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A big win for Delhi-NCR

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The ban on pet coke and furnace oil in industrial sectors of Haryana, Rajasthan, and Uttar Pradesh has received mixed reactions from the industry experts. However, the Centre for Science and Environment has welcomed the Apex Court’s decision.

In a landmark delivered on October 24, 2017 the Supreme Court bench comprising of Justice Madan B Lokur and Justice Deepak Gupta banned the use of dirty furnace oil and pet coke in Haryana, Rajasthan and Uttar Pradesh from November 1, 2017. These fuels are already banned in Delhi. The Centre for Science and Environment (CSE) has lauded this directive as a big win for Delhi-NCR as well as the rest of the country fighting a tough battle against toxic pollution.

The bench has also directed the Ministry of Environment and Forests and Climate Change (MoEF&CC) to notify the standards for nitrogen oxide (NOx) and sulphur oxides (SOx) for industrial sectors; the standards have to be complied with by December 31, 2017. In addition, the MoEF&CC has also been directed to pay a fine of Rs 2 lakh to the Supreme Court. This order has come in response to the findings and recommendations of the Environment Pollution (Prevention and Control) Authority (EPCA), which exposed widespread use of these fuels in industrial sectors of the NCR and found extremely high levels of toxic sulphur in these fuels.

Anumita Roychowdhury, Executive Director – Research and Advocacy, CSE, elaborated: "EPCA investigations have exposed extremely high sulphur levels in these fuels as stated above." Furnace oil and pet coke are the dirtiest by-products and residual fraction from the refinery process. Use of these fuels was banned in Delhi way back in 1996.

What has the court’s order done:
Eliminates the use of dirtiest industrial fuels in Haryana, Rajasthan and Uttar Pradesh and mandates first ever stringent NOx and SOx standards for industry nation-wide: This momentous order eliminates in one stroke the use of dirtiest bottom-of-the-barrel fuels from the industrial units of the neighbouring states of Uttar Pradesh, Haryana and Rajasthan, and makes all industrial units across the country liable for compliance with the new emissions standards by December 31, 2017.

Enormous pollution reduction potential from the industrial sector: Use of such dirty fuels contribute hugely to toxic gases like sulphur dioxide and nitrogen oxide in the air. Moreover, these gases, once out in the air form secondary particulates and add to the particulate load. A large number of industrial units operating in Ghaziabad, Faridabad, Bhiwadi, Noida and Greater Noida, Hapur, Bulandshahar, Alwar, Jhajjar, Gurugram, Rohtak, Mewat, Sonipat, Rewari, Palwal, Karnal, Meerut and Muzaffarnagar have been using these dirty fuels.

Says Roychowdhury: "This is a very important step forward as air pollution in industrial areas is very high. Till now, there were no air pollution monitors in industrial areas of NCR. But following the Supreme Court order, air quality monitors have been installed this year in Bhiwadi, Ghaziabad (Vasundhara), and Faridabad." A CSE analysis of the data shows higher pollution levels in these areas compared to other locations – with Bhiwadi indicating the highest levels. CSE researchers point out that the order is expected to have nation-wide impact, as industries across the country will have to comply with the new standards for SOx and NOx that are not regulated currently in India.

The intervention of the Supreme Court is very opportune and timely as the recently enforced GST has created huge incentive for these dirty fuels to thrive. Both these fuels are included in GST and are in the 18 per cent tax bracket. But the industries that use these fuels for manufacture get a credit. The tax of 18 per cent is fully credited to industry. But the cleaner option, natural gas which is not included in GST pays VAT as high as 26 per cent (such as in Uttar Pradesh). This incentive is thus fanning and expanding the use of dirty fuels. Demand for pet-coke has increased to such an extent that last year India imported 14 million tonnes of pet-coke, which is more than the domestic production. If imports and domestic production are added, then India has used more pet-coke than China, when its pollution was at its peak. Roychowdhury points out: "Today, China has stopped imports of pet-coke. But India has become a dumping ground of pet-coke from the US, which has banned its internal use because of pollution." There has been a lot of delay already in the framing and implementation of the standards and the ban. All concerned agencies will now have to focus on implementation of the order. In fact, the EPCA had filed its first report on the matter in April 2017 asking for expansion of the ban on use of furnace oil and pet-coke which was already in force in Delhi, to the rest of NCR. In the due process of hearing the MoEF&CC made a plea saying instead of ban, industries should be allowed to adhere to emission standards.

Harish Salve (Amicus Curiae) in the matter, brought to the notice of the Supreme Court that there are no emission standards for SOx and NOx for industries. In response, the Court on May 2, 2017 directed that the standards be issued by the MoEF&CC by June 2017. In July 2017, the ministry asked for more time, which was granted. But industries were put on notice that they would need to comply with standards by December 31, 2017.

Today, the MoEF&CC submitted to the Supreme Court the draft emission standards for SOx and NOx, issued on October 23, 2017. The Central Pollution Control Board (CPCB) submitted an affidavit saying that it had sent the proposed standards to the ministry on June 27, 2017. For two industrial sectors-nitric acid and fertilizers-the standards had been sent way back in 2014. Clearly, the process of standard-setting was caught in a time warp. The Judges of the apex court were not amused by this inexplicable delay.

