STANDING COMMITTEE ON CHEMICALS & FERTILIZERS 25 (2007-08) FOURTEENTH LOK SABHA MINISTRY OF CHEMICALS AND FERTILIZERS (DEPARTMENT OF CHEMICALS AND PETROCHEMICALS) DEMANDS FOR GRANTS (2008-2009) TWENTY-FIFTH REPORT LOK SABHA SECRETARIAT NEW DELHI April, 2008/Chaitra, 1930 (Saka) 2 TWENTY-FIFTH REPORT STANDING COMMITTEE ON CHEMICALS AND FERTILIZERS (2007-08) (FOURTEENTH LOK SABHA) MINISTRY OF CHEMICALS AND FERTILIZERS (DEPARTMENT OF CHEMICALS AND PETROCHEMICALS) DEMANDS FOR GRANTS (2008-2009) Presented to Lok Sabha on 16.04.2008 Laid in Rajya Sabha on 23.04.2008. LOK SABHA SECRETARIAT NEW DELHI April, 2008/Chaitra, 1930 (Saka) 3 CONTENTS Page No. COMPOSITION OF THE COMMITTEE (2007-08) …………………………. (iii) INTRODUCTION ……………………………………………………………….. (v) ACRONYMS…………………………………………………………………………… (vii) REPORT INTRODUCTORY ……………………………………………………………... 1 I. IMPLEMENTATION STATUS OF RECOMMENDATIONS CONTAINED IN THE SIXTEENTH REPORT ON DEMANDS FOR GRANTS (2007-08) OF THE DEPARTMENT OF CHEMICALS & PETROCHEMICALS ………………………………………………………… 2 II. FIVE YEAR PLANS AND ANNUAL PLANS ……………………………… 8 11th Five Year Plan …………………………………………………….. 8 III. DEMANDS FOR GRANTS FOR THE YEAR 2008-09 ………………….. 15 IV. HEAD-WISE ANALYSIS OF DEMANDS FOR GRANTS (2008-09) … 16 A. Secretariat Economic Services ……………………………………………….. 16 B. Central Institute of Plastic Engineering & Technology (CIPET)……………. 19 C. Bhopal Gas Leak Disaster ……………………………………………………… 27 D. Assam Gas Cracker Project ………………………..………………………….. 36 E. Institute of Pesticides Formulation Technology (IPFT) …………………….. 44 F. National Institute of Pharmaceuticals Education & Research (NIPER) ….. 47 G. Chemical Weapons Convention (CWC)………………………………. 51 H. National Pharmaceutical Pricing Authority (NPPA) …………………. 55 I. Pharmaceutical Export Promotion Scheme (PEPS) …………………. 64 J. Chemicals Promotion and Development Scheme (CPDS) ………….. 68 K. Others (New Schemes) …………………………………………………. 71 L. Lumpsum provision for project/scheme for the benefit of the North Eastern Region & Sikkim………………………………………………. 74 M. Non-Plan Loans & Investment in Public Enterprises ……………………… 76 (a) Hindustan Organic Chemicals Limited (HOCL) …………………… 78 (b) Hindustan Insecticides Limited (HIL) ………………………………. (c) Indian Drugs & Pharmaceuticals Limited (IDPL) …………………… 81 (d) Hindustan Antibiotics Limited (HAL) ………………………………... 85 (e) Bengal Chemicals & Pharmaceuticals Limited (BCPL) ………….. 89 (f) Bengal Immunity Limited (BIL) ………………………………………. 93 (g) Karnataka Antibiotics & Pharmaceuticals Ltd. (KAP) ……………… 99 (h) Orissa Drugs and Chemicals Limited (ODCL) …………………….. 101 104 4 Page No. Appendices I. Minutes of the Sixth sitting of the Standing Committee on Chemicals and Fertilizers (2007-08) held on 27th March, 2008 ……………………………… 110 II. Minutes of the Seventh sitting of the Standing Committee on Chemicals and Fertilizers (2007-08) held on 10th April, 2008 ………………………….. 113 III. Statement of Recommendations/Observations of the Committee …… 115 5 COMPOSITION OF THE STANDING COMMITTEE ON CHEMICALS & FERTILIZERS (2007-08) Shri Anant Gangaram Geete - Chairman Members Lok Sabha 2. Shri Ajit Singh 3. Shri Afzal Ansari 4. Shri Jaiprakash (Mohanlal Ganj) 5. Shri Sunil Khan 6. Shri Shrichand Kripalani 7. Shri Subhash Maharia 8. Shri Punnu Lal Mohale 9. Shri A. Narendra 10. Shri Prasanta Pradhan 11. Shri Ramswaroop Prasad 12. Shri P. Chalapathi Rao 13. Shri Ashok Kumar Rawat 14. Shri Anantha Venkata Rami Reddy 15. Shri Devwrat Singh 16. Shri Narsingrao H. Suryawanshi 17. Shri Mansukhbhai Dhanjibhai Vasava 18. Shri D. Venugopal 19. Shri Bhanu Pratap Singh Verma * 20. Vacant $21. Vacant Rajya Sabha 22. Shri B.S. Gnanadesikan 23. Shri Gireesh Kumar Sanghi 24. Shri V. Hanumantha Rao 25. Shri Mahendra Sahni 26. Shri Dilip Singh Judev 27. Shri Raj Mohinder Singh Majitha **28. Vacant **29. Vacant **30. Vacant $$31. Vacant Secretariat 1. Shri A.K. Singh - Joint Secretary 2. Shri A.S. Chera - Director 3. Shri A.K. Srivastava - Deputy Secretary-II 4. Smt. Balwant Kaur Saimbhi - Under Secretary 5. Shri Prem Ranjan - Senior Committee Assistant * Consequent upon nomination to the Committee on Food, Consumer Affairs and Public Distribution, Shri Suresh Angadi, MP (LS) ceased to be Member of the Committee w.e.f. 30.08.2007. $ Consequent upon nomination to the Committee on Industry, Shri Subhash Sureshchandra Deshmukh, MP (LS) ceased to be Member of the Committee w.e.f. 23.01.2008. ** Shri Debabrata Biswas, Shri Surendra Lath and Shri R. Shunmugasundaram ceased to be Member of this Committee w.e.f. 2nd April 2008 after their retirement from Rajya Sabha. $$ Shri T.R. Zeliang ceased to be Member of this Committee consequent upon his election to Nagaland Legislative Assembly w.e.f. 24.03.2008. 