CLEAN AIR IN INDIA SNAPSHOT.

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1 CLEAN AIR IN INDIA This report is derived from an extensive secondary literature survey of the clean air (air pollution) sector in India. The primary aim of the report is to set the context for understanding the current state and future evolution of the sector in the country. Briefly, the policy framework and institutional structure as well as the challenges and opportunities within the sectors are delineated.

2 CLEAN AIR IN INDIA SNAPSHOT Background The Supreme Court of India put stringent regulations on air polluting activities in Since then, a series of initiatives have been implemented which have improved ambient air quality in most cities in India. The Central Pollution Control Board (CPCB) has been regularly monitoring ambient air quality since 1984 to assess the effectiveness of pollution control measures on air quality. Its network was started with only seven monitoring stations in Agra, and extended gradually. As on 31 st March 2009, ambient air quality was being monitored at 342 monitoring stations covering 128 cities/towns. The SPM, RSPM, SO 2 and NO 2 parameters are being monitored at all locations. Three more parameters, i.e. Co, Pb, and NH3, are being monitored at selected locations in a few cities. Other parameters i.e. O 3, benzene, trace heavy metals and PAHs are being monitored occasionally at selected locations for creating a database. The monitoring results are compared with the National Ambient Air Quality Standards (NAAQS). The three-tier standards include industrial, residential and sensitive areas. Specific guidelines are framed for defining sensitive areas. Among all the criteria air pollutants, particulate matter (SPM and RSPM) has emerged as the most critical pollutant in almost all urban areas of the country. Coarser fraction (> PM10) of SPM concentrations are primarily irritants and may not have much relevance to direct health consequences as compared to effects of its respirable fractions (PM 10 and PM 2.5 ), which can penetrate the human respiratory systems deeper particulate matter is generated mostly from burning of fossil fuels and natural sources, which include natural dust and pollen grains. Page 2

3 As fossil fuels (coal, gas and oil) 1 are the main source of energy production in India. There is significant growth in oil consumption and, consequently, in air pollution. Since the Indian economy is growing fast, the energy demand is bound to increase in the future and, by extension, air pollution. Market Assessment The air pollution control equipment (APCE) segment in India is expected to grow from US$ million (2008 market size) to almost million by 2013, according to an analysis by Frost & Sullivan. Specific opportunities exist for advanced air pollution control, stack air quality monitoring equipment, clean coal technologies and mercury control. Policy and Regulatory Framework There are two important statutes that regulate air pollution in India: The Air (Prevention and Control) Act, 1981 (Air Act) and Environment (Protection) Act, 1986 (EPA). The Air Act provides for a mandatory consent (permit) from State Pollution Control Boards (SPCBs) for establishing and operating industrial installations. The consent is a conditional permit which specifies measures to be adopted for reducing air pollution, including prescription of emission standards based upon benchmarked best practices that are technically and economically feasible. 1 According to the International energy agency (IEA), coal/peat accounts for nearly 40% of India s total energy consumption, followed by nearly 27% for combustible renewable and waste. Oil accounts for nearly 24% of total energy consumption, natural gas 6%, hydroelectric power almost 2%, nuclear nearly 1%, and other renewable sources less than 0.5%. Page 3

4 The SPCBs have the authority to issue and revoke consent to operate, direct industry for self-monitoring and reporting, conduct sampling, inspect facilities, guide to take corrective action and prescribe compliance schedules. The enforcement powers of SPCBs include emergency measures of disconnecting water or power supply and facility closure, which are widely used in some states. Other sanctions (fines and imprisonment) are being pursued under the criminal authority of the courts, but this is a lengthy procedure and conviction rates are also low. Under the EPA, industry needs environmental clearance (EC) before establishment from the Ministry of Environment and Forests (MoEF) or the SPCBs, depending on the type and size of the industry. Industries which fall under the categories specified in the environment impact assessment (EIA) notification, 2006 are required to undertake detailed EIA studies to identify, predict and evaluate the likely environmental, social and economic impacts of that developmental activity, and prepare an action plan for remedy as a part of the Environmental Management Plan (EMP). Based on satisfactory appraisal of the EIA report and EMP, the EC is granted, which ensures that suitable provisions for protecting the environment have been made. The EMP is implemented during the operational phase and compliance of EC conditions are required to be regularly monitored by the concerned SPCBs along with prescribed consent conditions. Initially, the approach adopted to regulate industrial pollution was to set minimum national requirements for various pollutants. These were made mandatory under the law and offenders are prosecutable. Out of several options available for the control of pollution, benchmarked emission levels that were economically viable and technologically feasible were adopted and the corresponding limits termed Minimal National Standards (MINAS). The MINAS set minimum requirements; however, the SPCBs have the authority to make them more stringent if a particular situation demands. To set environmental requirement of ambient air quality, the CPCB also adopted NAAQS in 1982 for different land uses, and revised them periodically to make them more comprehensive and practicable. The NAAQS are based on the safe level of different air pollutants based on the scientific evidence on adverse impacts of air pollutants. Page 4