Said Sunita Narain, Director General of CSE and a member of the EPCA: "India has continued the use of these extremely polluting fuels without any regulation for too long. Any further delay in standards and implementation of the court order will make the air pollution and health risk worse. Implementation of the directive from the Supreme Court today has to be the top agenda for pollution control and we must take action urgently."

– Anumita Roychowdhury, Executive Director CSE, Research and Advocacy and head of the air pollution and clean transportation programme.

For more information from CSE, contact Souparno Banerjee of the CSE Media Resource Centre, Email: souparno@cseindia.org / Tel: 9910864339.

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FORNNAX Appoints Dieter Jerschl as Sales Partner for Central Europe

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FORNNAX TECHNOLOGY has appointed industry veteran Dieter Jerschl as its new sales partner in Germany to strengthen its presence across Central Europe. The partnership aims to accelerate the adoption of FORNNAX’s high-capacity, sustainable recycling solutions while building long-term regional capabilities.

FORNNAX TECHNOLOGY, one of the leading advanced recycling equipment manufacturers, has announced the appointment of a new sales partner in Germany as part of its strategic expansion into Central Europe. The company has entered into a collaborative agreement with Mr. Dieter Jerschl, a seasoned industry professional with over 20 years of experience in the shredding and recycling sector, to represent and promote FORNNAX’s solutions across key European markets.

Mr. Jerschl brings extensive expertise from his work with renowned companies such as BHS, Eldan, Vecoplan, and others. Over the course of his career, he has successfully led the deployment of both single machines and complete turnkey installations for a wide range of applications, including tyre recycling, cable recycling, municipal solid waste, e-waste, and industrial waste processing.

Speaking about the partnership, Mr. Jerschl said,
“I’ve known FORNNAX for over a decade and have followed their growth closely. What attracted me to this collaboration is their state-of-the-art & high-capacity technology, it is powerful, sustainable, and economically viable. There is great potential to introduce FORNNAX’s innovative systems to more markets across Europe, and I am excited to be part of that journey.”

The partnership will primarily focus on Central Europe, including Germany, Austria, and neighbouring countries, with the flexibility to extend the geographical scope based on project requirements and mutual agreement. The collaboration is structured to evolve over time, with performance-driven expansion and ongoing strategic discussions with FORNNAX’s management. The immediate priority is to build a strong project pipeline and enhance FORNNAX’s brand presence across the region.

FORNNAX’s portfolio of high-performance shredding and pre-processing solutions is well aligned with Europe’s growing demand for sustainable and efficient waste treatment technologies. By partnering with Mr. Jerschl—who brings deep market insight and established industry relationships—FORNNAX aims to accelerate adoption of its solutions and participate in upcoming recycling projects across the region.

As part of the partnership, Mr. Jerschl will also deliver value-added services, including equipment installation, maintenance, and spare parts support through a dedicated technical team. This local service capability is expected to ensure faster project execution, minimise downtime, and enhance overall customer experience.

Commenting on the long-term vision, Mr. Jerschl added,
“We are committed to increasing market awareness and establishing new reference projects across the region. My goal is not only to generate business but to lay the foundation for long-term growth. Ideally, we aim to establish a dedicated FORNNAX legal entity or operational site in Germany over the next five to ten years.”

For FORNNAX, this partnership aligns closely with its global strategy of expanding into key markets through strong regional representation. The company believes that local partnerships are critical for navigating complex market dynamics and delivering solutions tailored to region-specific waste management challenges.

“We see tremendous potential in the Central European market,” said Mr. Jignesh Kundaria, Director and CEO of FORNNAX.
“Partnering with someone as experienced and well-established as Mr. Jerschl gives us a strong foothold and allows us to better serve our customers. This marks a major milestone in our efforts to promote reliable, efficient and future-ready recycling solutions globally,” he added.

This collaboration further strengthens FORNNAX’s commitment to environmental stewardship, innovation, and sustainable waste management, supporting the transition toward a greener and more circular future.

 

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Budget 2026–27 infra thrust and CCUS outlay to lift cement sector outlook

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Higher capex, city-led growth and CCUS funding improve demand visibility and decarbonisation prospects for cement

Mumbai

Cement manufacturers have welcomed the Union Budget 2026–27’s strong infrastructure thrust, with public capital expenditure increased to Rs 12.2 trillion, saying it reinforces infrastructure as the central engine of economic growth and strengthens medium-term prospects for the cement sector. In a statement, the Cement Manufacturers’ Association (CMA) has welcomed the Union budget 2026-27 for reinforcing the ambitions for the nation’s growth balancing the aspirations of the people through inclusivity inspired by the vision of Narendra Modi, Prime Minister of India, for a Viksit Bharat by 2047 and Atmanirbharta.

