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Supreme Court Dismisses Appeal Seeking Increased Allocation Of Raw Pet Coke For Industrial Use

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The Supreme Court while hearing an appeal developing from the judgment of the Division Bench of Delhi High Court declined the claims of the appellant looking for an increased allotment of Raw Pet Coke (RPC).

While providing the decision, the Court put focus on a previous order in which the amount of RPC was repaired at 1.4 million MT in assessment with the Pollution Board.

The Bench headed by Justice S. Ravindra Bhat and Justice Dipankar Datta held that “The Division Bench noted, correctly that the annual total limit of import of 1.4 million Metric Tonnes was based on the total production capacity as on 09.10.2018 which had been fixed by this court on the basis of the capacity disclosed by all the calciners. It was also observed that an SPCB could indicate the permissible limit of production of calcined petroleum coke.”

Further, “the total figure of 1.4 million Metric Tonnes of RPC was based on the permissible capacity as on 09.10.2018. The Division Bench, therefore, concluded that if production capacity had increased, the proportionate share to be given was after clearance by this court.”

AOR Raj Bahadur Yadav stood for the Appellant while Solicitor General Tushar Mehta together with Senior Advocate Sonia Mathur appeared for GOI, M/s Ahmadi Law Offices, AOR stood for Respondent No.1

The appeal challenged the choice of a Division Bench of Delhi High, in which the Court declined a need for increased allotment based upon an increased production capability. The Division Bench held that when this court passed the order, every calciner had actually offered its capability. This was based totally on the overall production capability. The overall limitation of import of 1.4 MMTPA was based upon the overall production capability as on 09.10.2018 which had actually been repaired by the court on the basis of the capability divulged by the calciners themselves.

The appellant, Sanvira Industries is involved in the production of Calcined Petroleum Coke (CPC). On 18th July 2018, the Central Ministry of Environment, Forest and Climate Change (“MoEF”), officers of the Environment Pollution (Prevention and Control) Authority for NCR and the Ministry of Petroleum and Natural Gas (“MPNG”) chose that import of pet-coke be should be limited just to markets utilizing it as a feedstock or as part of their production procedure and not as fuel.

On October 9, 2018, an order was passed directing that RPC import cannot go beyond 1.4 MMTPA which it might be utilized as feedstock for producing CPC. The figure of 1.4 MMTPA was based upon the production capability of calciners offered by every one of them.

On  March 22, 2019, the Appellant had actually asked for an increased allotment, based upon its claim of improved capability to the degree of 1,30,000 MTPA. This application for improvement was declined which likewise declined a comparable application for increased capability by the objecting to participant, Rain CII.

On May 4, 2020, the Andhra Pradesh State Pollution Control Board (APSPCB) released a letter mentioning that according to its record, based upon examination of Sanvira’s system, the latter’s capability for manufacture of calcinated petroleum coke was 3,30,000 MT per year and the power generation capability was 16 MW.

Upon taking a look at the truths and submissions, the Bench held that “The Division Bench noted, correctly that the annual total limit of import of 1.4 Million Metric Tonnes was based on the total production capacity as on 09.10.2018 which had been fixed by this court on the basis of the capacity disclosed by all the calciners. The certificate dated 04.05.2020 issued by the APPCB merely certified that the installed capacity of Sanvira, as on 09.10.2018, for manufacturing calcined petroleum coke, was 3,30,000 Metric Tonnes per annum in terms of the CTO. In these circumstances, the clarification of APPCB, that as on a particular date, the production capacity was 3,30,000 MTPA was of no consequence, because it was the CTO that was considered all along, in all previous meetings. Therefore, the findings and conclusions of the Division Bench cannot be faulted.”

Accordingly, the appeal was dismissed without any expenses.

Cause Title: M/S. Sanvira Industries v. Rain CII Carbon (Vizag) Ltd. & Ors.

Click here to read/download the judgment

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