SWADESHI PRODUCTS PROTECTION FORUM v. UNION OF INDIA
2001-03-15
JAGDISH BHALLA, R.D.MATHUR
body2001
DigiLaw.ai
JAGDISH BHALLA, J. ( 1 ) THE petitioner No. 1 is a forum primarily involved in safeguarding the national interest with respect to protecting Swadeshi products which is evident from the title of the organization itself. The petitioner has approached this Court for national interest to protect misuse of the public fund in the name of various incentives, concession and amenities provided for purchasing foreign machinery particularly with respect to non-conventional energy resources as a measure of development through wind mills. The Wind Energy Sector enjoys the package of incentives as under :- (I) Concessions under Income-tax, (II) Exemptions from Customs and Central Excise duties, (III) IRDEA (Indian Renewable Energy Development Agency Ltd.), the corporate financing arm of MNES (Ministry of Non-Conventional Energy Sources) provides finance at concessional rate of interest to Wind Mill Projects. (IV) The State Government offering exemptions under the provisions of Sales Tax. (V) Entrepreneur being provided special incentives in their huge investment made in Wind Firm Project. (VI) Wind Mill Projects are integrated with State Electricity Grid and Utilities have established huge infrastructure like sub-stations, power lines etc. at enormous cost. (VII) Various States including the State of U. P. have granted incentives for establishing industries in backward areas and hills wherein electricity is given in very concessional rates. (VIII) The State of U. P. through U. P. Industrial Development Corporation has been allotting land on concessional rates for establishment of such industries and some other States have made arrangement granting land to the projects through Finance Companies. ( 2 ) BY means of the above incentives and concessions the Government Policy is to promote Wind Power Projects to generate power from Wind sources. This effort of the Government is appreciable in view of the fact that the country is facing acute shortage of power but the manner in which the above schemes are being implemented by the Ministry of Non-Conventional Energy Sources are against the interest of the nation. In this regard the petitioner-forum has suggested the following measures :- (A) Any new model imported from any part of the world or manufactured in India should be made to undergo a trial run for a minimum period of five years in India and its performance should be assessed before approval for commercial operations. The performance should be based on the actual date recorded by utilities.
The performance should be based on the actual date recorded by utilities. (B) Machines which have not undergone the trial run should not be made eligible for any incentive package by both the State and the Central Government. (C) The Government Company should not provide any loan at concessional rate of interest for machines which have not undergo the mandatory trial run of five years. (D) Customs or Central excise duty exemptions should not be provided for untested unproven machines in India. ( 3 ) THE petitioner No. 1 had earlier approached this Court by filing Writ Petition No. 892 (MB) of 2000 alleging that defective machines are being dumped in India in the name of international market as a result of which the India has become dumping ground for such foreign machines. For purchase of such machines a lot of incentives, concessions and amenities are being provided to the Indian businessmen which are being misused by them. ( 4 ) THIS Court by its judgment dated 22/02/2000 was pleased to direct the respondents to consider the representation of the petitioner, contained in annexure-10 to Writ Petition No. 892 (MB) of 2000 by a speaking order. The representation of the petitioner has been decided by the respondents by order dated 1-5-2000, contained in annexure-14 to the writ petition. From the perusal of the said order it is crystal clear that the said representation has been decided by a non-speaking order. We are of the considered opinion that the order passed on the representation of the petitioner is not in accordance with the spirit of the judgment passed by this Court so as the misuse of the Government funds be checked and the abuse of the incentives/concessions granted by the Government of India is not allowed. ( 5 ) NEITHER any counter-affidavit has been filed on behalf of the respondents nor, as directed by this Court, any record in this connection has been placed before this Court. The matter is of national interest and, therefore, is serious in nature. Dumping of the machines which are not upto the Indian standard and congenial to Indian conditions is directly against the interest of the nation.
The matter is of national interest and, therefore, is serious in nature. Dumping of the machines which are not upto the Indian standard and congenial to Indian conditions is directly against the interest of the nation. Therefore any incentive/concession granted by the Union of India or any other State Government to such type of machines is neither desirable nor in the spirit of the policy for giving various concessions and incentives and the same should be stopped forthwith. ( 6 ) IT has been brought to the notice of the Court that the Government has already initiated anti dumping investigation against imports of industrial chemical-phosphoric acid from China and the Director General of Anti Dumping and Allied Duties under the Ministry of Commerce and Industry has been entrusted to conduct the investigation with regard to existence, degree and effect of alleged dumping of subject goods from China. ( 7 ) SIMILARLY we provide that it is open for the Government of India to probe into anti dumping of foreign machines and then decide the representation of the petitioner expeditiously within a period of six weeks from the date a certified copy of this order is served upon the authorities concerned. Till the disposal of the representation no incentive/concession as referred to hereinabove be granted to any machinery which does not have time bound programme (3 to 5 years) for such machines to be indigenised and has not at least functioned successfully for a period of three years to the satisfaction of respective Electricity Board/state Government financial institutions. In the process all the State authorities and the State financial institutions be accordingly directed. ( 8 ) DUMPING of foreign products has become a serious problem and threat to the economy of the country. Sub-standard goods, food articles and machines etc. are being dumped in our country which cannot be accepted. The seriousness of the matter is being discussed all over including the Parliament. In the circumstances we feel that concrete steps should be taken to check this menace and in the process it would be open for the opposite parties to consider and legislate the appropriate law in this regard. ( 9 ) WITH the above directions the writ petition is disposed of finally. Order accordingly. .