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Report of the Sub-Group on Petrochemicals for the 12 Five Year

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Report of the Sub-Group on Petrochemicals for the 12 Five Year Report of the Sub-group on Petrochemicals for the 12th Five Year Plan Sub-group on Chemicals & Petrochemicals for the 12th Five Year Plan Department of Chemicals & Petrochemicals, Government of India Submitted to Working Group on Chemicals & Petrochemicals for the 12th Five Year Plan, Government of India January 2012 INDEX REPORT OF THE SUB-GROUP ON PETROCHEMICALS FOR THE 12TH FIVE YEAR PLAN ...................................................................................................................................... 0 1 EXECUTIVE SUMMARY............................................................................................ 14 1.1 PREAMBLE ............................................................................................................................ 14 1.2 GLOBAL SCENARIO ................................................................................................................ 14 1.3 PLASTICS .............................................................................................................................. 16 1.4 SYNTHETIC RUBBERS ............................................................................................................ 18 1.5 FIBRE INTERMEDIATES ........................................................................................................... 18 1.6 SYNTHETIC FIBRES ................................................................................................................ 19 1.7 SURFACTANTS & OTHER CHEMICALS...................................................................................... 19 1.8 INDIAN SCENARIO .................................................................................................................. 20 1.9 BUILDING BLOCKS ................................................................................................................. 21 1.10 PLASTICS .............................................................................................................................. 22 1.11 SYNTHETIC RUBBERS ............................................................................................................ 23 1.12 FIBRE INTERMEDIATES ........................................................................................................... 24 1.13 SYNTHETIC FIBRES ................................................................................................................ 24 1.14 SURFACTANTS....................................................................................................................... 25 1.15 OTHER BASIC ORGANIC CHEMICALS....................................................................................... 26 TH 1.16 SUMMARY OF CONSUMPTION AND CAPACITY IN 11 PLAN....................................................... 28 TH 1.17 SUMMARY OF CONSUMPTION AND CAPACITY FOR 12 PLAN.................................................... 29 1.18 POLICY INITIATIVES................................................................................................................ 29 2 ROLE OF PETROCHEMICALS IN THE NATIONAL ECONOMY ............................ 35 2.1 WHAT ARE PETROCHEMICALS ................................................................................................ 35 2.2 POSSIBILITIES FROM C1 TO C8............................................................................................... 35 2.3 VALUE ADDITIONS ................................................................................................................. 40 2.4 PETROCHEMICALS AS “ENABLERS” ......................................................................................... 42 2.5 BENEFITS TO "AAM-AADMI" (COMMON MAN)........................................................................... 44 2.6 EMPLOYMENT........................................................................................................................ 50 2.7 CONSERVATION OF ENERGY .................................................................................................. 52 2.8 ADVANTAGES OF PLASTIC PIPES ............................................................................................ 55 2.9 ADVANTAGES OF PVC WINDOWS............................................................................................ 58 2.10 PLASTICS USE IN AUTOMOTIVES............................................................................................. 61 2.11 FURNITURE & BUILDERS WARE: MAJOR WOOD CONSUMERS ................................................... 63 2.12 PETROCHEMICALS USE IN AGRICULTURE: PLASTICULTURE & WATER MANAGEMENT................. 64 2.13 MICRO IRRIGATION ................................................................................................................ 65 2.14 POTENTIAL FOR EMPLOYMENT GENERATION ........................................................................... 68 2.15 SUMMARY OF BENEFITS TO THE INDIAN ECONOMY & FARMERS BY BRINGING 10.08 MILLION HECTARE AREA UNDER MICRO IRRIGATION DURING 12TH PLAN PERIOD.................................... 69 3 GLOBAL SCENARIO OF PETROCHEMICALS ....................................................... 71 3.1 GROWTH OF GLOBAL PETROCHEMICAL INDUSTRY ................................................................... 71 3.2 GLOBAL ETHYLENE & PROPYLENE SCENARIO ......................................................................... 73 3.3 POLYMERS ............................................................................................................................ 76 3.4 SHIFT OF INDUSTRY FROM WOS TO EOS ............................................................................... 77 3.5 GLOBAL PETROCHEMICAL TRADE ........................................................................................... 80 3.6 ALTERNATIVE FEEDSTOCK – SHALE GAS, COAL & BIO-FEEDSTOCKS ....................................... 81 4 MIDDLE EAST AND CHINA...................................................................................... 91 4.2 FEEDSTOCK SUBSIDY IN GCC & ITS IMPLICATIONS FOR THE INDIA-GCC FTA .......................... 92 4.3 DOMINANCE OF CHINA ......................................................................................................... 103 TH 4.4 CHINA’S 12 5YR PLAN FOR THE PETROCHEMICALS INDUSTRY.............................................. 105 1 4.5 STRATEGIC VISION .............................................................................................................. 105 4.6 MAJOR TASKS ..................................................................................................................... 106 4.7 PETROCHEMICAL INDUSTRY ................................................................................................. 111 5 ASIAN PETROCHEMICAL INDUSTRY .................................................................. 121 5.2 JAPANESE PETROCHEMICAL INDUSTRY ................................................................................. 121 5.3 KOREA PETROCHEMICAL INDUSTRY...................................................................................... 123 5.4 OUTSTANDING ISSUES – KOREAN PETROCHEMICAL INDUSTRY ............................................... 125 5.5 MALAYSIA PETROCHEMICAL INDUSTRY ................................................................................. 127 5.6 SINGAPORE PETROCHEMICAL INDUSTRY............................................................................... 130 5.7 THAILAND PETROCHEMICAL INDUSTRY.................................................................................. 131 5.8 TAIWAN PETROCHEMICAL INDUSTRY..................................................................................... 132 6 INDIAN PETROCHEMICAL INDUSTRY ................................................................. 135 6.1 GENESIS OF INDIAN PETROCHEMICAL INDUSTRY ................................................................... 135 6.2 SWOT ANALYSIS OF INDIAN PETROCHEMICAL INDUSTRY....................................................... 137 6.3 COMPETITIVENESS OF INDIAN PETROCHEMICAL INDUSTRY..................................................... 139 6.4 POLYETHYLENE ................................................................................................................... 142 6.5 EVA ................................................................................................................................... 146 6.6 POLYPROPYLENE................................................................................................................. 147 6.7 PVC ................................................................................................................................... 149 6.8 POLYSTYRENE – GPS /HIPS AND EPS ................................................................................ 152 6.9 PET.................................................................................................................................... 154 6.10 POLYCARBONATE ................................................................................................................ 157 6.11 ACRYLONITRILE BUTADIENE STYRENE (ABS)........................................................................ 158 6.12 STYRENE ACRYLONITRILE (SAN) ......................................................................................... 159 6.13 SYNTHETIC DETERGENT INTERMEDIATES (SURFACTANTS), LAB, EO ..................................... 160 6.14 SYNTHETIC RUBBERS (ELASTOMERS)................................................................................... 163 6.15 1, 3-BUTADIENE (BD) .........................................................................................................
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