The Supreme Court allowed cement makers to use petroleum coke, easing its ban on the highly polluting fuel.
The apex court had on Oct. 24 banned the use of pet coke and furnace oil in Uttar Pradesh, Haryana and Rajasthan from Nov. 1 in view the pollution in Delhi and the National Capital Region, noting that the states had no objection to it.
Pet coke is a key element in cement production. Shares of cement makers such as Shree Cement Ltd., Ambuja Cement Ltd. and JK Cement Ltd. rose 2-3 percent after the announcement.
Cement companies had argued that since pet coke is used in the kiln as a feedstock, it's not as polluting as using pet-coke as a fuel by power plants, a Kotak Equities report released before the Supreme Court announcement said. “The Ministry of Environment, Forest and Climate Change is supportive of such a stance, and is also looking to represent to the apex court on the same. A withdrawal of the ban on usage of pet coke for cement players in the north will allow cement companies to maintain their previous fuel mix, even as we note rising prices of pet-coke,” the report said.
After the Oct. 24 order, several industries that use pet coke and furnace oil had approached the top court seeking time to implement its order.
Also Read: South-Based Cement Players, Coal India Likely To Gain From Petcoke Ban
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