Ref.No.28A/12/15

Dated 31.12.2007

From:
            President,
            All India Brick & Tile Manufacturers Federation,
            Office: Zone VI-A, 3rd Floor,
            India Habitat Centre, Lodhi Road,
            New Delhi-03

To,
            The Secretary,
            Ministry of Coal,
            Shashtri Bhavan,
            New Delhi.

Sub:- Representation to reconsider the New Coal Distribution Policy issued by OM No. 23011/4/2007 CPD Govt. Of India, Ministry of Coal, New Delhi Dated 18.10.2007 In the light of the directions of Hon’ble Supreme Court in the Case of Ashoka Smokeless Coal India Pvt. Ltd. & Ors. Vs. Union of India.

Sir,
            The present representation is being made by the Apex Body of the All India Brick-kiln Operators who represent about 35,000 Chimney brick-kilns and about 15,000 Small Brick-kiln Operators, who are the genuine consumers and whose association/federation called AIBTMF is well identified but a sufferer of the aforesaid New Coal Distribution Policy as they have been completely ignored in the New Coal Distribution Policy. These Brick-kilns are basic industries and ought to have been treated as core sector industries like Cement Industries. The Coal requirement of our brick-kilns operators is about 25 Million Tones of Coal, which is much greater as compare to 8 Million Tones of Coal required by the cement industries. Our Brick-kilns operators are ready for similar kind of Fuel Supply Agreement (In short FSA) and any other formalities like other core industries.  The  Members  of  the Federation are exploited through Central Agencies like NCCF and NSIC and other State Agencies who have been considered as Supply Agency by the Government for coal distribution whereas the same arrangement could be made with All India Brick & Tile Manufacturers Federation (In short AIBTMF). It is worth mentioning that in the past also in the year 1998-99, 2000-01 and 2003-04, the coal India and its subsidiaries fully recognized the AIBTMF and its State Units like U.P. INS to be appointed the representative of these All India Bricks and Tile Manufacturers for coal supply at par with cement agency and other core industries but this time this most beneficial arrangement is being deprived to the federation.  In the same back ground the AIBTMF once moved the Delhi High Court by way of Civil Writ Petition No. 6754 of 2002 seeking mandamus to treat the brick manufacturing industry under the core sector industries and it is on notice the counsel for government of India conceded to accept the prayer of the AIBTMF for inclusion in the core sector, the writ petition was disposed of. The coal is the basic raw materials for manufacturing bricks and every year the brick Industry has to run from pillar to post for allotment of their coal. In the present new policy all others industries are getting regular coal supply in accordance with their demand under linkage scheme. It is needless to mention that the brick industry is the largest consumer of coal, the requisite temperature for burning bricks in the brick-kiln cannot be maintained with inferior quality of coal which is bound to happen if the AIBTMF is compelled to get supply from Central Government agencies like NCCF and NSIC. The brick kiln industries has also to maintain the standard of NEERI under the direct supervision of Hon’ble Supreme Court in Air pollution matter popularly known as “Taj” matter. The present new policy again ignores the AIBTMF and has provided for bringing of coals by State Agencies from the coal India and its subsidiary and it will be a longer procedure giving him importance to the mediators. The federation has bitter experience of 2 years with NCCF and UP Essential Commodities Corporations and UP Small Scale Industries Corporation, which did not cater the need of the federation and its members \ and the same fate will meet this time with other government agencies if new coal policy is allowed to be enforced as it is. The profiteering of the Government Agencies would increase at the cost of the brick kilns. The federation works on “No Profit and No Loss” basis and it will be great injustice if the coal is not directly given to the federation for onwards transact to the brick kilns. Even the Hon’ble Supreme Court has recognized the Association of particular trade like the AIBTMF for the brick kilns to be fully qualified for direct supply of coal. It is to be noted from October the burning season has started, but there is shortage of supply of coal to the brick kilns, which are suffering, everyday as in past. The government has failed to maintain transparency. The federation is ready to abide by any of the terms and conditions such as security arrangement through bank guarantee jointly and severally from the brick kilns and their authorized representatives. The perusal of the policy in question makes it very clear that the central government has failed to properly discharge the public duty. There is earnest need to modify the new coal distribution policy dated 18.10.2007 by accommodating the AIBTMF to take care of Brick Industry. In the past also in the chairmanship of the secretary, Ministry of Coal, the federation had given the memorandum before the Coal Committee requesting to make such arrangement for coal distribution so that transparency could be maintained and these arrangement were proposed as follows:-
 “(a)     The advertisement be issued nationwide inviting the demand of brick kilns.
  (b)    The network of the representatives of brick manufacturing societies state wise is made and the coal is supplied to them directly so that they get the coal without any difficulty.
  (c)    There should be a joint monitoring committee consisting of AIBTMF/Coal India/Coal Ministry to monitor the arrangements.”

In the new coal policy the mediators only will get importance and it will be a longer procedure, the coal, which is being made available to government agencies, is being misused by the mediators. It is needless to mention that Hon’ble Supreme Court in the decision of Ashoka Smokeless Coal Industries Pvt. Ltd. & Ors. Vs. Union of India decided on 1.12.2006 has laid down that strict mechanism be evolved to find out genuine consumers and those who are violating norms be strictly dealt with but should not be allowed to suffer for want of coal. The mechanism of creating state agency as a mediator instead of giving it directly to the brick kilns industry is arbitrary and ignores the interest of brick industries. In support of the genuiness the federation had filed the documents before the Coal Ministry and in the light of the directions of Hon’ble Supreme Court the coal companies or the Coal Ministry were duty bound to scrutinize the genuiness of the brick industry and the federation. The AIBTMF is ready to enter into FSA for the purpose of collecting the coal and supplying the same to the brick kilns owners only. The AIBTMF has giving such intention in past also to North East Coal Field and other subsidiary company of Coal India Ltd. Kindly give the appropriate directions in the lights of the judgment of the Hon’ble Supreme Court, otherwise the AIBTMF has no option to approach before Hon’ble Supreme Court for the directions.

            The AIBTMF is making a request to appoint and authorize AIBTMF for distribution of coal by retaining brick-kilns Industry in the core sector and this arrangement only would keep the small brick kilns industry alive otherwise the collective efforts of the federation and the government would render nugatory. In the first year 5 million tons coal be provided otherwise it shall be great injustice with the brick industry.

Thanking you,