AIPIA Magazine
11th issue of volume XXIII of official AIPIA magazine
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Activities of All India Plastic Industries Association
GOVERNMENT INTERVENTION - A MUST FOR DISCIPLINING THE POLYMER INDUSTRY

In a public interest litigation case relating to manufacture and use of plastic bags, the Hon’ble High Court of Delhi delivered order dated 07-08-2008 as under:-

  1. The respondents Government of NCT of Delhi shall issue a proper notification fixing the minimum thickness of plastic bags at 40 microns in place of 20 microns currently stipulated.

  2. The respondents, Government of Delhi, the Pollution Control Committee of Delhi and the civic agencies shall take immediate steps for closure of unlicensed recycling units operating from non-conforming areas by using unsound methods for recycling of plastic bags.

  3. Government of India shall expedite the constitution of the committee for verifying protocols for degradable and biodegradable plastics in India if the same has not already been done.

  4. Government of NCT of Delhi shall issue an appropriate notification forbidding use of plastic bags in the main markets and local shopping centers apart from hotels, hospitals and malls where use of such bags is already forbidden.

  5. The other recommendations referred to in the report made by the Committee appointed by this Court and extracted above shall be examined by the Government of NCT of Delhi as also the civic agencies and appropriate actions taken in accordance with law wherever such recommendations are found feasible. No costs.
This order is by way of direction to the Government of NCT of Delhi and other authorities for issue of a suitable notification forbidding use of plastic bags in specified shopping areas and also for fixing minimum thickness of plastic bags as mentioned in the order. This is in no way a decision applicable with immediate effect. So far as the manufacture and use of plastic bags is concerned status-quo-ante will continue till the aforesaid suitable notification is issued by the Government of NCT of Delhi.

Hon’ble Lt. Governor of Delhi should ensure that the aforesaid notification is issued after due deliberation, consideration and in consultation with local authorities like Mnicipal Crporation of Delhi, New Delhi Municipal Committee etc. in addition to all Associations of the plastic manufacturing industry and other stake holders. This consultation and deliberation on such a wider scale would be necessary because the proposed notification may affect the interest of consumers in general and plastic manufacturing industrial units in particular, being labour intensive.

In addition, a wide publicity and campaign will also be necessary for proper education of the manufacturing units as wells as consumers as their co-operation will be mandatory for implementation of the relevant regulatory legislation, rules and the proposed notification.

An effective litter management system will have to be evolved for collection, recycling, disposal of plastic waste. Once this system is effectively in force, even the existing legislative regulation and rules thereunder may prove adequate and as such there may be no need of any further notification in this regard.

Plastic manufacturing units, on their own, have a great responsibility on them to ensure scrupulous compliance of the existing legislative measures and rules.

ASSOCIATION ACTIVITIES
LETTER TO THE MUNICIPAL COMMISSIONER,
M.C.D. FOR TIMELY ISSUE OF LICENSES OF
THE UNITS RELOCATED IN CONFORMING AREAS
AIPIA REQUESTS MUNICIPAL COMMISSIONER OF DELHI

A letter No.16/AIPIA/08 dated 13th August 2008 has been written by name to the Municipal Commissioner of Delhi, for timely issue of licenses to the units relocated in conforming areas. The text of the letter is printed below for information of members.
“As you are already aware that Government of NCT of Delhi had to shift plastic manufacturing units located in non-conforming areas to be relocated in the conforming areas such as Bawana. This was done as an anti-pollution measure. These relocated units were given industrial plots in Bawana. At the time of allotment of the industrial plots each manufacturing unit declared its item of manufacture. Eventhough, they were already licensed and registered units, they need fresh licenses / registration by your factory licensing department.

It is, however, regretted that some of them are not being given fresh licenses for their manufacturing. As a result, their working are under ‘sword of damocles’ , as any time they can be declared un-authorized / un-registered and have to bear penalty accordingly. You would very kindly agree that despite having been given industrial plots in the conforming areas they are being denied fresh licenses to carry on their declared line of manufacture, eventhough they are duly licensed / registered for this purpose.

It has also come to our notice that the manufacturing units submit their applications for renewal of licenses immediately after expiry thereof. Regrettably, the working relating to renewal of licenses is also being delayed for months together. As such MCD inspectors treat manufacturers of such units as unauthorized for want of renewal of licenses. The best course is that either renewal of licenses should in no case be delayed unnecessarily beyond a certain specified period and a manufacturer of a unit who has documentary evidences of having applied for renewal should not be treated as unauthorized till actual renewal of the licenses. Similarly, in the case of units where the applications have been duly filed for issue of fresh licenses because of having shifted to conforming area, they should not be treated as un-licensed / un-authorized if they have documentary evidences of having submitted their applications and they were holding a validly issued license earlier before shifting to the conforming area.

We shall, therefore, be obliged if you kindly intervene in the matter and get the problem solved on an immediate basis, under intimation to us.”


AIPIA CLARIFIES TO THE MEMBERS TO NOT TO BE IN PANIC OVER THE HON’BLE HIGH COURT OF DELHI’S ORDER DATED 07-08-2008 REGARDING PLASTIC BAGS.

A Circular letter No.5/AIPIA/08 dated 18th August 2008 was sent to the members that they need not to be in panic over the order dated 07-08-2008 of Hon’ble High Court of Delhi. Manufacture and use of plastic bags has not yet been banned till Government of NCT of Delhi issues Notification. A copy of the Circular reproduced below for information of members.


