Pet Coke Import – Statutory Regulations Update

Earlier the Hon’ble Supreme Court of India had allowed the import of petroleum coke by cement, lime kiln, calcium carbide, gasification and graphite electrode industries for use as feedstock or in the manufacturing process on actual user basis.

Subsequently, the country’s apex court issued an order on 4 Oct’18, regarding import of Calcined Petroleum Coke (CPC) up to 0.4 million tonnes (MnT) per annum in aluminum industry. Similarly, import of Raw Petroleum Coke (RPC) up to 1.4 MnT per annum for CPC manufacturing industries have been also allowed. Accordingly, DGFT (Director General of Foreign Trade), Ministry of Commerce & Industry, Department of Commerce issued the notification on 23 Oct’18.

DGFT has issued another notification dated 26 Nov’18 giving further directions and modalities for import. It describes the guidelines for import of pet coke. Accordingly, the eligible customers applied for an import license to DGFT along with valid consent certificate by SPCB (State Pollution control Board).

DGFT called for a meeting on 27 Dec’18 and finalised the allocations for the calciners.

The committee, after considering various representations, has made the allocations based on 50% of the production capacities of each calciner, as indicated in SPCB certificates. Therefore, the total allocated quantity is 7,00,000 MT upto 31 Mar’19, based on annual allocation of 1.4 MnT.

The details of the allocations made to various industries are as follows:

S.N. NAME ANNUAL PRODN CAPACITY HALF CAPACITY ALLOCATION
1 RAIN CII 511,000 255,500 253,339
2 SANVIRA 200,000 100,000 99,154
3 GOA CARBON 308,000 154,000 152,697
4 KALINGA CALCINER 46,200 23,100 22,905
5 INDIA CARBON 54,000 27,000 26,772
6 PETRO CARABON 93,744 46,872 46,475
7 AMRITESH IND 24,000 12,000 11,898
8 BRAHAMPUTRA CARBON 100,000 50,000 49,577
9 NEO CARBON 75,000 37,500 37,183
 TOTAL 1,411,944 705,972 700,000

Some major calciners are not satisfied with the allocations and are still approaching the authorities for increase in allocation. Domestic GPC based customers like Amritesh, Brhamputra and Neo Carbon have been also given allocation. Some smaller calciners also, who could not apply earlier or did not get the allocation, are also taking up the issue.

Sanvira has approached that their current annual production capacity of 3,30,000 MT has not been considered and allocation is based on annual capacity of 2,00,000 MT. This has created a wide gap for them.

DGFT has also advised that if any customer is not able to import the allocated quantity, it must be surrendered by 31 Mar’19, so as to re-distribute it.

It has been also advised that end user conditions must be adhered and strict action would be initiated if any consumer is found trading the product.

The above will be reviewed by 4 Feb’19.


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