The Minister for Rural Development, Government of India Shri Sundar Lal Patwa has requested the Planning Commission and the Ministry of Finance to provide necessary allocations in the Plan Budget of the Department of Drinking Water Supply in the coming years so as to achieve the objective of providing safe drinking water to all rural habitations within the stipulated time frame.

    The National Agenda for Governance of the Government envisages provision of potable drinking water to all villages in the country in five years. Although rural water supply is a State subject, the Central Government supplements the efforts of the States by providing assistance under the Centrally Sponsored Accelerated Rural Water Supply Programme (ARWSP) for providing safe drinking water to all rural habitations. The schemes are formulated, sanctioned and implemented by the State Governments.

    In consonance with the avowed objective of the National Agenda for Governance of the Government for providing safe drinking water to all rural habitations in five years, a separate Department of Drinking Water Supply was created in October, 1999. Soon thereafter, the Secretary of the Department requested all States/UTs to prepare action plans, clearly indicating the annual requirement of funds for full coverage of the left over habitations. As per the action plans submitted by the States/UTs, there are 38065 Not Covered (NC) and 268496 Partially Covered (PC) rural habitations in the country as on 1.4.1999.

1. Foreign Direct Investment upto 100% is allowed for e-commerce activities subject to the condition that such companies would divest 26% of their equity in favour of the Indian public in 5 years, if these companies are listed in other parts of the world. Further, these companies would engage only in business to business (B2B) e-commerce and not in retail trading, inter-alia, implying that existing restrictions on FDI in domestic trading would be applicable to e-commerce as well.
2. Vide Press Note No.12 of 1992 series, it had been decided to withdraw the condition of dividend balancing in all foreign investment approvals except for industries in the 22 specified consumer goods sector. On review of the existing policy on dividend balancing applicable to 22 specified consumer goods industries, and with a view to attracting FDI, it has been decided with immediate effect, to remove the condition of dividend balancing on these 22 consumer goods industries. This decision will come into force from the date of issue of the Press Note and the export obligation and concomitant dividend balancing will remain applicable until the date of issue of this Press Note.
3. Under Press Note No.2 of 1998 series, projects for electricity generation, transmission and distribution with foreign equity upto 100%, had been made eligible for automatic approval provided the foreign equity in any such project does not exceed Rs.1500 crore. The categories that qualified for such automatic approval are hydroelectric power plants, coal/lignite based thermal power plants, oil based thermal power plants and gas based thermal power plants. Generation, transmission and distribution of electrical energy produced in atomic reactor power plants is not eligible for automatic approval. Keeping in view the growing demand for power in the country and the need for more investment in this sector, government, as part of further liberalisation of FDI regime, has decided to remove the upper limit for foreign direct investment in respect of projects relating to electric generation, transmission and distribution (other than atomic reactor power plants).
4. As per existing guidelines for FDI in petroleum sector, FDI in refining is permitted upto 26% (public sector holding of 26% and balance 48% by public). In case of private Indian companies, FDI in refining is permitted upto 49%. Government, as part of liberalisation of FDI regime has decided to increase the level of FDI in oil refining sector under automatic route from existing 49% to 100%.

    In a message he has said: "I am shocked and deeply anguished at the loss of lives of the passengers and the Members of the Crew of the Alliance Airline Aircraft, in a tragic accident near Patna today.

    I convey my heartfelt condolences to the members of the bereaved families and pray that they receive the strength to withstand this tragedy."

    Exports by SSIs in 1998-99 amounted to Rs.48979.23 crore.

    As regards information technology, the Information Technology Agreement (ITA) aims to expand the world trade in information technology products by providing enhanced market access opportunities while facilitating the growth and usage of IT for the dynamic expansion of the world economy. India is a signatory to the ITA, which is a plurilateral agreement under the WTO. Keeping in view the importance of IT in international trade, 14 countries have submitted proposals for the expansion of product coverage under this agreement. This is generally being referred to as ITA-II. However, the earlier ITA and the proposed ITA-II cover in their ambit issues relating to IT products only and there is no proposal at present to include IT services under this agreement.

