Business
Green clearance validity for ports extended
The government has extended the validity period of environmental clearance granted to port, harbour, breakwater and dredging projects to 20 years from the existing 10 years, with a provision for two further extensions of five years each subject to compliance with certain safeguards. The move is seen as a major reform for the port sector as the government aims to raise port capacity to 10,000 million metric tonnes per annum by 2047 from the existing 2,762 MMTPA. "The port sector and business stakeholders will greatly benefit from the extended validity period for long-term business perspectives," said M Angamuthu, chairperson of Mumbai Port Authority, one of the dozen ports owned by the central government. "This reform will facilitate large investments from local and global port operators," he added. Read more - Sulphur prices surge: Govt plans differential subsidies for DAP production The longer validity of environmental clearances for ports, harbours, breakwaters and dredging was notified in the gazette on Monday through an amendment to the notification issued on September 14, 2006, under the Environment (Protection) Act, 1986. Live Events The rule change applies to future projects as well as those where the green clearance validity is still active and which are not yet completed. Extension of the clearance beyond 20 years is subject to a central or state-level expert appraisal committee examining the adequacy of the safeguards as per the existing approval and incorporating any additional measures to the environmental management plan if required, Rajat Agarwal, joint secretary at the Ministry of Environment, Forest and Climate Change, wrote in the September 21 gazette notification. "Further, in deserving cases, where the project has been unable to be operationalised within this extended period, the expert appraisal committee or state-level expert appraisal committee may examine the project and recommend the extension of environmental clearances for a further period of five years, if deemed appropriate...," the notification said. This too is subject to a committee examining the existing safeguards and adding new measures if required. Until now, only one year of extension was allowed to the initial 10 years. The decision follows requests from stakeholders citing the long gestation nature and phased development characteristic of such projects due to issues often beyond their control. "Across the project life cycle, several non-major ports are either under development or involved in various stages of litigation. It has been observed that, by the time these issues are resolved, the validity of clearances, particularly the environmental clearance, tends to expire or approach expiry," Karnataka Maritime Board chief executive officer HC Balachandra said. "Extending the validity period will provide greater certainty to stakeholders, particularly non-major ports and state governments, in undertaking projects such as those envisaged in Keni, Karwar, Manki and Kundapur. It will also enhance the confidence of port developers in the environmental clearance framework and facilitate smoother project implementation," he said. Once the validity expires, the process of securing a fresh environmental clearance typically takes at least three years and requires a shoreline study and public hearing. The longer validity of green clearance would greatly benefit projects by reducing redundancy in the application and study processes, thereby expediting project timelines, said Sameep Jain, founder of a transaction advisory firm Black Brix. "Given the long gestation and phased nature of port development, the extended validity of environmental clearance will build confidence in developers, investors, and financing agencies, particularly for large-scale projects requiring significant upfront capital and long-term investment commitments," Jain said. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel)
Economic Times·3 hours ago·3 min read
Business
Bira 91’s Anicut-led board draws up revival plan
B9 Beverages, the maker of Bira 91, is attempting to recapitalize amid financial struggles. The company seeks to acquire stakes from major investors like Kirin Holdings and Peak XV Partners. Anicut Capital, its largest lender, has taken over control following disputes with founder Ankur Jain. Settlement offers have been made to creditors and large vendors to facilitate operations.
Economic Times·3 hours ago·1 min read
Business
Sulphur price surge: Govt plans subsidies for DAP
The government plans to introduce differential subsidies for di-ammonium phosphate (DAP) under the Nutrient Based Subsidy (NBS) scheme, as surging sulphur prices make domestic production of the key fertiliser increasingly expensive, people aware of the matter said. Under the proposed system, subsidy support could vary depending on whether DAP is manufactured domestically using imported rock phosphate or phosphoric acid, or imported directly as finished fertiliser, they said. The government is considering providing different subsidy rates on imported rock phosphate and phosphoric acid based on government-set floor prices, the people said. The move is aimed at encouraging domestic production of DAP and reducing dependence on increasingly expensive imports of the finished fertiliser. Read more - RBI weighs Anup Bagchi for HDFC top job; seeks feedback from Irda, ICICI Bank on his candidature due to 3-year gap from mainstream banking The new regime could be implemented from the upcoming rabi season, they added. Under the existing NBS regime, the government fixes per-kilogram subsidy rates for four nutrients - nitrogen (N), phosphorus (P), potash (K) and sulphur (S) - taking into account factors including international prices of fertilisers and their inputs. The subsidy payable on individual fertilisers is then determined by their nutrient composition. The rates are revised for each cropping season. However, the economics of DAP can vary considerably depending on the production route, said one person quoted above. "There can be three rates for the same product," said another person quoted above. Live Events Indian manufacturers can import rock phosphate and process it into phosphoric acid before producing DAP. Alternatively, they can import phosphoric acid and manufacture DAP domestically, or import finished DAP directly. These routes have different cost structures, particularly when prices of sulphur and other inputs rise sharply. The proposed differential subsidy mechanism is intended to account for these differences and make domestic production more viable relative to imports of finished DAP. "Margins are higher when DAP is produced using rock phosphate. The government wants companies to pass that on to farmers," said a third person quoted above. Sulphur is a key part of the DAP production chain. It is used to manufacture sulphuric acid, which is required to process rock phosphate into phosphoric acid, a key input for producing DAP. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel)
Economic Times·3 hours ago·2 min read
