|
MAJOR DECISIONS AND INITIATIVES
CHEMICALS AND PETROCHEMICALS
The UPA Government completes one year on May 21, 2005. During this period, the Government has taken several important initiatives. Some of these are being brought out in the series ‘Major Decisions and Initiatives’.
Rehabilitation Package for HAL
The draft Rehabilitation Scheme prepared for the rehabilitation of Hindustan Antibiotics Ltd. (HAL) was examined and a draft note for the Cabinet prepared. Board for Reconstruction of Public Sector Enterprises (BRPSE) considered the proposal on April 18, 2005. The proposal will again be considered in the month of May 2005. The IDBI, the Operating Agency, has found the scheme, in general, satisfactory.
Report of Expert Committee on IDPL
The Government set up an Expert Committee in the month of August 2004 to conduct a techno-financial feasibility of rehabilitating Indian Drug and Pharmaceutical Limited (IDPL). The final report of the Expert Committee was received on April 20, 2005. The main recommendations of the Expert Committee are being examined.
Rehabilitation Package for HOCL
The net worth of Hindustan Organic Chemicals Limited (HOCL) has completely eroded as on March 31, 2004 and it stands referred to the Board for Industrial and Financial Reconstruction (BIFR). SBI Capital Ltd has prepared a rehabilitation proposal for the Company, which has been considered in the Department and has been forwarded to BRPSE.
Rehabilitation Proposal for HIL
On erosion of its total net worth as on March 31, 2003, Hindustan Insecticides Limited (HIL) has been referred to BIFR in accordance with the provision of Sick Industrial Companies (Special Provision) Act, 1985. In the meanwhile, the Company has prepared and submitted a rehabilitation proposal, which is being considered before it is forwarded for consideration by BRPSE.
Important Developments Relating to CWC
The Standing Committee of National Authority for Chemical Weapons Convention (CWC) met on March 30, 2005 under the Chairmanship of the Cabinet Secretary. It was decided by the steering Committee to bring the CWC Act 2000 into force with effect from July 1, 2005. The rules and notifications as required for facilitating the implementation of the Act have been sent to the Ministry of Law for vetting and will be notified before July 1, 2005. The Annual Declaration of Past Activities (ADPA) 2004 as required under the CWC was finalised and sent to the National Authority.
Petrochemical Policy
The National Policy on Petrochemicals was declared a thrust area in February 2005. A draft national Policy was prepared and finalized internally. The draft policy is being further discussed and fine-tuned.
CIPET
Three new centres of the Central Institute of Plastic Engineering and Technology (CIPET) in the States of Haryana, Maharashtra and Rajasthan are to be set up at a cost of Rs.23.76 crore each on equal cost sharing basis between the Central and the State Governments. CIPET is preparing to start long-term training programmes from August 2005 at these centres.
OPEC Loan for CIPET
OPEC loan agreement worth $.12.30 million to Central Institute of Plastic Engineering & Technology for capacity building has been finalised with the assistance of Department of Legal Affairs and Department of Economic Affairs. The matter is being followed up for expeditious signing of the agreement.
Competitiveness of the Sector
The first sub-group meeting of the National Manufacturing Competitiveness Council (NMCC) on Chemicals and Petrochemicals was held on April 29, 2005 to address the key concerns of the chemicals and petrochemicals sectors and facilitate their growth. Besides industry representatives, officers from Government also participated in this meeting, wherein the Department made a presentation on the key issues and the role of the Government in facilitating competitiveness of these sectors. It was decided that a follow-up meeting would be held after three months.
Price Control On Life Saving Drugs
A Committee under the Chairmanship of Joint Secretary (PI) was constituted to examine the span of price control, including trade margin in the light of the National Common Minimum Programme (NCMP) and the observations of the Supreme Court in SLP N0 (C) 3668/2003 and to suggest measures for fulfilling the objective of NCMP to ensure the availability of life saving drugs at reasonable prices. This Committee has submitted its interim report to the Government. Follow up action has been initiated on the recommendations that the Committee made in its interim report.
Task Force on Pharmaceuticals
A Task Force has been constituted under the Chairmanship of Dr. Pronab Sen, Principal Advisor (PP), Planning Commission to explore various options other than price control for achieving the objective of making available life saving drugs at reasonable prices. The Task Force is likely to furnish its report by 30th June 2005.
NIPER
The National Institute of Pharmaceutical Education and Research (NIPER) is the first national level institute in pharmaceutical sciences. It has been declared as an ‘Institute of National importance’. A proposal is under discussion for setting up another state-of-the-art pharmaceutical educational institution for the North East.
Assam Gas Cracker Project
The Assam Gas Cracker Project with a capacity of 2.20 lakh tones per annum of Ethylene is to be set up by Gas Authority of India Limited (GAIL) as a joint venture with the Government of Assam. It has now been decided that GAIL would implement the project. This was considered in the meeting of the Public Investment Board (PIB) held on April 15, 2005. The next meeting of PIB is likely to be held in the early part of May 2005.
