The Supreme Court has upheld its ban on use of petroleum coke in and around New Delhi, citing the rising pollution caused by its use. The ban covers Rajasthan, Uttar Pradesh and Haryana. Cement firm representatives had said that lack of access to petcoke would impact their margins and raise costs. 

Petcoke, a dirtier, more polluting alternatitve to coal, emits more sulphur dioxide and other pollutants that damage the lungs and internal organs. India is the world’s biggest consumer of petroleum coke, and the Supreme Court is cracking down on the practice in light of the severe smog that has enveloped Delhi this year, and the increase in pollution-linked disease. The Supreme Court also said that this ban on petcoke burning should be considered by other Indian states as well. 

The ban impacts  Ambuja Cement, Shree Cements, ACC and Ultratech Cement, all of which have units in these states. Shree Cements uses 100% petcoke across its plants. Power and fuel approximate to one fourth of production costs in the cement sector. Shree Cements' share price fell over the past few days as news of the ban reached markets.