The budget underscores India’s steady economic trajectory over the past 12 years, marked by fiscal discipline, sustained growth and moderate inflation, and offers strong demand visibility for infrastructure linked sectors such as cement.

The Budget’s strong infrastructure push, with public capital expenditure rising from Rs 11.2 trillion in fiscal year 2025–26 to Rs 12.2 trillion in fiscal year 2026–27, recognises infrastructure as the primary anchor for economic growth creating positive prospects for the Indian cement industry and improving long term visibility for the cement sector. The emphasis on Tier 2 and Tier 3 cities with populations above 5 lakh and the creation of City Economic Regions (CERs) with an allocation of Rs 50 billion per CER over five years, should accelerate construction activity across housing, transport and urban services, supporting broad based cement consumption.

Logistics and connectivity measures announced in the budget are particularly significant for the cement industry. The announcement of new dedicated freight corridors, the operationalisation of 20 additional National Waterways over the next five years, the launch of the Coastal Cargo Promotion Scheme to raise the modal share of waterways and coastal shipping from 6 per cent to 12 per cent by 2047, and the development of ship repair ecosystems should enhance multimodal freight efficiency, reduce logistics costs and improve the sector’s carbon footprint. The announcement of seven high speed rail corridors as growth corridors can be expected to further stimulate regional development and construction demand.

Commenting on the budget, Parth Jindal, President, Cement Manufacturers’ Association (CMA), said, “As India advances towards a Viksit Bharat, the three kartavya articulated in the Union Budget provide a clear context for the Nation’s growth and aspirations, combining economic momentum with capacity building and inclusive progress. The Cement Manufacturers’ Association (CMA) appreciates the Union Budget 2026-27 for the continued emphasis on manufacturing competitiveness, urban development and infrastructure modernisation, supported by over 350 reforms spanning GST simplification, labour codes, quality control rationalisation and coordinated deregulation with States. These reforms, alongside the Budget’s focus on Youth Power and domestic manufacturing capacity under Atmanirbharta, stand to strengthen the investment environment for capital intensive sectors such as Cement. The Union Budget 2026-27 reflects the Government’s focus on infrastructure led development emerging as a structural pillar of India’s growth strategy.”

He added, “The Rs 200 billion CCUS outlay for various sectors, including Cement, fundamentally alters the decarbonisation landscape for India’s emissions intensive industries. CCUS is a significant enabler for large scale decarbonisation of industries such as Cement and this intervention directly addresses the technology and cost requirements of the Cement sector in context. The Cement Industry, fully aligned with the Government of India’s Net Zero commitment by 2070, views this support as critical to enabling the adoption and scale up of CCUS technologies while continuing to meet the Country’s long term infrastructure needs.”

Dr Raghavpat Singhania, Vice President, CMA, said, “The government’s sustained infrastructure push supports employment, regional development and stronger local supply chains. Cement manufacturing clusters act as economic anchors across regions, generating livelihoods in construction, logistics and allied sectors. The budget’s focus on inclusive growth, execution and system level enablers creates a supportive environment for responsible and efficient expansion offering opportunities for economic growth and lending momentum to the cement sector. The increase in public capex to Rs 12.2 trillion, the focus on Tier 2 and Tier 3 cities, and the creation of City Economic Regions stand to strengthen the growth of the cement sector. We welcome the budget’s emphasis on tourism, cultural and social infrastructure, which should broaden construction activity across regions. Investments in tourism facilities, heritage and Buddhist circuits, regional connectivity in Purvodaya and North Eastern States, and the strengthening of emergency and trauma care infrastructure in district hospitals reinforce the cement sector’s role in enabling inclusive growth.”

CMA also noted the Government’s continued commitment to fiscal discipline, with the fiscal deficit estimated at 4.3 per cent of GDP in FY27, reinforcing macroeconomic stability and investor confidence.

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Steel: Shielded or Strengthened?

CW explores the impact of pro-steel policies on construction and infrastructure and identifies gaps that need to be addressed.

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Going forward, domestic steel mills are targeting capacity expansion
of nearly 40 per cent through till FY31, adding 80-85 mt, translating
into an investment pipeline of $ 45-50 billion. So, Jhunjhunwala points
out that continuing the safeguard duty will be vital to prevent a surge
in imports and protect domestic prices from external shocks. While in
FY26, the industry operating profit per tonne is expected to hold at
around $ 108, similar to last year, the industry’s earnings must
meaningfully improve from hereon to sustain large-scale investments.
Else, domestic mills could experience a significant spike in industry
leverage levels over the medium term, increasing their vulnerability to
external macroeconomic shocks.(~$ 60/tonne) over the past one month,
compressing the import parity discount to ~$ 23-25/tonne from previous
highs of ~$ 70-90/tonne, adds Jhunjhunwala. With this, he says, “the
industry can expect high resistance to further steel price increases.”

Domestic HRC prices have increased by ~Rs 5,000/tonne
“Aggressive
capacity additions (~15 mt commissioned in FY25, with 5 mt more by
FY26) have created a supply overhang, temporarily outpacing demand
growth of ~11-12 mt,” he says…

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