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Alkali Bulletin Alkali Bulletin (For Restricted Circulation) October 2020 Volume XLII No. 10

Transcript of Alkali Bulletinama-india.org/wp-content/uploads/2020/12/AMAI-Alkali... · 2020. 12. 11. ·...

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Alkali BulletinAlkali Bulletin(For Restricted Circulation) October 2020Volume XLII No. 10

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Dear Reader,

The Jal Shakti Ministry rolled out the Jal Jeevan Mission (JJM) scheme that aims to provide piped drinking water to every rural household by 2024. A recent exercise found that out of 19.04 crore rural households in the country, only 3.23 crore households had tap connections and 15.81 crore households had to be provided functional tap connections. JJM envisages supply of 55 litres of water per person per day to every rural household through Functional Household Tap Connection (FHTC) in the next four years.

JJM is based on a community approach to water with focus on creating local infrastructure for source sustainability e.g. rainwater harvesting, groundwater recharge and water reuse.

An important milestone in the JJM was achieved when Goa became the first state to achieve 100% tap water connection in the rural areas covering a total of 2.3 lakh households.

AMAI has been propagating disinfection using chlorine for both drinking water and waste water treatment. We are working to include chlorination as a preferred option for disinfection under the Jal Jeevan Mission. We have recently introduced a separate section giving an update on the JJM.

We have been working on the idea of adding more features to this magazine. We have also been in contact with experts who could contribute articles related to our core business interests. An expert who has come forward to support AMAI is Dr. Jagjit Singh Sehra, President, CST Associates. Dr. Sehra has vast experience of almost four decades in the areas of heat transfer solutions, energy & water conservation solutions and power generation. This issue carries Dr. Sehra’s first article titled “How Thermal Plants can Earn Extra Revenue by Selling Drinking Water?” Readers may find this a useful addition to the magazine. We welcome comments and suggestions on further improvements.

K. Srinivasan Secretary General

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I. ARTICLES & FEATURES

Chlor-alkali industry in India - Status, Shortcomings and Strategy - Mr. Ravi Raghavan, Editor, Chemical Weekly 1

Covid Disruption - Power Sector attempts to recover from the crisis 3

Chemicals Transportation: Improving Safety Practices - Mr. Ravi Raghavan, Editor, Chemical Weekly 7

How Thermal Plants can Earn Extra Revenue by Selling Drinking Water? Dr. Jagjit Singh Sehra, President, CST Associates 9

Jal Jeevan Mission - An Update 12

Incident Report No. 114 - Chlorine Tonner loaded Truck trolley caught fire during transportation on 2nd August 2020 near Ahmedabad 14

Beacon-Messages for Manufacturing Personnel 16

II. NEWS DIGEST

General

The Bureau of Indian Standards (BIS) likely to be attached with department of commerce 18

Centre to seek Parliament's nod for additional Rs 37,000 cr infra push 18

India will slip to seventh largest economy in 2021, shows IMF data 18

NTPC Dadri to become cleanest coal-fired plant of India 18

Power consumption grows 11.45% in first half of October 19

Centre unveils plan to boost demand ahead of festive season; drop in the ocean, say economists 19

6% drop in SO2 emission, but India still top polluter 19

World Bank projects India's GDP to contract 9.6% in FY21 20

Double-digit rise in exports helps India nearly halve trade gap with China 20

Container non-availability, rise in sea freight serious concern: FIEO 21

Chemicals and Petrochemicals

Indian chemical sector will grow to $300 billion by 2025: Gowda 21

BMC comes up with SOP after 3 gas leak incidents in Mumbai 22

India, China to lead global PVC capacity additions by 2024 says Global Data 22

Gujarat becoming global chemical manufacturing hub 23

ACS presides over online IRS training on Chemical Disasters 23

Indian chemical industry in a good spot for growth, says Suresh Kalra 23

Indian chemical and petrochemical industry can contribute $300-bn to GDP by 2025: Minister 24

Ban on 7 hazardous chemicals ratified 24

CONTENTS

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

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Member Units

Grasim ties up with Lubrizol for setting up CPVC resin plant 25

Tata Chemicals’ process improvement projects gets CII recognition 25

Real trigger of ‘Aatma Nirbhar’ is the ease of operations, says Sunil Bhatnagar, GHCL 26

Tata Chemicals bags ICC Acharya P.C. Ray award for indigenous technology development 27

III. NOTIFICATIONS/PRESS RELEASES/ MEMORANDA

BIS Launches Consumer Engagement Portal on 06.10.2020 29

Trade Notice No. 05/2020 dated 28.10.2020 issued by DGTR, Department of Commerce, Ministry of Commerce and Industry regarding Temporary Changes in the Trade Remedy investigation processes due to COVID – 19 pandemic 29

Trade Notice No. 30/2020-21 dated 13.10.2020 issued by DGFT, Department of Commerce, Ministry of Commerce and Industry regarding Electronic filing and Issuance of Preferential Certificate of Origin (CoO) for India’s Exports under GSP, GSTP, India-Malaysia CECA, India-Singapore CECA w.e.f. 15th October 2020 29

Notice dated 13.10.2020 issued by DGTR, Department of Commerce, Ministry of Commerce and Industry regarding Oral Hearing in Anti-Dumping investigation concerning import of Soda Ash originating in or exported from USA and Turkey 29

Consolidated FDI Policy Circular of 2020 issued by Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, GoI 29

Notification No. S.O. 3753 (E) dated 20.10.2020 issued by Ministry of Environment, Forest and Climate Change regarding Amendment to EIA Notification 2006 29

Trade Notice No. 33/2020-21 dated 28.10.2020 issued by DGFT, Department of Commerce, Ministry of Commerce and Industry regarding Linking/Registration of IECs in the new revamped DGFT Online environment 29

Final Findings dated 29.10.2020 issued by DGTR, Department of Commerce, Ministry of Commerce and Industry regarding Sunset Review of Anti-Dumping Investigation concerning imports of 'Caustic Soda' originating in or exported from China PR and Korea RP 29

Final Findings dated 29.10.2020 issued by DGTR, Department of Commerce, Ministry of Commerce and Industry regarding Mid-Term Review limited to change of name of producer/exporter from Korea RP regarding anti-dumping duty imposed on imports of "Poly Vinyl Chloride (PVC) Paste/Emulsion Resin" originating in or exported from Korea RP, Taiwan, China PR, Malaysia, Thailand, Russia and European Union- Amendment to the final finding notification no. 15/19/2014-DGAD dated 26th April, 2016. 29

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.

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Chlor-Alkali Industry in India - Status, Shortcomings and Strategy

Ravi Raghavan Editor, Chemical Weekly

The chlor-alkali industry – producing caustic soda, chlorine, soda ash and a few other related products – is an important segment of the chemical industry, providing inputs that go into a diverse range of industrial and consumer goods. The industry does not grab headlines as the petrochemical and pharmaceutical industries do, and in times when self-reliance is all the talk, it is notable for meeting most of India’s needs. The industry does operate under a threat of cheaper imports, but given inputs at competitive prices and the right policy support, it can stand up to the heat.

A recent publication brought out by the Alkali Manufacturers Association of India (AMAI), which counts all of the producing units amongst its members, highlights market trends for the industry’s main products. Thorough documentation of this kind is rare in the chemical industry, though it is made easier by the fact that the chlor-alkali industry is a homogenous one, in which the issues facing an unit, are usually those of all.

Build-up of capacityThe caustic soda/chlorine segment of the industry has nearly 30-odd companies of varying sizes, and has seen significant investments over the last few years. Installed capacity for caustic soda (and concomitantly that for chlorine, which is co-produced in an unalterable ratio) has grown at a CAGR of 7.8% between FY16 and FY20 – rising from 33.7-ltpa (lakh tonnes per annum) to 45.44- ltpa. Operating rates have hovered in the low- to mid-80% range for much of the recent past, and is, more often than not, limited by the offtake of chlorine (more on this later).

About 60% of the total new capacity in the last two years have been in western India, where the broader chemical industry is mostly located. Overall, Gujarat accounts for about 55% of the total installed capacity for caustic soda.

Limited exportsThe industry’s market focus is largely domestic, and historically only 3-5% of total production is exported (mainly as flakes). But exports have been growing in the last six years (with the exception of FY19). Much of it are to the countries of Africa, where the chemical industry is undeveloped and caustic soda flakes are needed to make basic goods such as soaps, as well as for textile processing. Smaller quantities go to some of the South East Asian countries, notably Vietnam, Indonesia and Myanmar. In FY19, export earnings of the industry were about US$105-mn.

Threat of imports & measures to combat itThe industry does, however, operate under the constant threat of cheap imports, though in the recent past these have been mitigated to some extent. Since 2015-16, when imports peaked to attain a share of nearly 17% of domestic consumption of caustic soda, there has been a steady decline both in the quantity imported and as a share of domestic requirements. In FY19, imports reached a low of about 235-kt – roughly 6.5% of the domestic requirement – but there has been a sharp uptick in FY20 to about 375- kt, representing about 10% of domestic consumption. In the current year, a Covid-related contraction in demand is expected to take a toll on the industry in the form of reduced operating rates, and the spectre of cheap imports from

overseas producers desperate to sell their wares has re-emerged. Supplies are now coming in at prices of $250 per tonne, from $400 prior to the pandemic, and this will put margins under pressure for producers here.

If the imports have been curbed in the past, it was due a few initiatives taken by the industry. For one, as mentioned earlier, the industry has raised capacity over the last few years, and now has more than enough to meet domestic needs. The AMAI has also been active in combating predatory imports by seeking the imposition of anti-dumping duties (ADDs). These now exist on imports from China and South Korea, but will lapse in November, unless extended. The association is also lobbying to impose ADDs on imports from Japan, UAE, Iran and Qatar, and filed a plea this August.

Some non-tariff measures have also helped to rein in imports. For one, imports are now restricted to membrane-grade product, to the exclusion of mercury and diaphragm cell based alkali. More importantly, certification by the Bureau of Indian Standards (BIS) is needed for any importer who wishes to operate in the domestic market.

The country-wise analysis of imports has lessons for the impacts Free Trade Agreements (FTAs) can have on the domestic industry. For the last five years, Japan has been the dominant supplier of caustic soda to India, largely due its FTA with India, which enables caustic soda to come in at concessional basic customs duty (0.7% till April 1, 2021, going down to zero thereafter, compared to 7.5% for other countries). It also helps that producers in Japan (and in South East Asia, in general),

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have a logistical advantage when shipping caustic soda lye to the east coast of India to meet the needs of the sizeable alumina industry there.

Fragmented consumption baseThe major outlets for caustic soda in India are in textiles (21% share), alumina (12%), for making inorganic chemicals (13%), pulp & paper (8%) and soaps & detergents (7%). Aside from alumina and pulp & paper, the demand is fragmented and widely dispersed, which makes for expensive logistics to cater to it. Consequently, a sizeable portion of it is met through trade channels.

Much of the alumina capacity is located in the east coast, which does not have much of a chemical industry that can serve as a sink for chlorine. This poses a challenge for any new caustic soda capacity created in the region to meet incremental demand from the alumina sector. The best work-around to this is the setting up of a large-scale integrated polyvinyl chloride (PVC) plant at Paradeep, integrated to, or in partnership with, the refinery operated by Indian Oil Corporation (IOC) at that location. IOC has ambitious plans for its petrochemicals business and an integrated vinyls project, involving the manufacture of ethylene dichloride (EDC) and vinyl chloride (VCM), using ethylene from the refiner, should form part of the scheme for the site.

Such a project will have twin benefits: it will put the demand-supply for chlorine, at least for the region, on a more even keel; and also meet India’s growing demand for PVC resin. Indian imports of the polymer were a staggering 19.16-lt in FY20, far above the domestic production of 15.14-

lt, making India the world’s largest importer. This is an unsustainable situation that should be corrected immediately by investments in world-scale plants for the polymer and its raw materials.

In the absence of a sizeable vinyl sink, chlorine demand in India is very different from the rest of the world. Uses such as chlorinated paraffin wax, organic & inorganic chemicals, and chloromethanes account for a large chunk of the demand. The industry is also forced to convert a significant portion – about 18% – of its chlorine to low value hydrochloric acid (HCl) by reacting it with hydrogen, which is co-produced in its plants.

