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Alkali Bulletin Alkali Bulletin (For Restricted Circulation) August 2020 Volume XLII No. 08
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Page 1: Alkali Bulletinama-india.org/wp-content/uploads/2020/07/AMAI-Alkali...Alkali Manufacturers Association of India (AMAI) has also set up a Chlorine Emergency Response Network (CERN).

Alkali BulletinAlkali Bulletin(For Restricted Circulation) August 2020Volume XLII No. 08

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Dear Reader,

Prime Minister Narendra Modi, in his Independence Day address from the ramparts of Red Fort, extolled the resilience of the Indian industry that had scaled up production of PPEs, masks and ventilators even as most parts of the country were affected by the covid-19 pandemic. From being heavily dependent on imports to reaching self-sufficiency in a matter of just a few months was exemplary and showed our ability to adapt and excel, he said. He once again stressed on the need to be Vocal for Local and to produce for the global market.

The Indian alkali industry is an example of Aatmanirbharta or achieving Self-sufficiency. The chlor-alkali industry has always been adding capacities ahead of demand and soda ash capacities have kept pace with demand.

The government convened meetings to discuss two major issues: (a) Production Linked Incentive (PLI) Scheme for the chemical industry and (b) review of measures to curtail non-essential imports. The PLI scheme is expected to be a substitute for the Merchandise Exports from India Scheme (MEIS) which is being discontinued following its challenge at WTO. The MEIS was also found to yield less than expected benefits in the last five years of its operation. The PLI Scheme was first introduced for the electronics sector and proved beneficial in ramping up production, enabling India to become a major manufacturing hub for mobile phones. The scheme was extended to the pharmaceutical sector to provide impetus for manufacturing bulk drugs and APIs. More sectors are to be covered under the PLI Scheme. The Department of Chemicals & Petrochemicals (DCPC) invited inputs for the PLI Scheme that offers dual support of an incentive for scaling up production along with higher duty protection. The list of chemicals to be included in the scheme are being examined by DCPC for recommending to the Department of Commerce (DoC) who will announce the PLI Scheme.

DCPC also convened meetings to discuss a roadmap for Aatmanirbhar Bharat for chemicals and measures to curb non-essential imports. The Department is drawing up plans to extend support for import substitution of chemicals. The assessment will be based on the quantity of chemicals imports and the countries on which India depends for sourcing these chemicals.

AMAI’s submission to the government conveyed the need to curb imports of those chemicals where there is adequate domestic capacity. The Association also suggested introducing a scheme to incentivise capacity addition for those products for which investments are lacking and where substantial demand is met through imports. Attracting investments for creating capacities leading to reduction in imports should be a priority if we have to become truly Aatmanirbhar or self-reliant.

K. Srinivasan Secretary General

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India's Largest composite Resin (FRP) Manufacturer offering a Range* of specialized Chemical Resistant Vinyl Ester Resins for the Chlor Alkali Industry

CREST COMPOSITES & PLASTICS PVT. LTD.

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For more information Survey No: 609, Village: Shetra,Write to us at : [email protected] Tal & Dist. : Kheda - 387 560or call us at :+91-7575000925 / 7575002216 Gujarat - India

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Providing Time & Performance Tested solution to Chlor Alkali Industry Since 1995

● Chemical Storage Tanks ● Chlorine Cell covers & Collectors

● Fume Ducts & Cover ● Chemical Piping System

*Vinyl Ester Range - ● Bisphenol ● Epoxy Novalac ● Fire Retardant ● Bisphenol -A- Fumarate

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I. ARTICLES & FEATURES

Post Beirut blast, Alkali Industry tightens Safety Norms 1

Gujarat Industrial Policy 2020 – A Summary 2

COVID-19: Industry impacts and recovery prospects – musings - Mr. Ravi Raghavan, Editor, Chemical Weekly 4

How Thermal Power Plants can Save 80% of Water? - Dr. Jagjit Singh Sehra, President, CST Associates 6

Just like Sikkim became 100% Organic, Ladakh to become 'Carbon-Neutral': PM Modi 9

A ‘GENIE’ in your truck - Commercial vehicle makers now provide connected trucking technologies 11

Jal Jeevan Mission - An Update 12

Beacon-Messages for Manufacturing Personnel 13

II. NEWS DIGEST General

Asean agrees to review trade pact with India – concerns over China misusing treaty to push goods, fewer benefits for domestic exporters 15

Hindalco achieves aluminium industry first with red mud utilisation 15

Publish Environment Impact Assessment draft in other Indian languages: Supreme Court 15

EIA receives 2 million comments, Centre directs its own agency to vet 16

India still imports 41 of 96 major items from China 16

Business sentiment hits all-time low since 1991 16

MSME debt restructuring allowed till March 2021 17

‘Balanced trade’: Piyush Goyal wants FTA to be tweaked to lower trade deficit with Japan 17

Start-ups to get priority sector tag as RBI revises lending norms 18

India should focus on protecting economy, says ex-RBI governor Raghuram Rajan 18

PLI scheme to be expanded to AC, furniture, leather sectors as MEIS wound up 18

India may allow low threshold for beneficial owner under the new FDI rule 18

Hit by Covid, govt goes all out to expedite its fresh push for manufacturing in ‘champion sectors’ 19

Environment Ministry dithered on decision to close LG Polymers plant in Vishakapatnam 20

Economy bouncing back with exports, power consumption recovering, says Goyal 20

India looks to screen for re-routed Chinese good 21

Chemicals and Petrochemicals

COVID-induced consumption drop has pushed PVC industry to 2016-17 levels‘ 21

Chemical Process Piping bags orders worth around Rs. 30-crore during lockdown 22

CONTENTS

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

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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.

Chemical Industry Strengthens Ammonium Nitrate Handling Norms 23

Govt tightens norms for import of certain chemicals 23

Post Beirut blast, 700 tonnes of ammonium nitrate stored near Chennai set the alarm bells ringing 23

Transport Ministry set to allow use of hydrogen enriched CNG as auto fuel 24

Member Units

UPL opens global R&D hub in US 24

Grasim Industries signs LLP agreement with Cleanmax to set up wind power plant in Karnataka 24

Punjab govt. to divest stake in Punjab Alkalies & Chemicals 25

Reliance overtakes Exxon to become world‘s No.2 energy firm 25

III. NOTIFICATIONS/PRESS RELEASES/ MEMORANDA MTR Initiation Notification No. 09/2020 dated 03.08.2020 issued by DGTR, DoC, Ministry of Commerce and Industry for change of name of producer/exporter from Korea RP regarding ADD imposed on imports of (PVC) Paste Emulsion Resin" originating in or exported from Korea RP, Taiwan, China PR, Malaysia, Thailand, Russia, and EU 27

MTR Initiation Notification No. 02/2020 dated 05.08.2020 issued by DGTR, DoC, Ministry of Commerce and Industry for change of name of producer/exporter from Korea RP regarding ADD imposed on imports of (PVC) Paste Emulsion Resin" originating in or exported from Korea RP, Taiwan, China PR, Malaysia, Thailand, Russia, and EU 27

Draft Environment Impact Assessment Notification (EIA), 2020 - S.O 1199(E)- dated 23/03/2020 as Updated on 16/08/2020 by Ministry of Environment, Forest and Climate Change 27

Anti-Dumping Original Investigation concerning imports of “Soda Ash” from Turkey and USA 27 » Notification dated 21.08.2020 issued by Ministry of Commerce and Industry, Department of Commerce,

Directorate General of Trade Remedies regarding Preliminary Findings in the matter of anti-dumping investigation concerninig imports of “Soda Ash” originating in or exported from Turkey and USA

» Notification dated 28.08.2020 issued by Ministry of Commerce and Industry, Department of Commerce, Directorate General of Trade Remedies regarding Anti-Dumping Original Investigation concerning imports of “Soda Ash” from Turkey and USA-Initiated on 22/1/2020.

Customs Notification No. 25/2020 dated 17.08.2020 issued by Ministry of Finance (Department of Revenue) regarding Continuation of Anti dumping Duty on Import of Caustic Soda from China PR and Korea RP 28

IV. UPCOMING SEMINARS/CONFERENCES/WORKSHOPSAMAI is Endorsement Partner to World Chlor-Alkali Virtual Conference to be held on 21-22 October 2020, by ICIS and Tecnon Orbichem 31

AMAI Partners Virtual Expo & Conference 2020 being organised by EveryThing About Water on 3-5, December 2020 as 'Supporting Association' 32

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The chemical manufacturing industry is bracing up for enhanced supervision and handling norms with regard to substances that come close to explosive grade.

Chemical manufacturers are expecting the government to issue stricter norms for handling of ‘ammonium nitrate (AN),’ the explosive chemical that led to a mini nuclear-like blast in Beirut recently. Even handling of phosphorous, a chemical used for manufacturing of matchsticks and fire crackers, is being critically evaluated, sources said.

The enhanced norms would bring in caps on manufacturing and storage of explosive grade chemicals, especially AN, depending upon the size of the company, industry sources said.

Also, it is likely that transportation of AN within India would require the transporter to give prior information about the movement of the material to the local police, the sources said. At present police escort is not mandatory for the vehicles carrying AN for movement in regular areas.

In 2011, the manufacturing of AN was completely banned after it was revealed that the chemical was used in several

bomb blasts. Subsequently, the Nagpur-based Petroleum and Explosive Safety Organisation (PESO), which comes under the Department For Promotion of Industry and Internal Trade of the Commerce Ministry, came out with basic norms for handling of AN.

As per PESO rules there are certain basic security provisions like boundary-wall of the premises, locking of godowns, guards, escorting of consignments by guards, escorting in sensitive areas, etc. for AN. The sources said AN manufactures are required to file monthly returns, which is supposed to be tallied with the company’s balance-sheet but the supervision requires tightening as not all manufacturers file such monthly returns.

Senior officials in Central and State agencies said that the regular movement, pilferage and theft of AN has always been on the radar of the agencies and more so in the last one year. Because of the Beirut explosion, the process of taking an inventory of unused stocks has also started. The Central Board of Indirect Taxes and Customs has also issued an order to the Customs Department seeking

urgent reports of stocks of AN held up or detained in ports and port-based warehouses across the country. The field staff of the Customs Department has been ordered to verify the stocks, the officials said.

The Alkali Manufacturers Association of India (AMAI) has already asked its members to deal with caution on explosive grade materials.

“Chlor-alkali industry, a key segment of the chemicals sector, deals in some of the hazardous and explosive chemicals such as Chlorine and Hydrogen manufactured as by-products. As a new protocol, Chlor-alkali units are reviewing and tightening measures, including SOPs for verifying the validity of licenses held by their consumers/dealers for products such as Hydrogen and Chlorine and also if the consumers/dealers have adequate facilities/infrastructure for safe handling and storage of these chemicals. AMAI has already set up a Chlorine Emergency Response Network,” said Jayantibhai Patel, President of AMAI.

AMAI further said it will provide training in safe handling and transportation of all chlor-alkali products.

Post Beirut blast, Alkali Industry tightens Safety Norms

Mr. Jayantibhai Patel, President, AMAI

Post Beriut blast, Chlor-alkali units are reviewing and tightening SOPs for verifying the validity of licences held by their consumers/dealers for products such as hydrogen and chlorine and also if the consumers/dealers have adequate facilities/infrastructure for safe handling and storage of these chemicals.

Alkali Manufacturers Association of India (AMAI) has also set up a Chlorine Emergency Response Network (CERN).

"AMAI is now extending the emergency response network to cover hydrochloric acid, hydrogen and other chlor alkali products and will provide training in safe handling and transporation of all chlor-alkali products," said Jayantibhai Patel, President AMAI.

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Gujarat Industrial Policy 2020 – A Summary

Gujarat Industrial Policy 2020 has been announced on 7th August 2020 which is valid for next 5 years.

