmen in the sense of blue collar workers. They also ensured that the pilot plant was cleaned daily and they cleaned up the many spills that occurred without my having to ask them to do so.

We had to make many changes in the pilot plant over the duration of the project because most of the processing technologies we started with failed to produce the desired results. At every stage we ended up making multiple changes in the processes. Many of these changes required changing the equipment along with piping. These changes were relatively small so we were unable to interest any contractors to undertake the work. I had to get our young staff to implement all these changes. The work required purchasing components, piping, fittings, valves, fabricating vessels,

supports, and physically installing vessels and piping.

We did succeed in developing a commercially viable manufacturing technology but it took a lot more time than initially anticipated. I found the attitude to work quite different compared to what we experience in India. Not once was I ever told that this is not our job. We used to collect all garbage in bags three locations – this included food garbage as well. Every week the staff would pick up the bags, tie them and place them inside a large bin which would be emptied weekly by a garbage collection service. I was surprised at the mechanical skill of these people.

I found that in high school they can learn skills such as operation of drills, grinders, lathes, plumbing, carpentry etc. Many of the technically

oriented students do take these courses and are more than willing to apply this knowledge when required.

I do not believe that university level engineering courses in Australia are that much superior to those offered in India’s better engineering colleges. They certainly are not comparable to the top US or UK universities. However the training in trades is excellent. The electricians,

welders, fitters, carpenters are generally very good and possess skills that are at least comparable and at times better than engineering graduates of second and third tier engineering colleges. Tradesmen here are accorded the same level of respect as qualified engineers and scientists. In fact the Indian PM actually mentioned this aspect in his recent speech in Sydney.

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 Landau’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 JANUARY 2015 z 31

32 z CHEMICAL NEWS JANUARY 2015

INSIGHTS ADD DEPTH TO QUALITY PRACTICES This article gives comprehensive insights so as to add depth and improve the understanding of quality practices, on a free-wheeled question-answer format.

Q-2 OM P. GOYAL opgoyal@yahoo.com

E

xperience reveals a rapid change in the formal practice of Quality. It also reveals a decline in its understanding, largely attributed to the growth of too many concepts and activities. Inevitably and routinely, this has generated a series of partial or ambiguous knowledge chunks. The following commonly encountered questions and their answers project a better and more coherent understanding of the subject.

Q-1

How old is the practice of quality?

Many People believe that the quality is a recent phenomenon, as the subject is receiving global attention and is practiced across the organizational pyramid. But, the concept, the concern and the practice is as old as the human civilization. Although it has not been documented as an exclusive concern in public domain, it was practiced religiously. Across various civilizations, we did not notice any faltering on quality in any human endeavor: interaction with nature and the sense for art, literature and construction.

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Where all the quality historically reflected?

Quality reflected everywhere, particularly the work of art and architecture. Actually, one can trace the timeline back to civilizations thousands of years ago. Without quality consciousness, it would not have been possible to build structures like Pyramids, Great Wall of China, Taj Mahal, Caves and variety of monuments all over the world and the artwork that decorated these. Development/ recording of modern approaches and application of quality understanding can be traced back to Industrial Revolution, and the continuous improvements in quality thereafter.

Q-3

A basic question: what is quality?

In the simplest words, “quality is fitness for use/ purpose”.

But, it draws a very water tight domain. Fifty years ago, high speed diesel had a spec of 1wt% (10,000wtppm) max. Sulphur. It has been continuously (in steps) improved to 50wtppm max. So, “quality is an endeavor to serve the changing purpose via the processes of continual improvement”. Quality indeed is reflected in all aspects: the way we think, communicate, produce, use, act or solve problems.

Q-4

What are the various pursuits of quality?

The main ones are: z To define Q-Policy, pronouncing organization’s quality thought

z To provide Q-Standards for all business processes z To put in place Q-Systems & Q-Procedures to enable teams to function z To build teams of Q-People to deliver the best productivity z To aim at Q-transformations to produce the best products The supporting ones: Q-Statement, Q-Certification, Q-Specifications, Q-Inspection, Q-Control, Q-Control (Statistical), Q-Assurance, Q-Audit, Q-Circles, Q-Design and Q-Conformance and Total Waste Management.

Q-5

What is the best approach to practice quality in chemical industry?

The best approach is to follow in letter and spirit all main and supporting pursuits so that the organization, and various teams and individuals develop the necessary reflexes in doing things the quality way. Mere compliance to quality standards & procedures and specifications serves organizational objective of producing quality products (goods & services). Sector to sector requirements are at variance. For example, pharma, fertilizer, petroleum, petrochemicals, Chlor-alkaly and others are all different from each other. So, there can be an apex approach that suits all the sectors, augmented by sector-specific approach.

Q-6

sample testing in QC labs, and checking/ testing of all process materials. It is not process control. Further, it refers to identifying variation in characteristics that would cause product inacceptance, and taking preventive actions based on statistical quality control (SQC). It includes verification that every quality characteristic of a product is complied with, while respecting predetermined performance standard at each stage in the production cycle.

As against this, QA focuses on planning and procedures. QA does not measure quality of products.

It measures quality in business by ensuring that the organization has Q-Systems and Q-Procedures in place in order to assure the corporate management and in turn the customers about the quality of products and services.

Q-8

Can the industry do away with quality audit?

Really not! But, the frequency can be reduced. If the organizations were equipped with necessary quality systems & procedures, had built quality teams and produced quality products and services and the managements were sure that there was no faltering, it would have in principle warranted to do away with audit.

But, what provides the check & balance is an audit by competent persons. Hence, basically a periodic audit is desired. Audit is a management tool to first know the unknown, and then prevent the unwanted.

Why was Japan once famous for quality?

After the devastations of mid-twentieth century, she produced strategically right quality products and flooded the world markets at economical prices, though their own products were priced higher in the indigenous markets.

In this endeavor, the western industrial engineers like Deming and Juran helped Japanese industry, conducting technically very sound statistical studies.

Although countries like USA and Germany were already producing high IF THE ORGANIZATIONS quality products, Japan made the most conscientious and WERE EQUIPPED WITH professional use of Quality NECESSARY QUALITY SYSTEMS & at manufacturing floor level and that got globally PROCEDURES, HAD BUILT QUALITY noticed and admired.

TEAMS AND PRODUCED QUALITY PRODUCTS AND SERVICES AND THE What is Quality Are quality give-away?

MANAGEMENTS WERE SURE THAT THERE control (QC) and quality This term applies more WAS NO FALTERING, IT WOULD HAVE IN assurance (QA) the same to petroleum refinery thing? products. It means, if PRINCIPLE WARRANTED TO DO AWAY Not really, though you are selling a product WITH AUDIT. BUT, WHAT PROVIDES inadvertently people name of far superior quality than one for another. They are specified in the product THE CHECK & BALANCE IS AN distinctly different. QC mainly technical specification, it AUDIT BY COMPETENT deals with online measurement, might then be adversely affecting PERSONS.

Q-7

Q-9

CHEMICAL NEWS JANUARY 2015 z 35

the economics of a co-product. Hence, overdoing can be avoided while staying within the agreed technical specifications.

Example: If you are ready to ship an Industrial Diesel Oil (IDO) stock complying fully the product specification; and find out that 5% of industrial fuel oil (IFO) could have been blended into it without violating any of the technical specifications, then this is the case of quality-give-away (to customer) affecting adversely the company economics since IFO is much cheaper than IDO.

Q-10

How far are the Quality endeavors space and time bound?

When the business/ trade did not have a global character, it was largely space and time bound. Quality in North America was superior to quality in Europe and in turn was superior to quality in Asia. The quality in pre-WW-II era was different from post-war era. With increased globalization of business & trade, the quality requirements have been standardized and interactive international planning and coordination have narrowed the hitherto existing differences. The subject has already moved somewhat, and is constantly moving away from “space and time bound” dimension of quality, while specifications becoming more stringent.

z Drive out fear of punishment or being belittled among employees z Breakdown the barriers that exist between departments z Eliminate rhetoric/hyped praise as rewards z Remove barriers that rob employees of their pride of workmanship z Institute a vigorous program of continuing education and self-improvement

Q-13

Is Total Quality Management (TQM) indeed all encompassing?

In principle, yes! The word ‘total’ itself was intended to reflect that.

Although opposite schools of thought have emerged, it has not lost its relevance. In fact, some of its approaches are standing rock-solid.

TQM greatly emphasizes on system wastes.

What are they?

Typical system wastes are: Capital: Excessive inventory maintained, overdue receivables, lost receivables including items not billed, and project execution/ implementation delays and overruns.

Lost Sales: Customers upset due to billing incongruities, errors or complexities, shipment arriving late or to a wrong destination, not keeping customers informed, sales people behaving like rationing officers, sales people not calling right companies/ persons, new/modified product not appropriately advertised, and too slow or nonresponsiveness, and sales information not reaching other players.

Material: Wrong material ordered, over or under specification, purchased at too high a price, consumed excessively, and material laden with defects and defectives.

Time of People: Excess, incompetent, or wrong people assigned to the job, working on wrong jobs or priorities, badly designed systems or work flow procedures and using wrong equipment or methods, situations causing waiting time, inefficient and ineffective processing, not planning and not aiming for minimum time & motion, minimum transportation and minimum steps in processing, and not eliminating unnecessary steps.

Q-12

Q-14

Q-11

What are the various ground level approaches to TQM? z Aim at continual improvement in quality of product and service z Create consistency of purpose towards improvement of products and services z Believe that acceptance of poor products/ services is a roadblock to productivity z End the process of awarding business solely on the basis of price z Find problems and solve them z Institute modern methods of training on the job z Institute modern methods of supervision 36 z CHEMICAL NEWS JANUARY 2015

Why are people losing interest in 6-sigma concept?

It is too complex a concept and is geared to project only a figure. Actions anyway flow from general approaches like DMAIC, which have to be worked out without any support from the concept. Moreover, the concept has been subdued by “Zero defect” and “zero waste” approaches which are simple to understand; and that helps aim at the ultimate targets.

DMAIC deals with process & product performance.

Under DMAIC approach: D stands for defining the task of understanding the customer requirements, expectations and problems faced,

and inducting appropriate team with a plan.

M stands for measuring, and generating statistical data to Identify variation in the characteristics, to define defects and to identify adequacy and accuracy of measuring system.

A stands for analyzing the current data, estimating/ quantifying process capability, defining final goal/ target and identifying all dependent variables.

I stands for improving the process/ product screening independent variables, establishing mathematical relations and estimating operating cushion.

C stands for controlling the process/ product revalidating the measuring system, checking if improvements are achieved and establishing a monitoring program to maintain improvement.

Q-15

What is meant by quality reflexes?

It is like human body reflexes. When a foreign body moves towards eyes, eyes reflexively blink. When hand touches a hot surface, hand reflexively draws back. Likewise, related to quality, sooner or later we have to assimilate the fourth of the following steps so that it is reflexive in nature. First time, the process will go through the four steps to reach and stay on the fourth.

1. Unconscious loss of quality: For example, the plant manager did not know having produced a below-quality product.

2. Conscious loss of quality: For example, the plant manager knew despite efforts there would be belowquality product.

3. Conscious gain of quality: For example, the plant level knew what they were producing would be a quality product.

4. Unconscious (reflexive) achievement of quality: For example, routinely and effortlessly the plant produced the right quality product.

5 decades and do not remember having even once faced a functional problem or incompatibility between stapler and staples made by different parties. These are pursuits of “zero defect”: To apply 6-Sigma to it complicates the QC process.

Q-17

How to achieve “zero waste”?

Guided by higher standards of living, societies will be greater consumers of goods and services, inevitably would generate higher levels of wastes, particularly solid wastes.

The collective steps (4Rs) in achieving zero waste are: z Reduce: the level of consumption itself and/or quantity of waste generated at source. z Reuse: the waste as such with no further processing.

Give it away to, or sell it in the secondary markets, or next level of consumers. z Recycle: back to an appropriate stage in transformation process. It is a very familiar term to chemical industry people. z Recover: the waste which can technically be transformed and used to cater to some pre-ascertained purposes.

When zero waste is not possible using any of the 4Rs, the last resort is to dispose the minimized quantities suitably (like for land filling) after sorting and/or neutralization against hazardous nature as required.

The effort to reduce waste is continuous as evident from this example: In a case study, when seam welding was switched over from manual to robot welding, the scrap reduced from 15% to 1% (The scrap was recycled in both the cases). Questions were still asked as to what further could be done to reduce this, to say, 0.1% (moving toward zero waste). This approach belongs to continual improvement.

Q-18

What could be the reasons of slow progress in quality perseverance?

Key reasons could be: What are the best examples of “zero Management: Lack of commitment and support. defect”?

Teams: Lack of commitment, capacity and Example-1: Drinking water bottles willingness to make the needed effort.

WHEN made in PET are made by some Documents: Non-availability of ZERO WASTE IS manufacturers and their HDPE quality standards, procedures and caps by some other. But, have specifications.

NOT POSSIBLE USING ANY you ever heard of a complaint Beliefs: That the practice of OF THE 4RS, THE LAST RESORT that a cap did not match the quality is expensive and not bottle or the bottle leaks even worth the effort.

IS TO DISPOSE THE MINIMIZED when tight shut?

QUANTITIES SUITABLY (LIKE FOR Example-2: A stapler is manufactured by numerous In what all LAND FILLING) AFTER SORTING manufactures and the staples pursuits, “management AND/OR NEUTRALIZATION by numerous others, using size support” is usually available?

AGAINST HAZARDOUS specification. Like many others, I If the quality pursuits are have extensively used staplers for professionally handled, they NATURE AS REQUIRED.

Q-16

Q-19

CHEMICAL NEWS JANUARY 2015 z 37

RELIABILITY IS TIME ORIENTED Poka-yoke can be become rewarding. Surely, implemented at any step of Managements stand by in PERFORMANCE AND IS readiness to bless/support a manufacturing process CONNECTED TO FAILURE RATE, endeavors such as social where something can go responsibility, operational wrong or an error can be MEAN TIME BETWEEN FAILURES, sustenance, productivity, made. For example, a SPARING / STANDBY SUPPORT AND profitability and global device that holds pieces REVEALS PROBABILITY OF FAILUREpresence. for processing might be modified to only allow FREE AVAILABILITY OF PLANT AND pieces to be held in the EQUIPMENT WITHIN A GIVEN TIME What are the correct orientation like ISO standards? Why is jigsaw puzzles. Personnel FRAME. IT DETERMINES PROBABLE certification important? involved need be creative, FITNESS FOR PURPOSE, ISO standards are globally so that they can enable the created/accepted basic standards process to produce the right RELATING IT TO for Quality Management Systems. first time and every time. It truly QUALITY. ISO-9000 series are general standards. aims at zero defects making no

Q-20

ISO-9000-2000 means updated in year 2000.

ISO-14000 is dedicated to “Environment” and the most recent ones ISO-50000 to “Energy”. Certification makes an organization acceptable to do business in the global market. Certification can be obtained for a particular branch, department or company as a whole.

Q-21

How is reliability connected to Quality?

Reliability is time oriented performance and is connected to failure rate, mean time between failures, sparing / standby support and reveals probability of failure-free availability of plant and equipment within a given time frame. It determines probable fitness for purpose, relating it to quality.

Q-22

Given so many quality pursuits, how PokaYoke plays a role?

