SAIL has drawn up a comprehensive financial and business restructuring plan to increase production of steel and marketing. It has initiated measures to bring down operational costs by reducing input costs, reduce consumption of raw materials and other imports and increase operating efficiencies. It has stressed on asset restructuring, disposal of idle assets and joint-venture participation at Salem Steel Plant. Steps are being taken to improve techno-economic parameters such as fuel and power consumption and right size manpower through voluntary retirement scheme.

    Global steel consumption steadily rose from 648 million tonnes in 1990 to 658 million tonnes in 1995. It reached a peak of 695 million tonnes in 1997. The trend in apparent consumption of finished steel in India has shown a steady increase during the last decade. Apparent consumption of finished steel in India since 1951 is given in the following table:-

(Million tonnes)

    The Finance Minister, Shri Yashwant Sinha, today met leading economists as a part of his continuing pre-budget discussions. Welcoming the economists, the Finance Minister referred to many problems and challenges confronting the Indian economy. The Finance Minister referred to difficulties in arriving at crucial policy decisions in a democratic polity where decision making is slow. However, in recent past there have been positive developments which augur well for the future of economic reforms. These are in particular realization of benefits flowing out of greater fiscal discipline. To this end, some States have launched fiscal reform programmes and also agreed to implement decisions regarding sales tax reforms. To make reforms acceptable to the masses they have to encompass agriculture and rural areas with emphasis on improving the quality of life rather than sectors. The budget has to strike a right balance amongst competing claims. To bring back the tax/GDP ratio to levels achieved in early 1990s and to move towards tariff levels comparable to Asian levels, it would need innovation in the tax structure.

    During the discussion, there was unanimity among economists among vital policy issues. These are:

• Need for reduction in the fiscal deficit. To this end, Government should embark upon a medium term strategy to contain expenditure and raise revenues.
• Persevere with the process of tax reforms aiming at fewer rates, wider base and eliminate tax exemptions. Expenditure reduction needs to focus on Government organizations which have outlived their utility.
• Reduce subsidies through streamlining, rationalizing and better targetting of existing schemes. Also enhance user charges/tariff in irrigation and energy to realize higher non-tax receipts.
• Privatization should not be viewed as a way for raising resources but also for improving eff9iciency. Part of the proceeds of privatization should be utilized for debt redemption and social sector spending.
• Strengthen Government participation and spending in the social sector and infrastructure where private sector may not be forthcoming.
• Scale down small scale sector reservation to prepare Indian Industry to meet challenges arising out of lifting of quantitative restrictions.
• Also there is need to have flexible labour policy together with a credible social safety net.
• There is scope to reduce interest rates given lower inflation. This will reduce debt servicing costs and also stimulate growth. In particular, interest rates on small savings, PPF & GPF should be set at 3 per cent plus the rate of inflation.
• Need to remove restrictions on inter-State movement of foodgrains. This will expand home market for agriculture produce.
• There should be a stable international trade and tariff regime for agriculture products.
• Reform of fertilizer pricing system to promote efficient use.

    Apart from the Finance Minister, the Minister of State for Expenditure, Banking and Insurance and the Minister of State for Revenue were also present in the meeting. Senior officers including Finance Secretary, Secretary (Economic Affairs) and Secretary (Expenditure) also participated. The economists who attended the meeting were Dr. Isher J. Ahluwalia, Prof. C.D. Wadhwa, Prof. Vikas Chitre, Shri V.K. Srinivasan, Dr.Kirit Parikh, Dr. Ashok Laheri, Shri Jagdish Shettigar, Dr. Rakesh Mohan, Dr. Ashok Gulati and Prof. K.V. Vardarajan, Prof. Pravin Visaria, Dr. Ajit K. Singh, Prof. N. Govinda Rao, Prof. S. Gangopathyay and Dr. Surjit Bhalla.

    The President has given his assent to the Foreign Exchange Management Bill, 1999, the Insurance Regulatory and Development Authority Bill, 1999, the Appropriation (Railways) No.4 Bill, 1999 and the Central Industrial Security Force (Amendment and Validation) Bill, 1999. With this, these four Bills have come to be known as the respective Acts. These Bills were passed in the recent Winter Session of Parliament.

    The Foreign Exchange Management Act, 1999 repeals the Foreign Exchange Regulation Act, 1973. It seeks to consolidate and amend the Law relating to foreign exchange with the objective of facilitating external trade and payments and for promoting the orderly development and maintenance of foreign exchange markets in India. It also abolishes the Foreign Exchange Appellate Board.

