'15'

ECB GUIDELINES REVISED

    The Government has amended the Guidelines on External Commercial Borrowing (ECB), issued in July 1999. This has been done in view of the changes in external financial markets, requirements of corporates and access to international capital markets. Accordingly, the following changes in ECB guidelines have come into effect immediately:

  1. Structured Obligation
  2. As per para 19 (e) of ECB guidelines, the liability of an Indian company shall be denominated in Indian Rupees and debt servicing may be done in equivalent foreign exchange funds. The Government has decided that henceforth denomination of debt service in a post default situation may be in Rupees or in Forex as envisaged initially in the contract document.

  3. Infrastructure Projects
  4. ECB guidelines (para 9 & 10) give the flexibility to domestic investors to raise ECBs up to a maximum of USD 50 million equivalent to finance their equity investment in a subsidiary/ joint venture company implementing infrastructure project(s). In order to provide greater flexibility to domestic holding companies/promoters, Government has decided to enhance this limit to USD 200 million to finance equity investment in downstream infrastructure project(s).

  5. Prepayment of ECBs
  6. At present prepayment of ECBs upto 100% of outstanding balance is permitted provided prepayment is to be effected from foreign equity inflow or residual maturity is up to one year. In addition, it has been decided to permit 100% prepayment, where the source of funds is from EEFC account(s).

  7. 100% EOUs
  8. 100% export oriented units will be permitted to have foreign currency exposure upto 60% of the project cost.

  9. End use Relaxation
  10. Over a period of time, Government has progressively relaxed end-use(s) restriction on the use of the foreign currency loans. It has been decided that henceforth ECBs can be used for any purpose except investment in real estate and in capital markets.

  11. Government equity holding in PSUs
  12. It has been found that borrowings by PSUs invariably contain covenants that Government will continue to hold at least 51% of equity in PSUs concerned. In view of on-going dis-investment programmes such covenants should not be incorporated in the loan agreements.

  13. Operating Expenses
  14. In respect of operating and out-of-pocket expenses incurred for ECB approvals not resulting in loans, such expenses will be allowed as per prevailing RBI guidelines on current account transactions subject to a cap. Corporates will obtain specific approval of RBI for remittances of such expenses. RBI will issue appropriate instructions in this regard.

  15. ECB approval procedures
  1. At present a borrower has to approach Government twice, once for obtaining in-principle approval and secondly for submission of loan agreement(s) for taking on record (TOR). After TOR, the borrower approaches RBI for FERA approval and permission for draw down. Thus, there are three stages. As a measure of simplification, it has been decided that the Regional Offices of RBI would take loan agreement/documents on record of all ECB approvals once they have been approved by the Government/RBI as the case may be. RBI will send a copy of loan documents/TOR records to DEA. RBI will issue appropriate instructions in this regard.
  2. Default Interest:- Default interest not exceeding 2% over the applicable rate will be incorporated in the approval letter/taken on record letter itself. No further approval would be required from the Government/RBI.

IX. ECB entitlement for infrastructure projects

    All infrastructure projects will be permitted to have ECB exposure to the extent of 50% of the project cost as appraised by a recognised financial institution/bank, subject to fulfillment of other ECB guidelines. Greater flexibility beyond 50% of the project cost may be allowed in case of power sector and other infrastructure projects based on merits.

 

 

'18'

INCREASE IN ROURKELA STEEL PLANT PRODUCTION

    Hot metal production in Rourkela Steel Plant of the Steel Authority India Ltd. (SAIL), during October-December, 1999 recorded a growth of 7.96 per cent compared to its previous quarter. It produced 3,32,590 tonnes of hot metal during these three months. The total crude steel production in the plant also reached a high of : 2,91,276 tonnes during these three months, an increase of 19,071 tonnes from the previous quarter. The production from Hot Strip Mill during this period has shown a phenomenal growth of 30 per cent from 185,340 tonnes to 2,40,839 tonnes. Performance of modernised facilities was also quite impressive as the production from HR coils rose to 1,01,556 tonnes a substantial 48 per cent increase from the second quarter of 1999-2000 fiscal.