Poka-yoke actually prevents a mistake from being made.

Let us understand this way.

Some errors are inevitable in any design-manufacturing process. Using Poka-yoke, mistakes can be caught quickly and prevented from resulting in defects. By eliminating defects at the source, the cost of mistakes within a company is reduced. Poka-yoke can also be implemented in service industries.

Examples: 1. Make the plug go into socket only one way: already globally adopted.

2. Color code of service & utility pipelines: Largely adopted globally.

3. Figure eight blind for isolation of equipment in emergency or mix-up of fluids.

4. Apply certain predetermined checks on bank cheques before issuing them.

5. Use macro approaches to find faults at micro level (thumb rules).

38 z CHEMICAL NEWS JANUARY 2015

mistakes.

Q-23

In 80s, quality circle was “talk of the town”.

Why nobody talks about it now?

Quality circle is basically a small group of employees who volunteer to meet regularly to undertake work related tasks to improve quality, productivity, safety, efficiency, cost, working condition etc. They work with brainstormed ideas and pursue execution. During 80s, this was a much hyped activity while there were no meaningful pursuits like QA, ISO standards/ Certification, TQM etc. Moreover, Q-Circle was involving workers, which had its plus & minus. However, one of the top management pursuits was to involve workers in non-routine, creative and productive team activities. Hence, it had the support. In a very short period, it was virtually forgotten since it resulted in interworker conflicts and incidentally there came up other alternative pursuits requiring deeper commitments of wider reflections.

Q-24

What could be the reasons of slow progress in quality perseverance?

It varies from organization to organization. Some excel and some go scot-free as they are able to sell whatever they produce. The latter is true when an organization manufactures monopoly products and their sales officers behave like rationing officers. As the businesses face increasing completion, practice of quality gets a boost. Quality perseverance indeed starts from top management commitment and flows down the pyramid. Entire team is made quality

conscious. And, all teams should be answerable for their quality performance. All deviations and departures must be analyzed and violations must not recur. Be conscious of the enhanced version, “Right first time, and every time.”

So the quality perseverance leaves no room for goof-ups.

Q-25

Explain why design reviews are so important.

On & off, one reads about automobile companies recalling their vehicles of particular model to make suitable changes so that vehicle is safe, road worthy and meets all the performance criteria. Why this? This is to correct the deficiency that went unchecked/ un-corrected at design stage itself. Sometimes it is due to use of uninspected/ compromised parts. Likewise, statistically about 40-50% of the field failures have been attributed to engineering design deficiencies. Hence, design reviews must never be compromised, as any deficiency would get carried forward through all the stages of execution.

Q-26

Is it not true that better quality means more cost and longer schedules?

It is not a question of relative cost as the existing situation lacking quality is not acceptable. So, once we are sold on the idea of continuously living the quality way, we have to look for the min. cost, min. time scenario. It is like facing a messy place with accumulated debris and some stuff continuously coming in. The best thing to begin with is to clean it up completely first time and then clean up the intake daily or every time.

The same thing applies to most of the situations everywhere.

Q-27

Does higher consciousness to quality upsets schedules/ commitments?

Definitely not; experience has exhibited with no reservations whatsoever that consciousness to quality improves all the fronts including clarity in mind, the thought processes.

Q-28

What is Statistical Quality/Process control?

A large number of random disturbances responsible for deviation in the quality of a product from the set standards

are attributable to assignable causes or chance. The patterns can be statistically analyzed and the causes corrected. It requires understanding of distribution patterns and use of graphical methods. Juran’s book on Quality Planning and Analysis has immensely treated the subject with necessary math & methods and statistics & examples.

Q-29

What about Strategic Quality Management?

We can appreciate this better with an example: A global petroleum refiner took over the management of a petroleum refinery based in the Caribbean, hitherto shutdown for reasons of continuously making losses having no hope for recovery. The new managing company worked out a strategic plan known as “Quality Plan” to turn it around. The strategic quality plan focused on several strategic points: z Recall old employees with right records and bonafides z Employ professional expatriates to fill in the key middle level engineering jobs z Process own crude oils z Embark on Total Quality Management (TQM) program z Apply the best of cost control methods z Initiate refinery upgradation study z Make wise and absolutely necessary investments The result: the company quickly crossed the break-even level and had rising profitability every year, the result of strategic quality management.

Q-30

What is the single biggest challenge in the practice of quality?

The single biggest challenge is to involve various internal business teams, make them communicate with each other while respecting the coordination interfaces.

THE AUTHOR: MR. O.P.GOYAL is a chemical engineer with Bachelor Degree from IIT-Roorkee and Masters from University of Waterloo, Canada. He presently teaches “Refinery Science and Engineering” and “Industrial Management” at Institute of Chemical technology, Mumbai. He worked with ESSO/HPCL, Mumbai; PDVSA, Venezuela; ISLA, Curacao; Herdillia Chemicals, Mumbai and Jacobs Engineering, Mumbai. He has written extensively for international publications including Hydrocarbon Processing and McKetta’s Encyclopedia, and has published a book on Petroleum Refining Technology and Management. Email: opgoyal@yahoo.com CHEMICAL NEWS JANUARY 2015 z 39

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

Messages for Manufacturing Personnel

www.aiche.org/ccps

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What is the process risk?

January 2015

The November and December 2014 issues of the Process Safety Beacon marked the 30th anniversary of two of the worst industrial disasters in history – the November 1984 explosions and fires at an LPG terminal in San Juan Ixhuatepec, Mexico City, Mexico (1) and the December 1984 toxic gas release in Bhopal, India (2). These incidents were catastrophes impacting tens of thousands of people. The “What can you do?” sections of these Beacons encouraged you to understand the worst thing that might possibly happen in your plant, and your role in making sure that event does not happen.

However, you should also be aware that the worst process incident that can happen in your plant may not be the same as the highest process risk. Risk is a combination of how likely an incident is, and how bad the consequences could be (3). The process incident in your plant with the worst consequences may be very unlikely to occur. Other less severe incidents may be more likely, making the risk of these events higher than the incident with the worst consequences.. You should be aware of all process risks in your plant, and your role in managing all of those process risks.

1

2

3 Likelihood (Probability/ Frequency)

Consequence (Impact)

RISK What can you do?

Ask similar questions to those suggested in the December 2014 Beacon for all of the process risks in your plant: What are all of the process risks in the area where I work and in my job?

What are the systems in place to manage these risks – both to prevent process incidents happening and for reducing the consequences if they do happen?

How do I know that these process risk management systems are adequate and working properly?

What is my role in making sure that the systems for managing all of the process risks in my plant are functioning properly?

Understand all process risks in your plant and your role in managing them! ©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.

The Beacon is usually available in Arabic, Afrikaans, Chinese, Czech, Danish, Dutch, English, French, German, Greek, Gujarati, Hebrew, Hindi, Italian, Japanese, Korean, Malay, Marathi, Norwegian, Persian, Polish, Portuguese, Romanian, Russian, Spanish, Swedish, Telugu, Thai, Turkish, and Vietnamese.

40 z CHEMICAL NEWS JANUARY 2015

DRIVING OPERATIONAL DISCIPLINE THROUGH QUALITY WRITTEN PROCEDURES Brian D. Rains [This paper was presented at the American Institute of Chemical Engineers – the 8th Global Congress on Process Safety – held in Houston, TX, USA, during April 1-4, 2012]

D

uring the 2011GCPS Conference, I focused on the broader subject of Operational Discipline and I presented an 8-Step process that I have used effectively to strengthen the Operational Discipline Culture of an organization (Exhibit 1). In this paper, I will concentrate on Step 4 of this process: “Focus on the It.”

EXHIBIT 1. 8 STEP OD IMPLEMENTATION METHODOLOGY 8 STEP OD IMPLEMENTATION METHODOLOGY

Step 1: Be convinced improved OD is needed Step 2: Assess the current state Step 3: Develop a comprehensive roll-out plan Step 4: Focus on the It Step 5: Establish priorities Step 6: Strengthen discipline processes Step 7: Implement Step 8: Audit, audit, audit

OPERATIONAL DISCIPLINE DEFINED DuPont defines Operational Discipline (OD) as “the deeply rooted dedication and commitment by every member of an organization to carry out each task the right way every time.” In short, OD is “Everyone: Do It Right Every Time” (Exhibit 2).

In DuPont, safety is a Core Value. This means that our primary

EXHIBIT 2. OPERATIONAL DISCIPLINE LEADS TO OPERATING EXCELLENCE Everyone OPERATIONAL DISCIPLINE

DO IT RIGHT

OPERATING EXCELLENCE

Everything Exhibit 2. Operational Discipline leads to Operating Excellence

emphasis is placed on building a strong safety culture, which will not only enable excellence in safety performance, but will also form the foundation for excellence in all areas of operations, including cost management, asset reliability, quality control, people management,

operations performance (yields, alarms managements, etc.)

This is never more evident than in the prominent placement of “Achieving Operating Excellence through Operational Discipline” in our Corporate Process Safety Management Model. (Exhibit 3)

EXHIBIT 3. DUPONT PROCESS SAFETY MANAGEMENT MODEL.

Process Safety PROCESS SAFETYManagement MANAGEMENT MODEL Model Auditing

Process Safety Information

Emergency Planning and Response

Process Hazards Analysis Operating Procedures and Safe Practices

Management of Personal Change Incident Investigation

Management of Technology Change

Contractors Training & Performance

Quality Assurance Management of “Subtle Changes” Mechanical Integrity

Prestart-Up Safety Reviews

Exhibit 3. DuPont Process Safety Management Model.

CHEMICAL NEWS JANUARY 2015 z 41

THE ROLE OF QUALITY PROCEDURES In my experience of leading manufacturing organizations in many settings and on several continents, I believe that the most important step in this 8 Step Methodology is to focus on what we expect people to do. Most organizations, especially those handling hazardous materials or performing hazardous operations, invest considerable effort in preparing written instructions and procedures. Written procedures have many functions, including enabling consistent operations and behaviors. In addition, they serve as a vehicle for codifying technology, best practices and experience. So why do so many companies find that employees are not following these instructions and procedures?

My fundamental premise is as follows. If management desires to develop a culture where workers follow procedures, they must first invest in and confirm that the procedures are indeed helpful, accurate and owned by the users.

However, if management provides procedures that are lacking in any of these key areas but insists that they be followed, they are actually contributing to a weak Operational Discipline Culture. When this occurs, workers are placed in the untenable position of selecting between two unacceptable options: either 1) follow a procedure that will knowingly yield a poor result, or 2) disregard the procedure in favor of performing the work “the way it should be done,” while knowingly disregarding management’s compliance directive.

WHICH PROCEDURES ARE MOST IMPORTANT TO INCREASING OD? There are numerous types of procedures that exist in a manufacturing facility. Not all are created equal or have the same potential impact on operational performance and/or risk avoidance.

Some of the procedures that often 42 z CHEMICAL NEWS JANUARY 2015

exist in a facility and that most often contribute to unacceptable consequences, both on-site and offsite, are the following: 1. Management Procedures or Managing Systems 2. Safety Procedures 3. Operating Procedures 4. Maintenance/Repair Procedures 5. Testing or Quality Procedures 6. Emergency Response Procedures It is my belief that all of these procedure types are important and have the potential to contribute, or not contribute, to the Operational Discipline Culture of an organization.

But in my opinion, I have listed these six in their relative order of importance in building a strong OD culture.

First, management must set the proper tone and example to build OD by establishing and then following appropriate Managing Systems. Whenever possible, these systems should be documented and accessible to those that need to be knowledgeable. Unfortunately, these are often the most neglected procedures since managers often consider business processes less important to document. They are usually mistaken in this belief.

After Managing Systems, Safety Procedures are the next important.

Safety is a priority and it is imperative that all employees contribute to this priority. Thus, Safety Procedures receive high organizational visibility and failure to comply with them can quickly undermine safety and OD culture. Not only does compliance to safety procedures cut across all organizational boundaries, safety is aligned with our instinctive behaviors to pain avoidance and self preservation. Having excellent safety procedures can go a long way towards building a strong culture of Operational Discipline.

Operating Procedures are the next most important since they not only touch a large plant population, but they contribute to achievement of the facility’s performance goals.

Maintenance, Quality and Emergency Response Procedures are also important, especially to those who work with them most often.

RECENT EVENTS HIGHLIGHT THE NEED TO FOLLOW GOOD PROCEDURES Unfortunately, there have been a number of recent, high profile incidents that, once investigated, have highlighted how failures in either the quality of procedures or adherence to them can cause catastrophic results.

The April 2010 Deepwater Horizon incident in the Gulf of Mexico is the most costly and damaging incident in recent history, and possibly the worst of all time. The January 2011 report by the Presidential Commission on the Deepwater Horizon Incident brought to light the importance of written procedures, as quoted below.

I’ve underlined critical pieces of this quotation.

“BP has caused a number of disastrous or potentially disastrous workplace incidents that suggest its approach to managing safety has been on individual worker occupational safety but not on process safety. These incidents and subsequent analyses indicate that the company does not have consistent and reliable risk-management processes—and thus has been unable to meet its professed commitment to safety. BP’s safety lapses have been chronic.”

“BP’s safety culture failed on the night of April 20, 2010, as reflected in the actions of BP personnel on - and offshore and in the actions of BP’s contractors. BP, Halliburton, and Transocean did not adequately identify or address risks of an accident—not in the well design, cementing, or temporary abandonment procedures. Their management systems were marked by poor communications among BP, Transocean, and Halliburton employees regarding the risks associated with decisions being made. The Decision making

process on the rig was excessively compartmentalized, so individuals on the rig frequently made critical decisions without fully appreciating just how essential the decisions were to well safety—singly and in combination. As a result, officials made a series of decisions that saved BP, Halliburton, and Transocean time and money—but without full appreciation of the associated risks.”

Not only did they comment on the operations of BP, but also on their two primary contractors – Transocean and Halliburton.

“A survey of the Transocean crew regarding “safety management and safety culture” on the Deepwater Horizon conducted just a few weeks before the accident hints at the organizational roots of the problem. The research, conducted at Transocean’s request, involved surveys and interviews with hundreds of employees onshore and on four rigs, including Deepwater Horizon, which was surveyed from March 12 to March 16. The reviewers found Deepwater Horizon ‘relatively strong in many of the core aspects of safety management’. But there were also weaknesses. Some 46% of crew members surveyed felt that some of the workforce feared reprisals for reporting unsafe situations, and 15% felt that there were not always enough people available to carry out work safely. Some Transocean crews complained that the safety manual was ‘unstructured, hard to navigate, and not written with the end user in mind;’ and that there is ‘poor distinction between what is required and how this should be achieved’.

According to the final survey report, Transocean’s crews ‘don’t always know what they don’t know. Front line crews are potentially working with a mindset that they believe they are fully aware of all the hazards when it’s highly likely that they are not.’ ” “Halliburton, BP’s other major contractor for the Macondo well, is

one of the world’s largest providers of products and services to the energy industry. It has offices in 70 countries, and Halliburton-affiliated companies have participated in the majority of producing deepwater wells and contributed to most of the world’s deepwater well completions.

Yet notwithstanding, it had clear experience and expertise in cementing—a $1.7 billion business for the company in 2009. Halliburton prepared cement for the Macondo well that had repeatedly failed Halliburton’s own laboratory tests.

