Union Territory Of Ladakh Wood-Based Industries (Establishment And Regulation) Rules, 2023

[22nd March 2023]

Whereas, in compliance of directions contained in the Order dated 5 October 2015 of the Hon'ble Supreme Court of India in Writ Petition (Civil) No. 202 of 1995 in the matter of TN Godavarman Thirumulpad versus Union of India and others, the Ministry of Environment, Forest and Climate Change has issued Wood Based Industries (Establishment and Regulation) Guidelines, 2016; and whereas the States and Union territories are required to conform their rules according to the said Guidelines;

Now therefore, in exercise of powers conferred by section 76A of the Indian Forest Act, 1927 (Act 16 of 1927) read with S.O.3774 (E) dated 23.10.2020, the Lieutenant Governor of Union territory of Ladakh hereby makes the following rules; namely, -

Rule - 1. Short title and commencement.

(1)     These rules may be called the Union Territory of Ladakh Wood-based Industries (Establishment and Regulation) Rules, 2023.

(2)     They shall come into force from the date of publication in the Official Gazette.

Rule - 2. Definitions

(1)     In these rules, unless the context otherwise requires: -

(a)      "Act" means the Indian Forest Act, 1927 (Act 16 of 1927);

(b)      "Administration" means the Administration of Union territory of Ladakh.

(c)      Principal Chief Conservator of Forests/Chief Conservator of Forests"/ means the Principal Chief Conservator of Forests, UT of Ladakh/ Chief Conservator of Forests, Union territory of Ladakh/ The next Senior most officer in case there is no PCCF/CCF.

(d)      "Divisional Forest Officer" means the Divisional Forest Officer of the Territorial Division

(e)      "Form" means the forms appended to these rules;

(f)       License means the license issued under these rules;

(g)      Licensing Authority" means the Territorial Divisional Forest Officer concerned;

(h)     "Log" means a piece of wood in its natural form whether stripped of bark orsapwood or not and includes logs whose round surfaces have been made flat by any means to form wood of roughly rectangular cross-section and having mid girth or perimeter of forty-two centimetre or more under bark;

(i)       "Municipal Area" means the area falling within the territorial limits of Municipal Committee, Municipal Council, Municipal Corporation, as the case may be;

(j)       "Owner" means the person(s) in whose name(s) the license or certificate of registration has been granted under these rules; provided that in case of a partnership or a limited company, the ownership of license or certificate of registration shall be inthe name of the concern with nominated person(s) or managing partner(s) as person(s) responsible for day-to-day affairs;

(k)      "Registration "means the certificate of registration issued under these rules;

(l)       S means plants and machinery in a fixed structure or enclosure, for conversion of logs into sawn timber;

(m)    "Sawn timber" means beams, scantlings, planks, battens, and such other productobtained from sawing of a log;

(n)     "Section" means section of the Act;

(o)      "Timber" means timber as defined in the Act;

(p)      "Veneer Mill, Plywood Mill, Particle Board Mill and FiberboardMill" means plants and machinery and the premises in which or in any part thereof, conversion into required size, slicing, peeling, chipping, fashioning, or seasoning of timber/ wood, including preservation and treatment thereof either by mechanical or chemical process with the aid of electrical or mechanical power or manually is carried put;

(q)      "Wood-based Industry" means any industry which processes wood as its raw material and includes sawmill, veneer/ plywood/ particle board/ Fiberboardmill, units manufacturing katha or kutch, wood oil, etc., but will not include furniture unit and wooden handicrafts unit as defined in rule 2(e) and 2(t); and

(r)      "Wooden handicrafts unit" means a unit that deals in making of goods using hand tools, and includes traditional domestic carpentry, and making of furniture, handicrafts, small wooden toys, and small joinery and sports goods, and which are not involved in sawing or resawing of logs or sawn timber using mechanical saw.

(2)     The words and expressions used in these rules, but not defined, shall have the same meanings as assigned to them in the Act.

Rule - 3. Constitution of the UT Level Committee

(1)     The Union Territory of Ladakh shall constitute a Union Territory Level Committee to perform the functions stipulated in these guidelines.

