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DMAI expects amended realistic effluent treatment norms by next year
Reena Mital - Mumbai

The Dyestuffs Manufacturers’ Association of India (DMAI) this year is proposing to focus on getting realistic effluent treatment norms from the state pollution control board for the dyestuffs industry, and is optimistic that by the next year, the norms would be amended. This was stated by Mr Jyothi Maheshwari, president, DMAI, at the 52nd annual general meeting of the association, held recently in Mumbai.

At present, the effluent treatment norms in Gujarat are much more stringent than the prescribed CPCB norms. In fact, according to the industry, the norms are much more stringent that those in the European countries, too.

The DMAI has already submitted a draft to the ministry of chemicals and fertilisers, stating that certain parameters need to be reviewed, whereas some need to be dropped due to their irrelevance. It has also suggested conversion of CETPs to common waster water treatment plants, as these would be easier for the industry to meet. According to Mr Janak Mehta, honorary secretary, DMAI, “This is already being done in Hyderabad, and can well be done for the dyestuffs industry too. Sewage norms too need to be introduced for effluent treatment for this industry, as is happening in the European countries.”

The DMAI is expected to meet the chemicals and fertilisers ministry authorities in August, after which the ministry is expected to send the same, with possible amendments, to the ministry of environment.

The association is planning to organise a half-day workshop on effluent treatment soon, followed by a half-day interactive meeting with representatives of CPCB, GPCB, APCB, MPCB, and also several debates and meetings at the national level.

Meanwhile, according to industry sources, the action plan for the dyestuffs industry, has not made much progress, even as a review committee has been set up, which meets the ministry of chemicals and fertilisers once in six months to discuss the progress of the action plan. According to sources, “The export target of Rs 10,000 crore set for the industry, over a ten-year period, is definitely not achievable. Exports at present stand at Rs 3,000 crore, and with no improvement in the tax structures, infrastructure, labour laws, etc, how can we become competitive. Even today, we are losing out to China, which has not just overtaken India in the production of disperse dyes, but now also in reactive, acid, etc. China is extremely price competitive, and we will not be able to match their prices.”

According to Mr Mehta, introduction of VAT would help the industry achieve a level of competitiveness. “Today, almost 30-40 per cent of the costs for the dyestuffs industry is accounted for by the cascading effects of double taxation - sales, octroi, surcharge, etc. VAT will correct this, and production costs can go down significantly. It could also give a fillip to exports.”

The dyestuffs industry is today not doing too well, even as the market has picked up. “The manufacturers are not getting the prices, and are operating at extremely squeezed margins, mainly because of the China factor. And this is despite an increase in the intermediate prices,” said Mr Madhu Maheshwari, chairman, Formokem Corporation.

The dyestuffs industry is concentrated in the Mumbai-Ahmedabad belt, and the DMAI has requested the Gujarat government to provide better utilities at global prices for export production. “The sales tax rate on chemicals in Gujarat is 6.6 per cent, against four per cent CST, hence it is economical for end users to import from other states by paying four per cent CST. The sales tax should be brought at par with the CST, which will result in higher revenue for the government also,” Mr Jyothi Maheshwari said.

The DMAI also organised its award function for the year 2000-01 and 2001-02. Some of the award winners included: Formokem (I) Corporation, Vasant Chemicals, Colour Chem Ltd, Diamond Dyechem, Sajjan India, Vivil Exports, Astik Dyestuffs, Clariant, Sabari Dyechem.