The right move
Union finance minister Jaswant Singh highlighted the need to promote cleaner and environment-friendly technologies in this year's budget. And he chose the chlor-alkali sector. The budget reduces the customs duty on components of membrane cell technology from 15 per cent to 5 per cent, thus making their import cheaper.
It was in 1986 that the Union government made it mandatory for all new chlor-alkali plants to be installed with membrane cell technology. However, even today, 31 per cent of these companies continue to use mercury cell technology.
The environmental evaluation of the chlor-alkali sector, conducted by New Delhi-based non-governmental organisation Centre for Science and Environment (CSE) under its Green Rating Project (see: 'Caustic-Chlorine Sector: Under Pressure', September 15, 2002) had clearly brought out the advantages of membrane cell technology over the highly polluting mercury cells.
The switchover to the cleaner technology had its own problems. As it is not produced indigenously, the sector depends totally on imports. The high customs duty, however, rendered the technology unviable in India. CSE had strongly recommended phasing out of mercury cells by creating suitable incentives for the sector to move towards cleaner technology.
The government, on its part, has taken concrete measures. It is now up to the industry to make the shift.
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