Jaipur: Still to recover from the twin blows of demonetisation and GST, Rajasthan’s major industries are staring at a bleak future after Supreme Court’s ban on use of pet coke - a measure ordered for cleaning the air.
The ruling BJP is also feeling the heat as the imminent lay offs in factories facing near-closure could blunt its efforts to fulfil the election promise of creating 1.5 million new jobs.
If needed the state government will also file a review petition in the Supreme Court against the ban, sources said.
The ban on pet coke may also jeopardise the much-awaited and politically controversial oil refinery in border district of Barmer. According to Rituraj Tiwari, regional director of PHDCCI in Rajasthan, the ban will make the proposed oil refinery more unattractive.
The projected revenue from sale of pet coke, which would have been a by-product from the refinery, was also taken into account in the feasibility report. “Without pet coke sale in Rajasthan the refinery will not be financially viable,” he said.
The proposed refinery has been an issue of clash between the Congress and the ruling BJP. The Congress, whose government negotiated the MoU for the project, has often accused the BJP government of trying to delay and renegotiate the MoU.
Chief minister Vasundhara Raje is well aware of political fallout due to potential threat to various industries and lakhs of jobs.
Recently, a delegation headed by Meghraj Lohia, senior BJP leader and president of All India Lime Manufacturers’ Association, apprised her of looming crisis after which the state government shot off a letter to the central government.
The pet coke ban will have the biggest adverse impact on the cement industry but the ripple effect will be felt across sectors, including mining and power generation.
Initially, the ban was only applicable for the national capital region (NCR) but in the latest order on November 17, the Supreme Court extended it to all states and regions.
With Assembly elections due next year, the ruling BJP, which had promised 1.5 million new jobs during its 5-year term can ill afford to have another massive spike in unemployment triggered by the ban on the polluting industrial fuel.
According to Assocham. the ban on pet coke may lead to 2.5 million job losses in NCR alone.
Rajasthan is likely to be worst-hit as it is the largest cement producing state. There are 21 major cement manufacturing plants including tip brands like Shree Cement, Ultra Tech, JK Cement, Ambuja and ACC.
To reduce cost, almost 90 per cent of the fuel requirement in cement plants is met with pet coke. If cement companies are hit, the resultant impact will also be felt by the lime stone industry, said industry sources.
Rajasthan’s share in the total lime stone production in the country is 12 per cent. It has huge reserves of cement grade and steel-melting-shop (SMS) grade limestone.
The ban on pet coke may also hit jobs in sectors like ceramic, textiles and fertilizers.
“It will badly hit small and medium enterprises forcing them to close down as the cost of operation will go up by at least 30 per cent if pet coke is replaced by other clean fuel,” said Mr Tiwari.
Countering argument of pollution from pet coke, he said, “It causes 11% more pollution than coal but threetimes more efficient and at costs 25% less.”
Pet coke, a by-product of petroleum is cheaper alternative to coking coal and India is the largest consumer of pet coke after China.