    The total saleable steel production went up by 10.75 per cent from 2,58,613 tonnes in the second quarter of 1999-2000 to 2,86,429 tonnes in the third quarter. During this period despatch of saleable steel went up from 4,67,164 tonnes to 5,52,255 tonnes, 24 per cent increase over the second quarter. Total sale of steel items during this quarter also rose by 65 per cent.

    For the first time the fiscal gross margin projections showed a positive trend at the end of December 1999 which the plant may improve upon further.

 

 

'18'

RECORD PRODUCTION OF VSP STEEL MELTING SHOP

    The Steel Melting Shop (SMS) Collective of Visakhapatnam Steel Plant (VSP) have created a new record on January 24, 2000 by producing 67 heats and 9906 tonnes of Liquid Steel with 121 per cent Capacity Utilisation. The above production is the best since its inception at VSP. It has crossed its earlier record of 66 heats on January 10, 2000 and 65 heats on December 5, 1999.

 

 

'31'

PROGRESS OF IMMUNISATION PROGRAMME RANGES FROM 75 PER CENT TO 90 PER CENT IN THE YEAR 1999

    As per performance reports received from various States and Union Territories the over all progress of the immunisation programme during 1999-2000 ( April to December, 1999) proportional achievement antigen-wise is given below:

 

S.No.

Antigen

Proportionate need

Assessed

Achievement during

1999-2000

% of proportionate

achievement

1.

Tetanus (TT)

18,872,455

14,042,711

74.4%

2.

Diphtheria

(3rd)

15,955,027

13,564,913

85.0%

3.

Oral Polio

Vaccine

15,955,027

13,656,669

85.6%

4.

B.C.G.

15,955,027

14,507,714

90.9%

5.

Measles

15,955,027

12,980,234

81.4%

    Of the Immunisation Programme as detailed above the B.C.G. vaccination has evoked more response i.e. 90.9 per cent from the children. Tetanus vaccination records 74.4 per cent only. Of the five Immunisation Programmes, its performance is the lowest one, as compared to others.

 

 

'31'

NATIONAL BLINDNESS CONTROL PROGRAMME

    During the first nine months period of the current financial year 1999-2000 (till December, 1999) over 13,66,290 cataract surgeries have been performed all over the country as against the annual target of 35,00,000, under National Blindness Control Programme.

    Under the National Iodine Deficiency Disorders Control Programme, 621 samples were analysed for iodine content during November, 1999. The results of analysis have indicated that 76 per cent of the samples was found to conform with prescribed standards.

    Under the programme, a quantity of 4.05 lakh MT of iodised salt was produced and a quantity of 3.90 lakh MT of iodised salt was distributed to various States/ Union Territories during August, 1999.

 

 

'16'

STANDARD INPUT-OUTPUT NORMS FOR 32 ITEMS NOTIFIED

    Directorate General of Foreign Trade (DGFT) has issued Public Notice No.50 dated 02/02/2000, notifying the Standard Input-Output Norms for 32 items. 40 amendments/corrections have also been carried out in existing norms of different product groups. Of the 32 new norms belong to the chemical and allied product, 14 norms to engineering product and 1 norm to the textile products.

 

 

OPINION POLL ON PMO'S WEBSITE ON TALKS WITH PAKISTAN

    "Is Prime Minister Atal Bihari Vajpayee right in insisting that there can be no meaningful talks with Pakistan till cross Border terrorism ends?", is the theme for this week's opinion poll on the website of the Prime Minister's Office (www.pmindia.nic.in).

    In the first opinion poll on the PMO website conducted last week, public opinion has shown an overwhelming support in favour of reviewing the Constitution without disturbing its basic structure. 81% of the votes were in favour of the review while 19% voted against.

    In a significant web success of the last fortnight, the website of the Prime Minister's Office has recorded 11,58,782 hits till February 8, 2000. On an average, more than 80,000 hits are being registered on the website everyday since its launch by the Prime Minister, Shri Atal Bihari Vajpayee on January 26, 2000.

    The website offers biographical and pictorial details of the present and past Prime Ministers, details of the functions of the PMO, latest updates on the Prime Minister's development initiatives, news flash, Press statements, messages and speeches of the present and past Prime Ministers, details of the Prime Minister's National Relief Fund and Defence Fund, cartoonist gallery for a lighter look at life, Know India : A multi-media information centre on India and important events since 1947. The PMO website offers the visitors unique features of taking a virtual tour of the Prime Minister's Office, voting on current issues and a facility to write to the PMO.

