Chemical producers are assessing their options following the release by the Indian government of detailed guidelines for the partial resumption of manufacturing in the country.
The move comes amid the extension of India’s national lockdown until 3 May.
The guidelines divide the country’s districts into red, yellow and green zones according to the number of cases of coronavirus Covid-19.
Manufacturing activities will be permitted to resume in green zones from 20 April but this is subject to the final decision from individual local governments.
According to the guidelines, operations in the green zones will be permitted to resume with stringent social distancing and worker safety measures in place. Manufacturing plants located in industrial estates will be required to provide lodging facilities for their workers to reduce the movement of people across the region.
Experts have warned that companies could experience supply chain and workforce issues.
"While this is positive news, there are likely to be some problems. Many companies could face workforce issues because their workers will have returned home during the lockdown and industrial facilities are often located in rural areas," said Shisher Kumra, executive director of Sustainability Support Services (SSS) Europe.
"So even if companies have permission to manufacture, they may not be able to due to the restrictions on inter-district movement of people. If manufacturers have onsite labour, which several companies do, then this should not be an issue," he said.
Small and medium-sized speciality chemical producers are still evaluating the partial relaxations guidelines as there are a lot of ambiguities, a member of the Indian Specialty Chemical Manufacturers’ Association (ISCMA) told Chemical Watch.
"For example, only manufacturing plants located in green zones will be permitted to resume operations but the entire supply chain linked to such a plant might not all be located in a green zone. The options for finding raw material suppliers in the zone might be very limited," he said.
"At the same time, in terms of sales and distribution, trade, stockists and major consumption centres are predominantly located in urban areas which continue to be under lockdown," he added.
Push from industry
In the wake of the national lockdown extension, the Indian chemical and petrochemical industry has been petitioning the government to categorise the entire value chain as ‘essential’ due to the cross-linkages between chemicals/petrochemicals and other critical downstream products like pharmaceuticals, food and personal protection equipment (PPE).
The Indian Chemical Council (ICC) informed the government that essential supplies from chemicals and petrochemical (C&PC) industry have been halted at various checkpoints across the country and prevented from further movement.
It noted that while final products have been categorised as ‘essential commodities’, intermediates and the raw materials required for their production have not been placed under the same category.
"Movement of raw materials is likely to be a challenge for some facilities, particularly if they are unable to source the materials locally. It is hoped the government will loosen the restrictions on trucks that have been blocked, but it is currently unclear if they will allow movement of new trucks and consignments. Companies may have the workers but lack the raw materials," said Mr Kumra.
Chemicals such as benzene, sulphur, chlorine, hydrogen, nitric acid and sulphuric acid are key raw materials in manufacturing pharmaceutical products including paracetamol, demand for which is rising under the pandemic. However, while the finished products have been categorised as essential commodities the raw materials for their manufacture have not.
"Similarly, the petrochemical industry, a major producer of polymers with wide application and usage in the manufacture of critical medical devices like catheters, blood transfusion pipes, blood bags and PPE and hence entire plastic downstream industry should be treated as ‘essential’," said the ICC.
The ICC has held discussions with chemical bodies outside the country – Cefic, Echa and the American Chemical Council (ACC) – to receive advice on best safety practices for operating plants while maintaining hygiene and workplace social distancing measures.
"The government is reviewing the pandemic on a three-week basis and we could see further relaxations on restrictions in certain areas, which would allow further manufacturing activities to restart, even while the lockdown continues," said Mr Kumra.
Delays to the draft chemical rules
In March, the Ministry of Chemicals and Fertilisers circulated a fourth draft of its Chemicals (Management & Safety) Rules 20XX.
When the third draft was circulated in February, Mr Kumra told Chemical Watch that the authorities planned to submit the final version to the WTO in July.
However due to the pandemic, he said he now expects it won't be submitted to the WTO until after the summer.
Ajoy K Das and Ellen Daliday