(2)     The Union Territory Level Committee shall consist of the following:

(3)     The Union Territory Level Committee (UTLC) may nominate any other officer working in territorial wing of the Forest Department not below the rank of DFO.

(4)     The Union Territory of Ladakh Level Committee shall meet at least once in three months.

(5)     The quorum of the Union Territory of Ladakh Level Committee meeting shall be at least fifty percent of permanent members.

(6)     UTLC will invite one representative of the industry nominated by the saw-mill association as a special invitee to each and every meeting of the Union Territory Level Committee.

Rule - 4. Powers and functions of the Union Territory Level Committee

The UT Level Committee shall:-

(i)       Assess the availability of timber for wood based industrial units in the UT every five years.

(ii)      Assess quantity of different raw material requirement for wood based industrial units which may be sustainable harvested from trees outside forest areas in the UT.

(iii)     Assess annual requirement of timber and other forest produce in the domestic markets in the UT.

(iv)    Maintain a data base of timber and other raw materials utilized by each wood based industrial unit permitted to establish and operate in the UT during each financial year.

(v)      Approve appropriate locations for setting up of wood based industrial units.

(vi)    Approve the name of wood based industrial units which may beconsidered for grant of fresh license or enhancement of the existing licensed capacity in case the committee is satisfied that timber is available legally for the said new Wood Based Industries (such as Trees outside forest, Forests etc.).

(vii)   The UT Level Committee will ensure that the amount lying with the respective Forest Department of union territory (recovered from Wood Based Industries) will be utilized for the purpose of afforestation only.

(viii)  Examine and make appropriate recommendations on any other matterreferred by the UT Administration or the Ministry of Environment, Forest and Climate Change.

Rule - 5. Assessment of the availability of timber for Wood Based Industrial Units

(1)     The quantity of timber likely to be available for utilization of Wood Based Industries of different types in a UT shall be assessed as by commissioning a study, preferably in collaboration with institutes/ universities of repute, once in five years. The study will take into account the following: -

(i)       The quantity of such raw material that may be sustainably harvested from the forest areas as per the working plans/working schemes/ management plans duly approved by the competent authorities.

(ii)      The quantity of such raw material that is available from the trees outside forest areas, including the private plantations, agro-forestry plantations and plantations raised on non-forest government lands etc.

(iii)     Net inter-state import of such timber; and

(iv)    Net international import of such timber.

Rule - 6. Estimated annual consumption of timber by wood-based industries

(1)     For the purpose of assessing the timber requirement of the saw mills, they may be divided into

(a)      Saw mills upto 10 HP (B) Saw mills between 10 and 20HP (c) Saw mills between 20 and 40 HP (d) Saw mills between 40 and 60HP € Saw mills above 60 HP. The annual requirement of round log for Saw mills of different capacities may be fixed by the committee based on the technical data or as per the formula given below:

(i)       Saw mills of 10 HP and below 540 CuM (base value)

(ii)      Saw mills between 10 to 20 HP: 810 CuM (1.5 time the base value)

(iii)     Saw mills between 20 to 40HP: 1080 CuM. (2 times of the base value)

(iv)    Saw mills between 40 to 60 HP: 1620 CuM. (3 times of the base value)

(v)      Saw mills above 60 HP :2160 CuM (4 times of the base value)

Rule - 7. Restrictions on establishment of wood-based industry and furniture unit

No person/ authority shall establish, expand installed capacity, or operate any wood-based industry including the existing units as defined in rule 2(s) without a license, or, furniture unit including the existing units as defined in rule 2(e) without a registration, as provided under and in accordance with rule 8 of these rules:

Provided that:

(i)       no furniture unit shall be installed or operated within 3 kilometers (aerial distance) from the boundary of nearby reserved forests, unless located within the boundaries of "Municipal Area" and/or "Industrial Estate" notified by the Government irrespective of distance from the nearby reserved forests

(ii)      no new wood-based industry shall be installed/ operated without consent to establish/ operate from Ladakh Pollution Control Committee

(iii)     The Administration of UT may, on the recommendations of a committee constituted for the purpose, restrict the maximum number of primary and secondary wood-based industries that may be installed in any given locality within a territorial Forest Division.

