New MOEF Guidelines; Wood Pasting, MDF & Board Industries Now Free from License Compulsion

person access_time   3 Min Read 13 October 2017

As reported earlier by The Ply Reporter there has been the phenomenal change in Government policy towards boosting the prospects for opening wood panel furniture industries in the country. The change in guidelines is published in ‘Government of India Gazette’ issued by Ministry of Environment & Forest on dated 12th September 2017 in Gazette number 2625.The guidelines offer clarity on freeing up the establishments of plywood, panel and furniture units and designate the poser to SLC to take decisions as per available rules and facts.

If they are using agro-forestry timber species that require a small window for pasting units but does not allow any establishment of peeling, slicing or sawing unit anywhere in India.

The Gazette says, “the State Level Committee (SLC) shall assess the availability of timber in the state by way of appropriate study on demand and supply as and when it decides. SLC shall devise a suitable mechanism for sustainable use of timber in a way that does not affect the forests of the area adversely.

The SLC shall approve the name of wood-based industries which may be considered for grant of fresh license or enhancement of the existing licensed capacity in case the SLC is satisfied that timber is available legally for the said new Wood Based Industries (such as Trees outside the forest, Forests etc.). It further states that SLC shall ensure that the amount lying with the respective State Forest Departments (recovered from Wood-Based Industries) is utilized for the purpose of afforestation only. The SLC shall examine and make appropriate recommendations or any other matter referred to the State Government to the Ministry of Environment, Forest, and Climate Change.

It mentions that ‘the establishments should be beyond 10 km limit from the forest area or can be established in an Industrial Estate or a Municipal area, irrespective of the aerial distance from the boundary of nearest notified forest or protected area, though the rules may be different in North-Eastern states or Uttarakhand.

It clearly mentions that “No license to a wood-based industry shall be granted or renewed without obtaining prior approval of the SLC. However, a SLC may delegate the power of renewal of license to a wood-based industry to the Divisional Forest officers of the concerned Forest Divisions.

What is most underlining change is coming in point no 6. It mentions “Following industries/processing plants not using round logs of domestic origin or operating without a band saw or re-saw or circular saw of more than thirty-centimeter diameter shall not require license”

1. Industries/processing plants which use sawn timber, cane, bamboo, reed, plywood, veneers or imported wood, procured from legitimate sources does not need a license.

2. Blockboard, MDF or similar wood-based products, procured from legitimate sources too does not need the license anymore.

3. Round log/timber from species declared as agroforestry/agricultural crops and/or exempted from the preview of the felling and transit regime in the concerned
state/UT, and procured from legitimate sources, However, SLC of the concerned State may allow installation of circular saw of diameter up to60 cm in such industries having specialized requirement.

Such industries shall be registered with the Forest Department of the concerned state/UT and shall be regulated, details of which are to be prescribed by the concerned state/UT.

It says that if any person is aggrieved by the orders so passed in the appeal, he may prefer an appropriate petition/application/appeal in the High Court having jurisdiction over the concerned State/UT. The notification mentions ‘those even who does not understand the plywood trade will also enter in plywood industries and it may disturb the price structure’.

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