Published on December 7, 2013
The Indian chemical industry is one of the oldest industries and has been making significant contributions to the Indian economy for years. Any industry’s growth depends on strategies they formulate and on their ability to leverage strengths and manage challenges. The Indian chemical industry can develop to its fullest potential only with a strategic road map and a clear vision.
The industry will have to function in tandem with the government to achieve the ambitious targets it has set for itself. Let’s take a look at the strategies that would accelerate the growth of the Indian chemical industry.
The industry for years has been grappling with the issue of sustainability and the impact of this problem is likely to deepen in the coming years. Water, for instance, has become a scarce resource. Supply of this precious resource for the chemical industry still hasn’t been subject of continual or planned effort. Environmental pollution has reached alarming levels in majority of the chemical industry clusters. Despite increased awareness and improved safety, water and environmental performance, the inefficiency of certain chemical companies has damaged the environment to a considerable extent. These issues need to be addressed immediately. Certain measures can be taken to help the industry make contributions to preserving the ecosystem.
Research institutes can help the industry develop green and sustainable processes, which are less energy intensive and eco-friendly. These institutes should partner with specialist labs and research institutes in Europe, Japan and US. Chemical companies should be audited to ensure compliance to environmental laws. The Indian government should also ensure enforcement of pollution and environment related regulations in chemical units. Incentives should be awarded to compliant industries to encourage excellent performance in environment and safety. Thus the industry, government and research institutes should strive to establish a sustainable economy.
India is self-sufficient in terms of renewable agricultural and agro-waste resources. However, India has access to extremely limited supply of hydrocarbon resources. The chemical industry should upgrade and develop technologies and processes that would make production of chemicals from agro-waste and agricultural products like ethanol, glycerine, cellulosic materials etc possible. The government should encourage setting up plants and end-user industries with a focus on low resource agriculture.
Identifying agro-wastes and their value as raw materials and then creating an inventory of the same would set in motion the processes required for commercial utilization. Teaming up with international research institutes and technology organizations would also help the industry upgrade its technology and process, thereby producing high quality products. Bestowing strategic importance on an industry based on renewable resources would encourage the chemical industry to bring about radical changes in the way it functions.
The Indian chemical industry is energy intensive and consumes enormous amounts of energy. Many of the chemical units in our country are equipped to handle energy efficiently. However, there are a few chemical companies that have made groundbreaking developments and have become examples of high energy efficiency. Taking cue from these companies, others should also work towards energy efficiency improvement, energy capture and recycle and process intensification.
A database with information about energy standards employed by companies, including the technology used to create energy efficient products should be made available. Access to these benchmarks along with budgetary support would encourage companies to become more energy efficient. Companies should be made to publish their energy consumption figures. This move involving evaluation, comparison and dissemination would make chemical companies work towards efficient energy utilization. Research centres dedicated to developing energy efficiency technologies would further support the industry’s efforts in preserving energy and the environment.
The impact of chemicals on human, plants, animal life and on precious resources has been a source of concern for years. Many countries have legislations to restrict the adverse impact of chemicals on life and resources. India should also formulate similar regulations and methods that would ensure chemical safety- right from manufacture to distribution to end-use, to recycle or dispose. Government support is imperative for the industry. The chemical industry in collaboration with the government will be able to create a set of effective legislations.
The REACH legislation, adopted by the European Union, aims to protect human life and environment from the harmful effects of chemicals. Other countries like Japan, China, Canada, Australia etc. are enacting similar legislations to further their position in the global market.
India also has certain legislations governing the chemical industry. These regulations include Environment Protection Act, Factories Act, The Motor Vehicles Act, The Explosives Act, The Disaster Management Act and The CWC Act. However, apart from these regulations India has no legislations pertaining to- creating a national inventory, restrictions on hazardous substances, registering substances, banning of certain substances etc.
These issues need to be addressed in a coherent and scientific manner. The government should help establish a centralized agency that would create and establish effective chemical legislations. The need of the hour is to create a logical and comprehensive piece of legislation and to promote safe and efficient use of chemicals in India.
