![]() Financial Daily from THE HINDU group of publications Tuesday, Apr 29, 2003 |
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Industry & Economy
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Leather Due to strict pollution norms TN tannery units mull shifting base to AP Our Bureau
CHENNAI, April 28 THE Tamil Nadu-based tanners are examining the viability of relocating their units to Andhra Pradesh following differences with the State government over pollution norms. According to a press release issued by The All-India Skin and Hide Tanners and Merchants Association (Aishtma), the apex industry association, Mr G. Kamal V. Rao, Vice-Chairman/Managing Director of Leather Industries Development Corporation of Andhra Pradesh (Lidcap), made a presentation on the schemes offered by the Andhra Pradesh Government to the leather industry in Chennai last week. The presentation was made at the invitation of the association. Industry sources said that the tanners' decision to examine the feasibility of a shift to Andhra Pradesh could be traced to the Tamil Nadu Pollution Control Board's (TNPCB) directive on the incidence of Total Dissolved Solvents (TDS). The norm pertains to the acceptable level of salt content in the water that flows out of the leather tanning process (treated effluent of the tannery). The Association members claim the TDS norm is prevalent only in Tamil Nadu. The TNPCB could not be reached for comment. To offset the current level of salt content in the water, the TNPCB wants tanners to establish reverse osmosis plants. Industry sources said that the same is not viable for a majority of tanning units as the cost of the plant would be Rs 3 crore at the least. The immediate trigger for the invitation to Lidcap to make a presentation was a show-cause notice issued to tanners in Ranipet last month, said industry sources. The notice required, among other things, an undertaking from tanners that a reverse osmosis plant would be established. An association member suggested that the show-cause notice is unwarranted when institutes such as Central Leather Research Institute (CLRI) are working on a cost effective solution to the problem. Association members at the presentation by Lidcap said that Andhra Pradesh has offered incentives to Tamil Nadu tanners to shift location by promising infrastructural support and partial exemption and subsidies on stamp duty and capital investment respectively. The Aishtma press release indicated that Lidcap had promised to present details of the incentives offered in about two months.
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