The Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation, has released the revised estimates of national income for the financial year 1999-2000 at constant (1993-94) and current prices. Further, the CSO has also released the quarterly estimates of Gross Domestic Product (GDP) for the fourth quarter [Jan-Mar (Q4)] of 1999-2000, both at constant (1993-94) and current prices.

2.The advance estimates of national income for the year 1999-2000 were released on 4 February 2000. These estimates have now been revised incorporating latest estimates of agricultural production, index of industrial production and performance of key sectors like, railways, transport other than railways, communication, banking and insurance and government expenditure.

3. The salient features of these estimates are detailed below:

4.GDP at factor cost at constant (1993-94) prices in the year 1999-2000 is now estimated at Rs. 11,51,355 crore (as against Rs. 11,45,436 crore estimated earlier), showing a growth rate of 6.4 per cent (against the growth rate of 5.9 per cent estimated earlier) over the Quick Estimates of GDP for the year 1998-99 of Rs. 10,818,34 crore, released on 28 January 2000.

5.The growth rate of 6.4 per cent in GDP during 1999-2000, has mainly been due to the growth rates of over 5 per cent in the sectors "manufacturing" (8.5 per cent as compared to 7.0 per cent earlier), "electricity, gas & water supply" (7.4 per cent as compared to 8.0 per cent earlier), "construction (9.1 per cent as compared to 9.0 per cent earlier), "trade, hotels, transport and communication" (6.7 per cent as compared to 5.9 per cent earlier), "financing, insurance, real estate & business services" (10.6 per cent as compared to 10.5 per cent earlier) and "community, social & personal services" (10.0 per cent as compared to 9.8 per cent earlier). The sectors "agriculture, forestry and fishing" (1.3 per cent as compared to 0.8 per cent earlier) and "mining & quarrying" (0.3 per cent as compared to 0.4 per cent earlier), however, recorded low growth rates during the year.

6.The net national product (NNP) at factor cost, also known as national income, at 1993-94 prices is now estimated at Rs. 10,11,474 crore (as compared to Rs. 10,06,005 crore estimated earlier), during 1999-2000, as against the previous year’s Quick Estimate of Rs. 9,49,525 crore. In terms of growth rates, the national income is expected to rise by 6.5 per cent during 1999-2000 in comparison to the growth rate of 6.8 per cent in 1998-99.

7.The per capita income in real terms (at 1993-94 prices) during 1999-2000 is estimated to attain a level of Rs. 10207 (as against Rs. 10151 estimated earlier), as compared to the Quick Estimates for the year 1998-99 of Rs. 9739. The growth rate in per capita income is estimated at 4.8 per cent during 1999-2000, as against the previous year’s estimate of 5.0 per cent.

8.GDP at factor cost at current prices in the year 1999-2000 is estimated at Rs. 17,72,183 crore, showing a growth rate of 9.9 per cent over the Quick Estimates of GDP for the year 1998-99 of Rs. 16,12,383 crore, released on 4 February 2000.

9. The NNP at factor cost at current prices is now estimated at Rs. 15,71,680 crore during 1999-2000, as compared to Rs. 14,31,527 crore during 1998-99 showing a rise of 10.0 per cent.

10. The per capita income at current prices during 1999-2000 is estimated to attain a level of Rs. 15887, as compared to the Quick Estimates for the year 1998-99 of Rs. 14682, showing a rise of 8.2 per cent.

11. Estimates of gross/net national product, gross/net domestic product and per capita income alongwith GDP at factor cost by kind of economic activity for the years 1998-99 and 1999-2000 at constant (1993-94) and current prices are given in Statements 1 to 4.

12. The four quarters of a financial year are denoted by Q1, Q2, Q3 and Q4. GDP at factor cost at constant (1993-94) prices in Q4 of 1999-2000 is estimated at Rs. 3,24,779 crore, as against Rs. 3,02,963 crore in Q4 of 1998-99, showing a growth rate of 7.2 per cent. The sectors which registered significant growth rates in Q4 of 1999-2000 over Q4 of 1998-99 are "manufacturing" at 10.5 per cent, "electricity, gas & water supply" at 6.6 per cent, "construction" at 10.0 per cent, "trade, hotels, transport & communication" at 8.7 per cent, "financing, insurance, real estate and business services" at 12.3 per cent and "community, social and personal services" at 11.5 per cent.