The hydrogen utilisation pattern of the industry has only now has begun to receive more attention. Close to 40% of the hydrogen produced is captively used as a fuel in boilers or in the caustic soda fusion plants, and about 28% is converted to HCl. A higher ‘chemical value’ is obtained for only the remaining 30%, either by captive consumption (for e.g., to make hydrogen peroxide) or by sale to third party in a compressed form (for use in hydrogenation plants).

A related issue that needs deliberation is the HCl generation by consumers of chlorine. More often than not, only one atom in a molecule of chlorine (which has two) is utilised, and the other comes out as HCl. The quantum of HCl thus generated is substantial, and, at times, contaminated with impurities. The worrying fact is that there is no clear assessment of how much is generated and what is being done to it. Regulators are now insisting that companies generating HCl in their

processes outline a utilisation strategy for it when seeking environmental approvals, but there is a big gap between promise and practice, and a large portion of waste HCl is unaccounted for. While this is not the chlor-alkali industry’s problem per se, it will have repercussions!

Policy measuresThere are some things the government can do to improve the lot of the industry. Power sector reforms are at the top of the industry’s ask, as electric power is a major cost component for the industry, accounting for about 60% of manufacturing costs. Nearly 87% of the installed capacity for caustic soda is now based on captively produced power (CPP) (usually from coal-fired plants), as it is cheaper than grid power, which on average costs the industry Rs. 7.36 per kWh. But levies, cesses and other taxes add to the cost of CPP also and there is need for rationalisation of these, especially in Gujarat, home to 55% of the industry’s capacity.

Fair value for all products – key to sustained competitivenessThe economics of manufacturing chlor-alkali products requires that fair value is obtained for each of the products made in the membrane cell. But, historically, the industry has focussed on the market for caustic soda and the utilisation of chlorine and hydrogen has suffered. Correcting this is key to raising overall competitiveness, and enable the industry combat the threat of imports on its own strengths, rather than depend on externalities in the form of tariff and non-tariff barriers.

(Reproduced with permission from Chemical Weekly, 20th October 2020)

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Power utilities in India have done their job throughout the Covid-19 crisis by keeping the lights on without interruption. But like players in other industries, they are facing several challenges.

At the beginning of the Covid-19 outbreak, utilities had to meet the immediate issues to keep operations running. Besides ensuring the safety of their people and guaranteeing the security of supplies, crisis teams had to stabilise supply chains and operations, which were disrupted by physical distancing and site restrictions.

A greater challenge was coping with the financial impact of the crisis. Lower commercial and industrial power demand hurt the cash flows and balance sheets of not just the discoms, but upstream players in generation and transmission as well. The government devoted more than Rs 1.2 trillion in stimulus measures, specifically for state discoms to address their cash flow challenges, besides announcing moratoriums on payments for them. For now, power demand has started to recover and is slowly returning to pre-

Covid levels; only the demand from the commercial segment is yet to return in full. The trajectory should further improve, say experts, as disbursements under the liquidity infusion scheme pick up.

Power Line takes stock of the key trends and developments in the sector as it recovers from the shock of the pandemic…

Key trendsPower demand: The imposition of the lockdown to mitigate the impact of Covid-19 led to an overall demand decline of 11 per cent in the first five months of 2020-21 (April to August), over the corresponding period in the previous year. With the gradual lifting of the lockdown and the resumption of certain economic activities, alongside an increase in domestic consumption and rural demand, the monthly power demand reduction has come down from 24 per cent in April 2020 (85 BUs) to 2.1 per cent in August 2020 (111 BUs) over the corresponding months in the previous year. Peak demand, meanwhile, has recovered from 129

GW in April 2020 (versus 172 GW in April 2019) to 167 GW in August 2020 (versus 174 GW in August 2019). That said, overall, there could be a decline of 5-6 per cent in all-India electricity demand in financial year 2021 over financial year 2020, owing to the reimposition of lockdowns, notes ICRA.

Generation and PLFs: Lower demand affected thermal power generation and capacity utilisation factors. During the first five months of 2020-21, thermal generation was 15 per cent lower at 387 BUs compared to 456 BUs during the same period in 2019-20. That said, there was a significant recovery in thermal generation in August 2020, matching the levels recorded last year. In contrast, generation from renewables (which have a must-run status) remained unaffected and posted a moderate decline of 5 per cent during the April-July 2020 period to stand at about 49.8 BUs cumulatively, compared to over 52 BUs during the same period a year ago. Thermal plant load factors (PLFs) declined to 49.13 per cent in April-August from 51.36 per cent a year ago.

Covid DisruptionPower Sector attempts to recover from the crisis

Ms. Reya Ramdev

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Capacity additions higher in financial year 2020: Amidst challenges, the sector added more capacity in financial year 2020 than last year, for both conventional power and renewables. At 7,065 MW, the conventional capacity addition (from thermal, hydro and nuclear) was higher than the 5,671 MW of capacity added in financial year 2019. The conventional power segment did, however, miss its target of 12.1 GW in financial year 2020. For renewables, the capacity addition in financial year 2020 was 8.7 GW, higher than the 8.5 GW added in financial year 2019. This has been the third year in a row since 2017-18 that the renewable sector has added more new capacity than the conventional sector. Going forward, financial year 2021 could see some slippages in renewable capacity additions due to the disruptions caused by the pandemic.

Cash flow pressures: The financial health of the discoms worsened further owing to weak demand from high-paying industrial customers. Putting pressure on the cash flows of power producers, the total dues to be paid by state discoms to generation companies stood at Rs 1.2 trillion at the end of August 2020 – of which Rs 1.09 trillion was owed to non-conventional generators and Rs 109 billion to renewable energy generators – 12 per cent higher than the Rs 996 billion owed in April 2020. This also had a trickle-down effect on coal mining players, with Coal India Limited’s dues from state-owned gencos increasing to Rs 220 billion as of July 2020 amidst lower demand and higher production.

Slide in discom performance: Key discom metrics showed a downward slide. Power Finance Corporation’s (PFC) latest audited figures for financial year 2019 showed that discoms’ aggregate losses increased to Rs 496 billion from Rs 294.5 billion in financial year 2018. The revenue gap (with subsidy received) increased from 30 paise per unit to 52 paise per unit

during this period. The aggregate net worth of the discoms was negative at Rs 805.6 billion. The average aggregate technical and commercial (AT&C) losses for distribution utilities at the national level did, however, improve from 22.3 per cent in 2017-18 to 22.01 per cent in 2018-19. In financial year 2021, the revenue gap for the discoms at the all-India level is projected to increase by Rs 420 billion-Rs 450 billion. The sector now has high expectations from a new successor scheme being currently mooted to the Ujwal Discom Assurance Yojana (UDAY). The new scheme aims to cut AT&C losses to 12-15 per cent, eliminate the revenue gap by financial year 2025, and combine existing programmes such as the Integrated Power Development Scheme and the Deendayal Upadhyaya Gram Jyoti Yojana.

Technology focus drives transmission industry growth: The transmission segment remained largely unaffected and showed resilience, as demonstrated during the lights-out event on April 5, when the grid handled the steepest fall and climb in demand in a short span of time. Interregional capacity grew to 102,050 MW in 2019-20. Some key technology milestones for the transmission segment were the commissioning of 11 renewable energy management centres which, apart from forecasting, will help in focused monitoring of renewable plants, and the commissioning of Pole 1 of the important Raigarh-Pugalur high voltage direct current (HVDC) transmission system to facilitate power flow of 1,500 MW from the western region to the southern region.

Solar tariffs drop further: The renewable energy segment reached yet another historic milestone in May 2020. The country’s first tender for providing round-the-clock solar power discovered a tariff of Rs 2.90 per kWh, quoted by ReNew Power for the supply of 400 MW of power. The tariff is 124 per cent lower than the peak tariff

discovered in the February auction for renewable capacity with a storage option. ReNew Power’s winning tariff is also 35 per cent lower than NTPC Limited’s average tariff for coal-based power. Another recent auction, which reaffirmed the faith of investors in the renewable power sector despite the uncertainty caused by the lockdown, was NHPC’s tender for 2 GW of solar capacity in April 2020, in which the lowest quoted tariffs of Rs 2.55 per kWh and Rs 2.56 per kWh were registered against the initial tariff rate of Rs 2.78 per kWh.

Short-term market trends: The market recovered fairly quickly from the impact of Covid-19. Monthly volumes traded on the exchanges, which had reported a decline of 7 per cent each in March and April, bounced back by 51 per cent in May 2020 owing to a steep fall in prices, which attracted discoms. Prices in the day-ahead market (DAM) in June 2020 stood at Rs 2.41 per unit, almost 31 per cent lower than those in June 2019. Another highlight during the year was the addition of two new segments – the real-time market (RTM) and the green term-ahead market (G-TAM). The volumes in the RTM, which allows consumers to buy power till just an hour before delivery, comprise 10-20 per cent of the DAM segment. Meanwhile, the G-TAM offers a new, alternative model for renewable developers to sell power in the open market.

Smart metering transformation: Under the Smart Meter National Programme, the sector has a target of installing 250 million smart meters across the country. Covid-19 reinforced the importance of smart meter deployment with notable benefits in billing and collection efficiency, load management, and remote connection/disconnection services. Recently, the Ministry of Power (MoP) began the process of setting up a Rs 20 billion joint venture backed by power majors NTPC Limited, REC Limited, Power

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Grid Corporation of India Limited and PFC for providing a common backend infrastructure facility to discoms for faster meter roll-outs. The current smart meter penetration in the country is around 6 per cent (for consumers with a monthly consumption of over 200 units).

Key developments Stimulus package: As the power sector’s southward trajectory became clear, a massive stimulus package was announced with a series of measures for the sector to avert defaults on payments. Under the Atmanirbhar Bharat package announced by the finance minister, PFC and REC Limited were to infuse liquidity of Rs 900 billion into the discoms in two equal instalments. There were, however, a few states that had hit the UDAY borrowing limit and were thus not able to avail of loans under the Atmanirbhar Bharat scheme. A one-time relaxation in working capital limits for a year was also approved by the cabinet. The package has now been hiked to Rs 1.2 trillion to clear dues for the April-June 2020 period. As much as Rs 730 billion has been sanctioned and around Rs 250 billion has been disbursed to discoms under the package so far. As part of the relief measures, the late payment surcharge rates on delayed payments were also reduced to 12 per cent from about 18 per cent.

Electricity Act (Amendment) Bill, 2020: In April 2020, the MoP issued a draft proposal for amendments to the Electricity Act, 2003, outlining some key reforms. The draft proposed to establish an Electricity Contract Enforcement Authority (ECEA) to decide on matters regarding the enforcement of contractual obligations on the purchase or transmission of electricity. Discoms have, however, strongly opposed the establishment of the ECEA and stated that it would lead to an overlap of functions with those of the MoP, as the draft does not provide a clear-cut differentiation in their respective functions. The proposed amendments have also

set aside provisions for distribution sublicensees as parties that obtain authorisation from distribution licensees to distribute electricity on their behalf in particular areas. On this, the discoms have sought more clarity regarding their roles, functions, eligibility criteria, responsibilities, contractual positions, and the regulatory act they would be governed by. Further, the amendments aim to provide for tariffs that reflect the cost of electricity supply and for cross-subsidies to be reduced by state commissions based on the tariff policy. Additionally, the amendments propose that the commissions set tariffs without accounting for subsidies, which would be directly provided to the consumer by the government through direct benefit transfer (DBT). Experts have, however, cautioned that there could be operational challenges in DBT implementation and that it would depend on whether the subsidy is released on time.

Draft Electricity (Rights of Consumers) Rules, 2020: In September, the government unveiled the Draft Electricity (Rights of Consumers) Rules, 2020, which aim to ease the way electricity is supplied to consumers and also offers them a host of other services. As per the draft rules, discoms would be liable to compensate consumers for no supply of electricity beyond a particular duration, interruptions in supply, delays in getting an electricity connection, etc. The idea is to give rights to consumers to seek 24×7 electricity supply at their homes and provide them compensation for any deviation from the stated goal.

