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REGISTERED NO. D. 221

The Gazette of India

EXTRAORDINARY

PART I—Section 1

PUBLISHED BY AUTHORITY

No. 271] NEW DELHI, MONDAY, DECEMBER 4, 1972/AGRAHAYANA 13, 1894

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

MINISTRY OF FOREIGN TRADE

RESOLUTION

TARIFFS

New Delhi, the 4th December 1972

No. 12(2)TAR/72.—The Tariff Commission undertook an enquiry under Sections n(e) and 13 of the Tariff Commission Act, 1951 (50 of 1951) on the continuance of protection to the Dye- Intermediates Industry beyond 31st December, 1973. It submitted an Interim Report in 1971 and the recommendations made in it were accepted for a period of one year vide Government Resolution No, I4(5)TAR 71, dated 10th December, 1971 subject to the further recommendation of the Tariff Commission in its Final report.

The Final Report of the Tariff Commission on the Dye-Intermediate Industry was submitted to Government in July this Year and the recommendations made in it as subsequently clarified by the Commission in respect of some are summarised in the attached Table.

TABLE

Decision of the Government Recommendation of the Tariff Commission

SI. No.

1

2

3

I. CONTINUANCE OF TARIFF PROTECTION

(a) 1

Accepted. Necessary legislation will be undertaken in due cource.

Continuance of protection at the existing rates of protective duty : The existing protective rates of duty viz. 60 per cent ad valorem (Standard) and I50 per cent ad valorem (Preferential) may be continued up to 31st December, 1974 on the following Dye-intermediates:

1. Beta amino anthraquinone ICT ITEM (2 amino anthraquinone) 28(35)

(1993)

. 1,

-2 I 3 ICTITEM

*

28(39)

2. Anthraquinone, 3. Accto-acet anilidej 4. Aceto-acet-ortho toluidide> 5. Tobias acid (2-naphthylamine-i-sulphonic add). 6. Aceto-acet-ortho-chloro-anilide, 7. C Acid (2-chloro-5-toluidinc-4-aulphonic acid or 6-chloro-meta-toluidine-4-sulphonic acid),

8. Meta-nitro aniline, 9. Meta-nitro-para-toluidine,

10. Phenyl-J-acid (2-phenylainino-5-naphthoI-7-

sulphonic acid or 2-phenylamino-5-hydroxy- naphthalene-7-Bulphonic acid),

28(40)

11. 1,5-diamino-anthraquinone, 12. Scnaeffer acid (2-naphthol-6-8ulphonic acid), 13. Mcta-chloro cnilinc, 14. 2, 5-Dichloro aniline, 15. 4-chloro-2-anisidine, 16. 4-chIoro-2-nitro anisole, 17. Ortho nitro aniline, 18. Para toluidine meta sulphonic acid, 19. Ortho-amino azo-toluylene (a, 3)-dimethyl-4-

amino azobenzene or 4-ortho-toluylazo-ortiio- toluidine).

20, R. Salt (2-naphthol-3,6-disulphonic add, sodl-

umsalt),

21, Benzoyl-J-acid (2-Benzoyl amino 5-naphthol-7-

sulpnonic acid).

22. Para-nitrosophenol (i-hydroxy-4-nitro

benzene),

23. Dinitro stilbenc disulphonic acid (4J4/-

dinitro stilbenc-2^'-disulphonic acid), 24. Beta naphthalene thioglycolic acid Oz-naphthyl

thioglycolic acid), 25. 4-chloro-ortho-toluidine, 26. i-amino-6-nitro-2-naphthol-4-8ulphonic acid, 27. Para-nitro toluene sulphonic acid or Para-

nitro toluene-ortho-oulphonic acid (tohiene- 4-nitro-2-sulphonic acid or benzene- i-methyl- 4-nitro-2-sulphonic acid).

<*)

Accepted. Necessary legislation will be

undertaken hi due course.

