Cement Firms To Move Court Over Jute Order

Indian Rayon, L&T Cement and J K Cement are planning to move high courts in various states against the jute commissioner.

The latter had issued show cause notices to all cement manufacturers threatening to levy a penalty for not utilising jute bags for packing cement.

The cement companies were asked why they should not be penalised for violating the Jute Packaging Act, which stipulates that 50 per cent of all cement bags used should be made from jute.

While Indian Rayon will be filing the writ in the Karnataka High Court next week, L&T is expected to file the petition in the Mumbai High Court in the next couple of weeks.

 

Gujarat Ambuja has replied to the show cause issued to it and if its reply is found unacceptable, the company is likely to move the courts. against the jute commissioner's orders, sources said.

Aditya Cements, Mangalam Cement and Laxmi Cement have already filed petitions against the commissioner's order in the Rajasthan High Court contending that cement packed in jute bags pose a health hazard to workers involved in transportation and delivery as cement dust escapes from the bags causing extensive damage to the workers lungs.

Some units are also likely to challenge the jute commissioner's order on the additional plea that the commissioner per se has not been delegated power under Section 9 of the Jute Packaging Act. The notices issued by the jute commissioner has been monotonous and it appears that only the name of the company and the date vary in the different notices issued by the commissioner's office.

Cement companies will also be challenging the continuity of the standing advisory committee on jute headed by the secretary of the ministry of textiles on the grounds that the same members have continued since 1987 when this committee was constituted.

The cement manufacturers have alleged that the order to pack 50 per cent of the total production in jute bags would lead to seepage and transit losses of around five per cent of the cement packed.

The industry estimates that loss due to seepage alone would be around Rs 900 crore per annum. While a standard plastic bag for packaging cement costs around Rs 5 per unit a jute bag meant for the same purpose costs around Rs 12.