The National Renewal Fund (NRF) was set up in February, 1992 by a Government resolution which provided for its operation for a limited period of time up to a maximum of ten years. Assistance from NRF has been provided for the Voluntary Retirement Scheme (VRS) and the scheme of counseling, retraining etc. of workers rationalised from the organised sector. VRS assistance has been made available to Central Public Sector Undertakings (CPSUs). According to information available, 1,36,110 workers have availed of VRS as on 31.3.2000. Under NRF, Employees Assistance Centres (EACs) have been set up to provide counseling, retraining of workers to facilitate their redeployment. 66 EACs set up under NRF are managed by 12 nodal agencies spread all over India and have retrained 47,050 employees rationalised from organised sector as on 31.3.2000.

    NRF has been maintained in Public Account till 1998-99. In RE:1999-2000, a provision of Rs.174.05 crore was made against the scheme of Grant-in-aid to PSUs for implementation of VRS and Rs.5.50 crore for the scheme of Counseling, retraining etc.

    The meeting will review the status of Central Health and Family Welfare Programmes in Bihar, where the public health indicators need substantial improvement. The meeting will discuss the constraints, problems and issues relating to the public health sector. The review meeting will identify modalities through which the Central Government could make a greater and more effective contribution to the public health initiatives in the State. In particular, this meeting would concentrate on the initiatives connected with the population stablisation, immunisation, upgradation of public health infrastructure and major national disease control programme for communicable and non-communicable diseases such as TB, Malaria, Kala-Azar, Filariasis, AIDS, Cataract Blindness, Leprosy, Cholera etc.

    Dr. C.P.Thakur, Union Minister of Health and Family Welfare has extended invitation to the Chief Minister of Bihar, Smt. Rabri Devi to participate in the joint review meeting. He expressed confidence that with the cooperation of the State Government this meeting will significantly contribute to achieving greater efficiency in the initiatives in the health sector.

    The profile of India's exports to the EU is dominated by gems & jewellery, readymade garments, cotton yarn & fabrics, drugs/ pharmaceuticals & fine chemicals and machinery & instruments. The principal import products from the EU are pearls, precious & semi-precious stones, gold & silver, machinery and electronic goods. While the EU accounts for nearly a quarter of India's global trade, India is only the 17^th largest trading partner of EU with a market share of less than 1.5 per cent, underlining the potential for further enhancing and strengthening the Indo-EU trade and economic ties. Among the Indo-EU trade issues are the market access problems faced by several Indian goods in the EU market, including the various anti-dumping and anti-subsidy investigations, sanitary and phyto-sanitary regulations etc., facing products of Indian origin in sectors like textiles, steel and pharmaceuticals. Issues of multilateral trade represent another focal area.

    Dr.C.P.Thakur expressed that these two agreements will go a long way in strengthening the friendly ties between the governments and the people of both India and USA. The joint statements demonstrate the commitment of both the countries to combat the menace of HIV/AIDS and to improve the health and well-being of women, children and adolescence through the expansion of cooperative bio-medical and behavioural research. These two agreements will be path breakers in Indo-US collaboration for research and development in various fields of health and family welfare.

    Dr.C.P.Thakur has pointed out that out of three major contributors of funds for the second phase of National AIDS Control Programme of India, USAID contribution itself is of the order of 41.5 million dollars for control of HIV/ AIDS in the State of Maharashtra. India with a strong research base will be able to effectively participate in a joint collaborative programme for research on HIV/ AIDS.

    On the issue of access to drugs, Dr. Thakur has said that a pilot project on using anti-retrovirals for prevention of mother to child transmission, now being implemented in some of the high prevalence States will be expanded to all expectant mothers throughout the country, based on the results of the pilot project. In this background the Indo-US agreement will help India in developing partnerships with the Institutes of Excellence like the Centres for Disease Control, Atlanta and the National Institutes of Health for technical collaboration in a number of areas including development of HIV vaccine. The joint working group of Indo-US scientists which will be constituted as part of the agreement, would have an important task on their hands for quickly identifying areas of technical collaboration and bring out viable programmes for implementation.

    In the area of maternal and child health, the Indian and US scientists will undertake a coordinated programme which will involve participation in research projects, scientific workshops, conferences, training and technology transfer, on improving the health of women of child bearing age, children and adolescents.

    In all these activities the Indian Council of Medical Research, the National AIDS Control Organisation, Department of Bio-Technology, Department of Women and Child Development and other Indian agencies and NGOs would actively participate.

    Shri Suresh Prabhu informed UNOCAL representatives that INDIACHEM -2000 a major international conference and exhibition is being held in New Delhi in October this year. He said it would be appropriate for UNOCAL to take part in the conference, the largest chemical show in Asia. Responding to the Minister, UNOCAL representatives expressed interest for participating in INDIACHEM - 2000.

