RAJYA SABHA
Shri S.S. Dhindsa
Union Minister for Chemicals and Fertilizers have underlined the
need for specialized industrial estates dedicated to Chemical
industries where all facilities required for the growth of chemical
industries are available. He said considering the future global
economic scenario such estates have been established in many countries
such as Singapore, Thailand, Saudi Arabia and China. In India,
at present, chemical industrial units are spread all over the
country with each unit having to create the required facilities
themselves. It was pointed out that if related industries were
set up in close proximity in an industrial estate it would be
possible to achieve vertical integration resulting in a saving
on the transfer cost of feedstock and finished goods. This, coupled
with lower investment on infrastructure as a result of sharing,
would substantially enhance the cost competitiveness of Indian
products in the world market.
Addressing the Meeting
of the Consultative Committee of Members of Parliament attached
to the Ministry of Chemical and Fertilizers here today Shri Dhindsa
said that the Indian industry faces a number of constraints including
high cost of capital, expensive and unreliable power supply, inadequate
material handling facilities at the ports and high cost of feedstock/fuel
on account of adverse location. Besides, the cost of utilities
including power, water steam etc. which constitutes anywhere between
15 per cent and 50 per cent of the cost of production in the Chemicals
Sector, is much higher in India compared to china, South Korea,
Japan, Singapore and other similar countries both developed and
developing. Developing mega chemical industrial estates with modern
integrated infrastructural facilities in the country would impart
positive impulses for boosting production and export earnings
of this sector.
Members were informed
that the task force on chemical industry under the Chairmanship
of Dr. A.S. Ganguly, Chairman, ICI (India) Limited finalised and
presented its reports to the Government in March 2002. The Task
Force, in its report, has suggested measures to limit the adverse
impact of the handicaps faced by the Industry which includes development
of "Chemical industry Parks" to synergize value chains and to
reduce costs of common facilities; cross subsidies on cost of
Electricity be removed; industries be allowed to sell cogenerated
power to neighbouring units; improve the infrastructure in Ports
and surface transport and develop Ports especially in Maharashtra
and Gujarat for handling and storage of bulk parcel cargo from
super tankers. The task force also concluded that Indian Manufacturers
were suffering on account of high manufacturing cost in comparison
with global players primarily due to high cost of raw material,
utilities and capital besides inadequate infrastructure facilities
(road, rail and ports) and high power and utility costs.
The Consultative
Committee Members were informed that an inter-ministerial working
Group was set up under the Chairmanship of Joint Secretary, Department
of Chemicals and Petrochemicals to study this issue in depth.
The Working Group has made a number of recommendations including
the following:-
- Ministry of Environment &
Forests (MOEF) be requested to develop a standard and single
application format for environment clearance for use throughout
the country.
- MOEF be requested to provide
subsidy for setting up various environmental projects as common
facilities for the industry.
- The industry should be permitted
to sell surplus power to other units without the requirement
of wheeling it through the State Electricity Board networks.
- Sale of surplus utilities like
steam and other industrial gases to other industrial units
be permitted.
- Petroleum products used as fuel
and for power generation be made available to the industry
at international prices.
- Major contiguous ports be linked
through pipeline for facilitating transportation of liquid
chemical products.
- Streamlining of customs procedures
at ports and air cargo terminals.
The Committee was
informed that these recommendations are being taken up with the
concerned Department/Agencies to bring about the desired changes.
Those who attended
the Meeting were Shri Ashok Kumar Singh Chandel, Shri A.C. Jose,
Shri Y.S. Vivekananda Reddy (Lok Sabha), Shri Mehendra Prasad
and Shri Manoj Bhattacharya (Rajya Sabha).
