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COLLABORATION Deepak Nitrite sets up R&D Centre in NCL campus Deepak Nitrite Ltd. search services,” a state- (DNL) and the National ment issued by DNL said. CORRIGENDUM Chemical Laboratory Punjab Chemicals (NCL), Pune have en- The DRDF will be the tered into a memoran- first facility to be set up in buyout of IA & IC dum of understanding the newly opened ‘NCL In- (MOU) on 10 March novation Park,’ which is an In the issue of Chemical Weekly 2006, that will allow DNL over 43,000-sq. m. facility dated 7 March 2006 (p. 120), the cost and NCL to work closely being developed by the of acquisition of IA & IC, a formulation together in identifying NCL to support the birth, unit, by Punjab Chemicals has been and pursuing R&D op- growth and expansion erroneously mentioned as Rs. 5-lakh. portunities of mutual in- plans of research and terest where fruitful and Deepak Mehta knowledge-based busi- The correct value is Rs. 5-crore. synergistic collaboration can be ness entities through critical stages of achieved. their growth by providing ready-to-oc- The error is regretted. cupy space with easy access to know- As part of this MOU, DNL has set up ledge centers (like NCL), knowledge Editor an R&D centre within the ‘NCL Innova- workers, business networks and other tion Park’ in close vicinity to NCL, in or- resources. “The NCL Innovation Park will oper- der to leverage the expertise and facili- ate with the public good in mind, even ties of NCL. The R&D centre has been The park shall also be home to the though it will be privately funded and will incorporated as the ‘Deepak Research & ‘Venture Center’, a business incubator. have private organizations occupying it. Development Foundation’ (DRDF), a fully- This will initially occupy 10,000-sq. ft. of We understand that the environment and owned subsidiary of DNL, and was inau- built up area and aim to nucleate and culture at NCL Innovation Park will be gurated by Dr. R.A. Mashelkar, Director- nurture technology and knowledge-based different than that of an institute like NCL. General, CSIR. Dr. S. Sivaram, Director, enterprises. The synergy of industrial and public re- NCL, Prof. M.M. Sharma, Chairman, of search laboratory working hand in hand NCL Research Council, Dr. L.K. Dorai- ‘New dimension to innovation and will be beneficial to both and ultimately swamy and Dr. Paul Ratnasamy, former- technology creation’ to the customers,” said Dr. Sivaram. Directors, NCL, were also present at the Speaking at the inauguration of DRDF, inaugural function. Mr. Deepak Mehta, MD, DNL said, “We Access to ‘mind space’ of NCL are very happy with this partnership as Speaking on the occasion, Dr. New model for public-private partner- it adds a new dimension to innovation Mashelkar congratulated DNL and NCL ships and technology creation at DNL. At on taking this initiative and said that “This agreement between DNL and Deepak Nitrite, R&D and marketing have companies occupying the NCL Innova- NCL will represent a new model for pub- been the two drivers of growth. tion Park would actually have the privi- lic-private partnerships wherein the re- lege of having access to the “mind space search expertise, inventive spirit and We have always used home grown of NCL” which was something much more resources of a leading publicly funded technologies to fuel our growth. This valuable than the physical resources of research laboratory and the process en- partnership will give a further boost to NCL. gineering and development skills, manu- our technology development activities facturing expertise and business in- and our foray into contract research and He hoped that both DNL and NCL sights of an established private sector outsourcing. We also hope that this part- would use this opportunity to work to- company will be combined to develop nership will lead to the creation of valu- gether on daring and innovative projects innovative new processes and products, able intellectual property and know-how with the potential of creating long-term while also delivering end-to-end re- that will benefit both organizations.” value for all.

