On the specific request of the State Government of Orissa, a ‘Food for Work’ programme was started in the 14 Cyclone affected districts of Orissa, in the first instance, to the tune of Rs.105 crore. The Centre agreed to contribute Rs.78.74 crore against the State’s contribution of Rs.26.26 crore. The first instalment of Central assistance amounting to Rs.39.37 crore was released during March, 2000. In addition, Department of Public Distribution has agreed to provide food grains in the form of rice at the BPL price through Food Corporation of India (FCI). The subsidy on rice provided to the State Government of Orissa under this programme is to be met by Department of Public Distribution.

    The State Government of Orissa has informed that against the allotment of 31500 M.T. of rice to the cyclone affected districts, 135.76 M.T. of rice has been distributed at the rate of Rs.2 a kg. Per manday partly in lieu of wages. The State Government has taken up 10398 projects and the total expenditure incurred upto 8.5.2000 comes to Rs.226.76 lakh.

    This information was given by the Minister of Rural Development, Shri Sundarlal Patwa in a written reply to a question by Shri Ananta Sethi in Rajya Sabha today.

    In order to focus on high priority schemes which would deal with the basic problems of the undivided districts of Koraput, Bolangir, Kalahandi, the Government of Orissa has prepared the Revised Long Term Action Plan (1998-99 to 2006-07) which comprises Central Plan and Centrally Sponsored Schemes in various sectors, namely, agriculture, horticulture, watershed development, afforestation, irrigation, health, drinking water, emergency feeding, welfare of SCs/STs and rural connectivity.

    In addition to the normal flow of funds under Central Plan and Centrally Sponsored Schemes, various steps have been taken to provide some additional funding to these districts. In 1998-99 and 1999-2000, Additional Central Assistance of Rs.37 crore was provided each year in the Annual Plan of Orissa for these districts. In 1998-99, additional amount of Rs.7 crore was allocated for the Emergency Feeding Programme and Rs.2 crore for Mobile Health Units under Basic Minimum Services. In 1999-2000, an additional amount of Rs.8.60 crore was allocated for the Emergency Feeding Programme, Rs.2 crore for Mobile Health Units and Rs.10 crore for Drinking Water Supply under Basic Minimum Services.

    This information was given by the Minister of Rural Development, Shri Sundarlal Patwa in a written reply to the question of Shri Ananta Sethi in Rajya Sabha today.

    The Minister of Rural Development and Agriculture, Shri Sundarlal Patwa would visit the drought affected areas of Rajasthan. During his two-day visit beginning tomorrow, Shri Patwa would visit Sirohi, Sanchor, Pachmedha, Barmer and Jodhpur. He would be meeting the State Government officials in Jaipur. Before returning to Delhi the Minister would also visit the Watershed Development site of Tarun Bharat Sewa Sangh near Alwar.

    The Council for Advancement of People’s Action and Rural Technology (CAPART) has been working efficiently since its inception in 1986 to help the rural poor and disadvantaged sections of the society like SC/ST, women, disabled persons, bonded labour, child labour, etc. as an important funding agency for the voluntary organizations engaged in upliftment of the rural poor. Till date, CAPART, has sanctioned projects worth Rs.524 crores, released Rs.397 crores involving more than 18,700 projects and 8,000 voluntary organizations.

    The Council has taken a number of steps to improve its efficiency. The process of decentralization in decision making process was initiated with the result that 9 Regional Centres have been opened throughout the country where projects below Rs.10 lakhs can be sanctioned. The process of sanctioning of projects has been transparent by constituting Regional Committees and National Standing Committees. Funds are sanctioned on the basis of the advice of the member who are expert in their field and know about the voluntary sector. Emphasis is being given on HRD development of CAPART’s own employees apart from the voluntary sector. Innovative schemes are encouraged under the revised guidelines for public co-operation sector and instead of sanctioning stereo-type scheme of the Ministry of Rural Development, now innovative and integrated projects can be taken up under CAPART’s own guidelines. Workshops are being organized at the regional level to encourage smaller NGOs to take up projects with CAPART.