    Addressing the Seminar "Indian Fertilizer Sector - Vision for the New Millennium", Shri Prabhu said that the last Fertilizer Policy announced in 1977 has several aberrations although it also has delivered in many aspects. The Minister said Seminars will be organised in five parts of the country (North, South, East, West and Central) for discussions with stakeholders and the media, for which purpose this Background Paper has been brought out. The inputs received during these seminars will be used in framing the Long Term Fertilizer Policy. Shri Prabhu said discussions with the stakeholders are being held, as he believes in transparency and dialogue with stakeholders.

    The Minister said the Long Term Fertilizer Policy will certainly be constrained by commitments made by India to the World Trade Organisation (WTO) regime. Shri Prabhu also announced that White Paper on Sick Units in the Fertilizer Sector is likely to be presented to Parliament next week. At the same time, a policy on Brown Field Projects will be brought out very soon so that those interested in reviving sick units could come forward. The Department of Fertilizers is also working on a Feedstock Policy. A Task Force on Coal has also been constituted to look into this abundant source which is available in the country, he said. Similarly, a Policy on Joint Ventures will also be worked on.

    Shri Prabhu emphasised that decontrol of the fertilizer sector will have to proceed in a phased manner so that it does not compromise the country’s food security while also at the same time gives incentive to industry to produce more fertilizers. Concluding his opening remarks the Minister hoped that fertilizer companies would look at the farmer as valued customer and this aspect should be included in the Long Term Fertilizer Policy.

    The inaugural session of the seminar was also addressed, amongst others, by the Secretary Fertilizers, Shri A.V. Gokak.

OBSERVATIONS OF PRIME MINISTER AT THE SECOND MEETING OF ECONOMIC ADVISORY COUNCIL

    "I am pleased to welcome you to this second meeting of the reconstituted Economic Advisory Council. We are meeting at a time when there are many positive features in the economy and given a favourable monsoon, we should grow at well over 7% during the current year. The creeping upward inflationary pressures have also been somewhat arrested. Agriculture is expected to do well. I do believe that the momentum in the industrial sector represents a sustained revival.

    We have continued policy initiatives in several areas particularly, infrastructure. I expect that given some of the new changes in the Telecom sector, we should in the coming months witness a significant increase in inward flows in this sector and several financial closures can be quickly achieved. The Committee under the Finance Minister has made some important recommendations and this alongwith the proposed new legislation for a Telecom Bill – 2000 based on the principles of convergence would give an added boost to this sector.

    I have also been assured that the ambitious Road programme is on track and 1000 kms would be completed this year while contracts for another 3000 kms will be finalised and awarded before the end of this year. The High Density Corridors which have been identified should attract private investment. The Ministry of Surface Transport has been asked to accelerate their Port corporatisation programme.

    I hope that the programme for giving several airports on long-term lease can make faster progress. The present procedures need to be streamlined. We also need to ensure that there are no slippages in the Disinvestment programme for Indian Airlines and Air India which should provide a credible framework for a forward looking Civil Aviation policy.

    The Power sector continues to be dogged by nagging issues and I would like to see a clearer road map on Power reforms. Implementation of approved projects continues to be a problem in this sector. Financial closures of many long delayed projects and removing hurdles for enabling quicker implementation needs closer attention.

    I also believe that a more proactive approach to sort out project specific constraints will enhance investment flows and improve realisation ratio from the large volume and value of approved proposals for Foreign Direct Investment.

    Fiscal consolidation however remains a major issue. Tax reforms have made progress but much more needs to be done for improving the tax administration, tax widening and administrative simplification. On indirect taxes, I hope the timeframe for introduction of a VAT which has been agreed upon will be adhered to. I am looking forward to the various reports of the Expenditure Commission and I hope that some of the difficult issues relating to subsidies, user-charges, rationalising the expenditure portfolio and the manpower connected with it can be addressed in the coming months.

    I must also stress that the problems concerning the social sector particularly, Drinking Water, Primary health, Education and Rural connectivity must receive the high priority they deserve.

