Page 172 - CW E-Magazine (29-4-2025)

Special Report Special Report

global supply chains, cause shortages Europe and negatively affect patient reduce critical medicine shortages Methanol – India’s missed opportunities and
of critical and essential medicines and access and security of supply,” pointing and create better security of supply
undermine patient access,” said Medi- to the Urban Wastewater Treatment throughout the EU. It provides mea- recommended strategies
cines for Europe, in an April 8, 2025, Directive, which requires producers sures to address supply chain vulner-
statement. “This is why advanced of medicines and cosmetics to fi nance abilities for critical medicines and to ethanol is an important Why low capacity
economies have agreed on World Trade at least 80% of treatment to eliminate reduce Europe’s dependency on sin- building block, extensively utilisationand large N.S. VENKATARAMAN
Organisation (WTO) rules to exempt micropollutants from urban waste- gle suppliers and third countries (i.e., Mused as feedstock in mul- import dependence? Director
pharmaceuticals from tariffs.” water, and restrictions on substances non-EU countries providing pharma tiple application sectors. In recent The capacity utili- Nandini Consultancy Centre
required for manufacturing. ingredients and products). It also times, the use of methanol as fuel has sation of Indian metha- Chennai
Medicines for Europe issued a fi ve- 3. Accelerate industrial policies such proposes measures to address market been increasingly highlighted all over nol industry is low, as Email: nandinichemical@gmail.com
step action plan that it is calling on EU as the Critical Medicines Act, which limitations faced by EU member the world. Indian units are un- delivered price of imported LNG in India
policymakers to take to support the seeks to improve the availability, states, whereby certain EU countries able to compete with is around $9.6 per mmBtu, as per the
generics and biosimilars industry in supply and production of critical do not have access to medicines of Unfortunately, India has not been the imported methanol in price terms. Platts West India Marker, which is the
Europe. “Following the meeting, Medi- medicines within the EU, and the common interest. Among the mea- able to exploit the investment opportu- benchmark price for LNG delivered to
cines for Europe calls on the EU and Biotech Act, which proposes tar- sures proposed under the Critical nities based on methanol to any reason- As methanol is produced from natu- India.
President Von der Leyen to focus on geted actions to boost biotechno- Medicines Act are means to facilitate able level due to several constraints. ral gas and domestic production of
strengthening the EU manufacturing logy and biomanufacturing in the investments for companies that in- natural gas is inadequate and stagnant, The feasibility of boosting methanol
competitiveness as per our fi ve-point EU. Medicines for Europe says crease EU manufacturing of critical Production and import dependence Indian methanol units have to depend production at globally competitive cost,
plan for pharmaceuticals while remain- these measures, which are now medicines and incentives for supply There arefi ve units in India with on imported LNG as feedstock for the based on imported LNG, is unrealistic.
ing open to international trade and proposed, will be necessary as state chain diversifi cation and resilience capability for the production of methanol production of methanol. Consequently, it appears India would
cooperation,” it said in its April 8, 2025, aid and tax deferments “to counter through public procurement prac- and three of them are not operating at- continue to be a net importer of metha-
statement. “We are committed to continu- the effect of the competitiveness tices of EU member states that sup- present. The overall capacity utilisation This LNG must fi rst be liquefi ed, nol for long time to come.
ing this partnership and appreciate the shock caused by potential tariffs.” port EU-based production of critical of the methanol industry in India is just brought to India by ship and then re-
outreach from the European Commission In March 2025, the European Com- medicines. around 31%, considering the installed gasifi ed. Further, the re-gasifi ed gas Proposed coal based methanol
on this important matter. mission proposed the Critical Medi- 4. Adopt the EU pharma legislation capacity of all fi ve methanol units. has to be transported by pipeline to the projectsand R&D efforts
cines Act as policy measure in line with balanced regulatory incentives user industry. This makes landed cost To overcome the constraints due
The fi ve action areas by Medicines with the European Health Union, that healthcare systems can afford and India presently imports around 3.1-mt of LNG comparatively high, relative to to the high landed cost of imported
for Europe are outlined below. which seeks to ensure that all EU citi- clear rules to allow Day-1 competi- of methanol annually and imports are the price of natural gas available for LNG and to make methanol adequately
zens have access to necessary medi- tion after patent expiry and accelerate steadily increasing at around 7% per methanol production in natural gas available from domestic sources,
1. Continue diplomatic efforts to pre- cines. The Critical Medicines Act the digital transformation of regula- annum. Most of these imports are from rich countries. For example, while the Government of India proposes to
.

vent the imposition of tariffs on EU is an industrial policy toolbox that tion and of the sector. natural gas rich countries in the Middle average price of natural gas in Qatar set up coal-based methanol projects,
medicines and active pharmaceutical complements the proposed reform of 5. Build EU action on strategic auto- East. is between $2-4 per mmBtu, the since India has abundant availability

ingredients. the EU’s pharmaceutical legislation nomy, championing EU solidarity of coal.
2. Review complex legislation that and the enhanced role of the Euro- over division and most importantly, 3,500
Medicines for Europe says “under- pean Medicines Agency in manag- prioritizing the access and security of 2,816 3,066 Coal India Ltd. (CIL) is to set up
mine pharmaceutical activities in ing drug shortages. The Act aims to medicines. 3,000 a coal-to-methanol plant (capacity:
Target Your Market More Effectively 2,500 2,398 2,050-tpd, tonnes per day) at the Rani-
ganj Coal Complex at Raniganj, West
IndiaChemTrade 2,220 Bengal, utilising coal from the Rani-
Free for subscribers of Chemical Weekly 2,000 ganj coalfi elds.
IndiaChemTrade provides consolidated trade statistics of India. The information provided here is based on
the annual trade data published by the Directorate General of Commercial Intelligence and Statistics, Government of India. The 1,500 NLC India Ltd. is to set up
database can be searched by: Chemical Name/Harmonised Code to obtain the consolidated trade (import or export) in that item; or lignite-to-methanol project (1,200-tpd),
by Country to obtain the trade (import or export) in all chemicals and related products between India and that country. 1,000 at project cost of Rs.4,400-crore in
Tamil Nadu.
ChemXchange 500
Open to all – no subscription required A joint venture between CIL and
ChemXchange – the chemical exchange with a difference – is where you can identify your buyers and supplyers on-line, any time. 0 GAIL (India) Ltd. is to set up a coal
Listing in this unique platform is free to all advertisers in the print version of Chemical Weekly for a period of 12 months. FY21 FY22 FY23 FY24 gasifi cation project, to produce 80,000-
For more information contact: 022-24044471 / 72 Nm per hour of synthesis natural gas
3
Email: corporate@chemicalweekly.com or log on to chemicalweekly.com Fig. 1: India imports of methanol, kilotonnes (SNG) using surface coal gasifi cation

172 Chemical Weekly April 29, 2025 Chemical Weekly April 29, 2025 173

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