    This information was given by the Minister of Rural Development, Shri Sundarlal Patwa in a written reply to a question of Shri K.M. Khan in Rajya Sabha today.

    As per the information furnished up to 1^st March, 2000 by the State Governments, out of 1430543 rural habitations in the country, 26481 habitations are Not Covered, 211685 habitations are Partially Covered and 1192377 habitations are Fully Covered with access to drinking water facilities. Out of the urban population of 23.93 crore as estimated for 31^st March, 1997, approximately 21.57 crore have been provided with access to drinking water facilities till 31^st March, 1997.

    Drinking Water Supply is a State subject. The Sate Governments implement the programme under the State Sector Minimum Needs Programme (MNP). The Central Government only supplements the efforts of the States by providing funds under Accelerated Rural Water Supply Programme (ARWSP). Powers have been delegated to the States to plan, sanction and implement their individual rural water supply schemes.

    The National Agenda for Governance of the Government envisages provision of drinking water to all rural habitations in the country in five years time. In accordance with this avowed objective, all the States were requested to prepare action plans to provide drinking water to all rural habitations in five years time. Action plans in respect of all the States/UTs have been received, except A&N Islands. This objective could be achieved, subject to availability of funds. Similarly, 100% urban population is targeted to be provided with safe drinking water facilities in the Ninth Plan period, subject to availability of funds.

    This information was given by the Minister of State of Rural Development, Shri A. Raja in a written reply to a question of Shri Santosh Bagrodia in Rajya Sabha today.

'11'

    The Prasar Bharati is acquiring additional INSAT satellite transponders to increase and strengthen its coverage in the North Eastern States. District-wise location-specific information is being compiled by inviting feedback from each district in the region in order to identify the shadow areas where signals of All India Radio and Doordarshan are either weak or do not reach at all. Corrective steps are proposed to bridge the gaps through special time bound plan.

    Information regarding the status of proposals submitted by the State Governments for getting approval of various projects seeking diversion of forest land under the Forest (Conservation) Act, 1980 will be displayed on the website (www.envfor.nic.in) of the Ministry of Environment and Forests. Copies of the relevant correspondence with the State Governments about the pending proposals will also be forwarded to the user agencies. This has been done to facilitate the user agencies in getting the requisite information and clarifications as it has been observed that user agencies have to waste considerable time and effort in getting information regarding the status of such proposals submitted by the State Governments.

    For any further clarification, the following officer can be contacted on every Monday and Friday between 3 p.m. and 5 p.m.:-

Shri A.N. PRASAD

Deputy Inspector General of Forests

Room No. 519, Paryavaran Bhawan

CGO Complex, Lodi Road, New Delhi.

(Tel.Fax – 011-4361773)

'24'

    The Department of Telecom Services (DTS) has planned major activities for the year 2000-2001. These are :

    A remote medical diagnostic system for the rural population has been evolved by the Department of Science and Technology and put on fast track implementation under the Jai Vigyan Mission. The Model project involves the setting up of a core centre at Vijayawada, five regional diagnostic centres in the Districts around Vijayawada and linking these to 100 general Practitioners. A population of about 10 lakhs would be covered under the project.

    The Expert Committee appointed by Government of India to recommend changes in the legal framework relating to the banking system submitted its final report to the Union Finance Minister, Shri Yashwant Sinha, here today. The ten member Committee headed by former Solicitor General of India, Shri T.R. Andhyarujina was set up in February 1999 to formulate specific proposals to give effect to the suggestions made by the Narasimham Committee Report for making wide ranging changes in the legal framework concerning the banking system.

    The Committee has recommended amending the Recovery of Debts due to the Banks and Financial Institutions Act 1993 and Sick Industrial Companies Act, 1995. It has also recommended for amendment of Section 28 of the Indian Contracts Act 1872 and a new legislation for banks and financial institutions to take possession and sale of securities without the intervention of the court, in respect of both immovable property and moveable assets and on Securitisation.

