Javadekar assures Paper Mills for firm step over mandatory PNG’s use in Boiler

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Read news update on government's directive over PNG’s use in Boiler and Paper Industry's Step.

Javadekar assures Paper Mills for firm step over mandatory PNG’s use in Boiler

CPCB assured to take care the matter that no compliance Industry will be closed down.

New Delhi | 6 August |The Pulp and Paper Times:

Centre Government has given assurance to Delhi NCR Paper mills association that necessary steps will be taken over the arbitrary decision of Central Pollution Control Board (CPCB), which makes use of Piped Natural Gas (PNG) mandatory for boiler in paper mills instead of Coal, wood, Diesel, Paddy & Baggase as basic fuel.

Central Pollution Control Board (CPCB) on 02.07.2019 requiring State Govt. of U.P. for closure of industrial units in NCR Districts of U.P. where PNG supply is available & industry has not shifted to PNG.

Paper mills owner of NCR Paper mills association met Environment Minister, Mr. Prakash Javadekar on 6th August. Mr. Javadekar assures Mr. Arvind Agarwal, President of Association that ministry will take concern of the CPCB’s decision and after holding the discussion with designated departments, further step will float.  

Talking exclusively to The Pulp and Paper Times, Mr. Arvind Agarwal, CMD, Paswara Papers Ltd said that “We humbly requested to Mr. Javadekar that the above direction issued by CPCB may please be withdrawn forthwith & compliant units should not be asked to switch over to PNG. Only non compliant & illegally operated Units may be ordered for closure,”

Delegation also meet CPCB’s Chairman, Mr. S.P.Pariharji to discuss the issue in detail. The meeting lasted for 45 minutes approx and the Chairman asked some cross questions and clarification. Now the CPCB is fully convinced by paper mills presentation and requested to save the mills from the Public Notice of U.P. Pollution Board, wherein 15 days time has been given to switch over.

“CPCB assured to take care the matter that no compliant Industry will be closed down and matter shall be looked into properly on practical grounds,” Mr. Parihari said 

Mr. Arvind Agarwal, further told  “PNG as fuel is not a viable option for the Paper Industry as in Paper Industry energy cost is a major Input which accounts for approx 25% of total Paper Cost. Presently the energy cost is around Rs. 5000 PMT & sale price of Paper is approx Rs. 25,000 PN/IT & after switching over to PNG the cost will shoot up to around 2 to 3 times more & the Paper Industry cannot survive on such high energy cost & this high energy cost will lead to permanent closure of Paper Units,”

Mr. Himanshu Sangal, Managing Director of Sangal Papers Ltd. further explained the situation that “The existing Boilers, Turbines, equipments in Paper Industries are not designed to operate on PNG & these equipments cannot be operated on PNG. All the Paper Units need to replace & install new PNG operated Turbines & Boilers which will involve huge capital investment running in to several crores of Rupees. Estimated cost of Gas operated power plants are around Rs. 8 Crores to 9 Crores per MW. Secondly Gas operated Turbines are not available in India & Paper Units will have to purchase these Gas operated Turbines from abroad which will take minimum 2 years & above for installation,”

The Paper units in this region have adopted best technology available all over world like wet scrubbers & ESP for controlling Air Emission & after installation of ESP the Smoke from the Chimney is non - visible & negligent. The Paper Units are complying all prescribed Air Emission Norms. Further, on the direction of CPCB online monitoring Devices (OCEMS) have been installed in all Paper Units for round the clock monitoring of Air Quality within Norms.

Mr.Rajender Kumar, MD of Suchi Paper Mill said that “Govt. should first constitute a Technical Evaluation Team to assess the capital cost for installation of Gas operated Turbines, Equipment in all Paper Industries in the region to assess increased operating cost on Gas and a comparative study to be prepared.”

“By closure of Paper Industries in the region approx 2 lacks families of employees will be affected & there will be a revenue loss of more than Rs. 2,500 Crores in terms of GST, lncome Tax & other taxes, the industries in the region will be completely ruined,” Said Mr. Pankaj Agarwal from Bindal Paper Mill.

“If the Govt, still forces the industry to shift to PNG, We demand that Paper industry should be provided subsidized PNG at par with other available fuels like coal & Biomass efc. & a/so provide capital investment subsidies, interest free loan to purchase Gas operated Boilers, Turbines & other related equipmenfs & a/so provide sufficient time for replacement of Gas operated equipments,” Mr. Sangal told on the sideline of the meeting.

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