FICCI in its pre-budget memorandum has given the following recommendations for the Chlor-Alkali industry

The Chlor-Alkali Industry in the country produces mainly Caustic Soda, Chlorine and Soda Ash. Industries that have direct linkages with this sector include: Soaps and Detergent; Pulp and Paper; Textile Processing; Aluminium Smelting; Dyes and Dyestuff; Plastic Polymers; Rayon Grade Pulp; Pharmaceuticals; Electroplating; and Adhesives/Additives. The following should be considered for the orderly growth of the sector:

> On one hand the Government of India is entering into various Free Trade Agreement with several countries, on the other end they are not trying to curtail the production cost of Indian industries which is quite discouraging.

> In case of Caustic Soda, power constitutes more than 60% of the cost of production. It is strongly felt that this major input should be made available to the industry at internationally competitive prices.

> The government should ensure supply of quantity salt at reasonable cost by providing incentives and subsidies for R&D work for mechanization of salt production.

> To reduce the cost of inputs, it is important that interest rates are reduced and brought at the international level.

> To promote Cl2 usage, Government support is required to develop domestic ethylene capacity by providing incentives. Also, import duty on ethylene to be abolished so that ethylene instead of EDC & VCM is imported and more of domestic Cl2 is utilized for Vinyls.

> Also to secure raw materials like Ethylene & Cl2 for producing Vinyls, investments in PCPIRs may be encouraged. Indirect import of Chlorine through EDC/VCM/PVC to be avoided by retaining appropriate duty structure.

> Customs duty on Coal & fuel oils should be brought down to zero – to reduce the input cost. At present, duty on Coal is 2.5% and Fuel oil is 5%.

> Indian ports need to be improved on PPP model to facilitate better coastal movements to transport raw materials & feed stocks to ensure reasonable transport cost & free inter state movements.