'16'

    A delegation of the Coordination Committee of Cardamom Growers' Association from Tamil Nadu and Kerala led by Shri M. Vaiko, met the Union Commerce and Industry Minister, Shri Murasoli Maran, here today and presented a memorandum opposing the proposal to transfer the responsibilities of production, development and research in respect of Cardamom from the Spices Board under the Ministry of Commerce and Industry to the Ministry of Agriculture. The delegation also included Shri R. Kumaresan, Shri C. Rajagopal, Shri R.T. Ashok Kumar, Shri N. T. Zacharia, Shri N. Murugesan (Member, Spices Board from Tamil Nadu), Shri P.C. Mathews (Member, Spices Board from Kerala); and Shri R.T.G. Kumaran (Cardamom Planters from Tamil Nadu).

'16'

    Shri Murasoli Maran, Union Minister of Commerce and Industry, has assured all help to producers of tea, coffee and other plantation crops in tiding over the critical situation prevailing in the plantation sector in the southern states of Tamil Nadu, Kerala, Karnataka and Andhra Pradesh. Shri Maran gave this assurance to a delegation of Plantation Associations of Southern India, led by Shri Dhananjaya Kumar, Minister of State for Finance, at a meeting here this morning. The delegation included Members of Parliament from the affected States of Southern India -- S/Shri C.P. Radhakrishnan, Ramesh Chennithala, D.C. Srikantappa, P.C. Thomas, Master Mathan, J. Chitharanjan, C. Kuppuswami, Dr. C. Krishnan, and Smt. Jaya Prada. Trade union leaders representing the five major plantation labour unions of Southern India were also present at the meeting, besides senior officials of plantation associations including Shri E.K. Joseph, Vice President, UPASI; Shri E.B. Sethna, Chairman, Planters Association of Tamil Nadu; Shri D. Vinod Sivappa, Chairman, Karnataka Planters Association; and Shri N. Ramadurai, Secretary General, UPASI. Shri P.P. Prabhu, Commerce Secretary, also participated in the discussions.

LOK SABHA

    Financial assistance ranging from Rs. 25 lakh to Rs. 2 crore, depending upon the nature of the organization is available as grant/loan for setting up/expansion/modernization of food processing units, including fruit and vegetable processing units, being operated by the Department of Food Processing Industries during the 9^th Plan period. The quantum of grant/loan is limited to 50 per cent of the cost of capital equipment and technical civil works.

LOK SABHA

    The Government has initiated Plan Schemes for the Development/Improvement of the Poultry and Egg Processing Industries for both domestic and export market for assured quality and health standards and also effecting necessary technological improvement of processing units. Under the Scheme, financial assistance in the form of soft loan and grant is provided to both egg and poultry processing industries. An egg powder plant of M/s Western foods Ltd. has been registered with BIFR in August, 1999.

LOK SABHA

POLICY & PROGRAMME INITIATIVES TO INCREASE CROP AREA

    Keeping in view the need to cover additional areas under irrigation, the Government has taken/proposed to take various policy and programme initiatives. These include revision of National Water Policy (1987), Command Area Development Programme, preparation of National Perspectives for transfer of water from surplus basins to water deficit areas, promotion of water management practices, efficient and economic use of water for various purposes, emphasis on water conservation through various methods including use of latest technologies and peoples participation in management of water for diverse uses.

    Besides, the Ninth Five Year Plan has one of the strategies of irrigation development to complete all on-going projects, particularly those which were started during pre Fifth and fifth Plan period as a time-bound programme to yield benefits from the investments already made. In keeping with the strategy, the Accelerated Irrigation Benefits Programme (AIBP) launched by Government of India in 1996-97 for expeditious completion of selected on-going projects is continued in the Ninth Plan.