    Shri Suresh Prabhu who is in the US to promote INDIACHEM - 2000 also held a meeting with the top executives of Enron. The Department of Chemicals and Petro Chemicals and the Federation of Indian Chambers of Commerce and Industry (FICCI) are jointly organising INDIACHEM - 2000. The US is the partner country and the New Jersey is the partner State. From the Indian side Gujarat is the partner State.

(Rs. in Crore)

* (Provisional figures)

    The seven EPZs presently in the country are:

    Kandla FTZ (Gujarat), Santacruz Electronics EPZ, Mumbai (Maharashtra), Noida EPZ (UP), Madras EPZ (Tamil Nadu), Cochin EPZ (Kerela), Falta EPZ, Calcutta (West Bengal) and Vizag EPZ, Vishakhapatnam (Andhra Pradesh).

MINERAL EXPLORATION IN THE NORTH-EAST REGION

Year Expenditure in Rupees

    Mineral Exploration Corporation Ltd (MECL) has spent a total of Rs. 251.94 lakhs on mineral investigation in the NER. Of this, Rs. 157.95 lakh was provided by Department of Mines for investigation for limestone in Siju block of Assam and sillimanite in Sonapahar block of Meghalaya State, and Rs. 94 lakh was provided by Department of Coal for exploration for Coal in Namchik Extension Block in Arunachal Pradesh.

    The task of surveying for minerals in an on-going process. The GSI and MECL are engaged in exploring for Minerals in the North-East region. At present, the GSI is doing exploration for limestone, galena and dimension stone in Meghalaya and for gold in Arunachal Pradesh. In addition, search for minor minerals is also being carried out in various parts of Assam, Meghalaya and Tripura under GSI’s project: DOVEMAP.

    MECL has so far completed a total of 12 mineral investigations for gold, limestone, galena and quartzite in the State of Arunachal Pradesh, Assam, Meghalaya and Nagaland.

    The Department of Mines, had constituted a Task Force headed by the Additional Secretary for evolving an action plan for the proper exploration and development of mineral resources in the North East Region. The Task Force submitted its report in June 1997 suggesting several recommendations for development of the mineral industry in this region. As a part of this effort, the Indian Bureau of Mines has opened a sub-regional office in Guwahati. The IBM has also framed model Minor Mineral Concession Rules for the North-East States and has been collecting samples for testing at the IBM laboratory for beneficiation studies as also giving training facilities to the personnel from the North-East States, free of charge.

    The tannery, the Minister visited, also utilises Indian leather. The 400-tannery cluster at Santa Croce has a common effluent plant maintained by the Consortia by levying user charges from tanneries.

    The Mayor of Santa Croce and the President of the Consortium of Industries in Santa Croce explained to the Minister the functioning of the cluster. The Indian delegation includes the Secretary, Small Scale Industries and Agro and Rural Industries, Shri D.P. Bagchi.

    The Government has decided, in principle, to place fresh ECB approvals up to US$50 millions and all refinancing of existing ECBs under the automatic route. Necessary software and institutional arrangements are being developed to operationalise the automatic route. RBI is being requested to work out modalities for implementation.

    Presently, RBI is empowered to give ECB approvals under ‘US$5 Million Scheme’ and to approve ECBs upto US$10 million under all other windows. Government has decided to delegate further the ECB sanctioning powers up to US$100 million under all Windows to Reserve Bank of India. Corporates and institutions are being advised to submit their applications to Exchange Control Department of RBI, Central Office, ECB Division, Mumbai.

    At present, prepayment approvals are being given by Ministry of Finance/RBI, depending on who had given the initial ECB approval. Henceforth, RBI will give all such approvals, as per prevailing guidelines on prepayment, even in cases where ECBs have been approved earlier by Ministry of Finance. For this purpose, Corporates concerned may approach Exchange Control Department, RBI, Central Office, ECB Division, Mumbai, through the designated authorised dealer giving details, as set out in the annexure to this Press Release, duly certified by the Statutory Auditors.

IV Definition of Infrastructure Sector for ECB purposes

    Maximum limit of ECB for financing equity investment in a subsidiary/ joint venture company, implementing infrastructure projects was enhanced from US$50 million to US$200 million vide press release dated 9^th February 2000. Similarly, ECB exposure for all infrastructure projects was enhanced to 50% of the project cost as appraised by a recognised financial institution/ bank. It was also decided to even allow exposure beyond 50% of the project cost in the case of power projects and other infrastructure projects on merits of each case. It is clarified that the following sectors will qualify as ‘infrastructure sectors’ under the ECB guidelines: -

1. Power,
2. Telecommunication
3. Railways
4. Roads including bridges,
5. Ports
6. Industrial parks
7. Urban infrastructure – Water supply, sanitation and sewage projects.

