The Indian Textile and Apparel Industry provide maximum employment avenues after agriculture sector in the country. The textile and apparel products are the second highest foreign exchange earners with a high potential for growth in the first two or three decades of this new century. The industry is at the threshold of momentous changes ushered in by the MFA quota phase-out and the entry of free trade under the WTO framework. With a ‘fibre-to-fashion-supply chain’, Indian textiles and garment exports have unprecedented opportunities for expansion as the phase-out of quotas are completed by December 31, 2004. However, the new WTO regime with its multi-lateral rule based framework and far reaching implications are not sufficiently understood by the textiles and garment industry representatives. In order to help the industry members to strategise and draw up action plans under the WTO regime, NIFT in association with AEPC are organising a national seminar on "APPAREL EXPORTS IN THE NEW MILLENNIUM: India’s readiness to face WTO challenges". NIFT has been able to present in Mr. Richard Hughes, Counsellor Textile Division, WTO, Geneva as the key speaker in the inaugural session of this seminar.

‘7’

    The Government of India (Ministry of Law, Justice and Company Affairs) issued a gazette Notification last night constituting National Commission to Review the Working of the Constitution by a Government Resolution with immediate effect. The multi-member Commission will comprise a Chairman and ten members. Besides, there will be a Secretary to the Commission.

    The Commission will be headquartered at New Delhi and shall have a term of one year. It shall review the workings of the Constitution of India within the frame of Parliamentary form of Government without tampering with the basic features as stipulated by the Supreme Court of India.

    The text of the Resolution constituting the Commission is given below:

    "Whereas the National Agenda for Governance contains a pledge that a Commission shall be appointed to review the Constitution of India in the light of more than 50 years of its working and to make suitable recommendations for any possible changes and this pledge was affirmed in the President’s Address followed by a Motion of Thanks from both Houses of Parliament;

    " Now, therefore, in fulfillment of that pledge, it is resolved to constitute the ‘National Commission to Review the Working of the Constitution".

    "The Commission shall consist of a whole-time Chairperson who shall be a person of distinction with knowledge and expertise of constitutional issues and in the working of the democratic institutions of the Nation. In addition to the Chairman, the Commission shall have not more than ten other Members who shall be selected on the basis of their proven expertise and knowledge in the field of Constitutional law, economics, politics, law sociology, political science and other relevant subjects".

    "The Terms of Reference- The Commission shall examine, in the light of the experience of the past fifty years, as to how best the Constitution can respond to the changing needs of efficient, smooth and effective system of governance and socio-economic development of modern India within the framework of Parliamentary democracy and to recommend changes, if any, that are required in the provisions of the Constitution without interfering with its basic structure or features".

    "The Chairperson shall be paid a consolidated honorarium of Rs.30,000/- per month. His or her pension, if any, shall be deductible from the honorarium, in case he or she is a Government pensioner. The Chairperson shall be entitled to Government accommodation for residence of the type permissible to a public servant drawing pay of Rs.30,000/- per month".

    "The Government may appoint a Secretary to the Commission who shall be paid a consolidated pay of Rs.25,000/- per month. His or her pension, if any, shall be deductible from the pay, in case he or she is a Government pensioner. The Secretary shall be entitled to Government accommodation for residence of the type permissible to a public servant drawing a pay of Rs.25,000/- per month and if the Secretary is a serving public servant, he or she will draw his existing pay and allowances and will be entitled to a Government accommodation for residence as per his or her entitlement as such public servant".

    "Members of the Commission shall be paid only a daily allowance of Rs.1000/- while on duty".

    "The Chairperson of the Commission shall be his own controlling officer for the purpose of travelling allowance. The Chairperson shall also be the controlling officer for the purpose of travelling allowance in respect of Members and Secretary. The Chairperson and Members shall be allowed travelling allowance at the rates and as per rules applicable to the Government servants of the highest grade. Secretary to the Commission shall be entitled to travelling allowance at the rates applicable to the public servant drawing a pay of Rs.25,000/- per month and if he or she is a serving public servant, he will draw travelling allowance as per his entitlement as such public servant."

    "The Commission shall decide its own procedure and hear and entertain all persons, representations and communications which in the opinion of the Commission shall facilitate its work and final recommendation."

    "The Commission shall complete its work and make its recommendations within one year."

    "The Headquarters of the Commission shall be in New Delhi."

    "The research and other staff for the Commission shall be provided separately as part of the Department of Legal Affairs. Supervisory control over the research and other staff of the Commission, shall, however, vest in the Secretary of the Commission who will discharge his functions under the overall control of the Chairman."

    "The funding of the Commission shall be through separate budgetary allocation by the Government under the relevant budget heads of the Ministry of Law, Justice and Company Affairs (Department of Legal Affairs)."

'16'

    Shri Omar Abdullah, Minister of State for Commerce and Industry has outlined a long-term strategy for promotion of exports to Latin America which includes dissemination of information and awareness creation in India through seminars and buyer-seller meets, facilitate industry participation on a regular basis in various international trade shows organised in Latin American markets, sending trade delegations and missions to various countries in the Latin American region to strengthen trade ties and exploring new avenues for promoting economic collaborations. While speaking on the occasion of the inauguration of the National Seminar on "Building Trade with Latin America – Opportunities and Challenges", here today, Shri Abdullah said that efforts need to be directed towards implementing an action plan that could circumvent the inhibiting hurdles for the expansion of the Indo-South American Trade and Economic Relations. The inaugural session of the one-day seminar being organised by Confederation of Indian Industries (CII) was attended by the Ambassadors of Argentina, Chile, Cuba, Mexico and Columbia, Shri D.K. Mittal, Joint Secretary, Ministry of Commerce & Industry and other senior officials.

    The Minister said that he was happy to mention that India’s trade with the Latin American and the Caribbean region has registered an increase of over 200 per cent between 1991-92 and 1998-99. After experiencing an adverse balance of trade till 1996-97, India’s exports have shown a rising trend, he said. Enhancing trade with the Latin American and Caribbean countries was one of the important subjects engaging the attention of the Ministry of Commerce & Industry particularly since 1997 when "Focus: LAC" programme was initiated, the Minister added. While export basket consists of textiles, engineering goods, chemical & auto components, pharmaceuticals, India’s major imports from the region are iron & steel and their products, non-ferrous metals, crude minerals, chemicals, PVC, pulp & paper waste and raw wool.

    The Minister expressed his concern over the fact that the Latin American markets have so far been largely unexplored by the Indian exporters because of geographical distance and absence of fast and economic shipping and air-links between India and South America. Information gap arising from irregular exchange of information on business opportunities, lack of presence of business opportunities and lack of focussed and comprehensive market and export promotion strategies were some of the other factors responsible for low volume of trade between the two countries, Shri Abdullah said.