    The revised funding pattern under AIBP with effect from 1999-2000 is in the form of central Loan Assistance (CLA) on 2:1 (Centre:State) basis for general category states and in 3:1 ratio for special category states of North-Eastern Region, Hilly states of Jammu & Kashmir, Himachal Pradesh and Sikkim as well as for drought prone Kalahandi, Bolangir, Koraput (KBK) districts of Orissa. Minor irrigation schemes of special category states are also being given CLA on 3:1 (Centre:State) basis with effect from 1999-2000.

    Giving a written reply in Lok Sabha today Minister of State for Agriculture Shri S.B.P.B.K Satyanarayan Rao said that area under foodgrains, oilseeds and cotton during 1999-2000 is lower as compared to 1998-99. The area is reduced in foodgrains by 2196000 hectares, in oilseeds by 1510000 hectares and cotton by 619000 hectares. However sugarcane area is increased by 4076000 hectares.

    The Union Minister of Law, Justice and Company Affairs Shri Ram Jethmalani released formally two CD-ROMs, one about top 25,000 companies in the corporate sector and the other about 5.5 lakh functioning companies registered under the Companies Act to help create a healthy investment climate as part of emerging excellence in corporate governance in the country. The two CD-ROMs were released at a press conference addressed by Shri Jethmalani here this afternoon.

    Speaking on the occasion, Shri Jethmalani lauded the CD-ROM of over top 25,000 companies prepared by Centre for Monitoring Indian Economy (CMIE) in association with the Department of company Affairs, as a unique product hitherto untapped. This was a path breaking efforts of the Department which would go a long way in facilitating better business transaction based on transparent information. The Minister said investment decision by corporate sector would now be on a better information rather than on judgements alone. Financial institutes would be benefited immensely. Besides, this would help to control non-performing assets. This would also ensure a balanced growth of technology and information content. The Minister announced that the scope of this CD would be enlarged subsequently to cover all big businesses in order to introduce a healthy investment climate with attendant openness and transparency to meet the requirements of emerging globalisation of Indian economy. The CD would provide comprehensive information about assets, liabilities and financial liquidity of companies.

    The second CD prepared jointly by the Department of Company Affairs and the National Informatics Centre (NIC), which gives profiles of 5.5 lakh functional companies as on March 31, 2000 was also released by the Minister. This CD-ROM, which is second in the series, contains name, address, business, industrial activity, major groups and sub-groups of products and services, corporate summery, growth pattern, productwise geographical break-up and companies in a particular business. This would be very helpful for individual investors as well as financial institutes and corporate bodies in general.

    The Minister of State for Law , Justice and Company Affairs Shri O. Rajagopal, present on the occasion, released the first ever Fortnightly Newsletter of Department of Company Affairs titled "CORPORATE VANI". Speaking on the occasion, Shri Rajagopal welcomed the launch of the Departmental Newsletter as a much needed instrument of information dissemination from the Department. The Union Minister of Law, Justice and Company Affairs Shri Ram Jethmalani, in his message to the Fortnightly Newsletter, hoped that the launch of the "Corporate Vani" would ensure quick and regular flow of information intended towards an open Government. He said that its frequency as a fortnightly would make the newsletter a valuable informer within Government circles, among professionals, academics and the investing institutes including the public at large.

    Talking to the media persons, Shri Jethmalani announced that the three premier Corporate Institutes of Chartered Accountants of India, Cost and Works Accountants of India and Company Secretaries of India would function in close tandem with each other in order to provide cohesive and integrated coordinated approach to the evolving excellence in Corporate Governance. He informed the Media persons that the Government has decided that all these three institutes would sign a Memorandum of Understanding (MoU) at a later date to be worked out by them. The Minister further said that the objective was to harmonise the functioning of these three institutes without overlapping with each other.

    The Disinvestment Commission in its XIth report has recommended disinvestment of 100 per cent of Government of India equity in Sponge Iron India Ltd. (SIIL) by writing off Government of India’s loans and accumulated interest thereon. The Commission has classified SIIL as a non-core PSU.