Exception- Nothing contained in aforesaid provisions

(i)       shall apply to the existing saw mills installed and operated by Forest Department of Union Territory of Ladakh.

Rule - 8. Issue of license

(1)     (i) Any person, seeking a license under these rules for wood-based industry shall make an application to the licensing authority in Form-I along with specified annexures.

(ii) Any person, seeking registration under these rules for furniture unit, shall make an application to the licensing authority in Form-2 along with specified annexures.

(iii) No license or registration will be required for wooden handicrafts unit.

(iv) The license or certificate of registration issued under these rules shall be non- transferable, except by inheritance.

(2)     The applicant shall pay a security deposit as given below and as revised by Administration of UT Of Ladakh from time to time in the form of National Savings Certificate in favour of the licensing authority to secure compliance to the provisions of Indian Forest Act, 1927 and rules made there under:

(3)     The License fee or other penalties imposed on wood-based industry should be deposited in the account of Union Territory Level Committee as may be indicated by the Licensing Authority.

(4)     On receipt of an application, the Licensing Authority shall issue a license in Form-3 for wood-based industry, or a certificate of registration in Form-4 for furniture unit., after obtaining prior approval of Union Territory Level Committee.

(5)     A license granted under these rules to a wood-based industry shall remain valid for five years from the date of such issuance or renewal of license.

(6)     The licensing authority may refuse issuance of the license or certificate of registration, as the case may be, for reasons to be recorded in writing and inform the applicant accordingly.

(7)     The licenses issued under the Saw Mills (Registration and Control) Rules, 1968, shall be deemed to be invalid. However, licenses issued under the Jammu and Kashmir Wood-based (Saw Mills, Veneer and Plywood) Industries (Registration and Regulation) Rules, 2012 shall continue to remain valid till they are due for renewal.

Rule - 9. Fee for grant of license

Every application shall be accompanied by fees as detailed below and as revised by the Administration of Union Territory of Ladakh from time to time:

Rule - 10. Renewal of License

(1)     Any person who has been granted license under these rules, may apply for renewal of the license in Form 5, within a period of three months before the expiry of the period for which license was granted to him, along with prescribed documents and such fee as may be prescribed by the Ladakh Administration from time to time.

(2)     On receipt of an application under sub-rule (1), On receipt of an application, the Licensing Authority shall grant a Renewal, within a period of three months, for further period of five years.

(3)     In case, the renewal of license is refused, the licensing authority shall provide an opportunity of being heard to the person(s) concerned and record the reasons for refusing such renewal.

(4)     In case, an application for renewal of the license for wood-based industry is neither renewed nor refused by the licensing authority within three months as provided in sub-rule (2) above, the license shall be deemed to have been renewed for one year from the date of receipt of application of renewal by the licensing authority. However, for subsequent years, deemed renewal shall not be valid.

Rule - 11. Duplicate license

If a license or registration certificate issued under these rules is defaced, lost, destroyed or otherwise rendered illegible, the licensing authority shall, on receipt of application made in Form 6 for issuance of duplicate license, along with such feeas may be specified by the Ladakh Administration from time to time, issue a duplicate license as the case may be.

Rule - 12. Directions of licensing authority

The licensing authority may, from time to time, issue such directions to the licensee of the primary/secondary wood-based industry as it deems necessary, with regard to any matter directly connected to the business of the industry, and the same shall be binding on the licensee.

Rule - 13. Maintenance of record

Every owner shall maintain proper record of the receipt and disposal of timber in Form-7 for wood-based industry and in Form-8 for furniture unit, and, also furnish annual returns in the month of January for the previous calendar year in such form and manner as may be directed by the licensing authority, from time to time.

(1)     The records should be made available at any time to all inspecting officers along with permits/ invoices in original within the saw mill/wood based industry premises.

(2)     A yearly abstract of receipts of disposal with the balance of unconverted stock on hand shall be submitted before the 10th of the January next to the Licensing Authority concerned failing which the licensee shall be liable to pay a sum of Rs.5000/- for every month of default Variations of 5% in round timber in figures in between the register and ground stock in measurements is permissible and variation in excess of the above should be explained.

(3)     All the timber, sawn sizes and wood waste shall be properly stacked in the saw mil premises.

