Business Standard

Sivakasi’s industry divided over tie-up to make green crackers

While only 16% units have inked a deal with NEERI, others feel they will have no choice but to sign a pact in future

- T E NARASIMHAN

The nearly ~2,000-crore firecracke­r industry at Sivakasi in Tamil Nadu is divided over joining hands with the Council of Scientific and Industrial Research’s (CSIR’S) National Environmen­tal Engineerin­g Research Institute (NEERI) to produce green crackers.

This developmen­t comes at a time when 165 of the 1,000-plus units have signed non-disclosure agreements to produce green crackers. The bone of contention of a section of the industry is that though the validity of the agreement is for two years, chances are that it may become mandatory for the industry to sign it again. Also, the units may have to depend on NEERI in the future.

NEERI has been involved in firecracke­r emission control after the Supreme Court last year asked the Centre what steps it was taking to reduce pollution during bursting of firecracke­rs. Some manufactur­ers allege that NEERI is asking the units to sign a pact and pay a fee of ~10,000 or above, depending on the size of the unit. This is to use an additive, for which the institute holds a patent and to undergo training to produce firecracke­rs as per the formulatio­n prepared by the Institute among others.

Also, there is conflict of interest, considerin­g that raw material and formulatio­ns are developed and patented by the same institute that is the agency to certify the pollution standards of the final product. However, not all manufactur­ers are making the allegation.

P Ganesan, president of Tamil Nadu Fireworks and Amorces

Manufactur­ers Associatio­n (TANFAMA) and director of Vinayaga Sonny Fireworks Group, one of the largest fireworks manufactur­ers, said there is no such restrictio­n and the companies can purchase raw material from anywhere they want.

“Different types of additives are there. We can import also, if needed,” he said.

The additive to be used is a natural substance that is available off the shelf across the country, said another manufactur­er who added that the allegation­s of monopoly is total humbug. Responding to the allegation­s that signing the agreement would result in a monopoly by the institute, a senior NEERI official said, “CSIR-NEERI has patents for the new formulatio­ns based on new hypothesis identified for targeting emissions reduction. Non-disclosure agreement signatorie­s are required to undergo hands on training for better understand­ing of standard operating procedures for making of green crackers for which nominal facilitati­on charges have to be given by manufactur­ers.”

While industry representa­tives said manufactur­ers have produced most of the formulatio­ns using improved form of the prevailing formulatio­n this year, NEERI said that presently the manufactur­ers are adopting new formulatio­ns only. The institute, along with sister labs, are working on developing green crackers for targeting higher emission reduction to the tune of 50-70 per cent, possibly in the coming year.

Nearly 230 memorandum­s of understand­ing (Mous) and 165 non-disclosure agreements have been signed with fireworks manufactur­es to facilitate a smooth transition. Close to 530 emissions testing certificat­es have been issued to fireworks manufactur­es for new and improved formulatio­ns meeting the stipulated guidelines of green crackers.

Manufactur­ers have been approachin­g the Petroleum and Explosives Safety Organisati­on (PESO) for final authorisat­ion to manufactur­e green crackers since March 2019. A NEERI official said that a list of 28 manufactur­ers, approved by PESO for making green crackers, has been released in Delhi and this informatio­n may be sought from PESO office Nagpur.

“We are expecting 700 more manufactur­ers to adopt the new formulatio­ns,” added the official. The over 1,000 firecracke­r manufactur­ers in Sivakasi employ around 800,000 workers, directly and indirectly. The fireworks industry in Sivakasi is finally seeing light at the end of the tunnel after business was impacted due to the regulation­s and the Supreme Court orders in the last couple of years.

 ??  ?? Manufactur­ers have been approachin­g the Petroleum and Explosives Safety Organisati­on for final authorisat­ion to manufactur­e green crackers since March 2019
Manufactur­ers have been approachin­g the Petroleum and Explosives Safety Organisati­on for final authorisat­ion to manufactur­e green crackers since March 2019

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