 

 

‘7’

NEW SECRETARY DCA ASSUMES OFFICE

    Dr.P.L. Sanjeev Reddy today took over as Secretary, Department of Company Affairs, in the Ministry of Law, Justice and Company Affairs. An IAS officer of 1964 Andhra Pradesh Cadre, Dr. Reddy was Secretary, Rural Development before taking over as Secretary, Department of Company Affairs. Still earlier, he was Principal Advisor, Planning Commission. Before that he was Secretary, Department of Rural Employment and Poverty Alleviation. During 1990-93, Dr. Reddy was MRTP Commissioner, Department of Company Affairs.

    Immediately after Dr. Reddy assumed the office of Secretary, DCA, he took a meeting of officials and got the current status of the workings of the Companies Act, 1956 and the MRTP Act, 1969 as also several other Acts under the administrative control of the Department of Company Affairs. He told them that he believed in team-work. He exhorted all the officials to be fair, fearless and objective in their performance as the entire team of officials had a shared goal which intended to improve the corporate governance. He instructed all of them to be customer friendly and responsive.

    During the period spanning over 34 years in the Indian Administrative Service, Dr. Reddy handled various sensitive, responsible challenging and top level assignments in different fields. Specialised mainly in the fields of Industry, Finance, International Trade and Commerce and development administration including social development.

 

 

'16'

INDIA’S EXPORTS TO IRAN UP BY 39 PER CENT IN DOLLAR TERMS

OMAR ABDULLAH OPTIMISTIC ABOUT FURTHER EXPANSION OF BILATERAL TRADE

    India’s exports to Iran have gone up by 39 per cent in dollar terms and 44 per cent in rupee terms during the first half of the current financial year, as compared to the corresponding period of the previous year. The exports during the period April-September 1999 stood at US $ 82 million (Rs.353.74 crores) as against April-September 1998 exports of US 59 million (Rs.246.17 crores). This was indicated by Shri Omar Abdullah, Minister of State for Commerce & Industry during an informal interaction with the team of Iranian journalists who called on him last evening.

    During his interaction with the journalists, Shri Abdullah referred to the long history of India’s friendship and economic relations with the Gulf countries in general and Iran in particular. He also referred to Iran’s strong trading links with India whose origin, he said, goes beyond the modern aviation links and commercial banking. The oil boom of early 70s provided a fresh impetus to bilateral trade relations between the two countries as a result of which, Iran has emerged an important and major trading partner of India, the Minister said. Shri Abdullah also expressed hope and confidence that the two countries were fully aware of the challenges of the new millennium and would take appropriate steps to make the bilateral trade touch newer heights. The bilateral trade between the two countries have also gone up by 53 per cent, recording figures of US $ 202 million during April-September 1999 as compared to US $ 132 million during the period April-September 1998.

    Shri Abdullah conveyed his optimism about the expansion of bilateral trade between India and Iran and expressed hope that non-tariff barriers would not pose any problems in this pursuit. He also conveyed India’s resolve to continue the policies of economic liberalisation and globalisation and reiterated that a congenial atmosphere exists in India for foreign direct investment (FDI) to encourage joint ventures.

 

 

USE OF ELECTORAL IDENTITY CARD FOR VOTING MADE MANDATORY IN HARYANA

    A copy of the order No. 3/4/2000 dated 10th February, 2000 issued by the Election Commission of India on the above mentioned subject is follows:

ORDER

    Whereas, the Constitution of India proclaims that India is a Sovereign Democratic Republic, and, as has been observed by the Supreme Court, democracy being the basic feature of the country's constitutional set up, free and fair elections to Parliament and State Legislatures alone would guarantee the growth of a healthy democracy in the country; and

2. Whereas, the whole country, public at large, political parties, candidates and electors are showing their utmost concern for free and fair elections to our legislative bodies; and

3. Whereas, free and fair elections not only require that the electors should be free to exercise their votes in favour of the candidates of their choice according to their own free will, but also make it a pre-condition for a clean election that the real and true voters exercise their franchise and their right to vote is not defeated by unscrupulous and anti-social elements by resorting to impersonation or bogus voting; and