And then, despite those test results, Halliburton managers onshore let its crew and those of Transocean and BP on the Deepwater Horizon continue with the cement job apparently without first ensuring good stability results.

On a positive note, the Presidential Commission also elected to shed light on other industries that have very successfully managed operational risks. Of particular interest has been the truly outstanding record of the nuclear Navy: “Even inherently risky businesses can be made much safer, given the right motivations and systems-safety management practices. Civil aviation and nuclear-fueled electric power are two good examples of industries that have had to manage the risk of catastrophic failures and losses. In the public sector, the United States Navy also faced the challenge of improving safety in its nuclear-power vessels—and did so.”

“Between 1915 and 1963, the U.S. Navy lost about one submarine every three years to noncombat causes. In 1963, when the nuclearpowered USS Thresher was lost during a deep test dive, 112 naval personnel and 17 civilians perished.

The Navy investigation went far beyond immediate causes and ‘found deficient specifications, shipbuilding practices, and maintenance practices, along with inadequate documentation of construction and maintenance

actions and deficient operational procedures.’ After the Thresher loss, Admiral Hyman Rickover, then head of the nuclear Navy, told his staff to establish a system to ensure that such an accident would never recur. The new SUBSAFE system was established within 54 days of the loss of the Thresher, and no SUBSAFE-certified submarine has since been lost.”

“SUBSAFE has two goals, both crucial for submarines: maintaining the watertight integrity of the hull, and maintaining operability and integrity of critical systems that allow control and recovery from a flooding hazard. The system covers the administrative, organizational, technical, design, material-control, fabrication, testing, work-control, auditing, and certification aspects of submarine development and operations.” (Exhibit 4)

EXHIBIT 4. U.S. NAVY ‘SUBSAFE SYSTEM PRINCIPLES

PRINCIPLES OF THE NAVAL ‘‘SUBSAFE’’ SYSTEM z Top management commitment to safety z Clear and written safety requirements of Education, not just training z Regular rewriting of requirements z Separation of powers and assignment of responsibilities z Emphasis on rigor, technical compliance, and work discipline z Documentation capturing what is done and why it is done z Participatory audit approach, and requirements for objective quality evidence z Program based on written procedures, not personalitydriven z Continual certification of a facility z Accountability and accompanying responsibility z Special efforts to be vigilant against complacency CHEMICAL NEWS JANUARY 2015 z 43

“As important as procedures, SUBSAFE establishes a mindset—in this case, a questioning attitude and what the officers call chronic uneasiness, summarized in the saying, ‘Trust, but verify.’ ” An analysis of these 12 principles indicates that 7-outof-12 (58%) specifically speak to the need for a strong, written procedure program plus the accompanying review and training. Another four speak to establishment of a supportive culture of Operational Discipline and accountability. The remaining item describes the important role of top management commitment. It goes without saying that leadership commitment and support is required for each of the 12 principles to be realized.

the procedures are of sufficient high quality to merit compliance.

OPERATING PROCEDURES BEST PRACTICES As mentioned previously, a critical building block in the development of a resilient OD culture is a strong Procedures Program. I have developed what I believe are 11 essential elements or Best Practices that should be incorporated into a facility’s (or a corporate) Procedures Program. (See Exhibit 6.)

PROCEDURES + OD = EFFECTIVENESS As shown in Exhibit 5, the state of operational effectiveness is the product of the quality of the management standards and the Operational Discipline. Weakness of either (or both) will result in ineffective operations and safety incidents.

Management should not insist upon compliance to procedures until

EXHIBIT 6. 11 PROCEDURE BEST PRACTICES 11 PROCEDURES BEST PRACTICES

1 Procedures “Standard” 2 Single person owners 3 Well written, easily followed and visual 4 Consistent, comprehensive and user friendly content 5 Importance and risk classified 6 Reviews 7 Verification Strategies 8 Robust change management process 9 Initial and refresher training plus assessment 10 Revisions controls but accessible 11 Metrics and Audits

EXHIBIT 5. SAFETY PERFORMANCE IS A FUNCTION OF THE SAFETY MANAGEMENT SYSTEMS AND LEVEL OF EXECUTION Safety Management Standards

Operational Discipline

Operational Effectiveness

70%

X

40%

= 28%

State of State of Safety Standards Implementation

State of Operational Effectiveness

Copyright © 2010 DuPont. All rights reserved.

Copyright © 2010 DuPont. All rights reserved.

44 z CHEMICAL NEWS JANUARY 2015

Exhibit 5. Safety performance is a function of the safety management systems and level of execution

1. A procedures “Standard” describes what is expected and by whom.

A “procedure for procedures” will not only establish clear expectations and the basis for monitoring progress (via metrics and audits), it will also establish procedures as a top management priority that will be supported with resources, time and money.

2. Every procedure has a single person owner.

Even though this seems like a simple concept, in my experience it is rarely fully in place. Procedure owners own the quality of the content, the review processes and can provide instructor led training.

3. Procedures are well written and easily followed. Visuals and other technology tools are employed.

Procedure writing is a skill. Many organizations have dedicated procedure writers who have developed this skilled internally.

Some elect to hire professional writers, while others will include procedure writing as part of their other duties.

Despite your particular approach, the quality of the writing must not suffer. Poorly prepared procedures will not be as readily followed.

Additionally, I have seen in my work, both inside DuPont and outside the company, many examples of creative use of educational tools including color, pictures, diagrams and even embedded videos. Placement of laminated versions of procedures where they are most often utilized is another creative approach to encourage their use and value.

4. Content is consistent with core documents and balances comprehensiveness with user needs. A consistent format is used universally with appropriate procedure headers.

There must be clear accountability in the development of a procedure for its accuracy. In particular, operating procedures must be consistent

with technology documentation. All procedures must also be consistent with corporate requirements and all applicable regulations.

It is easy to over burden procedures with interesting, adjacent information that describes “why” a procedure is important. And although understanding the reasons behind the procedure are important, too often these words of context can either confuse the reader or simply get in the way of finding the most important “what to do” information.

Finding the right balance between these two needs should be influenced by the criticality of the procedure.

Ease in management of a procedure is facilitated when a common header format is used for all of a facility’s procedures. The title, the procedure’s owner, the location of the master copy, importance/ risk mitigation classification (see #5 below), dates of its last revision and its next required revision, and also an appropriate procedure number should be included. An optional procedure revision history can also prove useful.

5. Every procedure is classified as to importance and risk mitigation.

Key to applying the right level of resource support to the maintenance of a procedure is classifying all procedures as their importance and criticality. Several factors can be used but the most straightforward is simply a brief consequence analysis: “What is the worst thing that could happen if this procedure were not followed correctly?”

I have observed companies use a simple Tier I, Tier II and Tier III approach. Others impressively integrate their Risk Registry or Risk Classification System (Category I to V, for example) into the way they classify procedure importance.

6. All procedures are routinely reviewed, consistent with #5, by an appropriate cross section of the organization.

Reviewing procedures for accuracy

and completeness must become an important ritual in every organization. I have observed this process occur every 12 months for the most critical procedures to every 6 years for the least critical.

Of course, proactive changes to a corporate standard, a process or equipment that may render an existing procedure inaccurate must trigger an immediate procedure review. See #8 below.

Essential to any review process is adequate time and use of the “right” people. Procedure owners should plan three months in advance of a procedure expiration date so that the quality of the review is not compromised.

7. A verification strategy is applied to all procedures, consistent with #5.

As cited previously, the U.S. Navy SUBSAFE motto became “Trust but Verify.” The same approach should be employed for all procedures, consistent with the procedures criticality. Trust that employees will perform the procedure correctly but just in case, verify.

There is a wide range of verification techniques available to organizations. On one end of the spectrum is a duplicate review of every step with initials. For example, this occurs in the cockpit of commercial airliners before every flight. This may be appropriate for your most critical procedures.

On the other end of the spectrum may be little or no verification, assuming, of course, that the individual is trained and competent to perform the task. .The principle is that appropriate verification strategies should be identified and applied to all procedures. An appropriate action is determined by the procedure’s criticality classification.

8. Content is maintained up-todate via a robust Management of Change Process (MOC).

Failure to identify and mitigate new risks that are introduced via facility,

technology and even organizational change are often the cause of serious, even catastrophic incidents.

MOC processes are intended to methodically review changes so that incidents are prevented. Codification of the proper way to implement and execute desired changes must include procedure reviews (See #6) and revisions plus the corresponding appropriate training. (See #9)

9. Initial and refresher training is provided at a frequency consistent with #5. Written, field and supervisory assessments are performed.

It goes without saying that accurate, up-to-date procedures are of little, real value if their users are not knowledgeable and familiar with the content. Training must be done initially, and periodically thereafter, to insure that knowledge is not lost.

For critical procedures, refresher training may be required annually.

Other less critical procedures should be less frequent.

It is critical that managers have full confidence in each individual’s demonstrated ability to follow procedures. Job Cycle Checks, conducted by peers and/ or supervisors are an effective way of demonstrating acquired skills.

Other, more formal assessment methods should also be employed as appropriate.

10. Procedure revision documents are controlled without impacting broad access to the procedures.

Document control is essential.

Many facilities utilize systems and standards such as ISO 9000 to bring structure to the document management process. Hopefully, the rigors of these approaches do not get in the way of an equally important priority – procedure access. Auditing of both document controls and ease of access, including how much time it takes for users to access key procedures, will allow managers to judge whether an appropriate balance between these two priorities has been achieved.

CHEMICAL NEWS JANUARY 2015 z 45

11. Continuous improvement is driven by metrics and audits.

It the procedures standard (See #1) is properly prepared, it will be very straightforward for an organization to collect appropriate metrics (overdue procedure reviews, overdue procedure training, overdue MOC procedure updates, etc) as well compare actual performance vs. expectations via proactive auditing. Continuous improvement requires data (metrics and audit results) that illustrate where improvement opportunities can be found.

A sampling of Audit Questions that can be utilized to probe the strength of an organization’s Procedures Program is contained in Appendix I.

CONCLUSION Quoting again the Presidential Commission that investigated the Deepwater Horizon incident, “The United Kingdom Health and Safety Executive formally defines the safety culture of an organization as ‘the product of individual and group values, attitudes, and perceptions, competencies, and patterns of behavior that determine the commitment to, and the style and proficiency of, an organization’s health and safety management.’

A more popular description is that safety culture means doing the right thing even when the no one is watching. There are two kinds of safety: occupational safety, which refers to keeping people safe, and process safety, which refers to the procedures for minimizing risk more generally.”

In conclusion, minimizing risk via a strong Operational Discipline culture will help build a firm foundation of detailed and accurate procedures that will contribute to less frequent and less serious industrial incidents.

If organizations follow the formula outlined above, it will assist in improving OD culture and the degree of Operational Excellence that a 46 z CHEMICAL NEWS JANUARY 2015

business can attain. Regardless, continuous commitment and effort

by management will be required to sustain these gains.

APPENDIX I. z z

z z

z z

z z

z

z

z z

z z

z

SAMPLE PROCEDURES PROGRAM AUDIT QUESTIONS Is there a formal system for preparation, control, approval and authorization of Procedures?

Are Procedures being reviewed and reauthorized at intervals? Do revision dates on individual procedures reflect that reviews are on schedule? Are any reviews overdue?

Are there provisions to ensure that the Procedures remain consistent with the documented technology?

Are operators and mechanics included in the reviews to verify that sound practice is reflected in the Procedures and to stimulate suggestions for changes and improvements?

Are the Procedures written in a style and format that is clear and understandable to users?

When changes are made to Procedures that involve changes to the documented process, is the authorization in conjunction with a Management of Change authorization document?

Are the Procedures free of “unauthorized changes”?

Is job specific training developed and deployed that addresses the specific safety and health hazards and procedures applicable to an employee’s assignment?

Is refresher training being provided to each employee at an appropriate frequency to ensure that the employee understands and adheres to current procedures?

Does the area communicate revisions to Procedures to personnel who have a need to know?

Is this documented?

Are Procedures readily accessible to personnel who work in or maintain the process?

Have Procedures been developed and documented for each operating area? Do the procedures provide clear instructions for conducting activities effectively and safely?

Do the Procedures contain a safety, occupational health, and environmental control section?

Is each equipment piece described sufficiently to provide key process requirements and limitations, i.e. size, materials of construction, heating and cooling provisions, services, etc.?

Are the standard operating conditions (SOC’s) listed for each process step: • Preferred range or aim • Minimum and Maximum conditions • Consequences of deviation (above the maximum and below the minimum) • Steps to correct and/or avoid deviation

AUTHOR: BRIAN D. RAINS, Global Process Safety Management Leader DuPont Sustainable Solutions Safety Resources Wilmington, Delaware 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.

CHEMICAL NEWS JANUARY 2015 z 47

PROJECTS INVESTMENT IN CHEMICALS SECTOR Cost in Rs. Crore

SYNTHETIC ORGANIC CHEMICALS

Promoter: Piramal Enterprises Ltd. Cost: 250.00 Industry: Organic Chemicals Completion: NA Location: Medak, Telangana Piramal Enterprises plans to expand synthetic organic chemicals capacity from 363.22 tpm to 450.05 tpm at Digwal village in Medak district of Telangana. Work to commence by August 2015.(more) Contact: Piramal Enterprises Ltd., N P Tower, Peninsula Corporate Park, GanpatraoKadamMarg, Mumbai, 48 z CHEMICAL NEWS JANUARY 2015

Maharashtra 400013. Tel: (022)30466666

OLEOCHEMICALS

(040)-44311999, Fax: 44311777 Email: hyd@fff.co.in, info@fff.co.in

CAUSTIC POTASH

Promoter: 3F Industries Ltd. Cost: 80.00 Industry: Organic Chemicals Completion: NA Location: Nellore, Andhra Pradesh

Promoter: MeghmaniFinechem Ltd. Cost: 65.00 Industry: Alkalies Completion: September 2015 Location: Bharuch, Gujarat

3F Industries plans to set up an oleochemicals unit at Krishnapatnam in Nellore district of Andhra Pradesh.

MeghmaniFinechem plans to set up a caustic potash unit with a capacity of 60 tpd at plot No.CH1 & CH2, GIDCDahej in Bharuch district of Gujarat.

Contact: 3F Industries Ltd., 6-3569/2, 1st Floor, Rockdale, Opp. RTO Office Hyderabad, Telangana. Tel:

Contact: MeghmaniFinechem Ltd., Meghmani House, Srinivas

Society, Off New VikasGruh Road, Ahmedabad, Gujarat 380007.

Tel: (079)-26640668/ 669, Fax: 26640670. Email :helpdesk@ meghmani.com

ACTIVE PHARMACEUTICAL INGREDIENTS

Promoter: Sri Krishna Pharmaceuticals Ltd. Cost: 125.00 Industry: Bulk Drugs Completion: NA Location: Solapur, Maharashtra

Sri Krishna Pharmaceuticals plans to set up an active pharmaceutical ingredients unit with a capacity of 2,545 tpm at MIDC, Chincholi, Moholtaluka in Solapur district of Maharashtra. Work to commence by December 2016.

Contact: Sri Krishna Pharmaceuticals Ltd., C-4, Industrial Area, Hyderabad, Telangana 500039. Tel: (040)-27201101-02/27204471/72 Fax: 27204470, 27205432.

