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1987 (11) TMI 217

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..... Silica in the small scale sector. The purpose of the petition is to restrain the Central Government from granting an industrial licence or any other facility or permission which would enable the third respondent H.S. Bharatia to establish an industrial undertaking to manufacture wide grades of Silica, which the respondents described as Specialised Silica but which according to the petitioners is nothing else but precipitated Silica. The petitioners have also prayed that the proposal of the third respondent for foreign collaboration with Messrs Degussa for the manufacture of these grades of specialised Silica should not be granted and for other reliefs. 2. Under Section 29B(2A) of the Industries (Development and Regulation) Act, 1951 the .....

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..... ess it is necessary to carry out drying. Depending the method of drying and thereafter grinding, particle sizes of the requisite order are produced. The five grades sought to be manufactured involve spray drying which is apparently a costly process. The advantages of spray drying are set out in the technical material. It is said to yield more spherical, softer Silica agglomerates. These special grades of Silica have uses which are said to be somewhat different from precipitated Silicas produced by other drying processes which involve subsequent grinding. It seems that the spray-dried Silicas are more suitable for reinforcement of various materials such as rubber and so on. 4. The technology for manufacture of precipitated silicas in the s .....

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..... ed on 20th April, 1986. 6. Thereafter the third respondent has applied for approval of foreign collaboration with Degussa. This proposal has been referred to the Technical Evaluation Committee in April, 1987. The Technical: Evaluation Committee heard the manufacturers of Rubber Products and of Rice Rollers who are the two principal consumers of these kinds of silicas. The Small Scale Industries Manufacturers Association had also sent representations opposing the proposal of respondent No. 3. These have also been considered by the Technical Evaluation Committee. After considerable discussion and after considering the different aspects involved including the cost of manufacture and the difference in uses of the end products the Technical Ev .....

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..... hy discussion and after taking into account the point of view of the Director of Small Scale Industries the Committee has held that these grades for practical purposes should not be considered as precipitated silica reserved for the Small Scale Sector. They can be considered as specialised silica. The letter of intent which is issued to the third respondent also sets out that the items of manufacture which are approved are (1) Specialised Silicas (other than precipitated. Silicas reserved for Small Scale Sector), (2) Silica Sols and (3) Fumed Silica/Pyrogenic Silica. The first item therefore permits manufacture of specialised silica other than precipitated silica reserved for the Small Scale Sector. In a technical sense the petitioners are .....

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..... eetings held in that connection in order to satisfy myself that the respondents 1 and 2 had taken all relevant factors into consideration before deciding on the applications of respondent No. 3. In my view the minutes of the Technical Evaluation Committee which are dated 3rd September, 1987 and 11th September, 1987 summarise effectively the various aspects which have been taken into account while processing the applications of respondent No. 3. The substance of the points which were considered has already been set out in the affidavit filed on behalf of respondent No. 3, which is dated 12th October, 1987. In these circumstances I directed the respondent Nos. 1 and 2 to give copies of these minutes to the petitioners. Regarding the other doc .....

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