The following points can be helpful in obtaining subsidies for environment related improvement projects in Gujarat.

1. Energy & Water Conservation:

The assistance will be provided for conducting audits for energy and water conservation as well as for purchase of equipment. The policy will provide assistance upto 75% cost of energy / water audit conducted by a recognized institution / consultant subject to maximum INR 50,000 and 25% of cost of equipment recommended by the auditing authority subject to maximum INR 20 lakhs.

2. Attracting Large/Mega and Ultra-Mega Investments

Large industrial enterprises have an important role in development of industrial ecosystem of an area. Besides generating revenue for the state government and creating local employment, large industries are also beneficial in bringing high-end technologies. They also aid in

generation of ancillary industry around them thereby having a multiplier effect on employment, revenue and overall growth.

Gujarat has been successful in attracting large sector investments in the states. The state had ~51% share (1st Rank in India) of IEMs filed in India in terms of value with a proposed investment of USD 49 Bn in 2019 as per the data released by DPIIT, Government of India. This can be attributed to the proactive business friendly approach of the Gujarat Government focusing on “Minimum Government – Maximum Governance”.

Since GST has been implemented, companies are being compensated as per “Net SGST” on goods sold within the state under the Industrial Policy-2015. There were several complexities in calculation of the tax of goods consumed within the state and procedure was very cumbersome to claim reimbursement every quarter. Hence, Gujarat is the first state to undertake a bold decision to de-link incentives from SGST. In order to bring transparency in calculation, it has been decided to extend incentives based on eligible Fixed Capital investment

(FCI) to large industries for setting up manufacturing operations in the state in the form of capital subsidy. Therefore, the incentive amount will now be more predictable and transparent and thus it will help industry to estimate their future financial projections.

There is no upper ceiling on the amount of incentive to be given to any particular unit. This will help in grounding major investments in the state.

3. Support for Environmental Infrastructure & Initiatives for Sustainable Development

For long term sustainability, industrial development must be based on optimum use of natural resources. The decoupling of environmental degradation from economic growth is another key objective. In order to encourage greater compliance with environmental standards & support development of latest sustainable industrial infrastructure to reduce air and water pollution, the policy will provide incentives for:

• Common Environmental Infrastructure Facilities such as Common Effluent Treatment

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Plant, Waste Management System, augmentation and technology upgradation of existing CETPs, common spray dryer, common multiple effect evaporator etc. at 40% of the project cost upto INR 50 crore. Total support by Government of India and Government of Gujarat shall not exceed 75% of the total fixed capital investment.

• Industries practicing at least 50% waste recovery through Zero Liquid Discharge as certified by GPCB shall be provided upto 50% of capital subsidy on cost of relevant equipment upto INR 75 lakhs.

• Development of Green Estate at 25% of project cost for set up/ relocation / retrofitting of existing polluting industrial units into Green Industrial Estates upto INR 25 crore. The policy will also provide assistance up to 75% of cost for preparation of site master plan for relocation and retrofitting of existing pollution industrial units into Green Industrial Estates upto INR 80 lakhs.

• Common Boiler Project by SPV constituted by minimum 10 MSME’s, at 35% (in case of solid fuel) and 50% (in case of cleaner fuel) of the fixed installation cost upto INR 2 crore.

• Strengthening the Regulation & Environmental Compliance

• Implementation of cleaner production technology in place of existing process such as substitution & optimization of raw material, reduction in water consumption or energy consumption or waste generation, at 35% of cost of Plant & Machinery to MSMEs and 10% of cost of Plant & Machinery to large enterprises with maximum support upto INR 35 lakhs.

• For environment management project with use of clean, Efficient and Innovative Pollution Control Equipment the policy will provide assistance at 25% of cost of Plant & Machinery to MSMEs and 10% of cost of Plant & Machinery to large enterprises with maximum support

upto INR 35 lakhs.• Encouraging “Green Practices &

Environmental Audit to MSMEs” upto 75% of fees of audit services upto INR 50,000

• Installation of online Continuous Stack Emission Monitoring Systems (CEMS) upto 25% of cost of system upto INR 25 lakh

• Industrial Building with green rating under Indian Green Building Council upto 50% of consulting charges upto INR 2.5 lakh

• Encourage existing industries to shift the unit outside the urban agglomerations

• Setting Up of Environment Management System including setting up of Environment Management Laboratory upto 50% of cost of equipment upto 10 lakh

• Purchase of new equipment/system related to safety, occupational health or for environment compliances for common use of industries located in cluster upto 35% of cost of equipment upto 35 lakh.

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COVID-19: Industry impacts and recovery prospects – musings

Ravi Raghavan Editor, Chemical Weekly

The impact of COVID-19 on the chemicals industry has become evident in the last couple of weeks as several global players released their financials for the Q2 2020 – a period wherein the impacts played out in full. The results, more or less on expected lines, speakloud and clear to the extent of demand destruction brought about as a consequence of restrictions on movement of people and goods.

There is, however, considerable uncertainty on whether things will get better in the months ahead. Again, this is not surprising considering no one is sure how the pandemic will play out: Will there be a second (or third) wave? What will be its intensity? Will avaccine be available in time, and at scale, and will it be effective? Many imponderables.

But there is fair consensus that any recovery will not be uniform across the world, or across industries even in one country, or even between businesses of similar type. In 2020, the only major economy likely to post any growth will, in all probability, be China. In contrast, the Indian economy is expected to contract, with the worst-case scenario pegging the decline in the range of 4%. A Hindu growth rate with a sad twist!

Falling numbers in MumbaiHow the pandemic will play out in the months ahead across India should concern us most. And one can read the tea leaves here. It seems very likely that the pandemic will recede in different timelines, and regional economic recovery will be in patches, possibly on the lines of ‘first into the pandemic, first out.’

This seems to be borne out by data coming from Mumbai – among the first

cities to be hit – in the last fortnight. The number of cases detected, the number of patients requiring hospitalisation and the number of mortalities are all thankfully falling. Serological surveys point to a much broader spread of the virus amongst the population than indicated by official numbers – with about 25% of those surveyed in both Mumbai and Delhi seeming to have antibodies that indicate past infection, most likely asymptomatic. In some slum pockets of Mumbai, the fraction testing positive for antibodies against COVID-19 is close to 60% – a level not far from that needed for the much-desired herd immunity, wherein the transmission chain is broken. In more affluent neighbourhoods of the city, the figures are much lower, at about 16%, indicative that social distancing, hand hygiene, and masks are effective in curbing the spread.

All this is good news.

Patchy recovery likely….Coming back to a recovery in the industry we serve.

While most large companies – especially those operating continuous plants – have been running for some time now, operating rates continue to be low, at 60% or thereabouts, on average. This has to do with the constraints on availability of contractual labour, the need to maintains social distancing norms in plants & offices, but more than anything with lack of demand.

Clearly, some segments of the process industry are more adversely impacted than others. While the pharmaceutical, agrochemical and fertiliser sectors have been relatively unscathed here, and

some producers of raw materials for sanitisation and other hygiene products (think surfactants, for example) have benefitted from a spike in demand, offtake for chemicals that go into the textile, leather and plastics industries, for examples, have slumped. Export demand also continues to be muted, as global markets face similar pressures.

Segments of the chemical industry with wide exposure to the automotive industry, for one – such as coatings, catalysts, materials (including polymers) – likely have a long haul to recovery. While there could be a boost to sales of two-wheelers and second-hand vehicles, as consumers opt for personal transport rather than shared ones, a recovery in the all-important four-wheeler and commercial segments is only likely well into 2021.

....as exemplified by PVCThe recovery will also be determined by the macro-economic conditions prevalent in a country. This is evident from an analysis of markets for polyvinyl chloride (PVC), pre- and post-COVID.

PVC is a commodity thermoplastic and the cheapest polymer available. It requires inputs from both the petrochemical industry (ethylene) and the chlor-alkali industry (chlorine), and is the single biggest outlet for chlorine globally (though not in India, but that is another tale). PVC serves diverse markets of which construction and agriculture are two of the most important. In construction, PVC is used mainly for household piping that carries sewage, for sheathing electrical wires & cables, and for making window & door

profiles (not yet popular in India). In agriculture, PVC is most widely used

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for irrigation piping, and though it faces some competition from polyethylene in this end-use, it is able to hold its own because of low price and long life-span.

The impact of COVID-19 on PVC markets in a country will be determined to a significant extent by the contribution of construction and agriculture. In North America, for instance, construction accounts for nearly two-third of PVC demand, while agriculture accounts for a piffling 4%. In India, on the other hand, construction’s share of PVC demand is about 52%, and agriculture accounts for a much more significant 33%. In China, the shares of the two segments are somewhere in between. No wonder PVC demand in North America has shown a significant decline, while Indian demand has been less adversely impacted as agriculture has been more resilient (though it is entering the off-season, i.e. the monsoon).

According to estimates by ICIS, global PVC demand in 2020 is expected to contract by about 2-mt – from 48-mt in 2019 – as against a pre-COVID expected demand growth of about 5-mt. While 2021 will likely see higher demand than 2020, the recovery will not be complete, and 2021 demand will still be below 2019 levels. The recovery will probably be driven by Asia, in general, and China and (to a lesser extent) India, in particular.

Such dynamics will be evident in several other segments of the chemical industry as well.

Results reflect the impactThe financial numbers put out by some global majors for Q2 2020 point to the extent of demand destruction, decline in margins & operating rates and fall in profitability.

German polymer producer, Covestro, with a portfolio of polycarbonate and polyurethanes, has reported a 22.7% year-on-year decline in sales volumes, while sales value fell almost 33% to around €2.2 -bn. The business recorded a net loss of €52-mn, compared to a net profit of €189-mn in the same year-ago period.

At US-headquartered Dow, net sales were $8.4-bn in Q2 2020, down 24% versus the year-ago period, again driven by both price and volume declines. While price declines contributed 14%, primarily reflecting lower global energy prices, volumes declined 9%, and currency fluctuations knocked off another 1%. The only silver lining was the 13% sequential volume improvements in Asia-Pacific, as the economy reopened in China.

In May, the world’s largest chemical company BASF, hinted at what was to come, when releasing preliminary figures pointing to a 12.4% decline in sales to €12,680-mn in Q2 2020.

Opportunity to boost self-relianceCOVID-19 has put the spotlight on the risks of supply chain disruptions in several value chains and underscored the need for derisking them, especially by building strong indigenous capabilities. There have been much discussions on improving India’s selfreliance in chemicals, and some proposals are reportedly under the active consideration of the government to boost local investments. The prescription to enable this to happen is well known and includes dedicated, clearly demarcated industrial clusters to house the industry; world-class general & specialised infrastructure; contemporary regulation & speedy permit process; competitive pricing

of raw materials & utilities; access to efficient logistics, etc.

If media reports are to be believed, some fiscal incentives are now being contemplated by the government for new chemical projects, including relief from tax paid on profits in the early years, but there has been no formal announcement as yet, and it will be premature to uncork the champagne!

Last week’s news outlining the detailed criteria for eligibility for sops to companies for local manufacture of identified drugs and their raw materials, and to States for setting up of three ‘Bulk Drug Parks’, is a welcome development. At first glance, the criteria seem well thought out, with clear timelines in which the investments are to be made. Hopefully, these will be adhered to, and the projects do not go the way that the much-vaulted PCPIRs did – i.e. nowhere!

Semblance of normalcy at our endThis magazine has maintained some semblance of normalcy over the last four months, by continuing to publish every week without fail. This has not been easy, and thanks go to or staff in Mumbai, Chennai, Hyderabad and Ahmedabad for ensuring this. Our advertisers deserve a special mention – as you can well see, most have continued to support us, and in the weeks and months ahead, it is our fervent hope their numbers will increase, and we go back to being the primary outreach platform for India’s chemical industry and trade.

Thank you for your support, and stay safe!