    At present SIIL is operating two kilns of 30,000 tonnes per annum each for production of sponge iron. The Company is also operating power plant based on recovery of heat from the waste gases of the kiln. During 1999-2000 the company achieved 82.39 per cent of the production target. Since 1995-96, the company has been achieving more than 80 per cent of the production target except in the year 1998-99.

    SIIL has been making losses continuously since 1993-94 except in 1995-96. During 1997-98 it incurred a loss of Rs.3.36 crore. The losses almost trippled to Rs.9.64 crore in 1988-89. According to a provisional estimate the company made a loss of Rs.10.60 crore during 1999-2000.

    This information was given by the Minister of State for Steel Shri Dilip Ray in a written reply in the Lok Sabha today.

    SAIL has engaged the Institute of Rural Management, (IRM) Anand to undertake a study to assess the current trend of demand for steel material in the rural market segment in the States of Gujarat, Maharashtra and Rajasthan. This is a part of SAIL’s strategy to tap the potential rural market. IRM is also required to suggest, inter alia, specific marketing actions and to assess the need to promote the concept of service centres. The Institute is yet to submit its report on the study.

    This information was given by the Minister of State for Steel Shri Dilip Ray in a written reply in the Lok Sabha today.

    The National Institute of Secondary Steel Technology (NISST) organised a workshop jointly by the Institute’s Nagpur Centre and local Small Industries Service Institute in March, 2000 at Nagpur. The topic was "Energy Conservation in fuel and electricity will result in cost reduction in re-rolling mill".

    The workshop’s main recommendations were:

• Better design of re-heating furnace, match the capacity of furnace with re-rolling mill capacity.
• Optimise the coal/oil consumption by improving operating practices.
• Reduce burning losses by controlling excess air.
• Selection of proper refractories and insulating material to reduce the losses.
• Use of better roll-pass design to reduce power consumption.
• Reduce energy losses in transmission system

    The suggestions made by NISST are for the industries to implement at their own cost and at their own initiative.

    This information was given by the Minister of State for Steel Shri Dilip Ray in a written reply in the Lok Sabha today.

'16'

    India and the Lain American Countries (LAC) have reiterated their resolve to enhance trade and investment ties between the two regions in various areas including information technology, chemicals, pharmaceuticals, engineering products, textile, transport and health care equipment. During a series of discussions, Shri Omar Abdullah, Minister of State for Commerce and Industry, held with the leaders and officials of LAC on the occasion of the Mercosur Economic Summit 2000 at Rio de Janeiro, Brazil, the leaders of the countries of this region also expressed their keenness to have an institutional mechanism of trade facilitation and a continuing dialogue on issues relating to WTO. While addressing the Plenary Session of the Summit, Shri Abdullah said that the Indian government and the private sector have drawn up focussed programmes for interaction with the Latin America and expressed hope that the government, industry and trade organisations of the LAC would also reciprocate in the same measure.

‘21’

    The National Commission on Labour has invited views from all concerned with labour issues. The Commission has in this connection issued an exhaustive questionnaire to elicit information on labour matters concerning Recruitment, Conditions of Work, Trade Unions, Employers’ Organisations, Industrial Relations, Wages, Incentive Schemes and Productivity, Social Security, Labour Legislation, Economic Reforms and Social Safety Nets. It has also issued a detailed questionnaire on the unorganized labour matters like recruitment, conditions of work, payment of wages, migration of labour, impact of planning and agrarian reforms on this sector etc. The Commission has in a press notification said that it would welcome views from individual experts on labour matters, industries and worker’s organisation and government and non-government organisations concerned with labour matters. The questionnaire can be downloaded from the website labour.nic.in. The copies of the questionnaire can also be sought directly from the Commissions office at NATRSS Building, 30-31, Institutional Area, Opposite ‘D’ Block, Janakpuri, New Delhi-110058. (Phone nos. 56127902/ 5617911/ 5617911/5617916 and Fax Nos. 5610878). The Commission will entertain requests for sending questionnaires upto 19^th May, 2000.

