Producers To Get Cfc Phaseout Aid For Producers

The multilateral aid for phase-out of chlorofluorocarbon (CFC) in India would henceforward be provided to producers also as against the hitherto practice of offering the aid to the consumer industries only.

An in-principle decision to this effect has been taken by the environment and forests ministry which vets the proposals and recommends them for funding by the Multilateral Fund. This Fund was created under the aegis of the Montreal Protocol, 1987 to implement the CFC phase- out plan as stipulated under the provisions of the protocol.

The decision would benefit producers of other ozone depleting substances (ODSs) also such as the substances like carbon tetrachloride, methyle chloroform, halons etc, apart from those producing the CFCs. This meets a major grievance of the producers who were complainingthat even though they are bound to phase out ODSs, the promised multilateral assistance has so far not been made available to them. As a result, they say, they were left high and dry in arranging alternative technologies for development of the substitutes for the purpose.

 

Top level sources told Business Standard that the ministry is also of the view that even in respect of providing assistance to consumers, the focus should now shift to medium and small industries as against the present practice of assisting big projects only.

According to official estimates, the consumption of ozone depleting substances in India was to the tune of 6402 tonne in 1995 in terms of their ozone depleting potentials. This rose to around 7,000 tonne in 1996.

But simultaneously, about 153 projects were taken up for financing and grants worth $46 million were sanctioned for them until December, 1997. It is believed that through these and other financing efforts, over 6,000 tonne of ozone depleting substances must have been replaced in India by middle of this year. A further progress is expected in 1998. At this rate, it is expected that a substantial portion of the estimated annual consumption of 7,000 tonne would have been replaced by substitutes within a maximum of two or three years.

These officials are, therefore, of the view that it is high time that the thrust of the aid finance should now be shifted from the consumption to the production sector.