(Reproduced with permission from Chemical Weekly dated 4 August 2020)

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How Thermal Power Plants can Save 80% of Water?In the last edition of EA Water, the author presented some on idea how much water is being wasted in the cooling towers of thermal power plants. It was also mentioned that if we save this water how farmers can earn Rs. 3,315 crores per year. In this article we will discuss, how we can convert the existing thermal power stations, to save 80% of the water. To understand the same first we need to understand how much water is evaporated in a cooling tower & what are the technologies by which we can save this great loss. Please refer to Figure #1. to see how much water is lost in different power plants.

How to save 80% of the water in cooling towers of Thermal Power Stations?We already discussed, Open Cycle Forced Draft Cooling Towers in the last article. In this kind of cooling tower, there is no way we can save the loss of evaporated water with present technology. But there is a way to save this water by using two types of towers. These towers are known as Dry Cooling Towers and Adiabatic Cooling Towers. Let us understand the difference between the two. Also refer to Figure #2 to understand the difference between Dry & Adiabatic Cooling Towers.

Dry Cooling Towers (DCT): As the name indicates it is a dry system where the process water flows in a closed-loop cooling tower. The process water is not exposed to the ambient air. These

type of cooling towers works purely on the approach principle. This is usually referred to as Delta Approach. The formula for the same is Delta Approach = Process water out of the dry cooler – Ambient Air into the DCT. Minimum Delta A required for the dry cooling towers has to be in between 3 ~ 5 Deg. C. The higher the approach lower is the surface area required for the heat exchanger and vice-versa. Since air is the only cooling media in the dry cooler, therefore delta approach cannot be in minus sign.

For Example, if the incoming water to the dry cooler at 70 Deg. C. and the ambient air is at 45 Deg. C. The water outlet from the dry cooler will be in the range of 48 to 50 Deg. C.. Which Correspondence to the formula of Delta A. This can never be 44 Deg. C. or less. This will also not be ever 45 Deg. C. even if we select the world’s most efficient finned surface heat exchanger. This is because of metal

resistance in between air blowing outside and flowing water inside the tubes of the heat exchanger. Dry cooling towers are not sensitive to the inlet humidity of the tower. The humidity can vary from 90 to 99%. This works on the dry-bulb condition and is a purely sensible load heat exchanger.

If we want to achieve process water temperature less then ambient air then we need to add an Adiabatic System to the dry cooling tower.

Adiabatic Cooling Tower (ACT): In the adiabatic cooling towers, the incoming air is being cooled first, before it enters the dry cooling tower. We can understand the concept by an example.

Let us study a situation where the ambient temperature reaches 45 Deg. C. and the water outlet from the cooling tower required is 32 Deg. C., Delta A= 32-45 = -13 Deg. C. and further to achieve 32 Deg. C., Delta A has to be minimum 3 Deg. C. In such a case the adiabatic system is installed in the front of the dry cooler that brings the air temperature from 45 to 29 Deg. C., in the first stage. This is 16 Deg. C. less than the entering ambient air. It has been observed that in many cases when dry bulb (DB) temperature reaches 45 Deg. C., the relative humidity level is

Dr. Jagjit Singh Sehra President, CST Associates

One of the methods, that is very popular, to eliminate 100% of the water is to install the Air Cooled Condenser (ACC). In ACC, steam is directly cooled

with the ambient air.

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around 10 ~ 15%. The reduction of 16 Deg. C. is such a case is very much possible. This is because of the reason that air still has 90 to 85% humidity absorbing capacity before it becomes saturated. The hot air entering the adiabatic system transmits its heat to the media of cooling (Which is water in this case) and the air starts approaching the point of saturation and thus the entering DB temperature reduces up.

There are many methods that have been adopted by companies across the globe. Some of the popular systems are discussed as under (Figure #3):

• Direct Water Spraying: In such a system, water is made to pass through the fine nozzles. This creates mist effect in the front of the finned surface heat exchanger. To avoid water spilling out a cover of fine mesh is provided. There are many limitations to the system. The biggest problem is that if the quality of water is not maintained as per the manufacturer’s recommendation the salt starts depositing on the surface of the finned surface heat exchanger and in few days the heat exchanger gets chocked and does not carry any kind of heat transfer. Therefore the system fails in a few months of installations. The author has observed failures of many installations where this kind of heat exchangers have been installed.

• Fogging Systems: In this system, the water is made to pass through a fog generating system. The fog is nothing but, a saturated air. When it interacts with the incoming high temperature and low humidity air, the cooling effects occur. This kind of system is better than the mist spraying system.

As in this system, there are no water droplets. But this has one very great limitation. This is that when ambient wind velocity becomes more than the designed air velocity of the heat exchanger the fog starts flowing in the opposite direction. Hence the system fails. In this system, the quality of water is also a very big concern. If the water quality is not maintained then there are frequent chocking of water filters increases and the mist does not happen. This kind of system should also be avoided. We can see many failures of such systems installed.

• Evaporating Pads made up of Papers: In such system evaporative pads are being used that are manufactured out of paper. These pads are in the shape of a honeycomb. The pads absorb the water very well and transmit the cold air without mist or the salt to the heat exchanger. This system works very effectively for one or two years. These pads need to be changed every now and then. Thus incurring a great expense. This is not very good for power plants as the equipment has to work for nearly twenty years.

• Evaporating Pads made of Plastics: The system is similar as discussed in point 3) the only difference is

that instead of paper the media of the pads is plastics. This system takes care of all the points discussed above. These pads are very rigid even if these pads becomes dirty it can be cleaned by high jet water spray systems. The only limitation is that these are not as efficient as the paper pad systems. But if we carefully select the thickness of the pad it can surely achieve the desired results.

Connecting Adiabatic Cooling Towers to the existing Thermal Power Plants?Since most of the thermal power plants have cooling towers. So it is very easy to install the Adiabatic Cooling Tower in Parallel to the cooling tower. All we need is to install a three-way valve on the water inlet and outlet of the cooling tower and adiabatic systems. This also serves as double safety. It means whenever there is some maintenance issue in the adiabatic cooling tower, the water can be diverted to the cooling tower on a temporary basis. This can be done while the plant is already in running position. Please refer to figure # 4 for details.

Power and Water Consumption of Adiabatic Cooling TowersIn figure #5, one can see clearly how much water and power are consumed while running the thermal power stations. For example, for 100 MW thermal power plants when we use opencycle cooling towers the water consumption is 290 Cubic Meters per hour and power consumed by fans is 86.30 KW. Whereas when an Adiabatic Cooling Towers are used the water consumption is reduced to 58.00 CMH & power consumption increases to

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213.70 KW. If we see the total power increased when compared to the extra power used, it comes to .21%. Which is negligible, when compared to the water saved.

Benefits of using Adiabatic Cooling Towers over Air Cooled CondensersOne of the methods, that is very popular, to eliminate 100% of the water is to install the Air Cooled Condenser (ACC). In ACC steam is directly cooled with the ambient air.

There are many limitation of this system also. The steam comes out of the turbine at very low pressure and low temperature. Usually, the condensers are selected at 40 Deg.C ambient. When Ambient temperature goes beyond the designed temperature, the power plant capacity has to be reduced to avoid back pressure on the turbine. Due to this power plants goes into deration mode and there is a huge loss of power production.

When we use the Adiabatic Cooling Towers are used instead of ACC, power plants runs on the fully capacity. This is because of the reason that we get constant water outlet temperature from the Adiabatic Coolers. Also, the biggest benefit is that there is no scale formation as the water moves in the close circuit. The future of thermal power plants is to go in for Adiabatic Technology which is the most powerful and practical solution.

Investment and Foot Prints RequiredCost of equipment, pay back period, foot print and how the investment required funds will be discuss in the next month article.

About the AuthorDr. 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]

(Reproduced with permission from Every Thing About Water, July 2020)

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Prime Minister Narendra Modi said efforts are on to make the Union Territory of Ladakh a carbon-neutral region.

Being ‘carbon neutral’ means having a balance between emitting carbon and absorbing it from the atmosphere in carbon sinks. It is significant as greenhouse gas or carbon emissions adversely affect the climate.

“Just like Sikkim has made its mark as an organic state, efforts are being made to make Ladakh a carbon-neutral region,” said Modi, addressing the country from the ramparts of the Red Fort on the occasion of the 74th Independence Day.

In 2003, Sikkim became the first state to announce adoption of organic farming, which also helped in reducing its carbon footprint.

Sikkim stopped importing chemical fertilisers and since then the cultivable land there is practically organic and farmers of the state are traditional users of organic manure, an environment ministry official said.

In 2018, Sikkim won the Food and Agriculture Organisation (FAO)’s ‘Future Policy Award’ for best policies on promoting agroecological and sustainable food systems.

In Ladakh, several wind and solar energy projects are underway. Among these is an upcoming 7,500 megawatt (MW) solar power plant which will significantly reduce the union territory’’s carbon footprint and contribute towards carbon neutrality.

“Ladakh has big potential for solar energy. Within five years from now, a 7,500 MW solar power plant will be installed there which will help

in reducing the carbon footprint drastically,” said Jigmet Takpa, joint secretary of the environment ministry.

Ladakh produces 0.1 per cent of India’s total carbon emissions, another senior officer of the environment ministry said.

“Making Ladakh carbon neutral is a vision of development. It aims at carrying out developmental activities in the territory along with minimising carbon emissions.

“Ladakh’s emissions are very low at 0.1 per cent of India’s emissions due to less development in the area. The government is planning to get investment for solar and wind energy and it will be announced soon,” the officer said.

Discussing plans to give a push to the country›s biodiversity, he announced

Just like Sikkim became 100% Organic, Ladakh to become ‘Carbon-Neutral’

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projects to conserve Asiatic Lions and Gangetic dolphins while reminding the nation of the success of earlier projects, Project Tiger and Project Elephant.

India can say proudly that it is one of the very few countries where its area under forests is expanding. India is committed towards the promotion and conservation of its biodiversity.

We have successfully carried forward Project Tiger and Project Elephant. The tiger population has increased in India. In the coming days, we are starting Project Lion for Asiatic lions, he said.

Giving details, the prime minister said under Project Lion, work on the required infrastructure for the protection and security of Indian lions and a special type of health infrastructure will be undertaken. And emphasis will be laid on Project Lion, he said.

According to a report by the Ministry of Environment, Forests and Climate Change earlier this year, there was a 29 percent increase in the population of the Asiatic lions that live in Gujarat’s Gir forest, taking the

number from 523 in 2015 to 674 in 2020.

According to the 2018 tiger census, figures for which were released in 2019, India’s wild tiger population increased by over 30 percent in four years -- 2,967 up from 2,226 four years ago.

In his speech, the prime minister also announced the launch of Project Dolphin aimed at the conservation of Gangetic river dolphins, declared the National Aquatic Animal in 2010.

Also, one more work we want to promote and that is - Project Dolphin. We will focus on both types of dolphins living in the rivers and in the seas. This will also give a boost to biodiversity and also create employment opportunities. This is also a centre of attraction for tourism. So, we are going to move forward in this direction too, Modi said. He also stressed on the importance of renewable energy.

India has shown that the march towards development is possible by balancing the environment. Today, India is inspiring the entire world with its vision of one world, one sun and one grid,

particularly in the field of solar energy, he said.

The prime minister said India has established itself as one of the five countries in the world in the generation of renewable energy and is finding solutions to pollution. India is both aware as well as involved in finding solutions to pollution.

We are leaving no stone unturned whether it is the Swachh India campaign, smoke-less cooking gas, LED campaign, CNG-based transportation, or electric mobility.

We are emphasising on increasing the use of ethanol to reduce pollution caused due to petrol. What was the condition of ethanol in our country five years ago? Five years ago, there used to be only 40 crore litre production of ethanol. It has risen five times in the last five years. Today, we are producing 200 crore litres of ethanol which is proving to be very helpful towards our environment, he said.