    Shri D.K. Mittal, while addressing one of the sessions in the seminar, said that Latin America was an important destination for India as the size of imports of LAC was huge and the economies of the two region were not mutually competitive but were rather complementing each other. Talking of the tremendous potential for trade that existed, Shri Mittal said that this was not confined only to the areas of products and commodities but there was huge potential in the area of export of services particularly in the banking and insurance sectors.

    Earlier, in his welcome address, Shri R. Seshsayee, Chairman, CII National Committee on Exports, said that the trade between India and this region was to the tune of US $ 473 million in 1991 which has gone up to US $ 1.4 billion in 1998-99 with the trade balance turning in India’s favour. CII has planned a comprehensive strategy to target the Latin American countries, he informed the delegates. Mr. Madhur Bajaj, Chairman, CII-Latin American Committee, in his concluding remarks said that while the traditional markets had reached a saturation point, it was the Latin American markets which afforded a huge export potential to the Indian exporters. CII would also be organising sector-specific seminars where it would invite buyers and sellers from Focus: Latin American Countries, he said.

'12'

    The Union Minister of Rural Development, Shri Sundar Lal Patwa has called for responsible use of plastic products by setting norms for its gauge regulations and recycling. He said the plastic is not biodegradable and remains in its original form in the garbage causing pollution. Expressing concern at this, he said the problem needs to be tackled effectively.

    The Minister was speaking at the launch of 'Plastpack 2000', an international exhibition on Plastic & Packaging which was organised here last evening by the Indian Plastpack Forum jointly with the Directorate of Industry, Govt. of Madhya Pradesh and Small Industries Service Institute, Govt. of India.

    Emphasizing on improving the quality of life of the vast majority of people living in rural areas, Shri Patwa said for this provision of clean drinking water, improved agricultural productivity, proper health care, clothing and shelter should given top priority. He said plastic has its use in all these areas. Iron pipes used for drinking water supply were prone to rusting and now are being replaced by PVC pipes. Polythene lining in water channels reduces seepage and leakage of water and brings more area under irrigation thereby increasing agricultural productivity.

    The Minister said the plastic packaging industry is ranked among top ten industries worldwide and has got a vast scope in Indian market. He expressed the hope that Plastpack 2000 will provide a big opportunity in the growth of plastic and packaging industry in the country.

    Presiding over the function, Smt. Sumitra Mahajan, Minister of State for Human Resource Development said the use of plastic is like a double-edged sword. She stressed the need for its proper recycling by applying appropriate technology.

'16'

    The Tariff Commission (TC), which was constituted under the Department of Industrial Policy & Promotion in September 1997 and is an independent body to recommend appropriate levels of tariffs keeping in view the larger economic interests of the country, is now gearing itself for the challenges in the new millennium by way of reorganising its organisation structure. Five specialised groups on different subjects viz., human resources development – to suggest organisation structures and staff patterns; WTO matters – issues impacting on Indian economy and trade; tariff rationalisation; tariff inventory – to monitor tariff rates of different countries and data-base have been set up to give specific inputs for various sectors. This was disclosed in a presentation made by the Chairman of Tariff Commission before Dr. Raman Singh, Minister of State for Commerce and Industry, here last evening.

    The Commission is also setting up seven multi-disciplinary sectoral groups in the fields of agriculture, textiles, automobiles, information technology, chemicals and steel & engineering to undertake impact analysis on various sectors, the Chairman informed the Minister. Collection and scanning of literature on international trade and WTO, updating its tools of analysis and improving library facilities to enable the organisation to appropriately deal with WTO issues, strengthening of its computer network infrastructure and training its manpower on WTO and tariff matters were some of the other initiatives being taken by the Commission to reorient itself.

    In his remarks after the presentation, Dr. Raman Singh said that the government would like to enlarge the role of the Commission to cover more contemporary issues in international trade. The Minister also promised to look into the various submissions made by the Tariff Commission during the presentation.

'16'

    India’s trade with China during April-October 1999 has gone up by over 13% in dollar terms to touch a figure of US $ 965.13 million compared to US $ 853.77 million during April-October 1998-99. Of this total trade volume of US $ 965.13 million, India’s exports to China accounted for US $ 268.71 million, up by over 25%, while India’s imports from China amounted to US $ 696.42 million, i.e., up by about 8.8% compared to trade during the same period of 1998-99. The balance of trade, however, continues to be in favour of China with the trade deficit estimated at US $ 427.71 million in April-October 1999.

    India’s trade with China had shown a declining trend during 1998-99, largely due to the severe recession in the Asian markets. However, accordingly to the latest trends, trade between the two countries is registering a double-digit growth. The major items of India’s exports to China are iron ore, marine products, cotton yarn, fabrics and made-ups, drugs & pharmaceuticals, organic/inorganic/agro-chemicals, castor oil, processed minerals, machinery and instruments etc. About 21% of India’s overall iron ore exports is to the Peoples Republic of China. The major items of import from China into India are organic and inorganic chemicals, electronic goods, raw silk, coal, medicinal and pharmaceutical products, textile yarn, project goods etc.

    Hongkong occupies a special position in the India-China bilateral trade as nearly 50% of India’s two-way trade with China is handled through Hongkong. At a time when Hongkong’s global imports have declined by 13%, India is amongst the few countries whose exports to Hongkong have registered an increase.

    The following is the text of the President, Shri K.R. Narayanan's address to the joint session of Parliament here today:

    "It gives me great pleasure to welcome you to the first session of Parliament in the year 2000. I felicitate the Members and extend to all of you my best wishes for the successful completion of the budgetary and legislative business that lies ahead.

    Last month India completed fifty years as a Republic. It was a proud moment in the history of this ancient civilization, which re-emerged as a free and democratic nation in the modern era. For all of us, the last fifty years have been a period of triumph and tribulation, of achievement and shortfalls. The Golden Jubilee of our Republic is, hence, an occasion for both celebration and reflection.

    If the global march of democracy was the hallmark of the 20^th Century, India has won worthy laurels for not only being the largest democracy in the world, but also zealously preserving it against all odds. The entire world looks to India with hope and expectation. Our founding fathers did their duty by giving us a great Republican Constitution. It is now our responsibility to transform our democracy into an effective instrument for the economic, social and cultural development of every Indian. As the Father of the Nation always exhorted us during our struggle for freedom, we must ensure that the first claim on the fruits of development belongs to the poor and the weak.

    The Constitution, which India adopted fifty years ago, has served us well. It has been a reliable guarantor of parliamentary democracy, secularism and fundamental rights, which all of us cherish. It has also inspired the spread of democratic consciousness in our society, empowering dalits, adivasis, backward classes and women and making our system of governance more participative and progressive. While keeping the basic structure and salient features of the Constitution inviolate, it has, however, become necessary to examine the experience of the past fifty years to better achieve the ideals enshrined in the Constitution. The Government has, therefore, set up a broad-based Constitution Review Commission. The recommendations of this Commission will be presented before Parliament, which is the supreme decision-making body in Indian democracy.

