M.C. Mehta v. Union of India - International Environmental Law ...

9. On February 20, 1995 this Court was informed that the estimated cost of the land in thenew complex would be Rupees 860.00 per square meter. Learned Counsel appearing forthe Calcutta tanneries, however, contended that the price suggested was on the higherside. Various suggestions for reducing the cost of land were considered and finally theCourt passed the following order:Mr. Ajoy Sinha, Principal Secretary to the Government of West .Bengal and Secretary Department of Cottage and Small Scale Industries has filed twoaffidavits dated February 7, 1995 and February 16, 1995 on behalf of the State of WestBengal in Tanneries Matter. The affidavits be taken on record.We have heard Mr. M.C. Mehta, Mr. Dalip Sinha and Mr. G. Ramaswamy. Mr. AjoySinha has annexed copy of the Notice dated January 10, 1995 served on all the tanneriesalong with the affidavit dated February 7, 1995. It has been mentioned in para VI of thenotice that the estimated cost of the land in the new complex would be Rs. 860.00 per sq.metre. It is further stated that this has been worked out on the basis of the total estimateof the cost, which according to the State Government, comes to about Rs. 130 crores. Mr.G. Ramaswamy, learned senior counsel appearing for the tanneries has informed us thatduring the course of discussion between the representatives of the tanneries and theGovernment officials, it was disclosed that cost of the common effluent treatment plant tobe set up at the new complex would come to about Rs. 65 crores. The Co-ordinatingCommittee of the Calcutta Tanneries has, in its letter dated February 15, 1995, informedthe Government that they are willing to shift to the new complex. The main objectionraised by the tanneries is that the price as Rs, 860.00 per sq. metre is excessive and verymuch on the higher side. We have no doubt that the Government must have fixed theprice per square metre on "no profit no loss" basis.We are of the view, that the amount of Rs. 65 crores, to be spent on the construction ofthe common effluent treatment plant, should initially be founded by the Government orfrom some other source provided by the Government. After the treatment plant isconstructed and the tanneries are shifted to the new complex an "effluent charge" can belevied on the tanneries for reimbursing the amount spent on the common effluenttreatment plant in a phased manner. This arrangement can bring down the initial cost tobe incurred by the tanneries.We issue notice to the Government of West Bengal through Deptt. of Industries, Ministryof Environment and Forests - Union Government, the Ganga Project Directorate and theState Pollution Control Board. These authorities shall give their reaction to oursuggestion within a period of two weeks from today. Affidavits shall be filed by all theseauthorities within ten days from today. Registry to send copies of this order to all theabove-mentioned authorities within two days by speed post.10. Pursuant to the order dated February 29, 1995, Ganga Project, Directorate andMinistry of Environment and Forests filed affidavit wherein it was stated that "theamounts provided under the plan are for specific items of works approved by the Central8