ICC Activity Report For The Year 2007-08
Posted On : 27th May 2007

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Annual General Meeting

The 67th Annual General Meeting of ICC was held on 29 September 2007 at Mumbai. The meeting approved Annual Report of the Executive Committee and Statement of Accounts for the year ended 31 March 2007. The Executive Committee was reconstituted. At the AGM admission of 9 Ordinary members and 13 Associate members were ratified. The list of Executive Committee members is given in Annexure.

ICC Awards Presentation Function

Following the AGM, ICC Awards Presentation Function was held on 29 September 2007. Mr. Arun Ramanathan, I.A.S., Secretary, Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Government of India was the Chief Guest at the function and presented the Awards for the year 2005-06 to the Winners as below:

I.C.C. Acharya P.C. Ray Award for Development of Indigenous Technology:
HIGH POLYMER LABS LIMITED

I.C.C. Award for Excellence in Management of Health / Safety / Environment:
DIVI'S LABORATORIES LIMITED

I.C.C. Award for Excellence in Energy Conservation and Management:
INDIAN RAYON (Unit of Aditya Birla Nuvo Ltd) and EXCEL INDUSTRIES LIMITED

I.C.C. Award for Water Resource Management in Chemical Industry:
RELIANCE INDUSTRIES LIMITED

I.C.C. Award for Social Responsibility:
TATA CHEMICALS LTD.and Special Citation to
THE GODAVARI SUGAR MILLS LTD.

I.C.C. Aditya Birla Award for Best Responsible Care Committed Company:
TATA CHEMICALS LTD.

AEGIS LOGISTICS LTD. was granted permission to use the Responsible Care Logo and a replica of the RC logo was presented to the company at the function.

Mr. Ramanathan congratulated Award winners and ICC for the various activities being undertaken for the benefit of Indian chemical industry.

Twentieth Dr. G. P. Kane Trust Lecture Series
Dr. G. P. Kane Trust Lecture was delivered by Prof. J. B. Joshi, Director, Mumbai University Institute of Chemical Technology (MUICT) immediately after the Awards were presented. The theme of Prof. Joshi's lecture was "Creation of National Wealth Through Academia - Industry Partnership". He dwelt on Status of Academic Organizations, Industrial Organizations, Role of Industry and Academia Institutions, Research Benchmarking of Chemical Engineering / Technology. He also dealt with few case studies and work being conducted by MUICT for the benefit of the industry.

Fifteenth Acharya P. C. Ray Memorial Lecture
Acharya P. C. Ray Memorial Lecture was delivered by Mr. Swapan Bhowmik, Managing Director, Haldia Petrochemicals Ltd. on 12 October 2007 at Kolkata. In his address, Mr. Bhowmik indicated the growth of polymers in India which is much below the world average. With the increase in the per capita income and middle class in India, the demand of polymer is to grow substantially, requiring per capita consumption to double in coming years. He projected growth of Indian petrochemical industry in the context of world scenario and dwelt on the handicap being faced by the industry.

Thirty-first Rajmitra B. D. Amin Memorial Lecture
Rajmitra B. D. Amin Memorial Lecture was delivered by Mr. D. Rajagopalan, IAS, Addl. Chief Secretary, Government of Gujarat on 20 September 2007 at Baroda. He spoke on "Gujarat - Future Prospects". He indicated rapid industrial development in Gujarat backed by growth of infrastructure and resources available in the state. He mentioned of the SEZs cleared by Government of India in Gujarat 60% are devoted to chemical and petrochemical sector. Besides PCPIR in Dahej is under planning, Mr. Rajagopalan predicted tremendous growth in chemical industry in Gujarat due to present scenario and the developments to come. Before the speech by Mr. Rajagopalan, Mr. Chirayu Amin, Chairman & Managing Director, ALEMBIC LTD and grandson of Rajmitra B. D. Amin presented the vision and foresight of Rajmitra Amin. In 1930s Rajmitra Amin had programmed about use of Alcohol in Petrol, extensive use of agro based chemical industry and quality assurance program.

Certificate of Origin
The Council is authorized by Government of India to issue Certificate of Origin from all four regions i.e. West, South, East & North and the activity is now progressing very well. During the current year, all the Regional Offices of the Council have geared themselves and provided quick services to its members and it is hoped that many more members will come forward and avail the opportunity.
For the year ended 31 March 2008 the income at Mumbai Office for issue of Certificate of Origin is of the order of Rs. 1.80 lakhs.

