The Punjab Saw Mills Rules

(1) These rules may be called The Punjab Regulation of Wood Based Industries Rules, 2019. (2) They shall extend to the whole of the State of Punjab. (3) They shall come into force on and with effect from the date of their publication in the Official Gazette.

(1) In these rules, unless the context otherwise requires, (a) 'Act' means the Indian Forest Act, 1927 (Central Act No. 16 of 1927); (b) 'Charcoal' means a form of carbon derived from incomplete combustion of wood derived from a tree; (c) 'Divisional Forest Officer' means the incharge of any of the Territorial Forest Divisions; (d) 'Form' means the Form appended to these rules; (e) 'Industrial Estate/Park' means an Industrial area or Estate or Park set up by the Government or Private Agency for establishment or promotion of Industries after seeking approval of its layout plan from the competent authority; (f) 'License' means the license issued to wood based units under these rules; (g) 'Principal Chief Conservator of Forests' means a Forest officer of the rank of Principal Chief Conservator of Forests (Head of Forest Force) in the State; (h) 'Primary units' include units which use or store unprocessed wood such as saw mills, peelers, chipping units (having drum chipper which can process round logs) and shall also include the units which are categorised as primary units by the State Level Committee from time to time; (i) 'Registration' means the registration of wood based units under these rules; (j) 'Round log' means a piece of wood in its natural form, having mid girth of thirty centimetres or more over bark and it will include such round log even after its bark has been removed or its surface has been dressed; (k) 'Saw Mill' means plants and machinery in a fixed structure or enclosure and the premises in which or in any part thereof, for conversion of round logs into sawn timber; (l) 'Sawn Timber' means beams, scantlings, planks, battons and such other products obtained from sawing of a round log but does not include finished products; (m) 'Secondary units' meansthose units which take wood from primary units for further storage and processing such as mills that produce Medium Density Fibreboard, Particle Board, Block Board, Paper Pulp, Rayon, plywood pasting units without peeling, Katha Bhatties using boilers conforming to Indian Boiler Regulations (IBR) etc. and shall also include the units which are categorised as secondary units by the State Level Committee from time to time; (n) 'State Government' means, the Government of the State of Punjab in the Department of Forests and Wildlife Preservation; (o) 'State Level Committee (SLC)' means a Committee constituted underrule 3 of these rules; (p) 'Veneer Mill’ means plants and machinery and the premises in which or in any part thereof, conversion into required size, slicing, peeling, fashioning of round logs is undertaken; (q) 'Wood Based Industry' also referred to as WBI means any industry, which processes wood as its raw material (Sawmills/veneer units/ plywood units/ pulp units/katha units/charcoal making unit/transit depots/timber depots/furniture or any other type of wood based units converting round logs); and (r) 'Year' means a financial year. (2) The words and expressions used but not defined in these rules but defined in the Act or the relevant local Forest Act as applicable in the State of Punjab and the rules framed thereunder, shall have the meaning assigned to them in such Act or rules.

(1)A State Level Committee (SLC) shall be constituted by the State Government with Principal Chief Conservator of Forests (HoFF) as its Chairman. The State Level Committee shall constitute as following : a) Principal Chief Conservator of Forests/Head of Forest Department: Chairperson b) A representative of the Regional Office of the Ministry of Environment, Forest and Climate Change: Member c) A representative of the State Forest Department not below the rank of a Conservator of Forests dealing with preparation of Working Plans/Working Schemes: Member d) Director/Additional Director of Department of Industries: Member e) Representative of the each Autonomous District Council constituted in accordance with the provisions of the Sixth Schedule to the Constitution, in case any such Council exists in the State: Member f) Representative of the Forest Development Corporation, in case any such Corporation exists in the state.: Member g) An officer not below the rank of Conservator of Forests working in the Forest Head Quarters: Secretary (2) The State Level Committee may co-opt any number of other officers working in the Department of Forests and Wildlife Preservation, Department of Agriculture, Department of Revenue and Department of Industries and Commerce. (3) Till the constitution of the State Level Committee under these rules, the earlier State Level Committee shall continue to function and decisions taken by it shall be deemed to have been taken by the State Level Committee constituted under these rules. (4) The State Level Committee shall meet at least once in three months. (5) The quorum of the State Level Committee meeting shall be at least fifty percent of the permanent members. (6) The State Level Committee shall invite one representative of the industry nominated by the Wood Based Industries Association as a special invitee to each and every meeting of the State Level Committee.

