The pandemic has taught the Indian chemical industry very clearly that the international supply chains are vulnerable and there is a need to look inwards, look domestic, Sunil Bhatnagar, President, Gujarat Heavy Chemical Ltd (GHCL), said at a recent e-Conference organized by Indian Chemical News. 

 

“This has become a necessity now for the industry and for our environment. But it also presents a huge challenge for the industry to ramp up capabilities and efficiencies to be a global player and to be globally relevant,” Bhatnagar said.

 

Welcoming the intent and policy support initiated by the government in last two year, he said that the issues of easing regulations is the critical part of the success of ‘Aatma Nirbhar’ area. The government needs to ensure fast approval of the projects.

 

Delving deep into the current scenario by citing examples from the soda ash industry, he said that the investment in this industry in the last 5-7 years have been very good domestically. “Another similar Rs 5,000-7,000 crores are lined up. But, if it takes about 4 years to accumulate a 1000 acres of land then for 4 years that is dead investment,” he said highlighting that land reform is one of the critical issue for making the industry ‘Aatm Nirbhar’. 

 

According to him, there is a need to change perceptions and for that a lot of work needs to go on in terms of making governments realize that it is not that industry is asking for a subsidy every time or for a support on money or finance or interest rates all the time but industry needs fast tracking of proposals and help from government and this can be facilitated by removing the bottlenecks.

 

Bhatnagar also pointed our that the availability of basic raw materials that are available in India such as lime stone, salt, other basic chemicals, ease in leasing activity of mines etc are another hindrance to the growth of the industry. “If you then have to look at industry specific issues, for the soda ash industry for example, the biggest challenge is raw material security and here the governments can facilitate fast tracking for actual users and issue of wasteland for salt, mining leases etc… there is a policy disconnect between the Centre and the State. I think raw material surety or raw material supply at reasonably effective prices can be corrected because these are issues that needs a little bit of tinkering with,” Bhatnagar said and added  this has to be dealt with by the government in a very pragmatic way and with some more hand holding required.

 

The other issue that really plays bulk chemical industry is the logistics. “Logistics is a big challenge and that is an area where the government has to help the industry stand on its own feet. We need a lot of support in this area,” he urged.

 

Another issue needs to be tackled is the ‘protective mechanism’. “We have a very well laid out legal infrastructure. We have issues like safeguard, anti-dumping, subsidy duties, everything is available and there is lot of action on it. The government has progressed on it but if a safeguard application for an industrial manufacturer has to take a year and a half to come into effect or to be litigated then by that time the industries cripple. So, I think a plethora of easing regulations is a need of the hour and we as an industrial group go back to the government requesting for these eases. There are lots of instances where the industries today ready to stand up and where the support is required. The real trigger of the ‘Aatma Nirbhar’ is the ease of operations which has intent but needs much more work on,” Bhatnagar added.

 

Saying that the government has shown the intent and on-roading needs to be worked on, he said that there is a need to set up a drawing board along with an interaction points with the government. “Unless we have continuous dialogue with the government, unless we request the government to bring up an ear which we people can talk about, things won’t work. It is very important that dialogues with government at various levels are initiated. We do dialoguing with the government on various issues of support at various points of time but I think a more concerted effort from the industry is required. We need formal platforms to engage with governments to tackle our basic issues,” he said.  

 

He opined that the quality of dialogue will not change because industry is always perceived going to the government with a bone in hand, that unfortunately is the perception. 

 

He suggested to adopt the Chinese model of industrialization which is known as ‘Iron Triangle’. “The ‘iron triangle’ has three sides. It talks about the industrial, bureaucracy and the government sides. Districts, areas, cities in China have known to develop fully because all three of these agencies were in sync and that is what we have to aim at. This is a never-ending point but I think concentrated efforts by leaders in the has to continue and the discourse has to be taken above the financial support part of it to just the facilitation part. 

 

He wished that the government would actually execute what the Prime Minister said by real facilitation.