Delhi's severe smog, and Ghaziabad's recent shut down of eight factories due to severe air pollution in the area, are among recent events that highlight the challenges India is facing in terms of clean air and environment. It is China however, that for now is willingly paying the economic costs of pollution control. The country has implemented new pollution norms - some of which kicked in from October this year, and others that will become active as of June 2018 - which limit emissions for plants and factories in major polluting industries.
Some of the most significant new restrictions have been placed on the aluminum industry, which the Chinese government is cracking down on after a smog event that locals called the "airpocalypse". Aluminum wasn't the only one - beginning October 1, 2017, the government has implemented special pollutants emission limits in thermal power, steel, petrochemical, chemical, nonferrous metals, cement and boilers and other industries.
And beginning June 1, 2018, special pollutants emission limits will also kick in for the coking chemical industry, steel sintering and pellets, as well as flat glass, ceramic and brick industries.
The impact of this is already visible for Indian companies, which stand to benefit as China's position as a global producer in these industries shifts. Trendlyne recently pointed out that agrochemicals companies like Pi Industries and coking producers like Rain Industries are clear gainers from China's new policy, as Chinese producers can no longer meet global demand for agrochemical and coking products. Another big gainer is Vedanta - here too, China's pollution restrictions are set to benefit the company in terms of rising prices for aluminum and copper. Domestic aluminum capacity is estimated to have fallen in China by 11%.
Of course, this is not necessarily a net win for India - the shift of these industries to India will be good for the country's pockets, but bad for its already strained lungs.
