A year after the cap on fresh investments in prominent chemical clusters of Gujarat was removed, fresh investments have started trickling in. According to industry sources, investments worth Rs 9,000 crore are set to get unlocked now. Seven years ago, the central government, classifying these clusters as critically polluted, had imposed a ban on new investments.
The Central Pollution Control Board (CPCB) had in 2010 classified Vatva, Vapi, Ankleshwar, Naroda, Chitra (Bhavnagar) and Junagadh chemical clusters as critically polluted according to Comprehensive Environment Pollution Index, which resulted in a ban on investment in greenfield and brownfield projects.
While the ban on Chitra and Junagadh clusters was lifted soon, it continued in other estates till November 2016, affecting investments worth about Rs 9,000 crore. They have close to 3,500 chemicals, dyes and intermediaries manufacturing units.
The clusters invested hundreds of crores of rupees to install facilities to check pollution and scored between 50 and 55 against the limit of 60 on the CEPI score recently.
While it was expected that the lifting of the ban would unlock the investments, the lull remained till about a month ago, said industry players. It was only recently that things got moving.
The State-Level Expert Appraisal Committee, comprising experts in pollution control, is examining the proposals.
"We are glad the process has begun. New investments will now pour in," said Shankar Patel, president of the Green Environment Services Co-operative Society Ltd at Vatva and popularly known as Vatva Green, which manages the Common Effluent Treatment Plant (CETP) of industries in Vatva.
The ban caused much heartaches as, over the seven years, input costs shot through the roof and the industry was not allowed to expand or diversify.
"Market demand has changed drastically. Though one product did not pick up demand and another product saw increasing demand, industry players were not allowed to change their product. Technology had undergone tremendous changes that we could have produced more and still kept pollution in check. However, we were not allowed to adapt. The pollution watchdogs should be concerned with the level of pollution, not the extent of production," said Shailesh Patwari, president of the Gujarat Chamber of Commerce and Industry and chairman of Naroda Enviro Projects Ltd, which operates the CETP in Naroda estate.
THE GREEN BAN
- In 2010, the CPCB classified Vatva, Vapi, Ankleshwar, Naroda, Chitra and Junagadh chemical clusters critically polluted zones.
- This classification resulted in a ban on fresh investments in greenfield and brownfield projects.
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