(Source: NDTV News dated 15 August 2020)

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S. Vijayakumar, the owner of five commercial vehicles (CVS), bought a new truck recently. Two days later, it was stolen. However, it was located in a couple of hours and its movement was also stopped remotely.

A logistics company, with a fleet of 150 vehicles, was losing fuel worth ~25 lakh a month owing to pilferage. The company was able to identify the source of the pilferage and address the issue.

Both problems were solved in a matter of hours, thanks to connected truck technologies. Once available in high-end cars, today, most major CV manufacturers, such as Tata Motors, Ashok Leyland, Mahindra, Daimler India and VE Commercial Vehicles (VECV), offer “smart trucking” solutions.

Original equipment manufacturers (OEMS) offer these connected solutions as standard fitments in all vehicles that are BS-VI compliant. Industry estimates state that more than 12-15 lakh vehicles will be connected over the next four or five years.

It is like having a “genie” in your truck, says Rajaram Krishnamurthy, vicepresident, marketing, sales and customer services, at Daimler India Commercial Vehicles (DICV). “He makes sure your drivers drive safely, that no one steals fuel or the vehicle itself. He knows which route to take to avoid traffic jams and containment zones. He lets you know immediately if something goes wrong and helps you get support to fix it. He can tell you about your truck even if it is a thousand miles away.”

In January this year, Daimler launched its new portfolio of BS-VIcompliant trucks and buses and also introduced Truckonnect, its telematics solution that has already connected over 300,000 trucks worldwide. Truckonnect allows customers to remotely check vital vehicle information, including its location, health and fuel consumption, via an online portal in real time. With this, fleet managers can optimise driver performance, increase fuel efficiency and reduce downtime.

Data, which is the foundation of a connected truck’s capabilities, is generated through Internet-of-thingsenabled electronics devices installed in these vehicles. For example, on average, Ashok Leyland captures about 315 GB of data and processes one billion data packages daily.

The growth of connected truck technology also enhances product development and future services. Take Tata Motors, which has built a cloudbased platform called “Fleet Edge”. It captures various data points about the truck with in-vehicle sensors and telematics units, and provides insights to customers through a mobile interface and a web portal. “We are leveraging the connected vehicle platform to complement our products and offer value-added services to meet customer expectations,” says Girish Wagh, president, commercial vehicle business unit at Tata Motors.

“Fleet Edge” offers features like track and trace, geo-fencing alerts, driver behaviour, fuel efficiency and fuel loss alerts, among other things. Integrated with Tata Motors’ home-grown Connected Vehicle Platform, the unit comes as a standard feature in its BS-VI range of medium and heavy trucks and buses and in a select range of intermediate, light and small CVS.

Ashok Leyland recently showcased “Digital Nxt”, a combination of three innovative digital solutions. The first, “i-alert 3.0”, is an enhanced telematics application that addresses the technical complexities of BS-VI and offers features such as tracking and tracing of vehicles, geo-fencing, trip management, route deviation tracking, fuel management, alerts, service reminders, driver monitoring, and so on.

The second solution, “AL Cares”, is a digital solution that gives quick access to vehicle details, an e-locker facility to store all vehicle-related documents, provides service reminders, service booking, real time alerts, and a dealer/service locator.

“Uptime Solution Centre”, the third platform, offers Ai-driven prognostics that help detect potential issues in advance and offers real-time analysis of vehicle parameters to enable quick support. The company has also introduced an e-diagnostics app which identifies a problem and offers step-bystep troubleshooting with the help of videos, says Venkatesh Natarajan, chief digital officer and senior vice-president IT, Ashok Leyland.

The company has equipped about 150,000 vehicles with IOT sensors, while over 7,000 vehicles are being brought on to the IOT platform every day.

As for Mahindra & Mahindra, the company is using its connected vehicle technology to help fleet owners increase their asset productivity. While M&M’S BLAZO range of HCV trucks was launched with the DIGISENSE connected vehicle technology in the BS-IV era, the company recognised the importance of connected vehicle technology in the BS-VI vehicles which have higher levels of electronics. Hence, it went back to the drawing board to develop its nextgeneration connected vehicle solution — Mahindra IMAXX.

“At Mahindra Truck and Bus, we have seen fleet owners achieving an over-10 per cent improvement in fuel economy. They are also achieving a significant increase in asset productivity, in terms of the kilometres driven per vehicle/day, by taking action on the insights provided by the fleet telematics platform,” said Veejay Nakra, Ceo-automotive division, Mahindra & Mahindra.

VECV managing director and CEO Vinod Aggarwal said that from this month, its trucks and buses built on the EUTECH6 platform will be equipped with pre-fitted hardware that will make them completely connected on the road.

(Source : Business Standard dated 10 August 2020 )

A ‘GENIE’ IN YOUR TRUCKCommercial vehicle makers now provide connected trucking technologies

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Jal Jeevan Mission - An UpdateJJM to measure and monitor water supply in rural areas Fresherslive | 31 August, 2020

Jal Jeevan Mission (JJM) aims to create a smart rural water supply eco-system to measure and monitor the service delivery of the water supply in rural areas. The National JJM has constituted a Technical Expert Committee with an aim to prepare a road map for measurement and monitoring of the water service delivery system in rural areas. The committee constitutes members from academia, administration, technology, and specialists from the water supply sector.

https://www.fresherslive.com/current-affairs/articles/jal-jeevan-mission-to-measure-and-monitor-water-supply-26375

Union Jal Shakti Minister discusses Progress of JJM with Goa CMRepublic World | 30 August, 2020

Union Jal Shakti Minister Shri Gajendra Singh Shekhawat held an online meeting with Goa CM Shri Pramod Sawant to discuss the implementation of JJM in the state. Goa CM informed that Goa is planning 100% tap connections to all households by 2020-21.

https://www.republicworld.com/india-news/general-news/union-jal-shakti-minister-discusses-progress-of-jal-jeevan-mission-with-goa-cm.html

Tamil Nadu CM assures implementation of JJM in a ‘Robust Manner’Republic World | 19 August, 2020

Union Minister for Jal Shakti Shri Gajendra Singh Shekhawat, along with Tamil Nadu CM, Shri EK Palaniswamy, reviewed status of JJM.

TN CM informed that “JJM in the State would be implemented in a highly robust manner to provide all households with tap connections in rural areas within stipulated time.”

https://www.republicworld.com/india-news/general-news/shekhawat-and-palaniswamy-review-jal-jeevan-mission.html

J&K LG reviews progress made under “Back to Village Programme (B2V)”The Economic Times | 17 August, 2020

Lieutenant Governor Shri Manoj Sinha called for strengthening rural connectivity for the socio economic development of the villages of J&K under B2V Programme.

Sinha stressed on expediting rural connectivity and piped drinking water for all villages, as roads, power and drinking water are the basic requisites for the holistic development of any area. He underlined the need for connecting every village that fulfils the norms of Pradhan Mantri Gram Sadak Yojana.

https://economictimes.indiatimes.com/news/politics-and-nation/j-k-l-g-reviews-progress-made-under-back-to-village-programme/articleshow/77595807.cms

Two crore families provided with piped drinking water in last one year: PM The Economic Times | 15 August, 2020

In last one year, two crore families, especially tribals living in forests and far-flung areas, have been provided piped drinking water under JJM.

https://economictimes.indiatimes.com/news/politics-and-nation/two-crore-families-provided-with-piped-drinking-water-in-last-one-year-pm-modi/articleshow/77564123.cms

Jal Jeevan Mission: 16.47 lakh tap connections soon for rural folkThe New Indian Express | 06 August, 2020

The Kerala Water Authority (KWA) will provide fresh 16.47 lakh drinking water tap connections in 719 panchayats soon as part of JJM, the centrally-assisted rural water supply initiative. The KWA decided to provide the facilities in the first meeting after constituting the State Water Sanitation Mission (SWSM).

https://www.newindianexpress.com/cities/thiruvananthapuram/2020/aug/06/jal-jeevan-mission-1647-lakh-tap-connections-soon-for-rural-folk-2179635.html

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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

August 2020Where to Check the LFL Before Hot Work?

Test in ALL the places where flammable vapors could be ignited !

• Sparks from flame-cutting, welding and grinding can bounce a long way. That is why most permits call for removing combustible materials and testing for flammable gases within 35ft (10.7m)

• Gravity can pull sparks and hot particles down to the ground – and even down into pits and sumps. Monitor LFL under where elevated hot work is performed

• Most flammable vapors are heavier than air, so they tend to accumulate in low spaces, including sewers and sumps.

• Even lighter flammable vapors can linger in places with poor ventilation – like inside pipes, vessels, or containment walls.

• Contractors and Maintenance Workers don’t know your process. They don’t know all the places to look for flammable vapors.

• Conditions can change while hot work is being performed. Process operations, upsets, or even weather conditions can introduce flammable materials near where hot work is being performed.

• Check every opening and sump within the 35ft (10.7m) zone or “bell” or the distance specified by your company.

• Some companies require retests LFL frequently to manage changing conditions. Monitor the affected area to maintain a safe condition.

• Use your knowledge of the process area to think of places where flammable vapors or combustible liquids and solids could exist

• Use the “wands” or sample tubes that come with your gas detectors to check inside spaces

• Use Welding blankets and other protections to stop sparks and particles getting to places where they shouldn’t. BUT DON’T COUNT ON THESE ALONE!

Locations to be checked for LFL before & during hot work

Did You Know?

What Can You Do?

This issue sponsored by

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

There have been many fires and explosions in our industry over the years due to ignition during spark-producing Hot Work. The May 2020 Beacon covered the fatal consequences from one such event. One element of preparing for Hot Work is to check for – and prevent – the presence of combustible materials and/or flammable vapors “within 35 ft (10.7m)”. (* The recommended distances from both US OSHA and the National Fire Protection Assoc.(NFPA)).

Many companies check for flammable vapors at all places where the sparks from the hot work could be expected to bounce. The diagram shows some locations to be checked. LFL gas detector readings need to check around the location of the hot work itself, as well as everyplace around and below where the hot particles could bounce. This includes using a probe (or sampling hose) to check inside open process pipes or inside sumps and process drains such as points 5-9.

21

3 4

5

6

7

8 9

Location of planned hot work

35ft (10.7m) radius*

all the way down to the ground, all

around the tank and even below grade

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NEWS DIGESTAsean agrees to review trade pact with India – concerns over China misusing treaty to push goods, fewer benefits for domestic exportersThe Times of India | 31 August 2020

After months of inaction and the government’s threat to pull out of the Comprehensive Economic Cooperation Agreement (CECA) with Asean, members of the trading block have agreed to review the trade pact amid concerns that China is using the treaty to ship goods to India, which is unable to take full advantage of the 10-year-old arrangement.

While the scope of the review will be finalised at the official level, New Delhi is keen that some of the anomalies be removed at the earliest. Chief among them is the inability of Indian exporters to get a level-playing field. An official told TOI that Indonesia had lowered duties on only 50% of the items, while close to 75% of its products were getting customs duty benefit in India. A similar problem persisted with some of the other Asean members, although those such as Indonesia are not classified as least-developed countries.

Another key concern for India are the weak rules of origin meant to check the misuse of treaty benefits by countries that are not part of the agreement. The Asean trade agreement requires at least 35% value addition in one of the member countries for a product to get duty advantage in India.

Hindalco achieves aluminium industry first with red mud utilisationInternational Mining 20th August 2020

Hindalco Industries has entered into a Memorandum of Understanding

(MoU) with UltraTech Cement, India’s largest manufacturer of cement and concrete, to deliver 1.2 Mt/y of red mud to UltraTech’s 14 plants located across seven states. This agreement will see Hindalco become the world’s first company to achieve 100% red mud utilisation across three of its refineries, it says.

