ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Slump in Demand

Slump in Demand Hansavivek NATIONAL ORGANIC CHEMICAL INDUSTRIES (NOCIL) has been issued a 'letter of intent' to manufacture 1,100 tonnes of technical organo-phos- phates and derived formulations against its application made over a year earlier for a capacity of 1,500 tonnes. The company is seeking an increase in its licensed capacity to 1,500 tonnes, and is also awaiting clearance of its technical collaboration proposals with the Royal Dutch/Shell group for the project. Meanwhile, it is reckoned that the capital cost of the project will now be much higher than the earlier estimate of Rs 10 crores, on account of the world-wide cost escalation. The company expects the plant to be commissioned in 1978, if the necessary approvals come through quickly. From July 1973, the company has terminated the licence agreement with Vinatex of UK (entered into in March 1908 for technical knowhow in PVC compound manufacture) and the right to use its patents (as it has since developed its own expertise in this field). Under the agreement, royalties were payable for 10 years. There is thus a saving on this account. The company incurred capital expenditure of Rs 1.72 crores, last year, for improving performance efficiencies of the various plants. The new naphtha pipeline, from the Bur- man-Shell refinery across the Thana- creek bridge, was installed by the end

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