Email: skg@srikrishnapharma.com

ACTIVE PHARMACEUTICAL INGREDIENTS

Promoter: Sri Krishna Pharmaceuticals Ltd. Cost: 95.00 Industry: Bulk Drugs Completion: NA Location: Solapur, Maharashtra

Sri Krishna Pharmaceuticals plans to set up an active pharmaceutical ingredients unit with a capacity of 1,250 tpm at MIDC, Chincholi, Moholtaluka in Solapur district of Maharashtra. Work to commence by August 2016.

Contact: Sri Krishna Pharmaceuticals Ltd., C-4, Industrial Area, Hyderabad, Telangana 500039. Tel: (040)-27201101-02/27204471/72 Fax: 27204470, 27205432. Email: skg@srikrishnapharma.com

Data source: ProjectsToday

COAL TAR PITCH

Promoter: Himadri Chemicals & Industries Ltd. Cost: 56.00 Industry: Petroleum Products Completion: NA Location:Sambalpur, Odisha Himadri Chemicals & Industries plans to set up coal tar pitch with a capacity of 84,000 tpa at Kenghati in Sambalpur district of Odisha. Work to commence by May 2015.

Contact: Himadri Chemicals & Industries Ltd., Ruby House, 8 India Exchange Place, Tea Board/ICC, Dal Housey, Kolkata, West Bengal 700001. Tel: (033)-22304363/ 9953

CHEMICALS

Promoter: Arbuda Plastochem Pvt. Ltd. Cost: 55.00 Industry: Chemicals Completion: August 2015 Location:Mahesana, Gujarat

Maharashtra. Work to commence by December 2015.

Contact: Modepro India Pvt. Ltd., 409, Bezzola Complex, SionTrombay Road, Mumbai Suburban, Maharashtra 400071.

Tel: (022)-25221698 / 25234659 / 25299389, Fax: 25221006 Email: info@modepro.com

BULK DRUGS

Promoter: SMS Pharmaceuticals Ltd. Cost: 30.00 Industry: Bulk Drugs Completion: NA Location: Ranga Reddy, Telangana SMS Pharmaceuticals plans to expand bulk drugs capacity from 13.27 tpm to 32.2 tpm at Bachupally village in Ranga Reddy district of Telangana.

Arbuda Plastochem is expanding chemicals capacity from 2.5 tpm to 52.5 tpm at Kadi in Mahesana district of Gujarat.Work underway.

Contact: SMS Pharmaceuticals Ltd., Plot No: 19-III, Road No: 71 Opp. Bharatiya Vidya Bhavan Public School Jubilee Hills Hyderabad, Telangana 500034.

Tel: (040)-66288888, Fax: 23551401/ 23551402.

Email: info@smspharma.com

Contact: Arbuda Plastochem Pvt. Ltd., Survey No.191-192-193/1, Karan Nagar, KadiTaluka, Mahesana, Gujarat 382715. Tel: (02764)277201, Fax: 277641.

Email: export@arbuda.com

Promoter: Sunil Healthcare Ltd. Cost: 30.00 Industry: Drug Formulations Completion: NA Location: Alwar, Rajasthan

ACTIVE PHARMACEUTICAL INGREDIENTS

Promoter: Modepro India Pvt. Ltd. Cost: 25.00 Industry: Bulk Drugs Completion: NA Location: Pune, Maharashtra Modepro India plans to set up an active pharmaceutical ingredients unit with a capacity of 93.2 tpa at KurkumbhMIDC in Pune district of

CAPSULES

Sunil Healthcare is expanding capsules capacity from 7.7 billion numbers per year to 10 billion numbers per year at Old Industrial Area in Alwar district of Rajasthan.

Work underway.

Contact: Sunil Healthcare Ltd., Vijay Tower, 38E/252-A, ShahpurJat. Panchsheel Commercial Complex, Delhi - 110049 Tel: (011)-49435500 /55/66/77/88/ 99, Fax: 43850087

For a free trail access please log on to www.projectstoday.com CHEMICAL NEWS JANUARY 2015 z 49

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

1

According to latest estimate released by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation, Govt. of India, quarterly GDP at factor cost at constant (2004-05) prices for second quarter of 2014-15 is estimated at Rs. 14.39 lakh crore as against Rs. 13.66 lakh crore in the second quarter of 2013-14, representing a growth rate of 5.3 per cent. The economic activities which registered significant growth in the second quarter of 2014-15 over 50 z CHEMICAL NEWS JANUARY 2015

the second quarter of 2013-14 are ‘electricity, gas and water supply’ at 8.7 per cent, ‘construction’ at 4.6 per cent, ‘community, social and personal services’ at 9.6 per cent and ‘financing, insurance, real estate and business services’ at 9.5 per cent. The growth rates in ‘agriculture, forestry and fishing’ is estimated at 3.2 per cent, ‘mining and quarrying’ at 1.9 per cent, ‘manufacturing’ at 0.1 per cent and ‘trade, hotels, transport and communication’ at 3.8 per cent during this period.

200

2

The Centreâ&#x20AC;&#x2122;s Indirect tax collections at Rs 3,28,662 crore rose by 7.1 per cent during AprilNovember 2014-15 compared to Rs 3,06,814 crore during the corresponding period last year.

Excise collections dropped by 0.2 per cent to Rs 1,02,762 crore from Rs. 1,02,988 crore during April-November 2013-14. Customs collections increased by 10.2 per cent to Rs 1,23,308 crore from Rs. 1,11,844 crore during AprilNovember 2013-14. Service tax collections increased by 11.5 per cent to Rs 1,02,592 crore during April-November 2014-15 from Rs. 91,982 crore in April-November 201314.

3 4

Indiaâ&#x20AC;&#x2122;s gross domestic savings rate declined from 33.7 per cent in 2010-11 to 31.3 per cent in 2011-12 and to 30.1 per cent in 2012-13 (the latest year for which data is available).

The eight core infrastructure industries growth - crude petroleum, petroleum products, coal, electricity, cement, Natural Gas, Fertilizers and finished steel posted growth of 4.3% in AprilOctober 2014 compared to growth of 4.2% registered during April-October 2013. During April-October 2014, crude oil production recorded negative growth of 0.9% as compared to decline of 1.2% in April-October 2013.

Petroleum refinery products declined by 1.7% in AprilOctober 2014 as against the increase of 3.5% during AprilOctober 2013. Coal recorded growth of 8.5% compared to growth of 1.3% in April-October 2013. Cement registered growth of 8.1% as compared to growth of 4% recorded in April-October 2013. Electricity achieved growth of 10.5% in April-October 2014 compared to growth of 5.1% in April-October 2013. Finished steel recorded growth of 2.3% in April-October 2014 as compared to growth of 11.9% during the corresponding period in 2013. Natural gas declined by 5.6% in April-October 2014 as compared to decline of 16.1% in April-October 2013. Fertilizers registered negative growth of 1.1% in April-October 2014 compared to 2.7% growth recorded during April-October 2013.

5

Data on Index of Industrial Production (IIP) with the base year 2004-05, released by the CSO show that industrial production declined by 4.2% in October 2014 as compared to decline of 1.2% growth in October 2013. The manufacturing sector, which accounts for about 80% of the weightage in the IIP, declined by 7.6% in October 2014 as compared to fall of 1.3% in October 2013. The mining sector increased by 5.2% in October 2014 as compared to decline of 2.9% in October 2013. The Electricity recorded growth of 13.3% as compared to growth of 1.3% during October 2013. During April-October 2014, industrial production increased by 1.9% as compared to 0.2% growth recorded

Industrial Sector

BKJ : 15.12

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 : 15.12

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 : 15.12

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 : 15.12

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 JANUARY 2015 z 51

during April-October 2013.

The manufacturing sector posted growth of 0.7% in April-October 2014 as compared to decline of 0.1% in AprilOctober 2013. The mining sector recorded growth of 2.4% in April-October 2014 as compared to decline of 2.6% during April-October 2013. The Electricity achieved growth of 10.7% as compared to growth of 5.3% during April-October 2013.

410 360 310

Industrial Sector

BKJ : 15.12

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 : 15.12

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 : 15.12

Consumer Durables : Prod. Index

(Base : 2004-05 = 100)

200

160

120

2014-15

210 180

On the foreign trade front, Indiaâ&#x20AC;&#x2122;s exports during November 2014 valued at $25.96 bln. increased by 7.3% from its level of $24.2 bln. in November 2013. Imports during the month at $42.8 billion increased by 26.8% from its level of $33.8 bln.

Industrial Sector

BKJ : 15.12

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

2014-15 2013-14

140

270 240

7 8

According to the industry-wise IIP data, the Chemical Industry declined by 10.3% in October 2014. During April-October 2014 the industry registered negative growth of 2% from AprilOctober 2013.

180

2012-13

300

6

Going by the use-based classification of IIP data, in October 2014, the production of Capital Goods segment of the manufacturing industries decreased by 2.3% as against the increase of 2.5% in October 2013. Intermediate Goods production declined by 3.1% in October 2014 as compared to increase of 2.7% in October 2013. Basic Goods sector posted growth of 5.8% as compared to decline of 0.4% in October 2013. Consumer Durables declined by 35.2% in October 2014 as compared to decline of 12% in October 2013. Consumer Non-durables declined by 4.3% as compared to rise of 1.9% in October 2013. During April-October 2014, Capital Goods posted growth of 4.8% as compared to decline of 0.2% in April-October 2013.

Intermediate Goods production increased by 1.6% in April-October 2014 as compared to growth of 2.7% in April-October 2013. Basic Goods sector witnessed growth of 7.6% as compared to increase of 1.1% in April-October 2013. Consumer Durables declined by 16% in AprilOctober 2014 compared to decline of 11.3% during the corresponding period in 2013. Consumer Non-durables during April-October 2014 increased by 1% as compared to increase of 6.8% during April-October 2013.

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

52 z CHEMICAL NEWS JANUARY 2015

2012-13

100 80

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

Industrial Sector BKJ : 15.12 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

in November 2013. India’s total exports during AprilNovember 2014-15 valued at $215.76 bln. increased by 5% from its level of $205.4 bln. in April-November 201314. Imports during the period at $316.4 billion increased by 4.7% from its level of $302.3 bln. in April-November 2013-14. Oil import bill in April-November 2014-15 was lower by 1.6% from the level of oil imports in AprilNovember 2013-14. Non-oil imports in April-November 2014-15 were higher by 8.1% from non-oil imports in AprilNovember 2013-14. The trade deficit for April-November 2014-15 was estimated at $100.6 billion, higher than the deficit of $96.9 billion during the corresponding period in 2013-14.

9

India’s foreign exchange reserves declined by $1.64 billion to $314.66 billion for the week ended 5 December 2014. The foreign currency assets decreased by $867.4 million to $289.95 billion. The value of gold reserves remained unchanged at $19.73 billion compared to previous week. The value of special drawing rights (SDRs) declined by $21.6 million to $4.2 billion. India’s reserve position with the International Monetary Fund (IMF) was down by $7.7 million to $1.51 billion.

10 11

Indian Railways carried 713.11 million tonnes of revenue earning freight traffic during April- November 2014 compared to freight traffic of 677.58 million tonnes carried during the corresponding period last year, recording an increase of 5.24 per cent.

The annual rate of inflation, based on monthly WPI, declined to 0.0% (provisionally) for the month of November, 2014 (over November,2013) as compared to 1.77% (provisional) for the previous month and 7.52% during the corresponding month of the previous year.

35000

External Sector Exports

2012-13

BKJ : 15.12

2013-14

2014-15

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 : 15.12

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 : 15.12

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

12

ALL INDIA CONSUMER PRICE INDEX NUMBER FOR INDUSTRIAL WORKERS (CPI-IW) ON BASE 2001=100 FOR THE MONTH OF OCTOBER 2014 REMAINED STATIC AT 253.

CHEMICAL NEWS JANUARY 2015 z 53

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NEWS FROM MEMBERS RELIANCE SIGNS MoU WITH PETROLEOS MEXICANOS (PEMEX) Reliance Industries Limited (RIL) and the Mexican state owned company, Petroleos Mexicanos (PEMEX) have entered into a Memorandum of Understanding (MOU). As per the MOU, RIL will cooperate with PEMEX for assessment of potential upstream oil and gas business opportunities in Mexico and jointly evaluate value added opportunities in International Markets.

RIL and PEMEX will also share expertise and skills in the relevant areas of oil and gas industry including for deep-water oil and gas exploration and production. The MoU envisages sharing of RIL’s pioneering expertise in deepwater development & best practices in East Coast of India and RIL’s experience in shale gas in United States. Reliance will also provide technical support and share experience with PEMEX for refining value maximisation and other technical optimization strategies.

RIL and PEMEX will also collaborate to exchange experiences on environmental and social 56 z CHEMICAL NEWS JANUARY 2015

responsibility front. The signing of the MOU marks further strengthening of the long standing relationship between RIL and PEMEX. RIL’s cooperation with PEMEX is in line with its growth strategy to explore opportunities to expand its international asset base in regimes having internationally attractive competitive terms. The company hopes to leverage its organizational capabilities and expertise to create long term value for Exploration and Production Business and for RIL on the whole.

BPCL PLANS RS 4,588-CR FORAY INTO PETROCHEMICALS The company will manufacture downstream petrochemicals using propylene, which will be available after the ongoing Integrated Refinery Expansion Bharat Petroleum Corporation Ltd (BPCL) is planning to diversify into downstream petrochemicals with an investment of Rs 4,588 crores by using propylene. “The Board of Directors of BPCL have given their approval for diversification into petrochemicals at an estimated

capital cost of Rs 4,588 crores,” said BPCL in a BSE filing.

The PSU refiner is planning to produce niche petrochemicals such as acrylic acid, acrylates and oxo alcohols, which are predominantly being imported into the country, at its Kochi refinery facility, using the polymer grade propylene that will be available after the ongoing Integrated Refinery Expansion Project (IREP) is completed.

BPCL is in process of increasing the refining capacity of Kochi refinery from 9.5 million metric tonne per annum (MMTPA) to 15.5 MMTPA under IREP project and improve the auto-fuel quality to Euro-IV/V levels to meet the growing demand of petroleum products in Indian market.

This would also upgrade the refinery residue stream to value added distillates, which BPCL is planning to use for diversification into value added petrochemical products.

BPCL’s planned petrochemical products will have major applications in industries such as paints and coatings, adhesives, plasticisers, solvents, water treatment, etc. The petrochemical unit is expected to come on stream during the financial

year 2018-19. The project proposal will now be submitted for obtaining environmental clearance, said BPCL in a BSE filing.

Kochi refinery is presently producing petrochemical feed stocks such as benzene, toluene and propylene in addition to the various petroleum products and specialty products. Increased quantities of naphtha will be produced in the refinery after the proposed capacity expansion.

BPCL will now integrate the refinery with a petrochemicals complex to utilise naphtha and other feedstocks from the refinery.

JUBILANT LIFE SCIENCES WINS EXCELLENCE AWARDS AT ‘INDIA PHARMA AWARDS’ 2014 Conferred with two prestigious awards in ‘Corporate Social Responsibility’ and ‘Environment, Health & Safety (EHS)’ Jubilant Life Sciences has been conferred with this year’s two prestigious CPhI India Pharma Awards in Excellence in Corporate Social Responsibility and Excellence in Environment, Health & Safety (EHS) at an awards ceremony here.

