INDIAN CHEMICAL INDUSTRIES NEED ALTERNATIVE MODEL OF GROWTH

It is now well recognised that the progress of chemical industry in India have not been significant in real terms during the last few years, ever since the concept of globalisation was introduced.

The liberalisation of imports and the international players having unhindered market in India have created conditions, where several indigenous units, particularly in small and medium scale sector, found that they could not be competitive even in the Indian market. Large numbers of chemical projects have become sick and closed due to such reasons. Further many units have been forced to close down due to environmental regulations

Unfortunately, systematic and nation wide study on such closed units, from the view point of technology, imports and productivity level, are yet to be made.

At present, the major expansion activity taking place in the country in chemical sector is largely in the field of petroleum refinery sector, where a number of refineries are embarking on expansion and modernisation programmes.There have been activities in gas and oil exploration, pipelines for transportation of gas, building of LNG terminal etc. Most of such activities are really in the nature of infrastructure development and modernisation activities and not relating to setting up of basic manufacturing capacities.

Such situation should be a cause for concern, as the country appears to be losing the advantage that it has gained over several years, by setting up a large number of small and medium level chemical projects based on indigenous technology.

Under the circumstances, there appear to be an urgent need for alternative model of growth for Indian chemical industry in tune with WTO and ecological trends.

The country need to focus on investment areas, where it has strength based on tropical and climatic conditions and deposits of ore and mineral. It should stop forthwith the practice of blindly copying the pattern of growth of the developed western countries, which have often landed the Indian units in trouble in the past

There have been a lot of hype about the growth of the bio technology sector, which are still in the preliminary stage in the country and are yet to prove themselves to be globally competitive.

The Government of India and the Planning Commission has a duty to lay down right guidelines and appropriate direction of growth for the chemical industry and allied sector. This can be done only by initiating nation wide debate on the subject and evolving some sort of consensus opinion about moving further ahead.

The recent experiences clearly indicate that India has special capability in the service sector which are skill oriented and not so much of investment oriented. However, mere focusing on service sector nearly exclusively would undermine the strength and basic foundation of the chemical industry in the long run. Strengthening of the manufacturing sector is necessary condition for growth and service sector by itself cannot fill the gap.

No doubt, number of initiatives have been taken in recent time at national level in identifying appropriate growth areas such as thrust given to the herbal sector, the national focus on biodiesel and of course biotechnology sector etc.

In all such areas, while there have been a lot of talk and discussions and claims, the ground reality with regard to the growth and progress is not adequate in real term, which anyone can understand on careful scrutiny of facts and figures. In such areas, there is need for careful acquisition of technology from abroad and co-operation with the international players selectively, even as the Indian units exploit the strength that the country already possesses.

Clarity in ideas and prompt actions are very important.

In the present time of global competitiveness, every player in the chemical industry has to keep himself adequately uniformed at least in their areas of activities. Without such knowledge level built and maintained, it would not be possible to work out strategies for action.

The unfortunate fact is that reading habit and knowledge level amongst chemical entrepreneurs and executives in India need considerable improvement. The Indian chemical industry has to address this problem with urgency that it deserves.

Demand for natural gas emerges mainly from the power (around 38 percent) and fertiliser (around 25 percent) sectors.

Transportation and other industries account for another 29 percent.

In India , natural gas allocations are made by the Ministry of Petroleum and Natural Gas, on the recommendation of the Gas Linkage Committee. In 2003-04, gross gas allocations stood at 119 mmscmd. These allocations are based on inter-sectoral priorities.

This article also discusses the following details :

Orissa with 3.3 billion tonnes of iron ore reserve offers scope for setting up a number of steel projects.

The state has already signed memorandum of understanding (MoU) with seven companies, which will put up atleast 10 million tonnes of steel capacities. These companies will be allotted iron ore mines to meet their iron ore requirements.

The companies include Arthi Steel, Neepaz Metals, Scaw Metalics, Deo Mining, Visa Industries, SMC and Shyam DRI. Atleast half a million tonne of steel manufacturing capacity is expected to be completed by the end of the current fiscal. The total investment by these companies will be at least Rs.2,500 crore in phase one.

The state has become an attractive destination for steel makers as they are looking for iron reserve to feed their plants outside the state.

Orissa, however formulated a policy that its mineral resources can be exploited only if the value addition is carried out within the state. The major mining belts that the manufacturers are eyeing include Gandhamardhan and Malontali Barbil.