Red mud generated in the alumina manufacturing process is rich in iron oxides, along with alumina, silica and alkali. Hindalco has developed the capability to process red mud as a replacement for mined minerals such as laterite and lithomarge in its process.

Hindalco is supplying red mud to UltraTech Cement plants where it has proved to be an effective substitute for mined materials, successfully replacing up to 3% of clinker raw mix volume, according to the company.

Hindalco’s alumina refineries are currently supplying 250,000 t/mth of bauxite residue to cement companies, making Hindalco the world’s first company to have enabled such large scale commercial application of bauxite residue. In the current year, Hindalco aims to achieve 2.5 Mt of bauxite residue utilisation, which will be another global milestone, it says.

Globally, 160 Mt of red mud is produced annually and stored in large tracts of land which is a serious industry challenge, Hindalco says. To find a sustainable solution, Hindalco has invested in infrastructure and collaborated with cement companies, with UltraTech Cement being a key partner.

KC Jhanwar, Managing Director of UltraTech Cement, said: “UltraTech has been among the early adopters in India on the use of alternative raw materials and fuels in manufacturing and invested to build storage, handling and processing facilities. Use of waste like red mud as an alternative raw material

for manufacturing cement requires infrastructure and process modification to ensure a win-win for both business and the environment.”

Last year, UltraTech consumed about 15.73 Mt of industrial waste as alternate raw material and about 300,000 t as alternative fuel in its kilns.

Publish Environment Impact Assessment draft in other Indian languages: Supreme CourtThe Economic Times | 14 August 2020

The Supreme Court has asked the Centre to publish the draft Environment Impact Assessment notification in as many Indian languages as possible, apart from the Hindi and English draft circulated recently for public dissemination and objections. A bench headed by Chief Justice of India Sharad Arvind Bobde said that if the law did not permit notification in multiple languages, the Centre should amend the Official Languages Act. However, the bench stayed the Delhi High Court’s contempt proceedings against the environment ministry but asked the Centre to go back to the HC to have the contempt petition withdrawn.

Multiple petitions have been filed in different high courts against the decision to publish the notification only in Hindi and English. The Delhi HC then ordered the Centre to publish the draft notification in other languages within 10 days but the Centre refused to comply. A contempt petition was subsequently led in the HC against the environment ministry’s refusal and the HC issued contempt notices. The Centre approached the SC against the order and contempt petition but Bobde’s bench while staying contempt proceedings rejected the government plea on limiting the languages for the notification.

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Environmentalists contend that the notification in existing form allows for post-facto approval of development projects and in some cases do away with public consultation clause too and this would destroy India’s environment and forests and that it must be widely debated and reviewed before it is finalized. Hence, they insist that the notification had to be translated at least into 20 other languages listed in the Eight Schedule of the Constitution for wider dissemination.

EIA receives 2 million comments, Centre directs its own agency to vetBusiness Standard | 12 August 2020

The draft Environmental Impact Assessment (EIA) policy, facing opposition from many quarters, received a record 2 million comments as the deadline closed on Tuesday (11th August).

Though there have been several petitions for extending the deadline, government sources have denied an extension. National Environmental Engineering Research Institute (NEERI), which is controlled by the Centre, will compile and streamline the suggestions. Following this, the final draft will be placed before a committee headed by S R Wate — former director of NEERI — for scrutiny, during which experts from various sectors will participate, said a senior official.

According to the Environment Protection Act, the government now has 724 days to issue the final EIA.

The draft EIA notification 2020, proposed by the Ministry of Environment, Forest and Climate Change (MoEFCC) in March, will replace the last notification dating back to 2006.

The draft EIA has been facing protests from leading environment groups, public policy organisations, educational institutes, and the Opposition. Most of them have, in their submissions,

contested the terms of the EIA, calling it anti-public and pro-industry. Several agencies have also objected on the process of EIA drafting. Kanchi Kohli, senior researcher with the Centre for Policy Research, said the government has disregarded popular sentiment by asking its own agency to vet the suggestions.

“Most of the comments in the draft EIA are with regards to an overhauling of the process of making amendments to the EIA. The government should initiate a whole new process to review the EIA rather than dilute the tenets of the same further,” said Kohli.

Among major concerns raised by several players, the most prominent has been the exclusion of public hearing in several key projects under the B2 category. The B2 category includes ambitious inland waterways projects, offshore as well as onshore oil, gas, and shale exploration projects, small hydroelectric projects up to 25 Mw, and irrigation projects between 2,000 and 10,000 hectares of command area.

A government official, however, said exclusion in oil, gas, and shale was only for the exploration stage and not for the commercial/developmental stage. Another major criticism the draft has faced is that it proposes post-facto environment clearance for projects by paying a penalty. The MoEFCC also courted controversy by banning websites of several non-government organisations (NGOs) that had sent mass emails to the minister. The ban was later revoked.

India still imports 41 of 96 major items from ChinaSunday Guardia | 08 August 2020

India still imports over 41 of 96 major items from China, and there has been an increase in imports of arms and ammunition parts and accessories from China to the tune of more than 1500% till June this year compared to last year. This startling fact has emerged after Pune-based civil rights

activist Prafful Sarda sought information from the Ministry of Commerce and Industry about details of imports of goods with values, traded between India and China. The data provided by the Department of Commerce shows that imports of arms and ammunition parts and accessories were to the tune of Rs 3.24 lakh last year and this year till June, it has been Rs 52.3 lakh, an increase of over 1,500%.

Among the 41 out of the 96 major items imported from China, the growth in imports in some cases has been over 200% and going up to 5,400%. Among all these products, the maximum growth in imports has been seen of live animals.

Business sentiment hits all-time low since 1991The Hans India| 07 August 2020

NCAER’s Business Confidence Index (BCI), an indicator of the business sentiment across the Indian industry, stood at 46.4 in the first quarter of 2020-21, a drop of 40.1 per cent from its level of 77.4 in the previous quarter. It fell 62 per cent in the June 2020 quarter on a year-on-year (y-o-y) basis, the lowest since 1991, according to a survey by the National Council of Applied Economic Research (NCAER). “This is the lowest that the BCI has ever fallen in the history of 113 Rounds of the NCAER Business Expectations Survey (BES),” the think-tank said. The decline of 40.1 per cent in the BCI came on the back of a 30.4 per cent quarter-on-quarter decline in the BCI in April 2020. NCAER said the BCI tracks the business sentiments of around 600 Indian companies to compute the composite index. The NCAER survey elicits responses from firms across six cities to assess business sentiments in the four regions of India: Delhi-NCR represents the north; Mumbai and Pune, the west; Kolkata, the east; and Bengaluru and Chennai represent the south, it said. The BES has been carried out on a quarterly basis since 1991 by NCAER. The think-tank said the latest, 113th

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Round of the BES, was carried out in June 2020, when the country had started slowly opening up after more than two months of lockdown due to the coronavirus pandemic, following which, the spread of the disease accelerated. Political Confidence Index fell from 73.7 in January-March 2020 period to 63.1 in the first quarter of 2020-21, falling by 14.4 per cent on a q-o-q basis and by 50.1 per cent on a year-on-year basis.

MSME debt restructuring allowed till March 2021Financial Express | 07 August 2020

The Reserve Bank of India (RBI) extended the existing debt restructuring scheme for stressed micro, small and medium enterprises (MSMEs) by three months to March 31, 2021, in view of the distress brought upon by the Covid outbreak. The central bank also changed the cutoff date for MSMEs to become standard accounts in order to be eligible under the scheme to March 1, 2020 from January 1, 2020.

The extension of forbearance comes amid concerns that the asset quality profile of most lenders has undergone significant deterioration, even as bad loan ratios remain unchanged due to forbearance.

Industry players welcomed the move as it is expected to give additional relief to small enterprises, over and above the government guarantee-backed emergency credit scheme for them.

According to the RBI’s Financial Stability Report (FSR) released last month, 65% of system loans to MSMEs were under moratorium as on April 30. There is uncertainty around the ability of these borrowers to eventually

repay. While the debt recast will help keep bad loan numbers under control through the duration of the scheme, there is danger of a spurt thereafter. In a recent report, India Ratings and Research said that between September 2019 and April 2020, the proportion of rated mid and emerging corporates (MEC) universe in default increased to 18% from around 10%. The agency estimates that 60% of its rated MECs qualify as MSMEs under the new definition.

‘Balanced trade’: Piyush Goyal wants FTA to be tweaked to lower trade deficit with JapanFinancial Express | 07 August 2020

India pitched for greater Japanese investments but at the same time called upon Tokyo to reduce its huge trade surplus of about $8 billion with New Delhi and move towards “balanced trade”, hinting possibly at the need to review an existing free trade agreement (FTA) between the two sides. This is in tune with New Delhi’s new policy thrust on reducing the sticky and yawning trade deficits with some of its trading partners, most notably China. Commerce and industry minister Piyush Goyal addressed a virtual seminar for Japanese companies looking to invest in India.

Japan’s minister for economy, trade & industry (METI), Hiroshi Kajiyama, said, Japanese companies have over 200 investment plans for India but many of these have been delayed in the wake of the Covid-19 outbreak. Shigehiro Tanaka, Japan’s vice-minister for economy, trade and investment, cited a survey to say Japanese companies think India has great potential to be a global export hub but it has to remove obstacles such as price competition, quality issues of certain products, and weakness in its logistics systems. Elaborating on price competition, he said increasing labour costs in India and stringent rules of origin sometimes

prevent companies to take advantage of the benefits of an FTA.

To ensure that issues flagged by the Japanese companies are sorted out at the earliest, Goyal said an inter-ministerial group of Indian officials, preferably of the joint secretary level, will resolve the investors’ concerns on logistics, export procedures, customs clearance and quality parametres. This group will meet 50 Japanese companies — 25 of whom are already operating here and 25 potential investors — and submit their assessments with Goyal. The group will have officials from the ministries of commerce, industry, finance, railways and road transport.

While Indian imports from Japan stood at $12.43 billion in FY20, its exports were to the tune of only $4.52 billion. Japan is the fourth-largest FDI source for India, with cumulative inflows of over $33.5 billion, or 7% of the total, between April 2000 and March 2020. Massive merchandise trade imbalance has forced India to rethink its FTAs with Asean, Japan, South Korea and Malaysia, more so after its pull-out in November 2019 from the 16-nation RCEP trade deal talks. In recent years, India has been pressured by the Trump administration to bring down its trade surplus with the US. India’s main imports from Japan are capital goods, electronics, iron & steel, plastics and copper products.

Speaking at the same event, department for the promotion of industry and internal trade (DPIIT) secretary Guruprasad Mohapatra said that a proposed single-window system, with a one-stop solution for all industrial licences and clearances, will be fully functional by April 2021.

Mahapatra also said India is planning to set up the 13th Japanese industrial township in Assam, which will further promote domestic manufacturing and bilateral ties. Typically, these townships are integrated industrial parks, with ready-to-move-in infrastructure facilities, with world-class

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infrastructure, plug and play factories, pre-approved licences and investment incentives exclusively for Japanese companies, he added.

Start-ups to get priority sector tag as RBI revises lending normsBusiness Standard| 07 August 2020

The Reserve Bank of India (RBI) is revising the Priority Sector Lending (PSL) norms to enable higher lending to start-ups and renewable energy firms, as well as to correct regional disparities.

It intends to align them with emerging national priorities and bring a sharper focus to inclusive development. The revised guidelines also aim to encourage and support environment-friendly lending policies to achieve Sustainable Development Goals (SDGs), the RBI said in a statement.

Detailed guidelines in this regard will be issued shortly. PSL guidelines were last reviewed in April 2015.

An incentive framework has been established to help banks address regional disparities, with respect to flow of priority sector credit.

Higher weighting will be assigned to incremental priority sector credit in identified districts where credit flow is comparatively lower, whereas a lower weighting will be assigned in case of a comparatively higher credit flow.