    On the whole one can say with some satisfaction that given the stable macro-fundamental and a credible programme for sectoral reforms, the economic outlook continues to be optimistic. The initiatives in the area of Information Technology, Knowledge-based Industry, the growth of our software industry, the pressure to increase the number of professionals from our specialised institutions who are in demand in many countries has imparted a new dynamism to our economy. It has also caught the imagination of the rest of the world.

    We also generally know some of the important issues which require immediate attention. The problem is one of sustaining a genuine national consensus. And of achieving a truly bi-partisan support. I have said on more occasion than one that the economic agenda which is in India’s long-term interest can and must be depoliticised. Clearly, we need to identify the priorities and commonalities.

    It would be useful if in today’s meeting, you can briefly comment on what you perceive to be the real priorities. And whether they are in fact doable given our political framework in the sort of time frame we have in mind. At the end of today’s meeting, I would request one of you to put together a Common Approach Paper which briefly deals these issues. This could form the basis for a wider national debate in our effort to forge a national consensus. This would constitute an important contribution which this Council can make in the formulation of a national approach to economic policies.

    There is one more area on which I wish to briefly solicit your comments. There is a perception that the present reform strategy is elitist-driven. And that it is designed to help industry and the corporate sector without its benefits trickling down to the poorer sections of the society and leaving the rural economy untouched. The fact that in the long run a strategy which leads to high rates of economic growth has overall benefits is alone not adequate to alter this perception. We need to devise a more credible Communication Strategy and to bring out clearly that the changes being brought about will benefit the average man whether by way of improved rural connectivity at lower tariffs, assured supply of water, better roads and improved infrastructure. A concerted approach in this area needs to be evolved if we are to sustain the momentum for economic changes which indeed we must, if India is to achieve the rates of growth necessary to eliminate poverty.

    These are two broad areas on which at today’s meeting your comments would be useful in shaping our decisions and public perceptions."

    Dr. B.M.Das, Director, Emergency Medical Relief Division of DGHS, Nirman Bhavan, New Delhi will be functioning as the Nodal Officer who will coordinate with the Bihar Government in providing medical care. His phone number is 3017457.

    Regional Director, CGHS at Patna has been nominated as a Nodal Officer at Patna in coordinating the medical relief work. Four CGHS doctors have already rushed to the accident spot. On behalf of CGHS they are also coordinating with the doctors at Patna Medical College hospital. Three doctors of Dr. Rajendra Prasad Memorial Institute, Patna have also been placed at the disposal of relief efforts.

    CGHS Patna has requested the Indian Red Cross Society to supply 33 units of blood which are being arranged. Deputy Secretary, Indian Red Cross Society is proceeding to Patna from New Delhi today with the sufficient units of blood.

    Officials of Red Cross Society were among the first to have reached the accident spot. Four ambulances have been pressed into service.

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    The MoU has identified the following cooperative projects of common concern in the field of IT but does not limit its scope to the following only. The core areas identified in the MoU include:- Computer; Enterprise Networks; Information Technology; Microelectronic technology and integrated circuit; Software and its application and products; Internet technologies and their application; Transfer of information technologies and Establishing manufacturing joint ventures of information technology equipment.

    The MoU will also focus on the following areas of cooperation. Exchanging information and strengthening cooperation in the information technology organisations, exchange information on international legislation and international technological standards, organise training programmes and mutual visits for experts and advisors between the two countries in areas of mutual interest in IT.

    Earlier in the course of the day, Shri Mahajan had extensive discussions with Mr. Wu Jichuan, Minister for Information Industry, Peoples' Republic of China. During the discussions Shri Mahajan outlined the recent policy initiatives of the Government in IT. The Minister invited investment from Chinese companies in the area of computer hardware and offered facilities to them to set up manufacturing bases in India. As far as the Indian companies were concerned the Minister said, his Ministry would encourage the Indian software corporates to tap the huge Chinese market in software development. A key feature of the discussions was the possibility of Indian companies teaming up with their Chinese counterparts to bid for opportunities in the third world markets.