The state is now close to signing MoUs with Maharashtra Seamless, SPS Sponge Iron, Sunflag Industries, Orissa Sponge Iron and Jindal Stainless Ltd for setting up steel plants in the state. The total investment by these companies in the first phase will be around Rs.5000 crore.

GAIL ( India ) has tied up with Sumitomo Chemicals of Japan to produce insecticidal mosquito nets on a pilot basis in Tamil Nadu.

GAIL may consider commercialisation of the project depending upon the success of the project.

Evaluated by the World Health Organisation (WHO), GAIL has taken up the project as part of its corporate social responsibility programme. The WHO has already declared India and Africa as being among the worst malaria-affected regions.

GAIL will manufacture mosquito nets using insecticide treated HDPE granules produced by Sumitomo. The latter is considered to be a world leader in developing and manufacturing insecticide treated bed nets having a life span of five to seven years.

Sumitomo has already delivered insecticide incorporated HDPE granules to GAIL. The later in turn has already identified two net manufacturers at Karur in TamilNadu, where mosquito nets are produced in large numbers.

The project will be monitored and evaluated by the WHO.

Sumitomo is already in the process of getting the pesticide registered with the regulatory.

ARTEMISININ - ANTI MALARIAL DRUG FROM HERB

Following details are described in this article :

ANTI-MALARIAL DRUG IN HUMAN CLINICAL TRIAL STAGE

Ranbaxy Laboratories Limited (Ranbaxy) and Medicines for Malaria Venture (MMV) have taken a potential breakthrough anti malarial drug into human clinical trial stage. Ranbaxy, MMV's pharmaceutical partner for the development of this drug, has obtained authorisation from Medicines and Healthcare Products Regulatory Agency (MHPRA) to conduct clinical trials in the United Kingdom (UK).

This is the first regulatory step in new drug development after safety and drug activity is established in the pre-clinical phase.

The drug code named OZ277/RBx11160, is currently being evaluated in a Phase I study for its safety, tolerability and pharmacokinetics (PK)in humans in the UK . A synthetic peroxide, the drug is believed to have similar mode of action as the most effective anti malarial drug currently available Artemisinin,a herbal remedy based on he Artemisia annua plant.

However, because of the costly and lengthy extraction process from the plant, Artemisinins are at least ten times more expensive than the cheap standard anti malarials.

Although Artemisinin based combination therapies (ACTs) are currently the best cure for drug resistant malaria, access to ACTs, in disease endemic countries has been limited due to their cost. An effective synthetic drug would be superior to the current ACTs as it will not be dependent on the artemisia plant and will likely be much cheaper to manufacture.

POWER FROM VEGETABLE WASTE

This article deals with the production process of electricity from biodegradable solid vegetable waste by means of biomethanation technique.

Power units with vegetable waste as fuel are being successfully operated in several developed countries.

A biomethanation plant is under installation in Koyambedu near Chennai , India to produce 15 MW power with vegetable wastes as raw material.

MORINGA-EXCITING PROSPECTS

Moringa is a tough tree that survives in poor soils and uses its deep tap root to survive long periods of drought. It is easy to propagate from seeds and cuttings. It grows rapidly to six meters in height and can flower and fruit in one year.

In recent times, considerable efforts have been launched in Africa to promote the cultivation of Moringa and develop its application. India appears to be lagging behind the international efforts in this regard.

The successful development of value addition to Moringa would enable expansion of the area of Moringa cultivation significantly in India , which would provide considerable boost to agricultural sector., particularly in today's water scarce conditions in several parts of the country, since Moringa can withstand drought conditions.

STROBILURIN -EMERGING FUNGICIDE

One of the more exciting advances in disease control in agriculture during the last decade has been the discovery, development and marketing of strobilurin fungicides.

Chemically, the strobilurins are a unique class of fungicidal compounds derived from or related to oudemansin or strobilurin A, These compounds inhibit other fungi that could compete for nutrients in the rotting plant material.

The original compound Strobilurin A. was isolated from a fungus called Strobiluris tenacellus, which was found on decaying wood in a European forest .

There are three active ingredients in the Strobilurin fungicide type - kresoxim-methyl and, more recently, azoxystrobin and trifloxystrobin.

Several companies have developed synthetic strobilurin products.

More details are provided in the article.

NEOPENTYL GLYCOL – PRODUCT PROFILE

In this article, following aspects are discussed:

Process Flow – Polyethylene