13. GDP at factor cost at current prices in Q4 of 1999-2000 is estimated at Rs. 5,02,179 crore, as against Rs. 4,50,604 crore in Q4 of 1998-99, showing a rise of 11.4 per cent.

14. Estimates GDP at factor cost by kind of economic activity for the four quarters of 1997-98, 1998-99 and 1999-2000 at constant (1993-94) and current prices, alongwith the growth rates, are given in Statements 5 and 6, respectively.

15. The next release of quarterly GDP estimate for the quarter April-June, 2000 (Q1 of 2000-01) will be on 29.09.2000.

Note: The figures in parentheses show the percentage change over previous year.

Note: The figures in parentheses show the percentage change over previous year.

'42'

    In a major initiative to find a solution to the issue of subsidy overdrawal by certain fertilizer companies, the Minister for Chemicals and Fertilizers, Shri Suresh Prabhu, had made a statement in the Lok Sabha during the recent Budget Session of Parliament. The issue is of utmost importance as the fertilizer subsidy figure has been increasing over the years.

    The Government have been considering ways and means to reduce the burden on account of the fertilizer subsidy. The need for minimising the outgo on account of the fertilizer subsidy assumed added importance in view of the increase in production of urea from 12.83 million tonnes in the financial year 1991-92 to 19.87 million tonnes in the financial year 1999-2000. This level of production was achieved with an installed capacity of 18.60 million tonnes. The question of excess payment of subsidy on account of capital related charges to some of the units had engaged the attention of both Government and Parliament. On the basis of a committee of experts which was appointed by the FICC, the Government have, on an interim basis, reassessed the capacities of the various units and announced a downward revision of the retention prices of the respective units based on such reassessment, as a result of which a saving of Rs.600 crore is expected in the fertilizer subsidy in the current financial year itself.

    The committee headed by Dr. Y.K. Alagh, which was appointed to advise the Government on certain issues arising out of the expert committee report, especially those relating to the cut off date, the method for quantifying the amounts to be recovered from the various units and the method of recovery of the arrears etc., is expected to complete its task during the coming two months. The decision taken by the Government is an interim one pending the receipt of Dr. Alagh Committee’s report.

    For the year 2000-01, indigenous producers have offered to produce 21.24 million tonnes of urea. But the Government had decided to restrict the acceptance of urea for direct sales to 100 per cent of the installed capacity for each of the units. On this basis, nearly 20 million tonnes of urea will be made available for direct sale under ECA. However, with a view to optimise indigenous production, Government has allowed sales of balance quantity of indigenous urea to complex manufacturers in lieu of imports which were being resorted to in the past.

    The Minister of State for Rural Development, Shri A. Raja has called for a need for paradigm shift in our approach towards land development. Inaugurating the International Workshop on Rural Diversification and Sustainable Livelihoods here today, the Minister pointed out that with the strengthening of the Department of Land Resources in the Ministry of Rural Development, management rather than the mere use of land has become the central theme of our approach. Shri Raja pointed out that there has been a three-fold increase in the budget of this Department for the watershed development programmes. The Minister said that the land resource management has to ensure dynamic conservation, sustainable development and equitable access to the benefits of government interventions comprising of short term, medium term and long-term goals. He added that apart from the paradigm shift, our interventions have to be regionally differentiated, target-group-centred and have to follow an integrated and holistic approach.