    India has undoubtedly had many spectacular achievements in the past five decades. There is no other experiment in human history where a billion people, belonging to so many different traditions, are living and striving together for a better life without being denied their rights and freedoms. We cannot, however, be satisfied with this alone. As the experience of the many newly-independent and developing nations has shown, fifty years is a long time to achieve all-round progress for all. If the first half-century of our Republic makes any demand on us, it is simply this: we must lose no more time to eradicate mass poverty, remove illiteracy and assure basic minimum services to all our fellow citizens. While accomplishing this historic task, we must simultaneously strengthen social justice, promote gender justice, remove regional imbalances and bridge the rural-urban divide.

    India cannot achieve the strength and prosperity that we all desire, and that our country is capable of, if vast areas and large sections of our population remain deprived and poor. Faster economic growth is a pre-condition for removing social and regional imbalances in development. The economic reforms started in the beginning of the last decade, with the express intention of accelerating economic growth, were a historical necessity. The shortcomings that have crept into our development process over the decades needed to be removed. It is a matter of pride and satisfaction that our country has implemented these reforms without social unrest and with a high degree of political consensus. These reforms are now yielding desired results in several areas. The sustainable rate of growth of our economy has increased. Our industry and financial system have become stronger and more competitive.

    The Government is committed to accelerating the pace of economic reforms and to broadening their scope. At the same time, we shall make conscious and concerted efforts to bring the fruits of economic reforms to those regions and communities that have so far not benefited from them. The approach to India’s economic development may have changed in the past ten years, but the goals of equity and social justice have not. We shall re-double our efforts to ensure that the poor and the deprived have an even greater stake in economic reforms than at present. We realize that this is essential for mobilizing people’s enthusiastic participation in the development process.

    The "Agenda for a Proud, Prosperous India", which is the common policy document of the Government of the National Democratic Alliance, provides the framework for faster development with equity and employment. The Government’s record of speeding up the work of taking decisions on policy issues and the passage of pending legislation shows its determination to fulfil the promises made in this Agenda. The Government will continue to vigorously pursue a coherent plan of economic reforms. These reforms will cover agriculture, industry, public enterprises, fiscal consolidation and devolution, tax reform, financial sector reform and foreign investment policies. Most importantly, they will also cover policies for improving the performance of key infrastructure sectors — namely, power, roads, railways, ports, civil aviation, telecommunications and petroleum.

    We are primarily a rural nation and most of our people depend on agriculture for their livelihood. Therefore, development of agriculture, particularly in the rainfed and drought-prone areas where poverty is extreme, shall be accorded high priority. This would call for substantial capital formation in agriculture and investment in the areas where productivity has been relatively low. As the agriculture sector still employs about two-thirds of our total workforce, greater investment in agriculture, including agri-businesses would be mobilized to enhance employment opportunities and create greater prosperity in rural areas. The Government will shortly finalize the National Agriculture Policy to address these issues.

    At present, the programmes relating to conservation, development and management of land resources are scattered in different Ministries and Departments in the Central Government. There is an imperative need to put in place an integrated mechanism capable of responding effectively to the challenges of managing our scarce land resources — especially those arising from globalization, liberalization and privatization. Government will therefore, bring all the programmes and schemes as well as the institutional infrastructure relating to land in rural areas, under the control of the newly created Department of Land Resources in the Ministry of Rural Development.

    Special programmes for the generation of productive wage employment in the rural areas, especially for creating permanent infrastructure assets and self-employment opportunities for the unemployed youth will be given greater thrust. The Swarna Jayanti Gram Swarozgar Yojana, the Jawahar Gram Samridhi Yojana and the restructured Employment Assurance Scheme will be vigorously implemented and closely monitored.

    The process of urbanization has led to a rapid rise in the proportion of Indians living in cities and towns. Sadly, the rate of growth of urban infrastructure, civic amenities has not matched the explosion of our urban population. The Government realizes that urban renewal is critical to the emergence of a new and resurgent India. This calls for a better coordination among the Centre, States and municipal authorities to effectively implement the policies and programmes on urban employment, housing construction, transportation and other utilities. The Government will facilitate increased public and private investment in the development of physical and social infrastructure, with an emphasis on improving the living conditions of the urban poor. It will step up efforts to promote good municipal governance.

    Our nation’s future lies with our children and youth. The Government will soon set up a National Commission on Children to promote and channel all the efforts in the government and non-government sectors to achieve their all-round development and to unleash their creative energies both now and when they grow up. All existing programmes for sports and youth affairs will be reviewed and re-activated to give effect to our resolve to encourage physical, social and cultural development of our young men and women.

    A decision has been taken to launch Sarva Shiksha Abhiyan to ensure that every child in the age group of six to fourteen goes to a school, or an Education Guarantee Centre, or a "Back to School Camp" by 2003. We shall intensify efforts to involve the non-governmental sector in higher and technical education. The Government proposes to come out with a policy that would fully incorporate non-governmental efforts within the national endeavour to provide Education For All.

    Women constitute half the Indian population but their status in our society is poor. They are largely excluded from decision-making in public life. No nation can progress unless its women enjoy good health, are literate and are equal partners with men in the socio-economic and political processes. Our Constitution guarantees equality and non-discrimination between men and women and we are committed to achieving this objective. The Constitution (85^th Amendment) Bill, 1999, seeking to provide reservation of not less than one third of the seats for women in the Lok Sabha and in Legislative Assemblies of States, was introduced in the Lok Sabha during the last session. The Department of Women and Child Development will also soon finalize a National Policy for Empowerment of Women, which aims to mainstream gender into laws, policies, programmes and budgetary allocations of the Government. The Indira Mahila Yojana will be made more effective and expanded to 450 more blocks.

    India has one of the largest populations of older people in the world. In recent years, there has been a withering away of the joint family system, which has exposed elderly people to emotional neglect and a lack of physical support. The Government has formulated a National Policy on Older Persons and has established a National Council for Older Persons to focus on problems faced by our senior citizens. An Expert Committee has recently submitted a report on a proposed pension scheme for old age security, which is being examined by the Government. A decision will be taken on this scheme shortly.

    When I last addressed both Houses of Parliament on October 25, 1999, I had taken the opportunity to lay before you the medium-term economic agenda of the Government. Since then, the economic data suggests a distinct upturn in the economy. Economic growth in 1999-2000 is expected to be around six percent. Inflation has also remained well under control during the current fiscal 1999-2000. Our foreign currency reserves at over US $ 32 billion are also comfortable. There has been a general upward trend in stock indices, primarily due to the revival of the industrial sector. To build on these clear economic strengths, we must seize the opportunity to deepen and accelerate the reform process.

