There is good news for those planning to set up new steel units in Mandi Gobindgarh, Punjab, as the environment ministry is lifting the moratorium on new industries in this steel hub of India.

Punjab Pollution Control Board sources told FE here on Sunday that the environment ministry has found the PPCB report on improvements in environment protection measures to be ?satisfactory? and the ministry may soon take the decision to lift the moratorium.

Recently, the PPCB?s had suggested an action plan apparently proposing shifting industries running in residential areas to non-residential areas, besides segregating water polluting units from air polluting units. The plan was mooted by the PPCB after the environment ministry had banned the setting up of new factories in 43 critically polluted areas till August, by when the Central Pollution Control Board and state boards were asked to prepare a plan to improve the environment. In the absence of a plan, the moratorium limit was stretched to October 30. The PPCB swung into action and took help of a team IIT Roorkee professionals from the metallurgy department. PPCB said no one has got an NOC from the CPCB to set up industry in Mandi Gobindgarh till date.

The PPCB sources told FE that there are around 450 steel units in Mandi Gobindgarh producing nearly 25,000 tonne steel every day, or about 70% of the state?s total output. The problem arose as of these 450 units, more than 20% of the steel re-rolling mills, furnace industry and other were situated in residential areas. There were reports that people were suffering from respiratory problems because of the location of these units and failure of many units to install pollution control measures.