Following shall be the powers and functions of the State Level Committee, namely:- (i) To assess the availability of timber in the State by way of appropriate study on demand and supply as and when it decides. State Level Committee shall devise a suitable mechanism for sustainable use of timber in a way that does not affect the forests in the State adversely. (ii) To grant fresh license or registration certificate or enhancement of the existing licensed capacity or transfer of units or change of ownership or any other issue pertaining to license or registration, in case the State Level Committee is satisfied that wood is available from trees outside forests as well as in forests, for the said Wood Based Industries. (iii) To examine and make appropriate recommendations to the State Government on issues relating to Wood Based Industries. (iv) To define or list out the agro-forestry species in the State from time to time. (v) To determine one-time payment for grant of license or registration, license fee, registration fee and any other fee as may be deemed fit from time to time. (vi) To modify any Form appended to these rules or prescribe new Form, if and when needed for the purpose of monitoring and regulation of licensed or registered units. (vii) To work out measures to improve transparency, use of technology, capturing and better handling of information and create a portal to provide a platform on which information can be uploaded and utilised. (viii) To ensure that the amount recovered from Wood Based Industries and lying with the Department of Forests and Wildlife Preservation is utilized for the purpose of afforestation and other ancillary purposes to realise the aims and objects of these rules. (ix) To approve the Annual Plan of Operations for afforestation submitted by Territorial Divisional Forest Officers for utilization of the amount of one-time payment realized from the Wood Based Industries and lying with the Department of Forests and Wildlife Preservation. (x) Such other powers and functions as may be entrusted by the State Government from time to time.

For the purpose of assessing the wood requirement of the Saw mills, the annual requirement of round wood for Saw mills of different capacities may be fixed by the State Level Committee based on the criteria approved by the Central Empowered Committee (Constituted by the Hon’ble Supreme Court of India in Writ Petition Nos. 202 of 1995 and 171 of 1996). For other Wood Based Industries, the consumption of timber would be taken based on the Government of India Guidelines of 2016 or based on any scientific/technical study to the satisfaction of the State Level Committee.

(1) No new Wood Based Industry shall be granted licence within one kilometre aerial distance from Government Forests notified as Reserve Forests, Protected Areas, Protected Forests or unclassed forests but not the strips along roads, canals, drains, bandhs, rails and escapes notified as Protected Forests. (2) Wood Based Industry can be set up within a Notified Industrial Estate/Park or a municipal area irrespective of the aerial distance as mentioned in sub-rule (1). (3) The restriction imposed in sub rule (1) shall be applicable to only those units which require license. (4) Already existing units which are duly licensed shall not be required to shift their location.

