The Government (Department of Company Affairs) has allowed conversion of 192 Non-Banking Financial Companies (NBFCs) in the Nidhis (Mutual Benefits) Companies under Section 620A of the Companies Act after their clearance from the Reserve Bank of India. Before declaration as Nidhis, these companies were NBFCs and have to comply with the directions of the Reserve Bank of India.

    Most of these companies have violated the directions of the Reserve Bank of India in respect of acceptance of deposits and liquidity ratio. The Reserve Bank of India is conducting inspection of all these companies individually to find out the eligibility of these companies for Nidhis status. On receipt of Reserve Bank of India’s report in respect of each NBFC, the applications of these companies are processed by the Department of Company Affairs.

    The Department of Company Affairs issued modified guidelines on November 1, 1999 empowering the Government to appoint Special Officer to monitor the affairs of a company in case of default in making refund of deposits to more than 10 depositors, to conduct special audit by the auditors appointed by the Government, to ensure that a Nidhi Company maintains a contingent fund by transferring half percent of each deposit to such fund and to keep the entire amount in the contingent in any nationalised bank. It also prohibits a person to hold the post of Director in a Nidhi for a company for a period of more than 10 years provided that such Director shall be eligible for reappointment after a period of two years of ceasing to hold the post of Director.

    Out of 192 companies registered as Nidhi Companies, two companies working in Uttar Pradesh were denotified in 1999. Of the remaining, 136 Nidhis are in Tamil Nadu followed by 17 in Uttar Pradesh, 14 in Andhra Pradesh, 10 in Karnataka, 9 in Kerala, 1 in Maharashtra, 3 in Delhi and 2 in Pondicherry.

    As on date, 89 applications are pending for want of report from the Reserve Bank of India and auditor’s certificate. Of the pending applications, 78 are from Tamil Nadu, 4 from Andhra Pradesh, 2 from Kerala, 2 from Uttar Pradesh, one each from Karnataka, Punjab and Pondicherry.

    The budget 2000-01 contains several measures like increased allocation for rural housing, construction, roads, infrastructure, urban sanitation and water supply schemes which are expected to boost the demand for steel in the country. The provision for 25 lakh dwelling units will also go a long way in increasing the consumption of steel . Increased outlay for power sector and national highway programme are also likely to hike demand for steel. Besides, the Development Commissioner for Iron & Steel (DCI&S) has launched a National campaign for increasing the demand for steel, especially in non-traditional sectors such as rural and agro based industrial sector.

    There are about 1748 species of medicinal plants found in the Himalayas. According to the Council for Scientific and Industrial Research (CSIR) in the last three years, some plants of the Himalayan Region viz., Hypericum perforatum, for its activity against HIV, as a hepatoprotectant and Bacopa monnierae (Brahmi) as a memory enhances, have received world wide attention.

    Leader of Indian Goodwill Haj Delegation and Minister of State for Food Processing Industries, Shri Syed Shahnawaz Hussain met Saudi King Fahd and conveyed him Prime Minister Shri A.B Vajpayee’s good wishes and desire to see further consolidation of the Indo-Saudi relation in all spheres. Mr. Hussain also thanked the King on behalf of the Prime Minister for arrangements being made by the Saudi Kingdom for smooth conduct of the Haj pilgrimage.

    This year’s Haj pilgrimage was performed by over 110,000 Indians along with two million pilgrims from all over the world.

    Mr. Shahnawaz Hussain who was accompanied by Indian Ambassador, Talmiz Ahmed met the Saudi Ruler at a reception hosted by him in honour of foreign dignitaries at Mina Palace. The reception was attended by King Abdullah of Jordan, President Mammon Gayoom of Maldives, Gambian President, Yahya Jammeh and Ministers of various Islamic countries.

    The King Fahd said in his message that his Government attaches top priority to the Haj service.

    The Indian Minister also met leaders of various countries during the reception. There was a general desire among leaders of Srilanka, Iran and other nations to work for enhancing relations with India. He also met Haj Affairs Minister, Ayad Madni and discussed Haj arrangements with him.

    Meanwhile all Indian pilgrims returned safely here after performing Haj rituals in Mina, including throwing of stone at three jamrats (pillars) that symbolise the stoning of devil.

    The following is the text of the statement of Prime Minister, Shri Atal Bihari Vajpayee after signing of agreements with the President of United States of America, Mr. William J. Clinton, here today :

    "I am delighted to welcome President Clinton to India. His visit provides us a unique opportunity for a historic transformation in our relations.

