Union Carbide India, Limited
Encyclopedia
Union Carbide India Limited (UCIL) was a chemical company established in 1934, eventually expanding to employ 9,000 people working at 14 plants in five divisions. UCIL was 51% owned by Union Carbide Corporation (UCC) and 49% by Indian investors including the Government of India
. UCIL produced batteries
, carbon products, welding equipment, plastics, industrial chemicals, pesticides, and marine products.
In 1970 UCIL built a pesticide plant in Bhopal, India, which gained worldwide attention as a result of the Bhopal disaster
. In December 1984, a release of methyl isocyanate
(MIC) gas resulted in the death or injury of thousands of people in the surrounding residential areas. At the time of the disaster UCIL was ranked twenty-first in size among companies operating in India. It had revenues of Rs 2 billion (then equivalent to US$170 million).
In November 1994, UCC completed the sale of its interest in UCIL to McLeod Russel Ltd. of Calcutta. UCIL was subsequently renamed Eveready Industries
India Ltd.
directed UCC and UCIL to pay $470 million to settle all claims arising from the tragedy. The government, UCC and UCIL agreed with the ruling, and the two companies paid the settlement on 24 February.
UCIL maintained a low profile in the post-Bhopal period. The chairman, Keshub Mahindra, and the Bhopal factory manager, J.Mukund, moved on to new positions. Most of the Bhopal plant managers left the company after the plant closed. UCIL closed the pesticide plant and reduced the Research and Development Center in Bhopal to a skeleton staff.
Following the tragedy, the Government of India took control of the property. In 1994, Union Carbide sold its shares in UCIL to McLeod Russell. UCIL was subsequently renamed Eveready Industries
India Ltd. (EIIL). As part of this transaction, EIIL became the property leaser and assumed responsibility for the site environmental clean up.
On 14 January 1987, the U.S. Second Circuit Court of Appeals in Manhattan
upheld a decision by the U.S. District Court to send the legal case against UCC to India. It ruled UCIL was a separate and independent legal entity managed and staffed by Indian citizens.
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...
. UCIL produced batteries
Battery (electricity)
An electrical battery is one or more electrochemical cells that convert stored chemical energy into electrical energy. Since the invention of the first battery in 1800 by Alessandro Volta and especially since the technically improved Daniell cell in 1836, batteries have become a common power...
, carbon products, welding equipment, plastics, industrial chemicals, pesticides, and marine products.
In 1970 UCIL built a pesticide plant in Bhopal, India, which gained worldwide attention as a result of the Bhopal disaster
Bhopal disaster
The Bhopal disaster also known as Bhopal Gas Tragedy was a gas leak incident in India, considered one of the world's worst industrial catastrophes. It occurred on the night of December 2–3, 1984 at the Union Carbide India Limited pesticide plant in Bhopal, Madhya Pradesh, India...
. In December 1984, a release of methyl isocyanate
Methyl isocyanate
Methyl isocyanate is an organic compound with the molecular formula CH3NCO. Synonyms are isocyanatomethane, methyl carbylamine, and MIC. Methyl isocyanate is an intermediate chemical in the production of carbamate pesticides . It has also been used in the production of rubbers and adhesives...
(MIC) gas resulted in the death or injury of thousands of people in the surrounding residential areas. At the time of the disaster UCIL was ranked twenty-first in size among companies operating in India. It had revenues of Rs 2 billion (then equivalent to US$170 million).
In November 1994, UCC completed the sale of its interest in UCIL to McLeod Russel Ltd. of Calcutta. UCIL was subsequently renamed Eveready Industries
Eveready Industries
Eveready Industries India, Ltd is the flagship company of the B.M. Khaitan Group. The brand Eveready has been present in India since 1905....
India Ltd.
Impact of the Bhopal Disaster
In February 1989, the Supreme Court of IndiaSupreme Court of India
The Supreme Court of India is the highest judicial forum and final court of appeal as established by Part V, Chapter IV of the Constitution of India...
directed UCC and UCIL to pay $470 million to settle all claims arising from the tragedy. The government, UCC and UCIL agreed with the ruling, and the two companies paid the settlement on 24 February.
UCIL maintained a low profile in the post-Bhopal period. The chairman, Keshub Mahindra, and the Bhopal factory manager, J.Mukund, moved on to new positions. Most of the Bhopal plant managers left the company after the plant closed. UCIL closed the pesticide plant and reduced the Research and Development Center in Bhopal to a skeleton staff.
Following the tragedy, the Government of India took control of the property. In 1994, Union Carbide sold its shares in UCIL to McLeod Russell. UCIL was subsequently renamed Eveready Industries
Eveready Industries
Eveready Industries India, Ltd is the flagship company of the B.M. Khaitan Group. The brand Eveready has been present in India since 1905....
India Ltd. (EIIL). As part of this transaction, EIIL became the property leaser and assumed responsibility for the site environmental clean up.
On 14 January 1987, the U.S. Second Circuit Court of Appeals in Manhattan
Manhattan
Manhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
upheld a decision by the U.S. District Court to send the legal case against UCC to India. It ruled UCIL was a separate and independent legal entity managed and staffed by Indian citizens.