Privatisation of discussion UTs and draft SBDs: As part of the stimulus measures, the finance minister announced that the discoms in the union territories (UTs) would be privatised. These discoms reportedly have an enterprise value of around $700 million. Transaction advisers have been appointed and the MoP hopes to complete the exercise by December this year. Setting the ball rolling for the privatisation of discoms, the MoP

issued the draft standard bidding documents (SBDs) in September 2020, which serves as a guiding document for the process. The bidding parameter proposed in the SBDs for discoms with medium to high AT&C losses of above 15 per cent is the commitment to AT&C loss reduction for the first five years. For discoms with lower than 15 per cent AT&C losses (or with negligible ACS-ARR gaps), the SBD suggests that the bid parameter may be an upfront premium for equity consideration. Further, the draft proposes that states can opt for 100 per cent equity sales to investors for urban populated areas, with no or limited subsidy on retail electricity tariff. For discoms in the mixed urban-rural populations, the state may look at a 26 per cent shareholding and 74 per cent for private investors.

Emission norms compliance: The overall progress in compliance with emission norms has remained slow. As of July 2020, out of the 169 GW of capacity that was required to install flue gas desulphurisation (FGDs) plants as per the Central Electricity Authority’s (CEA) phasing plan, FGD have been commissioned for only 1.7 GW of capacity and bids stand awarded for 33 per cent of capacity. The Central Pollution Control Board also directed 15 plants (over 14 GW), mostly state owned, to deposit environment compensation for not complying with the December 31, 2019 deadline to limit SOx emissions. Meanwhile, to address the issue of the cost of emission control systems, the Central Electricity Regulatory Commission (CERC) recently floated a staff paper on the issue of a compensation mechanism in cases where the PPAs do not have explicit provisions for such compensation. The CERC had already recognised the revised environmental norms as a change in law event. In another key development, the Supreme Court in July 2020 relaxed the NOx limits for plants that were commissioned between December 2003 and 2016 to 450 mg per Nm3 from 300 mg per Nm3. Also, last year, the environment

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ministry dropped mandatory washing of coal for supply to thermal power plants (TPPs).

Draft Power Market Regulations, 2020: In a significant development in the short-term power market, the CERC notified the Draft Power Market Regulations, 2020. One of the controversial proposals in the regulations is the provision of a new concept called “market coupling”, which is a process of collecting bids from all power exchanges and matching them to discover a uniform market clearing price through an agency called a “market coupling operator”, notified by the regulator.

National Infrastructure Pipeline: The final National Infrastructure Pipeline report was submitted by the task force to the finance ministry in April 2020. It estimates a capex of about Rs 14.1 trillion for the power sector between 2020 and 2025, for projects identified by the public and private sectors. Of the total capex, about Rs 3,268 billion will be for the generation segment, Rs 3,230 billion for distribution, and Rs 3,040 billion will be for transmission. The remaining will be accounted for by the states. NTPC is likely to spearhead investment in the generation segment with a capex of about Rs 1,200 billion lined up, while state transmission utilities will lead the transmission segment with a projected capex of Rs 1,900 billion.

Equipment import curbs: In July 2020, the MoP issued a directive that called for testing of all parts, components and equipment imported and to be used in the power supply system and network for embedded malware, trojans, etc., as well as for adherence to Indian standards. Prior to this, at the state power ministers’ conference, the power minister highlighted the need for self-reliance and stated that India would not import power equipment from China, saying that the sector, being strategic and essential, is particularly vulnerable to cyberattacks. As per the MoP’s estimates, India imported Rs 710 billion worth of power equipment, Rs 210 billion worth of which was from China, in financial year 2019.

Commercial coal mine auctions: Last year saw the roll-out of a key reform that is expected to open up an important sector to competition. The commercial coal mining auction process kicked off in August 2020 with 38 mines being put up for sale. The auction process follows the Cabinet Committee on Economic Affairs’ earlier decision to award coal and lignite blocks on a revenue sharing basis. There will be no restriction on the sale and utilisation of coal from these mines. However, there was little investor appetite for the blocks on offer, due to environmental concerns and low margins. Only 23 blocks received bids (82 bids), with the remaining 15 finding no takers.

Shutdown of old plants: In the Union Budget 2020, the finance minister announced that utilities would be urged to shut down old TPPs that generate higher carbon emissions than the stipulated limit. The land thus vacated would be put to alternative use. A study carried out by the CEA in 2015 showed that the total coal-fired capacityof TPPs that are more than 25 years old is around 34,280 MW, of which about 20,000 MW lies in the state sector, 12,830 MW in the central sector, and 1,450 MW in the private sector.

Conclusion

Despite the positive early signs, experts say that power demand may not recover fully before the end of 2020. Further, with states wanting to protect consumers, they might choose to keep tariffs low for the foreseeable future, further depressing revenues for the cash-constrained discoms. The extent, pace and trajectory of the economic recovery will ultimately determine how these challenges play out. However, the Covid crisis is certain to accelerate multiple trends that were already shaping the sector before the pandemic struck, including the increased use of digital technologies, smart metering, and a continued shift towards renewables and emerging business areas.

(Reproduced with permission from Power Line, September 2020)

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Chemicals Transportation: Improving Safety PracticesRavi Raghavan

Editor, Chemical Weekly

Chemicals are one of the most traded commodities in the world, and constitute nearly 85% of goods considered dangerous or hazardous. The transportation of chemicals from the point of its production to consumption centres is an activity that needs to be carried out with diligence and discipline. The hazard posed by the chemical is obviously one factor that needs to be kept in mind, but, as a broad generalisation, all chemicals need to be handled with care. The business of doing so once the goods leave the factory premises, on the way to customers, is in the hands of specialist operators, in much of the developed world, but these sorts of companies are only now emerging to offer their services here in India. They need encouragement.

Chemical transportation is still an afterthought in many companies in India, and viewed purely as a logistical exercise that needs to be carried out at the lowest possible cost. This has implications that often go beyond the company and cost savings, and needs to change.

Integrated operationsThe most economic and safe way to use a chemical is right at the point of production. This is what happens in integrated operations, wherein the output of one plant becomes the feedstock for another. Some large petrochemical complexes are good examples of this, and several stages of value-addition take place within the battery limits before products are shipped out. BASF, the world’s largest chemical company, takes this to great lengths in their famed Verbund in Germany and China. Closer home, Reliance’s Jamnagar refinery has

integrated petrochemical operations that exemplify the same concept.

Cluster based manufacturingThe next best thing to do is to ship chemicals from one plant to another located in close vicinity. This is what happens in industrial clusters – be they in Europe, USA, Singapore, Thailand, Japan, China or Malaysia. Sadly, India has missed out on the cluster-based approach to chemical manufacturing, and a few that exist have come up without any planning or are a sleight of hand of bureaucrats who have bracketed units set up several decades apart as part of one cluster. The Petrochemicals, Chemicals and Petroleum Investment Regions (PCPIRs) were supposed to be India’s response for dedicated manufacturing zones for chemicals, but are yet to be realised in a meaningful manner.

A cluster-based approach to manufacturing brings several advantages, and cheaper logistics is one. It also makes for safer logistics,by simply reducing the distance chemicals have to ply outside the factory limits. Just as importantly, clusters make it easier and more economical to set up dedicated pipeline networks for ferrying inputs such as raw materials, water, steam, industrial gases etc. In many of the big ‘chemical parks’ of the world pipeline logistics are handled by dedicated companies that create the infrastructure and manage its day-to-day operations. In the US Gulf Coast, the world’s largest petrochemicals manufacturing hub, dedicated pipelines ferry raw materials like ethylene, chlorine, hydrogen; energy (natural gas); and utilities (steam, water, industrial gases), and make them available on tap. For companies

using these inputs, the advantages are many and include smaller investment requirements; as well as risk mitigation from supply disruptions (as multiple vendors feed into and draw from the grids).

Pipeline transportation in IndiaIndia does have extensive pipeline grids for ferrying natural gas, crude oil, and refined petroleum products (especially LPG), but pipelines for chemicals are just a few. But their safe operations for several decades should encourage planners to permit more to be built and at last some action has been seen on this front. Last year, rules were framed and permission granted for pipelines to transport chlorine gas (not chlorine liquid) with the caveat that it be restricted within industrial estates. Prior to this, permission to build a pipeline for ethylene oxide – a notoriously hazardous material exclusively transported by road in India – between the producer and a large consumer was also granted. But for varying reasons, neither of these pipelines are operational as yet. But the nod to build them is still reassuring.

Road transportation rulesDespite the obvious advantages of pipeline transportation, the fragmented nature of the Indian chemical industry and its unplanned development over several decades, will mean that at least for the medium-term much of the transportation in India will continue to happen on roads. This exposes even companies that have sound safety practices within their battery limits to risks that should be unacceptable and mitigated to the maximum extent practically feasible.

7 | Alkali Bulletin October 2020

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Making road transportation safer will call for action by all stakeholders – be they the local industry promotion bodies; the state and central governments and their regulatory agencies; the chemical companies themselves; and the logistics providers.

Improving infrastructureStart with road infrastructure, which though better than in the past, still remains far from satisfactory, especially in the chemical estates of Maharashtra and Gujarat built several decades ago. The conditions unfailingly deteriorate every year during the monsoon, and accidents are common. These are in the jurisdiction of the state industrial development corporation and funded by the fees they collect from members. Better accountability of these authorities is needed.

Having said that some progress has been made in setting up industrial corridors that make the journey to ports smoother.

Rationalising regulationsThere are a hierarchy of regulations that govern the transportation of dangerous goods, in general, and chemicals, in particular. These range from international regulations under the UN and the International Maritime Organisation, to local ones, and work on the premise that chemicals can be safety transported, provided they are classified, identified and packed appropriately, marked and labelled properly and documented correctly. At times the rules can be confusing; having a central regulatory body will help bring clarity.

Compliance to the Globally Harmonised System (GHS) for Classification and Labelling; and development of authentic MSDS and documentation will aid emergency responders in particular.

These aspects have been addressed in the Draft Chemicals (Management & Safety) Rules currently under inter-ministerial discussions. It also calls for creation of a National Centre for registration of chemicals.

Collaborative industry initiativesThe industry too is stepping up its efforts to address the issue. The Nicer Globe initiative of the Indian Chemical Council is a collaborative effort enabled by technology (hardware and software). Participating companies can view on one dashboard – akin to a control room – alerts on safety & security deviations of vehicles hauling their cargoes; checks on health of GPS devices; and other trip information. The platform also provides access to information in case of an accident, such as emergency resources nearest to the incident site (fire & police station, hospitals, cranes etc). The number of participating companies must be expanded.

The Alkali Manufacturers Association of India too has been managing an 24x7 emergency response network for accidents mainly related to chlor-alkali products, in particular chlorine. This has been around for several years and responded speedily to several incidents that could have spiralled out of controlled if not attended to promptly.

But these are ameliorative measures, which, while needed, are no substitute to preventing accidents in the first instance.

Initiatives at logistics companiesAnd many chemical logistics providers are beginning to pay attention, prodded by their own philosophies of safer practices and, more commonly, by their clients. They have implemented safe procedures that range from the

mundane, such as discontinuing night driving of chemical transport vehicles, to the slightly more exotic such as installing hardware and software that can sense driver behaviour and fatigue, and alert both the driver and the manager back in office, before an adverse event. Logistics companies are also sharing their experiences with each other, on several platforms (including one supported by this magazine – ChemLogistics, an annual tradeshow and conference). They are also emphasising training to better shoulder the responsibility for safety.

Noticed by their shortcomingsLogistics operators provide a service that mostly gets recognised for its shortcomings, not success. Alexander the Great is reported to have said: “My logisticians are a humourless lot; they know if my campaign fails, they are the first ones I slay.”

But the industry provides an important service, as noted by Napoleon Bonaparte: “Amateurs discuss tactics, while the professionals discuss logistics.”

The growth of the chemical industry will mean greater opportunities for logistics companies. More and more chemical companies are seeking logistics providers with improved safety & security procedures and records, but find an industry that is under-invested in and mostly unorganised. Only a few operate anywhere close to world-class or on a national scale. But those that do deserve better recognition and a better deal from their customers.

Road will remain the first option for transporting chemicals, despite the emergence of rail and water (inland and coastal). It is vital to make it safer!

(Reproduced with permission from Chemical Weekly, 13th October 2020 )

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How Thermal Plants can Earn Extra Revenue by Selling Drinking Water?