    During the discussions the Minister gave a detailed outline of the IT sector in India. IT was one of the fastest growing sectors of the Indian industry said Shri Mahajan, - achieving a compound annual growth rate of 25.5% in production and 43% in exports during 1994-98. Information Technology accounted for 4% and Telecommunications and Electronics accounted for 24.19% of the total foreign direct investment inflow between January 1991 - December 1998. The total market capitalization of listed IT companies on 1^st Jan 1999 was US $ 4 billion and 21^st Feb 2000 stood at US $ 63 billion. The total market cap of listed Indian companies was US $ 99 billion.

    The Minister also had detailed discussions with Mr. Shi Guangsheng, Minister for Foreign Trade and Economic Cooperation, Peoples' Republic of China. During the discussions both the Ministers discussed the possibilities of boosting Indo-Chinese trade from the current level of US $2 billion. The Minister also highlighted the recent fiscal incentives given to the IT sector by the Government in its recent policy announcement. Also highlighted in the discussions was the initiatives taken to develop the road map for the country's initiative in E-Commerce and E-Governance.

    AIIMS has already been alerted of this. A special cell has been set up at AIIMS, which will function round the clock. Information pertaining to the health status of them will be available with the following two telephone numbers:   6862279, 6593308 of AIIMS, New Delhi.

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    The Appointments Committee of the Cabinet has approved extension of tenure of Shri S. Narayanan, IAS (AP: 66) as Ambassador and Permanent Representative of India to WTO, Geneva beyond 31^st July, 2000, till further orders.

    The focal theme of the National symposium has been chosen ‘Urban Hydrology’, in which engineers, planners and administrators in-charge of Water Resources and Urban Water Supply and Sanitation sectors both from the Central Government and State Governments will take part in the Symposium. The objective of the two-day long deliberations is to take up the challenge of providing safe drinking water to 820 million urban populace of the country by the year 2050.

    The outcome of the two-day deliberations will help in bringing together researchers , water managers and engineers to provide fresh ideas and explore thenew possibilities to meet the challenge of providing water to growing urban population by the year 2050.

    This National Symposium on Hydrology is being jointly organised by the Indian Association of Hydrologists, Central Water Commission, National Institute of Hydrology and Central Soil and Materials Research Station and few NGOs .

    Shri Arjun Charan Sethi, Union Minister of Water Resources will be the Chief Guest and will deliver the Valedictory address on 19^th July, 2000.

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    The Home Minister Shri L.K. Advani has told the Consultative Committee of MPs that the Government would consult the National Human Rights Commission on the proposed anti-terrorism legislation. The Government is yet to take a decision on such a legislation and care would be taken to take into account the views expressed by the NHRC. Shri Advani said before bringing in any such legislation, the Government would like to have wide-ranging debates and consultations on this issue. He informed the members that the conference of Chief Ministers, to be inaugurated by the Prime Minister next month on internal security, would provide a valuable opportunity to assess the view points on the need for anti-terrorism legislation. The Home Minister said various political parties may also be consulted, if need be.

    Giving a background in which the Law Commission had drafted the Prevention of Terrorism Bill,2000, the Home Minister said that after the lapse of TADA, demands for such a legislation were made from several quarters. He recalled that he had earlier said that while central legislation in this regard was not being considered, States might do so. However, following persistent demands for such a legislation, the Government had asked the Law Commission to draft a legislation in conformity with similar legislations in other democracies and with enough safeguards. He made it clear that the Government had not taken any decision and hoped that the views of the Members of the Consultative Committee would help in arriving at a consensus.

