Business Standard

Secondary base metal firms face policy blues

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Dilip Kumar Jha Mumbai
Several domestic base metals re-processing companies are on the verge of extinction due to high raw material costs and upward revision in local taxes. Also, the 'close down' order issued by the Central Pollution Control Board (CPCB) to these units has added to their already growing set of worries.
 
Almost 60 per cent small and medium scale units across the country have shut down. And the number is growing every day. Most units have stopped production as they have not been able to meet commitments made to overseas buyers.
 
The fear of base metal prices volatility between order and delivery of goods looms large for these small scale units.
 
Citing a Supreme Court order dated October 14, 2003, the CPCB in its order dated March 21 stated, "The base metal re-processing industry is operating without the required registration from the CPCB, which is in violation of Rule 19 of the Hazardous Waste (HW) Rule, 2003.
 
The sources of the procurement of hazardous wastes by the units are also not understandable as Rule 20 of the HW Rules does not permit the generators of hazardous wastes to give the same to unregistered parties."
 
Companies such as Variety Metals Pvt Ltd, Chinchwad (Pune), are counting their days.
 
"We need to obtain a licence from the Maharashtra Pollution Control Board (MPCB) to operate our plant in Maharashtra, despite using no restricted raw materials. Apart from that we must get permission from the ministry of environment & forests," said Rohit Shah, president, Bombay Metal Exchange.
 
The hazardous items are categorised as red, amber and green under Section 3 of the Basel Convention 1997. Red items such as spent catalyst containing nickel, cadmium, zinc, copper and arsenic are restricted but allowed for imports by traders with special permission.
 
Amber items such as brass dross, copper dross, copper oxide mill scale are restricted but handled freely with normal permission. Green items such as brass scrap and jelly filled copper cables are freely imported and can be handled by all in general.
 
Recently, the government has also ordered the metal re-processors to obtain compulsory registration from the ministry of environment & forests, said Shah.
 
The ministry, on its part, has threatened to impose huge penalty in the form of delay in clearance in case the units are not registered.
 
"Surprisingly, no item is completely banned in India and the items the government is referring to are not considered polluting agents. The government is helping primary producers at the cost of secondary producers," added Shah.
 
Traders deserve to know the connection of the Supreme Court order and its accessibility by real re-processors. A majority of traders who have been in the field for a long time are illiterate and hence need to be informed by the local government before passing such orders, said Shah.
 
India consumes about 10 lakh tonne of copper of which primary producers meet only 6.5 lakh tonne. The remaining 3.5 lakh tonne is met through the secondary route. Thefore, the interest of secondary producers need to be protected, Shah said.

 
 

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First Published: May 03 2006 | 12:00 AM IST

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