India should focus on protecting economy, says ex-RBI governor Raghuram RajanThe Times of India| 06 August 2020

The policymakers should focus on protecting the economy as businesses struggle amid the coronavirus pandemic instead of being overly focused on what ratings agencies think, former Reserve Bank of India (RBI) governor Raghuram Rajan said.

“It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that,” Rajan told the Global Markets Forum.

India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery.

The government has announced several initiatives to help the poor and small- and medium-size businesses, but actual cash outgo from the government’s measures has been estimated at just about 1% of GDP.

Several attribute the fiscal prudence to fear of a downgrade after Moody’s cut India’s rating and outlook in early June followed closely by a change in outlook from Fitch.

The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year but decided to hold rates steady earlier in the day against market expectations as inflation pressures have risen.

PLI scheme to be expanded to AC, furniture, leather sectors as MEIS wound upMillennium Post | 06 August 2020

The government proposes to expand the scope of the production linked incentive (PLI) scheme to five or six more sectors, including air conditioners and TV sets, leather, chemicals, furniture, tyres and toys, in a bid to boost manufacturing in the country. Government sources said that the Finance Ministry, along with the Commerce and

other ministries, are finalising the contours of the PLI scheme for each identified area of manufacturing and an announcement could be made over the next few weeks. The PLI scheme for new sectors would be similar to the ones announced by the Electronics Ministry for development of a mobile manufacturing ecosystem in the country and another Rs 7,000 crore scheme by the Chemicals and Petrochemicals Ministry for the pharmaceutical sector for manufacturing bulk drugs and active pharmaceutical ingredients (APIs). The new scheme would replace the existing Merchandise Exports India Scheme (MEIS), introduced in April 2015, with the objective to promote manufacturing and exports of specified goods from India. But this scheme did not yield the desired result. Even with its liberal application across sectors, exports remained nearly stagnant, so the government now wants to wind it up by December. The liability under MEIS ballooned from Rs 20,000 crore to about Rs 45,000 crore in 2019-20, reaching an unsustainable level. However, during the period, the country’s exports remained range-bound. In 2014-15, Indian exports were $310 billion and in 2019-20, the export figure was $313 billion. So, the Finance Ministry has restricted MEIS benefits to just Rs 9,000 crore in FY21 and plans to use the savings for the sector focused PLI scheme, sources said. The PLIs for several sectors would be ready before the end of 2020.

India may allow low threshold for beneficial owner under the new FDI ruleThe Economic Times | 06 August 2020

India may prescribe a low threshold for beneficial ownership under the foreign direct investment (FDI) policy, which was recently amended to require prior government approval for investments originating from China and other neighbouring countries.

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Policymakers have deliberated both a 25 per cent and a 10 per cent limit but are veering around to the lower one. A final call will be taken at the highest level of government, officials said. The 10 per cent limit is consistent with the definition of beneficial ownership in the Companies Act.

The Department for Promotion of Industry and Internal Trade (DPIIT) has already held inter-ministerial consultations as well as discussions with other stakeholders. Cabinet approval may be sought for the final proposal, a government official familiar with the deliberations told ET.

The lower limit will ensure that while small and financial investments will not face scrutiny, significant investments from China and other countries covered by the new regime will face checks.

On April 18, India tightened its FDI policy for countries with which it shares a land border, putting investments from them on the approval route. This change meant that any direct investment from Bangladesh, China, Pakistan, Nepal, Myanmar, Bhutan and Afghanistan required government clearance. The restrictions also covered FDI routed via entities set up in other jurisdictions.

The FDI policy, however, does not prescribe any investment threshold for

such approval, implying that a project involving even small amounts would require approval. Moreover, it could also cover investment by venture capital and private equity investors if their funds in turn had Chinese involvement.

A defined beneficial ownership threshold will exempt investments below that level from scrutiny. Investors have so far relied upon definitions for beneficial ownership in other Acts. The Companies Act defines significant beneficial owner as an entity that holds indirectly, or together with any direct holding, not less than 10 per cent of the shares or voting rights in shares or has a right to exercise significant influence or control in any manner other than direct holding alone.

Under the Prevention of Money Laundering Act (PMLA), it is defined as controlling ownership interest in a company of more than 2 per cent of shares and 15 per cent in case of a partnership. A Department of Expenditure order on July 24 imposing restrictions on bidders for government procurement pegged beneficial ownership at a 25 per cent threshold.

The DPIIT, in the press note issued on April 18, said the FDI policy review was aimed at «curbing opportunistic takeovers/ acquisitions of Indian companies due to the current Covid-19 pandemic».

Hit by Covid, govt goes all out to expedite its fresh push for manufacturing in ‘champion sectors’Financial Express| 06 August 2020

The department for promotion of industry and internal trade (DPIIT) convened a meeting of senior industry executives to expedite its fresh push for manufacturing in “champion sectors”, including pharma, textiles, auto components, aerospace and defence, under the Atmanirbhar Bharat programme.

The bid to shore up domestic manufacturing by successive government hasn’t yielded much success despite economic liberalisation and the share of manufacturing in the country’s GDP has remained stagnant at about 15-17% for at least three decades now.

The Modi government had in 2014 sought to prepare action plans for 25 sectors under its Make in India initiaive, the scope of which was later widened to cover a total of 27 “champion sectors”—15 in manufacturing and 12 in services.

Already, the DPIIT is working on a “genuine” single window clearance system for investors, finalising a land bank with the help of states and drastically pruning the need for a maze of licences for investors to set up units. Already, a status check ordered by a committee of secretaries (CoS) revealed that the 35 central ministries/departments among them are presiding over a regime of as many as 767 pre-establishment/pre-operation licences! Add to these the multitude of inspections and approval renewals an investor is required to go through after the commencement of operations and, one could call the country’s regulatory system anything but investor-friendly.

The department is also bolstering “an Investment Clearance Cell” that will put in place a one-stop digital platform

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for investors to obtain all requisite central and state clearances/approvals in a time-bound and hassle-free manner. DPIIT has already undertaken stakeholder consultations with investors, including Foxconn, Samsung, Wistron and Yazaki, and their concerns have been shared with the ministries concerned.

The 27 champion sectors also include bio-technology, capital goods, chemicals and petro-chemicals, electronics, leather & footwear, food processing, gems and jewellery, railways, tourism, medical value travel, transport and logistics, accounting and financial services, education and legal services.

Environment Ministry dithered on decision to close LG Polymers plant in VishakapatnamThe Hindu| 05 August 2020

The Union Ministry of Environment, Forests and Climate Change (MoEFCC) decided against closing down operations of the LG Polymers plant in Vishakapatnam, Andhra Pradesh, from where styrene gas leaked, killing at least 12 and causing 4,000 to take ill on May 7. This, even though a senior official in the Ministry recommended that the plant be closed citing Section 5 of the Environment Protection Act that allows the Centre to shut down industrial units that grossly violate the law.

After the disaster, documents accessed via the Right to Information Act (RTI) show the MoEFCC convened a National Crisis Group with members from several Ministries and sought responses from the Andhra Pradesh Pollution Control Board (APPCB) and State authorities enquiring into the causes of the accident and remedial measures taken.

The Environment Ministry also noted the previous history of the company.

The chemical factory had been working since 1997 without appropriate clearances and had applied for clearance, in 2018, under rules made by the MoEFCC itself. These rules allow industrial projects in violation of environmental laws to apply to a special panel of experts called the ‘Violations Committee’ of the MoEFCC and — provided they meet certain criteria and make appropriate modifications — become compliant operations. LG Polymers had applied to this committee and its case was under consideration.

On May 18, according to the records accessed by environmental activist Vikrant Tongad and viewed by The Hindu, Geeta Menon, Joint Secretary, MoEFCC, issued two drafts. One, that sought updated information from multiple agencies such as the Central Pollution Control Board, APPCB, the Chief Inspector of Factories, and the Petroleum and Explosives Safety Organisation on actions taken and whether the company had abided by the MoEFCC’s rules — called the Manufacture, Storage and Import of Hazardous Chemicals (MSIHC) Rules, 1989 — that prescribe how hazardous and industrial chemicals ought to be stored.

The second draft was ostensibly to shut the unit down in lieu of its violations and the environmental and public health damage it had caused. The Hindu could not access the full text of this draft but a note by Ms. Menon says: “The Company’s case is at present being considered by the Violation EAC in the ministry. In view of the magnitude of the accident and the clear responsibility of the company, directions to the company for closure under Section 5 of the Environment Protection Act is placed alongside for approval.”

A decision on the matter was to be taken by the Secretary C.K. Mishra. He was due to retire on May 31 and left the decision to “his successor”, records of the meeting show. The matter then

landed on the table of R.P. Gupta, the incumbent.

However, on June 18, another officer of the Ministry noted that the matter was “discussed” with the Secretary (Mr. Gupta) and the final decision was to only seek a status report on the compliance with the MSIHC. The reason proffered was that the APPCB had withdrawn the unit’s “consent to operate” and that the National Green Tribunal (NGT), which had imposed a `50 crore fine, was overseeing the process whereby the company was looking to recommence operations.

“In view of the above, it is noted that the objectives desired through the set of proposed directions under Section 5 are already addressed by the actions initiated by APPCB and Hon’ble NGT. Therefore, Ministry may proceed only with the aspect of seeking status of compliance of MSIHC Rules,” according to the file-notings.

“It’s clear that the Environment Ministry, even though it has the necessary powers, doesn’t want to involve itself in shutting down the company even though the evidence for it being a serial violator of rules is in no doubt, as these records show,” Mr. Tongad told The Hindu.

On May 19, the MoEFCC-appointed ‘Violations Committee’ deferred a decision on the company’s application on the grounds that in the aftermath of the disaster, it would wait for final decisions by the NGT and other expert committees monitoring the aftermath of the industrial disaster.

Economy bouncing back with exports, power consumption recovering, says GoyalBusiness Line| 04 August 2020

The Indian economy is showing signs of a bounce-back from the Covid-19 related disruptions with goods exports in July 2020 reaching about 90 per

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cent of that in July last year, Commerce & Industry Minister Piyush Goyal has said.

Power consumption too, is back to near normal, with the latest figures only a marginal 2-3 per cent lower than the comparable period in the previous year, the Minister said at the launch of the United Nations Industrial Development Report 2020.

India’s exports contracted for the fourth straight month in July 2019, with shipments falling by 12.41 per cent to $ 21.91 billion due to fall in top export items such as petroleum, textiles, engineering goods, and gems and jewellery items. The Minister’s comment indicates that export figures for July 2020, which will be officially announced mid-August, will also post a fall vis-a-vis last year, but the decline will be lower than that experienced in the previous months. Goyal said that the country today was in a mood to not only bring back economic activity but also become self reliant, improve quality of its products, bring about competitive pricing of the products, building economies of scale and compete with rest of the world on equal and fair terms. “... that will make Indian products not only a fair proposition but preferred proposition,” he said.

India looks to screen for re-routed Chinese goodsThe Hindu| 04 August 2020

India is considering measures to prevent trade partners, mainly in Southeast Asia, from re-routing Chinese goods to India with little added value, two government sources said, amid strained ties with Beijing and a push for self-reliance.

India is planning to raise quality standards of imports, impose quantity restrictions, mandate stringent disclosure norms and initiate more frequent checks at ports of entry for goods coming from many Asian countries, the officials said.

The moves will mainly target imports of base metals, electronic components for laptops and mobile phones, furniture, leather goods, toys, rubber, textiles, air conditioners and televisions, among other items.

“Raising duties has a limited impact,” said one of the officials. “Now we want to raise quality standards and also make sure that goods in FTA routes have roots in those countries. So customs would be more vigilant than before.” The government will also discuss raising the value-addition requirement for products imported from those countries from the current level of 20%-40%, the officials said.