    The National Commission on Labour was constituted on 15^th October, 1999 under the chairmanship of the former Labour Minister, Shri Ravindra Varma. The Commission has been asked to suggest (a) rationalization of existing laws relating to labour in the organized sector; and (b) an "umbrella" legislation for ensuring a minimum level of protection to the workers in the un-organised sector.

‘21’

    A High-Level Committee of Ministers is looking into the functioning of the Bureau of Industrial and Financial Reconstruction, BIFR, for making suggestions to make it more effective. This was stated by the Labour Minister Dr. Satyanarayan Jatiya during Question Hour in the Lok Sabha today. Replying to supplementaries, Dr. Jatiya said that besides him the Ministers of Finance, Heavy Industries, Mines and Commerce are in the committee of Group of Ministers. He said that unless the existing legislation is amended, the BIFR could not be replaced by a new mechanism. The Labour Minister said that while discussing the issue of industrial sickness at the 36^th session of the Indian Labour Conference in April 2000. Some members were of the view that the BIFR in its present form is not effective in handling the problems of industrial sickness. He said the ILC among other things recommended setting up of a separate restructuring fund for PSUs and closer participation of workers in the industry.

‘21’

    The Government today informed the Lok Sabha that there has been a positive employment growth. The Labour Minister Dr. Satyanarayan Jatiya said in a written reply that the average annual growth rate of employed persons as per usual Principal and Subsidiary status (UPSS) during 1987-88 and 1993-94 is 2.43 per cent. He said that according to latest comprehensive survey on Employment and unemployment conducted by National Sample Survey Organisation, in 1993-94, the un-employment rate was 1.90 per cent. A similar survey during 1987-88 showed the unemployment rate as 2.62 per cent. Dr. Jatiya said that no specific study has been conducted so far to find that the effect of computarisation in generating unemployment.

    There is scope for increasing the share of fabrics in our overall textile exports. Various Textile Export Promotion Councils are already participating in the Heimtextil fair at Frankfurt as well as other International Trade Fairs.

‘19’

    A Weaver’s Service Centre at Cannanore for Kerala State provides technology upgradation services alongwith other services to the handloom weavers.

‘19’

    An Expert Committee was Constituted under the Chairmanship of Shri S.R. Sathyam to, inter alia, review the impact of the existing Textile Policy and suggest policy measures for the industry to focus on changes resulting from over all trade policy reforms. The Committee drew up its report after wide consultation with institutions and organisations representing the various sectors of the industry, including State Governments. The Committee has submitted its report. The recommendations of the Committee mostly focus on measures to secure progressive increase in production and exportable surplus focusing on HRD and protecting appropriately the interest of workers, removal of technological obsolescence, strengthen the competitive framework of all segments of the textile industry, removal of avoidable regulations and facilitation for orderly transition of the industry to that of a market oriented forward looking industry. The New Textile Policy, that takes the Expert Committee Report into account, is likely to be finalised shortly.

‘19’

    There are 1565 cotton/man-made fibre spinning mills (Non-SSI) in the country as per details given below as on 31.3.2000:

    During the last three years one cotton/man-made fibre textile spinning mill (Non-SSI) under cooperative sector, namely, Gangapur Weavers Cooperative Spinning Mill, Sundergarh, Orissa has been privatised with the new name M/s Ashoka Synthetics Limited.

    The role of the Central Government for the development of the Textile Industry is that of a facilitator and it does not set up the textile mills on its own.

    This information was given by the Minister of Textiles, Shri Gingee N. Ramachandran, in a written reply to Prof. M.M. Agarwal in Rajya Sabha here today.

    The statement below shows the number of Textile Mills functioning at present in the public, cooperative and private sectors in NER. The Government does not have any plan to set up Textile Mills in the country, including NER, The Government acts as a facilitator for the development of the textile industry.

‘19’

    A Memorandum of Understanding (MoU) was signed between India and USA in 1994. As per clause 4 and 5(b) of the MoU, India is to notify the binding at reduced levels for certain textile products indicated in the MoU. These textile products include fibres, yarns, industrial fabrics and home furnishings, besides others.