5 The Key Drivers for Sector Growth The prominent growth drivers for the APCE market in India are: The investments in key end-user segments such as power, cement and ferrous industries and emission control standards by the central pollution control board. Increasing awareness of environment protection issues and the detrimental effects of air pollution are also fuelling the APCE market. The CPCB in India has framed emission control standards and the mandatory requirement of APCE in India has opened up huge opportunities. With the Indian Government s Power for All by 2012 programme and the line-up of ultra mega power projects, the demand for APCE is anticipated to continue on an upward trajectory. Electrostatic precipitators (ESP) dominate the current market. Installations of flue gas desulphurisation (FGD) equipment are anticipated to increase on the back of strong enforcement of emission control norms. Challenges India has made considerable progress on environmental clearance and consent. However, there are still major challenges, especially visà-vis rapid industrial growth, listed below. The consent order and environment clearance should incorporate differences in geographical, atmospheric, climatic and topographic conditions. Emissions reduction strategies should consider the overall problem and focus on long-term planning objectives. MINAS should be updated continually to incorporate everimproving environmental emissions control technologies to provide better information on pollution prevention. Consent/EC conditions should be reviewed frequently, considering changes in land use, local environmental deterioration and developments in emerging abatement techniques (i.e. associated with MINAS). Compliance should depend on air quality and not just emission limits. Page 5

6 Sources: 1. Market opportunities in environmental goods and services, renewable energy, carbon finance and CATs Country report India, UK Trade & Investment, October Integrated Pollution Prevention and Control: India and the EU appraise policy and instruments, DHI in cooperation with Euroconsult Mott Macdonald, Cleaning up the air Indian Brand Equity Foundation, The MoEF, CPCB and the SPCBs should collaborate to streamline environmental consent coordination and applications as well as the compliance and enforcement of consent conditions. Regulatory agencies such as SPCBs should improve information flow between the various air quality regulatory bodies. Government Initiatives: Many initiatives have been taken to improve air quality in India, as mentioned in the previous sections. The government s regulatory measures and other initiatives, supported by the judiciary, have led to improvement in the country s air quality. In many cities like Delhi, Mumbai, Chennai and Kolkata, air quality has improved significantly after implementation of the measures since However, the air quality has deteriorated in the past 2-3 years owing to a steep rise in vehicular numbers and industrial activity. Disclaimer All information provided in this publication has been compiled from reliable sources. Although reasonable care has been taken to ensure that the information in this publication is true and accurate, such information is provided as is, without any warranty, express or implied as to the accuracy or completeness of any such information. EBTC shall not be liable for any losses incurred by any person from any use of this publication. Readers should consult their legal, tax and other advisors before making any investment or other decision with regard to any business in India. Page 6

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8 The European Business and Technology Centre (EBTC) supports EU clean-technology companies and researchers on their market entry to India, offering hands-on support in the early stages of expansion. Through its offices in New Delhi, Mumbai, Bengaluru and Kolkata, EBTC offers solutions to clean-technology companies who want to enter and ensure success in the Indian market. EBTC s efforts focus on the 4 key sectors of Biotech, Energy, Environment and Transport all of which offer vast scope for closer EU-India collaboration be it in business, science or technology. Through cooperation with government bodies, associations, and an extensive network of professional bodies across India and Europe, EBTC is well equipped to provide a range of customized and personalized services catering to the requirement of each individual client. Some of these services include: Market intelligence Connecting EU and Indian business & research communities Supporting services EBTC New Delhi (Head Office) DLTA Complex, South Block, 1st Floor 1, Africa Avenue, New Delhi , INDIA Tel: Fax: Web: delhi@ebtc.eu Follow us for the latest EBTC and industry news on: join our group on LinkedIn New Delhi Mumbai Bengaluru Kolkata Brussels This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the European Business and Technology Centre and can in no way be taken to reflect the views of the European Union. Copyright 2011 European Business and Technology Centre _1_SNA EBTC is a programme co-funded by the European Union and coordinated by the Association of European Chambers of Commerce and Industry