    I am happy to say that the Government has begun to implement the medium-term economic agenda outlined by me in my last address to Parliament. I will briefly dwell on these issues:-

    The Telecom Regulatory Authority of India (Amendment) Ordinance, 2000 was promulgated to strengthen the TRAI. This will remove many hurdles in the path of speedy development of telecom services, increase investor confidence and create a level playing field between public and private operators. The corresponding Bill will be brought before Parliament in the current session.

    A Group of Experts has been constituted to recommend a new legislation reflecting the phenomenon of the Convergence of IT, Telecom and TV in place of the Indian Telegraph Act, 1885.

    The Government has already initiated a major programme of road construction to be called the National Highway Development Project consisting of the Golden Quadrilateral and the East-West, North-South Corridors costing Rs. 54,000 crore. We will ensure the speedy implementation of this vitally needed highway network.

    The Government is carrying forward the restructuring and reform process in the power sector. Emphasis has been given on development of hydel power, particularly in the North-Eastern parts of the country. The national power grid will be strengthened to facilitate efficient inter-regional power flows.

    In the petroleum sector, under the New Exploration Licensing Policy, 25 blocks have been awarded in a record time, thereby accelerating domestic exploration efforts. The Group on India Hydrocarbon Vision-2025 has also finalized its recommendations and the Government will initiate early action to implement them.

    A Bill to amend the Coal Mines (Nationalization) Act, 1973 will be introduced in the current session of Parliament to allow Indian companies in the private sector to undertake coal mining.

    It has been decided to enable private participation in the airport sector through long-term leasing of airports. The existing airports of Delhi, Mumbai, Chennai and Calcutta will be given out on long-term lease basis while a new international airport at Bangalore will be developed as a greenfield venture with private sector participation. This will go a long way in improving the airport infrastructure and the functioning of our airports to world class levels.

    The Government has also decided to take innovative steps to bring about a major improvement in the working of our ports and to develop other efficient and modern port facilities with greater private sector participation.

    The Information Technology Bill, 1999 to promote E-Commerce was introduced in the Lok Sabha in its last session.

    A National Venture Capital Fund of Rs. 100 crores for promoting new Information Technology businesses by promising entrepreneurs has been launched. Guidelines to allow acquisition of foreign companies abroad by Indian IT companies have been liberalized. To accelerate the growth of high-speed Internet services in the country, a liberal policy for setting up international gateways and use of foreign satellites for greater bandwidth has been put in place. Further measures will soon be taken to promote the spread of the Internet and telecom services, especially in rural and backward areas.

    The Ministry of Information Technology is taking further initiatives to promote the development of the IT industry in the country. These include the proposal to establish the "India IT and Software Brand Equity Fund" to facilitate greater usage of IT for increasing productivity in small and medium enterprises, developing Indian initiatives in E-Commerce and setting up IT-enabled services and distance education programmes.

    The Insurance Regulation and Development Authority Act was passed by Parliament in its last session. This will enable participation by private Indian companies in the insurance sector leading to better service to customers, as well as mobilization of larger long-term investment for faster economic development.

    The Government has reviewed and recast the Foreign Direct Investment regime, enabling an automatic route for FDI clearances except in a small list of carefully chosen areas. This will bring in greater transparency, cut delays and create an enabling framework to ensure FDI inflow of at least $ 10 billion a year.

    The Debt Recovery Tribunal Act has been amended by an Ordinance. It is one of the crucial measures underpinning financial sector reforms. The corresponding Bill for replacement of the Ordinance by an Act will be introduced in Parliament in the current session.

    The Second Labour Commission has been constituted to suggest changes in various labour laws in order to achieve the goals of labour welfare, generation of additional employment, higher investment and accelerated industrial growth.

    A major milestone in tax reforms was achieved with the introduction of a uniform rate of sales tax throughout the country from January 1, 2000. This was made possible by close co-operation between the Centre and the States. As a progressive step towards further tax rationalisation, the States have also decided to move over to a Value-Added Tax (VAT) regime with effect from April 1, 2001.

    A large number of outdated or inessential laws and regulations have been removed from the statute book. This is a part of the Government’s continuing effort to speed much-needed legal reforms.

    However, the growing fiscal deficit continues to be an area of considerable concern. This is undoubtedly the most challenging macro-economic management problem faced by us. The deficit reduces public investment, crowds out private investment, raises interest rates and generates inflationary pressure. The burden of interest payments continues to be large at above 4 per cent of GDP, accounting for about two thirds of tax revenue of the Central Government net of States’ share. As the interest burden on Government borrowing increases, it limits the ability of the Government to expand health and education services and anti-poverty programmes. Subsidies on non-merit goods which are currently very high, have to be brought down and phased out.

    For India to sustain accelerated growth with high employment coupled with modest inflation, the growing fiscal deficit needs to be contained. We have to adopt measures to curb the rising trend of Non-Plan Expenditure. These require difficult decisions relating to the quality of Government expenditure, downsizing the Government, recovery of economic cost for goods and services and greater austerity in Government spending. The programme of disinvesment and restructuring of Public Sector Undertakings also needs to be accelerated. Our tax system must be modernized for improving Tax-to-GDP ratio. If we achieve fiscal consolidation, then given our stable macro framework, India can truly hope to achieve growth rates of well over seven percent in the coming years. If sacrifices have to be made for achieving this challenging goal, they are well-worth making because the long-term rewards of restructuring will benefit all Indians and will far outweigh the temporary costs.

    The financial condition of the States is very worrisome. State Government finances have shown signs of rapid deterioration in the nineties. The year 1998-99 witnessed a very high gross fiscal deficit of States amounting to more than Rs.75,000 crores, touching a level of 4.3 per cent of GDP. This is, indeed, an unsustainable situation. The deteriorating trend in the fiscal position of State Governments needs to be urgently reversed. The Central Government has, therefore, initiated necessary measures in consultation with the States, to seek policy reforms aimed at fiscal correction and consolidation to bring about long-term sustainability of the fiscal position of the States.

    The Government is committed to the speedy economic development of the North-Eastern States. The North-Eastern Council is being expanded to include Sikkim and we shall strive to make it an effective agency for accelerated development of these States. In a meeting last month at Shillong, the Prime Minister, accompanied by the Home Minister, Defence Minister, Finance Minister and the Deputy Chairman of the Planning Commission, reviewed development and security issues with the Governors and Chief Ministers of the North-Eastern States and Sikkim. All assistance is being provided to those North-Eastern States that are affected by terrorism and anti-social activities.

    The Government has announced an ambitious programme of over Rs.10,200 crores for socio-economic development of the North-Eastern States and Sikkim. This programme includes new initiatives in industry, health, education and security. It will also give a major impetus to infrastructure development in the region, especially power, roads, railways, airports and telecommunications. An important objective of this initiative is to create large-scale local employment. Trade with neighbouring countries is also going to be a thrust area for development of this region.