(1) No license to a Wood Based Industry shall be granted or renewed without obtaining prior approval of State Level Committee. However, State Level Committee may delegate the power of renewal of license to a Wood Based Industry to the Divisional Forest Officer of the concerned Division in which the Wood Based Industry is located. (2) All Wood Based Industries are required to be licensed or registered under these rules. (3) No person shall establish, expand the installed capacity, shift location or operate Wood Based Industries, including the existing unit, unless a license or registration certificate is previously obtained by him in accordance with these rules. (4) Following Industries or Processing units shall not require license under these rules, namely :- (i) Industries or processing units not operating with a band saw or process already sawn wood; (ii) Industries or processing units operating with a circular saw upto thirty centimeter diameter; (iii) Industries having specialized requirement (as decided by the State Level Committee) and using circular-saw upto sixty centimeter diameter; (iv) Industries or Processing units not using round logs of domestic origin i.e. using imported wood or timber from outside the country irrespective of size and type of saw. However, such Industries or processing units shallbe required to provide the requisite documentation regarding this as may be specified by the State Level Committee; and (v) Industries or processing units using round logs of the species notified as agriculture or agroforestry produce and/or exempted from the regime of felling and transit regulations,irrespective of size and type of saw. (5) All Industries or processing units mentioned in sub-rule (4) which have been exempted from licensing shall, however, be required to get themselves registered with the Department of Forests and Wildlife Preservation under rule 10 of these rules and shall also have to establish the source of raw material for their industry. Irrespective of the exemptions listed in sub-rule (4), all existing units shall also be required to register themselves with the Department of Forests and Wildlife Preservation within a period of six months from the date of coming into force of these rules. If any unit fails to get itself registered, such unit shall be deemed to be violating these rules and shall, hence, be liable for action. (6) Transfer of licence or registration certificate on sale/succession etc. shall be done only with the prior approval of State Level Committee. (7) The Wood Based Industry shall have to be set up within six months from the date of grant of license or registration certificate, as the case may be, failing which the license or registration certificate, as the case may be, may be extended; or revoked by the Divisional Forest Officer after three months' notice under intimation to the State Level Committee : Provided that in case it is extended, not more than three months' extension shall be granted by the Divisional Forests Officer. (8) All Wood Based Industries shall follow all environmental and other regulations laid down by the Punjab Pollution Control Board, Central Pollution Control Board and Ministry of Environment, Forest and Climate Change, as applicable to these industries under the Environment (Protection) Act, 1986 (Central Act No. 29 of 1986) and other Central and State Acts.

(1) Any person or Wood Based Industry seeking a licence under these rules, shall make an application in Form-I to the Deputy Commissioner of the concerned District alongwith a copy to the General Manager, District Industry Centre (DIC) for No Objection Certificate and a copy to the concerned Divisional Forest Officer, specifying that the applicant wants a license. (2) A permanent District Level Committee (DLC) for Wood Based Industries shall be constituted by the concerned Deputy Commissioner under his chairmanship with General Manager, District Industry Centre as Nodal Officer-cum-Member Secretary and officers-in-charge of the concerned department sat the District Level as members. The concerned Board/departments shall be the Punjab Pollution Control Board, Department of Industries and Commerce, Department of Housing and Urban Development, Department of Local Government, Department of Agriculture, Department of Labour, Department ofPWD (B&R),Department of Police or any other authority with the prior approval of the concerned Deputy Commissioner. (3) It shall be the responsibility of the General Manager, District Industry Centre to convene the meeting of the District Level Committee and obtain the No Objection Certificate of the concerned department other than that of the Forest Department at the earliest possible. Based on these No Objection Certificates, the Deputy Commissioner shall issue a final No Objection Certificate for the establishment of the Wood Based Industry and send it to the concerned Divisional Forest Officer. (4) The Divisional Forest Officer shall then send the final No Objection Certificate to the State Level Committee alongwith the application form and other specified documents for its approval. (5) After considering the application from all aspects, the State Level Committee shall decide the application for its approval. (6) Final approval of license shall be subject to the deposit of one-time payment to the Department of Forests and Wildlife Preservation on various categories of Wood Based Industries as may be determined by the State Level Committee from time to time and also the license fee to the Government as may be determined by the State Level Committee from time to time. Thereafter, the administrative/ regulatory charges and Green Fees shall have to be paid by the licensed unit annually at such rates as may be determined by the State Government from time to time. (7) The Divisional Forest Officer concerned shall then grant license in Form III for a period of five years after receiving such fee as decided by the State Level Committee within a fortnight. (8) In case any discrepancy is noticed or found in the application or supporting documents at any point of time during application process or even after grant or renewal of license, the license may be cancelled by the concerned Divisional Forest Officer with the prior approval of the State Level Committee. (9) Availability of wood other than that obtained from the agroforestry species in the State shall be considered and accounted for only against the licenses granted to the Wood Based Industries.

