AGRA: The century-old foundry industry in Agra is in a grip of uncertainty. The ban on the use of coke by the Supreme Court has shaken its very foundation. Can it come out of the present turmoil, unscathed? But the question is not of a few scratches and bruises -- it is one of survival.If the gas technology, the alternative to coal, fails, then the industrialists say that it will be the close of chapter for the otherwise thriving industry.
Foundries is one of the leading businesses in Agra with about 167 units in operation. A majority of these units are in the small scale employing around two lakh people directly. With the abundant availability of sweet water, sand for making moulds and labour, the major inputs for the industry, the city has seen the proliferation of foundry units since the first unit came up way back in 1889. "The natural advantage that Agra has over other places has helped it to emerge as one of the leading foundry centres in the country," says Sunil Singhal of S K Iron Foundry andEngineering Company, Rambagh. The Singhals are the forerunners of this industry in the city. The availability of coke, the fuel on which the foundries have been running till date, is also smooth with the government delicensing it and private players entering the line. "We get coal mostly from Calcutta, Nagpur and Bhilai."
Demand has never been a problem for the industry as Agra is a major producer of diesel engines, pump sets and generators. All the industries depend heavily on foundries. Says Singhal, "Despite the growth in competition over the years, there has never been a decline in demand." But competition got restricted when, in 1983, the government banned the opening of any more foundry units.
Now, with all the foundry units falling within the Taj Trapezium Zone, the area identified by the Supreme Court for the removal of "polluting industries", the businessmen have received a severe setback.
Though the court has provided the option of operating within the area if the units switch over from coketo gas, the industrialists are uncertain about its success. The main cause of their worry is that the technology is still in a nascent stage and has till now been put in practice on a very small scale in developed countries like the UK and Germany. Says Rajesh Goyal of GT Iron Industries, "We have no clue as to whether this technology will succeed in India or not."
In India, the National Metallurgical Laboratory (NML), a body under the Centre for Scientific and Industrial Research (CSIR), is working towards providing the units with the required gas. Though it is a costly proposition, most of the foundries have opted for it as they feel shifting would be impossible.
Goyal says that since all the necessary infrastructure for running the foundry business has been developed in Agra it would not be feasible to run a unit elsewhere. Ironically, it was on the initiative of the state government that a Foundry Nagar was formed in Agra and the necessary infrastructure developed around it a few decades ago. SaysRaj Kumar Sama, president, Agra Vyapar Mandal, "How can the government first help an industry to grow in a particular place and then, when it starts earning profits, throw it out of the place."
A few foundry units which had opted for shifting to the identified places in Salempur and Kosi are having second thoughts after an investigation of the sites. "The place is literally a jungle with no approach road and is a place full of thieves and dacoits. Whenever I go there I fear being kidnapped or looted."
The businessmen going in for the gas technology are together funding the pilot project being put up by NML for operating foundry with gas. If the project succeeds then the units will start their venture on the lines of the pilot project. The entrepreneurs say that it is proving to be an expensive proposition. Says Goyal, "We have already spent a large amount of money and once we start adopting it, we will definitely require more cash."
The foundry owners feel that the government should give them somereliefs to help them come out of the crisis. "We should be given the benefits given to new units," says Goyal. "Subsidies should be provided in the same pattern as that provided to units in identified backward states."
According to Jain, units going in for loans should not be asked for bank guarantees. "The entrepreneurs asking for loans are doing it out of compulsion and not by choice. Banks should not make the going harder for them by asking for guarantees.
The foundry owners are not alone in their miseries. The 600 odd workshops manufacturing engineering components which are directly dependent on the foundries will also suffer if foundries are forced to shut down or move out.
The workshops buy iron castings from the foundries, do the machining work and sell it to the diesel and generator set manufacturers. Atul Kumar Gupta, president, Engineering Components Manufacturers Association, feels that the workshops will have no future if the iron foundry industry is ousted. "If the foundries go, we willhave to shut down as we will have no place to get the castings from." This would be an unfortunate thing as the workshops are doing very well in Agra.
According to Gupta, every year, around 30-40 new workshops come up in the city. "This is because this kind of work requires very less investment." There is plenty of demand too as the industries which demand their products have been flourishing over the years.
Gupta says that despite the uncertain situation entrepreneurs are not hesitating to join the engineering component industry. "The entrants are scared but as the line has tremendous scope they are willing to take the risk." Gupta says that though the manufacturers are putting up a brave front, "our future is also fully in danger".
The Supreme Court's judgement has disrupted the working of the foundries in Agra. Ironically, the foundry owners are not convinced that the move is required to save the Taj. Says Singhal, "All the brouhaha about the Taj turning yellow is rubbish. It is only a propaganda bysome people with ulterior motives."
Not so hasty in his dismissal of the issue, Goyal says that though monuments should be saved from destruction, the authorities should go about it in a practical manner. "The fumes that come out of our factories are not harmful as they contain fused ash. Moreover, the distance at which the foundries are from the monument is quite a lot and even if the breeze is directed towards it, the fumes can't reach the Taj."
Goyal points out that the official figures which show the consumption of coal by the iron foundries are incorrect and far more bad than reality. "The figures are old and relate to the times when coal was licensed. That time units showed a wrong account of the coal required because they wanted to ensure that they do not fall short. Moreover, unscrupulous units also got themselves registered as foundries and asked for coal to sell it in black."
The actual use of coal is lesser than that revealed by the official record. Businessmen say that the foundries also donot create any water pollution. Says Singhal, "Though we are situated on the banks of Yamuna, we cannot be accused of polluting the river as we don't generate any waste water."
Whatever reasons the entrepreneurs might put up to show the futility of the whole exercise they have accepted the fact that the apex court's order is here to stay. And they are prepared to face it. The only thing that the businessmen ask for is a sensitive handling of the situation by the government and a helping hand to tide over the problem.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.