Laws and Regulations that govern the Chemical Process Industry in India

By - Manoj
09.03.21 07:52 AM


Chemical Industry is a fast growing sector and economy booster with double digit growth potential. In this blog, we have listed out the laws and regulations which are directly or indirectly linked to Chemical Process Industries. The following are the basic definitions one must know to get a fundamental understanding of the regulatory framework.  It is important to have a simplified regulatory framework to ensure that business can continue to expand their product offerings and yet in a safe & sustainable way.

law is the generic term for any legal rule or regulation enforced by the government to regulate actions or activities in our society. It is also defined as a set of legalized rules that are created and enforced by the government for the well being of people.

Bill is a proposed law — A Bill is a draft statute which is proposed in either House of Parliament.  All legislative proposals are brought before Parliament in the forms of Bills.

Acts: Acts are the written laws (the statute). Bill becomes an Act of Parliament after being passed by both the Houses of Parliament and assented to by the President.

Rules: The rule is a set of laws or instructions that public must follow. As an act cannot capture all details of "how to" implement the act, a rule provides the how to comply with the act. It is a prescriptive framework provided by the concerned Ministry to execute and enforce the act. 

Regulations: Regulations are made by an executive authority in exercise of power conferred by an act.  These can include notifications such as the EIA notification.

The purpose of the blog is to make readers understand about the hierarchy of laws and regulations in India. Our main aim is to make people get a basic knowledge in understanding the laws that are related to Chemical industries. Furthermore, this blog is to dispel the notion that there are no safety rules governing the Chemical Process Industry. There are more than adequate governing mechanism put in place to regulate the safety of the Chemical Process Industry. We have listed out a hierarchy chart with laws and regulations with various Ministries under the Union Council of India as the basis. 

Hierarchy of Indian Chemical Laws and Regulations

NOTE: You can download a high quality version of the above Org Chart here.

The above hierarchy chart shows the acts and rules under each ministry which are created to protect our society and welfare of the labor and the industry. Some few important acts among the above are listed below :

DISH – Directorate of Industrial Safety and Health

MISHC – Manufacture, Storage, and Import of Hazardous Chemicals

OISD – Oil Industry Safety Directorate

DGFASLI – Directorate General Factory Advice Service and Labor Institutes

NDRF – National Disaster Response Force

PESO – Petroleum and Explosive Safety Organization

DFAB – Directorate of Factories & Boilers

EIA – Environment Impact Assessment notification 2006

IBA – Indian Boilers Act

TPLI – The Public Liability Insurance Act

CAIRS – Chemical Accident Information and Reporting System

DGH - Directorate Genral of Hydrocarbons

CAEPPR - Chemical Accident(Emergency, Planning, Preparedness and Response) Rules

IRDAIInsurance Regulatory and Development Authority

ERDMP - Emergency Response & Disaster Management Planning

FACTORIES ACT: Factories act comprises of 11 Chapters, introduced and enacted to regulate occupational safety, health and welfare of workers at their work premises. The primary role of this act is regulate and govern the working conditions such as working hours, health, safety, welfare, penalties of the workers. It also exercises the powers of inspector and duties of the occupier in the company. To know more about Factories act, Source: India Code.

INDIAN BOILER ACT: Indian Boiler Regulations are set of standards, introduced to regulate the standards, product design and construction for all types of boilers working on both the natural and forced convection. It also provides the instructions and guidance for boiler inspecting and testing methods.  Source: India Code.

NATIONAL GREEN TRIBUNAL ACT: NGT act established for the effective and expeditious disposal of cases relating to environmental protection and conservation of forests and other natural resources including enforcement of any legal right relating to environment and giving relief and compensation for damages to persons and property and for matters connected therewith or incidental thereto.  Source: India code

ENVIRONMENT PROTECTION ACT: Environment Protection Act, comprises of four chapters, is introduced for the protection and improvement of environment. The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989 comes under this act that regulates the manufacturestorage and import of hazardous chemicals in India. The act also covers the Environment Protection Rules (1986), Environmental Impact Assessment Notification (2020), The Chemical Accident(Emergency Planning, Preparedness and Response) Rules (1996). Source: India code

DISASTER MANAGEMENT ACT:  An act passed by the government of India for the efficient management of disasters, including preparation of mitigation strategies, capacity-building and more.  This act comprises of national disaster response force and national institute of disaster management. Source: India Code.

PETROLEUM ACT: Petroleum Act, comprises of four chapter,  to consolidate and amend the law relating to the import, transport, storage, production, refining and blending of petroleum. This act comprises of petroleum rules which provide framework to regulate grant of exploration licenses, mining leases and for conservation and development of the same. Source: India Code.