122 Chemical Weekly March 21, 2006 Top Stories

SUSTAINABLE RURAL DEVELOPMENT ICRISAT strengthens partnerships with the private sector The International Crops Research Insti- a valuable development partner led to the Madhya Pradesh and Boondi district of tute for the Semi-Arid Tropics (ICRISAT), formation of the ‘Sorghum and Pearl Millet Rajasthan. In a recently initiated project, through its ‘Agri Science Park’, has strength- Hybrid Parents Research Consortia’ with 16 ICRISAT is working on an NRM project in ened its partnerships with the Confedera- private seed companies becoming consor- Eruvadi village of Tirunelveli district in Tamil tion of Indian Industry (CII) to work together tia members for sorghum, 18 for pearl mil- Nadu, in collaboration with the TVS Agri- on improved natural resource management let, and 11 being common for both the crops. Sciences Research Institute. Further, ICRISAT for sustainable rural development. Recently, Products developed with consortia grants has also been collaborating with private sec- ICRISAT and CII jointly organized a workshop are available freely to the public sector. The tor companies to achieve crop diversifica- for finding ways to collaborate on sustain- ‘Biopesticides Research Consortium’ (BRC), tion and market linkages and employment able rural development, presided by the with 11 biopesticide manufacturers as mem- generation in the watersheds. This is by grow- Andhra Pradesh Agriculture Minister, Mr. N bers, is meant to develop, promote and com- ing medicinal and aromatic plants, develop- Raghuveera Reddy, who promised the State mercialize the use of biopesticides by farm- ing commercial products and marketing government’s support for the partnership. ers. The partnership research will validate them. Biodiesel plantations are also being According to Dr. William Dar, Director-Gen- protocols for low-cost, commercial-scale incorporated in ICRISAT-led watershed eral, ICRISAT, the institute was the first production of microbial biopesticides deve- projects. The collaboration with CII will among the 15 international agricultural re- loped at ICRISAT, and will promote agricul- greatly enhance ICRISAT’s collaboration with search centers under the Consultative Group tural practices that enable low-cost crop the private-sector. Initially ICRISAT will be on International Agricultural Research protection. The private sector partners will involved with the NRM component of CII’s (CGIAR) to initiate partnerships with the pri- market the biopesticides. ICRISAT is already project in Dungarpur district of Rajasthan. vate sector. This initiative has yielded suc- partnering with private sector partners for The CII-industry group on Dungarpur is tak- cessful results, benefiting the poor and mar- natural resources management (NRM) ing up business initiatives, which would lead ginal farmers of the semi-arid tropics. “We through watershed development. The insti- to overall sustainable development of the strongly believe that collaborative arrange- tute has been working with Sir Dorabjee Tata district. CII also hopes to start a similar ments and strategic alliances are the ways Trust to scale-up farmer’s participatory wa- project in Andhra Pradesh, an initiative in of winning organizations. Our collaborations tershed development in Guna district of which ICRISAT could participate. are geared towards helping mobilize cutting edge science and technology for the well- SEMINAR being of the poor in the semi-arid tropics of Power situation in Maharashtra draws Asia and sub-Saharan Africa, said Dr. Dar. response from industry Agri Science Park In view of the crippling power situation in Maharashtra, the Indian Chemical Manu- The Agri-Science Park at ICRISAT is the facturers Association (ICMA) organized one-day seminar on ‘Power Situation in ‘hub’ for public-private partnerships that en- Maharashtra & Industries’ Response,’ on 3 March 2006 at Mumbai. The seminar was hance the development and commercia- inaugurated by Dr. Pramod Deo, Chairman, Maharashtra Electricity Regulatory Com- lization of science-generated technologies mission (MERC). While Mr. P.V. Krishna, Head – Western Region, Wartsila India Ltd. and knowledge through market mecha- presented the ‘CII Pune model’, ABPS Infrastructure discussed in detail various press nisms. It consists of the ‘Agri-Biotech Park’ notes issued by MERC. Delegates from the Thane-Belapur Industries Association, (a part of the Genome Valley Initiative of Roha Industries Association and Taloja Manufacturers Association presented papers the Andhra Pradesh government); the ‘Agri- about problems being faced and initiatives being taken up by the respective associa- Business Incubator’ with eight private sec- tions. Delegates from Tata Power Co. Ltd. and Reliance Energy Ltd. presented pro- tor partners as incubates; a seeds consor- grams for additional power availability, based on their new investments in Maharashtra. tium; and the ‘SAT Eco-Venture’. The seminar decided that ICMA and other associations should prepare certain initia- tives like franchise model, displacement concept, co-generation plants at specific Research consortia clusters, surplus power pooling etc. and approach authorities for a way forward. The recognition of the private sector as