    We have just concluded a very productive meeting. President Clinton and I have had an in-depth exchange of views on many subjects. Our two delegations have also held extensive discussions.

    Our discussions have been warm, friendly and candid, reflecting our common desire to build a new relationship of mutual trust and respect.

    Our objective is to forge a durable, politically constructive and economically productive partnership between the world’s two largest democracies.

    I think with President Clinton’s visit, and our meeting today, we have laid a firm foundation for the future.

    President Clinton and I have just signed a "Vision Statement". The statement outlines the contours and defines the agenda of our partnership in the 21^st century.

    We both agree that our commitment to the principles and practice of democracy constitutes the bedrock of our relations and for our cooperative efforts internationally for peace, prosperity and democratic freedom.

    We have also concluded agreements and understandings on the establishment of very wide ranging Dialogue Architecture. Closer contacts between our business and scientific communities would be encouraged.

    Both countries will endeavour to enhance trade and investment, cooperate in energy and environment and to draw upon their vast reservoir of talent, especially in the areas of information technology and frontier sciences, for the betterment of the lives of their peoples.

    We share a common concern at the growing threat of terrorist violence and its links with religious extremism and illegal trade in narcotics.

    Both of us expressed our firm opposition to the use of any form of violence, whether as an instrument of terror against democratic societies or as a means of realising territorial ambitions. Nothing justifies the use of such methods against innocent people. We expressed our determination to intensify our cooperation in this area.

    President Clinton and I had a frank discussion on the issues of disarmament and non-proliferation of weapons of mass destruction. The dialogue, which is in progress between our two countries on these issues, has enhanced mutual understanding of our respective concerns.

    I have explained to President Clinton the reasons that compel us to maintain a minimum nuclear deterrent. I have reiterated our firm commitments not to conduct further nuclear explosive tests, not to engage in a nuclear arms race and not to be the first to use nuclear weapons against any country.

    We have resolved to continue our dialogue and to work together in cooperation with other countries to help bring about a peaceful and secure world completely free of the threat of all weapons of mass destruction.

    In our discussions on regional issues, I reiterated our policy of developing friendly and cooperative relations with all our neighbours in accordance with established principles of good-neighbourly relations, respect for each other’s sovereignty and territorial integrity and on the basis of agreements solemnly entered into.

    India remains committed to resolving its difference with its neighbours through peaceful bilateral dialogue and in an atmosphere free from the threat of force and violence. We agreed that problems between countries of the region should be resolved peacefully by the concerned countries themselves.

    As a means of implementing our agenda of partnership in the 21^st century, we have agreed to regular summit meetings. President Clinton has invited me to Washington. I am delighted to accept.

    The President will have the opportunity over the next few days to see the rich cultural, linguistic and religious diversity of our country, to experience the warmth and friendship of our people, to witness the delicate blend of tradition and modernity in our society and to feel the democratic pulse of our large nation.

    I wish the President and the members of his delegation a very pleasant stay in India.

    In the end, I would like to make some remarks on the tragic events in Jammu and Kashmir yesterday.

    The brutal massacre of 36 Sikhs in Jammu & Kashmir last night is further evidence of the ethnic cleansing that has been under way for a decade and is part of a pattern that we have experienced earlier, including during my visit to Lahore last year. The nation and the entire civilised community is outraged at this premeditated act of barbarism and joins us in condemning this act.

    The attempt at cloaking acts of terrorism in the guise of Jehad carries no conviction. We and the international community reject the notion that Jehad can be part of any civilised country's foreign policy.

    None should doubt the determination of the people of India to safeguard the secular unity of our society. Together we have defeated all such challenges in the past and we shall do so again. We have the means and will to eliminate this menace".

