A deal to agree on the cost of the common effluent treatment plant (CETP) at the Calcutta Leather Complex could represent a reprieve for tanners facing closure by a Supreme Court order.

The Union ministry of environment and forests, the West Bengal government and the tanneries reached an agreement on March 5, 2002 over the cost of the CETP. The details are now due to be presented to the Supreme Court. All sides now hope that in view of this development the Supreme Court will extend the deadline for relocation.

The West Bengal government had been ordered by the Supreme Court to move all 523 tanneries in Kolkata to the new complex at Bantala by February 28, 2002. The move is designed to solve pollution problems associated with tanneries operating in the heart of the city without effluent treatment facilities. The tanners claim they are happy to relocate but accuse the state government of failing to implement the project in time and leaving them to foot most of the cost.

Uncertainty over the status of the tanneries is fuelling fears that many exporters will miss delivery schedules, losing business to competitors and forcing many tanneries to move out of the state. If the latest attempt to stave of closure fails, tanners' associations and trade unions say they will set up a Leather Industry Advisory Committee to take on the state government and fight for compensation.