Endosulfan ban leaves HIL in the lurch

Date:05-25-2011

With a countrywide endosulfan ban looming, Hindustan Insecticides Limited (HIL), a major manufacturer of the controversial pesticide, may struggle for survival.

One of the few profit-making government enterprises, HIL earns 50% of its revenue from the sale of endosulfan.

Rights groups and political and civil organisations had been demanding a blanket ban on the pesticide that killed several people in the state’s Wayanad and Kasargod districts.

The Supreme Court’s recent directive against production and use of endosulfan and the Centre’s agreement on a conditional ban on the pesticide at the recent Stockholm convention have almost sealed the fate of manufacturers.

HIL, which employs more than 500 people, however, is yet to decide on how to deal with the looming financial crisis.

Unit head K.K. Dhar said the company would explore the possibility of using the endosulfan plant on the outskirts of the city to manufacture another product. But implementing the plan will take at least a couple of years.

"Of course, we can convert the plant for production of some other product. But that needs a lot of groundwork, studies and clearance. We can’t take hasty decisions on such matters,” Dhar told Deccan Chronicle.

To add to its woes, state pollution control board (PCB) recently slapped a closure notice on the company for its failure to remove a hazardous chemical effluent.

As a result, plants in the unit have been closed since May 15.