Dr. Jagjit Singh Sehra President, CST Associates

9 | Alkali Bulletin October 2020

In the last three editions of EA Water, we studied how thermal power plants can save 80% of water that is being used by the open cycle cooling towers. In this article we will study how thermal powers can generate pure drinking water and sell in the open market and earn extra income, besides earning from the electricity. This will solve two problems with one solution. First we will be able to use the waste heat coming out of the power plants, second we will generate the drinking water that will give benefits to the society.

How drinking water can be produced in thermal power station?There are four ways by which we can generate fresh drinking water using waste heat used in thermal power stations. Let us discuss one by one.

a. Generating Drinking Water using Flue Gases.

b. Generating Drinking Water using Low Pressure Steam.

c. Generating Drinking Water from Sea Water using Flue Gases.

d. Generating Drinking Water from Sea Water using Low Pressure Steam.

In the last articles, the author has explained the working and concept of Vapor Absorption Machines (VAM). To understand the method a) & b)

it is very essential to understand the concept and working of the VAMs. These are nonelectrical chillers, once energy in the form of heat is added to Li- Br Solution it evaporates. It travels to the condenser and absorbers. This exchanges its heat and finally, we can expect chilled water coming in & out at 12 & 7 Deg.C respectfully. In the balance articles, more details are being explained. Now let us study all the four cases one by one.

a. Generating Drinking Water using Flue Gases:- In a normal thermal power plant, flue gas temperature can reach as large as 200 Deg.C. This can be brought down to 120 Deg.C. Below this temperature there is always a fear of condensation of sulphuric acid. Therefore energy is available which is good enough to generate hot

is made to pass from the hot water heat exchanger. These are mostly finned surface heat exchangers. The fins and tubes are usually made out of Stainless steel tubes and stainless steel tubes. The flue gases are made to pass over the fins and water gets heated circulating inside the tubes. This water mostly is heated between 98 ~ 85 Deg.C. This hot water is made to pass through the VAM. Where chilled water of 7 Deg.C is generated. This water further passes through the water condenser. The water from the atmosphere gets condensed. This is further filtered and is packed in the drinking water bottles. Please refer to figure 1a for the VAM machine flow diagram.

b. Generating Drinking Water using Low-Pressure Steam:- Please refer to figure 2 for the details of the scheme. Steam is tapped from the steam boiler. Since this is a very

water. Please refer to Figure 1 to understand the working principle of the system. A part of the flue gases

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Alkali Bulletin October 2020 | 10

high pressure, therefore, it is passed through the Pressure Regulating Valve (PRV) station, with this the pressure is reduced to as low as 3 ~ 5 bars. The steam is passed in the VAM. Where chilled water of 7 Deg.C is generated. This water further passes through the water condenser. The water from the atmosphere gets condensed. This is further filtered and is packed in the drinking water. Please refer to figure 2a for the VAM machine working on steam.

c. Generating Drinking Water from Sea Water using Flue Gases:- There are many thermal power plants that are either on the sea coast or near the sea coast. In such power plants, the seawater can be taken through the pumps and is heated with the hot water generated from the flue gases. The process is called distillation. In this process, water evaporates in the closed chamber and gets condensed. This condensed water is free from mineral and is also refer to as demineralized water (DM water). This water is not good for drinking, as it is mineral-free. To make it drinkable we need to add minerals to it. The addition of minerals will depend on the type of water condensed. once the minerals are added becomes drinkable. This system also generates salt that can be sold to the salt processing mills for further processing. Please refer to figure 3 for the details of the process. Once the water is mineralized it can be packed in a drinking water bottle and sold in the free market.

d. Generating Drinking Water from Sea Water using Low-Pressure Steam:- As discussed in point no c), the thermal power plants that are near the sea coast. Seawater is pumped and is heated with a low water heat exchanger. This produces distilled water. In this process, water evaporates in the closed chamber and gets

condensed. This condensed water is free from mineral and is also refer to as demineralized water (DM water). This water is not good for drinking, as it is mineral-free. To make it drinkable we need to add minerals to it. The addition of mineral will depend on the type of water condensed. This system also generates salt that can be sold to the salt processing mills for further processing. Please refer to figure 4 for the details of the process.

Benefits of Generating Drinking water using waste heat produced in the Thermal Power Plants:- The thermal efficiency of thermal power plants is quite low. Depending on the location, type of coal used & capacity of the thermal power plants, sometimes it is very difficult for the power plants to survive. But one thing is common in all the power plants is the availability of flue gases and low-pressure steam. Once any of the systems mentioned above is installed a power plant can generate a regular income other than the selling power. Depending on the system installed water generation cost can be as low as 60 ~ 80 Paisa. The cost of a bottle per liter is around Rs. 1.50. The total cost of the water with a bottle is between Rs. 2.10 ~ Rs. 2.30. The minimum market price of the bottle is Rs. 10.00, therefore a power

plant can produce a profit of Rs. 7.70 per liter.

Let us understand the concept in some examples. A thermal power plant of 300 MW is capable of producing 2,000 liters of water every hour. The power produced andW sold to the grid (assuming Rs. 3.00 per KW, PPA rate) Rs. 9,00,000 per hour. This is the selling cost. If we take out the cost of production the net profit comes to Rs. 90,000 per hour. This is assumed as per the industry standard. Now this power plant when generates 2,000 Liters of water every hour & water is sold at Rs. 10 per liter, brings the additional billing of Rs. 20,000 per hour. This adds to the profit of Rs. 15,400 per hour. So the total savings of three hundred MW

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11 | Alkali Bulletin October 2020

About the Author

Dr. Jagjit Singh Sehra’s life was moved by two personalities, one Sikh’s first Guru Nanak Dev Ji & Other Dr. Abdul Kalam, ex-President of India. Guru Nanak Dev Ji wrote a shalok in Japji Sahib ‘Pawan Guru, Pani Pita, Matta Darat Mahat’, which means Air is teacher and water is a father and they both are nurturing mother earth. Till mankind takes care of these resources nothing will happen on earth.

Dr. Abdul Kalam wrote a letter on ‘Save Water’. In this letter Dr. Kalam, imagined a son who writes a letter to his father in the year 2070. Where he explains how bad is the situation of drinking water. It is not a letter, but this is a warning, that we cannot misuse the water. You can see this letter in the form of a beautiful video at ‘https://www.youtube.com/watch?v=iRT6q1r1KdM'.

The time has come when we need to blend laws of Physics and Law of Nature and give solutions to the world how to save water and air. Humans are searching for life on other planets, the first things they look for are water and air. But on our own planet, we are misusing both. Everyone on this planet is for a short span, we need to educate the people to save the natural resources that have been given free to us. As responsible citizens of the global village, it is everyone’s responsibility to take care of these natural resources and handover a clean environment for the next generation.

Dr. Jagjit Singh Sehra invites people to join him and help companies and farmers both to grow if you feel that you can contribute more on this mission please contact him at [email protected]

power plant incomes increase by 17.1 %. This can take off lots of expenses & power plants that are not doing well will also start running. The power plants that want to explore more on this contact the author.

Dr. Jagjit Singh Sehra invites people to join him and help

companies and farmers both to grow if you feel

that you can contribute more on this mission please contact him at [email protected]

Author’s Next article:- Three sides of India is covered by the sea. This is one of the best locations any country can have. The author of this article has a fairly good idea of how Indian

cities that are miles away from coasts can take this advantage. In the next few articles, what is the science & technology behind it, will be discussed.

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Jal Jeevan Mission - An Update

PM reaches out to village heads over implementation of JJMBusiness Standard | 01 October, 2020

PM has written to all sarpanches and gram pradhans of the country for more effective implementation of JJM with a mention of full realisation of its goal with help of village community leaders.

https://www.business-standard.com/article/current-affairs/pm-reaches-out-to-village-heads-over-implementation-of-jal-jeevan-mission-120100101242_1.html

Govt launches 100-day campaign under JJM to ensure potable water supply in schoolsThe Economic Times | 02 October, 2020

The Ministry of Jal Shakti launched a 100-day campaign on 2nd October to ensure potable water supply in all schools and anganwadi centers across the country. Union Jal Shakti Minister Gajendra Singh Shekhawat requested the states and Union territories to make it a ‘Jan Andolan’ (people’s movement). He said he has written to chief ministers and lieutenant governors, requesting them to lead the campaign in their respective regions.

Speaking during the launch of the event, the minister said the initiative will be a fitting tribute to Mahatma Gandhi on his 151st birth anniversary on 2nd October 2020.

https://economictimes.indiatimes.com/news/politics-and-nation/govt-launches-100-day-campaign-under-jal-jeevan-mission-to-ensure-potable-water-supply-in-schools/articleshow/78445273.cms

Goa becomes First State to provide Piped Tap Water Connection to All Rural HouseholdsBusiness Standard | 09 October, 2020

In a positive development, the State of Goa has become the first in the nation to ensure 100% tap water connections in the rural areas covering a total of 2.3 lakh households.

The development was made public by the Ministry of Jal Shakti, which said that Goa has earned itself the distinction of becoming the first ‘Har Ghar Jal’ State with 100 per cent functional household tap connections (FHTCs). Of the total, 1.65 lakh households are located in North Goa and

98,000 households in South Goa, all spread across 191 gram panchayats.

https://www.business-standard.com/article/current-affairs/goa-becomes-first-state-to-provide-100-tap-water-connections-govt-120100901236_1.html

Jal Jeevan Mission: Lab on wheels!PIB Delhi | 12 October, 2020

Haryana Government comes up with an innovative solution for Water testing; Launches State of the Art Mobile Water Testing Laboratory Van

https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1663724

Over 2.38 Cr Rural Households Provided Tap Water Connections Under JJMDepartment of Drinking Water & Sanitation | 14 October, 2020

More than 2.38 crore rural households across the country have been provided tap water connections till date since the launch of Jal Shakti Ministry’s Jal Jeevan Mission. Today, more than 5.61 crore households get assured safe tap water in their homes, i.e. almost 30 per cent of total rural households.

https://jaljeevanmission.gov.in/content/over-238-cr-rural-households-provided-tap-water-connections-under-jal-jeevan-mission-till

Now, Wastage or Misuse of Groundwater to Invite Fine of upto Rs 1 Lakh, Five Years in JailThe New Indian Express | 23 October, 2020

Misuse of potable water will be a punishable offence in India with violators facing up to Rs 1 lakh fine and five years in jail, according to a new directive by the Centre.

The Central Ground Water Authority (CGWA), under the Ministry of Jal Shakti, Department of Water Resources, River Development and Ganga Rejuvenation, has issued a notification under Section 5 of the Environment (Protection) Act, 1986.The notification came following a directive from the National Green Tribunal after a petition was filed by Rajendra Tyagi and Friends (NGO), seeking to make water wastage and misuse a punishable offence in the country.

As per the notification, the civic bodies dealing with water

Alkali Bulletin October 2020 | 12

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supply in all states and UTs, whether it is the Jal Board, Jal Nigam, Water Works Department, Municipal Corporation, Municipal Council, Development Authority, Panchayat or any other body shall be duty-bound to ensure that there is no waste or misuse of potable water tapped from underground and evolve a compliance mechanism, with coercive measures for violations.

https://www.newindianexpress.com/nation/2020/oct/23/now-wastage-or-misuse-of-groundwater-to-invite-up-to-rs-1-lakh-fine-five-years-in-jail-2214149.html

J&K commits to provide piped drinking water to every rural household by December 2022 under Jal Jeevan MissionThe Tribune | 24 October, 2020

Jammu and Kashmir on Saturday committed to the Centre to provide piped drinking water to every rural household

by December 2022 under the JJM, ahead of the national dead-line.

https://www.tribuneindia.com/news/j-k/jk-commits-to-provide-piped-drinking-water-to-every-rural-household-by-december-2022-under-jal-jeevan-mission-160505

JJM inaugurated in 2 Remote Villages on Indo-Myanmar Border in ManipurNews 18 | 26 October, 2020

Chief Minister of Manipur N. Biren Singh inaugurated the two water supply projects for two villages under JJM. The two remote and once indurgent-infested villages on the border are remote and now getting regular water supply under JJM.

https://www.news18.com/news/india/jal-jeevan-mission-inaugurated-in-2-remote-villages-on-indo-myanmar-border-in-manipur-3006083.html

13 | Alkali Bulletin October 2020

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Chlorine Tonner loaded Truck trolley caught fire during transportation on 2nd August 2020 near Ahmedabad

INCIDENTA Truck trolley was transporting filled chlorine tonners in Gujarat. The truck when reached at Bagodara Road, Fedra Bypass (Haripura Patiya) of Dhanduka in Ahmedabad rural at 6.30 AM on 2nd August 2020, the truck driver noticed smoke in the side view mirror coming out from the back of the truck.