    Shri Raja pointed out that poverty and resource deprivation is a global problem that requires local solution. In order to tackle the situation some major initiatives have been taken by the Department of Land Resources in the field of watershed management and watershed ‘plus’ approach, which aims at sustainable rural livelihood systems

    While delivering the keynote address, the Additional Secretary, Department of Land Resource, Shri Mohan Kanda said the focus of the workshop has to be narrowed down to finding solutions to the persisting maladies of poverty and deprivation. He said poor people generally see diversification as a means of adding part-time or seasonal work to their existing activities. Livelihood diversification is seen as a safeguard against vulnerability, including the vulnerability generated by seasonal fluctuations in income; it may be an effective means of accumulating resources and so escaping from poverty. He added that the watershed approach has been chosen to make the schemes more people centred. The National Committee on Watershed Training would launch a nation-wide campaign to spread the massage.

    The two-day workshop, in collaboration with Overseas Development Institute (ODI) and Department for International Development (DFID), London is an initiation of a three-year study on rural poverty, diversification and access of natural resources in the context of sustainable livelihoods. The aim is to examine how peoples’ strategies have evolved and how well the government has responded. The workshop hopes to develop typologies and rapid techniques for helping to assess what interventions are likely to be responsive to the poor in specific settings. Strategies will be prepared with and for the government which help to identify approaches, entry points, priorities and sequences that support diversified livelihoods of the poor. The ODI along with Universities of Reading and East Anglia propose to study the above subject primarily in Madhya Pradesh, Andhra Pradesh, Gujarat, Orissa and Himachal Pradesh in India as also in Nepal and Bangladesh.

    The workshop is being attended by participants from University of Leeds, ODI, London, Ann Natural Resource Institute, UK, Department of Agriculture, Bangladesh, National Planning Commission, Nepal, DFID, India and representatives from the states, banking sector, research organizations. Senior officials of the Ministry of Rural Development are also making presentations on land resource management, poverty alleviation and Micro-Finance, diversification and policy concerns.

    During May, 2000, 2685 companies were registered in India under the Companies Act, 1956 as against 2544 companies registered during the corresponding month of the previous year and 3055 companies during the previous month. Of the 2685 companies registered during the month, 2677 companies were limited by shares.

    Besides, 2677 companies limited by shares, eight companies were registered as guarantee companies. The total authorised capital of the companies limited by shares put together amounted to Rs.909 crores. 2677 companies limited by shares registered during the month consist of 244 public limited companies with an authorised capital of Rs.514 crores and 2433 private limited companies with an authorised capital of Rs.395 crores. The following table indicates the position:

    The highest number of companies, limited by shares, registered during the month were reported from the State of Maharashtra (736) followed by the National Capital Territory of Delhi (501). The States of Tamil Nadu (249), Gujarat (231), Andhra Pradesh (168), Karnataka (168) and West Bengal (146) also reported comparatively large number of companies registered during the month. These seven States together accounted for nearly 83 per cent of the total number of companies registered during the month. A total of 27.9 per cent registered companies were in Maharashtra followed by 18.7 per cent in National Capital Territory of Delhi, Tamil Nadu 9.3 per cent, Gujarat 8.6 per cent, Andhra Pradesh 6.3 per cent, Karnataka 6.3 per cent and West Bengal 5.5 per cent. Other States comprised 17.5 per cent.

    Analysis of new registration by broad Industrial Classification during the month brings out that the highest number of companies were registered under the Industrial Classification "Financing, Insurance, Real Estate and Business Services" (932) followed by "Manufacturing" (919). The other important Classification under which a large number of companies were registered were "Wholesale and Retail Trade, Restaurants and Hotels" (329). Financing companies formed 36 per cent, manufacturing 34 per cent, trading 12 per cent, construction 6 per cent, social services 6 per cent, transport sector 4 per cent and others 2 per cent.

    Two hundred thirty three Non-Government companies (each with authorised capital of Rs.50 lakhs or above) were registered during the month of May, 2000 as compared to 368 such companies registered in the previous month and 318 companies registered in May, 1999.