    The Union Minister of Law, Justice and Company Affairs Shri Ram Jethmalani has called upon the Delhi Bar to withdraw their month-long strikes in the interest of suffering litigant public. In a press statement here today, Shri Jethmalani announced the appointment of a Commission of Inquiry headed by Shri Justice S. Saghir Ahmed, a sitting judge of the Supreme Court of India, to investigate police lathicharge against the striking lawyers on February 24, 2000. The Minister said that the guilty would be punished. He also said that the Ministry of Home Affairs would issue a Notification to this effect. The Law Minister later said that Shri Justice Saghir Ahmed has just declined to preside over the Commission of Inquiry. Shri Jethmalani, however, said that he would persuade Justice Ahmed to take up the assignment as okayed by the Chief Justice of India. Following is the text of Law Minister’s press statement:

    "On the 25^th February leaders of the Bar Council of India and the Bar Council of Delhi met the Hon’ble Prime Minister in my presence. It was decided that the strike will be called off. On behalf of the Government both the demands made by the lawyers were met : (i) that the amendments to the Civil Procedure Code (C.P.C.) will be discussed with the Bar before being brought into effect ; and (ii) that a sitting Judge of the Supreme Court shall be persuaded to inquire into the violent incidents of 24^th of February. No demand was made at that time for transfer or suspension of any police officers. A statement which was in advance shown to the Bar leaders and approved by them was made by me in the Lok Sabha that very afternoon.

    "The Chief Justice of India and the Hon’ble Judges of the Supreme Court have expressed grave reservations about one of them presiding over such a Commission of Inquiry. It has required a lot of persuasion for the Hon’ble the Chief Justice of India to nominate Hon’ble Shri Justice S. Saghir Ahmed for this purpose. He has done this as a very special case and on the express condition that on the Commission being constituted the strike shall be withdrawn forthwith. You are free to inspect the original communication from Hon’ble the Chief Justice of India. The necessary notification is being issued by the Ministry of Home Affairs.

    "I have to appeal to you to end the strike and resume work. Any one found guilty of culpable violence will be appropriately dealt with. You are free to persuade the Commission to make such interim orders as you consider desirable. Voluntarily the Government has agreed to some transfers and suspensions. To insist on more suspensions and continuance of the strike is neither morally nor legally justified. Think of the suffering which is being caused to the litigant public.

    "During the course of the lawyers procession on 24^th of February it was obvious that the lawyers were infuriated not by the C.P.C. Amendments but the entry of foreign lawyers into India and continuing tests for renewal of enrollment certificate. It has now turned out that no such proposals were or are before the Government. The cry of the processionists that the Advocates Act was being amended has turned out to be an imaginary grievance. Must you not, therefore, do some serious introspection and consider whether this procession was at all necessary? Representatives of the Bar had already discussed C.P.C. amendments with me on the 4^th February. This does not appear to have been communicated to the processionists.

    "At your instance I have persuaded the Ministry of Home Affairs to accept even some of your new demands. In writing signed by all of you, you have expressed gratitude and confidence in me. I hope you will respect my advice.

    "Ignoring the most offensive action of the Supreme Court Bar Association, I will continue to serve the cause of justice, the litigant public and the legal profession."

    The following is the text of a statement from the President of India, Shri K R Narayanan:

    Shri Omar Abdullah, Minister of State for Commerce and Industry, has strongly condemned the brutal massacre of 35 member of the Sikh community in Kashmir yesterday. While sharing his grief with the families of the victims, Shri Abdullah has urged the Sikh community to face the situation with courage and has assured them that the government would take necessary steps to thwart the nefarious designs of the terrorists. Such incidents, which are an attack on the secular fabric of our country would be dealt with firmly by the government, the Minister said here today.

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    Mr. William Daley, Secretary in the US Department of Commerce, today said that the US was keen to have more trade with India and underlined that it was important to strengthen the forward momentum in the areas of trade and investment so as to maximise the mutual benefits of an open trade environment. Mr. Daley, who called on Shri Murasoli Maran, Union Minister of Commerce & Industry, here this evening, had a detailed exchange of views with Shri Maran on a range of issues covering both bilateral and multilateral trade. Shri Maran said that Indo-US trade relations had entered a new phase with the setting up of the Indo-US Commercial Dialogue and the Working Group on Indo-US Trade as part of the Vision Statement issued today. Emphasising that problems should not deter either side from striving for realising the full potential for bilateral trade cooperation, Mr. Daley remarked that "there will be problems only if there is more trade" and stressed that the ultimate objective should be to forge closer trade and commercial ties. Shri Omar Abdullah, Minister of State for Commerce and Industry; Shri P.P. Prabhu, Commerce Secretary; Shri Ajit Kumar, Secretary (IPP); Shri Anil Kumar, Secretary (Textiles) and other senior officials were present from the Indian side. Mr. Daley was accompanied by Ms. Susan G Esserman, Deputy USTR and others.