The existins protective rates of duty of 100 per cent ad valorem (Standard) and 90 per cent ad valorem (Preferential) may be continued up to 31st Decem- ber, 1974 On the following intermediates :—•

1. Phenyl Peri Acid

I C T I T EM

(Phenylamino naphthalene-8-sulphonic acid),

28(38)

2. Ortho Toluidine, 3. Diethyl Meta Amino Phenol

(Meta-dlethylamino phenol^,.

4. Diamino Stilbene Diaulphomc acid(4,4'-diamino

atilbene-2,2'-disulphonig acid).

(b) Continuance of protection at enhanced rates ofproteetiv* duty

(3)

Accepted. Recommended rates of duty aro being brought into force with immediate effect by Notifica- tion under Section 4(1) of the Indian Tariff Act, 1934.

Necessary legislation will b*

undertaken in due course.

The protective rates of duty of 100 per cent ad valorem (Standard) and 90 per cent ad valorem (Preferential) may be levied on the following two intermediates upto 3iBt December, 1974 as againBt the existing protective duty of 60 per cent ad valorem (Standard) and 50 per cent ad valorem (Preferential) :— 1. Metanilic add, "I 2, Quinizarine CPAKT I—SEC 1] THE GAZETTE OF INDIA EXTRAORDINARY r995 2 I 3

(c) Continuance of protection at rates below the present level of protective duty.

4

Accepted. Recommended rates of duty are being brought into force with immediate effect by Notifica- tion under Section 4(1) of the Indian Tariff Act, 1934.

Protective rates of duty of 6o per cent ad valorem (Standard) and 50 per cent ad valorem (Preferential) may be levied on the following intermediates upto 31st December, 1974 us against the existing protec- tive duty of 100 per cent ad valorem (Standard) and 90 per cent ad valorem (Preferential) :—

Necessary legislation will be undertaken in due course.

I. J-Acid (•-naphthylrmine-5-hydroxy-7-suJrrioni

acid),

c ICT Item 28(38)

2, 4-chloro-2-Nitro Aniline, 3. Para anisidine, 4. Paratoludine.

II. FRESH ITEMS OF DYE-INTERMEDIATES IFCUChT lLMIIR i rE SCHEME OF PROTECTION

5 The existing statutory revenue duty of 60 per cent ad valorem (Standard) and 50 per cent ad valorem (Preferential) on the followirg dye-intei mediates may be converted into cquivnknt protective duly, which may be kept in Jorce upto 3it,t December 1974 :—

Accepted. Protective rates of duty arc being breight into foice with im- mediuic effect by Notification under Section 3A of the Indian Tariff Act, 1934.

Accto acetic ester (methyl/ 1. Chicago acid, 2. G-Salt, 3. Gamma acid, 4. H.Acid, 5. J-Acidurea, fi. Meta-toluylenc-diEmjiif, 7. Mcla-Phenylene-diamine, H. Nevile Winther acid, 9. ParaNitro aniline,

ethyl), Trichloro benzene, Benzidine sulphate and Dime- thylaniline have been with- drawn simultaneously from the list of dye-intermediates whose import is being allowed at concessional rates of Customs duty.

Necessary legislation will be undertiken in due courBt.

10. Rhoduline acid, 11. Sulphanilic acid, 12. Sodiumnaphthionate/naphlhionic acid, 13. 2, 5-dichloro nitro benzene, 14. Dimethyl sulphate, 15. Beta-naphtho], 16. Aceto acetic estci (Ethyl/methyl), 17. Trichloro Benzene, 18. Benzidine dihydrochlorida/Benzidine Sulphate, 19. Dimathylaniline.

III. ITEMS OF DYE- INTERMEDIATES IN

RESPECT OF WHICH PROTECTION ISWITH- DRAWN.

6

Accepted.

