Alkali BulletinAlkali Bulletin(For Restricted Circulation) August 2019Volume XLI No. 08

Dear Reader,

The Department of Chemicals & Petrochemicals (DCPC) constituted an Advisory Forum for Chemicals & Petrochemicals Sector to attract investments to meet domestic demand and boost exports under “Make in India”. The Advisory Forum is headed by the Union Minister for Chemicals & Fertilizers as Chairman, the Minister of State as Vice Chairman and the Joint Secretary (Chemicals) as Member Secretary. Representatives of various State Governments and Central Ministries, various Chambers and Trade bodies, including AMAI are members of this Forum. The first meeting of the Forum was held end-August where specific issues of concern were highlighted by the respective industry bodies.

The Indian chemical industry which is estimated at USD 167 billion in 2017-18 is expected to reach USD 304 billion by 2025 with a projected CAGR of 9.3%. Net Imports of chemicals and petrochemicals (i.e. imports minus exports) have gone up from Rs.1,000 crores in 2004-05 to Rs.1.21 lakh crores in 2018-19 and is projected to grow to Rs.3.17 lakh crores by 2025-26, if immediate measures are not taken. The Forum seeks to address issues that are impediments to the growth of domestic industry. Unfortunately, there is heavy imports of even those chemicals where there is adequate domestic capacity. Caustic soda and soda ash are typical examples where imports continue despite sufficient domestic capacities to meet our needs. Share of imports in domestic consumption of caustic soda have averaged over 13% annually over the past five years whereas capacity utilisation has been 83.5% on an average. The corresponding figures for soda ash are over 20% average imports over and 84% capacity utilisation on an average. Import values have consistently been over Rs.1,000 crores each for these two chemicals for the past few years.

In the first meeting of the Forum in August, AMAI President, Mr. Jayantibhai Patel highlighted two key challenges the alkali industry is facing: high power costs which form a significant component of manufacturing costs, and the adverse impacts of trade agreements that have only increased imports and suppressed domestic production. The Regional Comprehensive Economic Partnership Agreement (RCEP) between India and 15 other countries poses a new threat with the possibility of more tariff lines being offered for concessions. The other associations who presented their issues also invariably touched on the adverse effects that FTAs has had on the chemicals sector and the threats posed by various ongoing trade negotiations.

The Union Minister and the Minister of State, in their addresses, assured to consider the various representations and resolve the problems to facilitate the industry’s growth. With the target of reaching a GDP of USD 5 Trillion and a 20% share of the manufacturing sector in this, speedy resolution of bottlenecks that impede growth is essential.

The C&PC Advisory Forum will be a permanent platform to resolve bottlenecks, improve ease of doing business and facilitate investments to reduce import dependency & boost exports. The setting up of the Forum is a welcome step and the industry hope to make the most of the opportunity to overcome challenges that the Forum is intended to provide.

K. Srinivasan Secretary General

India's Largest composite Resin (FRP) Manufacturer offering a Range* of specialized Chemical Resistant Vinyl Ester Resins for the Chlor Alkali Industry

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I. ARTICLES & FEATURES

Thermal Power Plant Safety: A Wise Business Move to Improve Bottom Line – Mr. Sibaji Pattanaik, Corporate Technical & Energy Services, Aditya Birla Management Corporation Pvt. Ltd. 1

Case Studies on Corrosion Failures - Dr. S.K. Chakravorty, Consultant (Plant Engineering) 8

Odisha: India’s second major hub for petrochemicals - Mr. Ravi Raghavan, Editor, Chemical Weekly 14

30th Training Workshop on “Safe Handling of Chlorine and Emergency Preparedness” at Bhandup Water Treatment Plant, Khindipada, Mulund, Mumbai - Mr. Subhash Tandon, Advisor Technical Services, AMAI 16

31st Training Workshop on “Safe Handling of Chlorine and Emergency Preparedness” at Surat Municipal Corporation - Mr. Subhash Tandon, Advisor Technical Services, AMAI 18

Beacon-Messages for Manufacturing Personnel 21

II. NEWS DIGESTGeneral

New trade policy set to overhaul export subsidies 24

Will sign preferential tariff agreement with India soon, says Iranian envoy 24

RCEP trade ministers to meet in Bangkok on Sep 8, 2019 24

FIEO sees strong flow of exports from eastern India 24

Over 100 investors consultations on proposed RCEP: Commerce Ministry 25

WTO reforms should be wholistic, comprehensive 25

Govt. declares ocean energy as green power 25

Karnataka outshines other states in rooftop solar units: MNRE report 26

Finance ministry reviewing India’s free trade agreements 26

NTPC plans to spend Rs 20,000 crore on 5,000-MW ultra mega solar park in Kutch 26

Economic ties between India and China will continue to grow, finds CII survey 26

India, China are no longer ‘developing nations’, won’t let them take ‘advantage’ of WTO: Trump 27