Driver parked the vehicle on the road side immediately and got down to inspect the truck. He observed that the tyres of the truck caught fire. The fires were severe and spreading from the truck tyres to the truck body.

He tried to extinguish the fire, but fire was spreading from tyres to the truck body, then he informed his transporter regarding the said incident. The transporter informed the local police station and they called up the fire-fighting tender who started extinguishing the fire, but by that time three liquid chlorine tonners got exploded because of heat, carried by the said truck.

The transporter informed the supplier regarding the above incident immediately. Supplier rescue team members rushed to the incident site.

The tonners were exploded at around 7.30 AM. The explosion occurred due to expansion of liquid chlorine contained in the tonners because of heat from the fire.

The liquid chlorine from the exploded tonners formed cloud and escaped to the atmosphere. No person reported to be affected in the above accident.

The truck was completely charred in the fire.

INCIDENT CONTROLThe transporter called the fire brigade. The fire brigade reached the incident site and started extinguishing the fire with foam and controlled the truck fire.

Supplier sent their emergency control team along with crane and spare trucks to the incident site. Before supplier team could reach the incident site, a rescue team from Nirma Chemicals had already reached the site probably after getting information from the district Authority. They checked the unexploded tonners for chlorine leakage and found no leakage. The rescue team from supplier checked for chlorine leakage and surface temperature of unexploded chlorine tonners and waited till the chlorine tonner’s surface cooled naturally below 370C. The rescue team from supplier loaded the remaining unexploded tonner along with the three exploded tonners in trucks and transported to their site. The chlorine from remaining unexploded tonners was used in their process.

ROOT CAUSE ANALYSISThe incident occurred because of fire in the Truck tyres. The driver could detect the smoke very late. By that time truck tyres already caught fire and the fire was spreading to the truck body.

As per available technical literature, the trailer fires are caused by,

• Dragging brakes (32% of the time)

• Frozen wheel bearings (32% of the time)

• Air leaks (24% of the time)

• Flat tyres (12% of the time)

The above can produce scorching temperatures which may result in thick black smoke and flames.

Overheated brakes can cause the tyre rubber to soften and cause break failures. Heat from a very hot drum can ignite the tyres. The brake drum when became very hot, the tyre caught fire.

The Technology & Maintenance Council (TMC) held a Technical Session to discuss the probable reason of truck fire in its 2018 Fall Meeting. The title of the technical session was “What the Blazes? Thermal Events Forensic Analysis.”

In the above technical session identified the following causes of truck fire.

• Fires were due to dragging brakes or brakes that were adjusted too tightly. The heat generated in these instances causes the inside tyres to blow first. Tyres usually provide the fuel needed for vehicle fires.

• At 300 degrees Fahrenheit, the tyre comes apart and blows out; at 500 F to 550 F, flammable vapors are generated; and at 650 F to 700 F, the tyre will burn when provided with an ignition source, which comes from the sparks generated by the wheel dragging on the pavement.

• In cases where the brakes are dragging or bearings freeze, heat generated by friction travels through the metal of the hub and through the wheel(s), where it comes in contact with the tyre break(s). The axle end can heat up to over 850 F to 900 F, at which point tyres may

Alkali Bulletin October 2020 | 14

Incident Report 114

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combust. Bearings should normally run between 160 F and 175 F. They begin to run into trouble at 250 F and higher.

• When lubricant is completely depleted, temperatures continue to rise until the wheel-end assembly either fails completely and separates from the truck, or it heats the surrounding materials to a point where the tyre catches fire, which is around 650 F and higher.

• The reasons for a brake can drag and cause a tyre fire, includes:

i. Driving with the parking brake applied;

ii. Brakes adjusted too tightlyiii. Drivers not turning on air valves. iv. Failed parking brake chamber

diaphragm not compressing the spring completely brakes not releasing after a brake application

v. Corrosion-related binding of the camshaft or disc brake caliper internal parts or sliding system

vi. Malfunctioning slack adjusters; vii. Excessive brake lining swells.

LESSONS LEARNT1. Trucks entering factory for carrying

Hazardous goods should be

checked for its fitness and Road worthiness.

• Proper preventive maintenance of trucks and inspection of all wheel-end components should be carried out regularly to prevent fire in the truck tyres:

• Oil lubricated hubs should be checked.

• Lubricant leakage on the axle ends should be checked

• Tyres on the vehicle should be checked

• Oil level in the hub-sight glass should be checked

i. If the hub won’t turn or is hot to the touch, the vehicle bearings have seized.

ii. If the hub is relatively cool, but the wheels are hot, it’s probably a case of a seized or dragging brake

2. Drivers should be trained for carrying Hazardous goods.

3. Drivers should be given proper instructions for safe transportation and action to be taken in case of fire, leakage and spillage or road accident.

4. In the case of any emergency incident, driver should inform

local police, Supplier control room and call on the CERN telephone number besides informing transporter for urgent remedial action.

5. Driver should also carry proper PPE and use the same to protect himself.

6. Driver should park the vehicle and cordon off the area. Advise passers- by not to go near the accident.

7. Driver should protect himself and wait for rescue team to reach the site.

8. Driver should show the TREM Card to the fire brigade and police and should not leave the incident site.

9. Fire brigade should use water to extinguish the fire as per class label and spray water on the unexploded tonner to cool the same and prevent their explosion.

10. Supplier should inform the respective district Authority of the State Disaster Management Authority where the accident took place for early rescue operation.

(Report prepared by Harisaran Das, Honorary SHE Advisor AMAI, based on the information from reliable sources & the supplier)

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©AIChE 2020. 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 [email protected] or 646-495-1371.

aiche.org/ccps www.iomosaic.com

October 2020

On August 4, 2020, a massive explosion occurred in Beirut, Lebanon that killed at least 160 people, injured more than 5,000 and left an estimated 300,000 people homeless*. At this time, no estimate of damages or cause of the explosion are available. The material, ammonium nitrate (AN), is a common fertilizer, but is also used as a blasting agent in mining. Approximately 2750 tonnes (3030 US tons) were stored in a warehouse for over 6 years. Local officials were aware of the material’s presence and age, but insufficient efforts were made to manage the storage operation. Some ports have taken steps to limit or eliminate storage of AN in response to the Beirut explosion. (ref. Washington Post August 21, 2020)

Often, we walk by things every day and do not “see” them because they have been there so long. This is more than a housekeeping concern. Proper storage is essential for all chemicals especially those that can degrade. 

Are there drums or other containers of chemicals in your area that aren’t often used? Have you ever looked at their labels? (* statistics at the time of this Beacon)

• Some chemicals have a shelf life and can degrade when they are stored too long or at improper conditions. Moisture, air or other materials can lead to degradation.

• Degradation can:

result in loss of potency, making the material  less effective.

affect additives that keep hazardous materials safe such stabilizers or inhibitors. 

lead to  violent, potentially catastrophic decomposition. (ref PS Beacon January 2006)(https://www.aiche.org/ccps/resources/process-safety-beacon/archives/2006/january/english)

• Safety Data Sheets (SDS) usually provide proper storage conditions and directions for proper handling and disposal. 

• Chemicals that aren’t needed in the area are potential sources of leaks and spills. 

• Having more material in the area than is needed can increase the impact if a spill or release were to occur. 

Look for drums or containers that have been in your area for a long time. Check them for an expiration date and confirm the proper storage conditions.

If you find an out‐of‐date container, notify your supervisor immediately. Do not try to open or move an old container – the material may be unstable or the container may be corroded.

Even if a container is not beyond its expiration date, ask why it is there. Perhaps it was left and has been forgotten. It needs to be sent to the proper storage area.

When using materials look for the date manufactured and use the oldest material first – IF IT IS NOT EXPIRED!

Beirut Lebanon Port area before and after the August 4, 2020 explosion

Did You Know?

What Can You Do?

Image here

This issue sponsored by

Messages for Manufacturing Personnelwww.aiche.org/ccps/process-safety-beacon

Hazardous Chemicals Hidden in Plain Sight

Watch for materials  stored in your area for a long time.

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NEWS DIGESTThe Bureau of Indian Standards (BIS) likely to be attached with department of commerceThe Economic Times | 26 October 2020

The Bureau of Indian Standards (BIS), which is increasingly being involved in prescribing quality norms for imports, may be shifted to the ministry of commerce and industry from the department of consumer affairs, official sources said.

Officials are preparing a note for the Committee of Secretaries to take the proposal forward, they said. The commerce and industry ministry had proposed such a move earlier also. “But former consumer affairs minister late Ram Vilas Paswan never showed interest in it. Now that both the ministries are under cabinet minister Piyush Goyal, the proposal is likely to take shape fast,” the official said.

The commerce ministry argues that since BIS is related to framing quality standards for goods services and items which broadly deal with commerce ministry, the department should be attached with commerce ministry.

The consumer affairs ministry had earlier argued that BIS should not be shifted because it deals with general consumers and looks into related issues. “BIS has to deal with consumer complains. So it will be appropriate if it is attached with consumer affairs,” a consumer affairs official argued.

Centre to seek Parliament’s nod for additional Rs 37,000 cr infra pushBusiness Standard | 26 October 2020

Centre will seek the Parliament’s approval for additional spending of Rs 37,000 crore on infrastructure development in the second batch of supplementary demands for grant.

Finance Minister Nirmala Sitharaman had earlier in the month announced that Centre’s capital expenditure budget for current fiscal has been increased by an additional Rs 25,000 crore from a level of Rs 4,13,000 crore provided for FY21.

Further, the Union government has also approved issuance of a special interest-free 50-year loan to states of Rs 12,000 crore for infrastructure development.

According to people in the know, the approval for these additional expenditure for infrastructure push will be sought from the Parliament through the second batch of supplementary demands for grants. The second batch of supplementary demands for grants is generally presented during the winter session of Parliament.

India will slip to seventh largest economy in 2021, shows IMF dataBusiness Standard | 23 October 2020

The good news that came in a year ago may not hold good for long.

Due to a severe contraction in gross domestic product, India is set to lose its gradually improving position in global gross domestic product (GDP).

The International Monetary Fund (IMF) data shows that India became the world’s fifth-largest economy in 2019, surpassing the UK and France. The latest IMF data, however, puts India back in the sixth position in 2020, and further down to No 7 in 2021. India’s share in the global GDP is seen to be shrinking from 3.3 per cent of the pie in 2017, to an estimated 3.1 per cent.

NTPC Dadri to become cleanest coal-fired plant of IndiaProject Today | 20 October 2020

NTPC Dadri is aiming to become the cleanest coal-fired plant in the country and complying with all the CPCB guidelines on emissions.

All the emission parameters are being monitored online and transmitted to the Central Pollution Control Board (CPCB) on real-time basis. The flue gas emissions and particulate matter are well within the CPCB norms with high efficiency electrostatic precipitators (ESP) in service in all four units of 210 MW and two units of 490 MW.

Moreover, for SOx reduction, Dry Sorbent Injection (DSI) system has been installed in 210 MW units for the first time in the country with technology from the United Conveyor Corporation, US (UCC) and now all the four units are meeting emission norms. FGD

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system is in advanced stage of implementation in 490 MW units by BHEL with technology from Mitsubishi Power Works, Japan.

All the 210 MW units were already compliant to NOx emission norms. In 490 MW units, Separated Overfire Air (SOFA) system has been installed and all the units now comply with the norms for NOx.

NTPC Dadri has also pioneered co-firing of biomass pellets along with coal in the boilers. The pellets are made of husk or agro-residue which would have been burnt otherwise in the fields increasing the pollution in NCR region. Over 8,000 tonne of pellets have been fired in the boilers of NTPC Dadri, which is equivalent to almost 4,000 acre of farm fire avoided. NTPC Dadri has also set new benchmarks in water consumption, going beyond compliances, by implementing zero liquid discharge system, and rainwater harvesting system.