(4)     Timber for sawing and conversion shall not be accepted unless-

(a)      It bears property marks; and

(b)      It is covered by a transit permit or such other document indicating the origin of the timber, and for this purpose all timber lying within and adjacent to saw mil premises up to a distance of five meters shall be taken into consideration:

Provided that the license holder shall immediately report to the nearest Forest Officer the timber without property marks, and the timber not claimed by others.

Rule - 14. Relocation of any wood based industry

 

(1)     On receipt of an application for such relocation of wood based industry, the licensing authority shall make such enquiry as he deems fit, and after satisfying himself, whether or not there would be any objection to grant permission for relocation of a wood based industry applied for, having regard to safeguard the timber in any reserved, protected, proposed, or private forest, number of wood based industries existing in the area may submit to the Principal Chief Conservator of Forests, through the Chief conservator of Forest with remarks, to place before the Union Territory Level Committee.

(2)     No relocation of wood based industries shall be allowed into the area prohibited under these rules. However, shifting will be allowed from within the 5 KMs, of forest area tooutside as approved by the UT Level Committee.

(3)     No relocation of Wood Based Industry located within 5 KMs, of forest area shall be allowed within 5 KMs, radius of the forest area.

(4)     Total number of machines used before relocation (for example number of the horizontal saws, vertical saws, peelers, slicer, and chipper) shall not be increased.

(5)     The annual capacity of saw mill/or saw mill inside the wood based industry for conversion of timber shall not be increased.

(6)     The machine type should not be changed from one type to another. For example wood based industry having the license for band saw cannot change to peelers or slicer etc., and vice-versa.

(7)     Multiple licenses should not be given from a single license by splitting the license. For example, if the wood based industry is having a license for 2 horizontal saws, it cannot be relocated to two different places with 1 horizontal saw each.

(8)     The wood based industry machinery and premises shall not be leased to any person. without intimation to the Licensing Authority. For any acts of omission of lessee, license holder shall be held responsible.

Rule - 15. Power to inspect, search and seize etc.

(1)     Any Forest Officer not below the rank of Range Officer, or an officer authorized by the licensing authority in this behalf, may with a view to securing compliance of these rules:

(i)       require the licensee to furnish such return, information or statistics, or to produce such accounts, books and documents relating to his business for inspection/verification as may be specified; and

(ii)      enter and search, or authorize any person to enter and search any "wood based industry/Furniture unit" premises, and seize or authorize the seizure of any raw material or any finished and/or semi-finished products, together with all tools, equipment or machines, in respect of which there are reasons to believe that contravention of the Act, or of these rules, or conditions of a license/registration issued thereunder has been/is being or is about to be committed. The property so seized shall be liable to confiscation under the Act.

(2)     Any person associated with the working of the "wood-based industry" referred to in sub- rule (1) and present at the time of inspection/search, shall afford all reasonable facilities for entry and search of the premises, otherwise it will amount to commission of an offence under these rules and will be dealt with under rule 16.

Rule - 16. Cancellation or suspension of license

Notwithstanding anything contained in these rules, the licensing authority, where it has reasons to believe that a licensee is operating the wood-based industry in contravention of the provisions of these rules or conditions of the license, or the licensee is indulging in activities prejudicial to the interest of forest conservancy or is involved in any forest offence, or is found in possession of illicit timber or any other forest produce, or has committed any offence under law may, after giving the licensee reasonable opportunity of being heard, cancel the license granted under these rules.

Provided that where such hearing or perusal of record or site inspection involves time, the licensing authority may, pending decision, on cancellation of license, suspend the license up toa maximum of 90 days by passing a reasoned order. A copy of the order suspending or cancelling the license shall be communicated to the licensee.

Rule - 17. Appeal against the refusal, suspension or cancellation of license or refusal to renew license

(1)     Any person, who has been refused the license/registration under rule8, or renewal of license under rule 10, or whose license has been suspended or cancelled under rule 16, may, within a period of thirty days from the date of receipt of information of such refusal or suspension or cancellation of the license/registration, as the case may be, appeal to the Chief Conservator of Forests concerned.

