ISO-14001 in Indian Petrochemicals Case

ISO Management Systems – September-October 2002 43

ndian Petrochemicals CorporationLimited (IPCL) 1) manufactures

and markets polymers, syntheticfibres, intermediate chemicals, cata-lysts and other petrochemicals-basedproducts. It was founded by theIndian Government in 1969, at a timewhen the private sector was notmature enough to undertake thisbusiness where investments were veryhigh, technologies were guarded, andlocal markets not well developed.

The company pioneered thedevelopment of the petrochemicalssector in India and is recognized forits capabilities in petrochemical tech-nology absorption, market develop-ment, research, good corporate citi-zenship, and for its safety andenvironmental concerns.

In 1990, IPCL was rated first inperformance among petrochemicalsmanufacturers worldwide by UnitedKingdom-based industry journalChemical Insight. The company isalso noted for its environmental poli-cies and commitment to the conceptof sustainable development. Environ-mental protection has been incorpo-rated in all stages of evolution of its

major Maharashtra Gas CrackerComplex (MGCC) at Nagothane inthe Raigad district of MaharashtraState, which achieved ISO 14001 cer-tification in 2000.

IPCL-MGCC has been recognizedby the Indian Government and sever-al non-governmental institutions for

I N T E R N A T I O N A L

Indian Petrochemicalssaves costs, gains competitiveness andemployee commitment with ISO 14001-based EMS

Indian Petrochemicals Corporation Limited (IPCL), established by the Indian Governmentin 1969 and recently acquired by the Reliance industry group, has pioneered the devel-opment of the petrochemicals sector in India. It is also recognized for its safety andenvironmental concerns. The authors, IPCL executives, outline the company’s approachto environmental protection, encompassing ISO 14001 certification of its Nagothanecomplex leading to cost savings, raised competitiveness, and company-wide employeecommitment to resource conservation and pollution control.

1) Indian PetrochemicalsCorporation Limited (MaharashtraGas Cracker Complex Division)(Contact : Rajive Bansal, DeputyManager (E&E), HSE Department,PO: Petrochemicals T/S),Nagothane – 402125, Dist –Raigad, Maharashtra State, India.

Tel. + 91 2194 22280.Fax + 91 2194 22264/22261.E-mail [email protected]

BY S. RAVIKUMAR, A.H. SELUKAR AND RAJIVE BANSAL

The authors, (from left to right)S. Ravikumar, A.H. Selukar and RajiveBansal are Executive Director(Nagothane Complex), DeputyGeneral Manager (Health, Safety &Environment), and Deputy Manager(Environment & Ecology) respectivelyof the Maharashtra Gas CrackerComplex Division of the IndianPetrochemicals Corporation Limited(IPCL), which is part of the Relianceindustrial group.

I

44 ISO Management Systems – September-October 2002


its outstanding contribution to envi-ronmental conservation, signified bythe Dr. R. J. Rathi EnvironmentalProtection Award, the MaharashtraState Government Vanashree Award,and the Indo-German GreentechEnvironment Excellence Award for2000-2001.

This article out-lines MGCC’s jour-ney towards fullimplementation ofISO 14001, now acentral element of itsenvironmental policywhich was developedin response to the principles of sus-tainable development established atthe Earth Summit in Rio de Janeiroin 1992.

IPCL’s approach to environmentalprotection

IPCL focuses on environmentalmanagement at all stages of its activ-ities, from selecting technology tooperating and monitoring processplants. Environmentally friendly, lowwaste technologies were selectedduring the project stage at MGCC,followed by environmental impactassessment studies to determine airemissions, water effluents, etc.. Thesestudies, carried out by the Council ofScientific and Industrial Research(CSIR), an independent researchorganization funded by the Govern-ment of India, led to the preparation

of a comprehensive environmentalmanagement plan.

The next step was to implementand monitor the plan, and upgradethe environmental management sys-tem (EMS) in line with technologicaldevelopments worldwide.

IPCL commission-ed a state-of-arteffluent treatmentsystem designed torelease treated waste-water into the estuaryof the Amba river, 26km downstream fromthe plant site at

Nagothane. The disposal site wasidentified by the government-fundedNational Institute of Oceanography(NIO) after 15 months of detailedstudies. A 40 km stretch of the river isregularly monitored by NIO scien-tists to confirm that the water, sedi-ment quality and biological charac-teristics today are benign andcomparable with baseline water qual-ity.

In order to upgrade the eco-sys-tem of the region, IPCL initiatedarboriculture (greenbelt) develop-ment activities in 1986, consisting ofplanting some 1,8 million saplings on400 hectares of land.

Route map to ISO 14001

ISO 14001 provides a frameworkto institutionalize environmentalprotection and integrate environ-

The ISO 14001-certifiedMaharashtra Gas CrackerComplex at Nagothane is

surrounded by a 400 hectaresgreen-belt area planted since 1986 by IPCL as a

demonstration of its commitment to ecological

conservation.

