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    The government has set up an Expenditure Reforms Commission to find solution to the process of downsizing of government in a systematic way so that the role and administrative structure of the government are reduced. The Commission headed by the former Finance Secretary, Shri K.P. Geethakrishanan will have Shri V.S. Jafa, former Financial Advisor, Minister of Defence, Shri Kirit Parekh, the renowned economist, Shri C.M. Vasudev, Secretary (Expenditure) as Members and Shri J.S. Mathur, Addl. Secretary in the Ministry of Finance as Member Secretary. While the Chairman and Member Secretary are full time Members, others will be part-time Members. The Commission will submit its final report within a period of one year. However, the Commission may send recommendations to the Government on a quarterly basis so that action can be taken as and when these recommendations are received.

    The terms of reference of the Expenditure Commission are as follows:

1. Keeping in view the evolving role of Government, the need to foster convergence and avoiding overlap in the functions of different Central Government Ministries, Departments and attached organisations and the role of the State Governments, suggest a road map for reducing the functions, activities and administrative structure of the Central Government;
2. Review the framework of all subsidies, both explicit and implicit, examine the economic rationale for their continuance and make recommendations for making subsidies transparent and suggest measures for maximizing their impact on the target population at minimum cost;
3. Review the framework for determination of user charges of departmental and commercial entities and suggest an effective strategy for cost recovery through user charges;
4. Review the adequacy of staffing under Central Government Ministries, attached offices and institutions and suggest measures for rationalizing the staff and cadres of different services. In this context also review the existing arrangements for re-deployment and re-training of surplus staff to ensure that any additional manpower for new areas of Government activities are met by re-deployment;
5. Review the procedure for setting up of Government funded autonomous institutions and their pattern of funding and suggest measures for effecting improvement and reducing budgetary support for their activities; and consider any other relevant issues concerning expenditure management in Government and make suitable recommendations.

    The Commission will devise its own procedures and may appoint Study Groups as it may consider necessary for different areas of Governmental activities to facilitate early finalization of its report. It may call for such information and take such evidence as it may consider necessary. The Government of India trust that the State Governments will extend to the Commission full cooperation and assistance. The Ministries/Departments of the Government of India will furnish such information and documents and render such assistance as may be required by the Commission.

'26'

    The Ministry of Civil Aviation has put the draft Civil Aviation Act –2000 on internet for inviting responses. The address of the internet site is http://civilaviation.nic.in. After considering the responses/suggestions received, the final Civil Aviation Act will be enacted by the Parliament. The Act proposes to provide for-

i better development and regulation of civil aviation including operation of air transport services to meet the needs of the people for safe, secure, regular, efficient and economic air transport;

ii establishment of the Civil Aviation Authority;

iii continued adherence by India to the Chicago Convention, the Tokyo Convention, the Hague Convention and the Montreal Convention including Montreal Protocol;

iv Adherence by India to the Convention for Unification of Certain Rules Relating to International Carriage by Air signed at Montreal on 28^th May, 1999.

‘5’

TERRORIST INFILTRATION FROM NEPAL

    The 1,751 Kms. Long Indo-Nepal border has historically been an open border with a visa-free travel regime. There have been instances in recent years of misuse of this open border for staging terrorist activities directed against India. In view of these developments, the concerned agencies of His Majesty’s Government of Nepal and the Government of India have remained in regular touch, both directly and through the bi-lateral institutional mechanisms, such as the Joint Working Group on Border Management and Home Secretary level talks. As a result of cooperation between the two countries, many terrorist conspiracies sponsored by under-cover intelligence operatives based in Pakistan Embassy in Kathmandu have been neutralised.

    In view of the friendly relations between the two countries and extensive trans-border linkages of the local population on both sides, it may not be desirable to change the nature of this border by erecting fencing along this border. An Action Plan has been prepared in consultation with concerned States to strengthen policing and intelligence collection along this border, including patrolling of vulnerable stretches.

    This information was given by Shri Ch. Vidyasagar Rao, Minister of State for Home Affairs in reply to a written question in Rajya Sabha by Shri Abani Roy.

‘5’

    To curb and control militancy in Jammu and Kashmir, the Government has adopted a multi-pronged approach which includes, inter-alia, strengthening the border management with multiteared deployment of Security forces neutralising plans of the militants by proactive action against them in the hinterland, gearing up intelligence machinery, greater functional integration through an institutional framework of Operations Groups and Intelligence Groups of the UHQ at all levels, improved technology, weapons and equipments for Security forces. Steps have also been taken afresh to flush out militants and curb militant activities including closer vigil on the border, establishment of more naka parties in depth areas to check infiltration/exfiltration, more pickets, intensive patrolling and extensive cordon and search operations.