    The super-cyclone that struck Orissa in the end of October caused the death of thousands of people and devastated the social and economic life of a large section of the State’s population. The entire country participated generously in supplementing the Government’s efforts to mobilize relief and rehabilitation for the affected people. We express our appreciation for the excellent work done by the armed and paramilitary forces, the meteorological department, the Railways, port authorities, other government departments and agencies like the Food Corporation of India, the relief teams sent by State Governments as well as non-governmental and charitable organizations. To minimize the effects of natural calamities, the Government has set up a high-powered committee to prepare a Natural Disaster Management Plan. This will review existing arrangements for preparedness for natural disasters and their mitigation. It will recommend measures for strengthening the organizational structures and formulate a comprehensive model plan for natural disaster management at the national, state and district levels.

    In the global context we shall continue to work for the establishment of a rule based, non-discriminatory multilateral trade system, which is fair and equitable to all nations. As a founder member of the GATT and the WTO, India has been an active participant in all the previous international trade negotiations and in all the three WTO ministerial meetings. India has always pursued its mission for greater equity and symmetry in trade relations and for avoidance of linkage of trade with extraneous issues. Economic integration cannot advance if the interests of the poor are ignored. As a developing country, India is sensitizing other member nations to this reality. We would continue to persevere for equitable implementation of the provisions of the Uruguay Round of negotiations.

    In the months following the military coup in Pakistan, there has been a marked increase in Pakistan-sponsored cross-border terrorism, targeted especially at our security forces. There has also been an increase in Pakistani firing across the border. These developments underline the need for constant vigil by our defence forces. However, the threat of terrorist attacks is one that affects all Indian citizens. We must, as a people, become more security-conscious in the face of the unremitting terror campaign against our country. For its part, the Government is fully alert to all threats to India’s external and internal security. We are prepared to meet any challenge to our territorial integrity and to our open, democratic way of life.

    I salute the brave jawans and officers of the Indian Army who are standing guard along the LoC in the Kargil and other sectors, far from their families and loved ones. It is a tribute to the courage, determination and dedication of our forces that they have withstood freezing temperatures of minus 40 degrees celsius and below and the hardship of patrolling snow-bound heights. It is due to the valour and skill of our soldiers that our frontiers are secure from enemy forces.

    The Subrahmanyam Committee, appointed by the Government to inquire into the events and circumstances that formed the backdrop to Pakistan’s armed incursion into Kargil and other parts of the LoC, has submitted its report. This will be tabled in Parliament during this session. The Government is committed to take all necessary follow-up measures after a thorough scrutiny of the committee’s recommendations.

    Backing up our soldiers are our defence scientists and defence production units. I am happy to inform the Honourable Members that, since I last addressed both Houses of Parliament, our defence scientists have added two major successes to their list of achievements. The short-range, quick-reaction-time surface-to-air missile, Trishul, has been successfully tested. The remote-controlled Nishant has been successfully flight tested. Our defence production units have proved their capability to produce sophisticated defence equipment. Production in ordnance factories in the first nine months has been higher by 33 percent, compared to the corresponding period last year.

    The overall law and order situation in the country has remained satisfactory except in certain areas affected by Pakistan-sponsored terrorist and separatist activities. Terrorist violence has been most pronounced in Jammu and Kashmir, especially after Pakistan’s defeat in Kargil and the military coup in Islamabad. Government, both at the Centre and in the State, has met the challenge posed by Pakistan-backed terrorists and foreign mercenaries with determination. We are continuing with our four-pronged strategy to counter terrorist and separatist violence in Jammu and Kashmir by deepening of the democratic process, accelerating economic development, isolating foreign mercenaries and terrorists and playing a pro-active role to neutralize them. Apart from strengthening and modernizing the Jammu and Kashmir police, Government has been reimbursing the State’s security related expenditure and providing financial support over and above the normal Plan assistance. I acknowledge the invaluable contribution of our armed forces, paramilitary forces and police personnel in combating terrorism and extremism in Jammu and Kashmir and some other parts of the country.

    The Government is fully committed to preserving and further strengthening the secular ethos of our country. Communal harmony in the country has improved remarkably in the past few years. The last two years have been largely free of communal violence. In 1999, this trend gathered speed with the number of communal incidents declining by 10 percent, the number of people killed by 32 percent and the number of injured by 11 percent.

    The Government stands by its promise to create the States of Uttaranchal, Vananchal and Chhattisgarh. Bills for this purpose are being referred to the concerned State legislatures for their views.

    The Inter-State Council has been reconstituted. Based on the experience of its working in the past, the Government will make it an effective platform for further harmonizing the relations between the Centre and the States and among the States themselves.

    Our space programme continues to forge ahead in establishing systems that are crucial for telecommunications, broadcasting, meteorology, disaster warning and management of natural resources. India has established indigenous capability to launch Indian remote sensing satellites into the required polar sun-synchronous orbit. We are now well on our way to develop the geo-synchronous satellite launch vehicle. The INSAT system is one of the largest domestic satellite systems in the world and the next satellite in this system, INSAT-3B, is awaiting launch. It is scheduled to be commissioned in March-April 2000.

    The Government continues to pursue its policy of harnessing nuclear energy for peaceful purposes for the welfare of the people. All our nuclear plants have been operating smoothly and their average capacity factor has increased from 75 percent to 78 percent. India’s eleventh nuclear power reactor at Kaiga in Karnataka achieved first criticality on September 21, 1999 and has been connected to the grid. The twelfth nuclear power reactor at Rawatbhatta in Rajasthan achieved first criticality on December 24, 1999.

    The Government is fully committed to support science and technology in the interests of national development and national security. However, a serious concern that needs addressing is that not enough young men and women are taking up careers in research and development. The Government is committed to reversing this trend by guaranteeing our highly talented young persons an attractive career profile, so that they can produce world-class scientific research and technological development while living and working in India.

    The Government is committed to rapidly moving towards electronic governance, which will ensure better citizen-Government interface and greater transparency. In order to increase accessibility to and application of computers, the Government has intensified efforts in developing and promoting software for popular applications in Indian languages. I am happy that many State Governments have also taken major steps to complement the Centre’s thrust to make India a front-runner in the IT revolution.

    India’s foreign policy of Non-Alignment and peaceful co-existence is relevant to the multi-polar world of today. This is based on the principle of protecting our vital interests and promoting our national ideals. The Government continues to pursue the policy of continuously expanding and deepening its friendly, close, wide-ranging and constructive relations with our neighbouring countries — Nepal, Bangladesh, Sri Lanka, Myanmar, Maldives and Bhutan. Regular interaction with these countries has contributed to further strengthening of ties and mutual appreciation of each other’s interests, sensitivities and concerns.

    However, Pakistan has shown no inclination to end its policy of aiding and abetting cross-border terrorism and its hostile anti-India propaganda. Pakistan’s role in acts of terror has been recently underscored by the hijacking of the Indian Airlines flight from Kathmandu. Irrefutable evidence has been provided by the Government about the Pakistani origins of the hijackers as well as the role of Pakistani officials posted in Kathmandu. We sincerely hope that Pakistan will reverse this policy of hostility towards India so that normal relations could be restored.

