Cement producers in northern states of India can expect rising fuel costs on the back of the Supreme Court's ban on petcoke use in the National Capital Region (NCR) from 1 November 2017.
The Supreme Court acted to direct Rajasthan, Haryana and Uttar Pradesh governments to notify the ban immediately after it was informed that pollution in the NCR had shot up after Diwali, due to toxic gases emitted by industrial hubs that use furnace oil and petcoke, reports Hindustan Times.
"Cement players in the northern region particularly from Rajasthan (where most of the clinker plants are situated) will have to use either domestic coal or imported coal from 1 November 2017. This will result in an increase in power and fuel cost per tonne per bag by INR8-10 (US$0.12-0.15)," said India Ratings and Research.
According to Environmental Pollution (prevention and control) Authority’s clarification dated 27 October 2017, the ban will be applicable only in those districts of Uttar Pradesh, Haryana and Rajasthan that fall under NCR.
Industries using petcoke and furnace oil will have to comply by the norms issued by Central Pollution Control Board at the latest by 31 December 2017.