Data Bank on Chemicals
A Data Bank on chemicals set up in collaboration with Centre for Monitoring Indian Economy is under operation in ICC since April 2006. The data bank is equipped to provide data on chemicals like production, consumption, exports, list of companies manufacturing chemicals and economic data etc. Members are requested to use this facility as much as possible.

ICC Website
ICC's website (www.icmaindia.com) was operational in its revamped form since February 2003 which has become popular. The information about Seminars/ Workshops / Important announcements of Government are being uploaded on the site and site has become source of information to the members. It has been decided to invite Banner advertisements on ICC's Website. Interested members may contact the ICC Secretariat for further details.

Monthly Journal - CHEMICAL NEWS
Thanks to the Editor and the team, the journal is undergoing transformation and now features companies and their leaders who are leaving their footprints on the current history of India's chemical industry. Some of the companies featured in the recent issues are Bilag Industries Ltd, Excel Cropcare Ltd, Godrej Industries Ltd, Gujarat State Fertilizers & Chemicals Ltd, Jacobs H&G Ltd, Shasun Chemicals & Drugs Ltd, etc. Members are requested to come forward and write to the Secretariat for featuring their companies in the forthcoming issues and also consider providing advertisement support for the journal. The CHEMICAL NEWS invites the member-companies to send their press briefings for publication besides their employees to contribute articles in the journal. Keeping in mind our members operate globally more than ever before, the need to be aware of global happenings and global pricing trends the ICC entered into Memorandum of Understanding with ICIS. ICIS is the world's largest information provider for the chemical and oil industry.
Every issue starting from August 2006, CHEMICAL NEWS published ICIS price trends for commodity chemicals and an in-depth analysis for one of the derivatives.

Interaction between Indian Chemical Council and Government of India / State Governments