124 Chemical Weekly March 21, 2006 Top Stories

PROCESS TECHNOLOGY Reliance Petro’s PP plant to use Dow Chemical technology The Department of Chemicals and tpa. DGT will receive a payment of $14- Petrochemicals has approved Reliance mn for the catalyst technology and Petroleum Ltd’s application for a foreign $5.2-mn for the solvent recovery plant, technology collaboration agreement with in four tranches. Dow Global Technologies (DGT), a sub- sidiary of Dow Chemical Company, for 25 per cent of the total payment will setting up a polypropylene plant at the be paid out on signing the licence agree- Jamnagar special economic zone (SEZ). ment, the next 25 per cent upon delivery The agreement will be valid for 10-years of the process design package, while the and Dow Global Technologies will be paid subsequent payments of 25 per cent each $26.55-mn in four installments for the 0.9-mtpa of polypropylene. There is will be made after the completion of the plant. also an option of installing a catalyst operations, training and commissioning plant along with solvent recovery unit, of the plant. The plant, to be based on Dow’s with an initial capacity of 100-tpa, with ‘Unipol’ fluidised gas process, will be a provision for expanding the capacity Reliance already operates PP plants located at Meghpar village, near Lalpur up to 300-tpa by adding two more at Hazira and Jamnagar with a capacity in Gujarat, and will have a capacity of plants, each having a capacity of 100- of 1.040-mpa.

INVESTMENT Assam gas cracker cost pegged at Rs. 5,460-crore The draft cabinet note on the Assam The Cabinet note has worked out an equity contribution from GAIL: 70%; NRL, Gas Cracker Project, circulated for inter- Internal rate of return (IRR) of 10% based OIL and Govt. of Assam: 10% each ministerial comment by the Department on a constant gas price of Rs.1920 per of Chemicals and Petrochemicals, has 1000 scm, a constant naphtha of DERESERVATION pegged the cost of the project (without Rs.15,000 per ton and a net realizable subsidy) at Rs.5,460.61-crore (on-fixed polymer price of Rs. 40,000 per ton. Chemicals to be cost basis). The capital subsidy works taken off SSI list out to be Rs. 2,138-crore (on fixed cost The project is to be funded with a basis) and recurring feedstock subsidy Debt: Equity ratio of 2:1 and the Cabinet Auto components, chemicals and to Rs. 908.91-crore (on constant price note has mooted the following conces- transport equipment are among the 180 basis). sions: items being dereserved from the small scale sector, following the announce- The feedstock for the project will w Exemption from entry tax on capital ment made by the Finance Minister, Mr. come from OIL, ONGC and the Numaligarh goods P Chidambaram in his recent Budget Refinery Ltd. (NRL). While OIL will sup- w Exemption from works contract tax speech. In addition, the small-scale in- ply 6.0-mmscmd of gas, with an average during construction and plant operation. dustry ministry has hiked the investment C2 content of 4.17%, ONGC will provide w Excise duty exemption for 10 years limit to Rs. 5-crore from Rs. 1-crore for 1.35-mmscmd with a C2+ content of w Income tax exemption for 10 years all drugs and pharmaceuticals, PVC around 7% up to 31 March, 2012 and 1.00- w Sales tax / VAT exemption on feedstock pipes, azo dyes. mmscmd thereafter, with a C2+ content and products for 15 years. of around 5%. NRL will supply 160,000- Officials said several organic chemi- tons of petrochemical grade naphtha an- The project is proposed to be set-up cals were being removed from the list of nually. by a Special Purpose Vehicle (SPV) with items reserved for the sector.

