Ministries disagree on pet coke imports
NEW DELHI: Differences seem to have cropped up between two union ministries over the import of pet coke – a cheap but polluting fuel that was banned by the Supreme Court in Delhi and NCR states in 2017.
While the union ministry of petroleum and natural gas (MOPNG) has hinted that import should be scaled down keeping in mind the domestic production, the directorate general of foreign trade (DGFT) under the ministry of commerce and industry has stated that it could lead to licencing regime for the product and that it would be inconsistent with the World Trade Organisation law.
While India consumed around 26.7 million metric tonnes (MMT) of pet coke in 2016-17, around 13 million was produced at home. The rest 13.7 MMT was imported. According to the MOPNG, the domestic production was expected to go up to 15 MMT in 2017-18 and to 17.6 MMT in 2022-23.
Use of pet coke only in cement industries, gasification projects and CFBC boilers are considered harmless as they maintain adequate anti-pollution measures. The total requirement by these industries is, however, only around 14.2 MMT. This means there was a shortage of only 1.2 MMT over the domestic production.
“If import of pet coke is allowed for all these industries to meet their total requirement, then there is a possibility that the domestically produced pet coke could be diverted to other polluting industries triggering heavy pollution,” said an officer of the MOPNG, not authorized to speak to media.
Hence the MOPNG, in an office memorandum, sent to the ministry of environment and forest on March 9 stated: “When taking decision on for allowing import of pet coke in the country, the production of domestically produced pet coke should be factored in and import should be allowed only to that extent. However, these industries may be allowed to import for own use only and not for trading.”
The suggestion has been countered by the DGFT, claiming that quantitative restrictions is inconsistent with the WTO law.
“It may be challenged in the court. Moreover, such a measure is likely to be challenged in the WTO Dispute Settlement Body for the simple reason that it affects the exporting countries,” said the office memorandum of the DGFT sent on March 27.
Instead the DGFT has sug- gested to allow import of pet coke freely by those industries will which use pet coke as an input. This can be monitored by the Union environment and forest ministry.
A senior official of the ministry of environment and forests said, “We have received responses from the Ministry of Petroleum and Natural Gas (MOPNG) and the Directorate General of Foreign Trade (DGFT). The ministry will now take a view over the ban on import of pet coke.”
In November, the Supreme Court banned pet coke use in a few states around the National Capital Region in a bid to curb pollution. Later, some relaxations were given to the cement industry. Earlier this month, the Union government had informed the apex court that it was mulling banning use of pet coke across the country to curb industrial pollution.
The Environment Pollution (Prevention & Control) Authority has been demanding a ban on the import of pet coke, citing its extremely polluting nature and a surge in its import in recent years. “The DGFT’S view is not tenable. Pet coke is very harmful as it is highly polluting. The government has the right to protect its own citizens,” said Sunita Narain a member of the SC appointed panel, EPCA.
the Supreme Court banned the use of petroleum coke, better known as pet coke, in Rajasthan, Haryana and Uttar Pradesh Delhi banned the two fuels in 1996, but their use continued in NCR
the Centre told the Supreme Court that it was considering a nationwide ban on pet coke
India is the world’s biggest consumer of pet coke
India imports over half its annual petcoke consumption of about 27 million tonnes, mainly from the United States Local producers include Indian Oil Corp, Reliance Industries and Bharat Petroleum Corp.
It is mostly used as a fuel in cement factories, dyeing units, paper mills, brick kilns and by ceramics manufacturers
Pet coke emits 11% more greenhouse gases than coal, according to the Carnegie–tsinghua Center for Global Policy
Petrol and diesel has 50 parts per million (PPM) of the highly dangerous sulphur. Comparatively, pet coke 69,000-74,000 ppm sulphur.