Exports rise 2.25% in July; trade deficit narrows to $13.43 billion 27

Exports to grow at double-digit this fiscal: Commerce Secretary Anup Wadhawan 27

Green Mega Power Projects on The Anvil 27

India has game plan for electric vehicles: NITI Aayog CEO 28

PET bottles do not leach cancerous chemicals: CSIR 28

$5 trillion economy goal linked to exports, private investment: CEA 28

Jal Shakti Ministry to oppose environment ministry’s ground water suggestions 28

Govt. plans import tariffs on green equipment to boost local industry 29

CONTENTS

Chlorine Emergency Response Network Toll free no. 1800-11-1735

Trade Ban: Pakistan’s textile, pharma sectors to take a hit, $1 billion Indian inputs among casualties 29

India to continue engaging bilaterally with RCEP members for favourable deal 30

RSS’ economic wing says India unlikely to accept China-led trade deal 30

Manufacturers, exporters asked to share data on costs borne with govt. 31

Chemicals and Petrochemicals

Chemical industry seeks restoring tax incentive for R&D 31

Article 370: Gujarat chemical exporters face uncertainty over Rs 150 crore payments 31

Govt. looks to cut down imports of chemicals, make India manufacturing hub 32

Member Units

Grasim industries consolidated net profit rises 15.32% 32

RIL surges on Aramco deal even as global turmoil drags markets 32

Reliance Industries’ Jamnagar refinery gears up for oil-to-chemicals strategy shift 33

Aditya Birla Group purchases US start-up’s technology for recycling epoxy resins 33

Green nod to Tata Chemicals soda ash expansion project 33

III. NOTIFICATIONS/PRESS RELEASES/MEMORANDA

Notification No. 33/2019-CUSTOMS (ADD) dated 26th August 2019 by Dept. of Revenue, Ministry of Finance, GOI –Imposition of provisional anti-dumping duty on Chlorinated Polyvinyl Chloride Resin (CPVC) for a period of 6 months from the notification 34

IV. UPCOMING SEMINARS/CONFERENCES/ WORKSHOPS

CCAON to organise The 8th China International Chlor-Alkali Conference on November 19-21, 2019, in Sanya, Hainan Province- AMAI is Partner to the Conference 36

Disclaimer: Information published in this magazine is reproduced from various sources. Every effort is made to minimize errors while reproducing for publication in Alkali Bulletin. However, readers are requested to verify and make appropriate enquiries and satisfy themselves about the veracity of information published in this magazine before use. The publisher or AMAI will not be responsible for decisions taken by readers based on information published in Alkali Bulletin.

Alkali Bulletin August, 2019

Why is this important? You can only manage hazards that you see and recognize. Chemical or petrochemical plants do not have many moving parts to show activity. This means hazards need to be identified, understood, and systems put in place to manage their safety.

Knowing the hazards is especially important when pipes or vessels are to be opened. Without a good understanding of what is or was in the process equipment, and what the temperatures and pressures are, preparing for the task is difficult, and the work can be dangerous.

Hazard Identification – the first step for process safety!

Know your process and what is in each part of equipment. For reactive systems, this could change with time.

Verify that pipe and equipment labeling is accurate and clearly visible/readable.

When equipment changes service either with different batches or after it has been changed physically, ensure proper review using your Management of Change (MOC) processes, and consider the need to update equipment labeling .

Follow line-breaking, vessel-opening and Lockout Tagout (LOTO) procedures.

When preparing systems for these activities, be diligent about completing the required permits. If there is an unclear or unresolved issue, stop and ask someone to review the situation before proceeding. Many incidents (see Beacon of June 2018) have been caused by poor permitting practices.

This issue sponsored by

http://www.aiche.org/CCPS/Publications/Beacon/index.aspxMessages for Manufacturing Personnelwww.aiche.org/ccps

August 2019

©AIChE 2019. 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 Afrikaans, Arabic, Catalan, Chinese, Czech, Danish, Dutch, English, Filipino, French, German, Greek, Gujarati, Hebrew, Hindi, Hungarian, Italian, Japanese, Korean, Malay, Marathi, Mongolian, Persian (Farsi), Polish, Portuguese, Romanian, Russian, Spanish, Swedish, Telugu, Thai, Turkish, Urdu, and Vietnamese.

Hidden hazards!

What Can You Do?Did You Know?

www.iomosaic.com

Some hazards are more obvious than others. We all respect a sharp knife, knowing the potential for a serious cut.

The same can be said about a drum of hazardous material that has the appropriate labels. However, it is difficult to determine if a pipe or vessel is full or empty, pressurized or not. It is even more difficult to understand the hazards associated with all of the materials and energies handled in your manufacturing process.

In a plant that was being dismantled, an unmarked and not even documented part of piping was found to contain sulfuric acid, which injured an employee.

So, what should we do? We need to treat them all as if the worst situation is present until better information can be obtained.

BELLOW SEAL CHLORINE GLOBE VALVE

EURO CHLOR APPROVAL CERTIFICATE NO. 17/01 FOR MANUAL VALVE

Created for those insearch of perfection..!!