    The return of peace and tranquillity in Afghanistan is important for the stability of our region. It is also necessary for curbing narco-terrorism. Above all, it is needed for the people of Afghanistan with whom we have age-old ties. It is only through the setting up of a broad-based Government in Kabul, truly representative of all ethnic groups and the cessation of Pakistani interference, that peace can be restored in Afghanistan.

    We shall continue to deepen and broaden our relations with our extended neighbourhood of Central Asia, West Asia, the Gulf and the Asia-Pacific Region. We value our relations with our Asian neighbour China and we will commemorate the fiftieth anniversary of the establishment of diplomatic relations with China. In this context, I am looking forward to my State visit to China in May this year. We hope that the Middle East peace process would reach a satisfactory conclusion. Our relations with Israel will continue to grow. India values her close and friendly relations with the European Union, as well as with the countries of East Europe, with whom our ties of traditional friendship have seen a new dynamism in recent years. We will further strengthen our friendship with African, Latin American and Caribbean countries.

    India looks forward to the consolidation of her time-tested, comprehensive relations with the Russian Federation into a strategic partnership. We await a visit to India by the President of the Russian Federation and the signing of the Declaration on Strategic Partnership between our two countries.

    Relations with the United Kingdom, Germany, Japan and France have shown a gratifying consolidation in recent times. As a result of high-level decisions, we have launched a strategic dialogue with France that has produced encouraging results. The Indo-French Forum has also imparted a new dynamism to our engagement with France in the fields of culture, science and technology and business. I am looking forward to my State visit to France scheduled for April this year.

    The Government has continued to engage the United States in a serious dialogue on security, non-proliferation and disarmament issues predicated on India maintaining a credible minimum nuclear deterrent. A significant outcome of this dialogue is the decision to set up a Joint Working Group to deal with cross-border terrorism, which is a menace to the whole world. We expect that President Clinton’s visit to India next month will pave the way for a broad-based, multi-dimensional expansion of our bilateral relations.

    India reaffirms her commitment to global nuclear disarmament in a time-bound manner on a comprehensive and non-discriminatory basis. While addressing multilateral disarmament initiatives and treaties, the Government will continue to abide by the imperative of preserving India’s strategic autonomy.

    The growing challenge posed by non-conventional threats, in particular by terrorism to global security, calls for urgent international co-operation and action so that these can be dealt with effectively. We call for the early adoption and implementation of a Comprehensive Convention on International Terrorism. India shall participate in any global effort to battle this crime against humanity.

    Our vision of achieving a higher growth rate is not aimed at benefiting only the rich or the middle-class. On the contrary, the poor are the centre of our developmental efforts. We must recognize that we cannot improve the lot of the common man without achieving high rates of growth in our economy. Only an expanding economy can ensure growing employment and rising incomes for all. Unless India’s GDP grows at a brisk rate of seven to eight percent a year, there is no way we can banish poverty and underdevelopment. Higher growth alone will ensure that we can mobilize larger and larger resources for the social sector — for education, health, drinking water, sanitation and roads — particularly for those living in the villages and in urban slums. Towards this end, the Government stands committed to implement the social and economic agenda outlined in my last address to both Houses of Parliament.

    Honourable Members, we begin the Budget session today, after transacting record legislative business in the last Winter Session of Parliament. Apart from financial business arising out of the General and Railway Budgets and the statutory requirement of replacing two Ordinances by Bills, we have a large agenda of legislative business relating to all-round development of our economy and society. The Government is keen to complete this agenda in this very session.

    I convey my best wishes to you all.

Jai Hind!"

'38'

    Union Minister for Water Resources, Dr. C.P. Thakur, has stated that his Ministry has taken up the implementation of pending schemes in the North-Eastern States on a war-footing and also to execute new schemes to solve some of the burning problems related to the development of water resources in the North-East. He has emphasized that the harnessing of potentials in the Water Resources Sector of North-Eastern States would receive the highest priority of the Union Government. Schemes for flood control and flood management in the North-Eastern States will also receive similar impetus.

    In a direction given to the Ministry, Dr. Thakur has categorically affirmed his commitment for the speedy development of irrigation potential in the North-Eastern States. The projects referred to the Centre by these State Governments would also be cleared expeditiously. This follows the Prime Minister’s commitment given during his recent visit to the North-Eastern States.

    The Central clearance to Pagladiya Dam Project at an estimated cost of Rs. 540.99 crores is a milestone in this direction. This project, proposed to be implemented by the Brahmaputra Board, has been cleared by the Planning Commission and a PIB Memo is under consideration in the Finance Ministry. The Ministry of Water Resources has proposed to appropriate funds of Rs. 81.5 crores during the remaining 2 years of the 9^th Five Year Plan. An EFC Memo costing Rs. 140 crores has also been submitted to Planning Commission and Finance Ministry, which proposes exclusively the flood control schemes in Brahmaputra Valley for the States of Assam, Nagaland and Arunachal Pradesh. The funding pattern will be 90% Central grant and 10% contributions from the concerned North-Eastern States.

    Besides this, Central Water Commission has given green signal to 28 schemes of the Assam Government costing upto Rs. 3 crores meant for control of floods and erosion. Similar directions have also been given in respect of other such schemes concerning the North-Eastern States. For example, four other schemes costing more than Rs. 3.00 crore each have also been cleared by the Ministry. These schemes include, Raising and strengthening of Brahmaputra Dyke from Biswanath to Ponpur, protection of Dangaigoan and Bhirangoan villages from erosion of river Aie, improvement of flood embankment along the left bank of river Barak (Assam State) and controlling of Gainadi for protection of Railway and Road communication (Arunachal Pradesh). These steps will go a long way in tackling the problems of floods and river erosion in the entire North-East.

    The Vajpayee Government has also given serious consideration to the protection of Majuli Island in Assam, which is considered to be the world’s largest river-island. The people inhabiting Majuli Island have been facing serious threats of erosion due to mighty Brahmaputra river. An EFC Memo costing Rs. 252.11 crores for the protection of Majuli Island has been prepared as a new scheme of IXth Plan. The project is proposed to be implemented in three years by the Brahmaputra Board with 100% Central grant.

    Dr. Thakur has also proposed to convene a meeting of all Members of Parliament from the North-Eastern States during the current session of the Parliament to be followed by his visit to the North-East in the month of April this year to expedite the completion of these projects in the North-East.

'25'

    The Surface Transport Ministry is initiating a proposal for revamping the existing Central Road Fund (CRF). The revenues from the cess collected from petrol and high speed diesel would accrue to the revamped CRF and would be used for development of National Highways and rural roads. The Surface Transport Minister, Shri Rajnath Singh told the Parliamentary Consultative Committee attached to his Ministry yesterday that he was optimistic that with this committed stream of resources, the National Highways network in the country would see a qualitative change in the years to come.