(1) Traditional Katha Bhatties shall be regulated by the Divisional Forest Officer as per provisions of the Management Plan approved by the Government of India, Ministry of Environment, Forests and Climate Change for the private forests closed under the Punjab Land Preservation Act, 1900 (Punjab Act No. II of 1900). (2) Register regarding consumption of Khair-wood and katha prepared by the traditional kathabhatties and kathabhatties using Indian Boiler Regulations (IBR) boilers shall be maintained in the following form, namely :- Consumption of Khairwood 1. Date 2. Quantity of Khair-wood consumed (in Metric Tonnes). 3. Source of Khair wood (Detail of the seller of Khair wood) End Product i.e. Katha Prepared 1. Date 2. Quantity of Khair and kutch obtained. 3. Detail of quantity of Katha and Kutch sold (in Metric Tonnes). (3) The operation of the Katha Bhatties using IBR boilers shall be regulated as per the following conditions, namely :- (i) The existing kathabhatties using IBR boilers shall be allowed to operate at their current level of consumption of khair wood, which shall be declared by the Wood Based Industry at the time of submitting application for License along with details of all machinery installed or being installed like Band Saw, Chipper, Boiler, Autoclave, Evaporator, Cooling Chamber, etc, if any. (ii) If any kathabhatti using IBR boiler is found to be in possession of unaccounted khair wood or khair wood from a source, other than legal source, its license shall be cancelled without any prejudice. (iii) The baby boiler units shall upgrade their existing boilers to IBR boilers and shall be brought under the purview of the Boilers Act, 1923 (Act No. 5 of 1923) and rules made thereunder. All the boilers shall have to be got registered in accordance with the said Act. (4) All the kathabhatti owners shall have to obtain requisite approval/ permission, if any, as required under any Act or rules. The procedure for licensing laid down for all wood based industries under rule 8 of these rules shall be applicable to all the katha units also. (5) All types of fees as applicable to other Wood Based Industries shall be applicable to all the katha units also. (6) New licence or expansion shall be allowed on the basis of principles of Sustainability Forest Development to the satisfaction of State Level Committee.

(1) Any person or Wood Based Industry, not requiring license under these rules, is required to be registered under these rules. For registration, an application is to be made in Form-II to the Deputy Commissioner of the concerned district along with a copy to the General Manager, District Industry Centre for No Objection Certificate and a copy to the concerned Divisional Forest Officer. (2) A permanent District Level Committee (DLC) for Wood Based Industries shall be constituted by the concerned Deputy Commissioner under his chairmanship with General Manager, District Industry Centre as Nodal Officer cum Member Secretary and officers-in-charge of the concerned departments at the District Level as members. The concerned Board/departments shall be the Pollution Control Board, Department of Industries and Commerce, Department of Housing and Urban Development, Department of Local Government, Department of Agriculture, Department of Labour, Department of PWD (B&R),Department of Police or any other authority with the prior approval of the concerned Deputy Commissioner. (3) It shall be the responsibility of the General Manager, District Industry Centre to convene the meeting of the District Level Committee and obtain the No Objection Certificate of the concerned departments other than that of the Department of Forests and Wildlife Preservation at the earliest possible. Based on these No Objection Certificates the Deputy Commissioner will issue a final No Objection Certificate for the establishment of the Wood Based Industry and send it to the concerned Divisional Forest Officer. (4) The Divisional Forest Officer shall then send the final No Objection Certificate to the State Level Committee alongwith the application form and other necessary documents for its approval. (5) After considering the application from all aspects, the State Level Committee shall decide the application for its approval. (6) Final approval of Registration certificate shall be subject to the deposit of one-time payment of Registration to the Department of Forests and Wildlife Preservation on various categories of Wood Based Industry as may be determined by State Level Committee from time to time and also the Registration fee to the Government as may be determined by the State Level Committee from time to time. Thereafter, the administrative/regulatory charges and Green Fees shall have to be paid by the registered unit annually at such rates as may be determined by the State Government from time to time. (7) The Divisional Forest Officer concerned shall then grant Registration Certificate in Form III for a period of five years after receiving such fee as decided by the State Level Committee within fortnight. (8) In case any discrepancy is noticed or found in the application or supporting documents at any point of time during application process or even after grant or renewal of Registration certificate, the registration may be cancelled by the concerned Divisional Forest Officer with the prior approval of the State Level Committee.

