Government ban on petroleum coke to affect international fashion brands

By

Isabelle Crossley

Published
Nov 3, 2017

In the Delhi-NCR region, around 150 garment factories that manufacture for international brands such as Mango face indefinite closure following the Supreme Court’s decision to ban the use of petroleum coke and furnace oil.

Effective immediately, India’s Supreme Court banned the use of petroleum coke and furnace oil due to their harmful emissions. As most garment factories run on these fuels, this new law has caused many to cease operations and, since many factories in the Delhi-NCR region manufacture for foreign brands, this cease in production will hit them hard before the holiday season.

The Delhi-NCR region is home to around 1,000 garment exporters who manufacture clothing for foreign brands such as Zara, Mango, J C Penny, and Walmart.  

“Around 80% of exports happen between November and March, as this is the festive season in international markets,” said Arvind Jain, the General Secretary of the Federation of NCR Textile Dyers and Processors." As factories are being forced to close during peak export season, this is sure to have repercussions.

“We are ready to comply with the norms but there are no clear emission standards yet from the ministry,” said Jain. “As a result, we have had to shut down our plants.”

Alternatives to using petroleum coke and furnace oil to fuel garment factories are markedly more expensive. For example, piped natural gas would be allowed under the new regulations but it is three times more expensive to use and also requires a large initial investment.

Jain added that  Federation of NCR Textile Dyers and Processors has filed a petition seeking more time to move to alternate fuel systems. If this is successful, the export crisis could be avoided. However, there has been no Supreme Court response as yet.