(LiveMint)
The government on Friday allowed import of petcoke for use as feedstock in some industries, sending shares of cement manufacturers higher. Cement companies, which account for about three-fourths of the country’s petcoke use, were impacted by petcoke-related policy flip-flops, which began with a Supreme Court judgment banning use of the fuel in and around New Delhi last year.
The Directorate General of Foreign Trade banned the use of imported petcoke as fuel, but said shipments for use as feedstock in certain industries were allowed. “Import of Petcoke is allowed for only cement, lime kiln, calcium carbide and gasification industries, when used as the feedstock or in the manufacturing process on actual user condition,” the directorate general of foreign trade said.
Shares of cement companies such as Ultratech Cement Ltd , Shree Cement Ltd, Ambuja Cements and ACC Ltd rose following the announcement. Shree Cement, one of the country’s significant users of petcoke, saw its shares rise as much as 3.6% to Rs 17,898, its highest level this month. Usage of petcoke, a dirtier alternative to coal, in the energy-hungry country has come under scrutiny due to rising pollution levels in major cities.