(1) Any person who has been granted license or registration under these rules shall apply for renewal of the same in Form I or Form II, as the case may be, atleast six months before the expiry of the period for which the licence or registration certificate was granted. Person seeking renewal shall pay such renewal fee, as may be specified by the State Level Committee from time to time. (2) On receipt of an application under sub-rule (1), the Divisional Forest Officer after satisfying himself that such application is in accordance with the guidelines issued by the Government from time to time, shall submit the renewal application along with his verification and comments to the State Level Committee within a period of thirty days from receipt of the application. The Divisional Forest Officer shall renew the license or registration after obtaining the approval of the State Level Committee for such period as may be determined by State Level Committee. The State Level Committee may, however, delegate the power of approval and renewal of license or registration to the Divisional Forest Officer.

(1) Every licensed and registered Wood Based Industries shall maintain proper record of the receipt and disposal of timber in Form-IV and V. (2) The licensed and registered Wood Based Industry shall produce the record for scrutiny and checking of the timber, whenever it is required by the Divisional Forest Officer or any other officer authorised by him. (3) All licensed and registered firms shall be required to file the annual return in Form VI regarding the consumption/usage of wood. Annual return along with annual green fee shall be filed by 30thSeptember of every year for the preceding financial year, failing which the registration or license of the Wood Based Industry shall not be extended and penalty shall be imposed as per rule 17 of these rules. (4) In case a licensed firm does not use the installed capacity to the full extent, theState Level Committee may take appropriate remedial measure(s), including modification of license capacity and even revoking of license in case the licensed firm is not using its optimal capacity continuously for a period of eighteen months which is extendable at the discretion of the State Level Committee after examining the explanation given by the Wood Based Industry owner.

(1) A green fee shall be levied annually, which shall be used for promotion of agroforestry in the State in order to safeguard the interests of the farmers and maintain the tree cover. (2) The green fee referred in sub-rule (1) shall have to be deposited by the licensed or registered units annually at the rate of ten rupees per cubic meter of the installed capacity upto 31st March of each year, which may be extendable upto 30th April, by the concerned Divisional Forests Officer, failing which the Wood Based Industry shall be liable to deposit simple interest of five percent per annum on delay upto six months and ten percent per annum thereafter. The rate of green fee may be revised by the State Government by

Any Forest Officer holding the charge of Forest Block or his superior, alongwith the team, if required, may at any time, enter the premises of any wood based industrial unit and check the records and take samples, if necessary, with a view to ascertain the genuineness of the licence or registration or to check the legitimacy of the source of wood, type of wood used and machinery installed.

Notwithstanding anything contained in these rules, theDivisional Forest Officer, where he has reason(s) to believe that a licensed or registered firm is operating in contravention to the provisions of these rules or conditions of the licence or registration or is indulging in activities prejudicial to the interest of forest conservation, may after giving such licensed or registered Wood Based Industry an opportunity of being heard, recommend to the State Level Committee to cancel, suspend or revoke the licence or registration granted under these rules. The State Level Committee shall take a final decision in this regard.

Any person, who has been refused grant or renewal of licence or registration, or whose license or registration has been revoked under these rules, on receipt of information of such refusal or revocation, as the case may be, may appeal against the decision of the State Level Committee to the Administrative Secretary of the Department of Forests and Wildlife Preservation within a period of thirty days of the refusal/revocation.

(1) Whoever contravenes any provision of these rules shall be punishable with imprisonment for a term which may extend to two years or with fine which may extendto five thousand rupees or both. (2) In case, any direction of the State Level Committee is not complied within the specified time, a penalty upto one rupee per day per Cubic Meter of the installed capacity may be imposed.

Nothing contained in these rules shall apply to the ordinary operations of domestic carpentry, furniture units, wooden toy and handicraft making units and firewood depots, which do not use or have the facility for sawing, converting, cutting and processing round log.

The Punjab Regulation of Saw Mills, Veneer and Plywood Industries Rules, 2006, are hereby repealed : Provided that any order issued or any action taken under the rules, so repealed, shall be deemed to have been issued or taken under the corresponding provisions of these rules.