(2)     On receipt of the appeal filed under sub-rule (1), the Chief Conservator of Forests shall decide the same within a period of 60 days, after giving the concerned person reasonable opportunity of being heard and after perusal of all relevant record.

(3)     The decision of the Chief Conservator of Foreston such appeal shall be final.

Rule - 18. Electric connection

Notwithstanding anything contained in any enactment relating to electricity for the time being in force, no electric energy shall be consumed and no electric connection shall be installed for the purpose of a wood based unit, unless such wood based unit is duly licensed or deemed to be licensed in accordance with the provisions of these rules, and such connection shall be continued so long as the wood based unit operates under a valid license granted or deemed to be granted under these rules. A communication from the Licensing Authority in this regard shall be enough authority for the concerned Power Distribution Department of Union territory of Ladakh to comply with the provisions.

Rule - 19. Application of other laws not barred

The provisions of these rules shall be in addition to, and not in derogation of, any other law for the time being in force, save as otherwise expressly provided in the Act.

 

Form-I

[See Rule- 8(1)(i)]

 

To

The Licensing Authority,

Self-attested

Photograph of

applicant

Sub: - Application for grant of license for wood-based industry

 

16. Declaration and undertaking:

I/ we have carefully read the Union Territory of Ladakh Wood-based Industries (Establishment and Regulation) Rules, 2023, and the conditions associated with the license as mentioned in Form-3 to the said rules and I/we agree to abide by these.

Signature of Applicant Name (capital letters __________________

Address

Place:

Date:

 

Form- 2

See Rule 8(1)(ii)

Photograph of

applicant

To

The Licensing Authority,

___________________________

__________________________

Sub: - Application for registration of furniture unit.

16. Declaration and undertaking:

I/ we have carefully read the J Union Territory of Ladakh Wood-based Industries (Establishment and Regulation) Rules, 2023 and the conditions associated with the registration as mentioned in Form-4 to the said rules and I/we agree to abide by these,

Signature of Applicant

Name (capital letters)___________________

Address ___________________________

Place:

Date:

 

Form-3

[See Rule 8 (4)]

 

Photograph

of applicant

License to establish/ renew /expand/relocate/operate Wood-based Industry License

No: Date:

License is hereby granted to Mr./ Ms. / M/S son/ daughter/ wife of resident of(hereinafter called the - owner) to establish wood-based industry () located at (full address) with following machinery: Details of Machinery

This license is subject to the provisions contained in the Indian Forest Act 1927, as amended from time to time and the rules made thereunder and on the following conditions, namely:-

(1)     The owner shall establish/ operate /expand/relocate his/her wood-based industry at(full address)

(2)     The owner shall not alter the location of the wood-based industry without obtaining prior permission, in writing, of the licensing authority.

(3)     The owner shall ensure that:

The site of the Sawmill including the Depot/Yard for storage of round, sawn timber and waste wood is properly fenced/has boundary wall erected with proper gates.

* All logs, sawn timber and wood waste are properly stacked according to the instructions that may be issued from time to time by the concerned Divisional Forest Officer.

(4)     The owner shall maintain correct and true accounts in respect of sawing of timber in such form and manner as may be prescribed by the licensing authority from time to time.

(5)     The owner shall submit monthly and annual returns of timber received, sawn and disposed to the Divisional Forest Officer of the area on Form 7 or as may be specified by the licensing authority.

(6)     The owner shall operate the unit during the daytime i.e., after sunrise and before sunset

(7)     The owner shall comply with all the terms and conditions mentioned in the rules. The owner shall not install/operate any machine, or part thereof; for which the license has not been issued. If the owner is found to have installed/operated any machine for which license is not issued, the license issued to the unit shall be deemed to have been withdrawn.

(8)     The license is valid up to

Signature of the Licensing Authority (with seal)

Date:-

(9)     The license is renewed:

 

Form-4

[See Rule 8(4)]

Photograph

of applicant

Certificate of registration to establish/expand/relocate/operate Furniture Unit Registration No: Date:

Permission is hereby granted to Mr./ Ms. / M/S son/ daughter/ wife of resident of (hereinafter called the owner) to establish furniture unit) located at (full address) with

following machinery:

Details of Machinery

This registration is subject to the provisions contained in the Indian Forest Act, 1927, as amended from time to time and the rules made thereunder and on the following conditions, namely: -

(1)     The owner shall establish/ operate /expand/relocate his/her furniture at (full address)

(2)     The owner shall not alter the location of the furniture unit without obtaining prior permission, in writing, of the licensing authority.