    Referring to the Prime Minister’s ambitious National Highway Development Project (NHDP) to improve mobility on the National Highways, the Minister said that the National Highways falling on the alignment of Golden Quadrilateral and the National Highways falling on the alignment of North-South and East-West corridors would be upgraded/widened to 4/6 lanes. The Golden Quadrilateral part of the entire project, he said, would be completed by March 2003 and efforts were on to reduce the target time fixed for completing the works on the corridors.

    He said funds for the entire National Highway Development Project estimated to cost Rs.54,000 crores at current prices would come from the steady revenue stream from the revamped Central Road Fund. Funds would also be mobilised from funding agencies like World Bank and Asian Development Bank etc. The National Highways Authority of India (NHAI) would also establish a limited number of special purpose vehicle companies and would arrange institutional loan on non re-course finance basis. Private sector participation would also be encouraged for stretches of National Highways where traffic volumes are large. Legal framework and policy directives have been put in place and Model Concession Agreement (MCA) for major and minor projects to be undertaken on Built, Operate and Transfer (BOT) basis to further attract private investment in the Highway sector has been finalised, he said.

    The Minister informed the Members that during the current IX Five Year Plan, his Ministry had declared an additional length of 17,712 kms of State roads as National Highways bringing the total length of National Highways from 34,298 kms at the end of VIII Five Year Plan to 52,010 kms as of date. He said the investment required had considerably increased from the earlier estimate of Rs.74,500 crores (at 1996 prices) as worked out by the Working Group constituted for the preparation of IX Five Year Plan.

    Shri Rajnath Singh said that his Ministry was aiming at connecting the entire country with a 100 kms grid on National Highway network; the ultimate aim being that no part of the country would be more than 50 kms away from National Highways.

    Secretary (Road Transport & Highways), Shri Ashoke Joshi and Chairman, NHAI, Shri Deepak Das Gupta and other senior officers from the Ministry of Surface Transport were present.

    Members of Parliament who participated in the deliberations were Dr.Ranjit Kumar Panja, Shri A.K.Murthi, Shri Nand Kumar Singh Chauhan, Shri Ramsheth Thakur, Shri V.Vetriselvan, Shri K.Malaisamy, Shri P.Radhakrishnan, Shri A.Brahmaniah, Shri Shyam Lal Baniwal, Shri Sheeshram Singh Ravi and Shri Jarbom Gamlin (all Lok Sabha).

    Members said that development of roads should get top priority. They pleaded for more funds for development of roads in their respective states. Some Members suggested upgrading State Highways to National Highways and for providing linkages to NHs. Some others complained about the poor maintenance of roads in different parts of the country by State Public Works Department. A Member pleaded that the cess being collected on petrol and high speed diesel be exclusively reserved for development of National Highways. Another Member suggested that maintenance of National Highways in the North East be entrusted to Border Roads Organization. Some Members expressed concern at the increasing number of accidents on National Highways. Some others wanted medical facilities being provided on National Highways for accident victims.

‘7’

    The Union Minister of Law, Justice and Company Affairs Shri Ram Jethmalani received a large delegation of lawyers representing the prestigious Akhil Bhartiya Adhivakta Parishad led by Shri U.R. Lalit, Senior Advocate, Supreme Court of India and former Judge, Bombay High Court, National President of Akhil Bhartiya Adhivakta Parishad, Shri D.R. Mahajan, President of Adhivakta Parishad, Delhi, Senior Advocates and Advocates practicing in all courts in Delhi including the Supreme Court, Delhi High Court, Tis Hazari Court, Patiala House Court, Kadkadooma and Taxation Bar. They expressed complete support to the recent changes in the Civil Procedure Code and showed their confidence that this was a rational and effective step in the direction of reducing the chronic and disgraceful delays in the legal system. The delegation condemned strikes as a means of representing grievances of the Bar. Their representation states, "strike obstructs justice delivery to those against whom Bar has no grievances and for whom the Bar exists".

    The delegation did express its concern about the proposed periodic examination and participation of foreign lawyers in India.

    The Law Minister assured the delegates that these were two proposals floated in a Working Paper of the Law Commission of India. There would be a nationwide debate before any final decision was taken by the Government. Shri Jethmalani hoped that organisations of the Bar and individual lawyers would participate effectively in the ensuing debate.

    The Law Minister assured the delegation that the Government was prepared for a dialogue at any time and place but no one should expect the Government of India to succumb to a threat of strike which is unjustified and according to the Supreme Court judgement illegal.

'16'

ABDULLAH ENUMERATES POTENTIAL AREAS OF MUTUAL COOPERATION

    India and Morocco have expressed hope that the trade ties between the two countries would get a fillip in the coming times and both sides have agreed that steps could be taken to diversify the trade basket so as to raise bilateral trade to a figure beyond US $ 1 billion. Mr. Alami Tazi, Minister for Industry, Commerce & Handicrafts, the Kingdom of Morocco who called on Shri Omar Abdullah, Minister of State for Commerce and Industry, here last evening, said that the frequent interaction between the two countries would enable them to reach this figure which presently stood at US $ 400 million. While admitting that the trade relations between the two countries were healthy, Shri Abdullah pointed out that India was concerned about its limited exports to Morocco, the bulk of which was primarily based on exports of phosphates. He said that tea and tobacco were two areas which provided an immediate potential for Indian exports to Morocco. The Tea Board, he informed, was already working on developing good quality green tea which is available in Himachal Pradesh and is much liked by the people of Morocco. The Tea Board was also exploring the possibility of setting up an office at Casablanca to take advantage of Morocco’s unique location on the world map, he said.

    He also said that India could use Morocco’s strategic geographical location and its agreement with the EU to increase its trade in at least three directions i.e., access to EU markets, sub-saharan Africa and the Arab world. Shri Abdullah said that India had acquired skill and experience in various areas such as construction, projects, railways, tourism and recently information technology, which it was keen on sharing with its friendly countries such as Morocco.

    Shri Alami Tazi said that Morocco would like to import raw material from India to produce pharmaceuticals, tea and tobacco. He also hinted at the possibility of Morocco buying wheat from India. He also informed Shri Abdullah that Morocco was in touch with the Oberoi group of hotels which was planning to set up hotels in Morocco. He hoped that this would lead to an increased influx of Indian tourists to Morocco. On the international front, the Moroccan Minister said, that Morocco was ready to work hand-in-hand with India in tackling some of the major issues for the benefit of the developing and the least developed countries.

