(1) On receipt of an application, 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 the license applied for, having regard to safeguarding the timber in any reserved, protected, proposed, or private forest, may grant a license in the “Form II ” of these rules subject to the conditions set out therein.
(2) The licensing Authority shall grant or reject to grant license within sixty
(60) days of receipt of application in full shape. If no order of granting or rejecting license is received from the Licensing Authority within sixty (60) days of submitting application in full shape, applicant may file an appeal to the Conservator of Forests within thirty (30) days and Conservator of Forests shall pass an order within thirty (30) days of receipt of an appeal and the order passed by Conservator of Forests shall be final.
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(3) License for Wood Based Industries shall be issued under four categories as stated below:
(1) Primary Wood Based Industries - General Category.
(2) Primary Wood Based Industries - Exempted wood Category
(3) Primary Wood Based Industries - Imported wood Category.
(4) Secondary Wood Based Industries units
(4) Primary Wood Based Industries - General category:
i) Units having licence under this category would be free to use raw material procured from any source, e.g. local timber, timber sold by FD through auction, timber brought from other States, timber imported through Open General Licence.
ii) Such units would be free to convert round/sawn timber of any species including species exempted under Telangana Forest Produce Transit Rules 1970 and imported timber.
iii) New licence under this category will be issued only if it is found by the competent authority that there is surplus timber available from all sources after taking into consideration demand (capacity) from existing licensed units.
(5) Primary Wood Based Industries - Exempted timber Category:
(i) Such units will exclusively use only round timber species exempted under Telangana Forest Produce Transit Rules, 1970.
(ii) Conversion of licence from this category to any other category of wood based units will not be Permissible.
(iii) If at any point of time, during inspection/surprise check or by other means, the unit is found to have utilized any timber other than the species exempted under Telangana Forest Produce Transit Rules, 1970 even on valid transit permit, the licence of such unit shall be cancelled in addition to other applicable penalties/action.
(iv) Government by notification may restrict establishment of such units in certain areas and types of machinery in such notified area keeping protection of forests into consideration.
(6) Primary Wood Based Industries - imported timber category:
(i) The unit will exclusively use only imported round timber and under no circumstances it will use any other timber in its unit.
(ii) If at any point of time, during inspection/surprise check or by other means, the unit is found to have utilized any timber other than the imported timber brought under cover of a valid transit permit, the licence of such unit shall be cancelled in addition to other applicable penalties/action.
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(iii) The units will maintain complete and authenticated documents regarding the details of the imported timber. In addition, copies of agreement with importer, timber utilized, balance timber, importexport license, transit permits and other relevant documents will be kept at the factory premises by the licensee and make them available during inspection /surprise checks by the authority.
(iv) Timber will be brought to the factory only under the cover of a valid transit permit. Record of all such TPs should be maintained and made available during inspection/surprise checks by authorities.
(v) Such units will be permitted to be installed only within limits of municipal corporations, district headquarters and SEZ developed for wood based industries.
(7) Secondary Wood Based Industries Units :
(i) These units will only convert sawn timber into smaller pieces or convert into other products. No machinery for sawing/ peeling/ slicing of round logs would be permitted.
(ii) Such units would not be eligible to carry out sawing of round logs. If the unit is found to have used round timber, whether from legal sources or otherwise, its licence will be liable to be cancelled in addition to other penalties as applicable.
(iii) Units having licence under this category would have to procure sawn timber from those converted by the primary licensed Wood Based Industries units or sawn timber imported from other States/country through legal means.
(iv) Conversion of licence from this category to any other category of wood based units will not be permissible.
(8) Every license granted under rule 4 shall, subject to the provisions of rule 11, be effective for three years from the date of issue to the 31st March of the year in which validity of licence expires, both days inclusive.