DGFT Minutes

Minutes of the meeting held on 3.6.2020 in DGFT(HQ), Udyog Bhawan, New Delhi to finalise the quantum of (i) Calcined Pet Coke (0.5 Million MT) for Aluminium Industry and (ii) Raw Pet Coke (1.4 Million MT) for CPC manufacturing to be allotted in pursuance to the Public Notice No. 4 dated 17.4.2020 In Chair Shri Hardeep Singh, Additional DGFT The following officers attended the meeting: i. Dr. Sundeep, Scientist `F’, M/o Environment, Forests and Climate Change ii. Shri Gaurav Kumar, Director, M/o Petroleum & Natural Gas

iii. Dr. Sudheer C, Scientist `E’, M/o Environment, Forests and Climate Change iv. Shri Gagandeep Singh, Deputy DGFT 2. At the outset, the Committee noted that in pursuance to the Public Notice No. 4 dated 17.4.2020, 4 applications were received for import of Calcined Pet Coke (CPC) and 10 applications for Raw Pet Coke (RPC). The Committee noted that the Hon’ble Supreme Court in Writ Petition No. 13029/1985, vide its order dated 9.10.2018 has decreed that the import of CPC for Aluminium Industry cannot exceed 0.5 Million MT per annum in total. Similarly, import of RPC for CPC manufacturing industry cannot exceed 1.4 Million MT per annum. Accordingly, the Committee decided to make the annual allocation of both, import of CPC and RPC for the fiscal year 2020-2021.
3. Shri Gaurav Kumar, M/o Petroleum & Natural Gas informed that they have sent their comments on the proposal whereby they have mentioned that in light of COVID19 pandemic there is a possibility that the domestic requirement of CPC and RPC may be depressed.

at they have sent their comments on the proposal whereby they have mentioned that in light of COVID19 pandemic there is a possibility that the domestic requirement of CPC and RPC may be depressed. MoPNG recommended that DGFT may suitably make the allocation of RPC considering current domestic production and demand scenario while for CPC, DGFT may take a decision at their end. It was discussed that the total demand of RPC for all the companies put together comes out to 24.23 Lakh MT while quota allocation is of 14 Lakh MT. It had been informed to the Committee that the domestic production is around 5 Lakh MT. Hence, there is substantial demand for domestic raw material as well from these 10 firms. Moreover, there are other firms which are not importing any raw material and using

domestic RPC. Hence, the Committee decided to go ahead with the allocation of 1.4 million MT as per limit set up by the Supreme Court. 4. M/s Rain CII Carbon (Vizag) Ltd, SEZ Unit has submitted an application for quantity of 4,88,000 MT of RPC in addition to an application for the DTA unit. It was noted that the CTO from Andhra Pradesh Pollution Control Board had been obtained vide their Consent Letter dated 6.3.2020. The Committee noted that since the CTO does not specify the installed capacity as on 9th October 2018, the Committee accordingly decided to not consider the request for allocation of quota.
5. The Committee also noted that one of the conditions mentioned in the Office Memorandum No.

ctober 2018, the Committee accordingly decided to not consider the request for allocation of quota.
5. The Committee also noted that one of the conditions mentioned in the Office Memorandum No. Q-18011/54/2018-CPA dated 10.9.2018 of Ministry of Environment, Forests and Climate Change (MoEFCC) was that the consent issued by the concerned SPCB/PCC shall clearly specify the quantity permitted for import and its use on as per month and per annum basis. The quantity of imported input and capacity as on 9th October 2018 was taken into consideration for all applicants.
The requisite document mentioning the imported quantity has not been received from M/s Petro Carbon and Chemicals Pvt. Ltd. The matter was discussed in detail with the representatives from MoEFCC. The Committee decided to provisionally allocate the quota to the firm subject to the condition that they submit the requisite document within 15 days from the date of uploading the Minutes of the Meeting so that their production process does not get hampered. It was also decided that if the quantity permitted in the consent for import by the concerned SPCB/PCC is less than the quantity provisionally allocated, the lower quantity will be permitted. 6. The Committee examined the SPCB certificates of all the applicants for RPC imports. On examination, Committee observed that the SPCBs have adopted varying conversion rates for calculating the requirement of RPC for producing CPC.

ertificates of all the applicants for RPC imports. On examination, Committee observed that the SPCBs have adopted varying conversion rates for calculating the requirement of RPC for producing CPC. In their CTO certificates, the Committee also noted that consumption requirement is not indicated in SPCB certificates of all the firms. To bring uniformity, the Committee decided to allocate RPC by adopting following criteria: i. The production capacity of the applicant is to be calculated on annual basis. Wherever, SPCB certificates shows production figures in TPD, the annual production capacity is to be arrived at by multiplying the capacity with 350 days (average operational days for the unit) to bring uniformity.

