NEW DELHI, Aug 15: The Multilateral Fund of the Montreal Protocol to phase out harmful Ozone Depleting Substances (ODS), has approved grant assistance of about Rs 36 crore (US $ 10 million) for the Indian industry.

This includes a recent approval of seven projects amounting to Rs 3.3 crore ($ 925,500) aimed at phasing out the use of environment-endangering Chloro-Fluoro-Carbons (CFCs) by seven companies in the foam sector.

The industries are Inalsa Ltd, New Delhi, Amar Enterprises, Mumbai; Best Plastronics, New Delhi; Bharat Cottage Industries, Mumbai; Deccan Engineering, Hyderabad; Krishna Enterprises, Bangalore; and Vora Cork Industries, Mumbai. Most of these manufacture rigid PUF products.

However, this money is inadequate as several studies have shown that the phasing out process of the ODS by the refrigeration and air conditioning industry in India would cost a whopping $ 653 million. India's country programme, prepared in 1993 by the Environment Ministry had called for $ 2 billion assistance.

A recent study by the Environment Management Division of the Confederation of Indian Industry (CII) says that the money for the phase out process from the multilateral funds to developing countries in the phasing out is very low.

The total costs of the phasing out, essentially includes project costs for the manufacturing and servicing and incremental costs to the country and consumer. The latter includes additional costs to the country due to import of non-ODS gases and lubricants.

India, a signatory of the Montreal Protocol, is committed to phase out CFCs. Refrigerants using CFC 11 and 12 are already on their way out in the developed countries. Those using HCFC 22 will have to phase out by year 2040.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.