The CPhI India Pharma Awards recognizes and rewards selected path-breaking initiatives undertaken by the Indian Pharmaceutical industry around key areas of quality, product design, cost management, packaging and environmental health & safety.

Jubilant was chosen for Excellence in Corporate Social Responsibility for its exemplary work through outreach activities that has resulted in betterment of the wider community and environmental sustainability. Jubilant through its non-profit wing, Jubilant Bhartia Foundation (JBF), has been engaged in empowering communities with initiatives that focus on primary education, basic healthcare and skill development for employability and self-sustenance.

The second award for Excellence in Environment, Health & Safety (EHS), was conferred to Jubilant for its initiatives in improving EHS standards and compliance with a positive impact on company’s profitability, external stakeholders and society at large. The award recognizes Jubilant’s outstanding achievements in ensuring better regulatory compliance, reduced resource (e.g. water/ energy, RM) consumption & cost of production, reduced ecological footprint (emission/ effluent/ hazardous waste), and reduced Carbon footprint amongst many others.

Conveying his pleasure on the award, Mr. Shyamsundar Bang, Executive Director – Manufacturing

& Supply Chain, Jubilant Life Sciences said, ‘We are elated on winning the two prestigious awards.

It is a recognition of our efforts and reflects our commitment for society and its well-being. Being a follower of principles of sustainability and inclusive growth, improvement in EHS (Environment, Health and Safety) and CSR performance always gets a special attention at Jubilant and is considered an integral part of day to day business activities.”

Adding further, Mr. Bang said, “The award is an encouragement of our efforts in CSR, where our initiatives in Education, Healthcare and Social Entrepreneurship have impacted many lives and initiatives

RCF’S CHARITABLE SUPHALA TRUST PATHOLOGY LAB INAUGURATED

Mr. R. G. Rajan, Chairman & Managing Director, Rashtriya Chemicals and Fertilizers Ltd., inaugurated the Pathology Laboratory for providing free of cost pathological services to patients belonging to economically weaker sections of Chembur, recently. During the function Mr. C. M. T. Britto, Director (Technical), Mr. A. B. Ghasghase, Director (Marketing.), Mr. Suresh Warior, Director (Finance), Mr. Rajesh Kundan, IRS, CVO, Dr. H. Khorakiwala, CEO, Wockhardt Foundation, Mr. Subodh Acharya Executive President Suphala Trust and other senior dignitaries were present.

This pathology laboratory will be run by Wockhardt Foundation and space for the same is given by Suphala trust. Approximately 15000 patients are likely to get benefit from this lab per annum.

CHEMICAL NEWS JANUARY 2015 z 57

in EHS are helping to shape a safer and cleaner ecosystem for citizens.”

BAYER TO EXPAND THERMOPLASTIC POLYURETHANE CAPACITY IN CUDDALORE The company will increased the capacity from 2,500 metric tonnes to 6,000 metric tonnes Bayer MaterialScience plans to increase thermoplastic polyurethane (TPU) production capacities in Cuddalore, Tamil Nadu, to meet the continued growth in demand for TPU. With the addition of a second TPU production line, which expected to be completed by the second quarter of 2015, the annual capacity of Cuddalore site will increase to 6,000 metric tonnes from its current capacity of 2,500 metric tons.

Marius Wirtz, Head of TPU Business at Bayer Materialscience, said “As the only local TPU producer, BMS has been commited to the development of the Indian TPU market for over 18 years. The planned increase of our local capacity is an important milestone to continuously support our customer’s growth with custom-made TPUs in high quality and with short lead times.”

58 z CHEMICAL NEWS JANUARY 2015

Ajay Durrani, Managing Director and Senior Country Representative - Indian Subcontinent, Bayer MaterialScience Pvt. Ltd., added, “Bayer MaterialScience continues to see strong growth opportunities in India across all business units. There is considerable demand in the Indian market for TPUs which is driven by an increasing appetite for high-quality end products. With this, we are convinced that the Indian market has strong fundamentals to utilise the scale of investments in TPU.” TPU is used in a wide range of industry segments and applications such as automotive, textile, shoe, castor wheel, cable sheathing, pneumatic tubing, solution coatings and adhesives. The company is the local market leader and offers a wide range of innovative TPUs from both Bayer’s local and global TPU portfolio.

The Cuddalore site supplies TPU under Bayer’s trade name Desmopan to the Indian market as well as to customers in Europe.

The company has recently received Environmental Clearance from the Ministry of Environment which is supplemented by a permit from the Tamil Nadu Pollution Control Board (TNPCB).

SOLVAY TO RAISE POLYMER PRODUCTION CAPACITY BY 25% IN INDIA The company will increase capacity of its Panoli plant, which recently received Responsible Care certification from ICC, to meet surging demand for KetaSpire PEEK and AvaSpire PAEK specialty polymers Global specialty chemicals major Solvay will increase resin production capacity at its plant in Panoli, Gujarat, by 25 percent to support strong demand for its innovative ultra-high performance polymers KetaSpire and AvaSpire. The Panoli plant recently received Responsible Care certification from the Indian Chemical Council (ICC) recognising its dedication to developing and supplying products and services that, throughout their life cycle, pose minimum risk to human beings and the environment, while best meeting customer needs.

Solvay’s Global Business Unit Specialty Polymers offers a wide range of high and ultra-high performance polymers for various industrial applications. Due to their strength, toughness, excellent friction and wear properties, heat and chemical resistance, Solvay’s

KetaSpire and AvaSpire are used in markets growing at least 8-10% annually. In transportation, these ultra-polymers replace metals and help make cars and airplanes lighter thereby reducing fuel consumption and CO2 emissions. Other key markets include healthcare, electronics and energy.

Capacity expansion of the polyaryletherketone resin, used as a base to make KetaSpire polyetheretherketone (PEEK) and AvaSpire polyaryletherketone (PAEK), is already underway to reach more than 1,000 tons per year in the third quarter of 2015.

“Demand for KetaSpire and AvaSpire resins has been growing significantly thanks to Solvay’s ability to deliver innovative and tailored solutions in close relations with its customers. Today’s announcement to debottleneck capacity shows we are determined to keep pace with this growing demand worldwide and with our customers’ creativity in leveraging the features of our innovative materials,” said Augusto Di Donfrancesco, President of Solvay Specialty Polymers.

Ever since commissioning its polyaryletherketone resin operations in 2008, Solvay Specialty Polymers has progressively built up resin capacity at Panoli. Solvay’s major R&I centre in Savli, also located in Gujarat and about 100 km from Panoli, made important contributions to innovations that are supporting the site’s expansion.

CAMPHOR & ALLIED PRODUCTS INKS SUPPLY PACT WITH US-BASED IFF The company will supply fragrance ingredient intermediates and finished products to the US company Camphor & Allied Products Ltd, the manufacture of terpene and aroma chemicals, has entered into a supply agreement with the US-based International Flavours and Fragrances Inc (IFF). Camphor

BASF TO SET UP RS 360 CR INNOVATION CAMPUS IN NAVI MUMBAI The innovation campus, which will start in 2017, will house 300 scientists who will collaborate on global and regional research and development projects The Chemical giant BASF is setting up a new innovation campus with an investment of Euro 50 million (about Rs 360 crores) in Navi Mumbai.

The facility, to be built by BASF Chemicals India Private Limited (a 100 percent subsidiary of BASF SE), will accommodate around 300 scientists investigating areas such as crop protection, process development and polymer research. The BASF Innovation Campus (Mumbai) will begin operation in 2017 and will include synthesis, application, process, and analytical laboratories.

BASF Innovation Campus (Mumbai) will be a key hub of its global research and development (R&D) network, and, next to Shanghai, the company’s second major R&D location in Asia Pacific, which started operation in 2012.

This investment is part of BASF’s ‘grow smartly’ strategy in Asia Pacific and it aims to locate 25 percent of its global R&D in Asia Pacific by 2020 to develop innovative solutions that address the region’s challenges of resource efficiency, food and nutrition, and quality of life.

Martin Brudermuller, Vice Chairman of the Board of Executive Directors, BASF SE, and responsible for the Asia Pacific region, said, “BASF is bullish about India’s growth story and the investment in Innovation Campus (Mumbai) is a testimony to it. We will not only serve our customers in all industries in the region but also in other regions with global research projects that will be led out of Mumbai. Along with this important new investment in Mumbai, we are also establishing specialised research facilities in Asia Pacific in the areas of electronic materials, battery materials, catalysis, mining, water treatment, polymers and materials. Step by step, Asia Pacific thus becomes an integral part of our global innovation power.”

The innovation campus in Navi Mumbai, which will host global research activities and regional and local development activities, will serve BASF’s Performance Chemicals, Care Chemicals, and Pigments & Dispersions businesses. It will also lead to consolidation of BASF’s R&D activities in India, where it has at present two R&D centres in Mumbai and Navi Mumbai.

Harald Lauke, designated President of Advanced Materials & Systems Research, added, “The BASF Innovation Campus (Mumbai) will bring the best international scientists from India and other parts of the world together into the global BASF R&D Verbund. BASF’s global major research platforms, from beginning of 2015 namely advanced materials & systems research, bioscience research, and process research & chemical engineering, will be active in Mumbai.”

“A stronger R&D presence in India will create new opportunities for building up and expanding customer relationships and scientific cooperation programs that will benefit both BASF and the India R&D community.

Additionally, the BASF Innovation Campus (Mumbai) will open up career opportunities for local scientific talent,” said Dr. Raman Ramachandran, Chairman and Managing Director, BASF India Limited & Head South Asia.

CHEMICAL NEWS JANUARY 2015 z 59

& Allied Products Ltd informed BSE on November 25, 2014 that the company has entered in to a multi-year manufacturing and supply agreement for the manufacture of fragrance ingredient intermediates and finished products with IFF Inc, USA. IFF is one of the top five global companies in fragrance and flavours, which are used used in different areas such food products, beverages, beautycare and detergents. The company has three manufacturing facilities in India located at Gurgaon, Chennai and Jammu.

The supply deal with IFF is expected to strengthen Camphor & Allied Products’ manufacturing capabilities and leverages on the strengths of both companies and deliver enhanced value to all the stakeholders in India and across the globe.

Camphor & Allied Products Ltd is India’s largest manufacturers of variety of terpene chemicals and other speciality aroma chemicals that are used in vast array of industries ranging from flavours & fragrances, pharmaceuticals, soaps & cosmetics, rubber & tyre, paints & varnishes, etc.

Camphor & Allied Products has two manufacturing plants in India at 60 z CHEMICAL NEWS JANUARY 2015

Nandesari, Vadodara and Bareilly, Uttar Pradesh. While Nandesari plant manufactures high value fragrance chemicals and fragrance chemical intermediates, the Bareilly facility handles a volume of 20,000 tonnes of raw materials and finished products annually.

two identical streams of 1,000-tpd NPK granulation plant. It has been conceived to manufacture different grades of AN and DAP-based NPK fertiliser with an option of producing fortified grades from the same units.

DEEPAK FERTILISERS MOVES AHEAD FOR NPK EXPANSION

In keeping with the country’s target of achieving $500 billion textile exports, Reliance Industries Limited (RIL) again reiterated its plans to expand polyester chain capacity from current 7.5 million tonnes to 15 million tonnes.

Speaking on the sidelines of ‘INTEXCON 2014, an international conference on textiles, R.D. Udeshi, president (polyester chain), RIL said, “We are expanding the entire value chain of polyester including PTA. The investment will be around $4 billion and the capacity will be increased from 7.5 million tonnes to 15 million tonnes.”

Udeshi added that the additional capacity will commission in three years. As part of the expansion, the company is also doing road shows, he said. “We are trying to do road shows across India. We did in Mumbai, Surat and other parts of the country,” Udeshi added.

Earlier, while speaking during

Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) is gearing up for public hearing in the run-up to securing delayed environmental clearance for its Rs. 360-crore NPK expansion project at Taloja in Maharashtra. The Maharashtra Pollution Control Board has scheduled the public hearing on 17th December.

The Ministry of Environment and Forests (MoEF)-constituted expert panel for industrial projects had deferred grant of environmental approval by about six months back by raising certain safety issues. The company has proposed to expand the single-grade nitro phosphate fertiliser unit to a multiple-grade fertiliser facility. This would result in increase in the unit’s capacity to 600,000 tonnes per annum (tpa) from the present 324,000-tpa. The project envisages installation of

RELIANCE PLANS POLYESTER CHAIN CAPACITY EXPANSION

the conference, Udeshi said that the country has set a target of $500 billion textile exports wherein polyester will have to play a major role. As part of that, in around eight years, RIL plans to increase polyester capacity from 4.5 million tonnes to 20 million tonnes, Udeshi stated in his speech.

As part of pre Vibrant Gujarat Summit events, the international conference was jointly organised

by Diagonal Consulting and Textile Excellence on ‘India - Opportunities for Global Investment in Textiles’.

PIDILITE INDUSTRIES ESTABLISHES SUBSIDIARY IN ETHIOPIA The Ethiopian subsidiary, Pidilite Chemical Plc, will manufacture adhesives, mastics, paints, varnishes or similar coatings, printing, writing and painting inks, etc.

Pidilite Industries Ltd, the maker of Fevicol adhesive, along with its wholly owned subsidiary, Pidilite International Pte Ltd, has established a private limited subsidiary company in Ethiopia to expand its business in Africa. The Ethiopian subsidiary, Pidilite Chemical Plc, will manufacture adhesives, mastics, paints, varnishes or similar coatings, printing, writing and painting inks, etc.

ASIA COAT + INKS SHOW 2015 All India Printing Ink Manufacturers Association (AIPIMA) has organized the 9th edition of their Exhibition, ASIA COAT + INKS SHOW 2015 in Hall no. 5 at Bombay Exhibition Centre, Gurgaon, Mumbai, during March 2-4, 2015. The Organisers are pleased to inform that all the available space is now occupied by the leading Raw Material, Machinery and Equipment suppliers.

Considering that the Association should give the opportunities to their Inkmaker Members to exhibit their products, this Exhibition has

Inkmakers as their exhibitors also.

AIPIMA is promoting this Exhibition not only to the Printing Ink and Paint/Coatings industry, but also to the Printers, Packaging industry and Print buyers.

AIPIMA Managing Committee is working very hard to ensure maximum footfall so that they can take future Exhibitions to the global level.

The Asia Coat +Inks Show scheduled on March 2-4, 2015 will interest the visitors from Printing Inks; Paints; Coatings; Printing, Packaging and from the Print buyers.

An International Conference is planned on February 28, 2015 at Hotel Lalit, Mumbai. The theme of the Conference is “Trends-IssuesWay Forward”. Eminent speakers from Raw Material manufacturers, printing and packaging industry and seniors from the leading Ink manufacturing companies are invited to participate.

For further information and Registration, please contact AIPIMA office on 29257454/3907 and/or email: aipima.ltd@gmail.com

RANBAXY RECEIVES APPROVAL FOR MALARIA DRUG SYNRIAM FROM 7 AFRICAN COUNTRIES While the company has already launched the product in Uganda, it is planning to introduce the product in other six countries towards end of January 2015 Ranbaxy Laboratories Limited has received the regulatory approval to launch India’s first new chemical entity (NCE), Synriam (arterolane maleate 150 mg + piperaquine phosphate 750 mg drug) in seven African countries - Nigeria, Uganda, Senegal, Cameroon, Guinea, Kenya and Ivory Coast. The company has already launched the product in Uganda, while it is planning to introduce the product in other

RELIANCE INDUSTRIES SIGNS PACT WITH PEMEX FOR OIL HUNT IN MEXICO Reliance Industries Ltd (RIL) and Mexico’s state-owned Petroleos Mexicanos (Pemex) on December 4, 2014 signed an agreement for assessment of potential upstream oil and gas business opportunities in Mexico.