  • ICC Members interacted with Ms. Harmeet S. Singh, Director, DCPC, Ministry of Chemicals & Fertilizers, Government of India on 3 May 2007 at Mumbai concerning import duty reduction on various chemicals to be included in Asean FTA which once signed will supersede the FTA's signed with Thailand and Singapore. The chemicals have been clustered under Negative List, Sensitive List, Normal Track 1 and Track 2 for reduction of duty over next 10 years. Ministry of Chemicals & Fertilizers will discuss with Ministry of Commerce who are discussing on behalf of Government of India for Asean FTA.
  • ICC participated in launching of PCPIR policy by Hon. Minister for Chemicals & Fertilizers, Mr. Ram Vilas Paswan on 8 May 2007 at New Delhi. The Round Table organized by FICCI, ICC and Ministry of Chemicals and Fertilizers spelt out policy initiatives by Government of India for creation of PCPIRs at Dahej, Mangalore, Paradeep, Haldia and Vizag. Presentations were made by State Governments of Andhra Pradesh, Gujarat, Orissa, Karnataka and Tamil Nadu. Developers like Vopak and Antwerp Port Authority also made presentations on the facilities created by them in Antwerp and Jurong Island Singapore.
  • ICC delegation consisting of President, Mr. D. Dutta Gupta, Past Presidents, Mr. D. C. Mehta, Mr. S. N. Singh, Mr. S. Subramanian, Mr. R. M. Pandia, Mr. Ravi Kapoor, Chairman - Gujarat Chapter, Director General and Secretary General met Mr. Arun Ramanathan, new Secretary - DCPC on 21 June 2007 at New Delhi and welcomed him to the Ministry and briefed him about activities of the Council and current status of the chemical industry and general issues which are short term nature such as : rupee appreciation has made the exports unattractive, inverted duty structure (duty on fuels being higher than finished products), delays in levying anti dumping duties, impact of FTAs, poor quality of power, etc. The Secretary was also briefed about role of ICC in creating awareness on international treaties such as REACH, CWC, POP, PIC etc. Certain specific issues regarding Ammonia and Urea (price and availability) were also brought to his notice.
    Subsequently, Secretary - Chemicals & Petrochemicals conveyed another meeting on 5 September 2007 which was attended by Alkali Manufacturers Association of India, Pesticides Manufacturers & Formulators Association of India, Dyestuff Manufacturers Association besides Indian Chemical Council. The meeting dwelt in detail the status of various sub-sectors of industry besides REACh, International Treaties and Carbon Trading.
  • ICC delegation led by President attended meeting convened by Mr. Arun Ramanathan, IAS, Secretary, DCPC, Government of India on 19 September 2007 at Delhi. The meeting was also attended by other Associations viz. Alkali Manufacturers Association of India, Pesticides Manufacturers & Formulators Association of India, Dyestuffs Manufacturers Association of India, CHEMEXCIL etc. In course of the meeting, presentations were made with regard to status of Inorganic chemical industry, Organic chemical industry, Speciality chemical industry, Dyestuff industry besides status on International Treaties and REACh. The problems affecting the industry like infrastructure, feedstock, electricity, human resource were discussed. Secretary also indicated having taken steps for problems of Furnace Oil being covered under "Solvent Raffinate and Slop Order 2000". Secretary assured that such interaction with industry will take place once in two months. Industry applauded the approach of Secretary in knowing problems of the industry .
  • Government has modified "Solvent, Raffinate and Slop Order 2000" and included Benzene and Toluene under its purview. Council has taken up strongly for removal of furnace oil / LDO from this Order and has also represented for removal of Benzene and Toluene from the applicability of this order as this result in harassment of genuine users. Mr. S. K. Hazra, Chairman, Safety, Health and Environment Expert Committee and Mr. D. P. Misra, Director General, ICC met Mr. Ajay Tyagi, Jt. Secretary - Petroleum, Government of India on 12 September 2006 and conveyed industry's strong reviews about this Order. Thereafter on 15 September 2006 Mr. Hazra and Mr. Misra called on Mr. K. P. Bakshi, Secretary - Food & Civil Supplies, Government of Maharashtra and conveyed industry's view to him.
  • In response to ICC's appeal, Government of India has deleted Benzene and Toluene from the purview of the above order. The issue of removing furnace oil and LDO from the above order is under discussion. Continuous representations have been made both the Central and Maharashtra Governments regarding review of Solvent Order 2000 especially deletion of Furnace oil and LDO. ICC delegation met Ms. Malini Shankar, Development Commissioner - Industries, Government of Maharashtra with regards to above on 14 August 2007. ICC informed Ms. Sankar that users of furnace oil and LDO in Maharashtra state are facing tremendous problems for getting registration / license from the Authorities and that their applications are pending for considerable time. In view of the urgent statutory requirement of registration / license for purchase of furnace oil and LDO, ICC delegation requested issue of same immediately and grant licenses / registration already pending. As desired by Ms. Sankar, a list of member-companies from Maharashtra whose applications are pending was sent.
    Press Release was issued recommending that the order should be completely withdrawn or Furnace Oil and LDO should be withdrawn from the ambit of this order. Subsequently in the month of November 2007 Government has removed LDO from applicability of "Solvent, Raffinate and Slop Order 2000".
  • ICC delegation comprising of Mr. D. Dutta Gupta, Mr. R. M. Pandia, Mr. S. K. Hazra, Mr. S. K. Agrawal and Director General met Mr. K. C. Misra, Joint Secretary, Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers, Government of India on 9 January 2008 and made presentation by Sub Groups created for Infrastructure, FTAs and R&D. The preparation of reports of the other Sub Groups are in progress.
  • ICC, at the request of LAB manufacturers, had drawn attention of the Ministry of Chemicals & Fertilizers about anomaly in availability of feedstock, Kerosene, return of Kerosene after extraction of Paraffin and pricing. DCPC has been requested to take up the issue with Ministry of Petroleum, Commerce and Revenue.
  • ICC had written letter to Hon'ble Finance Minister, Minister for Commerce & Industry, Secretary - DCPC, Dy. Chairman - Planning Commission, Cabinet Secretary and Principal Secretary to the Prime Minister regarding Bhopal Project. It was pointed out to the Government that even after two decades, no significant progress has been made in respect of remediation of the pesticide plant site in Bhopal, following the extremely unfortunate accident in 1984. It was informed that ICC is endorsing initiative of Mr. Ratan Tata, Chairman, Investment Commission for creating Site Remediation Fund or Trust and that this will be right step for creating proper environment for attracting international investors as an anchor unit for PCPIR.
  • Representation for de-reservation of Barium Carbonate from small scale sector has been submitted to the Ministry. The industry is suffering due to imports from China where large scale plants employing advanced technology are operating. In view of small capacities in India the manufacturers are not able to compete even though India boasts about large baryte reserve in Andhra Pradesh.

