Allocation of Remaining Quantities of Raw Petroleum Coke

The Commission for Air Quality Management (CAQM) has issued an Order to the Directorate General of Foreign Trade (DGFT) directing the allocation and distribution of the balance quantity of 0.4 million
tonne of Raw Petroleum Coke (RPC). This RPC for the year 2023-24 shall be distributed to the eligible Calcined Petroleum Coke (CPC) manufacturers. This order was issued on November 24, 2023.

It may be noted that the Supreme Court, through its Order dated October 10, 2023 in the matter of “M.C. Mehta Vs. Union of India & Ors.,” had delegated certain issues related to pet coke to the CAQM. The Commission, in turn, constituted a Sub-Committee to examine and decide on the delegated issues, including the allocation of pet coke to calciners.

The Sub-Committee, comprised of members from the Ministry of Environment, Forest and Climate Change; Ministry of Commerce and Industry; Ministry of Petroleum and Natural Gas; Central Pollution Control Board; and Directorate General of Foreign Trade, co-opted a member from the National Environmental Engineering Research Institute.

The Hon’ble Supreme Court directed the Commission to consider the allocation of remaining quantities of RPC (0.4 million tonnes), granting the Commission the authority to pass interim directions uninfluenced by other court orders. The court emphasized that all concerned parties would be heard in the process, and interim directions would be bestowed after earlier consideration within 4-6 weeks.

The Sub-Committee, after detailed deliberations and hearing from 16 CPC manufacturers, issued a public notice to provide an opportunity for all CPC manufacturers to be heard. The DGFT briefed the Sub-Committee on the methodology for the allocation of imported pet coke from 2018-19 onwards.

Based on discussions and presentations, the Sub-Committee noted that some calciners had surrendered a significant quantity of allotted RPC in previous years. Consequently, the Sub-Committee decided that calciners who had honored their allocation by maximum utilization in the past would be considered for fresh allocation of the remaining 0.4 million tonnes for the fiscal year 2023-24.

The Sub-Committee unanimously decided to distribute the remaining 0.4 million tonnes of RPC to all eligible calciners on a pro-rata basis, following the existing methodology adopted by the DGFT. Certain criteria were laid out, including considerations for those who had not applied before, surrendered significant quantities, or featured in specific reports.

In light of the Sub-Committee’s decision, the DGFT is directed to allocate and distribute the balance quantity of 0.4 million tonnes of RPC for the year 2023-24 to eligible CPC manufacturers promptly, with intimation to the Sub-Committee.

This landmark decision is expected to bring clarity and fairness to the allocation process, ensuring a balanced distribution of pet coke among manufacturers.

RECENT UPDATES