Tuesday, February 25, 2014

PHD Chamber wants annulment of administered Price Mechanism (APM) benefits for glass bottles units

PHD Chamber of Commerce and Industry has urged the government not to forgo its annual revenues to an extent of Rs 1000 crore on account of allocating natural gas with benefits of administered Price Mechanism (APM) to industrial units,  producing glass bottles in the Taj Trapazium Zone (TTZ) area of  Ferozabad.

The Chamber has opposed the move to such units, arguing that units producing glass bottles have changed their product mix and expanded their capacities in contravention of Ministry of Environment and Forest’s (MOEF) direction and commitment as per their affidavit filed in the Supreme Court as well as the letter and spirit of the Supreme Court order, which does not allow capacity expansion  and establishment of new industry.

The representation signed by the Executive Director PHD Chamber of Commerce and Industry, Mr Saurabh Sanyal and sent in to ministries of finance, commerce and industry as well as petroleum and natural gas points out that industrial units producing glass bottles in the TTZ area that have started such production after the 1996 Supreme Court order, should be restricted to their original gas allotment.

This, according to the chamber would be appropriate since these units have changed their product mix and expanded their capacities in contravention of the government guidelines. It has also highlighted that such glass bottle units are covered under RED CATEGORY as per environment and  pollution  act and thus should not be allowed to operate in a sensitive area like the TTZ and that too with an undue advantage of cheap gas availability.

Further points out Mr Sanyal, stating that none of these units fall either in the category of small scale industries (SSI) or small and medium Sized enterprises (SMES) as their  investment   limits exceed in crores and the ministry of petroleum and natural gas has also submitted to the Supreme Court admitting that it will not allow expansion  in the operating units in Taj Trapezium.

The PHD Chamber has also pointed out that registration to new capacities was being issued recklessly by district industry centre Firozabad in clear violation of the directives of the union government.