126 Chemical Weekly March 21, 2006 Top Stories

CLEAN FUEL UOP and IOC start-up first Penex process technology isomerization unit UOP LLC, a Honeywell company, has Isomerate is used in gasoline blends to ment strategic business unit. “The on- announced that Indian Oil Corp. Ltd. increase its octane and reduce aromatic, going work we do with IOC is a win-win (IOC), India’s largest public sector re- benzene and olefin content. proposition for everyone.” finer, has successfully commissioned and accepted an isomerization unit us- UOP’s ‘Penex’ process upgrades light Technology for LAB unit ing UOP’s ‘Penex’ process technology. naphtha components to high octane mo- In 2004, UOP worked with IOC to tor gasoline blend stocks, and is now commission a linear alkylbenzene (LAB) IOC licensed the UOP technology for being used at more than 120 refineries complex at its refinery in Baroda the isomerization unit at its refinery in worldwide. “UOP and IOC engineers (Gujarat). The complex marked IOC’s Mathura, Uttar Pradesh, which has a worked together to bring this unit on- entry into the petrochemical field. The capacity of 12,000 barrels per stream day stream in a very short timeframe given complex uses UOP’s ‘Unionfining’, (bpsd), to meet growing demand for the growing need for isomerate in the ‘Molex’, ‘Pacol’, ‘DeFine’ and ‘Detal’ pro- isomerate as India continues to move country as India continues to move for- cess unit. UOP technology is a key ele- forward with meeting clean fuel specifi- ward with meeting clean fuel specifica- ment in the production of LAB; almost cations under its ‘Bharat Stage-III’ ini- tions,” said Mr. Norm Gilsdorf, Senior all new LAB complexes built in the last tiative, which is aimed at reducing pol- Vice President and General Manager of two decades have used UOP techno- lution produced by motor vehicles. UOP’s Process Technology and Equip- logy.

RAW MATERIAL Tyre manufacturers to import 25,000-tons of natural rubber

After a six months lull, tyre manu- 46,619-tons, while during the current fis- ing in the international market. During facturers in the country will be import- cal, exports till end of February were the last six months, tyre companies did ing 25,000-tons of natural rubber be- 61,000-tons, taking advantage of the not import since global prices were tween April and September this year to wide price difference prevailing in Indian higher than domestic prices. Even now, overcome a perceived shortage. Accord- and international markets. What may import prices would be higher, but the ing to Mr. D. Ravindran, Director-General, however put a spanner in the move to tyre companies, concerned about raw Automotive Tyre Manufacturers’ Asso- import rubber is the high prices prevail- material availability, may have no choice. ciation (ATMA), the apex body of tyre makers in the country, contracts have FIBRE INTERMEDIATES been signed and consignments will be- gin arriving from April onwards. IOC PTA project to commence operations in April-end Indian Oil Corporation (IOC) will start its purified terephthalic acid (PTA) plant located at The tyre sector consumes 54% of the Panipat refinery in the last week of April. IOCL will import 10,000-tons of p-xylene (PX) for PTA total rubber produced in the country. Last production, as commissioning of its own PX plant at the same site has been delayed for some fiscal, production was 7.55-lakh tons, technical reasons. IOC officials have said that in the event that the commissioning of the PX plant while this fiscal, it is estimated to touch is delayed further, the company will continue to run the PTA plant on imported PX. Once 7.86-lakh tons. Imports last fiscal to- commissioned, the PTA plant will be the largest unit in India with a capacity of 0.553-mtpa. The talled 68,718-tons. However, tyre mak- aromatics production unit at the site will comprise a 357,000-tpa PX plant, which will also ers feel the production growth of around produce about 21,000-tpa of benzene. The feedstock naphtha for the aromatics unit will be 5% may not match the consumption sourced from IOC’s Panipat and Mathura refineries. Toyo Engineering India Limited (TEIL) has growth of 5.5%. Moreover, exports of rub- been appointed as project management consultants for the PX plant, which is based on techno- ber from the country have also reduced logy provided by UOP. availability. Exports last fiscal were

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