    For the information of all concerned, the existing ‘all-in-cost ceilings’ for normal projects, infrastructure projects and for long term ECBs are 300,400 & 450 basis points over six months LIBOR, for the respective currency in which the loan is being raised or applicable bench mark(s), as the case may be.

VI Average Maturity

The average maturity of ECBs for the purpose of ECB guidelines shall be weighted average of all disbursements taking each disbursement individually and its period of retention by the borrower.

VII Structured Obligation Facility for NBFCs

    Corporates can avail of the facilities under the credit enhancement scheme as per conditions stated in para 19 of the ECB guidelines. Non Banking Finance Companies (NBFCs) would also be eligible to avail of this facility on compliance with the following additional conditions: -

1. NBFC should be registered with RBI;
2. It should have earned profits during the last three years &
3. It should have secured "AA" or equivalent rating from a reputed Credit Rating Agency.

    However, in the case of NBFCs where a credit enhancement guarantee has been provided by its’ parent company on ‘non-recourse and non-repatriable basis’, the condition of three years’ track record of profit will not be applicable and the credit rating of ‘A or equivalent’ would also be acceptable in such cases.

VIII. The above changes in the approval system will be subject to observance of ECB guidelines by the borrowers.

    Request for prepayments should be forwarded with the following information duly certified by the Statutory Auditors.

1. Loan amount, Sanction Letter No. and Date (Loan Key No.)
2. Net amount drawn after making payment for fee/commission etc.
3. Amount utilised for approved end-use duly supported by a certificate from the Statutory Auditors, indicating that the necessary documentary evidence has already been submitted to the concerned Regional Office of RBI and balance unutilised amount, if any.
4. Amount of ECB proceeds parked abroad – Name of the Bank, Account No. RBI’s sanction letter, certified copy of latest statement etc.
5. Amount of loan repaid and balance outstanding.
6. Residual maturity of the loan and the last date of repayment.
7. Whether any prepayment approval has been obtained by the Company against this loan in the past. If so, details thereof.
8. Prepayment premium (excluding Bonds/FRN issues).
9. Source of funds from which the prepayment is proposed to be effected.
10. Date of proposed prepayment.
11. If the prepayment is proposed to be made from EEFC account, a certificate from the authorised dealer indicating the amount outstanding in EEFC Account

DEVELOP MINIMUM AGENDA FOR E-GOVERNANCE IN TIME BOUND MANNER : SHOURIE

FUNDS WILL NOT COME IN THE WAY OF INTRODUCING IT CULTURE IN GOVERNANCE : PRABHAT KUMAR

FIRST EVER CONFERENCE OF IT MANAGERS IN GOVERNMENT HELD

    Shri Shourie said the country has to come out of monopolistic environment and gear up for competitiveness. Decisiveness has to match rate of change of technology, he added. The nation needs a network of intelligence to match the pace of development in the world. He said the days of ‘file culture’ are over and would shortly be replaced by on-line decisions.

    On impact of information technology on the work force he said the need was to retrain the staff and make use of them for better services. He pointed out that States which had taken lead in information technology revolution have only undertaken redeployment of work force and there is no report of downsizing of government staff taken up by these States.

    He said the country needs to take steps to provide necessary infrastructure and financial institutional support to the young IT entrepreneurs. A world class work culture only will check the migration of these entrepreneurs to other countries. He said the Indian IT industry should not rest at providing back door services and need to develop expertise in specialized services if it has to last long in the fast changing IT world. India needs more attention towards the development of hardware, he added.

    In his key note address, Cabinet Secretary, Shri Prabhat Kumar cautioned the IT Managers of the Government Departments that the private sector was fast entering into the area of providing services and setting standards. He said failure of the government departments in matching their standards would raise questions on the efficacy and legitimacy of the government. He said the need was to introduce e-governance at every level to ensure transparent, effective and non-discriminatory services.

    Shri Prabhat Kumar assured the participants that finances will not be a constraint in creating a comprehensive IT culture in the departments. He said the Ministries have already been permitted to spent 2 to 3 per cent of their budgetary allocation on IT related activities. He said any genuine demand for more funds for this purpose would be considered sympathetically. He called upon the IT Managers of the Government to prepare road map for e-governance within a time frame. He said the need was to provide services in a comprehensive manner with minimum involvement of human discretion.

    Secretary (Personnel), Shri B.B. Tandon in his welcome address called upon all the ministries to have a fresh look at the five year IT Plan in the context of the IT Act recently passed by the government. He said the High Powered Committee for improving administrative efficiency by using information technology constituted under the Chairmanship of the Cabinet Secretary has recommended that all the non-classified Acts, Rules, Notifications, OMs should be entered into the computers in order to make them available easily at the facilitation counters.