The company is also targeting to install sulphur dioxide-reducing technology flue-gas desulphurisation (FGD) at all its plants across the country. It is also working towards various waste to energy projects for a sustainable environment.

The company plans to have a minimum of 32,000 MW capacity through renewable energy sources by 2032 constituting nearly 25 percent of its overall power generation capacity.

Power consumption grows 11.45% in first half of OctoberThe Times of India | 18 October 2020

India’s power consumption grew 11.45 per cent to 55.37 billion units (BU) in the first half of October this year, mainly driven by buoyancy in industrial and commercial activities, as per government data.

Power consumption in the country was recorded at 49.67 BU during October 1-15 last year, according to the power ministry data.

For a full month in October last year, power consumption was 97.84 BU. Thus, the extrapolation of half-month data gives sufficient indication that power consumption may witness year-on-year double digit growth this month, according to experts.

Centre unveils plan to boost demand ahead of festive season; drop in the ocean, say economistsThe Economic Times | 13 October 2020

India unveiled a long-awaited stimulus programme ahead of the festive season that’s expected to give the struggling economy a boost of as much as Rs 1 lakh crore, the Finance ministry said. The package aims to lift demand for consumer goods by offering festival loans to central government employees and promises additional capital spending and interest free loans to states. Staff can also use their leave travel allowance to pay for consumer goods. Economists see marginal impact. As part of the “fiscally prudent proposals to stimulate demand in the economy” announced by finance minister Nirmala Sitharaman, the government will allocate Rs 25,000 crore over and above the Rs 4.13 lakh provided in the FY21 budget for capital expenditure-on roads, defence, water supply and urban development. It will also offer states Rs 12,000 crore in interest-free, 50-year loans for such spending.

There is no additional borrowing on account of these measures, which has been budgeted in the Rs 12 lakh crore borrowing for FY21, economic affairs secretary Tarun Bajaj said.

6% drop in SO2 emission, but India still top polluterThe Times of India | 09 October 2020

India has recorded a 6% decline in emission of hazardous sulphur dioxide (SO2) in 2019 compared to 2018 - the first decline in four years. But by contributing 21% of global anthropogenic emissions of sulphur dioxide, India continues to be at the top in the list of big emitters for the fifth year in a row.

The overall SO2 emissions fell for all the top three big emitters - India, Russia and China - for only the second time on record.

The declining trend continues, so far, even in 2020 thanks to a 10% drop in consumption of coal during the January-August period.

Releasing these findings, the Centre for Research on Energy and Clean Air (CREA) and Greenpeace India attributed the decline in India’s SO2 emission to the country’s stride towards renewable energy and less consumption of coal.

Their report on ‘annual global sulphur dioxide emission’, however, expressed concerns over growing resistance among existing coal-based power plants in India to move to cleaner technology in a time-bound manner as initially planned by the government in 2015.

Since SO2 is a poisonous air pollutant that increases the risk of stroke, heart disease, lung cancer, and premature death, the environment ministry had in December 2015 introduced SO2 emission limits for coal-fired power stations and asked them to install flue-gas desulfurisation (FGD) to reduce emissions within two years. However, the December 2017 deadline for this was moved to 2022 after most of the units failed to install the technology within the timeframe.

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World Bank projects India’s GDP to contract 9.6% in FY21Business Line | 09 October 2020

The World Bank projected India’s gross domestic product (GDP) to plunge in FY21 by 9.6% revised down since its June forecast of 3.2% drop, reflecting the impact of the nationwide lockdown and the income shock experienced by households and small urban service firms.

The Indian economy contracted a record 23.9% in the June quarter, underlining the extent of economic damage brought about by the pandemic and the ensuing lockdown. Many forecasters now expect Indian economy to contract in double digits in FY21.

Growth is expected to rebound to 5.4% in FY22, according to the World Bank estimate, which assumes covid-related restrictions are completely lifted, but mostly reflecting base effects.

However, the Bank said, potential output is expected to remain depressed in the medium term and inflation is expected remain around the RBI’s target range mid-point of 4% in the near term.

Double-digit rise in exports helps India nearly halve trade gap with ChinaBusiness Line | 08 October 2020

India’s robust double-digit exports growth to China, coupled with sharp contraction in imports, nearly halved the trade gap between the two trading partners in the first five months of the current fiscal year (2020-21, or FY21) over the same period of 2019-20 (FY20).

The restriction on imports from China, along with the Atmanirbhar Bharat campaign, has shrunk India’s trade deficit with the neighbouring country to $12.6 billion between April and August of FY21, from $22.6 billion in the year-ago period.

India’s trade deficit with China stood at $23.5 billion in the corresponding period of 2018-19 and at $26.33 billion in 2017-18.

Exports to China saw sustained double-digit growth for the fourth straight month in August, led by eightfold rise in iron and steel shipments. In the April-August period, outbound shipments to Beijing expanded 27 per cent, compared to 9.5-per cent expansion in the same period last year.

Imports contracted 27 per cent in the first five months to $21.5 billion and shrunk 21 per cent in August alone.

India’s exports to China grew 15 per cent in August, with shipments worth $1.68 billion, revealed the data by the Department of Commerce. Exports growth to Beijing peaked in June at 78 per cent and expanded 48 per cent in May and 23 per cent in July.

Biswajit Dhar, professor, Jawaharlal Nehru University, said that exports to China have grown on account of two reasons. First, it is the only economy that is growing, while others are contracting. Second, there will be some diversion of exports from other destinations to China.

Dhar said this narrowing of trade deficit may not be sustainable. Domestic demand is currently squeezed, which explains the lower imports. “Doing away with the dependence on China for critical items like active pharmaceutical ingredients may not happen overnight, but will take years and require medium-term strategy,” he added.

In FY20, exports to China were down 0.83 per cent at $16.6 billion, accounting for 5.3 per cent of total outbound shipments. For this

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fiscal year, China accounts for 9.1 per cent of India’s total exports till August, behind US at 17 per cent.

The United Arab Emirates (UAE) has been displaced to the third largest export destination for India this fiscal year, accounting for 5.29 per cent of total outbound shipments.

Arpita Mukherjee, professor, Indian Council for Research on International Economic Relations, also pointed out that the artificial import restrictions may not really work — it simply results in rerouting of items from other markets like Hong Kong or the Association of Southeast Asian Nations.

Among India’s top five export partners, China is the only destination showing growth. Exports to the US are down 24.6 per cent. In the case of UAE, they are down 59.2 per cent. Shipments to Singapore also contracted 24.2 per cent and 26.7 per cent, respectively.

Container non-availability, rise in sea freight serious concern: FIEOThe Economic Times | 08 October 2020

Exporters said non-availability of containers and a gradual increase in sea freights pose big challenges to the country’s outbound shipments, which grew year-on-year after a gap of six months in September. The Federation of Indian Export Organisations (FIEO) said that a 20-40% increase in sea freights since July and shipping lines shutting out containers abruptly are making deliveries difficult. “Non-availability of containers for the export sector is posing a serious concern for meeting delivery commitments to foreign buyers,” said Sharad Kumar Saraf, president, FIEO. He said for the past couple of months, despite offering space three to four weeks in advance, shipping lines have been shutting out containers

abruptly saying the vessels are full. “Sea freights have also started increasing gradually since July and all the shipping lines have increased the freights by 20-40% depending on the destinations,” said Saraf. Merchandise exports grew 5.27% year-on-year to $27.40 billion in September while imports declined 19.6% to $30.31 billion.

Indian chemical sector will grow to $300 billion by 2025: GowdaBusiness Line | 15 October 2020

The market size of chemical and petrochemical sector is expected to grow to $300 billion by 2025 from the existing $165 billion and to attract foreign participation, India is revisiting its policies for chemical and petrochemical sector, said DV Sadananda Gowda, Minister for Chemicals and Fertilisers.

Citing an example, the Minister said the country would need five more crackers by 2025 and another 14 by 2040 and these crackers alone will require a cumulative investment of $ 65 billion.

“We are planning to extend financial incentive based on sales similar to what is being extended in our pharmaceutical sector. We are also tweaking our policies to strengthen our chemical industrial cluster which we call as PCPIRs (Petroleum, Chemicals, and Petrochemical Investment Regions) and plastic parks, Gowda said while addressing a virtual meet specifically relating to Latin America and the Caribbean organised by FICCI.

“Together, these supportive government policies will offer one of the best environments to do business in India as far as chemicals and petrochemical sector is concerned,” he said.

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BMC comes up with SOP after 3 gas leak incidents in MumbaiThe Hindustan Times | 26 October 2020

Following three incidents of a mysterious gas leak reported in Mumbai over the past one year, the Brihanmumbai Municipal Corporation (BMC) has now mobilised agencies like fire brigade and National Disaster Response Force (NDRF) to collect air samples if such incident is reported in future. The BMC has prepared a standard operating procedure (SOP) to chalk out roles of different response agencies during a gas leak. The SOP is yet to be finalised by the municipal commissioner.

In the past one year, three incidents of the mysterious gas leak have been reported in Mumbai, putting Mumbaikars in a frenzy, as its source has still not been identified. The only aspect which is common between all three incidents is that majority of the complaints which poured in are from the same set of areas (Chembur, Ghatkopar, Bhandup, Vikhroli, Mulund), the eastern suburbs.

During the probe of these incidents, there were some key decisions made that stated that all companies dealing with hazardous materials should intimate about their functioning to the disaster management cell and fire brigade. Secondly, the transportation of the chemicals needs to be informed beforehand to the concerned authorities depending

on their locations and that there should be specific timings for the transportation of hazardous chemicals within the city. A strict tracking and monitoring of vehicles carrying such materials were also decided. All of this is being included in the new SOP.

Despite the denial of leakage by several petrochemical factories located in Chembur, a probe set up into finding the source of the gas leak by the BMC stood inconclusive. The probe panel included experts from IIT, Fire Brigade, NDRF, University Institute of Chemical Technology (UICT) and petro-chem representatives.

There are multiple theories behind this mysterious gas leak. One of the most prominent theories is that a tanker carrying chemicals to or from one of the several petrochemical factories in Chembur could have leaked while it was passing through the eastern suburbs. A senior official from the Mumbai Fire Brigade said, “There is a chemical odorant (ethyl mercaptan) that is added to cooking gas so that it’s easy to detect leaks since the gas is otherwise odourless. The odourant is transported through vehicles which could have leaked accidentally. There was another speculation of gases emanating from sewer lines which is unlikely.”

India, China to lead global PVC capacity additions by 2024 says Global DataIndian Chemical News | 16 October 2020

“The global polyvinyl chloride (PVC) capacity is poised to see considerable growth by 2024, potentially increasing from 56.13 million tpy in 2019 to 65.60 million tpy in 2024, registering a total growth of 17%.”

The global polyvinyl chloride (PVC) capacity is poised to see considerable growth by 2024, potentially increasing from 56.13 million tpy in 2019 to 65.60 million tpy in 2024, registering a total growth of 17%. China accounts for half of global capacity additions, says GlobalData.

The company’s report, ’Global Polyvinyl Chloride (PVC) Industry Outlook to 2024 – Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants’ reveals that China accounts for the highest capacity additions with increase from 24.37 million tpy in 2019 to 28.37 million tpy in 2024. Major capacity additions will be from the plant, Tianjin Bohai Chemical Development Company Tianjin PVC Plant with a capacity of 0.80 million tpy by 2024.

Dayanand Kharade, Oil and Gas Analyst at GlobalData, says: “PVC demand in China is expected to grow from construction and other major segments. To meet the growing demand, the country is set to expand its PVC capacity.”

GlobalData identifies India as the second highest country in terms of capacity additions, with capacity increase from 1.58 million tpy in 2019 to 4.27 million tpy in 2024. Major capacity additions will be from the plant, Haldia Petrochemicals Kakinada PVC Plant, with a capacity of 0.60 million tpy by 2024.

Thailand will be the third highest country in terms of capacity additions, with capacity increase from 1.09 million tpy in 2019 to 1.65 million tpy in 2024. Major capacity additions will be from the plant, Vinythai Map Ta Phut PVC Plant, with a capacity of 0.56 million tpy by 2024.

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Tianjin Bohai Chemical Industry Co Ltd, Haldia Petrochemicals Ltd and China Shenhua Energy Co Ltd will be the top three companies in Asia in terms of planned and announced capacity additions over the outlook period.

