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Firozabad glass, bangle makers on brink of closure, courtesy high fuel price

Updated: Jul 31, 2014 01:33:47pm
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New Delhi, Jul 31 (KNN) With gas prices going up and coal not being allowed near about Taj Mahal cities by a Supreme Court ruling, the Firozabad glass and bangle manufacturers, mostly in the SMEs, are being priced out by large scale companies which have set up plants on the borderline of the banned area to circumvent the court ruling.
 
This was forcefully brought to the notice of the government by Samajwadi Party leader and MP, Ramgopal Yadav in the Rajya Sabha yesterday. 

Participating in the debate on the Finance Bill, Yadav said that due to some of the policies of the government, many small industries are on the verge of closure.

The entire nation knows that Firozabad is a hub for bangle industries employing lakhs of people, he said, adding that, “According to a Supreme Court Order, no one can use charcoal under the Taj Trapezium Zone; instead gas will be used there, which will be available at a subsidized rate.” 

“I had met the Prime Minister (Manmohan Singh) when UPA was in power, he had made the natural gas available at a subsidized rate, but then its price increased,” he said pointing out that, “as a result of this, there is only one industry outside that zone…whose monopoly in the glass industry is spreading across the country because that industry can use coal,” Yadav said.

He noted that the price of coal is one fourth that of natural gas.  So how can the prices of both be comparable, he asked.

“Everybody sitting in the Parliament knows that glass industry is a cottage industry employing lakhs of people,” said Yadav emphasizing that the industry is dying.

He raised the issue in the Parliament and has sought permission to allow the use of coal in the area. “…either revert the Supreme Court order and say that coal can be used; then nobody will have an objection. The bangle industries in Firozabad closed as they are mandated by the Supreme Court Order,” he said.

They have to give Rs 42 one each unit of gas and the other industry outside this (TTZ), such as Somani Industries are given the same at a cost of Rs 16 per unit, he said.

“So, how can a product manufactured at input cost of Rs 42 be competitive in comparison to the same product manufactured at an input cost of Rs 16. It will certainly die,” Yadav said.

Taj Trapezium is an area of around 10,400 km around the Taj Mahal.  Trapezium is home to about 40 protected monuments like Agra Fort and Fatehpur Sikri. The Trapezium is also a hub of several micro and small enterprises including the glass industry cluster at Firozabad and Agra Foundry cluster.
 
On 13 May 1998, Union Ministry of Environment and Forest constituted Taj Trapezium Zone Pollution (Prevention and Control) Authority headed Commissioner, Agra Division under sub-sections (1) and (3) of section 3 of the Environment (Protection) Act, 1986.

Supreme Court had passed a judgement on December 30, 1996 to ban the use of coke or coal in a large number of polluting units within the Trapezium. At the same time, the apex court had ordered the Gas Authority of India Limited to supply natural gas to the units. TERI had extended help to the glass industries to modify their technology to use natural gas. (KNN/SD)

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