IPCL focuses on

environmental management

at all stages

of its activities



mental management practices withday-to-day activities. Implementationof the international EMS standard atIPCL’s Nagothane complex beganduring 1st quarter 1999. The task cov-ered 19 units, including process plants,utilities, service groups, medical unitsand township services, and culminat-ed in ISO 14001 certification some 15months later.

Today, environmental manage-ment at IPCL focuses on five coreelements – 1) commitment to environ-mental policy, 2) planning, 3) imple-mentation, 4) measurement and evalu-ation, and 5) review and improvement.

1) Commitment to environmentalpolicy

To fulfil the requirements of ISO14001, IPCL environmental policyfocuses on “4C’s ” :

– Compliance with legislation

– Conservation of resources by min-imizing waste and maximizingrecycling

– Continual improvement to en-hance environmental performanceand reduce impact by prevention

– Communication to raise aware-ness among employees so theywork in an environmentallyfriendly manner.

2) Planning

This is the key element of theEMS undertaken by a multi-discipli-nary core team of 35-40 members incollaboration with an environmentmanagement group. During thisdemanding phase, approximately 350“ environmental aspects ” were identi-fied by the environmental audit,and mass flow diagrams indicatingresources, waste emissions, etc., wereprepared.

A bio-medical waste incinerator was installed inDecember 2001 to ensureenvironmentally safe disposalof infectious and contaminatedhospital waste in compliancewith Bio-Medical Waste Rules2000 legislated by the IndianGovernment.

The team also identified “ signifi-cant environmental aspects ” basedon ISO 14001 guidelines, classifiedas :

! regulations and laws

! impacts

! wastage of resources

! interested parties

! frequency, control, preventivemechanisms, etc.

The core team set a number ofenvironmental objectives in line withthe environmental policy. Theseincluded technically and commer-cially viable targets based on signifi-

Construction of an under-ground water tank at IPCL’sgas cracker plant will save anestimated 210 000 litres ofcooling water per day byrecycling instead of drainingit to the waste water treatment plant.



cant environmental aspects and oncompliance with legislative require-ments, focused on improving envi-ronmental performance, conservingresources, recycling, reduction ofwaste etc. Resource allocation forlegislative compliance was givenhighest priority.

Forty-nine long- and short-termspecific, challenging, achievable andtime-bound targets with clearlydefined responsi-bility were estab-lished. The teamalso framed tenobjectives in linewith environmentalpolicy, highlightingcompliance withrules and regula-tions for hazardouswaste and bio-med-ical waste, callingfor the phasing outof ozone depleting substances, reuseof resources and minimizing waste,improving housekeeping and thework environment, conserving water,optimizing energy consumption,reducing volatile organic ompoundsand creation of a green belt. Thesewill be achieved via targets set byeach plant/department for continualimprovement in environmental per-

formance.Waste minimization/resourcereuse and conservation of water arepriorities.

3) Implementation

This was the resource allocationphase, involving money and man-power. Here, the core team estab-lished procedures for communica-tions, document control, preparedness

for emergency res-ponse etc., bypreparing environ-mental system andprocedure manu-als and an environ-mental legislativecompliance regis-ter.

In addition, theteam preparedoperation controlprocedure manu-

als for each plant/department toeliminate, minimize and monitor thesignificant environmental aspects ofcritical operations.

Training programmes played a keyrole in developing competency andan environmentally friendly approachamong employees. All were madeaware of the EMS and its require-ments. The core team has also estab-

IPCL’s ISO 14001 EMS requiresthe segregation of workplace

waste at its scrapyard areaprior to recycling or environ-

mentally friendly disposal.

ISO 14001 provides

a framework to

institutionalize environmental

protection and integrate

environmental management

practices in day-to-day

activities

2) Det Norske Veritas, EmgeenChambers, 10 C.S.T. Road, Opp.University Campus, Kalina,Santacruz (E), Mumbai - 400098,Maharashtra State, India.

Tel. + 91 22 612 4606/616 0909.Fax + 91 22 612 4584.E-mail [email protected]



lished a procedure to identify train-ing needs and feedback results.

4) Measurement and evaluation

Internal audits are the principalmeans of measuring,monitoring and evalu-ating environmentalperformance at IPCL.These are conductedevery six months bytrained internal EMSauditors in order to identify proce-dural or system nonconformities, ifany. In addition, Det Norske Veritas 2)

our certification body, carries out sur-veillance audits in the interveningperiods.

Also, environmental records asso-ciated with critical operations andISO 14001 audit requirements i.e.nonconformities, corrective and pre-ventive action, are properly main-tained and audited. Collectively,these measurement and evaluationtools ensure EMS implementation intotality with minimal scope for com-placency.

