Page 134 - CW E-Magazine (11-2-2025)

Point of View
FOR YOUR COMPETITIVE AND DIRECT IMPORTS FROM OUR ACCREDITED OVERSEAS
MANUFACTURERS FOR THE ITEMS AS UNDER:-
In summary, while the tax break to the salaried class will leave them with additional cash on hand, inflation may well eat away the lunch!
1-Bromo-3-Chloropropane Hydroxy Acetone
Not much for the chemical industry, per se
There was nothing specific in the Budget for the chemical industry. Hopes for a Production Linked Incentive (PLI) scheme, akin to 2,4-Xylidine Isobutyryl Chloride
that given for a few other sectors, were dashed once again. This is not surprising to this columnist, as the industry’s criticality finds 2,6-Xylidine Malononitrile
little resonance in government, and there is a feeling (articulated publicly) that the industry seems to be doing well enough without any 2-Propoxyethyl Chloride
governmental support. Piperazine Anhydrous
4-Nox Pivaloyl Chloride
Some sections of the industry – notably, petrochemicals and polymers – were hopeful of an increase in import tariffs to combat the
threat of cheap imports, especially from China. This has not been forthcoming, meaning the industry will have to continue to battle the 5-Ethyl-2-Methylpyridine Polyglyceryl-10-Caprylate
consequences of large overcapacity in most value chains. Not surprisingly, stocks of most major chemical companies declined by up to Acetic Acid Polyglyceryl-10-Laurate
4% following the Budget.
Alpha Picoline Polyglyceryl-10-Oleate
The best news for the industry stemmed from plans for rationalisation of rules and regulations as part of a broader approach to Chloroacetyl Chloride Polyglyceryl-4-Laurate
improve the ‘ease of doing business.’ Details of these are to come, and much will depend on the fine print. In any case, what is of as much Chlorosulfonic Acid Polyglyceryl-4-Oleate
significance to potential investors in chemical projects are local and state-level regulations. These need urgent attention too.
Cyanuric Chloride Potassium Carbonate
While the capex budgeted for infrastructure development is 11.1% higher than in the previous year, thisis lower than in previous Diisopropyl Ether Potassium Hydroxide
years. The argument seems to be: “we have done our bit for several years, now is the turn of the private sector to chip in.” Only time
will tell if this will come about. Ethyl-2-Chloro Acetoacetate Propionyl Chloride
Gamma Picoline Sulfuric Acid
Import duties were slashed on some life-saving drugs, though the request for a similar reduction on some orphan drugs required to
treat rare conditions did not find acceptance. Hydrobromic Acid Sulfuryl Chloride
Hydrochloric Acid Thionyl Chloride
Boost to urea capacity
The FM also announced the setting up of a new gas-based urea plant with acapacity of 1.27-mtpa at Namrup in Assam. When Hydroquinone Thiophenol
completed this will be the eighth urea plant to come up in the country since 2019 and marks a revival of urea production that was
languishing for nearly two decades even as demand for the cheap nitrogenous fertiliser kept rising. While six plants (each with similar
capacity) were commissioned between January 2019 and November 2022 at Gadepan (Rajasthan), Ramagundam (Telangana), Panagarh PLEASE CONTACT WITH YOUR SPECIFIC REQUIREMENTS
(West Bengal), Gorakhpur (Uttar Pradesh), Barauni (Bihar) and Sindri (Jharkhand), the seventh at Talcher (Odisha) – the only one based
on coal – is about 65% complete. CHEMET

The new capacities and the supplies of nano-urea have contributed to a steep decline in urea imports. Between FY12 and FY24, India’s
domestic urea production rose from 22-mt to 31.4-mt, and imports fell from 7.8-mt to 7-mt, after peaking at 9.8-mt in FY21. Between
April-December FY25, urea imports recorded a further 29% drop to 4.3-mt, from 6.1-mt in the same period of FY24. HEAD OFFICE : Span Centre, 2nd Floor, Ramakrishana Mission Road, Santacruz(West), Mumbai - 400 054, INDIA.
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Aspirational nuclear power targets BRANCH OFFICES
The FM has set a target of building 100-GW of nuclear energy capacity of by 2047, which seems aspirational and disconnected from AHMEDABAD OFFICE : 1101, Safal Prelude, HYDERABAD OFFICE : Flat No. 104, K1 Primo,
ground realities. The interim target for FY32, set by this government in 2016, was 22.5-GW, and current installed capacity is a piffling Corporate Road, Nr.Prahladnagar Garden,
8-GW, built over 75 years since Independence. A Nuclear Energy Mission is also to be constituted, with a provision of Rs. 20,000-crore Kondapur X Roads, Hanuman Nagar, Kondapur,
for research into the development of Small Modular Reactors, which format is seeing global attention. Anandnagar, Ahmedabad - 380 015, INDIA. Hyderabad-500 084, Telangana, INDIA.
Tel : +91-79-40370725
Tel : +91-40-4856 5970 / 71
How much of an impact all of this will have remains to be seen. Nuclear energy currently accounts for just 1.8% of India’s power E-Mail : chemetahmedabad@chemetindia.com
generation capacity of 462-GW and has failed to increase share in any impactful manner for many reasons, including the NIMBY syndrome NEW DELHI OFFICE : 214, Hans Bhavan, E-Mail : chemethyderabad@chemetindia.com
to locating them. Much of the recent attention on zero-carbon power, not just in India, has been directed to solar and wind – both of which Wing No.1, Bahadurshah Zafer Marg, KOLKATA OFFICE : Sharma House, 3rd Floor, 1/2, Lord
have seen a significant boost in the last decade. While India must focus on all energy options available (including coal and natural gas) to New Delhi - 110 002, INDIA. Sinha Road, Kolkata - 700 071, INDIA.
overcome the ‘energy-poverty’ of its citizens, it is pertinent to note that nuclear power plants are expensive and take years before being Tel : +91-11-45751865
certified to be safe for operations. This makes nuclear power amongst the most expensive of energy options today – prices in India are E-Mail : chemetdelhi@chemetindia.com Tel : +91-33-22827247 / 22826511
at least three times higher than for solar, and the latter continues to fall. E-Mail : chemetkolkata@chemetindia.com
CHENNAI OFFICE : 8-J, Century Plaza, 560-562,
While the FM deserves credit for boosting the sentiments of the salaried, keeping macro-economic parameters at comfortable levels, Anna Salai, Teynampet, Chennai - 600 018, INDIA.
and for resisting the temptation to splurge, she may well find Trump raining on her victory parade! Tel : +91-44-24342245 / 24349301
Ravi Raghavan E-Mail : chemetchennai@chemetindia.com

134 Chemical Weekly February 11, 2025

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