Supreme Court interim order against govt decision

KATHMANDU, AUG 30 -

The Supreme Court on Wednesday issued an interim order against the government’s recent decision making laminated bags mandatory for cement manufacturers.

Responding to the writ petition of Narendra Dahal, a representative from Agni Cement, the Court imposed the temporary ban against the implementation of the government’s decision, terming the move illegal and impractical.

“No industries have been established in the country for the production of laminated packs so far. In this pretext, the government’s decision is impractical and illegal,” reads the court verdict. It also states that giving a 91-day deadline for cement manufacturers to comply with the rule is unlawful, especially when it takes about one-and-a-half years to establish an industry for production of laminated sacks in the country.

Publishing a notice in the Nepal Gazette on May 28, the government had announced the new rule, directing the cement producers to switch their packing system from existing woven sacks to the laminated one. The cement producers have been opposing the government decision, arguing that it was introduced unilaterally without any consultation with the stakeholders.

The apex court also said that the notice, published with an intention to make the provision compulsory, hints at the financial interest and anomalies from the side of concerned ministers of the government. “The case also suggests the intension of compelling foreign investors to make their capital flight,” further reads the decision.

Amid mounting pressure, Industry Minister Anil Kumar Jha had said on Monday that if the cement producers agreed to switch to laminated bags to package cement within two years, they will be allowed to continue using woven sacks during that period.

Cement manufacturers previously had asked the government to make the system optional or defer the decision for at least three years. They had also warned of halting the production if the government had not heed their demands.

The cement manufacturers have hailed the Supreme Court’s decision saying that it has provided them conducive environment to continue with their business.

“The decision has brought a great relief to us. We can now continue our production and supply without any fear,” said Atmaram Murarka, the president of Cement Producers’ Association. He also said that the cement makers now have enough time to prepare themselves to switch over to the laminated package system.

“Despite the government’s controversial decision, the Court has understood the plight of the country’s industrialists,” he said.

Director of Jagdamba Cement Sahil Agrawal, however, claimed that the court’s decision will make no difference at present.

“Sooner or later, we need to be environment conscious and adopt this technology,” he said.

Shankar Group, which has been producing Jagdamba Cement, insists that the cement producers should abide by the government’s decision and follow its direction. “Even if the government backtracks from its decision, we will bring the cement in laminated packs,” he said, claiming that the group has already made an additional investment of Rs 700 million for the purpose.

Source: The Kathmandu Post