4. Whereas, Parliament has shown its due concern in the matter and made a special provision, as far back as 1958, by amending Section 61 of the Representation of the People Act, 1951 to the effect, inter alia, that with a view to preventing impersonation of electors, provisions may be made by rules under that Act for the use of Electoral Identity Cards for electors as the means of establishing their identity at the time of polling; and

5. Whereas, Rule 28 of the Registration of Electors Rules, 1960, empowers the Election Commission to direct, with a view to preventing impersonation of electors and facilitating their identification at the time of poll, the issue of Electoral Identity Cards to electors bearing their photographs at State cost; and

6. Whereas, Rules 35 (3) and 37 (2) (b) of the Conduct of Elections Rules, 1961, stipulate that where the electors of a constituency have been supplied with Electoral Identity Cards under the said provisions of Rule 28 of the Registration of Electors Rules, 1960, the electors shall produce their Electoral Identity Cards at the polling station and failure or refusal on their part to produce those Electoral Identity Cards may result in the denial of supply of a ballot paper to them and permission to vote; and

7. Whereas, to effectuate and operationalise the aforesaid provisions of the Representation of the People Act, 1951, Registration of Electors Rules, 1960 and the Conduct of Elections Rules, 1961, the Election Commission has revised the format of the electoral rolls in 1997 and provided a special column therein for recording the serial number of the Electoral Identity Cards wherever issued to an elector under the provisions of the said Rule 28 of the Registration of Electors Rules, 1960; and

8.    Whereas, a combined and harmonious reading of the aforesaid provisions of the said Act and the Rules, makes it clear that although the right to vote arises by the existence of the name in the electoral roll, it is also dependent upon the use of the Electoral Identity Card, where provided by the Election Commission at State cost; both are to be used together; and

9. Whereas, in the light of its experience of conducting numerous general elections and bye-elections to the House of the People and State Legislative Assemblies for over four decades from 1951 to 1993, and after several rounds of discussions with political parties and State electoral authorities in the late 1980s and early 1990s, the Election Commission made a historic order on the 28th August, 1993, directing the issue of Electoral Identity Cards to all electors in all States (except Jammu & Kashmir) and Union Territories, according to a time bound programme; and

10. Whereas, in pursuance of above direction of the Election Commission, the Central Government and all State Governments agreed to share the expenditure involved in the issue of Electoral Identity Cards to electors a 50 : 50 basis, and, accordingly, started implementing the most ambitious programme of issuing Electoral Identity Cards to more than six hundred million electors of the country in 1993; and

11. Whereas, many of the States have vigorously implemented the Commission's programme and have achieved a high degree of success in its implementation; and

12. Whereas, more than Rupees One Thousand Crore have already been spent by the Central and the State Governments on the issue of Electoral Identity Cards to electors as per the above programme; and

13. Whereas, questions are being raised by various political parties, voters' organisations, candidates and general electors as to why the Election Commission is not making use of those Electoral Identity Cards for ensuring clean elections, free from the evils and malpractices of impersonation and bogus voting; and

14. Whereas, the Comptroller and Auditor General of India has also made some audit observations in regard to the huge expenditure incurred in the implementation of the above programme without any corresponding benefit being derived by the use of those cards; and

15. Whereas, the Election Commission had to face similar embarrassing questions and audit observations with regard to the non-use of Electronic Voting Machines after their procurement in 1990, because of certain reservations shown and doubts and apprehensions expressed by some political parties in regard to the use of those machines; and

16. Whereas, when the Election Commission, after considerable debate and discussions with all concerned, took the historic step of large scale use of those machines at the general elections to the Legislative Assemblies of Madhaya Pradesh, Rajasthan and NCT of Delhi in November, 1998, not only the electorates of those States welcomed and lauded the introduction of those machines as a much needed salutary measure in the improvement of the electoral system, but there is now a unanimous demand in the whole country for universal use of those machines during elections; and

17. Whereas, the Election Commission has duly considered all relevant facts and circumstances, and particularly takes note of the fact that more than six years of administrative effort and labour and expenditure of more than Rupees One Thousand Crore from the National and State exchequers have gone into the supply of the Electoral Identity Cards to electors, and has decided to make effective use of these cards at the current and future elections, for the purpose for which their supply was intended under the law, namely, to identify the electors at the time of casting their votes with a view to preventing impersonation; and