Gujarat becoming global chemical manufacturing hubThe Times of India | 14 October 2020

Gujarat is slowly turning into a global hub for the manufacturing of chemicals, according to Union minister of state for the environment, forests and climate change (MoEFCC), Babul Supriyo. He delivered the keynote address at the CII Gujarat Chemical Conclave: Challenges and Way Forward, held virtually.

“Gujarat has been a role model for the country. Gujarat has 5% of India’s population, yet contributes 8% to India’s GDP and 20% of India’s exports. This is phenomenal. Gujarat is a hub of chemicals in India and slowly India is becoming a global base for chemicals. Thus Gujarat will play a major role in making India a $5 trillion economy,” said Supriyo.

“The ministry understands that there are concerns of chemical companies relating to compliance and timely approvals and I request a delegation of Gujarat chemical companies come and meet me in Delhi with a white paper which will clearly indicate the obsolete processes and delays, this will help chemical companies compete with global players,” he further said.

The objective of this conclave was to identify the challenges and potential solutions in terms of technology and compliance for the chemical industry. The conclave also focused on the latest environmental

legislation and how it will impact the chemical sector in Gujarat.

ACS presides over online IRS training on Chemical DisastersThe Statesman | 13 October 2020

Additional Chief Secretary (Revenue) R.D. Dhiman presided over the meeting for online Incident Response System (IRS) Training and Table Top Exercise on Chemical (Industrial) Disasters, involving all the 12 districts to discuss the roles and responsibilities of various stakeholders including districts, departments, Armed forces, Paramilitary forces etc.

ACS Revenue said that the aim of the training is to sensitize the Officers and Officials about the role of IRS and responsibilities of the Incident Response Team during disaster. He said that the main objective of the training is to establish well coordinating response system at State and District level to deal with emergency situations.

R.D. Dhiman said that the Incident Response System (IRS) is an effective mechanism for reducing the scope for ad-hoc measures in response. It incorporates all the tasks that may be performed during Disaster Management irrespective of their level of complexity. Organization functions through Incident Response Teams (IRTs) in the field, in line with their administrative structure and DM Act 2005.

He said that the IRTs are pre-designated at all levels; State, District, Sub-Division and Tehsil/Block. On receipt of early warning, the Responsible Officer (RO) will activate them. In case a disaster occurs without any warning, the local IRT will respond and contact RO for further support, if required and set coordination between the

District, State and National level in activating effective response.

ACS Revenue directed the authority to conduct mock drills and said that the mock exercise is the best way to tests the adequacy and efficacy of a Unified response plans of the State and Districts against disasters and to find gaps in the resources, manpower, equipment, communication and systems. He said that the mock exercise gives the opportunity to re-examine the existing roles and responsibilities of the stakeholder departments which can be altered accordingly to enhance coordination and synergize efforts of various emergency support functions (ESFs) of the State and the districts.

He expressed hope that the active participation of all the Stakeholders in the IRS Training, would help in accomplishing its desired objectives and would generate constructive and practical inputs in enhancing the collective response to disasters in the Himachal Pradesh.

Indian chemical industry in a good spot for growth, says Suresh KalraIndian Chemical News | 15 October 2020

With Indian chemical industry expected to grow with a CAGR of 9-9.5% as per the pre-COVID 19 projection, there is a great opportunity to bridge the export - import gap which currently stands at around US$ 26 billion. “We are in a pretty good sweet spot right now. We were at about US$178 billion of this chemical market and almost US$ 45 billion of import and US$ 19 billion of export every year. So, we are in net deficit so far and this itself is a very sweet opportunity for us,” Suresh Kalra, VP & MD - India, SI Group, said while speaking at the recently concluded e-Conference titled “Aatm Nirbhar Chemical

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Series” organized by Indian Chemical News.

Explaining the reason for the growth opportunity, he informed that the global market was growing at about 4% of CAGR for the next 4-5 years from $2.7 trillion to $5 trillion and then from $5 trillion to $6.5 trillion. “India, the last estimates before COVID, was that we could grow almost at about 9 or 9.5% of CAGR for the next 4-5 years. These numbers are published by agencies that can be trusted with some deviation here and there,” he said.

His optimism is based on the growth story of Chinese chemical industry which has performed well in the last two decades. “Taking the example of what China did right and what India can do better could be very helpful for us. China had 6% share in the global chemical market in 2000 and they grew from 6% to 18% in 2009 and today China has a market share of 36%. Although it seems like an almost impossible task to move from 6% to 36% in 20 years, but China did it well and we might well be sitting at the same spot right now. There is a real opportunity for Indian chemical industry to grow,” he emphasized.

Elaborating it further, Mr. Kalra suggested that India can also learn from China regarding practices which possibly China could have done better, and India now can learn from these. “We all buy a lot of products and it is one of the largest single sources of supply for all of us. We had seen 68% of our dependence on that in some market segments. But the industry have now seen that they have landed into certain problems with one single source of supply in terms of business continuity. China realized possibly later that environmental issues need to be addressed even more seriously; disaster management must be done at another level. Chinese

chemical industry was growing very fast and well,” Mr Kalra said, adding that India can address these issues right from the very start. He further said that India has to focus on these kind of companies and people that aims for sustainable and balanced growth.

He urged the government to facilitate manufacturing, FDI inflows and encourage the MNCs in the sector for ‘Make in India’. “There are many MNCs which have some presence in India, and also a lot of presence outside of India too. We make products in India, but we do not make all products in India. So, it is ‘Make in India’ versus ‘Sale in India’ for us,” he said adding that our decisions to manufacture in India depends on whether it is financially beneficial or not.

Indian chemical and petrochemical industry can contribute $300-bn to GDP by 2025: MinisterChemical Weekly | 13 October 2020

The Indian chemical industry has the potential to contribute $300-bn to the country’s GDP by the year 2025. Addressing the inaugural session and launch of ‘India Chem 2021’ at ‘Specialty Chem 2020’, an event organized by FICCI, the Minister said that to become a global hub in speciality chemicals, the industry must focus on research and development. “There is a need to make the R&D ecosystem stronger to come up with enhanced products aligned with the changing requirement of the industries,” he added.

Speaking on foreign investment in the chemical industry, he said that his ministry has set up an investment promotion cell for providing one-stop handholding and support for companies willing to invest in India. “We have had several rounds of

discussions on how to make the PCPIRs more effective and we hope to come up with policies to make the industrial clusters more attractive for investment,” said Mr. Gowda. He further mentioned that India is finalizing plans to increase the number of chemicals to be covered by mandatory certification for the benefit of human lives and society.

Mr. R.K. Chaturvedi, Secretary, Department of Chemicals & Petrochemicals (DCPC), said the pandemic has given ample opportunities to the chemical and petrochemical sector to grow by realigning business models, as demand for items like sanitizers, PPE and masks have increased manifold. “We are taking major initiatives to promote Atmanirbharta in the chemical and petrochemical sector, as its development will have a positive effect on allied industries,” he said.

Mr. Chaturvedi also mentioned about the 11th edition of India Chem 2021, would be organized from March 17-19, 2021 in Mumbai with the theme ‘Towards a Self-reliant Chemicals and Petrochemicals industry.’

Ban on 7 hazardous chemicals ratifiedBusiness Line | 08 October 2020

The Union Cabinet on Wednesday ratified the ban on seven chemicals that are hazardous to health and environment listed under the Stockholm Convention.

It also approved signing a Memorandum of Cooperation (MoC) in the field of cyber-security between India and Japan.

These chemicals are called Persistent Organic Pollutants (POPs) and include Chlordecone, Hexabromobiphenyl, Hexabromodiphenylether and

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Heptabromodiphenylether (Commercial octa-BDE), Tetrabromodiphenylether and Pentabromodiphenylether (Commercial penta-BDE), Pentachlorobenzene, Hexabromocyclododecane and Hexachlorobutadiene.

“With today’s decision India is sending out a positive message to the world that we are active in this area and we do not tolerate health and environmental hazard,” Union Environment Minister Prakash Javadekar said while addressing a press briefing.

The Stockholm Convention is a global treaty to protect human health and environment from POPs, which are identified chemical substances that persist in the environment, bio-accumulate in living organisms, adversely affect human health/environment and have the property of long-range environmental transport (LRET).

Exposure to POPs can lead to cancer, damage to central & peripheral nervous systems, diseases of immune system, reproductive disorders and interference with normal infant and child development. POPs are listed in various Annexes to the Stockholm Convention after thorough scientific research, deliberations and negotiations among member countries.

Considering its commitment towards providing safe environment and addressing human health risks, the Environment Ministry had notified the Regulation of Persistent Organic Pollutants Rules, on March 5, 2018 under the provisions of Environment (Protection) Act, 1986. The Act prohibited the manufacture, trade, use, import and export seven chemicals.

The Cabinet’s approval for ratification of POPs demonstrates

India’s commitment to meet its international obligations with regard to protection of environment and human health.

It also indicates the resolve of the government to take action on POPs by implementing control measures, develop and implement action plans for unintentionally produced chemicals, develop inventories of the chemicals’ stockpiles and review as well as update its National Implementation Plan (NIP).

The ratification process would enable India to access Global Environment Facility (GEF) financial resources in updating the NIP.

Grasim ties up with Lubrizol for setting up CPVC resin plantBusiness Line | 30 October 2020

Grasim Industries has entered into a definitive agreement with Lubrizol Advanced Materials to manufacture and supply chlorinated polyvinyl chloride (CPVC) resin in India with initial production expected in 2022.

The special type of polymer material that is widely used in hot and cold water pipes will be manufactured at the Chlor-alkali unit of Grasim located at Vilayat in Gujarat to take advantage of captive chlorine integration.

Construction of about 100,000-tonne plant will be done in a phased manner and once commissioned, it would be the single largest site capacity for CPVC

resin production globally, said the company.

Kalyan Ram Madabhushi, CEO Global Chemicals and Group Business Head- Fertilisers & Insulators, Aditya Birla Group said the collaboration with Lubrizol Advanced Materials is part of the long-term direction to bring in world-class technologies to India and additionally complements the company’s growth strategy in Chlor-Alkali and Derivatives platform.

The collaboration will not only support the ‘Make in India’ initiative but also expected to create local jobs and opportunities in downstream opportunities, he added.

Arnau Pano, Vice President, Lubrizol Advanced Materials, South Asia said the alliance would help better to serve CPVC customers in India and South Asia, as well as support the Indian economy.

India is among the largest consumers of CPVC, primarily in the form of plumbing pipe and fittings and growing needs for clean water in all residential and commercial buildings will drive continued growth. Lubrizol is the inventor and largest manufacturer of CPVC resin and CPVC compounds worldwide.

The tie-up will also enable Aditya Birla Group and Lubrizol Corporation to explore opportunities across applications such as water solutions, construction, textiles, automotive and piping by leveraging the technologies and market channels of both the groups.

Tata Chemicals’ process improvement projects gets CII recognitionChemical Weekly | 20 October 2020

Tata Chemicals has been conferred with the third position and two Gold level awards for its ‘Limestone

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Undersize Reduction’ and ‘Improve Effl uent Solid Utilisation’ project case studies at the 14th edition of the ‘CII National Six Sigma Competition’.

This year’s competition comprised of two sectors, manufacturing and services. Under manufacturing, Tata Chemicals stood third for its ‘Limestone Undersize Reduction’ project case study, in the ‘Improvement projects in Manufacturing and Operations’ category and also bagged the gold level award. This project enables achieving the lowest variable cost of soda ash through raw material undersize reduction.

Tata Chemicals’ project case study titled ‘Improve Effluent Solid Utilisation’, focused on improvement in waste-to-wealth conversion through increased effluent utilisation, also won the gold level recognition.

The Six Sigma National Competition, established by CII in 2007 recognises companies that have successfully adopted and implemented Six Sigma techniques, resulting in improvement in processes. An annual conference, the national competition invites organisations to participate and present successful case studies that are evaluated by an eminent jury.

Real trigger of ‘Aatma Nirbhar’ is the ease of operations, says Sunil Bhatnagar, GHCLIndian Chemical News | 17 October 2020

The pandemic has taught the Indian chemical industry very clearly that the international supply chains are vulnerable and there is a need to look inwards, look domestic, Sunil Bhatnagar, President, Gujarat Heavy Chemical Ltd (GHCL), said at a recent e-Conference organized by Indian Chemical News.