    The Insurance Regulatory and Development Authority Act, 1999 seeks to establish an authority to protect the interests for holders of insurance policy, to regulate, promote and insure orderly growth of the insurance and industry. It also seeks to amend the Insurance Act, 1938, the Life Insurance Corporation of India Act, 1956 and the General Insurance Business (Nationalisation) Act, 1972. It also seeks to pave the way for private participation in insurance sector including those from foreign countries.

    The Appropriation (Railway) No.4 Act, 1999 seeks to provide for additional allocation of funds from the Consolidated Fund of India for expenditure on Railways relating to various projects and rail services for the remaining period of the current financial year 1999-2000.

    The Central Industrial Security Force (Amendment and Validation) Act, 1999 seeks to make the Central Industrial Security Force (CISF), which guards and protects the assets of Central public enterprises all over the country, seeks to make the Force very compact and professional body to take on all types of industrial thefts, piracies and leakages.

    The Director General of the United Nations World Health Organisation (WHO), a former Prime Minister of Norway and a global environmentalist of repute Dr. (Mrs.) Gro Harlem Brundtland called on the Union Minister of Law, Justice and Company Affairs Shri Ram Jethmalani this morning and discussed with him the havoc that cigarette, bidi and other tobacco products were causing to public health and the enormous financial burden which the State had to bear in dealing with diseases like cancer, heart-attack and pulmonary complications. Shri Jethmalani said that the annual cost of such dreaded diseases was estimated to be about five times the cost of the Kargil war.

    The Minister told Dr. (Mrs.) Brundtland that India was trying to evolve an international convention which would create global obligations to restrict consumption of tobacco. He further said that India had to counteract the enormous advertising budgets of manufacturers of cigarette and other tobacco products. This called for imposing restriction on advertisement and evolving India’s own system of advertisements on the dangers from tobacco. Shri Jethmalani said that the Constitution of India prohibited total ban on such advertisements or even consumption of tobacco in view of our Fundamental Rights. However, a reasonable restraint could always be imposed in the Indian condition. Dr. Brundtland urged Indian Law Minister to devise such an advertising law which entailed the dangers to human health arising out of consumption of tobacco including smoking and not the cryptic sentence "smoking is injurious to health". She emphasised the need for detailed information in the form of dangers from the use of tobacco and tobacco products.

    The British Secretary of State for Trade and Industry Rt. Hon. Stephen Byers called on the Union Minister of Law, Justice and Company Affairs Shri Ram Jethmalani here this morning and discussed with him the need for introduction of a Competition Law in India to meet the requirements of emerging globalisation of Indian economy. Mr. Byers , who is here in return to Shri Jethmalani’s earlier visit to the United Kingdom to exchange thought and experience on a Competition Law, informed the Indian Law Minister that a Competition Law was passed last year by the British Parliament, which would come into force in March, 2000. He said that the fairly long interval has been provided to the industry to get acclimatised to the kind of competition that the British industry might face under the new Law of Competition.

    Responding, Shri Jethmalani welcomed Mr. Byers and explained to him that the Government of India was busy in drafting a new Competition Law. He informed Mr. Byers that a high powered S.V.S. Raghavan Committee was seized of the matter. The Minster said that originally the Committee on Competition Law was asked to produce the draft of a Competition Law by March 31,2000. Since the Government was in hurry, the Committee has been asked to complete the work in February,2000 itself. As the Government was determined to introduce the Bill on the Competition Law in forthcoming Budget Session of Parliament beginning in the second half of February, 2000 itself.

    Today’s discussions ranged over a wide area including some vital points of difference between Indian and English situations. In view of this, it was decided that some methods would have to be devised to prevent predatory or adversarial competition, the object of which was not to promote competition but to destroy the competitor. It was agreed that the British experience and expertise, which were very welcome for India, would be readily made available. For this purpose, seminars would be organised in February 2000 both in London and New Delhi. The officials of both the United Kingdom and India would meet and work out the details so that a comprehensive and effective Competition Law could be introduced in India at the earliest in the forthcoming Budget Session of Parliament.

    The South East Asia Flame for Freedom from Tobacco (SEAAT Flame) has been flagged off here today by the Chief Minister, Smt. Sheila Dixit. The flame has been lit by Union Minister of Culture, Sports and Youth Affairs, Shri Ananth Kumar in the presence of Director General, WHO, Dr. Gro Harlem Bruntdland and Union Minister of State for Health and Family Welfare, Shri N.T.Shanmugam.