The deal will evaluate value-added opportunities in international markets.

Consequences of the deal: z RIL and Pemex will share expertise and skills in the relevant areas of oil and gas industry, including for deep-water oil and gas exploration and production. z The deal could serve as an option for risk diversification of supply from several countries for Reliance Industries Limited. z It will also enable the company to redeploy its workforce to outside projects as not much is happening in India due to lack of approvals. z RIL can explore JV options with US oil companies such as Shell and Exxon, which have significant experience in the US Gulf of Mexico for bidding/ developing oil blocks. z The company’s cooperation with Pemex is in line with its growth strategy to explore opportunities to expand its international asset base in regimes with attractive competitive terms.

Mexico is considered as the last few low-hanging fruits available for oil exploration, located in an area with proven deepwater potential, ready infrastructure, oil services capability and oil evacuation options.

As per the reports, around 270 locations with more than 2,300 exploration opportunities have been identified in deepwater. Also, due to the shale oil boom in the US, Mexico is likely to be more dependent on exports of oil, predominantly heavy oil to Asia, and may look for tactical partnerships from this region.’

CHEMICAL NEWS JANUARY 2015 z 61

countries towards end of January 2015.

The new drug conforms to the recommendations of the World Health Organization (WHO) for using combination therapy in malaria.

Synriam provides quick relief from most malaria-related symptoms, including fever, and has a high cure rate of over 95 per cent.

Arun Sawhney, CEO and managing director, Ranbaxy, said, “Most malaria cases and deaths occur in sub-Saharan Africa. It is the need of the hour to make available new therapy options to patients in the region. Synriam is among the best options available today as it is highly effective, affordable and a convenient therapy option, leading to better compliance. We are confident that the drug will help the government and healthcare system in Africa to

INTERNATIONAL CHEMICAL DOWNSTREAM CONFERENCE – 2015 The Chemical & Alkali Merchants Association [CAMA], with members over 2000 and above, is one of the prime associations of India, comprising of leading importers, indenters, authorized stockists of various producers, suppliers and brokers. The 58 years old association – CAMA, is proud to support the upcoming INTERNATIONAL CHEMICAL DOWNSTREAM CONFERENCE brought out by Techno Orbichem and ElitePlus++Business Services. This platform will bring the entire chemical industry under one roof.

For further details and Registration, please contact: ElitePlus++ Business Services Tel: 022-260000556 / 26000555 Email: registration@eliteplus.co.in and/or Technon OrbiChem Ltd., UK Tel: +44 20 79243955 URL: www.orbichem.com 62 z CHEMICAL NEWS JANUARY 2015

fight the menace of malaria.”

Double-blind, randomised, multicentre, Phase III clinical trial for the drug was conducted at multiple sites in Asia and Africa including India, Thailand, Bangladesh, Ivory Coast, Mozambique, Malawi, Senegal, Mali and Democratic Republic of Congo. This phase III clinical trial has demonstrated that Synriam (fixed dose combination of arterolane maleate and piperaquine phosphate 150+750 mg) has comparable safety and efficacy profile to existing gold standard (fixed dose combination of artemether and lumefantrine 20 +120 mg ) for treatment of acute uncomplicated Plasmodium falciparum malaria in patients aged 12 years and above.

Ranbaxy is also conducting phase III clinical trials for the paediatric formulation of Synriam in paediatric patients of uncomplicated Plasmodium falciparum malaria.

Synriam, a new age therapy recommended for the treatment of uncomplicated Plasmodium falciparum malaria in adults, was launched by Ranbaxy on World Malaria Day, April 25, 2012 in India. Since its launch, the drug has successfully treated around one million patients in the country.

TECHNIP TO BUILD ONSHORE OIL & GAS TERMINAL FOR ONGC The hydrocarbons extracted from VA and S1 deep water offshore fields will be transported to the proposed onshore oil and gas terminal for processing.

Technip has been awarded an approximately 100 million contract by Oil and Natural Gas Corporation Limited (ONGC) to build a 6 MMSCMD onshore terminal at Odalarevu in Andhra Pradesh as part of the Integrated Development of Vashishta (VA) and S1 fields.

These VA and S1 fields are located 30-35 km off the Amalapuram coast in the KG basin, off the East coast of India, at water

depths of 250 to 700 meters. The Onshore terminal awarded to Technip is one of the critical components of the Integrated Development of VA and S1 fields.

Technip’s scope of work for this EPCC contract includes basic design, detailed engineering, procurement, fabrication, inspection and testing, installation, pre-commissioning and commissioning of the new onshore terminal facilities which will be integrated to the existing terminal.

The hydrocarbons extracted from VA and S1 deep water offshore fields will be transported to the proposed onshore oil and gas terminal for processing. The facility consists of a slug catcher for well fluid separation, gas compressors, high integrity pressure protection system (HIPPS), glycol dehydration, dew point control, mono ethylene glycol regeneration and gas metering system. It also includes utilities and off-sites such as air compression, nitrogen generation, flare system, storage tanks and diesel generators.

Technip’s operating center in Delhi, India, will manage and execute the project, which is scheduled to be completed in the second half of 2016. z

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

CHEMICAL NEWS JANUARY 2015 z 63

NEWS NATIONAL NATIONAL CHEMICAL POLICY TO BE OUT SOON The Indian chemical industry is expected to grow at a rate of 15% per annum over the next few years, says Dr. A. J. V. Prasad The current government is working on the National Chemical Policy and will be coming up with the document soon, according to Dr. A. J. V. Prasad, Joint Secretary, Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, who was speaking at CII’s chemical industry conference held in Mumbai on November 26, 2014.

Dr. Prasad added, “The chemicals industry, is expected to grow at a rate of 15% per annum over the next few years, already makes a major contribution to what’s made in India. The Indian chemical industry including fertilisers and petrochemicals is estimated 64 z CHEMICAL NEWS JANUARY 2015

approximately at $ 144 billion which is about 4% of the global market of $ 3.6 trillion. The industry accounts for 15.95 per cent of India’s manufacturing and 2.51 per cent of its overall GDP, however its impact is much broader.”

According to CII, the aim of the event is to highlight on the importance of chemistry in everyday life and bringing to the fore the issues and opportunities of the industry. The forum provided an opportunity to consider what ‘Make in India’ really meant and its implications for the Indian industry with special focus on the chemical sector. The conference was a part of an on-going campaign - Chemistry Everywhere - to engage people in the vital and valuable contribution that the industry makes to the wellbeing of all Indians.

Nadir Godrej, Chairman, CII

National committee on Chemicals, and CMD, Godrej Industries Ltd, said, “For ‘Make in India’ to live up to its promise requires the collaborative efforts of many stakeholders including government, industry and academicians. We would also appeal various industries to reduce imports by encouraging indigenous production which will help us grow on the back of buoying campaigns like Make in India & Swatch Bharat.

Chemistry is the solution to the society.”

GOVT PLANS TO IMPORT TECHNOLOGY TO BOOST INVESTMENT IN RENEWABLE ENERGY While about $ 6.1 billion has been invested in renewable energy in India, China has received investments worth about $ 56.3 billion during the year 2013-14

In order to increase energy generation from renewable resources, the centre is planning to take steps to encourage global companies for investing in this sector. The Government is contemplating to seek international cooperation for importing technology to boost investment in renewable energy sector of the country, said PiyushGoyal, Minister of State for Power, Coal & New and Renewable Energy (Independent Charge), in the LokSabha.

As per the Global Status Report 2014 of Renewable Energy Policy Network (REN-21), about $ 6.1 billion has been invested in renewable energy in India, whereas China has received investments worth about $ 56.3 billion in renewable energy during the year 2013-14. The investment was mainly for solar and wind power projects, Goyal.

To showcase India’s renewable energy potential globally, the Ministry of New and Renewable Energy (MNRE) is organising the Global Renewable Energy Investment Promotion Meet (RE-INVEST) from 15-17 February, 2015 in New Delhi as a follow up to the ‘Make in India’ initiatives launched by the Prime Minister. “This meet will give an opportunity to all states to showcase their policies to facilitate investment, progressive, initiatives and investor friendly climate to attract investments in renewable energy,” added Goyal.

NEW FERTILISER UNITS TO BOOST PRODUCTION IN NEXT FIVE YEARS The government is planning to start and revive at least 6-7 fertiliser plants in next 5 years in both public and private sectors, according to Ananth Kumar Six to seven fertiliser manufacturing facilities are expected to boost domestic production over the next five years. “For the last one decade, the country has not seen a new fertiliser plant but the Prime

Minister has now told us that we should strictly follow the principle of ‘Make in India’. Accordingly we are going to start and revive at least 6-7 fertiliser plants in next 5 years in both public and private sectors,” said Ananth Kumar, the Union Minister of Chemicals and Fertilizers, at the Fertilizer Association of India (FAI) conference in New Delhi on December 11, 2014. The minister said this will be done through a mixture of new units and revival of closed sites to augment the country’s existing capacity.

Assuring the industry that government will clear fertiliser subsidy arrears within a month, Ananth Kumar also assured that various issues relating to the fertiliser sector would be addressed at the earliest.

At present, about eight units of state-owned FCIL and HFCL are closed. The ministry is working on reviving the five closed plants of the Fertilizer Corporation of India Ltd (FCIL) and Hindustan Fertilizers and Chemicals Ltd (HFCL).

The Fertilizers Ministry is seeking increased supply of gas for urea manufacturing plants. It has also asked oil ministry to explore the possibility of gas pipeline from Phulpur to Haldia, the minister

pointed out and that this can lead to revival of five closed plants.

Meanwhile, Ananth Kumar, during a discussion on a private members bill in the RajyaSabha on December 12, 2014, pointed out that government is making every effort to increase production of fertilisers in the country by reviving closed fertiliser companies at Gorakhpur, Talcher and at Ramagundam to begin with. He also proposed that the issue of reviving FACT can be discussed further with Union finance minister and the Chief Minister of Kerala. The Minister said government would extend subsidy to the three southern-based fertiliser companies in Mangalore, Chennai and Tuticorin, provided the State governments waive VAT on Naphtha based on which these plants are producing fertiliser at a high cost.

While calling for a comprehensive fertiliser policy, Ananth Kumar said in the RajyaSabha that there is a need to have a scientific debate on how to rationalise nutrient based subsidy (NBS) to bring down prices of N-P-K fertilisers. “We need to take urea, NPK, organic, bio-fertilisers and micro nutrients into consideration while discussing issues of imbalanced use of chemical fertilisers,” he added. The minister

YET ANOTHER HONOUR FOR PROF. G. D. YADAV The ACS Industrial& Engineering Chemistry Research, in its 10th December 2014 edition has published a Festschrift in Honour of PROFESSOR G. D. YADAV, Vice Chancellor, Institute of Chemical Technology (ICT), Mumbai. He has also been now elected as the Chair of the ACS India International Chemical Sciences Chapter.

The preface gives Professor Yadav’s multifaceted career path written by Prof. Suresh K. Bhargava (RMIT University Australia, Dr. Lakshmikantam and Dr. B. M. Reddy (IICT, Hyderabad).

The whole issue is available at: http://pubs.acs.org/toc/iecred/current# GanapatiDYadavFestschriftEditorial CHEMICAL NEWS JANUARY 2015 z 65

hoped that the announcement in the budget for setting up over thousand soil testing centres would help farmers to plan the mix of fertilisers that they should use.

GAIL INKS GAS SUPPLY PACT WITH WGL FOR LIQUEFACTION IN US The agreement has been signed for a period of 20 years and supplies are expected to commence from late 2017 when the LNG terminal, in which Gail holds liquefaction capacity, becomes operational Gail Global USA LNG LLC (GGULL), a subsidiary of subsidiary of Gail India, has signed a sourcing agreement with the US-based company WGL Midstream Inc (WGLM) for procurement of natural gas required to produce about 2.5 MTPA of LNG at the Cove Point Terminal located in Maryland, US. WGLM is a subsidiary of WGL Holdings Inc, a prominent natural gas company of the US. The definitive gas sale and purchase agreement has been signed for a period of 20 years and supplies are expected to commence from late 2017 when the LNG terminal, in which GGULL holds liquefaction capacity, becomes operational.

B C Tripathi, Chairman and Managing Director, Gail, said, “We are delighted to partner WGLM which is a part of a group having a rich history of over 160 years in natural gas supply business in the mid-Atlantic region. This agreement is another milestone towards Gail’s efforts in sourcing of LNG to meet the rising demand of gas in the Indian market. We are now in the process of chartering of LNG ships thereby entrenching our presence across the complete LNG supply chain and bring more value to the Indian customers.”

Terry McCallister, Chairman and Chief Executive Officer, WGL Holdings Inc, said, “WGLMidstream’s long-term relationship with GAIL capitalises on the growing supply 66 z CHEMICAL NEWS JANUARY 2015

of abundant natural gas from the Marcellus Shale production region.

This growing supply source has been providing clean burning natural gas to Northeast and Mid-Atlantic regions of the United States and now will supply the country of India as well.”

Gail has signed a 20 year sales and purchase agreement with Sabine Pass Liquefaction LLC, a unit of Cheniere Energy Partners, USA for supply of 3.5 million tonnes per year of LNG. Gail also signed a Terminal Service agreement for 2.3 million tonnes per year of LNG liquefaction capacity with Dominion Cove Point LNG LP, USA. WGL Midstream handles nonregulated gas business with operations covering midstream infrastructure and energy services.

Its parent, WGL Holdings, Inc., is a public utility holding company serving the Washington, D.C. metropolitan region and is a leading source for clean and efficient energy solutions with activities in 30 states. Washington Gas, its leading subsidiary has been providing natural gas service to customers in the D.C. metropolitan area for over 160 years and serves more than one million customers in the District of Columbia, Maryland and Virginia.

PARADIP PCPIR: NO GOVT. FUNDING, SAYS PETROLEUM MINISTER The government has not provided any funding for the proposed Petroleum, Chemicals and Petrochemicals

Investment Region (PCPIR) at Paradip, according to a release issued by the Petroleum and Natural Gas Ministry. “As per information provided

by Department of Chemicals and Petrochemicals, no budgetary support has been provided to Indian Oil Corporation (IOC) for part financing the capital cost of PCPIR,” said the release quoting written reply by Petroleum and Natural Gas Minister, Mr. Dharmendra Pradhan in Rajya Sabha.

IOC’s upcoming crude oil refinery at Paradip holds the key to development of the PCPIR planned across 284 sq km in Kendrapara and Jagatsinghpur districts as it has been appointed as the anchor tenant for the complex.

The company recently laid foundation stone for development of a Rs. 3,150-crore polypropylene unit in the PCPIR, the first such investment in the petrocomplex by any firm. However, the investment announced by IOC is meagre when compared to the Rs. 2.8 lakh-crore investment estimated for the hub.

To attract foreign players to the PCPIR, Foreign Direct Investment (FDI) is allowed upto 100 per cent of a project. But no separate fast track provisions are there for FDI proposals, the release said.

