Petrochemical Industry and Environment

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This site provides detailed information on the Petrochemical Industry and Environment. It also focuses on other factors that contributed to the growth of Petrochemical Industry and measures taken to reduce environmental pollution related to the petrochemical industry.

The Department of Chemicals & Petrochemicals, GOI are the concerned highest authority of theIndian Petrochemical Industry and Environment related issues. TheIndian Petrochemical Industry and Environment related issues are well addressed. TheIndian Petrochemical Industry is at par with world standards.

India shares a good portion of the worldwide production of petrochemical business in the world market. Asian, African, and even Arab countries buyIndian petrochemical products. The demand forIndian petrochemical products is high mainly because of its quality and competitive pricing.

India's low-cost and high-end petrochemical products, manufacturing expertise, and developing world-class infrastructure are the main leveraging factors for the rise of this industry.India offers petrochemicals at a substantial discount than its western counterparts while delivering the same quality of output.

The advantages of manufacturing high-class petrochemical products inIndia are -

  • Friendly government ofIndia policies
  • Low cost labor
  • Low and world class infrastructure
  • Strong technical education
  • Large number of science and engineering graduates
  • Quality output
  • Highly skilled workforce
  • Usage of innovative process
  • Good client relationships
  • Huge scope for innovation
  • Expansion of existing relationships
  • Huge demand in overseas markets
  • Availability of more technical work force
  • Increased number and quality of training facilities


Strengths ofIndian petrochemical industry -

  • Large and very fast growingIndian petrochemical market
  • Huge trained talent pool
  • Competitive labor cost

Weaknesses ofIndian petrochemical industry -

  • Insufficient basic infrastructure for the petrochemical industry
  • High feedstock cost in comparison to Middle East countries
  • Prevalence and use of old technology
  • Synthetic fiber industry is unorganized and operates in small clusters

Opportunities ofIndian petrochemical industry -

  • Huge demand for polymer and synthetic fiber
  • Great opportunity for product development exists
  • Low consumption of polymer in comparison to global consumption rate

Threats toIndian petrochemical industry -

  • Stiff competition from other regional players like, china and the Middle East countries
  • Stiff rational pricing pressures
  • Environmental hazards concerns
  • Low market recognition
  • Relocation of manufacturing sites to region with abundance of feedstock

Notable points ofIndian petrochemical industry -

  • Represents 2% of world market
  • Does business worth USD 30 billion
  • Rate of growth of theIndian petrochemical industry is 10%
  • Profit incurred is around 14%
  • Wide variety of products
  • Basic components are petrochemicals, inorganic chemicals and fertilizers
  • TheIndian states of Gujarat, Maharashtra, West Bengal and Andhra Pradesh have the largest concentration of chemical and petrochemical units

In India the following Acts and Rules govern the various aspects of Environment -

  • The Water (Prevention and Control of Pollution) Act, 1974
  • The Water Prevention and Control of Pollution Cess Act, 1977
  • The Air (Prevention and Control of Pollution)Act, 1981
  • The Environment (Protection) Act, 1986
  • The Batteries (Management and Handling) Rules, 2001
  • The Municipal Solid Wastes (Management and Handling) Rules, 2000
  • The Recycled Plastics Manufacture and Usage Rules, 1999
  • The Rules for the Manufacture, Use, Import and Export and Storage of Hazardous micro-organisms
  • Genetically engineered organisms or cells, 1989
  • The Manufacture, Storage and Import of Hazardous Chemical Rules, 1989
  • The Hazardous Wastes( Management and Handling ) Rules, 1989
  • The Bio-Medical Waste ( Management and Handling ) Rules, 1998
  • Dumping and disposal of fly ash discharged from coal or lignite based thermal power plants on land, 1999
  • Noise Pollution( Regulation and Control ) Rules, 2000
  • The Ozone Depleting Substances ( Regulation and Control )Rules, 2000
  • The 2-T Oil ( Regulation of Supply and Distribution) Order, 1998
  • The Public Liability Insurance Act, 1991
  • The National Environment Appellate Authority Act, 1997
  • The National Environment Tribunal Act, 1995
  • Forest (Conservation) Act, 1980
  • The Biological Diversity Act, 2002


Last Updated on 13 December 2011