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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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Cement Makers’ Margins To Fall Rs 50-75 Per Tonne Amid West Asia Conflict

Crisil Sees Margins Easing Despite Steady Demand

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Crisil said operating margins of Indian cement manufacturers are expected to decline by Rs 50-75 per tonne (t) this fiscal to Rs 925-950 per t due to higher input costs triggered by the West Asia conflict. The analysis covered 18 cement companies accounting for nearly 90 per cent of India’s domestic cement capacity and noted margins had improved sharply to around Rs 1,000 per t in fiscal 2026.

Crisil noted that the reduction would be driven mainly by higher power and fuel costs, which account for about 30 per cent of total costs, as petcoke and imported coal prices have surged amid geopolitical uncertainties. Freight costs, which account for about a quarter of total costs, are also expected to remain elevated because of higher diesel prices. The impact on profitability is likely to be more pronounced in the first half of the fiscal year before easing commodity prices moderate cost pressures later.

The rating agency said steady domestic demand and strong balance sheets should keep credit profiles stable despite the moderation in margins. Green energy currently accounts for 35-40 per cent of the sector’s total electricity consumption and is expected to partly cushion higher energy costs. Operating cash flows are likely to remain resilient, supported by projected 6-7 per cent growth in cement demand this fiscal.

Crisil highlighted that demand growth will be driven primarily by infrastructure spending, which meets about one-third of sector consumption, and by a nearly 18 per cent higher budgetary allocation for core ministries that should support project execution. Weaker rural housing demand amid pressure on agricultural incomes from a possible below-average monsoon may be offset by improved urban housing demand supported by favourable home-loan rates and a strong pipeline of Pradhan Mantri Awas Yojana-Urban projects. Ongoing capacity additions will keep capital expenditure elevated and may lift net debt to EBITDA to between 1.2 and 1.4 times from around 1.0 time last fiscal, though ratios are expected to remain healthy.

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UltraTech Board Approves Rs 50 bn Fundraise Via NCDs

Company to issue half a million debentures for expansion plan

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UltraTech Cement’s board of directors has approved raising Rs 5,000 crore (Rs 50 bn) through non?convertible debentures issued in rupees.

The finance committee cleared a proposal to issue up to 500,000 fully paid, unsecured, listed, rated, redeemable, rupee?denominated, non?convertible, non?cumulative debentures of Rs 1 lakh each (Rs 0.1 mn each), aggregating to the Rs 5,000 crore programme.

As of June 2026 the firm reported net debt of Rs 15,875 crore (Rs 158.75 bn) and said its capacity expansion projects under execution are backed by capital expenditure of about Rs 17,000 crore (Rs 170 bn) over the next two to two?and?a?half years.

UltraTech spent Rs 9,500 crore (Rs 95 bn) on capital expenditure in financial year 2026 and in April the group crossed 200.1 mn tonnes per annum of domestic grey cement capacity and 205.5 mn tonnes per annum of global capacity.

The chief financial officer indicated the company would take consolidated capacity beyond 242 mn tonnes per annum, with grey cement capacity reaching 212.7 mn tonnes per annum by the end of financial year 2027. He noted the net debt?to?earnings before interest, taxes, depreciation and amortisation ratio stood at 0.87 times as of June 2026 and the company was confident of ending financial year 2027 with the ratio below one time.

In the first quarter of financial year 2026?27 UltraTech’s net profit attributable to owners rose 16.8 per cent year?on?year to Rs 2,599.3 crore (Rs 25.993 bn) and revenue from operations increased 15.9 per cent to Rs 24,648.20 crore (Rs 246.482 bn). The board approval is expected to complement internal cash flows as the company advances its expansion programme.

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Lokesh Lays Stone For Rs 31 Billion Cement Unit In Kadapa

Line-2 expansion to make Kadapa a major cement hub

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Andhra Pradesh Education and IT Minister Nara Lokesh on Wednesday laid the foundation stone for the Line-2 expansion of Dalmia Bharat Cement at Chinnakomerla village in Mylavaram Mandal in Kadapa district. The project carries an investment of Rs 31 billion (bn) and is slated for completion by the third quarter of the financial year 2028. The expansion is intended to boost industrial growth and employment generation across the Rayalaseema region.

Once commissioned, the Kadapa facility will become Dalmia Bharat’s largest integrated cement manufacturing ecosystem in southern India, creating over 1,000 direct and indirect jobs and opening new business avenues for regional micro, small and medium enterprises and transport operators. Lokesh said the expansion signalled growing corporate confidence in the state and reflected the practical ease of doing business that secured repeat investment.

He placed the project within the government’s wider economic targets and recalled the Yuvagalam padayatra commitment to generate two million (mn) jobs within five years, noting that the state would cultivate talent while industry created opportunities. Lokesh highlighted Andhra Pradesh’s competitive pursuit of major manufacturing accounts, mentioning past successes and a personal initiative to engage global investors when persuading them to anchor expansion in the state.

The plant will leverage Kadapa’s abundant limestone reserves to scale production and sustainability. Clinker capacity is planned to rise from two point five million tonnes per annum (mn tpa) to six point one mn tpa, while overall cement output will increase from three point six mn tpa to nine point six mn tpa. The unit is designed to operate on over eighty per cent renewable energy and deploy waste heat recovery, zero liquid discharge, water recycling and advanced AI systems to optimise efficiency. Industries Minister TG Bharat, BC Welfare Minister S. Savitha and Jammalamadugu MLA C. Adinarayana Reddy attended the ceremony.

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