(FE)
Recently, the government banned the use of petcoke as a fuel. Petcoke is a more polluting fuel than coal, and India is one of its largest importer and consumer. However, the Directorate General of Foreign Trade has allowed its import, only for use in cement, lime kiln, calcium carbide and gasification industries, when used as the feedstock or in the manufacturing process. This import ban was long pending after the Supreme Court prohibited the use of petcoke in and around New Delhi last November, over the region’s air quality concerns.
The government imposed an additional tax on coal in 2010. Since then, petcoke has become attractive, given the higher calorific value and the absence of any additional taxation. Domestic petcoke production stood at 13.94 million tonnes in FY17, growing at a CAGR of around 20% over the last seven years. The domestic consumption of petcoke also grew at a CAGR of around 20% over the same period. Petcoke consumption accounted for 12.3% of consumption of petroleum products, second only to high-speed diesel. India plans to introduce BS-VI norms by 2020—aimed at making our vehicles less polluting. This will bring Indian vehicle standards at par with European standards. The sulphur content in BS-VI fuel is substantially lower than that of BS-IV fuel. Currently, the sulphur content in the fuel is at 50 parts per million (PPM), while BS-VI fuel has a sulphur content of 10 ppm. Such emission standards are already prevalent across many countries. These new norms will have a bearing for vehicle manufacturers, refiners and the final consumer as well, in terms of cost.