Protection granted to the following Dye-intermediates need not be continued beyond 31st December, 1972 and the protective rates or duty on these may be converted into revenue rates at 60 percent ad valorem (Standard) and 50 percentod valorem Preferential) :—

1. i-aminoantht-aquinone, "1 ICT 2. Ortho-chloro aniline, i-Item 3. Para-chloro aniline, J 28(40) 4- S-Para-nitro anisole, 5-cnloro-ortho-toluidine, 6. 1,4-Diaminoanthraquinone, 7. PerlAdd, 8.2,5-Dimethy]-4chlorophenyl thioglycollc acid, 9. Amino-Iso-G Acid

In the case of Dye-intermediate viz. Ortho anisidine classified under ICT Item 28(38), noti- fication under Section 4(1) of the Indian Tariff Act, i934s reducing the existing protec- tive duty of 100 %ad valorem (Standard) and 90 %ad tioZo- rem ("Preferential ) to 60% ad valorem (Standard) and 50% ad valorem (Preferential) has been published separately. Necessary legislation will be undertaken in due course. ro. Ortho anisidine [ICT TVEM 28(38)]

Since in the fore-seeable future quantitative control over their imports is likely to remain they should continue to be under the supervision of the Tariff Commission within the meaning of Section n(a) of the Tariff Commission Act, 1951, so that a conti- nuous watch be maintained on the progress and development of these intermediates until the 31st December, 1974. 11. BenzanthronelCT item 28(36) 12. BON Acid ICTItem28(37) 13. 2,6-dlamino anthraquinone, ") ICT 14. Ortho-nitro unisole, )-Item 15. l-Chloro anthraquinone, J 28(40) 16. Anthraquinonc-i-sulphonic add sodium salt

rv. ITEMS OF DYE-INTERMEDIATES IN

RESPECT OF WHICH DUTY IS TO BE REDU- CED AS A MEASURE OF ASSISTANCE TO THE INDUSTRY

Accepted,

7 The following Dye-intermediates may continue to be shown some duty concession till 3iBt December, 1974. The concessional rates of duty may be fixed at 40 per cent ad valorem (Standard) and 30 per cent ad valorem (Preferential):

I. AlphaNaphthylamine, 2' 2-Chloro-4-nitro aniline, 3. 3j3-Dicbloroben2idiney 4. N.N.Diethylaniline, 5. 3j 3'-Dichloro Benzidint dihydrochloride, 6. Meta-dinitro benzene, 7. Meta nitro chloro benzene, ^ 8. Mono-chloro-para-xylene (

(i-chloro-2,5-dimethyl be^ene or 2-chloro-i, 4- dimethyl benzene), 9. Ortho-nitro chloro benzene,

10. Ortho nitro toluene, II. OrthoTolidine" 12. Para nitrotoluenej 13. Paratoluidine-ortho-sulphonicacid [IPara tOlu i-

dine (i-methyl4-Hmino)-ssulpb.onic acid]!,

14. Para nitro chloro benzene.

S

Acceptcd.

With regard to "Penultimate dye-intermediates' noted in the Customs Notification No. 148/F. No. 17-4-69- Cus, I., dated 15-11-1969, attention is invtied to the following recommendations 1

(i) specific as well as other intermediates whose pre- domincnt use (say, 85 to 90 percent) isin the dy" tuff industry, should be granted unqualified duty concession and thus freed from the operation of bond restrictions ;

(li) per contra thoseintermediates whose predomlnent use (say 85 to 90 per cent) is in Industries other than dyestuff, should be removed from the duty concession list; and

Sincenolistofthtcypesof inter- 1- mediates referred to in (i) and (iii) can be established, the present conditional nature of exemption may continue. Importers should file continu- ing bonds for specific sums and for specific periods. The Ministry of Petroleum and Chemicals will settle the pro- cedure relating to import of the relevant intermediates.

(iif) thoseintermedates whichdonotbelongtoeither of the above two groups but whose Incidence of cost on the cost ofproduction offinisheddyestuff Is significant, may continue to enjoy the duty con cession subject to the execution of bond by the Importer.

Effective steps may betaken for apeedy implementation

of these recommendations.

