Decision 54/35

After having considered the draft decision submitted by the contact group on CFC management and accelerated production closure for India, the Executive Committee decided:

1. To note with concern the over-consumption of 2,181 metric tonnes of CFCs in 2006 and 2007 as compared to the maximum allowable consumption limit established in the agreement between India and the Executive Committee for National phase-out of CFC consumption in India focussing on the refrigeration service sector, as per decision 42/37;
2. To note that, in accordance with Article 10 and appendix 7A of this agreement, there would be a reduction of US $14,960 for each ODP tonne of consumption over the maximum allowable consumption limit;
3. To note also that the Government of India had submitted a proposed action plan to return the country to compliance with the agreement in the years 2008 and 2009;
4. To take into consideration that, in the particular situation of India, the penalty for non‑compliance under this agreement might be quite large;
5. To reaffirm that the Executive Committee wished to assist India in its efforts to phase out CFC consumption;
6. To calculate the penalty as follows:
   1. Foregone profit of US $4,178,600 from exporting 1,228 metric tonnes of existing stock of CFCs on the international market instead of selling them domestically;
   2. US $1.94 million from the remaining funds available in the CFC consumption sector agreement;
7. In respect of the CFC consumption sector agreement, that:
   1. India would produce no more than 690 metric tonnes of CFCs, primarily for the manufacturing of metered-dose inhalers (MDIs), up until 1 August 2008;
   2. India’s CFC producers would sell no more than 825 metric tonnes of CFCs for MDI production in the years 2008 and 2009, comprising 690 metric tonnes of new production and 135 metric tonnes reprocessed from existing stock;
   3. India would export 1,228 metric tonnes of CFCs no later than 31 December 2009;
   4. India would not import any more CFCs of any kind; and
8. To approve US $250,000 (US $101,078 for Germany, US $81,141 for Switzerland, US $47,881 for UNDP and US $19,900 for UNEP) of the remaining funds available under the CFC consumption sector agreement for continuing project activities.