18. Whereas, the Commission has, with the above objective in view, assessed the progress made in the preparation and supply of Electoral Identity Cards to electors in the States currently going to the Polls; and

19. Whereas, the Commission has observed, on such assessment, that out of 1,11,09,568 electors on the electoral rolls of the State of Haryana 97,77,534 have already been issued with the Electoral Identity Cards, which comes to 88.01 percent; and

20. Whereas, the supply of Electoral Identity Cards to voters in as many as thirty five assembly constituencies in the State of Haryana has even gone above 90 percent and in 54-Palwal and 77-Ratia (SC) Assembly Constituencies, the percentage has gone above 95; and

21. Whereas, the Commission has also taken note of the fact that over the last six years since the implementation of the programme of issue of Electoral Identity Cards was taken up in the State of Haryana, the State election machinery has made all possible efforts to issue Electoral Identity Cards to all eligible electors who have not yet obtained those cards, and has made repeated rounds of the constituencies and areas with a view to issuing cards to the left-out voters; and

22. Whereas, the Election Commission is satisfied that the non-supply of the Electoral Identity Cards to such left-out voters is not on account of any lapse or lack of effort or initiative on the part of the administrative machinery, but may be on account of the fact that some of these electors might have been dead or might have moved out of the constituencies and obtained their Electoral Identity Cards elsewhere and are not turning up for being photographed and obtaining Electoral Identity Cards in their previous constituencies; and

23. Whereas, having regard to the above, the Commission is also satisfied that the onus now lies not on the Electoral Authorities, but on the left-out electors themselves to obtain their Electoral Identity Cards, if eligible for the same;

24. Now, therefore, after taking into account all relevant considerations and the legal and factual position, the Election Commission hereby directs that all electors in the State of Haryana, who have been issued with their Electoral Identity Cards, shall have to produce these cards to exercise their franchise, when they come to the polling stations for voting at the current general election to the Haryana Legislative Assembly, the poll for which is scheduled to take place on 22nd February, 2000.

25. The Election Commission wishes to make it clear, at the cost of repetition, that the electors at the current general election to the Haryana Legislative Assembly will have to establish their identity at the polling stations by means of the Electoral Identity Cards issued to them under the authority of the Election Commission. Since, however, it is for the first time in the country that the production of Electoral Identity Cards for the purpose of voting is being insisted upon, the Commission, as a matter of abundant caution, will permit the odd electors who have not obtained their Electoral Identity Cards to vote at the current general elections, provided their identity is otherwise established to the satisfaction of the Presiding Officer or such other polling officer as is authorised by the Presiding Officer in this behalf. For the above purpose, they will have to produce some documentary evidence which may be helpful in establishing their identity, like, Ration Cards, Driving Licenses, Passports, Identity Cards issued by the Central/State Government, Public Sector Undertakings, Local Bodies or other Private Industrial Houses, Property or Tax Documents, Pass Books issued by Banks and Post Offices, Kisan Pass Books, Electricity Bills, Chula Tax Bills or any other similar documents establishing the identity of the elector to the satisfaction of the Presiding Officer. Similar procedure will apply in respect of such of the odd electors, who having been supplied with Electoral Identity Cards, but are not able to produce them for reasons beyond their control.

26. The Election Commission wants to make it clear to the country that it is duty bound to push all reforms that sustain the Constitution and the Election Law that require free and fair elections. Over the last two years, the Commission has made every endeavor to improve the electoral system with a view to making elections free and fair, such as, the introduction of Electronic Voting Machines, Computerisation of Electoral Rolls and putting them on CD- ROMs. The Commission is now, in the State of Haryana, taking another historic step to use the Electoral Identity Cards at the general election to its State Legislative Assembly scheduled to be held on 22nd February, 2000, with a view to putting an end to the bogus voting by impersonation and enabling, at the same time, the genuine voters to cast their votes.

27. The Commission hopes and trusts that the State of Haryana and its electorate would give a lead to the Nation by not only successfully implementing the use of Electoral Identity Cards at elections, but also by being the first of the major States in the Country to use the Electronic Voting Machines on an extensive scale in as many as 45 of the 90 Assembly Constituencies in the State at the current general election.