(iv) with regard tothe bond requirements by the Cus- toms authorities, where normal duty is paidj the question of bond does not ariao. Where the dye- intermediates are required for the manufacture of dyestuffs, then the end-use certificate from the Directorate General of Technical Development (DGTD) forthelarge scale sector and theDirec- tor of Industries for the small Bcale units would have to be furnished. In the remaining cases instead of havingindividual bonds for each Import it is felt that it would be advisableto have a conti- nuous bond of a certain sum for a specific period. It is felt that the Standing Committee may also look into thiB matter.

The partial exemption from excise duty granted to

9

benzene3 ethyl benzene, benzol toluene, tolucb and light solvent naptha (mixture of benzene andtoluene) may be extended to ortho-xylcne also.

The inclusion of ortho-xylcne in the list of dey-intermediatea eligible for partial exemption of excise duty has been re- commended on the ground that the concession will help In the export of dye-intermediates based on ortho-xylene. Since on "export of such dye-inter- mediates adequate compensa- tion of duty element is avail-' ablo through rebate/draw- back, the recommendation ii not accepted.

Various difficulties encountered by the producers in

IO

Noted,

promoting research and development were ventilated during the public inquiry. It was Btated that while there were adequate talent and facilities available for undertaking research activities, sufficient incentives were not forthcomingto encourage rapid progress in this field. As an example It waa cited that according tothe existing legislation, amounts set apart for in- curring expenditure on research had to be spent in the vcryyear,ifIncomctaxrelief wastobe obtained thereon. The research process being a continuous one it contended that it was not practical to epend the entire amount in the very year so as to get tax relief. It was averred tbat someflexibility in tbi" regard was necessary so that the manufacturers could claim tax relief for expenses incurred oter " number of years. It was added that the individuil units could create their own Research and DeTelopment Fund and in the year"wher""ubstanti"l profits were m*dC| cer- tain amount could be set apart tobeputin the fund which should be exempted fromtixes. There appears to be some force in thia contention and it is brought tothe notice of Government.

Noted.

II

V. OTHER ANCILLARY RECOMMENDATIONS If at a later stage manufacturers find that protective rates recommended for certain uncosted intermediates are inadequate to cover the price disadvantage they may apply to the Commission with requisite data for suit- able revision of the quantum of protection.

Accepted.

12 Protection is not necessary in the case of (i) ace to acet meta xylidide and (ii) aceto acet ortho anisidide which should continue to bear the existing revenue rates of duty at 60 per cent ad valorem (Standard) and. 50 per cent ad valorem (Preferential).

13

The concessional duty on (i) accto acetic cater, (il) tri- chloro bonzenc, (ill) dimethyl-aniline and (iv) benzi- dine sulphate may be withdrawn.

Accepted. Duty concession has been withdrawn. Accto accti- ester, trichlorobenzene, die- methyl-aniline and benzidinc sulphate have been included in the list of new items of dye- i intermediates to which pro- tection has been extended.

Th-rc is no justification for granting duty cocession on Accepted.

(i) Amino-azo benzene hydrochloride, (ii) Laurant acid and (iii) Para-amino-acetanilide and the existing revenue rates of duty at 60 per cent ad valorem (Stan- dard) and 50 per cent ad valorem (Preferential) may be continued on these intermediates.

Accepted.

IS

Concessional rate of duty to the following 29 intermedia- tes asked for by certain producers is not favoured. Revenue duty at the existing levels may be continued on these items.

i- 3-Amino anisic acid anilide, (3-Amino-para-

anisanilide).,

2. 2,4-Dinitxochlorobenzcnc, 3. 2,5-Dichloronitrobenzcne, 4- Ethyl benzylaniline, 5, 4-Ctiloro-orrAo-nitro to'uenc (4-Ch'oro-2-nitroto-

luene)

6. Mich'er fcetone [4*4/- bis (dimethy-¹amino)-benze-

phenonc].

7. para-Ch'orophcnol, 8. Phenyl-alphanaphthylamincj 9. Phenyl hydrazine.