GOVERNMENT OF INDIA MINISTRY OF FINANCE

NOTIFICATION No. 33/2019-CUSTOMS (ADD)New Delhi, 26th August, 2019

G.S.R. (E). – Whereas, in the matter of import of ‘Chlorinated Polyvinyl Chloride Resin (CPVC)-whether or not further processed into compound’ (hereinafter referred to as the subject goods), falling under heading 3904 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the said Customs Tariff Act), originating in, or exported from China PR and Korea RP (hereinafter referred to as the subject countries) and imported into India, the designated authority vide its preliminary findings No. 6/3/2019-DGTR, dated the 12th July, 2019, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 12th July, 2019, has come to the conclusion that-

the subject goods have been exported to India from the subject countries at prices less than their normal values in the domestic market of the exporting country;

the dumping margins of the subject goods imported from the subject countries is above de minimis and substantial;

the domestic industry is suffering material retardation and material injury due to the dumped imports of subject goods from the subject countries;

provisional antidumping duties are required to be imposed in order to address injury being suffered by the domestic industry during investigation.

and has recommended imposition of provisional anti-dumping duty equal to the difference between the landed value of the subject goods and the amount indicated in Column (7) of the Duty Table appended below, provided the landed value is less than the value indicated in Column (7). The landed value of imports for this purpose shall be the assessable value as determined by the customs under Customs Tariff Act, 1962 and applicable level of custom duties except duties levied under Section 3, 3A, 8B, 9, 9A of the Customs Tariff Act, 1975.

Now, therefore, in exercise of the powers conferred by sub-section (2) of section 9A of the said Customs Tariff Act, read with rules 13 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, on the basis of the aforesaid findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Duty Table below, falling under tariff items of the First Schedule to the said Customs Tariff Act as specified in the corresponding entry in column (2), originating in and exported from the countries as specified in the corresponding entry in column (4), produced by the producers as specified in the corresponding entry in column (5), specifications as specified in the corresponding entry in column (6), and imported into India, a provisional anti-dumping duty at the rate equal to the amount, currency and per unit of measurement as specified in the corresponding entry in column (7), of the said Duty Table:-

The provisional anti-dumping duty imposed under this notification shall be effective for a period of six months (unless revoked, amended or superseded earlier) from the date of publication of this notification in the official Gazette and shall be payable in Indian currency.

[F.No.354/110/2019 –TRU] (Ruchi Bisht) Under Secretary to the Government of India.

(DEPARTMENT OF REVENUE)

S.No. Tariff Items Description of Goods Country of Origin/ Export

Producer Specification Amount in USD Per MT

(1) (2) (3) (4) (5) (6) (7)

1 39042110 39042190 39042210 39042290 39041090 39049000

Chlorinated Polyvinyl Chloride Resin (CPVC) - whether or not further processed into compound

China PR

Shandong Gaoxin Chemical Co Ltd Resin 2,066Compound 2,609

2 Shandong Pujie rubber and plastic Co. ltd Resin 2,072Compound 2,849

3 Shandong Xiangsheng New Materials Technology Co., Ltd.,

Resin 2,097Compound 2,849

4 Weifang Sundow Chemical Co. Ltd Resin 2,031Compound 2,849

5 Shandong Xuye Materials Co. Ltd Resin 2,057Compound 2,591

6 All other producers exporters Resin 2,165Compound 2,849

7 Korea RP All producers exporters Resin 2,031Compound 2,849

34 | Alkali Bulletin August 2019

CCAON will hold the 8th China International Chlor-Alkali Conference on November 19-21, 2019, in Sanya, Hainan Province. The conference will track the global hot topics and market trends as in the past conferences, meanwhile, the conference will create a platform for both domestic and foreign

industrial insiders to exchange market information.

Agenda of the Conference1. The evolution of the global energy structure and its impact on the chlor-alkali industry2. The development pattern of the global vinyl industry and the impact of raw material routes on the chlor-alkali industry3. The trade pattern and future evolution of the global caustic soda industry4. General situation and future development trend of chlor-alkali industry in North America5. The latest pattern distribution and future development direction of the chlor-alkali industry in Russia6. The rapid development and future evolution trend of Indian caustic soda industry7. Development of the Indian PVC industry and its downstream applications8. Development Status of PVC Industry in ASEAN and Development of Downstream Industry9. Industrial layout and trend of Asian caustic soda industry10. The development status of the global alumina industry and its impact on the global caustic soda industry pattern11. The pattern and evolution of China plastic products industry12. Development Status and Trends of China Caustic Soda Industry13. The latest development technology and policy of China chlor-alkali industry14. The pattern and evolution of China PVC industry15. The development of PVC futures market and forecast16. Analysis of China caustic soda export market and EDC/VCM international market

Look forward to your participation!

Partner：

Published by ALKALI MANUFACTURES ASSOCIATION OF INDIA 3rd Floor, Pankaj Chambers, Preet Vihar Commercial Complex, Vikas Marg, Delhi 110092 Ph: 011-22432003, 22410150 Email:hkanand@ama-india.org; info@ama-india.org; website: www.ama-india.org

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