    The Conference discussed various IT issues which included progress in preparation/implementation of five year IT-plans, conversion of all Acts/Rules/Circulars into electronic form and making all such non-classified information available on the internet, developing a group of highly trained employees of cadres in IT to act as Project leaders for implementing IT in the organization, evaluating the impact of investment made in IT, using IT for service delivery and integrating delivery of services and development of minimum agenda for e-governance.

    The Minister emphasised that the policy of Special Economic Zones (SEZs) announced recently has been designed to give a boost to economic activity, particularly exports, by providing trade & industry located in the Zones with a hassle-free environment by eliminating red tape, removing procedural obstacles and giving total operational freedom. Imports and exports into and from the Zones will be freely allowed and the government was also contemplating 100% FDI in these zones in all sectors, except for a small negative list, he said.

    The CRs apprised the Minister of their activities, and pointed out the problems and prospects in this regard, giving specific suggestions for enhancing India's trade and economic relations with the individual countries of the region.

    Chairing the meeting, the Secretary, Rural Development, Shri Arun Bhatnagar highlighted the need to accelerate the pace of implementation of the programmes and referred to the opening balances available with the States. The North-Eastern States were advised to ensure effective utilization of the available funds. He said that a Regional Review Meeting would be held soon in Guwahati to discuss specific issues and relevant matters taken up with Banking Division. The Advisor (RD), Planning Commission Dr. Rohini Nayyar also expressed concern over the unexplained opening balances.

    The two-day meeting discussed in detail the issues of rural connectivity, poverty alleviation, rural housing, Panchayati Raj Institutions and land resources schemes. It was pointed out that a large number of districts did not avail of second instalment funds under the IAY and Swaranjayanti Gram Swarozgar Yojana. The Joint Secretary, Poverty Alleviation, Shri Wilfred Lakra, noted that only 64 out of the admissible 563 districts could not receive the second instalments of EAS owing to non-completion of utilization certificates and audit report. Joint Secretary, Rural Housing, Shri Satish Chandra pointed out that in IAY from the current financial year only permissible opening balance of 15% would be allowed and, therefore, it was important for the States to ensure timely utilization of funds.

    In a presentation on PRIs, note was inter-alia, taken of the success stories in Kerala, Tamil Nadu, Madhya Pradesh and Uttar Pradesh. Economic Advisor, Dr. P.V. Thomas emphasized that due importance should be given to monthly reports which form the basis of documents put forth by the Department. He informed that under the Area Officers’ scheme, a team of two officers would be visiting the scheme sites for inspections and discussions. He urged that the Action Taken Reports of Area Officers’ observations should be furnished. Additional Secretary, Land Resources, Shri Mohan Kanda mentioned that an advanced system of on-line monitoring was being evolved and hoped that monitoring mechanism would become more reliable.

    The States, on their part suggested that the second instalments should be released by September or so, enable them to utilize the funds in time. It was suggested that the subsidy determination for particularly SGSY beneficiaries should be according to percentage of BPL members in the self-help groups. State representatives informed the Government of India about the action taken by them with regard to preparation of District-wise Master Plans, identification of Executing Agencies and setting up of State level Standing Committees for executing the National Rural Road Programme.

    The meeting was attended by the State Secretaries of Rural Development Department, the AS & FA, Shri Lalit Mathur as also representatives of the Ministry of Programme Implementation, besides senior officers of the Ministry of Rural Development.

    According to the new guidelines, three berths will be earmarked for handling thermal coal with window for phosphoric acid and molasses vessels. The importers of phosphoric acid and exporters of molasses would be required to inform the Port Authorities atleast 15 days in advance about the arrival of their vessel. Such vessels would be given walk-in priority on the date so intimated.

    These guidelines which have been laid down following complaints regarding non-availability of berths at Chennai Port for vessels handling various types of cargo, also stipulate various do’ s and dont’s for handling different cargo at different times. The claims of various interest groups including Tamil Nadu Electricity Board (TNEB) have been taken into consideration.

    Being organized in association with National Informatics Centre and the Smart Card Forum of India, the Seminar will seek to identify the best possible uniform pattern of computerization in RTOs, thus paving the way for introduction of I.T. into Road Transport Sector .

    The Seminar will be attended by Transport Secretaries of various states, other representatives of States and representatives of I.T.Industry.

    Shri Ashoke Joshi, Secretary, Road Transport & Highways, Ministry of Surface Transport will chair the first session of the Seminar. State Governments will present status papers and share their experiences. Presentation on the second day will focus on technology exposition point of view and the aspect of standardization.

    An exhibition from vendors is also being organised at the Seminar venue.