10. Tctramethvl-thlourea, 11. 4,4/-Di(6-mcthylbenzthiazyl) azobenzene, 12. Phenvlmethyl-lpyrazolonc (3-Methyl-l-phenyl-5-

pyrazolone),

13. Aniline, 14. Orffto-Dichlorobenzenej IS. £ara-Oresldine (5-methyl-orthoanisidine), 16. a-Acetylaminc-j-chloroanthraquinone;, 17 2-Auuno-3-hydroxvanthraquinonc, 18. Anthraflavic ncid/Calcdon salt Af 20%Paste;l 19, i,2-Dichloro-4-nitrobenzeAe, 20. 1,1-Dinaphthyl-Sj 8-dicarboxylic alcid, 21. wieta-Toluidine, 22, maw-Xylidine, 23. Molybdic acid, 24. o"/iL)-Sulphanilic acid, 25. 1,9-Pvrazolanthrone, 26. 2,4,5-Trichloroaniline, 27. Dchvdrothio-para-toluidine-sulphonic acid, 28. 2,5-Xylidine, 29. 2-Amino-3j 5-Xylene sulphomc acid.

16

Will be implemented to the axtcnt possible under the Im- port Policy in force from

time to time.

Imports of aceto-acetic ester should be so regulated as to meet only the excess requirements over indigenous production. At the same time an all-out effort will have to be made bv the producer to bring down his cost of production by effecting all possible economics in the operation of the plant.

Attention of the producer of aceto-acetic ester is invited to the latter part of the re- commendation,

Accepted.

A watch ay be kepi on Imports of meta-nitro-para

17

toluidme, if any.

13

Will be implemented to the extent possible under the Im- port Policy in force from time to time.

The existing Import Trade Control Policy of banning imports of seven intermediates libted below needs to be continued during the period of protection i.e., upto 31st December, 1974 so that full utilisation of dome- stic capacity is not hampered:

1. 2, 3. 4- 5- 6. 7.

Aceto acet anilide, Aceto acet orthochloreoanilide. Aceto acet orthotoluidide, 4, 4/-dinltro stilbene-2, 2/-disulphonic acid, para nitro toluene ortho-sulphonic acid. para toludidinc, para tolui line-meta-sulphonic acid.

19

Will be implemented to the extent possible under the Im- port Policy in force from time to time.

The existing Import Trade Control Policv of restricting imports of twelve intermediates listed below needs to be continued during the period of protcctloi.e. upto 31st December, 1974 so that full utilisation of dome- Btic capacity is not hampered:

1,

2. 3- 4- 5- 6.

7.

R.

9. 1 0.

i-amlno-6-nitro-2-naphthol-4-sulphonic acid, Benzoyl-J-acid, 4-chIoro-2-nitro aniline, 1-5-diamino anthaquinone, 2, 5-dichloro nitrobenzene, 2-naphthyl-thioglycolic acidj Phenyl-peri-acid, Para anisidine, Phcnyl-J-acid, R-fialt. Schaeffcr acid,

I I. 1 2, , Tobias acid.

20 Imports of (i) dimethylsuphatc, (ii)4,4/ dimino stilbene- 2,2/disulphonic acid and (iii) ortho-toluidine should be BO regulated that full utilisation of domestic capacity is not hampered.

Will be implemented to the extent possible under the Im- port Policy in force from time to time.

21 imports of dye-intermediates mentioned below should

1.

continue to be effectively regulated: para-nitrosophenol,

Will be implemented to the ex tent possible under th- Import Policy in force froe time to time.

2. 4-chloro-ortho-toluidine.

Z2

Will be implemented to the extent possible under the Import Policy in force from time to time.

It would be desirable to permit imoports of J-acid to effectively fill the gap between indigenous production and the total demand, particularly to ensure that the requirements of the small scale sector are adequately met at reasonable price.

23

Will be implemented to the extent possible.

The problem of imports and other allied mattars re- quires a balanced overall view to be taken. It needs to be ensured that all possible assistance is given to the industry not only to enable it to use the installed capacities of variou* items to the fullest extent possible but also wherever 'necessary requisite expansion should also be permitted. If any restrictions have to be put on the import of items already in production either by completely banning or allowing imports on restricted basis., the matter needs to be considered rationally from the view point of the industry as a whole having regard to the overall national interest.

