Survival concerns for paper mill operations: complete ban on Coal in Delhi-NCR from 1st January 23

Survival concerns for paper mill operations: complete ban on Coal in Delhi-NCR from 1st January 23

New Delhi | 27th December 2022 | The Pulp and Paper Times:

In order to curb air pollution in the National Capital Region (NCR), Commission for Air Quality Management (CAQM) had issued a policy of complete ban on heavily polluting fossil fuels including coal in the entire NCR w.e.f. 01.01.2023.

The Commission through its direction No. 65 dated 23.06.2022 had also issued the approved fuel list and prescribed a complete ban on heavily polluting fossil fuels including coal in the entire NCR.

In this regard, Coal India Limited, vide letter dated 16.12.2022, has provided a list of entities/units/industries to the Commission, those may be involved in using / acquiring / stocking / selling / trading of coal in NCR.

Few days back, Paper Industry association laments the non-equitable coal supplies and urged Prime Minister’s intervention to resolve the issue. The coal availability to paper mills has aggravated to such a level that it is compelling many mills to cut down their production or force closure.

This step by the government will impact several paper mills in Meerut, Muzaffarnagar, Shamli, and Yamuna Nagar. Already paper mills are facing sluggish demand and price drops on finished paper, this ban will add more difficulties for paper mills in order to remain commercial viable against other mills outside NCR. 

According to notification, any kind of usage / acquiring / stocking / selling/ trading of coal in entire NCR, except in Thermal Power Plants (TPPs), will be viewed as serious non-compliances/violations of the statutory directions issued by the Commission.

Paper mills use coal in the boiler to generate steam used to dry the wet paper. For past one year, coal is short in supply, affecting work at paper mills. A single paper mill employs around 300 people, of which majority are on contract basis.

The coal procurement indigenously by the pulp and paper industries has been affected forcing them to rely on imports and grid power to produce the paper products. The cost of paper and paper board have skyrocketed due to reliance on costly imports.
 

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