CPCB Rolls Back its Decision to Shift Paper Mills on PNG’s use in Boiler

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Read the news update, News topic: CPCB's Directive to Use PNG Gas in Industrial Boilers.

CPCB Rolls Back its Decision to Shift Paper Mills on PNG’s use in Boiler

NCR Paper Mills Association met State Home Minister Mr. Nitya Nand Rai.(in the above picture)

New Delhi | 3 Sept 2019 | The Pulp and Paper Times:

On the ground of inadequate infrastructure, cost viability and insufficient time period for conversion of boiler on Piped Natural Gas (PNG), Centre Pollution Control Board (CPCB) has decided to put the matter of shifting Industries on PNG in Delhi NCR region, on the back burner.

CPCB has issued a letter on 29 August to all member secretaries of Haryana, Uttar Pradesh and Rajasthan’s State Pollution Control Board (SPCB) mentioning that ‘not to initiate any coercive action against the industrial units including Paper Mills in National Capital Region (NCR)’

CPCB’s member secretary said in the letter that “We have, subsequently, received a number of representations from Industry Associations expressing concerns particularly on cost viability, time period needed for such conversion, etc. While these representations are being examined, it is felt appropriate that at this stage coercive action may not be initiated against the industrial units in NCR, which otherwise are complying with the prescribed environmental norms,”

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

Talking to The Pulp and Paper Times, Mr. Arvind Agarwal, CMD, Paswara Papers Ltd. and President of NCR Paper Mill Association said “we have succeeded in our objective. We just being informed that letters to Member Secretary of all three NCR states viz Haryana, Rajasthan and U.P has been issued and no action on Compliant Industries will be taken,”

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 the permanent closure of Paper Units,”

Mr. Himanshu Sangal, Managing Director of Sangal Papers Ltd. further explained the situation that “The existing Boilers, Turbines, equipment in Paper Industries are not designed to operate on PNG & this equipment 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 into several crores of Rupees. The 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 a minimum of 2 years & above for installation,”

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