“In a civil writ petition the Hon’ble High Court of Delhi has given judgement on 8th August 2008. In this judgement the Hon’ble High Court has given direction that Government of NCT shall issue an appropriate Notification forbidding use of plastic bags in main markets apart from hotels, hospitals and malls where use of such bags is already forbidden.

A copy of the detailed judgement is awaited.

You may have noticed certain news headlines giving the impression that plastic bags have been banned. This obviously is not the correct position. The factual position is that the Hon’ble High Court of Delhi has only given the direction for Government of NCT of Delhi to issue appropriate Notification forbidding use of plastic bags in the main markets apart from hotels, hospitals and malls where use of such bags is already forbidden. Till such Notification is issued there is no ban on manufacture and use of plastic bags. The news headlines are misleading and may have created un-called for panic in your mind. The judgement of Hon’ble High Court of Delhi is in pursuance of Retd. Hon’ble Justice Shri R.C. Chopra Committee’s report dated 14-5-08. The main recommendation of this report are as under :-

- Thickness of the plastic bags for manufacture, sale and use in Delhi may be increased to 40 microns, as has been done in some other States, so that the plastic bags are more costly and its indiscriminate use by the vendors of various products is discouraged. It would also improve retrieval and recycling of the waste of such plastic bags as rag pickers would find it more remunerative as well as convenient to pick up waste of such bags.

- Environmentally sound and economically viable modern recycling units must be established by licensed plastic bags manufacturers or Plastic Manufacturers Associations on the basis of polluter pay principle. Directions may be issued by the Court in this regard.

In view of this position it is clarified that there is no need to be panic, stop accepting the orders and cancel the orders already booked. You may scrupulously abide by all the rules and regulations notified by the Government of State / Union Territory and ensure that manufacture is done in duly licensed / authorized /registered units. On our part, on receipt of the detailed judgement we will approach the Secretary Environment, Government of NCT of Delhi for keeping in view the correct position while issuing necessary Notification as directed by the Hon’ble High Court of Delhi. If considered necessary after obtaining legal opinion we shall explore the possibility of getting the judgement reviewed.

In the meanwhile we have already requested certain Delhi editions of the newspapers to consider publication of the correct position in “letter of editor column”
ORDER DATED 07-08-2008 DELIVERED BY THE HON’BLE HIGH COURT OF DELHI IN PUBLIC INTEREST LITIGATION WRIT PETITION NO. W.P.(C) 6456/2004 RELATING TO MANUFACTURING AND USE OF PLASTIC BAGS.

Please refer our September-08 issue of ‘Plastic World’ to read the contents of the order.
AIPIA successfully gets resolved the problem faced by plastic processing industrial units manufacturing plastic bags in the matter of Excise Exemption to SSI units.

Contents of AIPIA letter No.17/AIPIA/08 dated 2nd September 2008 to M/s. Rajasthan Plastic Manufacturers Association, Jodhpur are published below for information of members.
Subject :- Benefits of SSI Exemption under Notification No.08/2003-CE dated 01/03/03 - Confusion arising                   out of Department of Revenue Letter No.115/01/2008-CX3 dated 16/06/08.
We are in receipt of your fax dated 29/08/08 on the above subject. Reference your talks with our President, Shri Ravi K. Aggarwal and the subsequent follow-up with the authorities; as you are aware we are pleased to inform that the Government has finally conceded to our point of view. In this connection, a newspaper cutting appearing in today’s ‘The Economic Times’ – Delhi edition dated 2/9/2008 is enclosed. We are trying to obtain a copy of the Notification issued in this regard as mentioned therein. We hope that in view of this position no problem will be faced thereinafter. You may take up the matter with the Central Excise Commissioner concerned accordingly.”
The department of revenue letter dated 16-6-08 to all the Chief Commissioners advised that the SSI units manufacturing branded plastic bags for large companies will not be eligible for SSI exemption heretofore admissible. Our Association, therefore, made strenuous efforts to approach the concerned revenue authorities to explain that the aforesaid letter dated 16-6-08 was a grass misinterpretation of the decision of the Supreme Court mentioned therein and would therefore geopardise. The Working of the SSI units manufacturing plastic bags. Eventually our views have got acceptance and as a result Department of Revenue is reported to have issued a revised notification clarifying that the revised exemption will be extended to small units that are manufacturing branded stuff for large scale companies.
Our best efforts have resulted in achievement. Extracts from news item published in our Sept-08 issue of ‘Plastic World’ in this regard.
POINTS DISCUSSED DURING THE 13TH MONTHLY MEETING OF THE EXECUTIVE COMMITTEE (2007-09) HELD ON MONDAY, 11TH AUGUST 2008.

  1. The President, who had attended the PGC Meeting of Central Excise held on 23-7-08, briefed the members about the proceedings of the meeting.

  2. Hearing held by MRTPC on 4-8-08 in the matter of GAIL (I) Ltd. :- Hon’ble Division Bench of MRTPC in the matter of DG (I&R) Vs GAIL (India) Ltd adjourned the case for next hearing on 31-10-2008.

  3. General discussion on the current raw material availability position including pricing aspects: The price protection policy has since been withdrawn.

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