28. The Commission also makes it clear that it will pursue its efforts for using the Electoral Identity Cards in the States of Assam, Kerala, Tamil Nadu, West Bengal and Pondicherry, which are slated to go to the polls early next year. Therefore, the electorate and the electoral authorities in all these States must focus their attention and energies on the completion of issue of Electoral Identity Cards as expeditiously as possible so that those States are fully prepared to use those cards at the aforesaid general elections.

 

'31'

ONLY STATES ARE GIVING LICENCE FOR MINERAL WATER AND NOT THE CENTRE

    A misleading news item that appeared in ‘Statesman’, New Delhi edition on 22.1.2000 under the caption "Mineral Water company’s claim established" has come to the notice of the Government. The report alleges inter-alia that mineral water manufacturers have to register under Prevention of Food Adulteration Act (PFA) for selling mineral water and that the Union Ministry of Health and Family Welfare had included "Hello" in the list of manufacturers selling water not governed by the PFA; the Government’s move to bring packaged water under some regulation was based on a confidential report after a survey was commissioned on the sale of packaged water in plastic bottles, plastic cups and pouches; and that a senior Ministry official dealing with the subject mentioned "Hello" as being one of the companies etc.

    In this connection, it is clarified for information of all concerned that registration of mineral water is not done by the Ministry of Health and F.W. The manufacturers are required to obtain a licence under Rule 50 of PFA Rules, 1955 from the State Government concerned for mineral water. There is no requirement currently to obtain a licence for selling packaged drinking water. The Ministry of Health & Family Welfare is also not maintaining any list of manufacturers of mineral/ packaged water. Hence, the report that appeared in the newspaper is totally incorrect. Moreover, standards of mineral water are neither rigid nor is it correct to say that the standards of packaged drinking water are being laid down on the basis of the any confidential report. In fact, Government has decided to lay down standards for packaged drinking water in the interest of the consumers at large. No senior officer of the Ministry has any knowledge of the alleged communication with "Hello".

 

 

'31'

A DRAFT P.F. A. NOTIFICATION UNDER ISSUE SPECIFYING THAT ATTA, MAIDA & SUJI BE PREPARED FROM FOODGRAINS WHICH ARE FREE FROM RODENT HAIR AND EXCRETA

    There have been some newspaper reports regarding alleged permission by the Ministry of Health allowing presence of rodent hair and excreta in food grains.

    Under the Prevention of Food Adulteration (PFA) Act, permissible limits for rodent hair and excreta are specified as food godowns. It should be realised that these commodities are not consumed in the same form in which they are stored, e.g. paddy, wheat and coarse grains. These food grains are converted into food products like atta, maida and suji, for the purpose of human consumption. Under the PFA Act, it is provided that these food products do not have any presence of rodent hair or excreta. Now a draft notification is under issue which further specifies that atta, maida and suji would be prepared from food grains which are free from rodent hair and excreta. The matter is presently under consideration by the Delhi High Court.

 

 

'24'

Mr. YOSHIO UTSUMI, SECRETARY-GENERAL, ITU CALLS ON SHRI TAPAN SIKDAR

    Mr. Yoshio Utsumi, Secretary General, International Telecommunications Union (ITU) called on the Minister of State for Communications, Shri Tapan Sikdar here today and discussed various matters of mutual interest in the telecom sector. During his meeting, the Secretary General expressed the desire on behalf of the ITU for a continued dialogue in the new emerging fields. He also extended support to India's new initiatives on various projects like the Multi-purpose Community Tele-centres (MCTs), and exchanged views on setting up of Asia Pacific Telecommunication Standards Institute (ATSI).

    Earlier, while welcoming the Secretary General, the Minister underlined the need for expanding cooperation between India and the ITU. He explained to the Secretary General about various initiatives towards providing telephones to every village by 2002. The Minister stated that telephone penetration in the country was just 2.5 which needed to be increased to seven by 2005 and 15 by 2010. All these required extensive effort in which private sector can play a useful role. Shri Sikdar reiterated Government's commitment for the development of telecom infrastructure thus enableing the country to become a vibrant knowledge based economy.