    Earlier, Shri Abdullah called on H.E. Mr. Abderrahmane Youssoufi, HH Prime Minister of Kingdom of Morocco, where he expressed India’s willingness to partner Morocco in the areas of pharmaceuticals, construction, railways and tourism. He apprised the Prime Minister about India’s balance of payments position with Morocco and how Indian exports to Morocco could go up by diversifying the trade basket between the two countries. He also discussed areas of mutual concern such as the WTO and its effect on developing countries with Mr. Youssoufi. The Moroccan Prime Minister reiterated his commitment to seeing changes in the Security Council of the UN which would be favourably balanced towards the developing and the least developed countries.

'6'

STRENGTHEN PRODUCTIVE POTENTIAL OF SMALL FARMERS-SOM PAL

    Agro-climatic planning project has to be formally rooted into the implementation programmes at the field level to strengthen the productive potential of small farmers and to bring them into the main stream of economic development. Shri Som Pal, Member, Planning Commission, said this while presiding over the 11^th Annual Review of ACRP. He said region specific solutions and models need to be adopted in different states and the State governments should also emulate the success achieved by the other States while encountering similar problems.

    Shri Som Pal also stressed upon the importance of data coalition from the village upwards for the purpose of planning and utilization of resources at State and district levels. He said resource based strategies prepared by the planning teams were important source for the development of agriculture sector. The need was to focus on implementing strategies for sustainability and creation of employment opportunities.

    He said ACRP could be a useful mean towards putting diverse regions possessing tremendous potential into fast tract of development. Post harvest care needs to be improved and for that research efforts have to be encouraged.

    ACRP was initiated in mid - 1988 given the considerable diversities in the agro-climatic and economic conditions across the country. The meeting was held to review the functioning and progress of the different activities under the ACRP project, namely functioning of the Zonal Planning Teams, Experimental Projects, Institutionalization Activities and the Agro-climatic Planning and Information Bank.

    The meeting was attended by senior officers of Central Ministries, officials of the state governments, Vice Chancellors of State Agricultural Universities, officials from the Planning Commission and other experts.

'44'

    A Memorandum of Understanding (MOU) was signed between the Ministry of Mines & Minerals with the Ministry of Energy and Mines of Morocco for cooperation in the fields of Geology and Mining here, yesterday. The Minister of State for Mines & Minerals Prof. Rita Verma and Minister of Energy and Mines of Morocco Dr. Youssef Tahiri signed the MOU.

    In Geology, under the MOU, India and Morocco have agreed to promote cooperation in computer processing of Geological, Geophysical and Geochemical data/ maps with application of GIS Software and application of advanced laboratory techniques for dating of rocks. Application of digital image processing in mapping would also be undertaken. Cooperation is also proposed for training facilities mainly for Moroccan scientists in India in all fields of Geological and Geophysical mapping and exploration.

    In the area of mining exploration, the MOU further provides for mutual cooperation in mineral processing and development, generation of environment base line data for mining projects, environmental audit and risk analysis and preparation of disaster management plan for site specific projects. Cooperation is also proposed in drafting of mineral legislation for conservation, development and regulation of mineral patrimony. Mutual assistance will promote joint ventures between specialised organisations in the fields of Geology and Mines.

    A joint Committee of evaluation presided over by Ministers representing the two parties shall be responsible, under the MOU, for the implementation of programmes, review of progress and the evaluation of results. This Committee could include experts and/or create Committees for the realisation of specific projects, subject to the approval of both parties.

    In Morocco, the mineral industry including mining and processing of phosphate rock and fertilizers is a major revenue generating industry. Mining sector contributes to approximately 40% to 50% of the Moroccan export earning. India is one of the most important trading partners for Morocco. On the basis of the export of phosphate and phosphoric acid alone, India ranks within the first five export markets of Morocco. India imports approximately half of Morocco’s phosphate.

‘7’

    The Government issued a gazette Notification today appointing Chairman and Members of the National Commission to Review the Working of the Constitution of India. Accordingly, the Commission shall have a Chairman and ten Members.

    Shri Justice M.N. Venkatachalaiah will be the Chairman of the Commission. The Members of the Commission will be S/Shri Justice B.P. Jeevan Reddy, Justice R.S. Sarkaria, Justice Kondapalli Punniah, P.A. Sangma, M.P., Soli J. Sorabjee, K. Parasaran, Subhash Kashyap, C.R. Irani, Abid Hussain and Smt. Sumitra Kulkarni.

    The appointment of Secretary to the Commission will be notified later.

‘5’

    Proactive intelligence gathering, intelligence sharing and better coordination among Central and State Governments, intelligence agencies and Security Forces has resulted in a reduction in poll related violence during the Assembly elections in the States of Bihar, Manipur, Orissa and Haryana concluded on February 22, 2000

    Better effective deployment of Central Security Forces, in spite of limited availability due to counter insurgency requirements in J&K, was achieved by better planning and spreading over the elections in three phases. Although 197 incidents of poll related violence were reported, as against 135 incidents during parliamentary Elections, 1999 (PE 99), the number of persons killed and injured was less at 60 and 158 as compared to 61 and 160 during PE 99.

    While threats of poll boycotts and disruption by Left extremist groups and extremist groups in the North East loomed large, precise intelligence reports pinpointing soft and vulnerable areas and targets were gathered and shared by the Union Home Ministry with the concerned State Governments.

    In Bihar, where large-scale violence was anticipated from MCC, PWG and criminal elements, only 49 casualties and 105 injuries were reported as against 58 casualties and 133 injuries during Parliamentary Elections, 1999. Casualty of Security Forces, particularly in land mine explosions in Central and South West Bihar, was significantly less due to measures such as movement on foot instead of vehicles and intensified pre-poll patrolling. In Orissa also, the threat from Left extremist groups was contained effectively.

'18'

SAIL SETS UP HIGH LEVEL TECHNICAL COMMITTEE TO DEVELOP HIGH GRADE STEEL

    The Steel Authority of India (SAIL) has set up a high-level technical committee to successfully develop the required grades of steel to meet stringent defence needs. The Committee would probe the reported failure of the performance of Jackal M-1 steel plated VVIP bullet proof cars and suggest measures to prevent occurrence of such problems in future.

    The financial performance of Alloy Steel Plant which manufactures high grade steel for such use has been under great strain. SAIL will spare no efforts to ensure production of such grade steel in the plant which is essential to improve its financial performance. Recent restructuring proposal approved by the Government envisages divestment of this unit.

    SAIL is not yet ready to commercially produce plates of 6.2 – 6.7mm thickness used in VVIP vehicles as the process is, at present, under stabilisation. The failure of the steel plates of the bullet proof security cars during testing at Bhondai (Haryana) should be viewed in this background. The company would spare no effort to overcome this problem.

    SAIL has also been supplying various grades of steel to defence establishments developed jointly with the Defence Metallurgical Research Laboratory (DMRL), Hyderabad. During manufacturing of steel for Defence use, strict quality control is maintained with special squads involved at every stage as per process chart of DMRL. This steel goes for further testing at DMRL and supply is made only after its clearance.