‘COVID-induced consumption drop has pushed PVC industry to 2016-17 levels‘Chemical Weekly | 25 August 2020

Demand destruction across sectors brought about by COVID-induced shutdowns has pushed back the PVC sector by around four years.

“The drop in consumption pushed the PVC industry back to 2016-17 levels; it was around 3 million tonnes then and most probably we are likely to end this fiscal year at the same level. In Q1 of the current fiscal there was more than 40% drop in PVC consumption and by the year end we may witness around 10-12% drop in demand,” said Mr. Pulin Ragyagor, Vice President (Business Head-PVC), Reliance Industries Ltd. (RIL). He was speaking at a virtual panel discussion organised by leading German PVC additives major, Baerlocher on the current scenario and future outlook for the Indian PVC sector.

Mr. Ragyagor said the PVC sector in India went through “a unique roller coaster ride” during the past few months when the industry first witnessed very high inventories and prices falling below $700-levels, and later on extremely low inventory levels

and prices regaining $900-levels. “During the early days of lockdown, Indian PVC traders and processors either stopped booking imports or booked very low quantity of imports. But once the industries commenced working, it has led to mismatch in resin availability and induced panic buying,” he pointed out.

“Availability has decreased worldwide due to COVID related shutdowns, leading to drying up of supply chains and this is keeping the prices high currently,” added Mr. N. Krishnamoorthy, Executive Director Commercial, Chemplast Sanmar Ltd.

However, most industry experts speaking at the event expected the industry to return to its pre-COVID levels by 2021. “The demand has been impacted for PVC and we are likely to see a drop in demand in 2020 of anywhere between 5% to 9%. However, 2021 looks like to be a turnaround year,” declared Mr. Jayen Mody, Managing Director, Baerlocher Additives India Pvt. Ltd. “In 2008, during the financial crisis, PVC consumption had dropped by about 5%, but in the following year it bounced back by almost 30%. Even though the current crisis is much deeper and more widespread, we should not be surprised if we see a lot of ground being covered by PVC in the coming year,” he added.

End-use industry trendsSpeaking about trends in end-use areas, Mr. Sanjay Math, Managing Director, Finolex Industries Ltd., said the pipes segment, which accounts for over 70% of Indian PVC market would continue to dictate trends.

The agriculture and real estate sectors are the two major users of PVC pipes and both segments have unique demand drivers and business ecosystems, he said.

Agriculture, being an essential industry, was exempted from the lockdown and so were inputs and

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infrastructure needed for agriculture. The demand from agriculture for pipes was quite robust, led by bountiful crop and government’s support with procurement. Going ahead, the demand after monsoon is expected to be robust given the good and widespread monsoons across the country, said Mr. Math. “We expect demand for PVC pipes from agriculture sector to be much better and possibly even 6-8% more than last year,” he added.

In the real estate sector, there was both demand and supply side constraints. Diminished consumer sentiments, low risk appetite and uncertainty impacted the demand dynamics considerably.

“The COVID pandemic has reduced the demand for housing by almost 40-50%. But it is possibly recovering now as we see traction coming in the real estate sector piping after the lifting of the lockdown. So, we are not so pessimistic about the real estate sector and possibly after the monsoons, it will also grow,” remarked Mr. Math.

Mr. Sudarshan Ganpathy, Senior Vice President (Marketing), DCW Ltd., added that one of the main mechanisms to improve the nation’s GDP would be to invest in infrastructure and construction and that will to some extent help in reviving demand for PVC/chlorinated-PVC in the coming years.

According to Mr. Rajesh Deshpande, Joint VP & Marketing Head-Plastics, DCM Shriram Ltd., the construction sector represents the future of the PVC industry and could be a key driver to reduce the extreme dependence of the Indian PVC industry on the pipes sector.

“Globally, almost 45-50% of total PVC market is accounted for by the construction sector, whereas in India we are still in the nascent stages. The PVC doors & windows market in India is currently a Rs. 15,000-crore market. However, the share of PVC in the

total doors & windows market is only about 12%, so there is huge scope for growth,” said Mr. Deshpande.

“PVC converters who are in the compounding sector have also left their mark and added tremendous value to their businesses. The PVC fraternity should look at various such applications to drive future growth,” he suggested.

According to RIL’s Mr. Ragyagor, in rigid applications there is huge potential for molecularly oriented PVC (PVC-O) given the government’s focus on providing tapped drinking water to everyone and water conservation. Meanwhile, the wood-PVC composites that address environmental concerns, also has very high growth potential. “In flexible applications, there are opportunities in grain storage structures or roofing membranes, waterproofing membranes, geo-membranes, etc. These are established applications outside India, especially in developed markets. The PVC fraternity should explore such possibilities,” observed Mr. Ragyagor.

Competition from alternativesSpeaking about competition to PVC pipes from alternative materials like HDPE, Mr. Math said the replacement rates would be determined by a variety of factors.

HDPE accounts for only about 25% of the total plastic pipes market, with PVC controlling about 69%.

“Any polymer can switch into an application depending on two major factors – advantage in terms of certain quality attributes or ease of installation and price differential. The major disadvantage for HDPE is that it is at least 30-40% costlier than PVC. In the overlapping applications, the option for any other polymer will be considered when the price advantage that PVC enjoys is nullified. Normally the price difference between the two polymers is about $300, but currently the gap has reduced considerably,” informed Mr. Math.

The preference for a particular polymer will also be defined by its availability, he said. In the long run if no new PVC capacities are established, it can constrain supplies. On the other hand, HDPE pipe grade material is not made by every technology. Currently the PE market is focussed more on films, injection moulding, and raffia, and only 10% is used for the pipes sector, he noted.

New PVC capacitiesSpeaking about possibilities of setting up new domestic PVC capacities in view of the severe dependence on imports, Mr. Ragyagor said RIL’s plans for a new PVC plant is “a work in progress”.

“In RIL, investments typically happen in cycles and in the last cycle, PVC missed out as there were huge capacity additions in cracker, polyethylene, other petrochemical products, etc. There were various concerns in terms of availability of chlorine, ethylene, etc. So, whenever we do come up with the project, I believe it would be a more integrated plant. We should be able to announce our capacity as soon as we tie up all the ends,” he revealed.

Chemical Process Piping bags orders worth around Rs. 30-crore during lockdownChemica l Weekly | 25 August 2020

Mumbai-based industrial piping solutions company, Chemical Process Piping (CPP), has bagged combined large orders worth around Rs. 30-crore ($4-mn) from renowned engineering procurement and construction (EPC) companies for critical chemical piping and spray headers/piping for flue gas desulphurisation (FGD) plants in India.

CPP will supply chemical piping solutions to Tata Chemicals, GACL and Nirma, while the spray headers/ piping for FGD plants will be supplied to L&T, among other firms. The company

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claimed it has bagged over 80% of the orders for spray headers and piping for projects across India during the COVID-19 pandemic.

CPP said it had managed to restart operations and bag these orders at a time when industries in India were struggling to restart manufacturing activities. “During unlock-down 1, CPP could restart operations rapidly and the workforce strength reached up to 90% of its original strength. This enabled the company to start operations to meet the market needs. The operations started slow since the new SOPs and rules had to be followed. The workforce number reached 100% capacity by the end July 2020,” informed Mr. Vijay Rajpurohit, Managing Director, CPP.

Chemical Industry Strengthens Ammonium Nitrate Handling NormsChemical Industry Digest| 12 August 2020

The chemical manufacturing industry is bracing up for enhanced supervision and handling norms about substances that are close to explosive grade.

Chemical manufacturers are expecting the government to issue stricter norms for handling of ‘ammonium nitrate (AN),’ the explosive chemical that led to a mini nuclear-like blast in Beirut recently. Even handling of phosphorous is being critically evaluated, sources said. The enhanced norms would impose caps on manufacturing and storage of explosive-grade chemicals, especially AN, depending upon the size of the company, industry sources said.

Also, transportation of AN within India would likely require the transporter to give prior information about the

movement of the material to the local police, the sources said.

The PESO rules specify certain basic security provisions like the construction of a boundary wall around the premises, locking of godowns, deployment of guards, and escorting of consignments in sensitive areas for AN. The sources said AN manufactures are required to file monthly returns, which are supposed to tally with the company’s balance sheet but the supervision requires tightening as not all manufacturers file such monthly returns.

Govt tightens norms for import of certain chemicalsMillennium Post | 12 August 2020

The government tightened norms for import of certain chemicals, which have the potential to adversely affect the environment.

The conditions have been tightened for about 18 chemicals, including carbon tetrachloride, chlorodifluoromethane and dichlorotetrafluoroethane, the Directorate General of Foreign Trade (DGFT) said in a notification.

“The notification amends the policy conditions for imports of various chemicals,” it said.

The Directorate added that importers of the certain chemicals have to submit a copy of the bill of entry within 30 days to the ozone cell in the Ministry of Environment, Forest and Climate Change.

It added that the import of hydrochlorofluorocarbon-141b is prohibited except for feedstock

application. This chemical is used by foam manufacturing enterprises and it is one of the most potent ozone-depleting chemicals after chlorofluorocarbons.

Carbon tetrachloride is used in some industries and dry-cleaning units.

Post Beirut blast, 700 tonnes of ammonium nitrate stored near Chennai set the alarm bells ringingBusiness Line| 06 August 2020

Two days after the devastating blast that ripped across Beirut killing over 135 people, triggered by the 2,750 tonnes of ammonium nitrate stored in a warehouse at the port, concerns have been raised over the 700 tonnes of the chemical stored in a warehouse on Chennai’s outskirts.

In 2015, 37 containers of ammonium nitrate arrived at the Chennai port, imported by Sri Amman Chemicals.

The containers were confiscated by the Customs as the company did not have a licence to import the cargo. Since then it has been lying at Sattva Manali Container Freight Station. The Customs Department is now auctioning the cargo, sources said.

Ammonium nitrate is an odourless crystalline substance commonly used in manufacturing fertiliser.

The highly explosive compound is added to improve the nitrogen content in fertilisers.

Hazardous chemicalB Govindarajan, Chief Operating Officer, Chennai-based Tirwin Management Services, which trains professionals in handling hazardous cargo, said ammonium nitrate that contains more than 0.2 combustible substance is a serious explosive classified as UN 0222 under Division 1.1D.

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“Large quantities and unmonitored storage for a long period appear to be the villain. The Beirut tragedy is an eyeopener since we can’t confidently claim that our ports, airports and other terminals don’t have such material lying around. It is time the authorities initiated audits with safety considerations in mind,” said Govindarajan.

The Central Board of Indirect Taxes and Customs has directed field formations to confirm within 48 hours that all hazardous and explosive material lying in warehouses and ports across the country meet safety and fire standards and present no danger to life and property.

Transport Ministry set to allow use of hydrogen enriched CNG as auto fuelChemical Weekly | 04 August 2020

In a significant boost to promotion of clean fuels, the ministry of road transport and highways has issued a draft notification for inclusion of hydrogen enriched Compressed Natural Gas (HCNG) as automotive fuel. The ministry has sought views from public and all stakeholders for amending the Central Motor Vehicles Rules accordingly.

The use of next generation technology such as H-CNG can lower emissions, while promoting green fuel for automobiles in the country.

“Worldwide hydrogen is being blended (20-30%) with natural gas and then compressed to dispense into vehicles. US, Brazil, Canada, South Korea have

all conducted trials and find that they get reduction in emissions from buses using H-CNG,” said a report by Environment Pollution Prevention and Control Authority (EPCA), the Supreme Court mandated body tasked with taking various measures to tackle air pollution in the National Capital Region.

IOC and Automotive Research Association of India had carried out tests a few years ago with the vehicle engine passing endurance tests.

According to EPCA, H-CNG is a promising technology and can be set up in different locations, such as petrol pumps or bus depots. “The most promising aspect of this technology is that it will allow for the utilisation of the existing infrastructure of CNG buses as well as the piping network and dispensing station. Therefore, it can be seen as the next-gen CNG for cleaner air,” it had said.