    Forty companies have reportedly ceased functioning during May, 2000 either by going into liquidation or their names having been struck off under Section 560 of the Companies Act. Out of them, 19 were Public Limited companies and 21 Private Limited. The number of such companies in the previous month was 31. Of the 40 companies, nine belong to the State of Assam, eight to Jammu & Kashmir, seven to Chandigarh and remaining 16 to other States. Of the companies which ceased functioning, 15 fall in the group of "Manufacturing" and 12 in "Financing, Insurance, Real Estate and Business Services".

    The Union Minister of Law, Justice and Company Affairs Shri Ram Jethmalani has clarified that the controversy arising out of cricket match-fixing has taken an ugly turn with many a reputation being tarnished based on his statement to PTI that it may lead to a long drawn litigations without any result. Shri Jethmalani says that the offence of cheating is compoundable.

    The Law Minister wants the cricketers under cloud to come out with disclosures. He says that they must admit their wrong doing publicly and pay taxes on their concealed income. They should pledge publicly that this conduct will not be repeated again. If there are any foreign exchange offences or link with the underworld these had to be fully investigated, says the Minister. If there is a genuine repentance and remorse then the fact that the cricketers are suffering public humiliation should be considered enough punishment and we should forgive and forget. Shri Jethmalani says that his colleague, the Minister for Sports Shri S.S. Dhindsa has made an offer that if the cricketers admit their guilt, the Government will take a lenient view. The Law Minister fully supports this statement of Shri Dhindsa.

'17'

    Shri Murasoli Maran, Union Minister of Commerce and Industry, would be inaugurating the three-day (July 5-7) Forum on Intellectual Property Policy and Strategy in the 21^st century on the 5^th of next month in the capital. The objectives of the Forum will be to review policy perspectives and strategic considerations in the area of intellectual property in the 21^st century, to discuss new and emerging global intellectual property issues including strategic management of intellectual property for enhancing competitiveness, particularly in small & medium enterprises (SMEs). The Forum is being organised by the Department of Industry Policy & Promotion, Ministry of Industry in association with the World Intellectual Property Organisation (WIPO) and Federation of Indian Chamber of Commerce and Industry (FICCI). Dr. Raman Singh, Minister of State for Commerce and Industry, will also attend the inaugural function.

'30'

    India would get a grant of $82 million for gradual phase out of production of Ozone Depleting Substances (ODS) such as CFCs (Chlorofluorocarbons) in the country. This is the total funding that would be available to India from the Multi-Lateral Fund for cessation of production of Ozone Depleting Substances (ODS) for the implementation of Montreal Protocol. The project will be implemented through the World Bank.

    The Railway Minister Ms.Mamata Banerjee will flag off a new Bi-weekly Rajdhani Express between Sealdah and New Delhi tomorrow from Sealdah. The day will also mark introduction of many other new trains in other parts of the country. These include an overnight express between Bangalore and Shimoga, Bikaner-Suratgarh Express and Bangalore-Puttaparti Express. The two Mumbai bound Rajdhani Expresses viz. New Delhi-Mumbai Rajdhani and the August Kranti Rajdhani will also start running on all seven days of the week in place of the present six-day schedule.

    In a major bid to promote and project India's efforts in strategizing deliverables in Information Technology, as an "Investment Hub Centre", Minister for Information Technology, Shri Pramod Mahajan will deliver the key note address at the Indonesian International Telecommunication, Media and Information Technology Conference and Exhibition (IITELMIT) tomorrow at Jakarta. The Conference which began on 29^th June, 2000 is a three-day session focussing on Telecom on the first day, Media on the second day and IT on the concluding day.

    Good Manufacturing Practices (GMP) for Ayurveda, Siddha and Unani medicines have been notified vide Gazette Notification of India Extraordinary dated 23^rd June,2000 vide GSR No.560-E. This is an important step in improving the quality and standards of ASU drugs being manufactured in about 9000 Licensed Ayurveda, Siddha and Unani Pharmacies in the country and assuring the public that ASU drugs effective and safe. The salient features of the Gazette Notification are as follows:

1. Rules for Good Manufacturing Practices for ASU drugs indicating the essential infrastructure, manpower and other requirements have come into force from 23^rd June, 2000. However, a buffer period of two years has been given to the existing registered manufacturing units to comply with these rules by improving the infrastructure. The qualifying units can get the GMP certificate with immediate effect.
2. Registered Vaidyas, Hakims & Siddhas and teaching institutions preparing medicines for their own dispensing to the patients have been exempted from the purview of the GMP.
3. Good Manufacturing Practices are prescribed to ensure that :

1. Raw materials used in the manufacture of drugs are authentic, of prescribed quality and are free from contamination;
2. The manufacturing process is as has been prescribed to maintain the standards;
3. Adequate quality control measures are adopted;
4. The manufactured drugs which is released for sale is of acceptable quality;
5. To achieve the objectives listed above, each licencee shall evolve methodology and procedures for following the prescribed process of manufacture of drugs which should be documented as a manual and kept for reference and inspection.

1. Factor premises will have minimum covered area of 1200 sq. ft. + 200 sq. ft. for furnace and bhatti purposes. The manufacturing plant should have adequate space for:

1. Receiving and storing of raw material; (ii) Manufacturing process areas;

1. Quality Control Section; (iv) Finished goods store
2. Office; and (vi) Rejected Goods/ drugs store.

1. Specifications have also been laid down on location, surroundings of the building, water supply sewerage disposal, waste container, cleaning storage of raw materials, packing materials, finished goods store, working space, health and environment, sanitation of the workers including their medical services.
2. Specifications have been made about the batch of manufacturing reference during the process of preparation etc.
3. The specific record of the market complaints will also have to be maintained.
4. Provision for quality control has also been made through a separate quality control section. However, the manufacturers will also use the quality control facilities of Government approved laboratories.
5. One person with degree qualifications of Ayurveda/Siddha/Unani will be mandatorily posted in the quality control section. In addition they may have the experts of pharmacy, pharmacognosy & chemistry.
6. The quality control will be made as per the prescribed pharmacopoeial standards of Ayurveda/Siddha/Unani drugs. However, where tests are not available, the test performed according to the manufacturers’ specifications or other information available will be given.
7. Specifications for areas for other manufacturing activity like pill making, tablet making, capsuling etc. have been specified. The GMP has also recommended the various equipments required for carrying out various manufacturing procedures.

    The standards and specifications in these GMP have been kept moderate keeping in view the interest of small scale industries in this sector. However, consumers interests for ensuring quality and standards have also been taken care.

    The implementation of GMP will increase the faith in public in the quality of Ayurveda/Sidda/Unani drugs. This will also meet the requirements of various importing countries for ASU drugs.

    This step of Government will therefore increase the domestic as well as export business of ASU drugs.

'16'

    Shri Murasoli Maran, Union Minister of Commerce and Industry, has assured that all tobacco stocks at the auction platforms will be cleared within the next 60 days and expressed the hope that with the cooperation of all buyers including manufacturers and traders, it would be possible to step up total purchases of tobacco to 2 million kgs daily from the auction platforms as against the present offtake of around 1.5 million kgs daily. At a meeting held here today with a delegation of tobacco manufacturers and traders, led by Shri Yerran Naidu and Shri Y.V. Rao, Members of Parliament from Andhra Pradesh, Shri Maran thanked the manufacturers and traders (including exporters) for coming forward to procure as much tobacco as possible and assured that on its part the government through the State Trading Corporation (STC) and the Tobacco Board would continue to play its role so as to ensure that the tobacco growers were not left to the market forces alone. Shri Prabir Sengupta, Commerce Secretary and Shri S.M. Acharya, Joint Secretary and acting Chairman of Tobacco Board were also present at the meeting. Shri Sengupta said that STC would be advised to take steps immediately to clear the godowns so that the auctions would continue uninterrupted.

'5'

    The Home Minister, Shri L.K. Advani today released a book entitled "An Eye to Indian Policing – Challenge and Response". The author is Shri V. Vaikunth, former Director General of Police, Tamil Nadu. The book is a record of his experiences in police for more than three decades.