    The relief package sanctioned by the Government of Jammu and kashmir for victims of border shelling/firing in Jammu and Kashmir includes free ration at the rate of 9 kgs. Of food grain per month per person, kerosene oil at the rate of 10 litres per family per month, cash assistance at the rate of Rs.200 per member per month etc. Ex-gratia relief is also paid under the standing orders to the next of kin of persons killed at the rate of Rs.1 lakh and suitable amount to persons injured as per the relevant Government orders. For damaged immovable property, 50% of the assessed loss, subject to a ceiling of Rs.1 lakh in each is paid. Free medical treatment including cost of drugs till such time the persons go back to their homes is also provided. Free medical treatment is also provided to the livestock of the families in the border belts.

    This information was given by Shri Ch. Vidyasagar Rao, Minister of State for Home Affairs in reply to a written question in Rajya Sabha by Shri C.M. Ibrahim.

    The Finance Minister, Shri Yashwant Sinha has said that the proposals in the new Budget are an indicator of the government's strongest determination to move ahead with the second-generation reforms. He was addressing the FICCI National Seminar on Annual Budget here today. Mr. Sinha advised people not to jump into conclusions based on the movements in stock markets and said that the stock market will bounce back once the steps announced in the budget sinks in.

    Shri Sinha also explained that some of the decisions were taken in the backdrop of prevailing circumstances, which necessitated an additional allocation for Defence, to state governments and on plan expenditure. But for this, the proposed fiscal deficit could have been between 4-4.5 per cent of GDP as against the 5.1 per cent announced in the budget.

    The Minister clarified that some of the hard decisions have been taken keeping in mind the need to ensure equitable distribution of the burden on all sections of the society. He was referring to reduction in food and fertilizer subsidy, marginal increase in the surcharge on personal income tax, minimum alternative tax and the tax on dividend. Shri Sinha also said that the increase in tax on dividend from 10 per cent to 20 per cent is not going to effect anyone adversely and in fact it will mean reduction from the earlier 30 per cent under which many of the tax payers in this category falls.

    Shri Sinha said that the steps taken in the area of the indirect taxes like the introduction of CENVAT, dispensing with the system of daily payment of taxes to fortnightly payment and other procedural changes are revolutionary.

    Referring to the proposed target of Rs. 10,000 crores as proceeds from disinvestment of PSUs, Shri Sinha said that he is being very modest in setting this target and hoped that the government's preparedness in this area may result in mobilizing more than the targeted amount during the current fiscal.

    The Finance Minister also said that the tax on export income is also a measure in the direction of distributing the burden equitably and said that at a time when industry is facing competition even inside the country, one should not continue to have the same mind set that the Indian exports should be protected.

    Commenting on the down sizing of the government, Shri Sinha said that across the board ban on government recruitment is not possible and by the proposed down sizing, he intends to induce greater efficiency in government functioning. The newly appointed expenditure commission would look into all aspects of this, Shri Sinha said.

    In regard to the interest rates, Shri Sinha said that in his budget, by reducing the interest on GPF by 1 per cent and by abolishing the interest tax of 2 per cent, he has created conducive atmosphere for the Reserve Bank of India (RBI) to take appropriate decision.

    Foreign Institutional Investors registered with SEBI are permitted to invest subject to an aggregate investment limit of 24% of the issued and paid up capital of an Indian company. In terms of the Press Note dated 4^th April, 1997, the Indian companies were permitted to enhance the normal aggregate portfolio investment limit from 24% to 30% under specified special procedure. Aggregate investment limits applicable to FIIs had also been segregated through a Press Note issued on 22^nd June, 1998 from the portfolio investment limits for NRIs/PIOs/OCBs.

    In his Budget Speech 2000-2001, the Finance Minister had announced an increase in the portfolio investment ceiling applicable to Foreign Institutional Investors (FIIs). Pursuant to the announcement, Indian companies would henceforth be permitted to raise the aggregate ceiling for FIIs portfolio investments from the normal level of 24% to 40% of the issued and paid up capital of an Indian company subject to:

1. approval by the Board of Directors of the company to the enhanced limit upto 40% and
2. A special resolution passed by the General Body of the company approving the enhanced limit upto 40%.

    All other conditions applicable to FII portfolio investment would continue to be operative as before.

‘5’

    Andhra Pradesh, Bihar and Madhya Pradesh have been witnessing some increase in left extremist activities

    As per available information, the details of naxalite violence during the last three years in these States are as under:

    The Central Government has been taking effective initiative in helping the concerned States to tide over the situation. In addition to constant review of all problems areas at the high level Coordination Centre under the Chairmanship of Union Home Secretary, the Central Government has been sharing with the States intelligence inputs and extending possible help of Para Military Forces from time to time. 50% of the Security Related Expenditure of the States on account of left extremism violence has been met by the Centre with effect from April 1, 1996. The Integrated Action Plans, received from some of the States, have also been forwarded by this Ministry to the Planning Commission for favourable consideration.

