Appeal backfires
Forests are no longer naturally renewable. Paper mills will, therefore, have to share the cost of regenerating them. Thus ruled the Supreme Court, dismissing an appeal filed by two Andhra paper mills against the state government's decision to raise the royalty on bamboo and hardwood.
The government's decision was based on the recommendations of a committee set up to review the royalty rates and concessions. It suggested that the cost of regenerating the forest be factored in. The companies moved court arguing that what they bought was "natural growth'. The court observed that royalty could be influenced by the regeneration costs as well as other criteria, including the ecology, public revenue, availability of forest produce and the needs of other consumers. The court took a strong view of the matter, stating that forests have been destroyed by overexploitation.