Inclusion of hydrogen fuel safety standards

In another development, the Transport Ministry has proposed amendments to the Central Motor Vehicles Rules, 1989, to include safety evaluation standards for hydrogen fuel cell-based vehicles.

The ministry has proposed that hydrogen fuel cell-based vehicles under category M (used for the carriage of passengers) and N (used for the transport of goods – trucks) must adhere to the AIS (Automotive Industry Standard) 157:2020 specifications until the Bureau of Indian Standards (BIS) issues its specifications for the same. It further suggested for the hydrogen fuel specifications for these fuel cell-based vehicles to be as per the ISO (International Organization for Standardisation) guidelines until the BIS issues its specifications for this, as well. The ministry has invited comments and suggestions from all stakeholders, including the general public, on the proposed amendments.

UPL opens global R&D hub in USChemical Weekly | 25 August 2020

Agrochemicals major, UPL Ltd., has opened a new research and development (R&D) hub in Research Triangle Park, North Carolina, USA. The company said its new ‘OpenAg Center’ will help to leverage its R&D capabilities in partnership with other innovation-based companies to characterise, develop and commercialise new sustainable agriculture solutions.

The new centre consists of high-tech laboratories and a newly recruited team of scientists able to quickly validate a wide range of technologies – from the latest array of biologically-inspired approaches to new chemi-stry-based innovations. The centre boasts of climate-controlled research glasshouses as well as dedicated space for formulation, analytical chemistry and biochemistry laboratories to support application, delivery, characterisation, mode of action and resistance research. “Combining the agility and innovation of startups with the flexible partnership model, scientific, R&D, IP, field development and registration expertise of UPL, the OpenAg Center will fuel a faster, more efficient process of getting technologies tested, approved and out in the field,” commented Mr. Mark Singleton, head of new technologies for UPL.

Grasim Industries signs LLP agreement with Cleanmax to set up wind power plant in KarnatakaThe Economic Times | 07 August 2020

Mumbai: Aditya Birla Group’s flagship company, Grasim Industries has formed a limited liability partnership agreement for a capital of Rs 73 crore with Cleanmax Enviro Energy Solutions to establish and operate 32.4 megawatt wind power plant in the State of Karnataka.

24 | Alkali Bulletin August 2020

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“The company has executed a LLP agreement with Cleanmax Enviro Energy Solutions Private Limited (Generator Partner) and Power Purchase Agreement with CleanMax Power 3 LLP (Power Producer), Grasim Industries said in a BSE filing.

Total Capital of the LLP will be Rs. 73.42 crore which will be contributed by Grasim as Rs.19.09 crore (26 per cent) and generator partner, Cleanmax as Rs. 54.33 crore (74 per cent) in phases. Indicating that Grasim has a shareholding of 26 per cent in the LLP and Cleanmax has around 74 per cent share in the LLP.

Cleanmax, a Mumbai-based renewable energy company, recently signed a joint venture with USA-based Cargill, to

set up up a 15 MW wind-solar hybrid power plant in the state of Karnataka.

As per the agreement with Grasim the power generated will be supplied exclusively to Grasim Industries under the captive rules and the Project will be operated by the generator partner, Cleanmax.

“Generator shall have rights to operate the LLP and the said project. Grasim shall have rights over reserved matter,” the statement said.

Birla Group, that manufactures textile materials including viscose staple fibre, chlor-alkali, linen and insulators in India. Its subsidiaries are UtraTech Cement and Aditya Birla Capital.

Punjab govt. to divest stake in Punjab Alkalies & ChemicalsChemical Weekly | 04 August 2020

The Punjab government has issued a global invitation for ‘Expression of Interest’ (EoI) for the strategic

disinvestment of the entire 33.49% equity shareholding in Punjab Alkalies & Chemicals Ltd. held by Punjab State Industrial Development Corporation Ltd. (PSIDCL).

Currently, PSIDCL is the promoter of the company. The public holds 66.51% stake; this includes 45 high net worth individuals holding around 35%.

Reliance overtakes Exxon to become world‘s No.2 energy firmChemical Weekly | 04 August 2020

Reliance Industries Ltd. (RIL) has toppled Exxon Mobil Corp to become the world’s largest energy company after Saudi Aramco, as investors piled into the conglomerate lured by the Indian firm’s digital and retail forays. Reliance, which operates the world’s biggest oil refinery complex, rose 4.3% in Mumbai on July 24, taking its market value to $189-bn, while Exxon Mobil lost about $1-bn. Aramco, with a market capitalisation of $1.75 trillion, is the world’s biggest company.

Alkali Bulletin August 2020 | 25

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NOTIFICATIONS/PRESS RELEASES/MEMORANDA

1. MTR Initiation Notification No. 09/2020 dated 03.08.2020 issued by DGTR, DoC, Ministry of Commerce and Industry for change of name of producer/exporter from Korea RP regarding ADD imposed on imports of (PVC) Paste Emulsion Resin" originating in or exported from Korea RP, Taiwan, China PR, Malaysia, Thailand, Russia, and EU http://www.dgtr.gov.in/sites/default/files/English%20Initiation%20Notification%20PVC%20MTR.pdf

2. MTR Initiation Notification No. 02/2020 dated 05.08.2020 issued by DGTR, DoC, Ministry of Commerce and Industry for change of name of producer/exporter from Korea RP regarding ADD imposed on imports of (PVC) Paste Emulsion Resin" originating in or exported from Korea RP, Taiwan, China PR, Malaysia, Thailand, Russia, and EU http://www.dgtr.gov.in/sites/default/files/PVC%20INTERESTED%20PARTIES_0001.pdf

3. Draft Environment Impact Assessment Notification (EIA), 2020 - S.O 1199(E)- dated 23/03/2020 as Updated on 16/08/2020 by Ministry of Environment, Forest and Climate Change http://moef.gov.in/wp-content/uploads/2020/08/Gaztte_EIA2020-1.pdf

4. Anti-Dumping Original Investigation concerning imports of “Soda Ash” from Turkey and USA

a. Notification dated 21.08.2020 issued by Ministry of Commerce and Industry, Department of Commerce, Directorate General of Trade Remedies regarding Preliminary Findings in the matter of anti-dumping investigation concerninig imports of

“Soda Ash” originating in or exported from Turkey and USA http://www.dgtr.gov.in/sites/default/files/NCV%20English%20Soda%20Ash.pdf

b. Notification dated 28.08.2020 issued by Ministry of Commerce and Industry, Department of Commerce, Directorate General of Trade Remedies regarding Anti-Dumping Original Investigation concerning imports of “Soda Ash” from Turkey and USA-Initiated on 22/1/2020 http://www.dgtr.gov.in/sites/default/files/Soda%20Ash%20-List%20of%20interested%20parties%20%26%20sharing%20of%20NCV%20submission%20thereof-.pdf

Alkali Bulletin August 2020 | 27

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GOVERNMENT OF INDIA MINISTRY OF FINANCE

DEPARTMENT OF REVENUE CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS, NEW DELHI

CUSTOMS NOTIFICATION No. 25/2020 dated 17th August, 2020

Whereas, the designated authority vide initiation notification No. 7/1/2020-DGTR, dated the 7th February, 2020, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 7th February, 2020, has initiated review in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act) and in pursuance of rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of continuation of anti-dumping duty on imports of 'Caustic Soda' falling under Chapter 28 of the First Schedule to the Customs Tariff Act, originating in or exported from People's Republic of China and Korea RP, imposed vide notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 42/2015-Customs (ADD), dated the 18th August, 2015, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 640(E), dated the 18th August, 2015, and has requested for extension of the said anti-dumping duty in terms of sub-section (5) of section 9A of the Customs Tariff Act;

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, read with rules 18 and 23 of the said rules, the Central Government hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 42/2015-Customs (ADD), dated the 18th August, 2015, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 640(E), dated the 18th August, 2015, namely:-

In the said notification, after paragraph 2, the following paragraph shall be inserted, namely: -

"3. Notwithstanding anything contained in paragraph 2, the anti-dumping duty imposed under this notification, with respect to People's Republic of China and Korea RP, shall remain in force up to and inclusive of the 17th November, 2020, unless revoked, superseded or amended earlier.".

[F. No. 354/92/2011-TRU (Pt-1)]

Sd/- (Gaurav Singh)

Deputy Secretary to the GoI

28 | Alkali Bulletin August 2020

Continuation of Anti dumping Duty on Import of Caustic Soda from China PR and Korea RP

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1 Alkali Imports (MT)

KEY INDICATORS JULY 2020Qty (Jul 2020) Qty (Jul 2019) % Difference

(Y-o-Y)Qty (Jun 2020) % Difference

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

FY 2019-20 (upto Jul)

% Difference Total Imports 2019-20

Caustic Soda 21,173 46,739 -54.7% 24,076 -12.1% 110,366 135,945 -18.8% 374,976

Soda Ash 49,055 93,876 -47.7% 29,416 66.8% 162,744 351,518 -53.7% 946,031

Average Price in Jul 2020: Caustic Soda - 268 USD/MT (Lye); Soda Ash - 204 USD/MT

2 Foreign Trade - Merchandise (US$ billion)

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

Imports 28.5 39.8 -28.4% 88.9 166.8 -46.7% 467.2

Exports 23.6 26.3 -10.2% 75.0 107.4 -30.2% 314.3

Surplus/Deficit -4.8 -13.4 -14.0 -59.4 -152.9

Jul 2020# Jul 2019 % Difference

Mining 87.2 100.2 -13.0%

Manufacturing 118.8 133.7 -11.1%

Electricity 166.3 170.5 -2.5%

Jul 2020# Jul 2019 % Difference

Chemical & Chemical Products 120.2 124.6 -3.5%

Textiles 97.0 113.8 -14.8%

Paper & Paper Products 59.2 94.9 -37.6%

Basic Metals 147.4 164.7 -10.5%

Jul 2020 Jul 2019 % Difference

India NA NA -

Russia 102.8 111.6 -7.9%

Brazil 91.2 94.1 -3.1%

European Union (27) NA 105.3 -

USA 96.2 104.8 -8.2%

3 Exchange Rate (Rs./USD)

Jul 2020 Jun 2020 % Difference

Net Foreign Direct Investment

3,269 -838 -

Net Portfolio Investment

1,247 1,936 -35.6%

Total 4,516 1,098 311.3%

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)

Jul 2020 Jun 2020 May 2020

74.99 75.73 75.66

10 Consumer Price Inflation - Industrial Workers (Base: 2001=100)

Jul 2020 Jul 2019 % Difference

336 319 5.3%

Jul 2020# Jul 2019 % Difference

118.1 131.8 -10.4%

Jul 2020 Jul 2019 % Difference

119.9 132.6 -9.6%

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

Jul 2020 Jun 2020 May 2020

10 4 13

13 Foreign Exchange Reserves (US$ billion)

Jul 2020 (as on 31 Jul 2020)

Jun 2020 (as on 26 Jun 2020)

% Difference

535 507 5.5%

14 Fiscal Deficit (Apr 2020-Jul 2020)

% of Actuals to Budget Estimates FY 2020-21

% of Actuals to Budget Estimates FY 2019-20

103.1% 77.8%

15 Purchasing Managers Index (PMI)

Jul 2020 Jun 2020 May 2020

46.0 47.2 30.8

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.

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

Jul 2020 Jul 2019 % Difference

154.2 144.2 6.9%

Data Source: GOI, OECD, IHS & AMAI Research

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Published by ALKALI MANUFACTURES ASSOCIATION OF INDIA 3rd Floor, Pankaj Chambers, Preet Vihar Commercial Complex, Vikas Marg, Delhi 110092 Ph: 011-22432003, 22410150 Email:[email protected]; [email protected]; website: www.ama-india.org

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