Piped Natural Gas (PNG) as fuel will increase Paper Production Cost Four Times

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Read the news about fuel consumption in the industry. PNG has been made mandatory to use in the industry,

Piped Natural Gas (PNG) as fuel will increase Paper Production Cost Four Times

New Delhi | 5 August 2019 | The Pulp and Paper Times: The step taken by Central Pollution Control Board (CPCB) to make mandatory PNG’s use for boiler in paper mills instead of Coal, wood, Diesel, Paddy & Baggase as basic fuel, will make paper business dearer. CPCB has made it compulsory via its circular issued on 31st July for paper mills to use PNG as a fuel for generating steam in boiler. This order is for Industrial units fall under Delhi NCR region. According to the circular, Paper Mills are required to replace their fuelling system with CNG/PNG within 15 days.

Talking to The Pulp and Paper Times, Mr. Ashok Bansal, MD, Nikita Papers Limited, Shamli said that “We are very upset about this decision taken by Centre Government, it will finish the competitiveness of NCR region paper mills in the market because our finished product would be dearer by 3 to 4 times compare to other paper mill running their boilers on wood, coal. paddy and baggase. PNG will increase the production cost by Rs. 2000 to 3000 per tonne paper production,”

Delhi NCR Paper Mills Association President and Paswara Papers Ltd’s MD, Mr. Arvind Agarwal said “this decision will ruin thousands of industrial units fall under NCR. This is a shocking development for ‘Make in India’ programme of Govt. We will soon meet Environment Minister Mr. Prakash Javadekar to resolve the issue,”

Mr Bansal further said, “In 2017, Supreme Court put ban on the distribution, sale and use of furnace oil and pet coke in the national capital region, but Delhi’s air pollution proving that Industry is not culprit. The report of Real Monitoring Station to Supreme Court stating that emission of SO2 and NOx are still under the prescribed limits,”

“We have also proposed the court of installing an equipment in boiler section to neutralise the sulphur level with the cost of Rs. 2 Lakhs in October 2017,” Mr. Vinod Kumar , Director, Paswara Papers Ltd. said.

“Setting up infrastructure for PNG is quiet costly, it may be around Rs. 25 CR, for which Bank will not provide loan to us as our finished product will be costly. Bank want to save their principal amount at any cost,” Mr. Bansal said.

The steam generated from Boiler is used to dry paper as well electricity production. 

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