With rising demands for several chemical and allied products in India, lot of opportunities for chemicals manufacturing through new chemical projects and expansions of the existing ones have become very viable. The challenge however is the lack of availability of indigenous technologies due to inadequate technology developments in the country. This problem is highlighted here. Lack of technology development in the country could severely hamper the growth of the chemical industry.
As the demand for several chemical and allied products are steadily increasing and the import levels are rising, there are plenty of opportunities to set up new chemical projects and expand the existing ones in India. The project promoters are clearly seeing several investment opportunities not only in large scale chemical projects but also in medium and small scale ones.
In the case of several such projects, market demand and investment level are not the constraints and globally competitive capacities can be built even in the small scale and medium scale projects. There are several project promoters who are willing to venture and seize such opportunities.
The ground reality is that most of such willing and enthusiastic project promoters are unable to move on due to the difficulties and constraints faced in sourcing technical know how for setting up the projects on a commercial scale. Several potential projects are now stuck up due to this technology acquisition issue.
Performance of Government Labs (CSIR)
Government of India has done it’s job by setting up and supporting 38 CSIR laboratories with more than 4500 scientists at various levels working in such laboratories. Unfortunately, in spite of the CSIR labs existing for several decades now and the government of India spending thousands of crore of rupees, year after year, in maintaining these laboratories, these CSIR labs are not able to meet the technology demand in the country at competitive levels for commercial scale operations. The fact is that these laboratories are unable to create enough confidence amongst the project promoters about their capability to develop technology and transfer technology for setting up projects on a commercial scale.
Of course, there are a few bright spots in CSIR labs such as development of technology for hydrazine hydrate by IICT, Hyderabad in collaboration with GSFC, claims on development of technology in pilot plant scale for lithium ion cells by CECRI, Karaikudi, etc. But, these bright spots are few and far between.
While this is the case with regard to CSIR labs , the contribution of private sector in developing technologies for setting up projects at competitive standards are also not satisfactory.
Consultants not Developing Competency for Technology Development
There are number of technical consultants operating in the field of chemical projects who too have not adequately developed competence and expertise to develop technologies at requisite standards to create confidence amongst the project promoters. Many of such consultants focus on design and detailed engineering activities rather than on development of basic technologies. Of course, there are a few technical consultants who strive to develop technologies but they too lack adequate resources and facilities and could not make any impact on the overall technology scenario in the country.
Lack of Interest by Project Promotors
In the case of large scale projects like urea or petroleum refinery, Indian project promoters acquire technology from abroad paying huge technology fees. Such technologies are being repeatedly acquired. For example, while there are number of urea projects in India operating for several decades, new urea projects are being set up only utilising technologies from overseas organisations.
Another aspect that can not be ignored is the fact that most project promoters, even those running successful projects for several years, just focus on buying technologies from anywhere, instead of working with the research labs to develop technologies. Many of them seem to think that such approach of technology development in the country could be a long drawn affair and even a calculated risk, which obviously mean that they lack confidence or sustained interest in technology development activities.
Of course, there are some projects like ethanol, sulphuric acid, single super phosphate and others where domestic technologies are available. However, this is certainly not so in the case of several products particularly in the medium and small scale level and in speciality chemicals. In the case of such small scale or medium scale projects, sourcing technology from abroad is not an option in view of the high fees demanded by overseas technology suppliers. In such circumstances, several potentially valuable project opportunities remain unexploited and the country remains as a net importer of several such chemicals.
Hampering India’s Leapforward
This is a serious issue facing Indian chemical industry today and there do not seem to be any immediate solution.
Perhaps, project promoters should give up the attitude of seeking to buy technologies from abroad like buying textile item from a retail shop and focus on developing technologically domestically by associating with established units such as CSIR Labs.
Will conversion of CSIR Labs into joint ventures with private organisations in India and abroad would make the performance better?
It appears that technology development climate in India in the field of chemical industry is not at the level that it could facilitate a big leap forward. It is high time that industrial bodies, government agencies and research institutes should put their heads together and ensure that investment opportunities in chemical industries in India would not be lost due to want of competitive domestic technology.
The views expressed are of the author’s only.