ii. The production capacity for each applicant to be converted to input/raw material requirement by taking industry average conversion rate i.e. 1:1.36 (as mentioned in the EPCA report). iii. The additional capacity added by the applicants after the Hon’ble Supreme Court’s order dated 9.10.2018 is not taken into consideration;
iv. The quota be divided on a proportionate basis as per the following formula :–
Quota allocated = Total Quota available for allotment multiplied by the demand of applicant divided by the Total demand for all applicants
v. In cases where requested quantity is lower than eligible quantity, the surplus on their heads are redistributed among others proportionately. 11. Accordingly, based on the above principle, the Committee made the allocation as in Annexure 1& 2 of the Minutes of the Meeting.

on their heads are redistributed among others proportionately. 11. Accordingly, based on the above principle, the Committee made the allocation as in Annexure 1& 2 of the Minutes of the Meeting.

Annexure 1 Allocation of Calcined Pet Coke 1 2 3 4 5 6 7 8 S.No . Name of the Firm Date of receipt of application Quantity applied Production Capacity as per SPCB Certificate (per annum) in MTs Proportionate allocation in MTs Quantity of CPC imported through re- validated license of 2019-20* Total allocation in MTs

(Col 6 -7) 1. M/s National Aluminium Company Ltd. 2.5.2020 60,000 60,000 43,175 nil 43,175 2. M/s Vedanta Ltd. 19.4.2020 3,89,820 3,73,800 2,68,979 48,610 2,20,369 3. M/s Bharat Aluminium Company Ltd. 22.4.2020 1,50,000 62,500 44,974 6,540 38,434 4. M/s Hindalco Industries Ltd. 30.4.2020 1,20,000 (Odisha) 60,000 (MP) 20,000 ( UP) 1,16,550 (Odisha) 60,000 (MP) 22,000 (UP)

1,42,872 nil 1,42,872 Total 6,94,850 5,00,000 -55,150 4,44,850

*Quantity adjusted in view of Delhi High Court’s Order dated 15.5.2020 in WP No. 3112/2020, Bharat Aluminium Company Ltd. & Ors Vs. UoI

nil 1,42,872 Total 6,94,850 5,00,000 -55,150 4,44,850

*Quantity adjusted in view of Delhi High Court’s Order dated 15.5.2020 in WP No. 3112/2020, Bharat Aluminium Company Ltd. & Ors Vs. UoI

Annexure 2 Allocation of Raw Pet Coke 1 2 3 4 5 6 7 8 9 S.no Name of the Firm Date of Receipt of application Quantity Applied Productio n Capacity as per SPCB Certificate submitted Input requirem ent as per EPCA Report @ 1:1.36 Proportion ate allocation Proportio nate allocation of excess quantity Total allocation of RPC ( Col. 7+8 ) 1 Rain CII Carbon (Vizag) Ltd. 26.4.2020 7,05,600 5,11,000 6,94,960 463959.97 18000.70

4,81,961
2 Sanvira Industries Ltd. 1.5.2020 4,48,800 3,30,000 4,48,800 299621.90 11624.72

3,11,247 3 Goa Carbon 22.4.2020 4,15,800 3,08,000 4,18,880 279647.10 10849.74

2,90,497
4 India Carbon Ltd. 27.4.2020 75,600 54,000 73,440 49029.04 1902.23

50,931 5 Neo Carbon Pvt. Ltd. 1.5.2020 80,000 75,000 1,02,000 68095.89 2641.98

70,738 6 Amritesh Industries Pvt. Ltd. 21.4.2020 33,600 24,000 32,640 21790.68 845.43

22,636 7 Petro Carbon and Chemicals (P) Ltd. 28.4.2020 1,40,616 93,744 1,27,491 85113.85 3302.24

88,416**
8 Paradip Calciner Ltd.

32,640 21790.68 845.43

22,636 7 Petro Carbon and Chemicals (P) Ltd. 28.4.2020 1,40,616 93,744 1,27,491 85113.85 3302.24

88,416**
8 Paradip Calciner Ltd. 30.4.2020 80,000 46,200 62,832 41947.07 1627.46

43,574
*9 Brahmaputra Carbon 1.5.2020 40,000 1,00,000 1,36,000 90794.51 -50794.51

40,000

Total 20,20,016 14,11,944 20,97,043

14,00,000 0

14,00,000

Rain CII Carbon (Vizag) Ltd. (SEZ Unit) 4.5.2020 488000 3,70,000 5,03,200 Nil Nil SPCB Certificate is dated
6.3.2020

*Excess allocation to M/s Brahmaputra Carbon 90794.51 MT – 40000 MT = 50794.51 MT is re-distributed among other eligible applicants as they have applied for 40000 MT only. ** Quota is allotted subject to the condition that they submit the consent issued by the concerned SPCB/PCC specifying the quantity permitted for import within 15 days from the date of uploading the Minutes of the Meeting