ALL INDIA PLASTIC INDUSTRIES ASSOCIATION
25TH ANNIVERSARY ISSUE OF PLASTIC WORLD DIRECTORY
203 Hansa Tower, 25 Central Market, Ashok Vihar, Phase I, Delhi-110052.
Tel: 27242826, 27417104
A LEADING ASSOCIATION OF SSI AND MEDIUM SCALE PLASTIC
PROCESSING INDUSTRY AND RELATED INTERESTS
ASSOCIATION COMPLETES 25 YEARS OF ITS ESTABLISHMENT IN 2007
Requirement of authentication of invoices of importer/first stage dealers/second stage dealers by excise proper officer was discontinued from 2001 onwards.
A provision was made in the Union Budget 2003-2004 for Sales Tax exempted units necessarily obtaining ‘C’ Form from their buyers situated in other states.
Government of India removed special additional duty (SAD @ 4%) on all imports in its Mini Budget announced in January, 2004.
Customs duty on polymer imports was reduced from 15% to 10% and currently to 5% level by the Government of India.
– AIPIA gave specific suggestions to the empowered Committee of Ministers for keeping VAT rates low and imposing similar rate of taxation both on raw materials and finished products to eliminate scope of any evasion. The Govt. of NCT was also suggested to keep similar rates of VAT at 4% on plastic raw materials as well as finished products. Happily AIPIA’s suggestions have been accepted and most of the finished plastic items have been taxed at 4% under DVAT.
I. PROBLEMS RELATING TO RAW-MATERIAL SUPPLIES
Often sales and pricing policies of the major raw material suppliers like PIL (NOCIL), IPCL, RIL/GAIL/HPL, etc. were not always suiting to the needs of the tiny/SSI/medium scale units who have limited finances. AIPIA has been trying to exert its influence so that raw material suppliers frame such policies which do not go against the interests of the above industry.
– MRTPC CASE AGAINST PIL
As far back as 1986, a petition was filed with MRTP Commission by the Association complaining against discriminatory pricing policies of PIL (NOCIL) which favoured large-scale units.
As a result of the complaint, PIL withdrew its discount policies and offered raw materials at uniform prices both to large scale as well as medium and small scale units. This had been a significant achievement. It is a matter of legitimate consolation that PIL had been following uniform price policy.
- COMPLAINT WITH DIRECTOR GENERAL, I & R, MRTPC, AGAINST RELIANCE INDUSTRIES LTD.
During August 1997, AIPIA requested Director General, I & R, MRTPC, to enquire into the discriminatory sales and pricing policies of RIL who had been then offering discounts to bulk buyers resulting in availability of raw materials to small scale units at much higher prices compared to many bulk buyers at a price differential which turned out to be even more than their processing cost. RIL had been also indulging in sharp fluctuation of prices over a short period which affected smooth working of SSI and medium scale units in as much as they found it difficult to plan their production and marketing activity smoothly.
Owing to the pressure brought about by the reference to MRTP, RIL entered into a dialogue with AIPIA and had assured framing of such policies which do not go against interests of SSI and medium scale units.
- A complaint was also lodged against discriminatory MoU linked discount policies of IPCL
Thus AIPIA has had the distinction of influencing major raw material suppliers like RIL/IPCL who have become sensitive to the concerns of the down – stream processing industry.
- Resultant to continuous dialogue, RIL has discontinued signing of MoU in respect of PE with effect from 2001 which gives flexibility to both sides.
- II. FREQUENT CHANGES IN POLYMER PRICES CAUSED BY MAJOR POLYMER PRODUCERS.
This is an area of continuing concern. The Association has been suggesting to the major producers from time to time to keep stability in polymer prices at least for a period of 30 days so that SSI and medium – scale units can plan their business activity smoothly. It is unfortunate that despite repeated pleadings of the industry, the major producers have not always responded positively . If they continue with this practice of keeping the volatility of prices, Association would not fight shy by taking up the issue with the newly constituted Competition Commission being formed by the Government. Association is maintaining continuous dialogue with major raw material suppliers by inviting their senior officials to interact with the Executive Committee Members in their monthly meetings held on 10th of every month.
Since the major producers are not sensitive to the concern of the industry regarding stability in polymer prices, some of the industry Associations plan to join hands for resolving this matter satisfactorily by a joint reference to the major producers once again and by seeking intervention of the Government of India so that major producers keep prices stable at least for 30 days to ensure that the health of the down – stream plastic processing industry is not adversely affected.