6 INTRODUCTION I, the Chairman, Standing Committee on Chemicals and Fertilizers (2007-08) having been authorised by the Committee to submit the Report on their behalf present this Twenty-fifth Report on Demands for Grants of the Ministry of Chemicals and Fertilizers (Department of Chemicals and Petrochemicals) for the year 2008-09. 2. The Committee examined the Demands for Grants pertaining to the Ministry of Chemicals and Fertilizers (Department of Chemicals and Petrochemicals) for the year 2008-09 which were laid in Lok Sabha on 13th March, 2008 and in Rajya Sabha on 14th March, 2008. 3. The Committee took evidence of the representatives of the Ministry of Chemicals and Fertilizers (Department of Chemicals and Petrochemicals) at their sitting held on 27th March, 2008. 4. The Committee considered and adopted the Report at their sitting held on 10th April, 2008. 5. The Committee express their thanks to the Officers of the Ministry of Chemicals and Fertilizers (Department of Chemicals and Petrochemicals) for furnishing the material and other information, which they desired in connection with the examination of Demands for Grants of the Department for the year 2008-09 and for giving evidence before the Committee. 6. The Committee place on record their appreciation for the valuable assistance rendered to them by the officials of the Lok Sabha Secretariat attached to the Committee. New Delhi; April 15, 2008 ANANT GANGARAM GEETE Chaitra 26, 1930 (Saka) Chairman, Standing Committee on Chemicals and Fertilizers. 7 REPORT INTRODUCTORY The Department of Chemicals and Petrochemicals in the Ministry of Chemicals and Fertilizers are entrusted with the responsibilities of planning, development and regulation of the chemicals, petro-chemicals and pharmaceutical industry sectors. The following Public Sector Undertakings/Institutions/ Organizations are within the administrative control of the Department:- Public Sector Undertakings: (i) Hindustan Organic Chemicals Limited (HOCL) (ii) Hindustan Insecticides Limited (HIL) (iii) Indian Drugs & Pharmaceuticals Limited (IDPL) (iv) Hindustan Antibiotics Limited (HAL) (v) Smith Stanistreet Pharmaceuticals Limited (SSPL) (vi) Bengal Chemicals & Pharmaceuticals Limited (BCPL) (vii) Bengal Immunity Limited (BIL) Autonomous Organizations: (i) Central Institute of Plastics Engineering & Technology (CIPET) (ii) National Institute of Pharmaceuticals Education & Research (NIPER) (iii) Institute of Pesticides Formulation Technology (IPFT) 2. The Department is also having an attached office viz. National Pharmaceutical Pricing Authority (NPPA) headed by a Secretary level Officer as Chairman. NPPA deals with pricing and monitoring of bulk drugs and formulations as per the provisions of DPCO’95 enacted under Drugs and Cosmetics Act, 1940. 8 I. IMPLEMENTATION STATUS OF RECOMMENDATIONS CONTAINED IN THE SIXTEENTH REPORT ON DEMANDS FOR GRANTS (2007-08) OF THE DEPARTMENT OF CHEMICALS AND PETROCHEMICALS. 3. The Standing Committee on Chemicals and Fertilizers presented their Sixteenth Report on Demands for Grants (DFG) of the Department of Chemicals and Petrochemicals (DOC&PC) for the year 2007-08 on 26th April, 2007. The Twenty-first Report on ‘Action Taken by the Government on the recommendations contained in the Sixteenth Report of the Committee on Demands for Grants (2007-08) was presented to Lok Sabha on 20th November, 2007. Out of 18 recommendations, 12 recommendations (Sl. Nos. 1, 2, 4, 5, 6, 7, 8, 10, 12, 13, 15 and 16) were accepted by the Government. The reply of the Government in respect of recommendation at Sl. No. 11 was not accepted by the Committee. The Committee reiterated this recommendation in their Twenty-first Report. The replies of DOC&PC were of interim nature in respect of 5 recommendations at Sl. Nos. 3, 9, 14, 17 and 18. Besides, the Committee had given their comments on recommendations at Sl. Nos. 1, 5, 6, 9, 10, 11, 12, 13, 15, 16 and 17. Subsequently, the Minister of State in the Ministry of Chemicals and Fertilizers made a statement in Lok Sabha on 4th December, 2007 regarding the status of implementation of the recommendations contained in the Sixteenth Report on Demands for Grants (2007-08) under direction 73A of the directions by the Speaker, Lok Sabha. The information made available to the Committee in the regard to implementation of recommendations of the Committee made in their Report has been summarized as follows:- Recc. Recommendation in Brief Implementation by Government Sl. No. I. Gist of the recommendations which were accepted by the Government 1 The Committee had recommended for The Minister has stated that the implementation of the partially Standing Committee has analyzed the implemented/not implemented recommendations contained in their recommendations contained in the Eleventh Eleventh Report on Demands for Grants Report on Demands for Grants