India’s coal ban poses a survival crisis for paper mills in the capital region

On December 26, 2022, the Indian Air Quality Management Commission (CAQM) issued a directive on the comprehensive prohibition of the use, supply, sale, and trading of coal in the NCR region of Delhi (the capital municipality of Delhi), which stipulated that the directive would be formally implemented from January 1, 2023. In response, the NCR Regional Paper Association has begun active action and hopes that CAQM will amend the previous notice to allow NCR regional paper mills to use low sulfur coal in their own thermal power plants.

In response, Mr. Arvind Agarwal, Chairman of the Association and Head of Paswara Papers Paper Mill in India, said, “On this issue, we hope that CAQM will fully consider the current situation of the paper mill and allow its own thermal power plants to use low sulfur coal. Of course, during the use process, we will strictly comply with the emission standards and orders applicable to thermal power plants.”.

In the document submitted to CAQM, the Association earnestly requests the issuance of necessary clarifications, stating that from January 1, 2023, the use of low sulfur coal is allowed in self-provided thermal power plants throughout the NCR region, and low sulfur coal is not included in the mandatory prohibition scope. Otherwise, the paper mills in the NCR region will face an energy and survival crisis.

Mr. Agarwal stated that the paper mills located in the NCR region have about 40 self-provided power plants. If CAQM makes some clarifications in its instructions, it can help the paper mills escape this survival crisis.

In order to curb air pollution in the NCR region of Delhi, CAQM has repeatedly emphasized that the use of heavily polluting fossil fuels, including coal, will be completely banned throughout the NCR region from January 1, 2023, which undoubtedly has a negative impact on many energy dependent enterprises, including paper making. Therefore, multiple associations, including paper making, have submitted documents hoping that the government can flexibly handle the implementation of the coal ban, Low sulfur coal is allowed to be used in facilities such as self owned power plants with low pollution.

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Post time: Mar-20-2023