- AIPIA has been a Member of the Public Grievance Committee and Regional Advisory Committee of Central Excise for the past many years wherein issues of concern of members are raised for satisfactory redressal.
Due to the relentless effort of AIPIA (and others) excise duty imposed on lay Flat Tubing during 1982,1986, 1994 and 1997 was withdrawn by the Government of India after being convinced of the logic advanced by AIPIA
- The requirement of authentication of invoices by excise proper officer relating to importers/consignee agents/first stage/second stage dealer was done away with during 2001 by the Government of India on AIPIA’s pursuance.
AIPIA has been consistently requesting Government of India to fix customs duty on polymers to a level equal to the customs duty imposed on inputs of major producers (crude/naptha) so that indigenous producers would be forced to keep stability in domestic prices and also keeping the price levels matching to international ones.
As a result of continuous follow up customs duty on polymer imports has been steadily reduced from earlier high level of 25% to current level of 5%. Association is persuading GOI to do away with this protection as the same is not required/deserved by the major producers operating world scale plants of latest technology.
Govt. of India has signed many FTAs with neighbouring countries. The Association has suggested that in the forthcoming Union Budget 2007-08 levy of Custom duty should be fixed matching to the levels obtaining in signatory countries so that the indigenous processing industry is not put to disadvantage.
IV. DE-RESERVATION OF ITEMS RESERVED FOR SSI SECTOR
- As a part ofr globalisation over a period, number of items earlier reserved for SSI sector have been dereserved. AIPIA has strongly taken up the matter with DCSSI for de-reserving the items if only, it is a ‘Must’. It has been further suggested that wherever there is adequate capacity available with the country in the SSI sector, such items may not be de-reserved. Also that de-reservation could be done only for export production.
- As a result of AIPIA’s follow-up during the years 2002, Commissioner MCD has passed fresh orders by which both manufacturing and storage licences will be issued together, thus obviating earlier confusion.
- Representative of AIPIA was included in the high level committee constituted by Government of NCT during 2001 for examining pollution potential of processing of plastic products.
- CURRENT ISSUES OF CONCERN BEING PURSUED FOR SATISFACTORY RESOLUTION.
- Master Plan of Delhi 2021
AIPIA has offered concrete suggestions in this regard. It has been particularly suggested that processing of plastic products which does not cause any type of pollution should be kept under Green category/permissible list. Happily in the new draft Master plan a list of negative industries is stipulated which will be helpful.
- Abolition of CST – Introduction of VAT
AIPIA has suggested to GOI for immediately doing away with CST which puts unnecessary burden on the economy and particularly SSI sector . Large units are able to avoid CST by opening branches/appointing consignee agents where they stock transfer material. Since SSI / medium scale units cannot afford to do so, entire burden of CST falls on them. In partial response to AIPIA’s representations, Government of India has agreed to phase out CST over a period.
- Request to Government of NCT to permit manufacture and sale of non-degradable and
degradable plastic bags concurrently.
In a recent Enactment, Government of NCT has made manufacture of degradable plastic bags mandatory. Since sources of raw materials fit for manufacture of degradable plastic bags are yet to fully develop and quality parameters yet to be standardized by BIS, AIPIA has suggested to Government of NCT for permitting both types of plastic bags to be manufactured and sold at least for a period of 2/3 years within which the raw material sources can fully develop and quality parameters laid.
- Creating awareness about environmental friendly nature of plastic bags etc and educating
general public etc.
The association has also been taking up the subject relating to additional restrictions/ban on plastic bags with various State Governments like Govt. of Maharashtra, UT of Chandigarh, Govt. of Punjab etc. who have proposed additional restrictions/ban on plastic bags. It has urged the State Governments to follow Central Guidelines which only put partial restrictions (stipulating that the bags shall not be less than 20 microns thickness and shall not be below 8″ x 12″ size ) and that the coloured/recycled bags shall not be used for packing/serving food stuffs etc.
VII. PLASTICS CHINTAK FORMED: Association has jointly promoted this specialized body named Plastics Chintak in association with sister industries associations with active support of raw material manufacturers and users. This body would be continuously interacting with various authorities in the matters of concerns relating to plastics and plastic bags. It would also undertake required awareness campaign through print and visual media besides holding seminars etc.
5 OFFICE OF THE ASSOCIATION
Association has its own premises in the Central Market, Ashok Vihar, Phase 1. Delhi, where its office is located which has all modern facilities like computer, fax ,etc. Association’s monthly meetings are held on 10th of every month at 3 P.M ( 11th , if 10th happens to be a holiday/Sunday).
The Association now has its own website viz : www.aipia.org