The Hindu Business Line : Annual corrosion loss pegged at Rs 1.5-lakh cr

Mumbai, Sept. 27 India Inc is footing an annual bill of close to Rs 1.5 lakh crore on account of losses due to corrosion, according to the Indian chapter of NACE International, a global forum of over 16,000 corrosion engineers.

“The cost works out to much higher than any of the calamities the nation has faced over the years,” Mr Rajan Bahri, Trustee NACE International India Section, told Business Line here, on the sidelines of a three-day international seminar on corrosion, ‘CORCON 2007’, here.

Over 800 delegates representing almost all sectors of industry, including a major representation from oil majors such as ONGC, GAIL, HPCL and BPCL, are attending the meet.

The estimated loss has been worked out based on member-industries furnishing details and extrapolating it sector-wise. “The figure could not be off the mark as the US and Japan mark their losses at around three per cent of GDP,” said Mr Bahri.

Sector-wise cost

The annual corrosion cost of key sectors such as infrastructure has been put at Rs 22,600 crore, utility services — Rs 47,100 crore, production and manufacturing — Rs 17,650 crore and Defence and nuclear waste — Rs 20,000 crore. Correspondingly, cost of mitigation has been estimated at one per cent of the savings.

Most PSUs, including those in the oil and gas sector, appear to be following the standards set by NACE, though not mandatory, which defines parameters from design to maintenance.

Stating that corrosion cost is of serious concern, Mr Shiv Abhilash Bhardwaj, Director (Technical), Nuclear Power Corporation of India Ltd, said the Corporation followed NACE norms, after procedural clearances were obtained from regulatory bodies for implementation.

Mr Bahri said like in the US, the Central Government could strike a partnership with NACE to find out the precise cost of corrosion to the nation and also create a general awareness and understanding of the losses. At least half the losses could be prevented by suitable intervention, he said.