    During his visit, Mr. Yoshio Utsumi has had exchange of views on mutual and global interest in the telecom sector status and development of telecommunication infrastructure particularly in India including IT and Broadcasting and electronic revolution through software. ITU is supporting project on Interactive Television Programme for Teachers' Training for the State of Madhya Pradesh and Gujarat in collaboration with Ministry of Communications and Ministry of Human Resource Development, Government of India. ITU has also extended support for setting up of MCTs in cooperation with Ministry of Communications, Government of India and UNESCO and State Government of Gujarat, offering not only basic telephony, but also elements of tele-education, tele-health, tele-administration, tele-market survey and support for improving the life and life style and supporting economic programmes of the country. This is expected to prove a "Model" for most of the developing countries. Participation of Indian experts and professionals for various disciplines in the sector of telecommunications, space information and broadcasting and software industry was also addressed.

 

 

'13'

HELP LAUNCH PROJECTS WITH LONG RANGE COMMERCIALISATION POTENTIAL – DR. M.M. JOSHI TELLS SCIENTISTS

    The Minister for Human Resource Development and Science and Technology, Dr. Murli Manohar Joshi has urged the scientists and technocrats to help launch projects which have greater commercialisation potential in a very long range. He said while there is a need to concentrate on technical projects of immediate socio-economic concern, we should also focus our attention on projects that will have a bearing on the Nation in the nearest future. Such projects should be taken up after a careful study and approached in a phased manner. Dr. Joshi was inaugurating here today, an international seminar organised by the Technology Information, Forecasting and Assessment Council of the Department of Science and Technology on its 12th annual day. He announced that TIFAC would be soon launching two futuristic projects relating to Hydrogen technology and energy towers. Initial risks may be there but there will be higher gains in the long term, he said.

    Referring to the Jai Vigyan Mission, Dr. Joshi said, that India will gain a lot from the "Jai Vigyan" Mission, and it will give India a proud place among the comity of nations. Technology forecasting and assessment with strong technology networks will help us achieve this. He pointed out that the 21 "Jai Vigyan" Missions will also be oriented to integrate their activities with the needs and requirements of the State Governments. He said despite great advances in technology we have not been able to banish poverty and hunger. While the fruits of our advancement have gone only to the well-to-do sections of the society, the vulnerable majority still languish and this needs to be tacked urgently.

    Dr. Joshi dwelt at length and suggested a number of measures to remove this imbalance. These include holistic integration with superspecialisation, creation of a knowledge based economy, a overall agricultural strategy, higher participation by Industry in technological development and adopting home grown technology, greater involvement of States in Central programmes and using Indian software strengths to capture global markets.

    The Minister of State for Science and Technology, Shri Bachi Singh Rawat said that TIFAC has about 50 home grown technology projects and many more are in the pipeline under its Misssion programmes. He described the technology vision documents generated under the leadership of Dr. A.P.J. Abdul Kalam as a road map for a fully developed India.

    The Principal Scientific Adviser to the Government of India, Dr. A.P.J. Abdul Kalam in his key note address said, it is essential to inculcate scientific temper in our younger generation to produce more brilliant scientists, as only science and technology can lead us towards the path of overall economic progress. Dr. Kalam who is also the Chairman of the TIFAC said it is time that we shape our future taking into account our present and future expectations. The TIFAC should take advantage of the information explosion and go in for strengthening its networking, he said.

    The Secretary, Department of Science and Technology, Prof. V.S. Ramamurthy said the responsibility of converting our vision into missions and actions lies with the scientists. The TIFAC must also pay attention to missions where suitable technologies are yet to be developed. It should also address itself to futuristic missions as we have to take care of our tomorrow too, he said.

 

 

'8'

STATES SUGGEST AMALGAMATION OF SOME CENTRAL SCHEMES ON WOMEN AND CHILD DEVELOPMENT

    On the second day of the Conference of State Ministers and State Secretaries in-charge of Women and Child Development senior officers of the Department, National Commission for Women, Rashtriya Mahila Kosh and Central Social Welfare Board made presentations on the schemes pertaining to women and children being run by them. The schemes mainly referred to were Integrated Child Development Services, Balika Samridhi Yojana, Indira Mahila Yojana, Rashtriya Mahila Kosh, Working Women’s Hostels, Short Stay Homes for Women, NORAD and National Creche Fund etc. The exercise brought out in full, the efficacy of the schemes and also the issues for which solutions will have to be found out by Centre and States working together. Representative of Planning Commission talked about the paradigm shift in the strategy at National level from welfare to development/empowerment to tackle issues relating to women and children. The need for a system providing for qualitative monitoring of schemes in the social sector was emphasised. She exhorted all those working and committed to the cause of upliftment of women and children not to look for funding of schemes from government only and rather devise means for generating funds locally by way of community funding etc.

