India bans petcoke import, but allows use in select industries
Shares of cement companies rose soon after the announcement was made. They had been reeling under petcoke-related policy flip-flops for nearly a year now.business Updated: Aug 17, 2018 19:15 IST
India on Friday banned the import of petcoke for use as fuel, but allowed select shipments for use as feedstock in certain industries.
“Import of petcoke is allowed only for cement, lime kiln, calcium carbide and gasification industries, when used as the feedstock or in the manufacturing process on actual user condition,” Reuters quoted the directorate general of foreign trade as saying.
Shares of cement companies such as Ultratech Cement Ltd , Shree Cement Ltd, Ambuja Cements and ACC Ltd rose soon after the announcement was made. Shree Cement, one of the most significant users of petcoke in the country, saw its shares rise by as much as 3.6 per cent to Rs 17,898, its highest level this month.
Cement companies, which account for about three-fourths of the country’s petcoke use, were impacted by petcoke-related policy flip-flops, which began with a Supreme Court judgment banning the fuel’s use in and around New Delhi last year.
India has come under global scrutiny over petcoke usage contributing to rising pollution levels in many of its major cities. As the world’s largest consumer of petcoke, the country gets over half its annual petcoke imports of around 27 million tonnes from the United States. Local producers include Indian Oil Corp, Reliance Industries and Bharat Petroleum Corp.
According to the Carnegie–Tsinghua Center for Global Policy, India is the world’s biggest consumer of petcoke – or petroleum coke – a dark solid carbon material that emits 11 per cent more greenhouse gases than coal.
(With Reuters inputs)
First Published: Aug 17, 2018 19:14 IST