Supreme Court Dismisses Appeal, Upholds Restrictions on Import and Allocation of Raw Petroleum Coke

In a significant ruling, the Supreme Court of India has upheld the restrictions on the import and allocation of Raw Petroleum Coke (RPC). The judgment, delivered by a bench comprising Justices S. Ravindra Bhat and Dipankar Datta, dismissed the appeal challenging the allocation criteria for RPC and affirmed the concerns raised by the Environment Pollution Control Authority (EPCA) regarding the environmental impact of calcined petroleum coke (CPC) usage.

The case revolved around the import and allocation of RPC, with the EPCA raising serious concerns about the highly polluting nature of this fuel. The EPCA's report, submitted to the court, emphasized the need to control the usage of pet coke in the country, particularly in industries, to mitigate pollution caused by fugitive emissions.

The Supreme Court took note of the EPCA's recommendations, which suggested that the calciner industry should be allowed to import pet coke for use as feedstock rather than fuel, as anode grade pet coke was not readily available in sufficient quantities in the country.

The judgment also highlighted the importance of accurate estimation of import capacities and utilization of RPC. The figures provided by the industry itself were considered, including the capacity mentioned in the Consent to Operate (CTO) issued by the concerned Pollution Control Board. The guidelines for the regulation and monitoring of imported pet coke were also taken into account.

The court observed that the CTO issued by the Andhra Pradesh Pollution Control Board recorded the total capacity of a particular unit, and any increase in capacity after the court's order dated October 9, 2018, would not be considered for allocation purposes. The court emphasized the significance of the CTO as the material document for determining allocation criteria.

The judgment further addressed the interpretation of a public notice issued by the Director General of Foreign Trade (DGFT), which specified the requirement of a State Pollution Control Board certificate indicating the unit's capacity as of October 9, 2018. The court clarified that the certificate from the Pollution Control Board was crucial and that any claims of increased capacity after the specified date would require clearance from the court for consideration in allocation.

The Supreme Court's decision aligns with the government's consistent position that any capacity added after the court's order should not be considered for RPC allocation. The court's dismissal of the appeal affirms the allocation criteria based on the total production capacity as of October 9, 2018, as determined by the court.

Date of Decision: July 3, 2023

M/S. SANVIRA INDUSTRIES   vs RAIN CII CARBON (VIZAG) LTD. & ORS.   

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