SIVAKASI FIREWORKS UNITS MAY TAKE ~800-CR HIT

The fireworks industry in Sivakasi, Tamil Nadu, is expected to take a hit of about ~800 crore in the run-up to Diwali this year, primarily as it tries to comply with the Supreme Court’s directive on environment-friendly crackers.

Last year, the unorganised industry that employs about 800,000 people, had earned about ~2,000 crore in the Diwali season. Sources said it expects to be fully compliant with the SC’S norms next year, thereby reducing losses.

Crackers from Sivakasi, a town about 550 km southwest of Chennai, have already been shipped to various centres for Diwali, which falls on October 27 this year. However, it has not shipped huge quantities to the National Capital Region as the SC is yet to finalise rules for it. The NCR usually reels from air pollution around this time of the year because of burning of crackers as well as crop residue in neighbouring states such as Punjab and Haryana. However, the air quality in the NCR has been better this year.

“In March, the SC provided clarity on what are green crackers. This helped the industry to work on such fireworks,” said P Ganesan, president of Tamil Nadu Fireworks and Amorces Manufacturers’ Association.

He added, “We lost the first four months of production by then. This will lead to losses of about ~800 crore.” Ganesan, also director of Vinayaga Sonny Fireworks Group, one of the largest fireworks manufacturers, said they expected a favourable order from the SC, as most units had complied.