A special purpose vehicle (SPV) called Paradip Investment Region Development Ltd. has been formed under state-owned Odisha Industrial Infrastructure Development Corporation Ltd (IDCO)

to implement the project. It has engaged Singapore-based Jurong Consultants to carry out feasibility study and product profile study of the PCPIR. The total infrastructural investment on the OdishaPCPIR has been pegged at Rs. 13,634-crore.

Out of this, the state government will contribute Rs. 1,800-crore while the balance will come from private players.

Launched in March 2007, PCPIR policy was envisaged to promote integrated manufacturing location for refinery, petrochemical crackers, and other downstream industries. The government has till date has approved five PCPIRs – Dahej (Gujarat), Paradip (Odisha), Visakhapatnam-Kakinada (Andhra Pradesh), Cuddalore-Nagapattinam (Tamil Nadu) and Bina (Madhya Pradesh).

BASF INDIA AND WÜRTH PARTNER TO DRIVE AUTOMOTIVE REFINISH COATINGS BUSINESS BASF India and Würth India said that effective January 1, 2015, Würth India will take over the import, distribution and technical service in India of Glasurit, a BASF premium automotive refinish paint brand.

“BASF and Würth are leading suppliers in the automotive sector and both have many years of experience in the automotive aftersales market,” said Raman Ramachandran, CMD, BASF India and Head of BASF in South Asia.

“The real value comes from helping our potential customers to become more successful by having better access to first-class automotive refinish solutions.”

“This partnership of BASF with Würth underlines our commitment to delivering premium automotive refinish products to bodyshop customers in India,” said Christophe Cazabeau, Head of Coatings Solutions, BASF India.

“The extensive distribution network of Würth, coupled with

their expertise in the automotive aftersales market, make them the ideal partner. Our Glasurit team in India, comprising product and technical experts, will also be transferred to Würth to support a smooth transition and to ensure the high-quality service to our customers remains uninterrupted.”

“We are delighted that BASF has chosen Würth as their partner. We have a strong sales and distribution network with 1,000 sales force in India that has been established over the course of the last 20 years. We are convinced that our local business partners will be excited about the opportunity to have access to BASF’s premium automotive refinish products,” commented Markus Dichtl, Managing Director of Würth India.

“Würth is looking at a high expansion speed in India. Glasurit® and the cooperation with BASF will play a vital role in this,” Dichtl added.

IOC'S PARADIP PP PLANT TO BE COMMISSIONED IN 2017-18 Indian Oil Corporation is investing Rs 3,150 crore in polypropylene project at Paradip, Odisha, stated Dharmendra Pradhan, MoS, Petroleum & Natural Gas, in Rajya Sabha Indian Oil Corporation Limited’s

(IOC) planned polypropylene (PP) project, to be built with an estimated cost of Rs 3150 crore, at Paradip(Odisha) is expected to be commissioned during 2017-18, informed DharmendraPradhan, MoS of Petroleum & Natural Gas, in a written reply in RajyaSabha.

Indian Oil is establishing a refinery of 15 million metric tonne per annum (MMTPA) capacity at Paradip, Odisha, at an estimated cost of Rs 34,162 crore. IOCL has completed a detailed feasibility study for setting up of a polypropylene plant which is a part of proposed petrochemical complex attached to the refinery. The plant will produce 7 lakh metric tonne per annum of PP. IOC is also planning to set up units for ethylene derivative project (ethylene glycol), para xylene & purified terephthalic acid (PTA), and petcoke gasification based derivatives, according to Pradhan.

GST IN HOUSE, BIGGEST TAX REFORM GETS ROLLING The Bill seeks to make the GST rate uniform across the country. However, to give some fiscal autonomy to the states and the Centre, there will be a provision of a narrow tax band over and above the floor rates. Earlier, a sub-panel of the empowered committee of states had recommended state GST at

NIRMA PLANS TO BUY FMC’S SODA ASH ASSETS Nirma, the detergent manufacturer, is eyeing a big acquisition in the US Sources suggest that Nirma is in talks with New York Stock Exchange (NYSE) - listed FMC Corp for buying their soda ash assets worth $1.5 billion. FMC Corp has appointed Bank of America Merrill Lynch and Goldman Sachs for the sale process, a direct source in the US said.

Sources suggest that Nirma is keen on the buyout but may have to participate in an aggressive bid process if there is enough interest from global players to buy the soda ash assets of FMC Corp. As part of its global expansion strategy, Nirma had bought Searles Valley Minerals (SVM) in 2007 which has three soda ash manufacturing facilities in California.

According to an analyst, “the acquisition of FMC Corp’s assets will be a significant development for the soda ash industry and will ramp up Nirma’s soda ash capacity, which is a key ingredient for soap & detergent manufacturers.”

But the Industry experts also indicate, “a large deal worth $1.5 billion may be too large for Nirma to digest, especially, if there is a bid process.”

CHEMICAL NEWS JANUARY 2015 z 67

13.99 per cent and central GST at 12.77 per cent. But, the rates will be decided later.

After GST is rolled out, both the Centre and states will simultaneously levy GST across the value chain. The Centre would levy and collect central GST and states would levy and collect state GST on all transactions within a state. Except for alcohol, all goods and services would come under GST, though some of these may be exempted from tax.

The Centre would also levy and collect integrated GST (IGST) on all inter-state supply of goods and services. Proceeds of IGST will be apportioned among the states.

GST is a destination-based tax.

All state GST on the final product will ordinarily accrue to the consuming state.

A new Article 246A is proposed to be included in the Constitution to confer simultaneous power to the Union and state legislatures to legislate on GST. This was required since the Centre and states would have to bring in their own GST Bills in Parliament and the respective Assemblies, after the Constitutional Amendment Bill would becomes a law. The government expects GST to be rolled out from 2016-17.

The government, until Thursday evening, had said the Bill would be introduced on Monday. The Bill wasn’t discussed in the House’s business advisory committee and LokSabha MPs discovered the introduction of the Bill when its copies were circulated among them on Friday.

Some states such as Tamil Nadu opposed the Bill, while West Bengal criticised the manner in which it was sought to be presented. Their MPs, along with those of some Left parties, spoke against the Bill or the manner in which it was tabled in the LokSabha.

Jaitley reached out to the Opposition by giving credit for GST 68 z CHEMICAL NEWS JANUARY 2015

to former West Bengal finance minister AsimDasgupta and the United Progressive Alliance (UPA) government for the progress made on the Bill. “The UPA Budget of 2006 spoke about GST, an idea originally conceived by the AtalBihari Vajpayee government, for seamless transfer of goods and services across India,” the finance minister said. He said the states were not divided politically on the issue.

Addressing a press conference later, Jaitley clarified the Bill need not go to the standing committee as it was already cleared by the committee of the previous LokSabha.

The Bill was tabled in the LokSabha in 2011, when PranabMukherjee was finance minister. After that, the standing committee had given its recommendations.

The Bill has included petroleum products in the ambit of GST. However, it will be at zero rate.

The industrial and transport fuels would be taxed at the GST rate at a date decided by the GST council, comprising the Union and state finance ministers.

Till the time the GST council does not arrive at the date, the Centre will continue to impose excise and states will impose VAT on petroleum products.

As part of easing the transition to the GST regime, the states would be allowed to levy an additional 1 per cent on supply of goods in the course of inter-state trade for a period of two years, over and above the IGST. The Bill has proposed to subsume Central Sales Tax, which is a tax on inter-state movement of goods in the present regime, into GST.

REVIVAL OF CLOSED FRETILISER UNITS AND LAYING OF GAS PIPELINES Revival of FCIL unit of Talcher through coal gasification technology is proposed through a joint Venture, to be set up soon. This was decided in a meeting under the chairmanship of the Minister

for Chemicals and Fertilisers, Ananth Kumar in New Delhi. The meeting was also attended by the Minster for Petroleum & Natural Gas DharmendraPradhan and the Minister for Power and Coal PiyushGoyal. As though, as a part of new mode for good governance, the ministers finalized some of the decisions then and there giving policy directions to the senior officials of their three ministries. It was a joint meeting of the concerned ministers and senior officials of all these ministries.

Issues like location and reservation of coal blocks for this fertilizer unit for the coal gasification purpose were discussed thread bare.

The proposed Joint Venture partners, Fertilizer Corporation of India, Gas Authority Of India Limited, Coal India Limited and RashtriyaFertilisers and Chemicals Limited also gave their views for firming up of the Joint Venture for the project.

Revival of closed unit of FCIL of Gorakhpur and HFCL Unit of Barauni also came up for detailed discussion.

The Petroleum minister informed that his ministry has decided to give gas for the Gorakhpur fertilizer unit for its immediate revival. He also informed the meeting that preparations will also be made for setting the gas pipeline for the revival of Barauni plant.

Ananth Kumar who chaired the meeting asked the officials about various alternate arrangements for looking into possibilities of providing the Gas pipeline connectivity to Madras Fertilisers Limited – Manali (MFL), Mangalore Chemicals & Fertilizers Limited, Mangalore (MCFL) and Southern Petrochemical Industries Corporation Limited , Tuticorin,(SPIC), as they were closed due to earlier decisions, being naphtha based units. The meeting discussed ways and means to supply gas to these units The Minister held detailed discussions to take all the above projects on a fast track mode. z

With Best Compliments From

EAST INDIA PHARMACEUTICAL WORKS LIMITED 6, Little Russell Street Kolkata - 700 071 Tel.: 2287 2262 / 2287 3004 / 2287 3007 2287 3009 / 2287 3041 / 2283 0709 Fax: 91-33-2287 3852 / 2287 4289 E-mail: eipwl@cal.vsnl.net.in Website: www.eastindiapharma.org

CHEMICAL NEWS JANUARY 2015 z 69

NEWS INTERNATIONAL

BASF, JIAHUA ENERGY TO BUILD SULFURIC ACID PLANT IN CHINA BASF and Jiahua Energy Chemical Co Ltd, a wholly owned subsidiary of Huafang Textile Co Ltd, have signed an agreement to set up a new sulfuric acid plant at the seaport town of Zhapu, Zhejiang Province in China. BASF will begin the groundwork to build its new electronics-grade sulfuric acid production facility at the Jiahua production site in Zhapu. Jiahua will be the key raw material supplier for the new BASF plant. The new BASF H2SO4 EG production plant in Zhapu is scheduled to begin construction within the next year and to start up in 2016.

“BASF’s new electronics-grade H2SO4 plant in China is another step towards our continued growth and expansion in China’s electronic materials market. Establishing our plant within the Jiahua site will allow us to provide electronic grade sulfuric acid locally, in order to better serve the needs of China’s fastgrowing semiconductor industry,” 70 z CHEMICAL NEWS JANUARY 2015

said LotharLaupichler, Senior Vice President, Electronic Materials Business Unit, BASF.

SAUDI ARAMCO, EXXONMOBIL JV COMPLETES CONSTRUCTION OF DESULFURIZATION FACILITIES Saudi Aramco Mobil Refinery Company Limited (SAMREF), a joint venture of Saudi Aramco and ExxonMobil, has completed construction of major desulfurization facilities, including a new hydrotreater, that dramatically cuts sulfur levels in gasoline and diesel.

The SAMREF partnership, which is celebrating 30 years of joint refining operations, demonstrates the longterm collaboration and progress towards meeting the energy needs of Saudi Arabia’s growing economy. The project is the largest investment in SAMREF’s history and will reduce the sulfur levels in gasoline and diesel by more than 98 per cent, to 10 parts per million, which makes the refinery an industry leader in emissions reduction.

“Our long-term partnership benefits from the technology and innovation from both companies.

Our refinery will continue to be an industry leader throughout the Middle East and in the global market place well into the future. It is also testimony of Saudi Arabia’s long-standing role as a reliable energy supplier to key geographic areas of the world,” said Khalid Al-Falih, President and CEO, Saudi Aramco.

STAY ON THE MARKET WITH YOUR BIOCIDAL PRODUCT AFTER 1 SEPTEMBER 2015 From 1 September 2015, a biocidal product consisting of, containing, or generating a relevant substance, cannot be placed on the EU market if the substance supplier or product supplier is not included in the Article 95 list for the product type(s) to which the product belongs. An updated guidance is now available.

The European Chemical Agency (ECHA) reminds all companies producing or marketing biocidal products to make sure that their

also been updated. It explains the obligations for companies in light of the revisions to Article 95 which came into force on 25 April 2014.

Furthermore, the Guidance now explains how active substances generated in situ should be dealt with, and how Article 95 submissions can be made by consortia. The update also provides further clarification on several sections, in particular on information requirements for Article 95 applications and on ECHA’s process for updating the Article 95 list.

FIRST ECHA GUIDANCE ON THE PIC REGULATION

substance or product suppliers are added to the Article 95 list under the Biocidal Products Regulation.

From 1 September 2015 onwards, a biocidal product consisting of, containing, or generating a relevant substance, cannot be placed on the EU market unless the substance supplier or product supplier is included in the list for the product type(s) to which the product belongs.

To make sure that the product stays legally on the market, companies need to: z Ensure within their supply chain that either a substance supplier or product supplier in the supply chain applies to be on the Article 95 list. z Start their preparations in time, especially for data-sharing negotiations. z Submit the application in time to allow ECHA to assess it by 1 September 2015. z Allow sufficient time to cover the need to provide additional data if the ECHA draft decision is negative.

The guidance on active substances and suppliers has

The re-cast EU Regulation that governs the export and import of certain hazardous chemicals has been in force since 1 March 2014.

This guidance document assists duty holders in applying the specific provisions for the export and import of certain hazardous chemicals under the Regulation.

The Prior Informed Consent Regulation (PIC) ((EU) No. 649/2012) implements within the EU the Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade. To achieve a higher level of protection of human health and the environment, a number of additional provisions that go beyond the Convention requirements were included in the PIC Regulation.

The scope of the PIC Regulation extends, for example, to requirements for export notification and for explicit consent to all countries rather than applying only to those countries that are party to the Rotterdam Convention. This new guidance explains the obligations under the PIC Regulation and gives advice on how to comply with them.

BASF BUILDS CHEMICAL CATALYSTS FACILITY IN SHANGHAI, CHINA BASF is further strengthening its

manufacturing footprint in Asia Pacific with a new, world-scale chemical catalysts production facility at the company’s existing site in the Shanghai Chemical Industry Park in Caojing, Shanghai, China.

The plant – BASF’s first process catalysts manufacturing facility in Asia Pacific – will produce base metal catalysts, custom catalysts, and adsorbents to meet growing Chinese and Asian market demand.

These catalysts are used in the production of fatty alcohols, sulfuric acid and butanediol and for the removal of impurities from olefins.

Construction of the new plant begins this month, with the launch of manufacturing activities planned for the fourth quarter of 2016.

“The plant we are building in Caojing will provide a strong regional manufacturing base for our business and greatly improved proximity to our customers in Asia Pacific, which is the fastest growing region for our base metal and custom catalysts solutions. This plant will be highly automated and energy efficient, offering room for additional expansion as well as flexibility to adapt to new customer production requirements in the years to follow,” said DrDetlef Ruff, Senior Vice President, Process Catalysts & Technologies, BASF.

MITSUI, SINOPEC START UP EPT PLANT IN CHINA Mitsui Chemicals Inc and China Petroleum & Chemical Corporation (Sinopec) announced the startup of one of the world’s largest EPT (ethylene-propylenedieneterpolymer) plant for a single train under their joint venture, Shanghai Sinopec Mitsui Elastomers, Co Ltd at Caojing, China.