5) Review and improvement

Top IPCL management continu-ously reviews the EMS to ensure itssuitability, adequacy and effective-ness. It focuses particularly on theextent to which objectives and targetshave been met, on policy formula-tion, and on addressing chronic orlong pending environmental issues.Other key elements of such reviewsinclude investigations of any con-cerns among interested parties, andresource requirements includingfunding.

Benefits of ISO 14001 implementation

There is no doubt that implemen-tation of the ISO 14001-based EMSat IPCL-MGCC’s manufacturingoperations at Nagothane hasenhanced employee commitmenttowards resource conservation and

prevention of pollution across theorganization. Previously, the environ-ment was considered the responsibil-ity of a small group only, but now allpersonnel are involved and con-tribute increasingly to the betterment

of the environment.On the recent

World EnvironmentDay, employees wereasked to respond tothe question, “ Whyare we going for ISO

14001 ? ”(see survey results, Figure 1).More than 50%believed thatenvironmentalprotection andresource con-servation wasa must, andnearly 20 %thought thatthe presentgeneration hada moral obliga-tion to ensures u s t a i n a b l edeve l o p m e n tfor future gen-erations, and for society as a whole.While 14 % saw business, marketingand competitive enhancements asreasons for implementation, only 3 %thought that IPCL was doing it toenhance image or set an example.

The comprehensive audit under-taken during the initial environmentreview phase of ISO 14001 imple-mentation has helped us estimateresource losses. This led to a changein mindset, and the acceptance that“ waste is a misplaced resource ”. As a consequence, each plant anddepartment has identified significantaspects and has set techno-commer-cially viable targets of waste reduc-tion, recycling, re-use, elimination, orconservation of the resource. Savingsresulting from such schemes are esti-mated at INR 20-25 million perannum. Furthermore, water recyclingand reduction projects are expectedto save INR 1,7-1,8 million perannum.

" Environmental protection/healthy environment 27%

" Pollution prevention/waste minimization andconservation of naturalresources 25%

" Moral obligation to futuregenerations/society andsustainable development18 %

" Awareness 4 %

" Compliance with legislativerequirements 5 %

" Market/business/competition 14 %

" Image/to set an example 3%

" Productivity/safety 4 %

Figure 1 – Why are we goingfor ISO 14001 ? – surveyresults

ISO 14001 certification

has helped us gain

in competitiveness



ISO 14001 implementation leavesno scope for non-compliance withlegislative requirements, and calls forcompliance within a specific timeframe for all new legislation.Accordingly, Bio-Medical Waste(BMW) Rules were implemented andthe IPCL Medical Unit was amongthe first to register with the statutoryauthority, the Maharashtra Pollution

relaxation, and failure to comply withEMS requirements is easily noticed.Corrective and preventive actions aretaken in management review meet-ings. As a result, the system is provingto be dynamic and a guarantee ofcontinuous improvement.

Our well documented and com-municated operation control proce-dures have drastically reduced“ adhocism” – the element of incon-sistency and complacency in old procedures. Also, ISO 14001 imple-mentation has improved the house-keeping and work environment atIPCL. In this context, the companyhas developed and implementedobjective evaluation mechanismsbased on the Japanese 5S Principles(Seri, Seiton, Seiso, Seiketsu andShitsuke).

Furthermore, ISO 14001 certifica-tion has helped us gain in competi-tiveness versus other organizations inthe sector as it reflects IPCL’s proac-tive approach to protecting the envi-ronment through preventive ratherthan corrective mechanisms.

In conclusion

An ISO 14001-based EMS canhelp improve market share becausecertified organizations are perceived

as believing in“Responsible Care”.EMS implemen-tation also helpsbuild confidenceamong interestedparties in the indus-try, and satisfy theaspirations of stake-holders such asemployees, regula-

tory authorities, public customers,financing bodies, insurance organiza-tion and shareholders.

Control Board (MPCB), in RaigadZone. In addition, IPCL managementhas planned the installation of anincinerator well before the deadlinespecified.

India is signatory to the MontrealProtocol on thephase out of ozonedepleting substances.As a responsiblecompany, IPCL hasalready met inter-mediate phase-outtargets for ozonedepleting refriger-ants, and is in dialogue with refrig-eration agencies to identifying envi-ronmentally acceptable alternatives.

The EMS has had a major impact,since all plant/department personnelare now well informed of the latestenvironmental developments andtheir contributions to environmentprotection are monitored by topmanagement. Scheduled internal andexternal audits do not allow any

The EMS has had a major

impact since all personnel

contributions to environment

protection are monitored

by top management

One of IPCL’s environmentalobjectives is the planting of20 000-40 000 tree saplings

per year to sustain its green-belt area. To date, the

company has planted some1,8 million saplings, of which

approximately one millionhave survived.

ISO-14001 in Indian Petrochemicals Case

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