(3)     The owner shall ensure that:

(a)      The site of the furniture unit including the depot/yard for storage of raw material and waste wood is properly fenced/has boundary wall erected with proper gates.

(b)      Raw material and wood waste are properly stacked according to the instructions that may be issued from time to time by the concerned Divisional Forest Officer.

(4)     The owner shall maintain correct and true accounts in respect of sawing of timber in such form and manner as may be prescribed by the licensing authority from time to time.

(5)     The owner shall submit monthly and annual returns of timber received, processed, and disposed to the Divisional Forest Officer of the area on Form-8 or as may be specified by the licensing authority.

(6)     The owner shall comply with all the terms and conditions mentioned in the rules. The owner shall not install/operate any machine, or part thereof, for which the certificate of registration has not been issued. If the owner is found to have installed/operated any machine for which the certificate of registration is not issued, the registration of the unit shall be deemed to have been cancelled.

Signature of the Licensing Authority (with seal)

Date:

 

Form-5

(See Rule-10)

Photograph

of applicant

To

The Licensing Authority,

Subject: Application for renewal of license of wood-based industry.

 

18. Declaration and undertaking:

I/We have carefully read the Union Territory of Ladakh Wood-based Industries (Establishment and Regulation) Rules, 2023, and the conditions of the license mentioned in Form-3 to the said rules, and I/we agree to abide by the same.

Signature of Applicant

Name (capital letters)

Address:

Place:

Date:

 

Form- 6

(See Rule-11)

 

Photograph

of applicant

To

____________________________

_____________________________

Subject: Application for issue of the duplicate license/ certificate of registration for the installed capacity of the wood-based industry/ furniture unit.

 

19. Declaration:

I/We have carefully read the Union Territory of Ladakh Wood-based Industries (Establishment and Regulation) Rules, 2023, and the conditions of the license/ certificate of registration mentioned in Form3/Form-4 to the said rules and I/we agree to abide by the same.

Signature of Applicant

Name (capital letters)_________________________

Address: __________________________________

Place:__________________________

Date:_

 

Form – 7

(See Rule-13)

Record of Receipt and disposal of timber for wood-based industry

 

(i)       Record of receipt of timber:

(a)      Date of receipt

(b)      Name and full address of the person from whom received

(c)      Species Of timber

(d)      Number of logs, size, and volume (cubic feet) or weight (quintals)

(e)      Particulars of GST invoice

(f)       Transit permit (Form-25) number and date/ e-way bill particulars

(g)      Remarks

(ii)      Record of disposal of timber/manufactured goods:

(a)      Date of removal of timber /manufactured goods from depot

(b)      Name and full address of the person to whom sold or handed over

(c)      Particulars of GST sale invoice

(d)      Species of timber

(e)      Product(s)

(f)       Number of logs, size and volume (cubic feet) or weight (quintals), as the case may be

(g)      Transit permit (Form-25) number and date/ e-way bill particulars remarks.

(iii)     Any other information desired by the licensing authority in prescribed format.

 

Form-8

(See Rule-13)

Record of Receipt and disposal of timber for furniture unit

(i)       Record of receipt of timber:

(a)      Date of receipt

(b)      Name and full address of the person from whom received

(c)      Species of timber

(d)      Number of logs, size, and volume (cubic feet) or weight (quintals)

(e)      Particulars of GST invoice

(f)       Transit permit (Form-25) number and date/ e-way bill particulars

(g)      Remarks

(ii)      Record of disposal of timber/manufactured goods:

(a)      Date of removal of timber [manufactured goods from depot

(b)      Name and full address of the person to whom sold or handed over

(c)      Particulars of GST sale invoice

(d)      Species of timber

(e)      Product(s)

(f)       Number of logs, size and volume (cubic feet) or weight (quintals), as the case may be

(g)      Remarks.

(iii)     Any other information desired by the licensing authority in prescribed format.