Commencement of full scale commercial operation of the plant will provide the Chinese market with superior quality, performanceCHEMICAL NEWS JANUARY 2015 z 71

driven functional materials backed by extensive technical services. The joint venture’s EPT plant will stably supply superior quality EPT to meet the growing needs in the Chinese market.

EUROPE FRAMES RULES TO REDUCE PLASTIC BAGS USE The European Commission will also evaluate the impact on the environment of oxo-degradable plastic materials, which fragment into small particles The European Parliament and the Council of the European Union have reached an agreement on the rules to reduce the use of the common and most polluting plastic carrier bags. Following this deal, the environment committee will vote on the proposed rules.

Plastic bags have been blamed for polluting the environment, especially aquatic ecosystems. In 2010 there were 200 bags for everyone who lived in the EU, according to an estimate by the European Parliamentary Research Service.

According to the new rules, member states could either ban free plastic bags for shoppers by 2018 or else ensure that the average consumption of them does not exceed 90 a year per person by 2019.

Under the proposal to be voted

on by the environment committee, member states could choose to either ban free plastic bags for shoppers by 2018 or else take measures to make sure that the average consumption of these bags drops to 90 a year for each person by 2019 and to 40 by 2025.

The European Commission would be required to evaluate the impact on the environment of oxodegradable plastic materials, which fragment into small particles, and propose measures accordingly.

CELANESE INTRODUCES MEDICAL GRADES OF TRIBOLOGICAL POLYMER Celanese Corporation (NYSE: CE), a global technology and specialty materials company, today announced the introduction of Hostaform® MT® SlideX™ POM, a family of tribologically modified, medically compliant engineered materials.

These new thermoplastic polymers enable the production of medical devices with a very low coefficient of friction and wear, low noise (squeaking) and eliminate the need for external lubrication.

Medical devices manufactured with these new materials operate smoothly with a high degree of patient comfort and consistency from the very first use.

Hostaform® MT® SlideX™

LYONDELLBASELL NAMES BHAVESH PATEL AS NEW CEO LyondellBasell has appointed Bhavesh V. “Bob” Patel as Chief Executive Officer, effective January 12, 2015.

Patel succeeds James L. Gallogly, who previously announced his plan to retire.

Prior to this, Patel has served as Executive Vice President, Olefins and Polyolefins (O&P) – Europe, Asia & International and Technology since October 2013. After serving in several positions of increasing responsibility at Chevron Corporation and Chevron Phillips Chemical Company, Patel joined LyondellBasell in March 2010 as senior vice president, O&P – Americas, where he successfully restructured the business to take advantage of the shale gas expansion in the U.S. “After a rigorous selection process, we chose Bob Patel based on his proven leadership, his outstanding track record, and his numerous contributions to the success of LyondellBasell,” said Supervisory Board Chairman Robert G. Gwin.

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POM is a competitive alternative tovarious kinds of highperformance, tribologically modified compounds. When compared to alternative materials, Hostaform® MT® SlideX™ POM offers a significantly lower coefficient of friction in medical devices combined with the Celanese medical technology (MT®) service package.

This results in the potential to reduce costs by removing design constraints and simplifying material combinations in complex devices while avoiding external lubrication in manufacturing processes.

The MT® service package addresses quality, change control and regulatory compliance in accordance with pharmaceutical and medical industry expectations, based on Celanese’s extensive experience with material supply to the medical market.

The advantages to the patient as a result of medical device manufacturers using Celanese’s tribologically modified Hostaform® MT® SlideX™ POM include: z reduction in force required to activate the medical device, z no squeaking noise when operating the medical device, and z increased comfort during use due to easy sliding properties.

“The use of medically compliant polymers from Celanese is helping the medical industry to design and manufacture medical devices which can significantly increase patient comfort by reducing friction and noise,” said Andrew Brown, director of Celanese’s global medical industry platform. “These new materials can improve design and processing capability and increase performance levels of key medical components. The introduction of these new low-tribological polymer grades from Celanese underscores our commitment to medical industry innovation which benefits patients who seek greater comfort and ease of use in their medical devices.”

With a high mechanical

performance profile combined with the Celanese MT® service package, Hostaform® MT® SlideX™ POM is well-suited for medical applications such as COPD (Chronic Obstructive Pulmonary Disease) and asthma inhalers, injection devices such as insulin pens, surgical instruments and portable diagnostic medical devices, where low friction, wear and medical compliance are important requirements.

FLUOR COMMENCES WORK ON EXXONMOBIL’S COKER Fluor has started construction activities on a new delayed coker unit for ExxonMobil at its Antwerp refinery in Belgium, the companies confirmed recently.

Construction on the project, which will expand the refinery’s production capabilities, formally kicked off at a recent groundbreaking ceremony.

Fluor’s responsibilities span the project’s life cycle and include design, engineering, procurement, module fabrication, transportation, installation and construction.

Fluor is responsible for the new delayed coker unit that will convert heavy, higher sulfur residual oils into transportation fuel products such as marine gasoil and diesel fuel.

“Fluor will provide our full suite of engineering, procurement and construction services on this lumpsum refinery expansion project for the European downstream market,” said Taco de Haan, president of Fluor’s energy and chemicals business for the Europe, Africa and the Middle East region.

“We are applying our modular execution and construction innovations in order to deliver schedule and capital efficiencies through an integrated solution to ExxonMobil,” he added.

Engineering and design work for the project began in June 2014 and is being led by Fluor’s office in the Netherlands. Fluor booked the project into backlog for an undisclosed value earlier in 2014.

PLASTICS HALL OF FAME: NINE TO BE INDUCTED The Plastics Hall of Fame will welcome nine new members — eight men and one woman — when they are inducted during NPE 2015.

The new Hall of Famers are a diverse bunch, including the head of a major German injection press manufacturer, a top executive of a Canadian maker of pipe corrugating equipment, a trade association leader, two pioneers in polyolefin material, one man who developed polyethylene for blow molded plastic milk bottles, another man the inventor of the slurry polymerization process, a former president of the Society of Plastics Engineers, a global expert in structural foam molding technology and an academic leader who developed a new way to balance multi-cavity molds.

The Plastics Academy, working with the Society of the Plastics Industry Inc., announced the inductees. The new members are: John Beaumont, Terry Browitt, William Carteaux, Robert DeLong, EugenHehl, Edward Hunerberg, Manfred Lupke, Donald Norwood and Maureen Steinwall.

Steinwall, president and CEO of custom injection molderSteinwall Inc., becomes only the second woman inducted into the Plastics Hall of Fame. The first was Stephanie Kwolek, the inventor of Kevlar, who died June 18.

The nine industry leaders will be inducted into the Plastics Hall of Fame March 22 at a ceremony and dinner which kicks off NPE 2015.

“The Academy is very honored to introduce the Class of 2015, consisting of individuals from the various disciplines within plastics, and also representative of the global growth and development of our industry,” said Jay Gardiner, president of the Plastics Academy.

“We are also looking forward to the new format for the Hall of Fame Induction Ceremonies at NPE 2015.”

The Plastics Hall of Fame

is housed at the University of Massachusetts at Lowell.

THE NEW PLASTICS HALL OF FAMERS: JOHN BEAUMONT is president of Beaumont Technologies Inc. in Erie, Pa., and he was one of three founding faculty members of Penn State Erie’s Plastics Technology program. He was the program chair from 1999 to 2012.

TERENCE J. BROWITT was the 2001 president of SPE, and the second Canadian to hold that title after Ralph Noble back in 1970. Noble was named to the Plastics Hall of Fame at NPE 2009, after he was nominated by Browitt. Browitt has been an SPE member since 1965, and a member of the Canadian Plastics Industry Association since 1996. He served on the CPIA board of directors from 2000 to 2009.

WILLIAM CARTEAUX became president and CEO of the Society of the Plastics Industry Inc., the industry’s biggest trade association and voice of Washington, in 2005. He’s a machinery guy at heart — Carteaux was a top official of international injection press manufacturer Demag Plastics Group, and before that, headed Autojectors Inc., a maker of vertical injection presses.

ROBERT DELONG, a chemical engineer, is described in nomination papers as a major pioneer in blow molded dairy bottles, but someone who was “camouflaged” because most of his employers did not patent or publish technical information for fear of disclosure to competitors. DeLong is vice president of Blasformen Consulting in Kingwood, Texas.

EUGENHEHL worked with his brother, Karl Hehl, to build Arburg GmbH & Co. KG into a CHEMICAL NEWS JANUARY 2015 z 73

major international force in injection molding machinery — all from their humble town of Lossburg in Germany’s Black Forest. EugenHehl was nominated by Tim Womer, a screw designer who runs TM Womer& Associates LLC in Edinburg, Pa., and is a member of the Plastics Hall of Fame.

EDWARD HUNERBERG is the guru of structural foam molding, a leading expert in what is a tiny niche of the plastics industry. Hunerberg’s job as Uniloy Milacron’s vice president of structural foam technology has taken him around the world.

MANFRED LUPKE, president and CEO of Corma Inc., is an expert in equipment for making corrugated plastic pipe. The Canadian Plastics Industry Association named Lupke Leader of the Year in 2007. He received the Queen’s Diamond Jubilee Medal in 2012.

DON NORWOOD made a groundbreaking invention in 1959: The slurry loop reactor, used for the polymerization of ethylene and propylene. It replaced the conventional pot-type reactor vessels. The first commercial polyethylene loop reactor came on stream in Houston in 1961. From 1970 through 1986, Norwood was supervisor of Phillips PE and PP pilot plants. He worked as a full-time consultant for the company until 1996.

MAUREEN STEINWALL, president and CEO of Steinwall Inc., is one of the small group of women who own plastics companies. She has become a well-known advocate for employee training and motivation, devoting years of work, and education, into the subject. She currently serves on the boards of SPI, two companies and one hospital foundation.

74 z CHEMICAL NEWS JANUARY 2015

Steinwall Inc. won the Plastics News Processor of the Year Award in 2012.

WORLD’S PLASTICS ASSOCIATIONS PROMOTE SUSTAINABILITY AND RESOURCE RECOVERY, AND RENEW COMMITMENTS TO MARINE LITTER SOLUTIONS “World’s Plastics Associations Renew Commitments to Improve Sustainability” At the 25th annual Global Meeting on Plastics and Sustainability, held in Manila, Philippines (Dec. 8 – 10), executives from the world’s leading plastics associations met to discuss and advance sustainability, and to promote solutions to plastic waste management and marine debris. At the meeting, delegates noted strong progress and growth in activities undertaken as part of the Declaration of the Global Plastics Associations for Solutions on Marine Litter. Under that program, 60 associations from more than 30 countries have launched 185 separate projects to combat plastic marine debris.

At the meeting, participants also discussed strategies to address sustainability by improving the collection, recycling and recovery of energy from used plastics. Delegates heard from Doug Woodring of the NGO Ocean Recovery Alliance, who challenged the industry to work with other stakeholders and to deploy new technologies to better understand where litter is entering our rivers and waterways.

In addition to leading Philippine companies, meeting participants included plastics associations from the Philippines, Malaysia, Thailand, Japan, Brazil, the Gulf, Europe, South Africa, and the United States, who analyzed current projects to prevent litter and increase recycling of plastic.

“Improving plastic recovery so that all plastics are collected and used as a valuable resource for recycling and energy production is the most

important step to prevent marine litter in the future,” said Crispian Lao from the Philippine Plastic Industry Association, who also serves as the vice chairman and private sector representative for the recycling industry to the National Solid Waste Management Commission. He called on other industry colleagues from around the world to join in efforts to promote integrated waste management strategies that increase public awareness and provide solutions for the benefit of society and ecosystems.

“We all have a role to play, and by working together we can create a more sustainable future,” added Callum Chen, speaking on behalf of the Asia Plastics Forum.

Delegates also emphasized the need for engagement from leaders of other business sectors. “We believe that strategic partnerships with intergovernmental organizations, NGOs and marine researchers offer a good opportunity for real progress, particularly on resource recovery,” said Karl Foerster, executive director of PlasticsEurope. “Our industry has proven that it is determined to actively contribute to prevent marine litter, and we now need the involvement of others to take our actions to the next level.”

Steve Russell, vice president of plastics for the American Chemistry Council, said, “Advances in recycling and in technologies such as energy recovery, have exciting potential to improve the management of used plastics, and we look forward to closer cooperation with our colleagues in Asia and throughout the world to develop locally relevant and sustainable approaches to recycle and recover the energy from used plastics.” z

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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 JANUARY 2015 z 75

QUOTABLE & LAUGHABLE

“It is a challenge definitely and I know that it is a long battle to fight, but slavery is unacceptable, it is a crime against humanity. I’m not talking in legal terms, morally I feel I cannot tolerate the loss of freedom of any single child in my own country so I am a kind of restless person in that sense. We cannot accept this to happen….India has hundreds of problems and millions of solutions,” - Kailash Satyarthi.

“Nobel award is for all the voiceless children” - Malal Yousufzai.

“An eye for an eye will leave the whole world blind.” - Mohandas Karamchand Gandhi.

“We certainly know the facts about heaven, but it to keep the heart pleased, Ghalib! It’s a good idea after all.” - Mirza Ghalib.

76 z CHEMICAL NEWS JANUARY 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 JANUARY 2015 z 77

 R.N.I. REGN. NO. MAHENG/2004/13760  POSTAL REGN. NO. MCS/083/2015-17  PUBLISHED ON 28/29 DAY OF EVERY PREVIOUS MONTH.  POSTED AT PATRIKA CHANNEL SORTING OFFICE, MUMBAI GPO, MUMBAI-400001 ON 28/29 DAY OF EVERY PREVIOUS MONTH.

Let us grow together

RCF is the leading manufacturer of Fertilizers, Industrial Chemicals & also in trading.

Total turnover of the company is around ` 7000 Crores. Industrial Products Division accounts for more than ` 1000 Crore of the turnover.

We produce high Quality Industrial Chemicals METHANOL

MONOMETHYLAMINE

DIMETHYLAMINE

TRIMETHYLAMINE

NITRIC ACID

SODIUM

NITRATE / NITRITE

ANHYDROUS

AMMONIUM BICARBONATE

AMMONIA

AMMONIUM

NITRATE MELT

AMMONIUM

BICARBONATE

LIQUID

ARGON & LIQUID NITROGEN

FORMIC

ACID & METHYLFORMATE

DIMETHYL

FORMAMIDE (DMF)

DIMETHYLACETAMIDE

CALCIUM

(DMAC)

CARBONATE & GYPSUM

Our products are widely accepted in the domestic and international market. 'Competitiveness, quality, reliability and customer care' are the foremost objectives of our business.

Industries served: mining, pesticides, rayon, rubber, synthetic fibres, bakery, pharmaceuticals, textiles, paints, plastics, explosives, poultry, agriculture, tanneries, glass, construction, defence and many more...

(A Government of India Undertaking) CIN L24110MH1978GOI020185 Priyadarshini, Eastern Express Highway, Sion, Mumbai 400 022 Tel.: 0091-22-2552 3010, 2401 2150 Fax: 022-2404 5126

Email: ed_ipd@rcfltd.com Website: www.rcfltd.com 78 z CHEMICAL NEWS JANUARY 2015