India-Tunisia Working Group
The 2nd meeting of the India-Tunisia Joint Working Group on Drugs and Pharmaceuticals was held during April 5-8, 2005 in Tunisia. A Buyer-Seller meet was also organized on April 6, 2005. The issues discussed include:
1. Supply opportunities and tie ups in case of Active pharmaceutical Ingredients (APIs) and formulations between Tunisian and Indian companies.
2. Registration of Indian medicines.
3. Technology cooperation between Tunisian and Indian Pharma companies.
4. Cooperation in manufacturing through Joint Ventures.
5. Cooperation in the field of Human Resource development and training.
6. Cooperation in using testing facilities at NIPER.
7. Cooperation in the field of Biotechnology.
8. Participation in the Trade Fairs and Exhibitions.
9. MoU between Pharmexcil and National Chamber of Drug Industries of Tunisia.
Status on “TERI Study”
A study was conducted by Tata Energy Research Institute (TERI) regarding impact of high cost and absence of quality power on the chemical industry through interaction with various industries, Industry Associations as well as Ministries/ Departments. The Department accepted the recommendations of the TERI report in November 2004. Efforts are being made to implement all the recommendations by March 31, 2006.
Issues Relating To The Bhopal Gas Tragedy
Disbursement of pro-rata compensation
In accordance with the directions of the Supreme Court, the unspent compensation amount after the settlement of all original claim cases (approximately Rs.1500 crore) was to be disbursed by the Welfare Commissioner on a pro-rata-basis. As on April 16, 2005, an amount of Rs.445.44 crore has been disbursed to 1,52,792 claimants. On a request from the office of the Welfare Commissioner, the Supreme Court has extended the time limit for completion of disbursement of compensation by one year, i.e., upto April 30, 2006.
Removal of toxic wastes
The issues concerning the removal of toxic wastes from the site of the Union Carbide plant in Bhopal have been engaging the attention of Department and that of the Government of Madhya Pradesh. The matter was discussed and the following decisions were taken:
a) The State Government will execute the project of removal of toxic wastes through the MP Pollution Control Board.
b) The State Government would send the detailed project report in Expenditure Finance Committee (EFC) format to the Department, which will get it vetted from the Engineers India Limited (EIL). The role of EIL will be confined to vetting of the detailed project report.
c) The State Government would submit the vetted project report to the Planning Commission.
The issue of removal of toxic wastes is also the subject matter of a Writ Petition (No.2802/2004) in the High Court of Madhya Pradesh where the Department of Chemicals & Petrochemicals is one of the respondents. The Court is being informed of the actions being taken in this regard.
Mega Integrated Industrial Estate
The Chemical and Petrochemical industry occupies an important place in India’s economy constituting around 14 per cent of India’s industrial production. In an interactive session that the Minister (C&F) had with the captains of the Indian chemical industry, the need for setting up such Mega Chemical Industrial Estates was brought out. The production and export earnings of this sector would receive a quantum jump if an industrial estate dedicated to the chemical industry could be set up.
Action has been initiated for preparing a feasibility report on setting up such a mega chemical industrial estates. This task has been entrusted to M/s Mott MacDonald, renowned international consultants. The study has already commenced. As part of the study, the Consultants have since submitted the Concept Paper, the Inception Report and the Market Study Report and the Location Study Report. At present, presentations by various State Governments in the matter are underway. The findings of the study will be brought to the notice of the Industry and the State Governments for follow up action. This is expected to facilitate the growth of the Indian chemical industry.
India CHEM 2004
India CHEM 2004, an international conference and exhibition to showcase the strengths of Indian industry was held at Mumbai during November 3-5, 2004. The highlights of India-CHEM 2004 were:-
(a) Overall 255 companies participated at the event, including 102 from overseas;
(b) Visitors from over 50 countries attended the show, and 11 exhibitors came from USA, UK, China, Germany, Iran, Switzerland, Belgium, France, South Africa and Taiwan;
(c) Japan was the partner country and 32 Japanese companies participated at the event. Germany was the guest country and 20 German companies participated in the German Pavilion.
(d) Buyer delegations came from UK, Germany, Japan, Taiwan and China.
(e) Buyer-Seller Meets were organised by Chemexcil and PPMAI. About 41 overseas buyers attended these meetings.
(f) The Buyer-Seller Meet organised by Chemexcil focused on Latin American, African and ASEAN countries. Foreign delegates from Argentina, Uganda, Malaysia, Brazil, Sudan, Philippines, Colombia, South Africa and Indonesia participated in the Buyer-Seller Meet. Foreign journalists from Philippines, South Africa, Sudan and Uganda also participated. There were 114 Indian participants in this meet.
(g) Business-generated-on-spot is worth Rs.250 crore. Anticipated orders would be much higher.
The next India Chem event will be held in November 2006 at Mumbai.
RK:LV
PIB SF-23 (12.05.2005)
|
