Q. No.(1) What are Chemicals & Petrochemicals?
Answer No. (1) A chemical substance is a form of matter having constant chemical composition and characteristic properties. Petrochemicals are chemical products obtained from petroleum by refining. They are also derived from other fossil fuels such as coal or natural gas, and renewable sources such as maize, palm fruit, or sugar cane.
Q. No.(2) What are the mandatory standards for the chemical industry?
Answer No. (2) The chemical industry is subject to various mandatory standards to ensure regulatory compliance. These standards include ISO certifications, environmental standards such as ISO 14001, and safety standards for chemical production facilities.
Q. No.(3) What is sustainable chemistry?
Answer No. (3) Sustainable chemistry involves the design, development, and implementation of chemical products and processes to reduce or eliminate the use and generation of substances hazardous to human health and the environment.
Q. No.(4) What specific hazardous chemicals, due to international conventions, require compulsory licensing for manufacturing in India, despite the overall liberalized policy for the chemicals sector?
Answer No. (4) In Chemicals sector, 100% FDI in India is allowed under the automatic route (except in the case of certain hazardous chemicals). Manufacture of most chemical products, interalia, covering organic/inorganic, dyestuffs & pesticides is de-licensed. The entrepreneurs need to submit only Industries Entrepreneur Memorandum (IEM) with the Department of Industrial Policy & Promotion provided location of the project falls outside standard urban area limits of metropolitan cities and municipal cities. However, the following items are still covered in the compulsory licensing list because of their hazardous nature as required by international conventions.
1. Hydrocyanic acid & its derivatives
2. Phosgene & its derivatives
3.lsocynates & di - isocynates of hydrocarbons.
Q. No.(5) What are the international conventions related to the chemical industry?
Answer No. (5) The Department of Chemicals and Petrochemicals is involved in various international conventions related to the chemical industry like Minamata Convention, OPCW, Rotterdam Convention, Stockholm Convention.
Q.6: What are the Petroleum, Chemical and Petrochemical Investment Region(s) (PCPIR)?
Answer No. (6): Government of India notified the PCPIR Policy, 2007 to attract investment and for generation of employment in the Petroleum, Chemical and Petrochemical Investment Region(s) (PCPIR). The PCPIR promotes the Chemical and Petrochemical sectors in an integrated and environmental friendly manner on a large scale. PCPIRs are conceptualized in cluster based approach with high-class common infrastructure and support services to provide a competitive environment conducive for setting up businesses.
PCPIR Policy, 2007 envisages substantial investments by Anchor Tenants in the Refinery and Petrochemical Cracker segments which is anticipated to lead to other investments in the chemical and petrochemical sector including downstream sectors and ancillary investments. The policy sought to provide a conducive and competent environment for setting up businesses through creation of excellent infrastructure, common utilities and efficient logistics, including ports and storage facilities.
Q. No. 7: What are the objectives with which the PCPIRs are being set up in the country?
Answer No. (7): The concept of Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) is to promote the Petroleum, Chemical and Petrochemical industries in an integrated and environmental friendly manner and to boost augmentation of exports and generation of employment through these manufacturing hubs by co-siting of anchor unit and downstream industries.
Q. No. 8: How many Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) have been approved?
Answer No. 8: So far, three Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) have been approved in the States of Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej), Odisha (Paradeep) to promote investment and industrial development in these sectors under the PCPIR Policy, 2007.
Q. No. 9: What is the role of The Department of Chemicals and Petrochemicals (DCPC) in PCPIR.
Answer No. 9: The Department of Chemicals and Petrochemicals (DCPC) is the nodal Department of the Government of India for the PCPIRs. A High Powered Committee constituted by the Government of India under the Chairmanship of the Cabinet Secretary will scrutinize the applications of the State Governments for setting up the PCPIRs and subsequently monitors the progress of implementation.
Q. No. 10: What is the role of Central Government in implementation of existing PCPIR policy?
Answer No. 10:
- Considers the proposals for establishment of PCPIRs and grant approval.
- High Powered Committee ensures necessary coordination among central ministries and state government, monitors the progress of environmental and other clearances and development of PCPIR.
- Ensures availability of external physical infrastructure linkages to the PCPIR including Rail, Road (National Highways), Ports, Airports, and Telecom through Public Private Partnerships to the extent possible.
- Provide the necessary viability gap funding through existing schemes.
- Wherever necessary, requisite budgetary provisions for creation of these linkages through the public sector.
Q. No. 11: What is the role of State Government in implementation of existing PCPIR policy?
Answer No. 11: State Government prepares the proposal and seek approval:
- notify the PCPIR area under the relevant Act
- acquire/ assist in acquiring the land necessary for setting up of the infrastructure, processing and non-processing areas.
- responsible for providing/facilitating power connectivity, water requirement, road connectivity, sewerage and effluent treatment linkages.
- appropriate infrastructure to address the health, safety and environmental concerns.
- constitute a Management Board for development and management of the PCPIR.
Question No. 12: What are the major actions being taken by the Department to ensure quality of chemicals?
Answer No. 12 : BIS Standards for majority of Chemicals are voluntary in nature. Sometimes, inferior, spurious and also hazardous chemicals are supplied by local manufacturer or imported into India, which do not meet the quality parameters laid down by BIS Standard. To address this issue, DCPC initiated an exercise to make Standards as mandatory so that both domestic manufacturers and overseas suppliers meet the BIS parameters in the public interest or for the protection of human, animal or plant health, safety of the environment, or prevention of unfair trade practices, or national security, under Section 16 of BIS Act, 2016. Accordingly, the Standards are being made mandatory and Quality Control Orders (QCOs) are being notified in the Gazette of India. So far, QCOs for 61 Chemicals & Petrochemicals have been notified in the Gazette, for making BIS Standards as mandatory, under Section 16 of BIS Act 2016.
Question No. 13: What are the growth drivers for the chemical sector ?
Answer No. 13: The important growth drivers for the sector are as follows:
- Availability of skilled manpower at competitive rate
- Demographic dividend and disposable income
- Increasing demand for Specialty Chemicals
- Production and Consumption shift to India
- Low per capita consumption
- Shift in consumer preferences leading to new product development
Question 14. What is the Prior Informed Consent (PIC) Procedure?
Answer No. 14: The PIC procedure, along with information exchange, is one of the key provisions of the Rotterdam Convention. The PIC procedure applies to all the chemicals listed in Annex III of the Convention.
The PIC procedure is a mechanism for formally obtaining and disseminating the decisions of importing Parties as to whether they wish to receive future shipments of those chemicals listed in Annex III of the Convention and for ensuring compliance with these decisions by exporting Parties.
Question 15. How many chemicals are on the list contained in Annex III of the Rotterdam Convention and subject to the PIC procedure?
Answer No. 15: There are a total of 52 chemicals listed in Annex III, 35 pesticides (including 3 severely hazardous pesticide formulations), 16 industrial chemicals, and 1 chemical in both the pesticide and the industrial chemical categories.