“This has become a necessity now for the industry and for our environment. But it also presents a huge challenge for the industry to ramp up capabilities and efficiencies to be a global player and to be globally relevant,” Bhatnagar said.

Welcoming the intent and policy support initiated by the government in last two year, he said that the issues of easing regulations is the critical part of the success of ‘Aatma Nirbhar’ area. The government needs to ensure fast approval of the projects.

Delving deep into the current scenario by citing examples from the soda ash industry, he said that the investment in this industry in the last 5-7 years have been very good domestically. “Another similar Rs 5,000-7,000 crores are lined up. But, if it takes about 4 years to accumulate a 1000 acres of land then for 4 years that is dead investment,” he said highlighting that land reform is one of the critical issue for making the industry ‘Aatm Nirbhar’.

According to him, there is a need to change perceptions and for that a lot of work needs to go on in terms of making governments realize that it is not that industry is asking for a subsidy every time or for a support on money or finance or interest rates all the time but industry needs fast tracking of proposals and help from government and this can be facilitated by removing the bottlenecks.

Bhatnagar also pointed out that the availability of basic raw materials that are available in India such as lime stone, salt, other basic chemicals, ease in leasing activity of mines, etc. are other hindrance to the growth of the industry. “If you then have to look at industry specific issues, for the soda ash industry for example, the biggest challenge is raw material security

and here the governments can facilitate fast tracking for actual users and issue of wasteland for salt, mining leases, etc… there is a policy disconnect between the Centre and the State. I think raw material surety or raw material supply at reasonably effective prices can be corrected because these are issues that needs a little bit of tinkering with,” Bhatnagar said and added this has to be dealt with by the government in a very pragmatic way and with some more hand holding required.

The other issue that really plays bulk chemical industry is the logistics. “Logistics is a big challenge and that is an area where the government has to help the industry stand on its own feet. We need a lot of support in this area,” he urged.

Another issue needs to be tackled is the ‘protective mechanism’. “We have a very well laid out legal infrastructure. We have issues like safeguard, anti-dumping, subsidy duties, everything is available and there is lot of action on it. The government has progressed on it but if a safeguard application for an industrial manufacturer has to take a year and a half to come into effect or to be litigated then by that time the industries cripple. So, I think a plethora of easing regulations is a need of the hour and we as an industrial group go back to the government requesting for these eases. There are lots of instances where the industries today ready to stand up and where the support is required. The real trigger of the ‘Aatma Nirbhar’ is the ease of operations which has intent but needs much more work on,” Bhatnagar added.

Saying that the government has shown the intent and on-roading needs to be worked on, he said that there is a need to set up a drawing board along with an interaction points with the government. “Unless we have continuous dialogue

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with the government, unless we request the government to bring up an ear which we people can talk about, things won’t work. It is very important that dialogues with government at various levels are initiated. We do dialoguing with the government on various issues of support at various points of time but I think a more concerted effort from the industry is required. We need formal platforms to engage with governments to tackle our basic issues,” he said.

He opined that the quality of dialogue will not change because industry is always perceived going to the government with a bone in hand, that unfortunately is the perception.

He suggested to adopt the Chinese model of industrialization which is known as ‘Iron Triangle’. “The ‘iron triangle’ has three sides. It talks about the industrial, bureaucracy and the government sides. Districts, areas, cities in China have known to develop fully because all three of these agencies were in sync and that is what we have to aim at. This is a never-ending point but I think concentrated efforts by leaders in these areas to continue and the discourse has to be taken above the financial support part of it to just the facilitation part.

He wished that the government would actually execute what the Prime Minister said by real facilitation.

Tata Chemicals bags ICC Acharya P.C. Ray award for indigenous technology developmentChemical Weekly | 13 October 2020

Tata Chemicals Ltd. was bestowed with the prestigious ‘ICC Acharya PC Ray Award for the development of indigenous technology’ for its breakthrough advancements in nano materials especially, nano-zinc oxide. Speaking at the virtual felicitation ceremony organised by ICC, Dr. Richard Lobo, Head Innovation and CQH – Business Excellence, Tata Chemicals Ltd., pointed out that the company started working in the area of nanotechnology during the development of nano silver used in its water purifiers. “We realised that the paints & pigment industry was facing problems in the use of organic UV blockers, which were causing harmful side effects, not just in production and operations, but also after its application. We found that zinc oxide was the best medium due to its UV absorption, antimicrobial, antifungal and antiviral properties. It’s been a long, arduous journey of indigenously developing the technology to make nano zinc oxide. While the nano zinc oxide that is imported today is largely oil dispersible, the product developed by Tata Chemicals is water dispersible, which enables it to have greater

surface and greater dispersion, besides applications in a wide range of products,” he explained. Dr. Lobo said the novel product will help reduce the dependency of Indian manufacturers in the paints, pigments, cosmetics and healthcare sectors, on foreign supply chains. He added that while the traditional route of trying to make nano zinc oxide is a thermal-intensive process, Tata Chemicals’ process makes the product free of harmful heavy metals, besides being compatible with both hydrophilic and hydrophobic media applications. This enables use in face masks and PPEs in the fight against COVID-19

Recognition for sustainability and CSR efforts

In an unrelated development, the company announced it has been ranked third amongst Indian corporates for its sustainability and CSR practice in the ‘7th Responsible Business Rankings’ released by Futurescape. Over 90 parameters are used by Futurescape to map India’s top companies on Environmental, Social and Governance metrics. Key action themes for companies included renewable energy, water, waste, and data privacy.

Tata Chemicals said it has launched multiple initiatives and projects to conserve the environment and engages with local communities toward building an ecosystem that is sustainable and eco-friendly.

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NOTIFICATIONS/PRESS RELEASES/MEMORANDA

1. BIS Launches Consumer Engagement Portal - 6/10/2020 https://www.services.bis.gov.in:8071/php/BIS_2.0/consumerdashboard/

2. Extension of Trade Notice no. 03/2020 dated 9th July 2020 – the validity of the aforesaid Trade Notice is hereby extended till 31st December, 2020 or until further orders whichever is earlier. http://www.dgtr.gov.in/sites/default/files/trade%20notice_0.pdf

3. Electronic filing and Issuance of Preferential Certificate of Origin (CoO) for India’s Exports under GSP, GSTP, India-Malaysia CECA, India-Singapore CECA w.e.f. 15th October 2020 – Date of Notification 13/10/2020 https://content.dgft.gov.in/Website/dgftprod/cd308cf7-ba39-4434-864d-060eea2d50dc/TN30.pdf

4. Anti-Dumping Original Investigation concerning imports of “Soda Ash” from Turkey and USA: Postponement of Oral Hearing - 13/10/2020 http://www.dgtr.gov.in/sites/default/files/OH%20Soda%20Ash.pdf

5. Consolidated FDI Policy Circular of 2020 – Effective from October 15, 2020 https://dipp.gov.in/sites/default/files/FDI-PolicyCircular-2020-29October2020.pdf

6. Notification No. S.O. 3753 (E) dated 20.10.2020 issued by Ministry of Environment, Forest and Climate Change regarding Amendment to EIA Notification 2006 http://moef.gov.in/wp-content/uploads/2020/11/Amendment-to-EIA-Notfication-2006.pdf

7. Linking/Registration of IECs in the new revamped DGFT Online environment - 28/10/2020 https://content.dgft.gov.in/Website/dgftprod/6d43e4ea-8c2e-4309-ac99-840ee71adfa6/Trade%20Notice%2033%20for%20Stage%201B%20go-live.pdf

8. Caustic Soda from China PR and Korea RP - Final Findings dated 29/10/2020 http://www.dgtr.gov.in/sites/default/files/FF%20Caustic%20Soda%20NCV.pdf

9. Poly Vinyl Chloride Paste Resin PVC Paste Resin originating in or exported from China PR, Japan*, Korea RP, Malaysia, Russia, Taiwan and Thailand – Final Findings dated 29/10/2020 http://www.dgtr.gov.in/sites/default/files/FF-%20PVC%20-%20MTR%20%20NCV%2029-10-2020.pdf

29 | Alkali Bulletin October 2020

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1 Alkali Imports (MT)

KEY INDICATORS SEPTEMBER 2020Qty (Sep 2020) Qty (Sep 2019) % Difference

(Y-o-Y)Qty (Aug

2020)% Difference

(M-o-M)FY 2020-21 (upto Sep)

FY 2019-20 (upto Sep)

% Difference Total Imports 2019-20

Caustic Soda 18,000 790 2178.4% 22,201 -18.9% 150,567 169,270 -11.0% 374,976

Soda Ash 70,361 106,636 -34.0% 96,385 -27.0% 329,489 537,309 -38.7% 946,031

Average Price in Sep 2020: Caustic Soda - 278 USD/MT (Lye) & 425 USD/MT (Flakes); Soda Ash - 200 USD/MT

2 Foreign Trade - Merchandise (US$ billion)

Sep 2020 Sep 2019 % Difference FY 2020-21(upto Sep) FY 2019-20(upto Sep) % Difference Total Imports 2019-20

Imports 30.3 37.7 -19.6% 148.7 248.1 -40.1% 467.2

Exports 27.6 26.0 6.0% 125.3 159.2 -21.3% 314.3

Surplus/Deficit -2.7 -11.7 -23.4 -88.9 -152.9

Sep 2020# Sep 2019 % Difference

Mining 87.6 86.4 1.4%

Manufacturing 125.3 126.0 -0.6%

Electricity 166.4 158.7 4.9%

Sep 2020# Sep 2019 % Difference

Chemical & Chemical Products 124.9 118.8 5.1%

Textiles 101.7 115.2 -11.7%

Paper & Paper Products 86.7 93.9 -7.7%

Basic Metals 156.0 150.4 3.7%

Sep 2020 Sep 2019 % Difference

India NA NA -

Russia 107.6 114.0 -5.6%

Brazil 97.3 95.9 1.5%

European Union (27) 99.6 105.6 -5.7%

USA 97.5 105.1 -7.2%

3 Exchange Rate (Rs./USD)

Sep 2020 Aug 2020 % Difference

Net Foreign Direct Investment

2,412 17,689 -86.4%

Net Portfolio Investment

-748 6,769 -111.1%

Total 1,664 24,458 -93.2%

11 Foreign Investment Inflows (US$ Million)

4 Index of Industrial Production (Base: 2011-12=100)

5 Index of Core Industries (Base: 2011-12=100)

6 Index of Industrial Production - Broad Sectors (Base: 2011-12=100)

7 Index of Industrial Production - Manufacturing Sub-groups (Base: 2011- 12=100)

8 Index of Industrial Production Country-wise Comparisons (Base: 2015=100)

Sep 2020 Aug 2020 Jul 2020

73.48 74.67 74.99

10 Consumer Price Inflation - Industrial Workers (Base: 2016=100)

Sep 2020 Sep 2019 % Difference

118 117.4 0.5%

Sep 2020# Sep 2019 % Difference

123.2 122.9 0.2%

Sep 2020 Sep 2019 % Difference

119.7 120.7 -0.8%

12 Foreign Investment Promotion Board (FIPB) Approvals (US$ Million)

Sep 2020 Aug 2020 Jul 2020

2 64 10

13 Foreign Exchange Reserves (US$ billion)

Sep 2020 (as on 25 Sep 2020)

Aug 2020 (as on 28 Aug 2020)

% Difference

542 541 0.1%

14 Fiscal Deficit (Apr 2020-Sep 2020)

% of Actuals to Budget Estimates FY 2020-21

% of Actuals to Budget Estimates FY 2019-20

114.8% 92.6%

15 Purchasing Managers Index (PMI)

Sep 2020 Aug 2020 Jul 2020

56.8 52.0 46.0

Index over 50 shows expansion, while below 50 means contraction

# It may not be appropriate to compare the IIP in the post pandemic months with the IIP for months preceding the COVID 19 pandemic.

CPI-IW has been revised to new series 2016= 100 from the existing 2001=100.

9 All India Inflation Rates (Base: 2012=100)

Sep 2020 Sep 2019 % Difference

156.5 145.8 7.3%

Data Source: GOI, OECD, IHS & AMAI Research31 | Alkali Bulletin October 2020

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