    The system of transaction value assessment for excise will come into operation from tomorrow as was announced in the Budget for the year 2000-2001. The new system aims at making the calculation norm based, simpler and subject to less problems of interpretation than in the past. It is expected to make the valuation for assessment of excisable goods more systematic and in tune with international practices and would also help in making it more realistic to the trade practices.

    The new valuation rules and the explanatory notes issued by the Ministry of Finance can be accessed on the internet at http://finmin.nic.in/fdrev.htm.

    The Prime Minister will dedicate a 15 MW Con mere a' Wins Power Project and a Wind Test Station to the Nation on July 4. 2000 at Kayathar near Tirunelveli. in Tamil Nadu The wind power project comprises 30 wind turbines of 500 KW capacity, with 11 wind turbines installed al Kayathar and 19 wind turbines ar Perungudi. The project has been set up at a cost of Rs. 70 crore by M/s. Mohan Breweries and Distilleries Limited, with co-financing by Danish International Development Agency and other Danish and Indian financial institutions.

    The Wind Test Station at Kayathar has been set up by the Centre for Wind Energy Technology an Autonomous Institution of the Ministry of Non-Conventional Energy Sources. It would address quality issue of wind turbines relating to standardisation. testing and certification. Technical and partial financial assistance has been provided by DANIDA in the setting up of the Test Station The Centre for Wind Energy Technology has been established to provide technical support to wind power development in the country with focus on wind resource assessment, research & development, information dissemination and training, besides the work to be undertaken by its Test Station.

    Wind power installations, which had dropped in the country during the last two years, have started to pick up again. A capacity ol 143 MW was established during 1999-2000. The total wind power capacity in the country has reached 1170 MW. About 5.5 billion units have been fed to the State grids from these projects. Apart from a capacity of 55 MW from demonstration projects the remaining capacity of 1115 MW has come through commercial projects set up by private sector companies. These companies either use this power for their captive requirements, or sell the surplus power to the grid, or to other HT consumers, utilising wheeling, banking, buy-back or third party sale facility provided by the State Electricity Boards for these projects.

    India is among the top five countries producing power from wind. Germany, USA, Denmark and Spain are the only countries ahead in wind power installations. Wind power capacity worldwide has now reached 13,000 MW.

    Wind power projects aggregating to about 600 MW are being planned in the States of Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh. It is expected that a capacity of another 500 MW would be added during the remaining two years of the Ninth Plan, including 200 MW during the current year. The installations are projected to pick up even further during the next two Plan Periods. A wind power capacity of about 6,000 MW is likely to be added in the country by the year 2012. A good local production base for wind turbines now exists in the country. Wine turbine and wind turbine parts made in India are being exported to Europe and Australia.

    The All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 1982=100 has increased by two points to stand at 440 (four hundred and forty only) during May, 2000. It had increased by 4 points during May, 1999.

    The Fall/Rise in the index varied from centre to centre. In 42 centres, increase in the index was noticed between 1 to 10 points, in 5 centres it remained constant while in 23 centres it recorded a decrease of 1 to 8 points when compared to the previous month.

    The index in respect of six main centres for March, 2000 stood at the following level:-

1. Ahmedabad 439 4. Chennai 477

2. Bangalore 425 5. Delhi 518

3. Calcutta 439 6. Mumbai 511

    The point to point rate of inflation, based upon the CPI-IW has decreased from 5.54 per cent in April, 2000, to 5.01 per cent in May, 2000. In May 1999 it was 7.71 per cent.

‘23’

    The Railway Minister Ms.Mamata Banerjee will flag off a new Bi-weekly Rajdhani Express between Sealdah and New Delhi tomorrow from Sealdah. The day will also mark introduction of many other new trains in other parts of the country. These include an overnight express between Bangalore and Shimoga, Bikaner-Suratgarh Express and Bangalore-Puttaparti Express. The two Mumbai bound Rajdhani Expresses viz. New Delhi-Mumbai Rajdhani and the August Kranti Rajdhani will also start running on all seven days of the week in place of the present six-day schedule.