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  • Coverage of all legalities to start calcium carbide manufacturing unit
  • Assistance in the application and documentation at different stages
  • Comprehensive legal guidance covering all aspects of manufacturing unit setup
  • Coordinating with agencies throughout the application process

Overview of Calcium Carbide Manufacturing Unit

Calcium Carbide is an inorganic compound with the chemical formula CaC2. It is produced by treating lime with coke. at around 2000 degree celsius. Calcium carbide is an important raw material in industries such as metallurgy, ceramics, synthetic fibres and chemicals. Besides the above mentioned industry, the other key application segments include environmental engineering and solvent synthesis. Calcium carbide has been identified as a flammable substance under the Inflammable Substances Act, and the Petroleum Act applies to it. CaC2, when in contact with moisture (water and air), generates acetylene gas with a broad range of explosives limits. The license provided by Petroleum and Explosives Safety Organization (PESO) is required if a manufacturer wants to store calcium carbide in quantity not exceeding 500 Kgs at any one time. The calcium carbide Manufacturing unit will require the entrepreneur to obtain a licence under the Calcium Carbide Rule, 1987 and the subsequent amendment in 2021. The 2021 amendment to the Calcium carbide rules has eased the licencing process for storing and transporting calcium carbide. The need to submit applications and fees to obtain a duplicate license has also been eliminated, and a system-generated online copy is sufficient. Moreover, provisions for an online fee payment facility and geo-mapping monitoring of premises for storage have been provided

Commercial production of Calcium Carbide

Commercial calcium carbide is the source of acetylene which is used in the synthesis of organic chemicals, resins, and plastics and cutting of metals. Large amounts of calcium carbide are also made for the manufacturing of calcium cyanamide by fixation of atmospheric nitrogen. Making calcium carbide involves steps.

Step 1:Feeding lime and coal into an electric arc furnace and heat the electric arc furnace up to a temperature of 3,632 degrees F or 2000 degrees Celcius.

Step 2:Placing the electrode paste near the electric arc furnace to bake and then feeding the baked electrode paste to the furnace. This act as a catalyst for the lime and coal.

Step 3:Moving the resultant molten CaC2 into cooling equipment, which allows it to solidify.

Step 4:Processing the solidified CaC2 through crushing until it reaches the desired size.

How to start Calcium Carbide Manufacturing Unit

The manufacturer/ dealer/ transporter has to follow a defined SOP given in the Calcium Carbide Rules. Before starting the CaC2 manufacturing business, the entrepreneur must do exhaustive research on the market and analyse the present and potential future demand. The export-import market potential related to the product must also be researched. As raw material and workforce availability, project costs and payback period are critical for a successful manufacturing business. These factors must also be thoroughly investigated in advance. The following factors must also be considered.

  • To obtain a licence under the Calcium Carbide rules must apply Form I to the appropriate authority. The licence will be valid for ten years as per the new amendments to the Calcium Carbide Rules, 1987.
  • CaC2 must not be stored without a licence. Also, in the case of storing CaC2, the composition of the compound must be pure for commercial use.
  • The premises for storage must be made as per the conditions mentioned in the rules.
  • In case of an accident, the occupier of the premises must notify the nearest Magistrate or officer-in-charge of the nearest Police Station and the Chief Controller within 24 hours via e-mail.
  • Application for the issue of the licence to manufacture and store CaC2 of the licence shall be made to reach the licensing authority 30 days prior to the date on which it expires.

Licences and Authorisation needed to start Calcium Carbide Manufacturing Unit.

Business Registration:DIC issues registration to MSMEs that manufacture CaC2. The registration process is necessary to impart legal entity to the business and create a legal identity for the business.

Consent Certificate: Consent NOC is required by the manufacturing unit before it can start manufacturing. It is issued in 2 stages, i.e. Consent to establish (CTE), which is granted under the Air Act and the Water (P&CP) Act by the SPCB/PCC. The documents required for this NOC are

  • Online Application
  • List of names of addresses of all directors and partners
  • Layout Plan 
  • Schematic diagram of the business operation
  •  Water consumption & Wastewater balance details
  • Documents proving land ownership
  • Project Report from registered CA
  • Proof of payment of Consent fee
  • Material safety data sheets
  • Environmental Clearance(if applicable)
  • List of plant & machinery installed by the unit.
  • Monitoring reports for emission or trade effluents from SPCB recognised Laboratories.
  • Copy of Clearance from NBWL (if applicable)
  • Proof of CTO compliance report in case of renewal

PESO Certification: Registration with the Petroleum and Explosive Safety Organisation of India is a mandatory approval program for the oil and gas industry or products. The following are the documents required to Obtain PESO Certification:

  • Application form,
  • Contract with AIR for a minimum of five years, technical competency proof etc.
  • Plant and AIR, Business License of Manufacturer
  • Global Organisation Chart
  • Product IECEx/ATEX certificates
  • QAR/QAN Test Report
  • Manufacturer Profile
  • List of production equipment and test instruments
  • ISO certificate
  • Video of the Production facility

Additional Licences are required to start a Calcium Carbide ManufacturingUnit

  • Factory's Licence
  • Fire NOC
  • Tie-up with TSDF facility/ Hazardous Waste Management Authorisation
  • Explosive Licence

Uses of Calcium Carbide

The demand for calcium carbide has grown significantly in the past due to its chemical properties that allow for its use in many industries.

  • CaC2 is used for the desulphurisation of pig iron and cast iron, for manufacturing PVC and its use across thermal, mechanical and electrical sectors.
  • CaC2 is also used to produce acetylene gas. Acetylene produced by the reaction of calcium carbide with water can be used to synthesise organic compounds, such as synthetic resin, carbon black, synthetic rubber, acetone, ketene, etc.
  • Heating powdered calcium carbide with nitrogen gives calcium cyanamide, which is being increasingly used in the agricultural sector to produce chemical fertilisers.
  • Production of polyvinyl choride(PVC).

Market Overview of the Calcium Carbide Industry

The calcium carbide market in India was estimated at 27.5 million tons in 2020, and its manufacturing market is expected to register steady growth at a CAGR of about 4% during the forecast period (2021-2026). In 2021, the production volume of calcium carbide was around 86,780 metric tons. The demand for Calcium Carbide is growing due to its superior properties that meet today’s most demanding mechanical, thermal and electrical performance requirements across various applications.

How can Enterclimate assist you?

End-to-End assistance in Calcium Carbide manufacturing plant setup

Our team of licencing experts have more than ten years of experience and ensure an end to end assistance in Licencing and documentation formalities needed for setting up a calcium carbide manufacturing unit.

Expert Legal Guidance

Enterclimate offers guidance through economical packages that are tailored to business needs. Our team of lawyers, CAs and CS provide personalised legal assistance for every issue arising during the application process and setup of the Calcium Carbide Manufacturing Unit.

Best in Class client Support

Our client support team keeps you updated with changes in government policies concerning the overall legal operation of the Calcium Carbide Manufacturing Unit. Any doubts and queries of the client is resolved speedily and efficiently by our Client relation executives.


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