TRADE & BUSINESS DEVELOPMENT

  • The Committee was chaired by Mr. Ravi Goenka, Managing Director, Laxmi Organic Industries Ltd. Mr. R. K. Jain was the Co-chairman of the Committee.
  • ICC submitted its Pre-Budget Memorandum for the year 2008-2009 to the Government of India.
  • ICC delegation consisting of Mr. S. N. Singh, Mr. S. K. Agrawal, Mr. R. R. Gokhale, Mr. D. Sharma and Mr. R. Balasubramaniyan met Mr. S. K. Singhal, Chairman, Central Board of Excise & Customs and submitted Pre-Budget recommendations. Following recommendations were made on behalf of the industry:

Peak customs duty
In 2007-08 Budget, chemicals and plastics were specifically singled out to reduce duty of 7.5% as against 10% for others. This duty level is equivalent to Asean duty levels. Hence we request that no further reduction should be done for chemical industry.

Duty on building blocks
Duty on building blocks listed below be reduced from 5% or 2% to 1%: Benzene(29022000), Toluene(29023000), Orthoxylene(29024100), Paraxylene (29024300), Metaxylene (29024200), Mixed Xylene (29024400), Cumene (29027000), Denatured Ethyl Alcohol (22072000), Ethylene (29012100), Propylene (29012200), Iso Butylene (29012300) Hexene (29021900), Propylene Oligomers [Propylene Trimer/ Tetramer] (27101990), Styrene (29025000), Ethyl Benzene (29026000), Ethylene Dichloride (29031500)

Duty on fuels
Import Duty on all kinds of fuels like Furnace Oil, LSHS, Naphtha, HSD, non-coking Coal, LNG, Kerosene etc. should be reduced from current level of 10% to 1% level.

Reduction of Excise Duty on Molasses for Manufacture of Denatured Spirit (22072000)
Molasses is subject to excise duty at the specific rate of Rs. 750/- per tonne (30% to 50%) whereas denatured industrial alcohol manufactured out of it is subject to duty @16% ad valorem. It is proposed that excise duty on molasses may be reduced to 16% ad valorem for the manufacture of denatured spirit (22072000), which is used for manufacture of chemicals. Central Excise Duty of Rs.750/-per tone on molasses can be retained for manufacture of Rectified Spirit for potable purposes.

  • Trade & Business Development Expert Committee during its meeting on 12 March 2008 reviewed the features of the Union Budget presented in the Parliament and noted that some of the recommendations made by ICC has been approved as follows :
    1. No change in the peak custom duty
    2. Reduction in the CST by 1%
    3. Reduction in the Excise Duty
    4. Reduction in the duty on Crude Sulphur
  • Government of India had announced an export package comprising of enhanced DEPB and Drawback rates to help Indian exporters which have suffered due to Rupee appreciation. The package was announced to neutralize the adverse impact of Rupee appreciation on Indian exports in 9 sectors i.e. Textiles, Readymade Garments, Leather products, Handicrafts, Engineering products, Processed Agricultural products, Marine products, Sports Goods and Toys. Further, all exporters from the SME sector will be eligible for increased Drawback rates under the package. Chemical industry whose exports are substantial have been excluded. DCPC has been requested to include chemical industry for the Relief Package.
  • The Council has developed good rapport with bureaucrats in Delhi as well as State Government officials especially, Maharashtra, Gujarat, West Bengal, Tamilnadu, Andhra Pradesh etc.
  • During the year, Council made several representations to the Central Government and State Governments.
  • Memorandum of Understanding with overseas associations and agencies:

    1. ICC signed Partnership Agreement with Access Intelligence LLC (Chemical Week). The Agreement has been designed to leverage the combined strengths of both parties to produce, manage and implement a Conference entitled the 2008 Indian Chemical Industry Outlook to be held on 15 - 16 April 2008 in Mumbai.
    2. Mr. D. Dutta Gupta, President and Mr. R. R. Gokhale, Secretary General had interaction with Mr. Abdullah S. Bin Zaid Alhagbani, Secretary General and Mr. Gaurav Paul, Promotion Manager, Gulf Petrochemicals & Chemicals Association (GPCA) in Dubai on 7 June 2007. ICC had signed MoU with GPCA for exchanging information, promoting and Responsible Care initiative, safety, health & environment, arranging common seminars, etc. Secretary General - GPCA was invited to Mumbai for meeting members of ICC.
    3. Mr. D. Dutta Gupta, President and Mr. D. P. Misra, Director General attended the AGM of European Association of Chemical Distributors (FECC) which was held on 9 June 2007 at Paris. ICC had entered into MoU with FECC for promoting Responsible Care, exchanging information etc. President and Director General had useful discussions with Mr. Hendrik Abma, Director General and Mr. Alan Looney, President, FECC covering various areas of concerns including impact of REACh on the chemical industry.
    4. Mr. D. P. Misra, Director General met the top management of CIA at London on 12 June 2007. They included Steve Elliot, CEO, Neil Harvey and Tim Jessel, Head of REACh Ready. The possibility of collaboration between CIA and ICC was discussed. CIA has formed "REACh Ready" group with full time executives to help the members to comply with REACh. CIA will send their offer to ICC about the modalities of co-operation for REACh.
    5. In the recent past ICC had entered into MoUs with overseas chemical associations such as ASEAN Chemical Industries Club (ACIC), National Association of Chemical Distributors (NACD), Singapore Chemical Industry Council (SCIC), Associquim Sincoquim and now European Association of Chemical Distributors (FECC) and Gulf Petrochemicals and Chemicals Association (GPCA). While signing of MoUs is a good beginning, the deriving benefits out of that is totally dependent on members. Therefore members are requested to use this vista for developing trade between these countries. For any assistance members are advised to get in touch with ICC.
    6. ICC, CCPS and IChemE signed MoU on 8 December 2007 at Mumbai for setting up of Indian Centre for Process Safety (ICPS).
    7. Mr. D. Dutta Gupta, President and Mr. D. P. Misra, Director General participated in the 12th Meeting of AMEICC Working Group on Chemical Industry on 7-8 August 2007 at Manila, Philippines. Mr. Misra made presentation on Status of Indian Petrochemical Industry. Participation in the above meeting helped ICC to interact with other associations of Asean countries and Japan besides knowing what is happening with regards to REACh and GHS.

    Visit of Delegations

    1. " Meeting with Mr. Julian Ho, Executive Director, Singapore Economic Development Board (SEDB) was organized on 23 April 2007 at Mumbai. The main agenda for the meeting was to provide an overview of chemical industry landscape in Singapore and also explore potential Business and investment opportunities in Singapore and Asia Pacific for Indian Chemical Companies that are looking to expand in International market.
    2. " Delegates of Chicago Climate Exchange (CCX) interacted with members of Technology & Energy Expert Committee on 18 May 2007 at Mumbai about their organization and carbon trading activities they are involved in.

    Sponsorship of Events

    1. World Chlorine Conference took place from 22 - 29 October 2007 in New Delhi. The program included workshop on 24 October 2007 which was hosted by Alkali Manufacturers Association of India and supported by ICC. The program included presentations on the items like bulk transportation of liquid chlorine, chlorine safety and health aspects, chlorination of drinking water etc. The workshop had faculties from both India and abroad.
      ICC was invited to WCC General Assembly on 26 October 2007 which had discussion on major issues from national / regional associations, Euro Chlor initiatives on REACh, challenges and plans of WCC on safety, science and sustainability. The program was attended by governing body, members of WCC, Euro Chlor and ICC representatives. This was unique opportunity of ICC working with its affiliate member - Alkali Manufacturers Association of India.
    2. ICC supported "Chemspec India 2007" the International Exhibition and Conference for fine and speciality chemicals organized by Chemical Weekly which was held on 18 - 19 April 2007 in Mumbai. ICC also decided to endorse and support "Chemspec India 2008" which is to be held in April 2008 at Mumbai.
    3. The Executive Committee of ICC approved the proposal received from CCPIT Sub-Council of Chemical Industry, China requesting ICC to be its agent in India for "9th China International Chemical Industry Fair" which is taking place on 23-25 April 2008 at Shanghai, China.
    4. ICC decided to sponsor INDIA CHEM 2008 (5th International Exhibition & Conference) organized by FICCI and Department of Chemicals & Petrochemicals, Government of India which will be held on 20 - 22 October 2008 in Mumbai.

    Registration, Evaluation, Authorization of Chemicals (REACh) legislation of European Union

    1. European Union(which consists of countries Cyprus, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, UK, Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia) has come out with a new legislation which is now known as REACh (Registration, Evaluation, Authorization of Chemicals). This legislation deals with in

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