India levels playing field for big chem firms

15 October 2008 17:22  [Source: ICIS news]

NEW DELHI (ICIS news)--India will allow medium and large enterprises to manufacture chemicals and plastics products that are currently reserved for production only by small-scale industries, the government said on Wednesday.

 

The move had been undertaken to improve the competitiveness of the domestic industry against imports through economies of scale, to boost technological advances and create new jobs, it added.  

 

A move to de-reserve zinc sulphate, for instance, would enable large fertilizer companies to produce in-house instead of outsourcing, said a producer.

 

The industry had been demanding the liberalisation for a long time, it added.

 

The review would benefit consumers through increased competition, which would in turn result in higher quality but cheaper products, an industry source said.

 

The chemicals that have been excluded from the statutory list of items reserved for production by small business are diethyl phthalate, diocytyl phthalate, chlorinated wax (up to 60% chlorine content), barium carbonate, zinc sulphate, polyethylene films with a thickness less than 0.10 milimetre except co-extruded film, cross-linked polymer film and high density molecular film, polypropylene tubular film and full polyvinyl chloride (PVC) footwear.

 

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By: Naresh Minocha
+65 6780 4359

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