24

Noted.

Import Control Policy for the chemicals imported by the Dyestuff Industry should be rationalised in the light of the suggestions made by Federation of Asso- ciations of Small Industries of India (F.A.S.I.).

25

Attention of the industry it drawn to the recommendation.

In case of imports of inermediates, the production of which was to be indigenously started there seems at present some lack of proper co-ordination between the Industry and the Chief Controller of Imports & Exports (C.C.I.&E'). The industry should also re- gularly kee the C.C.I. & E. informed of the latest de- velopments in its manufacturing programmes so as to enable the latter to take these developments into consideration when framin g the import control policy.

Noted^Will be implemented to 26

the extent possible.

For keeping a watch on the healthy growth and de- velopment of the industry, it is necessary to know the now of imports of each of the intermediates whose annual requirements are likely to be significant, say in excess of io tonnes. Directorate General of Com- mercial Intelligence and Statistics, should maintain separate statistics of importB of such Intermediates,

Noted.

27 It should be examined whether in the case of sen- sitive items, the validity period of licence could not be shortened so that a more frequent review of the position of imports vis-a-vis availability could b" under-taken, say, at an interval of every six months.

Noted.

28 The Chief Controller of Imports and Exports after taking into account the foreign exchange resources position and other relevant factors should give sym- pathetic consideration to the suggestion of allowing at least 20% of tho Rupee Currency Area licences to be converted into Hard Currency Arealicenccs when a producer could prove that he was using a particular item which was not available in the Rupee Currency Area.

29

Notca.

What needs to be ensured is not merely sufficient pro- duction of a particular Intermediate but also its requi- site quality and reasonableness of its price. It is, therefore, imperative that before licensing tho detailB of the costs furnished by the prospective manufacturers arc carefully scrutinised by the concerned authorities.

Noted. Will be implemented to 30

the extent possible.

Chief Controller of Imports and Exports may look into the suggestions made by some of the' units of the industry for (i) release of mild steel to such units who wish to fabricate their own plants and equip- ment and (ii) allowing Imports of Bpare parts of fo- reign makes of machinery installed by the producers.

Notec\

3i Development Commissioner fior Small Scale Industries may be requested to t ake effective steps for eliminating" toxicrisks in the use of dangerous chemical, ensuring safe working conditions.

33

Noted. The attention of the industry is drawn to the re-

commendation, In view of the large gap between the demand ior and the available upply of acetic ester Important inter- mediate, the existing capacity of the intermediate needstobe augmented sothat ultimately the domestic production is capable of meeting fully the indigenous requirements.

Attention ofthelndurtry ii drawn 33

to the recommendation.

Itisnecessarytohaveup-to-datc accurate data in regard to capacity, production, sales, consumption, and various other aspects of the industry, bothfrom large and small scale sectors, particularly the latter. The producers associations should arrange for collection and compilation of relevant data and for forwarding It periodically to the D C(SS I) and 10 D. G.T.D.

34

Utention of State Trading Cor- porationis diawntotho recom- mendation.

Ilnitsownintere8ts,asachcckorthe qalityof supplies i the State Trading Corporation of India should consider introducing some sample testing on its own on receipts of goods even though It baa large scale operations and receives necessary certificates of analysis from the foreign manufacturers.

Noted.

35 The State Trading Corporation's suggestion that in the case ofimporte through it the customers should place flrm orders and payin advance 5 to 10 per cent ofthe value ofthe goods as deposit. The State Trading Corporation in turn would be v,illingtopa> interest threon. Thin proposal is commended forkconsidera- tion of Government.

36

Attention of Indien Sttrt'trc'sf Institutkn is ditwn to the recrmmendat'nD.

/nthelnterest ofthis growing industry the Indian Stan- , dards Institution should finalise early standard speci- fications with due regard to the purity percentage for as. many of the important dye-intermediates as possible

36J

Noted.