    In his address at this gala function, Union Minister of State for Health and Family Welfare, Shri N.T.Shanmugam has said that his Ministry has been making efforts to build up a consensus amongst the State Governments for a joint and concerted action to regulate tobacco use. But the efforts have not had limited impact. And, whatever achieved is undone by glamorous portrayals of king size life-styles and suggestions of instant energy with a pinchful of chewing tobacco. The implementation of legislations on tobacco use have also left much to be desired. These laws touch a social habit of millions of people in the country. Tobacco is the cause of more than 25 diseases, all preventable through mere abstinence from Tobacco. It is, therefore, necessary to sensitize society repeatedly about the harmful effects of tobacco on human health. This will have to be followed up with more positive intervention by Governments to withdraw all incentives that might in any way encourage tobacco consumption.

    The Minister emphasised the need for immediate withdrawal of the duty free allowance under customs law for the import of cigarettes. This would more than demonstrate the commitment of Governments to a Tobacco free society and also effectively debunk the myth that the tobacco lobby enjoys enormous influence amongst sovereign States. And, if the South East Asian countries can join hands for evolving common tobacco control strategies, it would be a giant leap towards our goal of bequeathing an improved public health environment for the future generations. While congratulating the WHO for pioneering regional cooperation in the area of tobacco control, the Minister has said that this initiative will have to be sustained over the years and WHO will have to continue to be the catalyst in this effort.

    The South East Asia Flame for Freedom from Tobacco will inspire the youth to join the crusade against tobacco. The Flame will travel throughout the South East Asia Region for a period of one year from today. Volunteers of Nehru Yuva Kendra Sangathan of the Ministry of Culture, Sports and Youth Affairs will carry the flame from New Delhi to Bangladesh border, making 24 halts enroute. The oath administered in today’s function by the Union Minister for Youth Affairs, Shri Ananth Kumar will also be administered at each place of halt. The flame will visit India three times during the period of the campaign. After travelling through Bangladesh, Nepal, Thailand, Bhutan, Indonesia, DPR Korea, Sri Lanka, Maldives, Myanmar, the Flame will return to India for its final appearance marking the week long conclusion of Regional campaign ending 7^th January 2001.

    Union Health Secretary, Shri J.A.Chowdhury Addl. Secretary, Shri J.V.R.Prasada Rao , DG, WHO, Dr. Gro Harlem Brundtland, Regional Director, WHO, Dr. Uton M. Rafei are among others who addressed this colourful function.

    More than 4000 school children took an oath for refraining from any activity that would directly or indirectly encourage tobacco production, distribution and consumption.

‘25’

    Government is contemplating amendments in certain sections of the Motor Vehicles Act, 1998. This was disclosed by Union Minister of Surface Transport, Shri Rajnath Singh here last evening. Speaking at the function to unveil Eicher’s Heavy Commercial Vehicle, the Minister said the proposed amendments would make the Act more user friendly.

    Noting that the heavy truck would meet the emission norms and with its factory build cabin for safety on roads would provide better efficiency for transport operators, the Minister described this as an important contribution in the joint sector. The Minister remarked that the new addition of a heavy truck in the secondary sector underscored the fact that in this age of economic liberalisation, economic progress can be achieved only if due importance is given both to the primary sector and the secondary sector. Steps such as this one would strengthen the belief that India could emerge as a super economic power in the new millennium, the Minister added.

    The Minister expressed his happiness that the new heavy commercial vehicle was said to be totally indigenous and had absorbed latest modern techniques. A well-knit and coordinated system of transport would play an important role in the economic growth of the country, he said.

    Overall raw coal off-take of CIL and SCCL put together in April-October 1999 was 162.51 million tonnes against raw coal off-take of 157.22 million tonnes in the corresponding period of the previous year. A growth of 3.4 per cent was recorded on this count.

    Despatches to power sector during October 1999 from both the Companies together were 17.24 million tonnes against the last year's despatches of 17.03 million tonnes in the corresponding period. Despatches to cement sector from CIL and SCCL put together during October 1999 was .74 million tonnes against the despatches of .61 million tonnes in the corresponding period last year. The despatches of coal to steel sector from CIL during the month of October was however, less than previous year.

    Cooking coal despatches from CIL sources to steel plants during October 1999 were of the order of 17,274 tonnes per day against an average daily target of 20,387 tonnes per day.

    The daily average coal loading in October 1999 in CIL was 16,883 wagons per day as against the target of 19,123 wagons per day. Daily average loading of 16,883 wagons per day was achieved against an average daily supply of 16,826 wagons per day by the railways. Average daily loading in SCCL in October 1999 was 1,717 wagons per day as against the target of 1,660 wagons per day.

    Coal stock with steel plants as on October 31, 1999 was 1.92 lakh tonnes including 0.86 lakh tonnes of imported coal.