‘19’

    The Government has discontinued the Market Development Assistance (MDA) Scheme in the handloom sector w.e.f. 1.4.2000. However, it is proposed to provide the assistance in a different form for which the details have not been finalised.

    The Govt. has signed a Memorandum of Understanding (MoU) with Hindustan Paper Corporation Ltd., a Public Sector Undertaking functioning under the administrative control of the Ministry of Heavy Industry & Public Enterprises. The MoU signed recently by Shri T.S. Vijayraghwan, Secretary, Ministry of Heavy Industry & Public Enterprises with Dr. A.R.K. Rao, CMD Hindustan Paper Corporation Ltd. is aimed at optimising the utilisation of existing infrastructure to ensure maximum internal resources generation for funding renovation and growth and thereby reduce dependence on budgetary support from the Government.

    The mission as outlined in the MoU for HPCL is " to be a major contributor to the cultural segment in Paper Industry of the country in terms of production, quality/standard, customer services, technology upgradation and R & D, being the largest manufacturer of this variety of paper in India. Other objectives of the MoU include developing Professional Management Culture consistent with the requirements of the Industry that would attract, develop and retain skills and talents at all levels, and would be conducive to maintain harmonious Industrial Relations.

    To Preserve and improve upon the ecological balance at the locations of the company’s operations.

    To explore and implement technological upgradation of the existing equipment for getting the maximum benefits in terms of volume of production, improved quality and productivity and thereby overall cost reduction and energy conservation.

    To enlarge market channels and to ensure customers’ satisfaction.

    To augment utilisation of unconventional raw materials to reduce dependence on forest resources.

    To provide adequate thrust on product diversification for manufacturing value added papers like computer stationery, copier, S.S. Maplitho etc. so as to ensure higher profitability and obtain adequate share both in domestic and international market.

'25'

    Government is working out a comprehensive LNG (Liquefied Natural Gas) transportation policy. Union Minister of Surface Transport, Shri Rajnath Singh told Members of the Consultative Committee of Parliament attached to his Ministry here today that LNG, the future fuel of the country which was proposed to be imported in large quantities especially in power sector, offered substantial potential for Indian shipping to diversify and enter new areas of profit. The Indian shipping lines must not be excluded in LNG transportation, he said adding that Indian shipping majors, who do not have much experience in LNG transportation at present, be encouraged to acquire competence in handling the LNG transportation.

    The Minister outlined several policy initiatives underway to prop up Indian shipping industry whose growth, he said, had not kept pace with increase in international trade. Expressing concern at the Indian shipping tonnage registering a negative growth during the last three years due to lack of fiscal incentives and poor international freight rates, he assured Members that his Ministry was actively pursuing recommendations of the National Shipping Policy Committee which have financial implications and where inter-ministerial consultations were required. 15 other recommendations of the Committee had already been implemented, he said.

    Welcoming the announcement of the Finance Minister in his budget speech earlier this year restoring Section 33 AC of the Income Tax Act for providing deduction from Income to the extent of entire profit to be utilised for acquisition of ships, he said

    Government was also mooting the proposal for introduction of Tonnage Tax in place of Corporate Tax as in European countries. He said Government was also considering giving infrastructure status to shipping industry which contributes about Rs.3500 cores annually to the foreign exchange kitty.

    The Minister said that the status of Mini Ratna had been conferred on Shipping Corporation of India (SCI) would help address the problem that its tonnage had not kept pace with the trend in the international cargo market. It would enable SCI to acquire ships without much delay as acquisition decisions involving Rs.300 crores could be taken by SCI Board itself without referring to the Government. He said that for the year 2000-2001, the SCI had been given an outlay of Rs.567.01 crores for acquisition of as many as 14 new cargo ships.