    This information was given by Shri Ch. Vidyasagar Rao, Minister of State for Home Affairs in reply to a written question in Rajya Sabha by Shri Ananta Sethi.

‘5’

    Available information about the amount of fake currency notes seized during the last 3 years is given below:

    Fake Indian currency notes are being fabricated in India through a variety of techniques involving the use of printing presses, colour photocopiers, scanners and colour printers. These are also being clandestinely inducted from across the Indo-Pak and Indo-Nepal borders.

    A committee has been constituted by the Ministry of Finance on 22^nd February, 2000 for examining cases of counterfeit currency notes and to recommend remedial measures that should be taken by the note printing presses from time to time. The Committee has been asked to submit its report within two months.

    It may be mentioned that the Reserve Bank of India issues press releases from time to time to enable the public to distinguish between genuine and fake currency notes. In order to combat counterfeiting, currency notes are also now printed with additional security features. The Central Bureau of Investigation has created a Special Unit for exclusive investigation of counterfeit currency notes. The Border Security Force has alerted its forward troops to be more vigilant so as to ensure that such currency notes are not smuggled into the country.

    This information was given by Shri I.D. Swami, Minister of State for Home Affairs in reply to a written question in Rajya Sabha by Shri Raghavji.

'26'

    The Bureau of Civil Aviation Security has extended the existing ban on entry of visitors to the airport upto March 31, 2000. The ban has been extended to ensure that the Civil Aviation operations take place in a secure environment.

WAGE REVISION SHOULD BE LINKED WITH PRODUCTIVITY-PANT

    To increase the labour output, wage revisions and bonus payments should be linked with the productivity and the concept should be extended to unorganized sector and public administration also. This was stated by Deputy Chairman, Planning Commission, Planning Commission, Shri K.C. Pant, while addressing the Convention on National Productivity Policy, here today.

    Stressing on the need of coordinated efforts to improve productivity, Shri Pant said that it desires national productivity policy and to bring the entire issue in focus. He said that in the changed global scenario, the corporate world would have to go through a painful phase of restructuring to become more effective, productive and competitive in the world market. Factors hindering growth of productivity & entrepreneurship culture needed to be analysed and quickly addressed to ensure rapid growth of economy. Country should aim at an economic growth rate of 7 - 8 per cent to tackle persisting problem of poverty which had been around 6 per cent in the post reforms period.

    He said that decision makers and managers need to drastically change their mind set to ensure efficient use of resources and quality of expenditure. Even with the present level of investment, it is possible to derive much larger benefits.

    Highlighting the importance of rural economy in the overall perspectives, Shri Pant said that in the process of economic growth, the vulnerable sections of our society should not be left out. Policy initiatives must ensure that they cater to the needs of our rural people. Even a small incremental improvement in the technology, in use in rural areas, is capable of yielding very large dividends, he added.

'38'

    Union Water Resources Minister, Dr. C.P. Thakur is rushing to the drought-affected areas of Gujarat on 3^rd and 4^th March. He will inaugurate Narmada Main Canal in Kamboi village of Patan District in Gujarat. Shri Keshubhai Patel, Chief Minister of Gujarat, will also be present on the occasion. Thereafter, Dr. Thakur will visit Babri, Tara Nagar and neighbouring drought-affected areas of Patan and Mehsana districts for an on-the-spot inspection of the on-going relief work and drinking water schemes in the area. He is scheduled to return to Ahmedabad by the same evening. Next day, the Minister will visit the Sinor Wadas and Dabhoi villages affected by Sardar Sarovar Project to take stock of the relief and rehabilitation schemes there. Later, the Minister is scheduled to visit Kevadia and Sardar Sarovar Dam to inspect the underground power house and Canal Head Power House in the project campus. While returning to Gandhi Nagar the same evening, the Minister is scheduled to hand over to the State Government the Deep Bore Tubewell built by Central Ground Water Board (CGWB) at Shertha. Dr. C.P. Thakur has already asked the Central Ground Water Board to hand over 111 such tubewells built by the Board to the State Government to tide over the problems of drinking water as a result of drought situation in the State. The handing over of the tubewell built by CGWB at Shertha to the State Government will be first in the series. It is hoped that this will go a long way in solving the drinking water problem prevailing in Gandhi Nagar and Saurashtra region of Gujarat.

    On similar lines the Central Ground Water Board has been asked to dig similar deep bore tubewells in Rajasthan for handing over to the Rajasthan Government so as to enable the State Government to tide over the problem of drought in Rajasthan.

