Expedite decision on raw petro coke allocation, Supreme Court tells DGFT

In October 2018, the SC put a cap on RPC imports and allowed import of 1.4 million MT RPC per annum by the calcining industry.

The Supreme Court on Monday asked the Directorate General of Foreign Trade (DGFT) to decide expeditiously on the allocation of imported raw petroleum coke (RPC) to all eligible calciners for 2022-23 within 10 days of receipt of their applications, taking note of the precarious situation in which the industry is placed.

In October 2018, the SC put a cap on RPC imports and allowed import of 1.4 million MT RPC per annum by the calcining industry. It had permitted the domestic aluminium industry to use up to 0.5 million tonne of imported calcined petroleum coke (CPC) per year. Since then, the DGFT had been allocating 1.4 million MT of RPC quota to eligible calciners on the basis of their production capacity. 

A bench led by Justice LN Rao has sought a response from the DGFT on various applications, including one by Sanvira Industries. The applications have sought direction for a refund of the quota of non-imported RPC of FY 2020-21, amounting to 2,13,229 tonne, to calciners who had surrendered their respective quotas in 2020-21 and/ or who were penalised in FY22 to the extent of the quantity surrendered or penalised. They want such calciners to be allowed to import RPC against such quota within a period of three months.

Rain CII Carbon (Vizag), through its senior counsel AM Singvi, also asked the SC to direct DGFT to allocate the remaining/ non-imported RPC to all eligible calciners on a pro rata basis in 2021-22 based on plant capacity and also carry forward the remaining/ non-imported quantum of RPC of 2020-21 to 2021-22. It said CPC is an essential raw material in the anodes required during the electrolytic process of aluminium production. The company said non-availability of RPC import quota had induced a forced shutdown of its plant in Visakhapatnam.

Senior counsel KV Vishwanathan, appearing for Sanvira, opposed Rain CII’s plea, saying Rain cannot get more RPC quota than it is eligible for to the detriment of other calciners who had surrendered the non-imported quota or for which they were penalised in FY22 by the DGFT. It wanted reimbursement of the non-imported/ non-utilised RPC quota which the calciners had surrendered or had been penalised for in FY22.

Senior counsel and amicus curie ADN Rao told the bench DGFT should provide details of the companies who had surrendered their respective quotas and the reasons for their surrender. Additional Solicitor General Ashwarya Bhatti said that DGFT will file a status report in this regard. She argued that it would not be possible to allocate the unutilised quota as the government has taken a decision against it. 

Last year in July, the SC had permitted import of RPC only for cement, lime kiln, calcium carbide, and gasification industries.