V Where there Is only a single manufacturer of B certain item or at best two, who conirolits entire production, they should not be allowed 10 create artificial shortfall in supply ofthe relevant product with a view to jack- ing up prices tothedetriment of the end users. What is needed is Judicious planning jo that; if necessary, expanded capacities could come up to cater to the needs both ofthe internal demands as well as forthe external markets to earn valuable foreign exchange and thus increase the overall production.

Noted. Will be Implemented¹ 37 '

to the extent possible.

The various proposals put forth by the Export" Promo- tion Committee (EPC) and Dycstuff Manufacturers Association of India (DMAI)for promotion of export notic of Government for such action as deemed fit. of Dyes and Dye-intermediates are brought to the

38

•• Will be implemented to the-

extent possible.

The following suggestions made by the producers regard ing the working of the Industry are brought lothe noice of Government for such action as it may consi- der necessary t

(i) restrictions placed on the manufacture of allied

products like Pharmaceuticals and plastics, when tht plants are idle, should be removed ;

(ii) permission to import spare parts should be based on a fixed percentage ofthe capital cost rather than ontha basis of a fixed amount irrespective ofthe siza of th" units or its expaniion ;

(ili) if any Patents are involved, the owners of thi. patents must be forced to give manufacturing rights by Payment of nominal royaty;

(Iv) excise, sales-tax, octroi and such other Imposts

need to be scaled down or removed to safeguard the interests ofthe consumers ;

and

(v) credit facilities at present given to consumers of dyes by the lirge scale units who produce both dyei and dye-intermediates, should also be exten- ded to tht manufacturers of dye-intermediates in the small scale sector.

S9 In order to help the industry in promoting its Research and Development activities, the Development Coun- cil for Organical Chemical Industries (Dyes Panel) Bhould be entrusted with the workofcoordinatingthe research efforts of various units. The National Chemical Laboratory, Poona, Bhould aleo be associa- in this work. Government may also consider the ted feasibility of buying technology for some of the new items and making it available 10 these who wish to use it.

4O

Attention of National Chemical Laboratory as also the industry i"

drawn tothcrecommendation.

iB-

For furthering Research and Development activities in the Industry and fuller utilisation of the facilities provided ai the National Chemicals Laboratory ( N . C L . )J the N.C.L. should bes ides undertaking sponsored research projects as at presentk agree to allow the chemists Hnd qualified technoligists belor ing to the small srale and medium size companies to utilise, upon payment of reasonable charges, the facilities available in it (N.C.L.,Poonu) to carry out investigations and tests.

While It may not be feasible to make any water-tight

41

Noted.

distinction as between Dye-Intermediates to be manufactured by the large and small scale units it would be worthwhile to explore ways and means for achieving a programme of rationalised manufacture, keeping in view efficiency and viability oritcria amon- gst others so that healthy and rapid progress of the industry could be smoothly achieved. The recently formed Standding Committee for Dycstuff Industry, which has on it representatives not only from the Government but also from both the sectors of the Industry^ could play an effective role in this direction.

42

"Attention ofthe industry is drawn

to the recommendation.

In order to avoid unhealthy competition and overlapping of production between t ie large scale and small scale units of the industry some katlonal division between the large scale and small Bcale Bector is necessary. For a proper growth of the Industry as a whole they have to be complementary to each other rather than competitive. While items of manufacture which require large scale production, and also those involv- ing complex processing could be more economically and efficiently produced by the units in the large scale sector, who possess the necessary facilities, including those for research and development, the manufacture of sophisticated items required in Bmall quantities for specialised uses as well as those involving simple process could be preferably left to the small- scale sector who have the advantage of being labour- intensive.

43

Noted. Attention of Indian Standards Institution is drawn to the recommendation.

The usage of raw materials and other inputs in a number of dye-intermediates even'when they are produced with foreign technical collaboration is found to be at a comparatively higher levelthail would be warrnted by the Internationally recognised standards. This higher consumption of raw materials lowers the efficiency of production the reby raising the cost of finished pro- ducts. This is a serious matter and should be looked intolby competent technical experts.