    Dr. Thakur is also scheduled to visit Madhya Pradesh to take stock for an on-the- spot inspection of the progress of on-going work in Narmada Valley Project and also to inspect some of the areas affected by Sardar Sarovar Dam.

    It may be recalled that earlier Dr. C.P. Thakur had already offered the Narmada Bachao leader, Ms. Medha Patkar to discuss with Narmada problems without any conditions attached.

    The Investors Protection Cell of the Department of Company Affairs settled 190 complaints of investors during January 2000.

    The Budgetary support to the Ministry of Information and Broadcasting has been increased to Rs. 1384 crores for the year 2000-2001 from Rs. 1123.08 crores for the current year. The increase is mainly due to the raise in the budgetary support to Doordarshan and All India Radio.

    The Budget of Prasar Bharati has been de-linked from this year from the Ministry of Information and Broadcasting and the Budgetary support to Prasar Bharati would be in the form of grant-in-aid and loan, with a view to provide a greater flexibility in their operations. In the Budget presented by the Finance Minister in the Lok Sabha yesterday, the total Budgetary support to Prasar Bharati has been fixed at Rs. 1133.30 crores. Out of this Rs. 963 crore would be grant-in-aid and Rs. 170.30 crore in the form of loan. Prasar Bharati has been advised to put all necessary arrangements pertaining to system of accounting and fund management in place, so as to operate their own receipts and grants-in-aid received from the Government with effect from 1^st April, 2000. Prasar Bharati has initiated necessary preparatory action in this regard.

    So far, even after establishment of Prasar Bharati, both AIR and DD continue to operate the Government Budget for purposes of all their expenditures and receipts. In other words, they continued to operate within the constraints of Government rules and regulations.

    The Centre introduced several schemes to boost production of cash crops like cotton, sugarcane, tobacco and jute and mesta in the country during the Ninth Plan period. This was stated by the Minister of State for Agriculture Shri S.B.P.B.K Satyanarayan Rao in a written reply in the Lok Sabha today. These included Intensive Cotton Development Programme (ICDP-Cotton), Sustainable Development of sugarcane Based Cropping system (SUBACS) and Special Jute Development Programme (SJDP). Under these schemes assistance is being provided for the transfer of production technologies through field demonstration and farmer’s training as well as for the use of critical inputs such as seed, implements, contigencies, assistance for water saving devices like drip in cotton and sugarcane schemes, moist-heat-seed treatment unit in sugarcane and construction of retting tanks in jute schemes.

    The production figures for these cash crops in major States during 1998-99 are as follows:

    Union Minister of State for Agriculture Shri Hukam Dev Narain Yadav has emphasized the need to integrate indigenous knowledge with modern advancements in agriculture while setting the agricultural research priorities. This was essential to achieve balanced and sustainable agricultural growth in the country. He was addressing the agricultural scientists on the occasion of Inter-University Elocution Contest on the topic "Contribution of India to World Agriculture" here today.

    The participants from various agricultural universities, while highlighting the leading positions, India has achieved in various agricultural commodities, were of the view that we should take advantage of the uncommon opportunities available with India in the era of globalization. They emphasized on the potential of our vast bio-diversity and non-conventional energy resources in this regard. They lauded the role of Indian scientists towards developing human resource in various developing countries.

    Shri Ayan Bhattacharya from IARI and Shri Amit Sharma from JNKVV, Jabalpur won the 1^st & 2^nd prize in the Elocution contest.

'10'

    The Ministry of Tribal Affairs has been allotted Rs. 812.57 crore in the Union budget for 2000-2001. This is 128.13 crore more than the amount allotted during 1999-2000. The central assistance for State plans has also gone up by Rs. 100 crore.

'38'

    The Union budget for 2000-2001 has allotted Rs. 681.92 crore for the Ministry of Water Resources. This is Rs. 110.18 crore more when compared with last year’s allotment. Of this, a sum of Rs. 188.77 crore has been allotted for flood control works and other schemes, which is Rs. 78 crore more than the amount that was allotted last year.

    The Ministry of Information and Broadcasting today finalized the selection of companies to operate FM Broadcasting Stations at Agra, Ahmedabad, Allahabad and Aurangabad after an open auction. The New Media Broadcasting Private Limited has bagged the licences for Agra (Rs. 80 lakhs), Allahabad (Rs. 56 lakhs) and Aurangabad (Rs. 66 lakhs). For Ahmedabad the licences are New Media Broadcasting and Bennett Coleman & Company and the lincence fee would be Rs. 255 lakhs, annually.

    There were eight companies in the race for Ahmedabad and four each for Agra, Allahabad and Aurangabad