    Members were unanimous that terrorism was posing a grave threat to national unity and integrity and the menace had to be curbed. Though there was some divergence of views about the need for a special anti-terrorism legislation and some members were of the opinion that the existing laws were sufficient to tackle terrorism, a majority of the members, felt that there was need for a special legislation to meet the challenge of terrorism with adequate safeguards. They opined that circumstances in some parts of the country were such that normal laws were not enough to control the situation. It was pointed out that the challenge of terrorism which the country was facing was part of the proxy war unleashed by one of our neighbours. Members emphasised on the need to prevent misuse of such legislation. There was opposition to the provision for admissibility of confessions before police as members felt that it would be open to misuse. Some members suggested that if such a legislation was enacted, it should be specific to terrorist activities only. Some members felt the draft bill attempted to shift the onus of proving innocence on the accused while another view was that the bill only talked of presumption of guilt. There was a suggestion that the application of such a legislation should be limited to areas which had been declared disturbed areas by the Government. Some members were of the opinion that there was need for modernisation of police force and strengthening of investigating and intelligency agencies besides prosecuting agencies to tackle the situation. There was yet another view that such a legislation should not be rejected merely because of apprehensions..

    Summing up the discussion, the Home Minister said the deliberations had been extremely fruitful. The points raised by the members would certainly be taken into consideration. Regarding limiting the application to disturbed areas, he pointed out that in such a case, a terrorist crime in other areas would remain outside such a legislation. About the bill’s provision on obligation to furnish information and the apprehension that this would cover media persons, he said, it had been clarified that this would not be so and that existing laws of the IPC had similar provisions. In any case, before taking any view on the draft bill it would also be discussed with journalists.

    The meeting was attended among others by the Ministers of State for Home Shri I.D.Swami and Shri C. Vidya Sagar Rao and senior officials of the Home Ministry. The following members were present in the meeting:

    Shri Anand Mohan Biswas, Shri Holkhomang Haokip, Shri Jagdambi Prasad Yadav, Shri G.M. Banatwalla, Shri Mohan S. Delkar, Shri Madan Lal Khurana, Shri Bishnu Pada Ray, Shri Indrajit Gupta, Shri Somnath Chatterjee, Shri Babban Rajbhar, Shri G. Ganga Reddy, Shri Ali Mohd. Naik, Shri Shivraj V. Patil, Shri Saiduzzaman (Lok Sabha)

    Shri Devi Prasad Singh, Shri Dina Nath Mishra, Prof. Ram Gopal Yadav, Shri S. Viduthalai Virumbi , Shri Swaraj Kaushal, Shri Sikander Bakht, Shri Narendra Mohan, Shri Debabrata Biswas, Shri Ghulam Nabi Azad, Dr. Karan Singh, Gen. S. Roy Chowdhury(Rajya Sabha)

    The Minister for Steel, Shri Braja Kishore Tripathy today exhorted the Sponge Iron manufacturers to try to make India the world leader in sponge iron production. He congratulated the industry for continuously maintaining number two position in the world. The minister was addressing here today the Annual General Meeting of Sponge Iron Manufacturers’ Association.

    The Minister said that Indian steel industry has developed in line with the growth of global steel industry since 1999. Finished steel production has gone up to 26.478 million tonnes in 1999-2000, showing an increase of 11.14 per cent than 1998-99. Similarly apparent steel consumption had increased by 11.30 per cent in 1999-2000 than the previous year. The domestic demand for steel is further expected to go up to 29.185 million tonnes in 2000-01. He observed that the production of sponge iron has gone up marginally in 1999-2000 to about 5.20 million tonnes as compared to 5.16 million tonnes in 1998-99. Nine per cent increase in finished steel and sponge iron production in the first quarter of this financial year is a healthy sign for the Indian steel sector. He appealed to the steel sector to maintain this trend.

    The Minister said that sponge iron has been identified as a thrust area by the ministry and the Government will extend all possible assistance to this sector. Liberal views have already been taken in the proposals for coal linkages, allocation of coal mines for captive purposes and allocation of natural gas with a view to facilitating the growth of this industry. He was happy to know that a number of new small coal based sponge iron plants are coming up in the country.

    A special train from Howrah to Patna has left this evening with a view to take the relatives of the victims of the Alliance air crash which took place in the morning today. This train will be taken to Patna with non-stop run by the Eastern Railway. The Railway is also to carry the dead bodies of the victims by the plane crash by a special parcel cum luggage van from patna to Howrah. The train is under run on the instructions of the Minister for Railways, Ms. Mamata Banerjee.

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