While nearly 10,000 units have been severely impacted by the ban on the use of petcoke and furnace oil from November 1, toxic air might drive away expats from NCR and hurt tourism business, says Assocham.

Keeping in view the pollution levels in Delhi and national capital region (NCR), the Supreme Court on October 24, 2017 banned the use of pet coke and furnace oil in Uttar Pradesh, Haryana and Rajasthan from November 1.

It is estimated that about 1,000 units directly and nearly 10,000 allied units have been severely impacted by the ban on the use of petcoke and furnace oil from November 1, said the Associated Chamber of Commerce and Industry of India (Assocham). Assocham has advocated giving adequate time to the industrial consumers to migrate from the furnace oil and pet coke to gas-based to save the livelihood of over 25 lakhs workers in the National Capital Region (NCR).

The industries (from all segments, ie large, medium and small) that are directly affected are textiles, rubber, sugar, steel, paper, packaging, forging, agro based industries etc. NCR is the major hub of export of garments and auto components.  With the closure of textile processing factories, the supply of fabric to these exporters will also be discontinued, resulting in extinction of this trade from this region.

Similarly, sugar, paper, rubber, agro based industries will also not be able to sustain their business because of sharp increase in cost of fuel, as a result of ban on use of pet coke & furnace oil.

There are no clear guidelines regarding emission of pollutants such as SO2 and Nitrogen Oxide (NOx). Earlier, the Supreme Court of India had directed the Ministry of Environment, Forest and Climate Change to formulate the norms for SO2 and NOx for the industry by June 30, 2017.

Interestingly out of all the fuels used, pet coke is being labelled as a polluting fuel only because of higher sulphur content and it is alleged that it emits SO2, which pollutes the environment. However, as per the latest report form CPCB, the SO2 level in the entire NCR region including Delhi are well within the prescribed limits.

Other than SO2 levels, PM 10 & PM 2.5 levels in the gases emitted by the use of pet coke, are also well within prescribed limits.

As per EPCA (Environment Pollution Control Authority) in PM10 and PM2.5, the main polluting particles, the industrial contribution is only 11% whereas the major contributors are road dust (38%), vehicular pollution (20%), domestic source (12%) and others.

It is imperative that adequate time be given to the industries to set up their process to meet the new norms laid down by the ministry.  Therefore, the ban needs to be lifted to save the industry as well as prevent lakhs of workers being rendered jobless, said the industry chamber.

The only alternative to furnace oil and pet coke is natural gas which is nearly four times more expensive and this the industry cannot afford in this competitive environment and poor economic scenario. The industries are already under tremendous stress after the implementation of GST and the ban on use of pet coke will prove to be the final nail in the coffin. Over 25 lakh workers will be rendered jobless in Faridabad, Ghaziabad, Gurgaon, Panipat, Sonipat & Noida alone.

As per earlier order of May 2, 2017 by the Supreme Court, according to Assocham, the industries are already in the process of procuring & commissioning the wet scrubbers & other pollution control technologies to bring down the emission levels of SO2 within the norms prescribed by CPCB & Ministry of Environment. The industry is committed to maintain a cleaner & pollution free environment.

It is also to be considered that during the Diwali holidays, most of the industries were closed from October 19-22, 2017 & were not using pet coke. Even at that time the air pollution level increased in these days, due to burning of fire crackers, vehicular pollution & stubble burning, which is an indication that the other factors are having a much bigger impact on deteriorating the air quality.

“There has been no action by the government authorities to control the dust pollution; while they are trying to control stubble burning but they are facing resistance from the farmers. But on the contrary the industry is always agreeing to fully comply with the norms as and when laid down, yet they have been punished,” said Assocham.

Toxic air to drive away highly-skilled expats

Expressing anxiety over the dangerously unhealthy air quality levels in the National Capital Region (NCR), Assocham has urged the Centre and governments of Delhi, Haryana and Punjab to establish a clear strategy for aggressively tackling air pollution.

“Different ministries, departments as well as universities, research institutions and organisations alike must come together and also engage top-tier professionals to chart out a systematic, clear timetable and roadmap for tackling air pollution and curbing its causes thereby improving Delhi’s air quality,” said Assocham in a message sent to the Union Ministry of Environment, Forest and Climate Change (MoEF&CC) along with government of Delhi, Haryana, Punjab and Uttar Pradesh.

D S Rawat, Secretary General, Assocham, commented, “Delhi is facing an emergency situation but there is hardly any intention or commitment seen to address the problem as such innovative solutions like using mist cannons, creating a special force to check construction activities, vehicular pollution, rubbish burning and other factors is the need of the hour.”

He added, “Increasing air pollution can take a toll on the urban economy by cutting short life span of people thereby increasing healthcare costs to the government, drive away top executives and talented people to other cities with better air quality thereby negatively affecting Delhi’s ability to attract highly-skilled expatriates, severely impact inflow of investments and hit sectors like tourism, hospitality, outdoor recreation and others.”

Promoting use of more efficient and less polluting energy sources, restricting growing number of vehicles and stringent enforcement of pollution laws will help in smooth transition to a more environment-friendly economy in the long-term. Cooperation across various fields is a must to achieve more targeted measures in reducing air pollution,” Rawat said.

Pollution hurts tourism sector in Delhi-NCR

The toxic smog in National Capital Region encompassing not only Noida, Gurgaon and Faridabad but also right up to Ludhiana, Meerut, Panipat, Bhiwadi and Rohtak is likely to affect the economy in sectors like tourism, transport, automobile and real estate. November and December are the peak months for foreign travelers to visit India, as majority of them opt for the Golden Triangle tourist circuit - Delhi, Agra, and Jaipur.

According to an Assocham report, Delhi's ongoing tourism season could be severely hit owing to the deadly smog in the capital city. The association interacted with 350 tour operators who revealed that international tourists are quite particular about their health and safety and with such negative developments Delhi is bound to drop off from the map of international tourists who will pick 'cleaner' South Asian destinations.

The rising pollution levels will keep foreigners away, as they are too particular about weather and climate, including their safety. Currently no major cancellation has been recorded as money is paid in advance. But during the peak tourist season, foreigners who are still in the planning stage will become skeptical about visiting Delhi, according to the Assocham paper.