    The Union Minister for Information and Broadcasting Shri Arun Jaitley released three publications Reference Annual – 2000, Mass Media – 2000 and Events – 2000 are here today. Speaking on the occasion the Minister said that three different media units of Information and Broadcasting have succeeded in bringing out these publications absolutely on schedule. These publications have encyclopaedia character and are absolutely necessary for those concerned for current affairs. Congratulating the organisations Shri Jaitley hoped that the momentum would be maintained in future also. On the occasion Shri Jaitley also launched a website of the Research, Reference and Training Division.

    Reference Annual – 2000 is the forty-fourth in a series of Reference Annuals and contains packaged information on the diverse aspects of India in the country’s march to progress. It serves as an authentic work of reference and the text in this edition is supplemented with the latest information covering ground for 1999 made available from the concerned Central Ministries/State Government/Union Territory administrations and other Government agencies. Facts and figures have been updated wherever possible. In addition, India-2000 carries a summing up of the nation’s growth through chronological highlights in the publication.

    Mass Media – 2000 is the sixteenth in the series of annual on mass media. This year we have changed the format of the book to make it more user friendly. The book has been divided into three parts. The first part deals with Cinema. Various articles cover all aspects of Indian Cinema as it has evolved over the past hundred years. An exhaustive list of national film awards from 1953 to 1998 has been included for ready reference. The second part deals with the network of media organisations at the Central and the State levels.

    The third part provides documentation services on various aspects of media. Media-up-date documents national and international media events through the year. Bulletin on films provides a scoop of film related information. Current awareness Services contains an annotated list of contemporary media news from radio, television and film to press, journalism and advertising.

    The third book Events-2000 is annotated calender events for the year. The Division has been regularly bringing out backgrounders and biographical write-ups in accordance with the calender of events, every year. This year for the first time an effort has been made to compile all the events of the year ahead in a user-friendly ready-reckoner form.

REVISION IN DEALERS COMMISSION

    Retail Outlet Dealers selling petrol and diesel are entitled to commission to cover their expenses and for return on their investment. Since petrol and diesel are price-administered products, the commission rates are fixed by the Central Government. Likewise, distributors' commission for domestic LPG is also fixed by the Government. The last major revision took place in November 1997

    Dealers had represented to Government that the present commission is inadequate and the same should be increased. Government, in May, 1999, constituted a Committee of Directors (Marketing) of Oil Companies with Executive Director, Oil Coordination Committee as Convener, to review the dealers commission and submit recommendations to Government. The report was received by Government in August 1999.

    Based on the recommendations of the Committee, the Minister for Petroleum and Natural Gas, Shri Ram Naik approved the decision to revise the rates of distributors' commission for petrol, diesel and domestic LPG with effect from January 5, 2000. Commission for petrol has been revised from Rs. 413 per kilo litre (kl) to Rs. 462 per kl., for diesel from Rs. 224 per kl. to Rs. 257 per kl. and for LPG from Rs. 11.10 per cylinder to Rs. 13.83 per cylinder. Government has also accepted the recommendation of the Committee to do away with the slab rates of commission for diesel. Accordingly, diesel retail outlet dealers will get a uniform rate of commission of Rs. 257 per kl.

    The revised rates of commission will not affect the existing prices of these products.

    Recognising the importance of improved service to consumers, the Ministry of Petroleum and Natural Gas is in the process of issuing guidelines to be adhered to by the dealers / distributors of petroleum products. These include maintenance of basic amenities. The retail outlets are required to have provision for free air and water, trained staff in uniform, first-aid facilities and clean toilets besides making available correct quality and quantity of the products. The LPG distributors would maintain better safety standards, hundred per cent home delivery, correct quantity and quality in refills and timely supply.

    The Government has given approval for award of 25 blocks for exploration under the New Exploration Licensing Policy (NELP). This includes 2 onland blocks, 7 deep water offshore blocks and 16 shallow water offshore blocks. It may be mentioned that the deep-water blocks beyond 400 meter isobath were offered for the first time in India and this has opened a new prospective area for hydrocarbon exploration.

    The Government approval for award in about four and half months is an improvement in the time taken for fnalisation of bids and reflects Government's commitment to attract investments in the critical area of exploration of oil and gas.

    The Government had received a total of 45 bids for 27 blocks, which included 4 onland blocks, 16 shallow water and 7 deepwater blocks. A total of 21 companies - 10 foreign, 6 Indian private companies and 5 public sector enterprises had participated in NELP bidding. Out of these 27 blocks, bids for 2 blocks were rejected as the bids were incomplete and non-responsive.

    NELP provides for attractive fiscal incentives and contractual terms to the investors.

    Details of the award of exploration blocks for the bids received under the NELP are given below:-

    United Kingdom is the third largest donor to India for development projects. UK's assistance comes in the form of grant and is extended for power, basic education, forestry, poverty alleviation, health etc.