    Representatives from States spoke at length about the state specific bottlenecks being faced by them in implementing the schemes up to their complete satisfaction. Majority of them suggested amalgamation of several schemes of the central Government with overlapping/common targets into one for consideration and demanded a rise in the amount being paid under Balika Samridhi Yojana and routing of funds to districts and non-governmental organisations in consultation with them and if possible through them.

 

 

 

SINHA CALLS FOR STRENGTHENING OF COOPERATIVE MOVEMENT

    The Union Finance Minister, Shri Yashwant Sinha has called for strengthening of the cooperative movement in the country so that it plays a vital role in the economy. Shri Sinha was addressing a group of representatives of cooperative unions and agriculture sector as part of the pre-Budget consultations, here today. Apart from suggesting specific measures to be taken by the Government to strengthen the cooperative movement in the country, Shri Sinha said they should also suggest measures which need to be taken by them for improving their efficiency.

    Some of the representatives called for allocation of more resources to the agriculture sector and strengthening of the primary agricultural credit societies. They also suggested comprehensive and extensive insurance cover for crops affected by droughts and floods. There were also suggestions for assured loan recovery system. One suggestion was for encouraging self-help groups which could mobilise cooperative credit and have links with NABARD.

    Other suggestions from the representatives included, formation of a cell in the Ministry of Finance to monitor credit structure, providing level playing field for Financial Institutions, doing away with Government guarantee to NABARD for extending loans, creation of a National Calamity Fund, reducing the rate of interest for extending loans by cooperative banks, treating cooperative banks like commercial banks and allowing them to raise resources from the public through equity and restructuring of the Central Cooperative Act.

    One of the participants suggested that in view of the globalisation and liberalisation, cooperatives should be allowed to register as companies and required changes could be made in the law. He also suggested that cooperatives should be allowed to consolidate through mergers and acquisitions.

    The Finance Minister said that cooperatives should look into bringing down intermediation cost by reducing different layers that exist between the primary source of lending i.e., NABARD and the loanee. He said that regulation of interest rate is entirely within the domain of RBI. He however said that subsidies could be provided but Government is moving away from subsidies.

    The participants included representatives from National Cooperative Union of India, State Cooperative Banks, Land Development Bank Association and Chairmen of several Cooperative Banks. Besides the Finance Minister, the Minister of State (Expenditure, Banking & Insurance), Shri Bala Saheb Vikhe Patil, Finance Secretary, Secretary Economic Affairs, Special Secretary Banking and Chief Economic Advisor also attended the meeting.

 

 

 

ALTERNATE SCHEME OF DEVOLUTION OF CENTRAL TAXES NOT TO CAUSE ANY LOSS TO STATES- GOVERNMENT CLARIFIES

 

    Government's attention has been drawn to certain reports appearing in the Press about the decision of the government regarding the alternative scheme of devolution of Central taxes recommended by the 10th Finance Commission (TFC).It has been averred therein that government has decided to change the sharing of gross proceeds as recommended by the TFC to the sharing of net proceeds and that as a result the states are set to loose about Rs 2000 crores. Ministry of Finance has clarified that this impression is not correct. The decision to modify the TFC recommendation of sharing of gross proceeds to sharing of net proceeds will not result in any consequent loss to the States. The Ministry has said that it is because the Government has also simultaneously decided to compensate the States by suitably enhancing the percentage share beyond 29 per cent.

    The Ministry has said that the decision to change gross proceeds to net proceeds has been taken in order to maintain consistency between Article 270, 279 and 280 of the Constitution. The Ministry has said that the recommendations of 11th Finance Commission which has been mandated to give its final report by 30th June, 2000 will cover the 5-year period w.e.f. 1st April, 2000.

    The recommendations of 10th Finance Commission was to freeze the share of 29 per cent for 15 years. However, the Government has decided that the percentage share of vertical devolution will be reviewed by successive Finance Commissions.