44

Attention of producers of phtha- lic anhydride is drawn to the recommendation.

The products of phthalic anhydride should explore all possible ways and^means to effect economies in the process of its manufacture so'as to bring down its price as far as possible to the level _of the landed cost of the imported product.

45

Noted. Attention of the Indus- try and the recognised Asso- ciations of manufacturers also drawn to the recommenda- tion.

It is high time that the Industry seriously considers some sort of voluntary discipline to ensure that the selling prices of us products to the consumers are fair and reasonable. The recognised Associations of the manu- facturers can, and should, also play a more effective part in ensuring such price discipline, In this context, while inviting reference to Commission's recommen- dation No. 4 in Government Resolution No. 14(5)- Tar 69, dated 25-2-1971 on the 1970 Review Report, it as proposed to select a few dye-intermediates and examine in depth the pricing policy of the manufac- turers, their capacity utilisation, supplies and quality in terms of section n (d) of the Tariff Commission Act, 1951.

46

Attention of producers of zin dust and other raw material is drawn to the recommenda- tion.

There is great need for improving the quality of Zinc dust and other raw materials as well as bring down then: prices It is hoped that their producers would make earnest efforts to bring down the cost of their manufacture and improve their quality so that they conform to Indian Standard* Institution (IS!) stan- dards.

In order to improve quahtv of raw materials as also to

47

Attention of producers of raw | materials is drawn to the re-

rnTTipi^ntJflTiorii

fcbnng down the cost of manufacture of dye-intermedi- 1 ates for indigenous consumption and to make them more competitive in the foreign market, it is sugges- ted that the producers of raw materials should ensure that their products conform to I S I. specifications. They should also make concerted efforts to economise In their cost of maaufacture.

48 Producers in both the large ani small scile sectors should Attention of producers in both the largo and small scale sec- tow of dye-intermediates is drawn to the recommendation pay rmre attention to the quality of their products nnd remove the complaints voiced by the consumers. As dye-intermediates manufactured in India arc now progressively entering the export markets it is impe- rative that the manufacturers become more quality- conscious to withstand international competition.

Noinformationib available astohowfarthe following

49

Government will continue to pay attention to the reco- mmendation with a view to implementing it to the extent possible,

recommendation made in 1968 Report on the conti- nuance of protection to the Dye stuffs Industry and covered wieRecommndationNo,(i5) of the Govern- ment ResolutionNo l4(i>Tar68, dated the 7th De- cember, 1968, has been implemented:

s

(15) The Import licensing authorities should take note a of the comments of the Dye-stuff industry regarding cases of import of banned items and while formulating their future policy take effcctivt steps to plug loopholes if anyj that may come to light in the actual working.

The recommendation is, therefore, again to the notice

of Government.

50 TheComirussion has raitcrated the following recomm- endations made in its 1970 Review Report (on whict Government's Resolution No l4(5)-Tar/69, dated 25-2-1971 was issued) for implementation to the ex- tent possible cM

Government will continue to 1 pay attention to these reco- mmendatiors with a view to implementing them to the extent possible.

1 (l)Therc should be greater coordination and co-ope- ration among the small and laigc sclae sect ors of the industry They should, be able to exchange the products among thcmsalvcs on the basis of their mutualnceds and avialabihty.

I(iv) LSOIUC further checks should be imposed on the impoitb, particularly agamsi omnibus Export. Promo ton Licences, of certain intermediates, which ate already in production oi for which adequate capacities exist in the country.

i(v) Where intermediates have still to be imported, prefernce should be given to the small scale sector, who have no capacity for the manufacture of these intermediates directly from raw materials.

i(vi) There is need for selective intensification and rationalisation of control over imports as well as establusment of regulatory control over distribu- tion t o ensure equitable sub-division of aviablc su- pplies ro nil sectors of the industry. To th

i( The installed capacity of ortho-toluidine being more than sufficient to meet the internal demand, steps should bo taken to impose the production to aviod imports which are slightly more costly than the indigenous product.