Highlights of Some of the Articles from the Print Edition

In this issue..

Overall growth and performance of chemical industries in the country can be sustained at progressive level only if stable conditions with regard to the availability and price of raw materials and utilities would be maintained over a period of time For this to happen, it is necessary that the Government of India and State Governments should have long term policies and procedures that would not be tampered with at short intervals. It is true that the market dynamics would influence not only the position of the industry but also that of the government, often forcing the government to make changes from time to time. However, it is absolutely necessary for the government to ensure that such changes would be minimum and would not be drastic that would upset the balance. In the recent past, the Government Import and Export policies and pricing policies particularly for the petroleum products and subsidy elements for fertilisers have been considerably modified, often without adequate warning and explanation. It is also seen that the government often adopts different yard sticks between its approach to public sector units and the private sector units in fixing the price of essential basic inputs such as crude oil, LPG and Natural Gas. The recent recommendation of the Group of Ministers proposing the increase of Natural Gas prices by Rs.350 per thousand cubic metres (tcm), if accepted, would enrich ONGC by Rs.20000 million annually at the cost of consumers. In an environment where supply is regulated through a monopoly, passing off such price hikes to the consumers in the name of providing a "market driven" price mechanism makes a mockery of the issue. The government's initiative in attracting investment in gas based fertiliser, power and steel sectors on the promise of assured supply at affordable prices is well known. It was in response to this policy that the steel industry pumped in over Rs.150000 million in new gas based plants and in the conversion of coal based ones to gas based ones. Due to the policy of encouraging industrial use of Natural Gas, the fertiliser, power and steel industries today account for more than 85% of total Natural Gas consumption in India. The attempt of the Government linking the price of indigenous Natural Gas with the basket of imported fuels is not correct, since global oil prices are only dictated by the whims of OPEC. The proposed hike of Rs.350 per tcm for Natural Gas will take the current price from Rs.2,850 to Rs.3,200 per tcm. For the power industry, which consumes 40% of total available Natural Gas, this will translate into an additional annual burden of Rs.5500 million for consuming industries. For the steel industry, this will increase production costs by Rs.210 per tonne, while farmers who buy fertilisers from gas based units will have to pay an additional Rs.4500 million each year. To save the farmers from this additional burden, the government will have to spend at about Rs.3500 million as fresh farm subsidies. For the industry, this rise would have destabilising effect. The surprising aspect of this proposed price rise is that price increase is supposed to compensate ONGC for procuring gas from private gas producers at prices ranging between Rs.3850 and Rs.5600 per tcm, while its own gas costs about Rs.1850 per tcm. If one were to carefully assess the performance pattern of several industries in India, it would become clear that performance have improved or deteriorated largely due to government policies with regard to taxes and duties as well as the incentives and price fixation norms. In recent times, number of large public sector fertiliser units have been forced to close down under the pretext that the units are not competitive in the global context. Careful analysis would show that the units have suffered only due to government's inability to offer necessary protection to the Indian units in the wake of international developments. Even in the case of several developed countries and USA, it is normal for the governments to protect the indigenous industries against global competition. In the case of several fertiliser units, the problem have not been one of technology alone but also of the changing pricing behaviour of the product which is often beyond control of the units. A pragmatic outlook from the government has become the imperative necessity to protect Indian industries. The government cannot be indifferent to the scenario in the name of market forces.

Indian human hair is available in the colours of black and dark brown, grey, white and brown. This can be described as straight, curly, wavy and silky. Human hair waste collection by itself is a lucrative business. At present, there are over 100 players in the Indian market. US, UK, Indonesia and Malaysia are the major buyers of hair from India The article on Human Hair discusses the following aspects:

• Varieties and price
• Availability and collection
• Synthetic hair
• Domestic demand trends
• Hair sale from Tirupati
• Export
• Emerging Applications of Human Hair-Potential Suturing material
• Sample of Export of Human Hair during the year 2003 at Chennai port

Cystine is a crystalline, sulphur containing amino acid. Hair and skin are made up of 10% to 14% cystine. Natural cysteine and cystine have been manufactured by hydrolysis and isolation from keratin protein available in hair and feathers. Cystine is particularly abundant in skeletal and connective tissues, hair and digestive enzymes. This article discusses the process technology as well as the Indian demand supply scenario for Cystine.It also provides the Indian import/export details.

Full-scale commercial production of PET solid state resins did not begin until 1976. Early in 1974, Pepsi-Cola and DuPont introduced the first biaxially oriented PET bottle, giving DuPont a perspective on the market from its earliest days. Since then, PET has experienced very strong growth, averaging nearly 14 percent annually in the 1980s, and about 12 percent through the 1990s. DuPont projects a continuing strong market outlook for PET, with annual growth in excess of 10 percent for the foreseeable future. PET producers consider economy of scale and the incorporation of leading edge technology as the most likely strategies to improve their market position.