    On maritime training, he informed the members that the Government had initiated action for the establishment of an Indian Maritime Society by forming a registered society placing the four Government run maritime institutes under one umbrella. For the development of domestic transport infrastructure, he said, steps were underway to finalise modalities for doing away with collection of light dues on home trading and sailing vessels as an incentive to support coastal shipping. He said all Major ports would accord priority berthing for coastal cargo vessels without levying priority berthing charges.

    On the Port Sector, the Minister said by the end of 9^th Five Year Plan, an estimated capacity of 424 million tonnes of cargo was envisaged; resulting an additional capacity of 159 million tonnes at an investment of Rs.16,000 crores. He said keeping in view the need for capacity creation and huge requirement of funds, it had been decided to involve private sector in the development of Major ports. He said Government had approved a scheme of joint-venture formations between a Major Port and Foreign Port, Major Port and Minor Port and a Major Port and Companies with a view to attract new technology, introduce better managerial practice, expedite implementation of schemes, foster strategic alliance with minor ports and creation of optimal port infrastructure of private sector in funding port development projects. A Bill seeking amendment to Major Ports Act had already been introduced in the Parliament, he said.

    Reaffirming his Government’s commitment to step up these efforts in that direction , the Minister informed the Members that 13 projects for creation of 52.80 million tonnes of port capacity by private sector and captive users with an investment of Rs.3926 crores had already been approved which constituted one third of the capacity planned to be created in Major Ports during the 9^th Five Year Plan. Another 8 projects of 34.4 million tonnes capacity involving investment of Rs.3500 crores were under bidding process. Yet another 3 projects aggregating to 5 million tonnes capacity at an investment of Rs.450 cores had been identified for inviting bids.

    Underlining the need for modernization of equipment and flotilla, he said replacement of obsolete equipment was vital to increasing the productivity of the Ports. He said with a view to speed up the process of acquisition of equipment, his Ministry had prepared a list of standard equipment and their manufacturers and short list of suppliers.

    On the demand of Dock and Port Workers regarding the periodicity of settlement of wages and payment of House Rent Allowance with retrospective effect from 1.1.98, the Minister said that the Bipartite Wage Negotiation Committee (BWNC) had held several meetings and a settlement was likely to be concluded shortly.

    Later, the Chairman, Shipping Corporation of India and the Director General of Shipping gave presentation on the working of their respective organizations.

    Members of Parliament expressed the view that the Government must encourage Indian shipping industry so that it could compete in the world market. Indian flag vessels handling Indian cargo must receive all support and must have a substantial share in relation to the ships carrying foreign flags. They said Indian shipping industry would be at the receiving end, if it were not properly developed as in the years to come the tonnage to be handled would increase tremendously. They said shipping is also the cheapest mode of transport. A Member urged the need for liberalizing financing for Indian Shipping. Members also stressed the need for increasing the number of vessels and for quality training to seafarers . A Member pointed to the difficulties of the seafarer from different regions in getting placement on ships. Another Member enquired about the status of the Sethusamudram project. Yet another Member wanted early steps to speed up creation of a maritime university.

    Hon’ble Minister of State for Surface Transport, Dr.Debendra Pradhan was present. The Secretary (Shipping), Shri R.Vasudevan and other senior officials of the Ministry and other offices were also present.

    The Members of Parliament who participated in the discussions were Dr.Ranjit Kumar Panja, S/Shri Nand Kumar Singh Chauhan, Ramsheth Thakur, V.Vetriselvan, K.Malaisamy, P.K.Samantaray, A.Brahmaniah, Sheeshram Singh Ravi, Jarbom Gamlin, Devendra Prasad Yadav and V.S.Sivakumar( all Lok Sabha) and Shri J.Chitharanjan (Rajya Sabha).

    Secretary ( Shipping) informed the Members that the earlier studies on Sethusamudram did not take in to account the environmental aspect and the rich maritime life besides other issues. He said that the study now proposed to be conducted should be available in a year or two. On the problems of seafarers, he said Government was considering making amendment to Merchant Shipping Act to take care of problems of seafares from different region in the matter of their placement.