MOSCOW (MRC) -- India’s Department of Chemicals and Petrochemicals has taken initiatives to overcome the hurdles posed by Covid-19 pandemic and has suggested state-owned units to strengthen their performance by exploring Joint Ventures with global enterprises looking for investments, as per Kemicalinfo.
The initiative came on the directions of Union Minister of Chemicals and Fertilizers Shri DV Sadananda Gowda who has advised that Indian corporates especially PSUs (public sector undertakings) under his Ministry should try to convert COVID-19 adversity into an opportunity of attracting investments from abroad.
Following on the advice, HIL (India) Limited (formerly Hindustan Insecticides Ltd), a PSU under the Department, is looking for expanding its market and has sent proposals to Indian Embassies/Missions in China, Japan and South Korea for inviting interested agro-chemical manufacturers in respective countries for investment in India for business tie-up with HIL including contract manufacturing or plan-on-lease arrangement.
On the recent performance side, despite facing lot of hurdles due to COVID-19 crisis, HIL is ensuring supply of essential chemicals such as DDT in Health segments and Seeds & Pesticides in Agriculture segments in various parts of the country.
During nationwide lockdown due to COVID-19, production has been affected in HIL’s Units. However, company has recorded good sales performance during the last week ended on 24th April and sold 37.99 metric tons of Agro-chemicals, despatched 97 metric tons of DDT, executed an export order of 10 metric tons of Mancozeb 80% WP to Peru.
HIL has also drafted an agreement which has been shared with the Ministry of Agriculture for supply of Malathion Technical for Locust Control Programme.
As MRC informed earlier, India to consider imposing a 15% "Covid-19" import tax on chemicals to help protect its domestic industry from major exporting nations in East and SE Asia. The domestic industry has been badly affected by a major demand slump as a result of nationwide coronavirus lockdown. The proposed tax will be added in addition to current import duties. The committee is also proposing that all duties and taxes on exports be refunded for domestic manufacturers.
With possible exemptions for ethylene, paraxylene (PX), ethylene dichloride (EDC) and vinyl chloride monomer (VCM), the recommendation covers all other chemicals and petrochemicals imported by India.
India is a major chemicals importer, including polymers, monomers and solvents. If introduced, the new tax would impact domestic importers and distributors.
EDC and VCM are the main feedstocks for the production of polyvinyl chloride (PVC).
According to MRC's DataScope report, exports of suspension polyvinyl chloride (SPVC) from Russia totalled 45,600 tonnes in the first three months of 2020, down by 4% year on year. Imports increased, but still remained at a low level.
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