Stevia is a totally natural sweetener with no calories, suited for people who cannot tolerate sugar. Stevia is also useful for people who are conscious about calories in their food. Stevia is the safest natural sweetener and it can substitute cane sugar in various preparations and formulations. It has been used to treat many ailments including diabetes, high blood pressure,digestive disorders, addictions and several skin defects. The article discusses about Stevia as an investment opportunity.

SALICORNIA, OIL YIELDING PLANT

Salicornia, is a succulent, bushy plant found in the salty terrains near the coast. It holds a lot of promise as an ideal edible oil yielding crop, which can be raised using seawater. An improved variety of Salicornia developed by crossing with other highly drought resistant and salt resistant species of Salicornia is being grown extensively in several parts of the world, including India. This article discusses the various aspects of Salicornia.

SPOTLIGHT ON SPECIALITY CHEMICALS

ANTIMONY TRIXOIDE

This article discusses the application aspects and process technology as well as Indian import/export trends for Antimony Trioxide.

HEXA FLUORO ISOPROPANOL-PROFILE

Hexafluoroisopropanol (HFIP) is a water-white liquid used as a speciality solvent and chemical intermediate.

PROCESS FLOW-POLYETHYLENE TEREPHTHALATE

Full-scale commercial production of PET solid state resins did not begin until 1976. Early in 1974, Pepsi-Cola and DuPont introduced the first biaxially oriented PET bottle, giving DuPont a perspective on the market from its earliest days. Since then, PET has experienced very strong growth, averaging nearly 14 percent annually in the 1980s, and about 12 percent through the 1990s. DuPont projects a continuing strong market outlook for PET, with annual growth in excess of 10 percent for the foreseeable future. PET producers consider economy of scale and the incorporation of leading edge technology as the most likely strategies to improve their market position.

ETHYL ALCOHOL AS AN IC ENGINE FUEL
Contributed by Mr.K.Govindarajan, Petchem (E) Consultants, Chennai

For IC Engines, Ethanol has the greatest promise as substitute for petroleum fuels among the alternatives available, at least until the time cheap manufacture and effective usage of Hydrogen become possible. They are liquids at normal temperatures, can be manufactured from abundantly available raw materials and have desirable properties of engine fuels. The chief handicap at present is their relatively high cost of production. Storage, transportation and handling without water is another important criterion. An integrated approach of sugar industry as a power and alcohol producer is bound to reduce the production costs.

DRUG MOLECULE IN TOBACCO WASTE EXTRACT

Technology has been developed at the Indian Institute of Chemical Technology (IICT), Hyderabad, India to manufacture nutraceuticals from tobacco wastes. As part of commercialisation of this technology, IICT has signed an agreement with Bangalore based Sami Laboratories Pvt.Ltd.

APPLICATION OF REVERSE OSMOSIS IN TEXTILE DYE EFFLUENT TREATMENT
Contributed by : Mr.V.Rajeswara Rao,Chief Executive, Water & Chemical Technolgies,. Chennai, India.

ANTI DUMPING PAGE

Discusses the anti dumping measures on the following products initiated by several countries including India in the last one month.

• PVC Resin
• Floatglass
• Iron and Steel
• Chinese silk
• Catechol
• Manganese Dioxide

UPDATE ON NANO TECHNOLOGY

• Nanoscale iron could help cleanse environment
• Nanofossils may be digested organic matter
• Seashells set trend for complex nanomaterials
• Nanofiltration to treat textile dye effluents

DRUG TRIALS IN INDIA

Even as pharmaceutical companies such as the Pfizers, Lillys and Novartis' wait in the wings to benefit from the gradually evolving environment for clinical trials in India, there still prevails an underlying apprehension on whether the country is ready to take on this challenge of drug trials sponsored by pharma companies or Government agencies.

SCOPE FOR CLINICAL RESEARCH OUTSOURCING

The potential that India offers for taking up outsourced clinical trial research by a string of global pharma companies was highlighted at the 37th annual general meeting of the Organisation of Pharmaceutical Producers of India (OPPI). Setting the tone for the discussion OPPI President, said that a number of global companies have commenced out sourcing clinical trial research in India and many more are likely to follow suit.

OTHER FEATURES

• Government Notification page
• Certification Issues
• Safety Data - Vinegar
• Safety and Accident Page
• Herbal Page
• News Round Up - India & International
• Technology Development - India & International
• Agro Chemical Page - India
• Pesticide News
• Pharma Page-India & International
• Environmental Page -India & International
• Energy Page
• Price Details -India & International
• Tender Figures at a Glance
• Ask for the Chemical Facts
• Free Directory Of Chemical Industries In China-Manufacturers, Trading Houses And Promotional Organisations - Part IX
• Nandini Internet Index
• List Of Foreign Direct Investment/Collaboration Proposals Approved By Government Of India During The Month Of May 2003
• International Maritime Dangerous Goods Code - Part XII
• Export of Chemicals at Chennai Port from 1.6.2003 to 30.6.2003
• Import of Chemicals at Chennai Port from 1.6.2003 to 30.6.2003

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