Chemical factories deserting Tarapur for Gujarat due to green cover mandate

The Gujarat government allows firms to undertake plantations in other areas, which is attracting chemical units to the state in droves.

PALGHAR: Chemical factories operating in the Maharashtra Industrial Development Corporation (MIDC) estate at Tarapur are gradually shifting base to Gujarat as they have no space to accommodate tree plantations within their premises.

Chemical factories deserting Tarapur for Gujarat due to green cover mandate

Most of the units are at least 25-30 years old and in urgent need of upgradation or expansion but are unable to do so as rules mandate that they must have 40% tree cover within their premises to qualify for environmental clearance. The Gujarat government allows firms to bypass this requirement and undertake plantations in other areas, which is attracting chemical units to the state in droves, several office-bearers and members of the Tarapur Industrial Manufacturing Association (TIMA) told Hindustan Times.

“Around 6-7 chemical firms have already shifted their factories from Tarapur to Sayakha and Dahej industrial areas in Gujarat while another 20-25 firms are in the process of moving there,” said SR Gupta, secretary, TIMA. The latter firms have started additional plants in Sayakha, located around 286 km away from Tarapur, and moved nearly 40% of their staff in anticipation of their impending shift, he explained.

“Many other chemical companies in Tarapur MIDC are likely to follow their lead as the Gujarat government allows chemical manufacturing units to meet the 40% green cover requirement in areas outside industrial estates. It also provides better incentives,” Gupta told HT.

Paucity of space

Tarapur MIDC, one of the biggest industrial estates in the country, has over 1,450 industrial units, including 612 small and medium-size chemical factories, among which around 450 are operational. These units were mostly set up by graduates from the University Department of Chemical Technology (UDCT), the Indian Institute of Technology and other reputed institutions around 25-30 years ago and are in urgent need of upgradation, diversification and capacity enhancement, TIMA members told HT.

“The chemical factories are mostly located on plots measuring from 800-1,000 square metres and have already utilised the available floor space index (FSI),” said Nilesh Patil, a member of TIMA.

The factories need to allocate space within their premises for roads, storage facilities, electrical installations, generators, administrative offices and safety areas, said another TIMA member who has a chemical factory in Tarapur MIDC. “Thus, we have very little space for expanding or upgrading our facilities,” he said.

A related and more urgent issue blocking the expansion of chemical industries in Tarapur MIDC is the requirement for 40% green cover within their factory premises, said TIMA members.

They said the 2006 EIA notification mandates that industries, including chemical units, must ensure there is green cover on at least 40% of the project land before making any changes in their products, manufacturing process or capacity. Industries setting up new units or expanding their operations also need to secure no-objection certificates for intake of primary treated effluents in the Common Effluent Treatment Plant (CETP) or install a Zero Liquid Discharge (ZLD) plant, which costs ₹5-9 crore, they mentioned.

“Providing 40% green cover is impossible due to lack of space. If the state government doesn’t find a solution to the problem, this industry will not survive,” said the chemical factory owner quoted earlier.

Owners of chemical factories in Tarapur want the Maharashtra government to allow them to undertake plantations outside their factory premises, along the lines of a June 5, 2024 circular issued by the Gujarat Pollution Control Board. The circular permits factories to meet the 40% green cover requirement by developing green belts outside industrial estates, on private or government land, forest land or land owned by local bodies.

“We had written to the state environment minister on April 3, requesting him to provide a similar option in Maharashtra. But we have not heard back yet,” said Gupta.

Alongside a relaxation in the green cover requirement, the Gujarat Industrial Development Corporation provides lands at cheaper rates and assists applicants in obtaining necessary permissions, said another TIMA member who did not wish to be named.

“The biggest benefit of shifting to Gujarat is ease in expansion of units and increase in production capacity, which play a key role in the business,” said the factory owner.

Environment consultant Pratik Thakur concurred with factory owners in Tarapur, saying many industries in various MIDCs in the state were affected due to the 2006 EIA notification.

“Gujarat’s relaxation regarding undertaking plantation activity outside industrial estates has worked well, especially with chemical units. It has also helped increase afforestation in the state. If the Maharashtra government effectively implements similar relaxation, it will boost the chemical industry in the state,” said Thakur.

A senior MIDC official conceded that the 40% green cover requirement was onerous but said the MIDC had no role in the matter.

“It is for the state government to take a policy decision in this regard,” the official said.

‘Bamboo plantations viable’

Pasha Patel, former legislative council member and chairman of the Maharashtra State Agricultural Price Commission, said industries could fulfill the 40% green cover mandate by planting bamboo.

“Bamboo grows in four years and gives good monetary returns. Environmental and monetary benefits make it the best option for afforestation,” he said.