A special meeting of the Union Cabinet presided over by the Prime Minister, Shri Atal Bihari Vajpayee was held this morning to condole the death of Choudhary Devi Lal, former Deputy Prime Minister. The Cabinet observed a two-minutes’ silence in the memory of the departed soul. The Cabinet passed the following resolution:

   " The Government deeply mourns the death of Choudhary Devi Lal, former Deputy Prime Minister, on Friday, the 6^th April, 2001, at New Delhi.

    The Union Cabinet records its deep appreciation of the services of Choudhary Devi Lal to the nation and offers its heart-felt condolences to the members of his family in their bereavement. "

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    The Prime Minister Shri Atal Bihari Vajpayee has expressed deep sorrow over the passing away of the former Deputy Prime Minister and serving Rajya Sabha Member, Choudhary Devi Lal, here this evening.

'17A'

MANOHAR JOSHI DIRECTS PSU’S TO PERFORM OR FACE CONSEQUENCES

    Shri Manohar Joshi, Minister of Heavy Industries and Public Enterprises has directed the PSU’s operating under the Ministry of Heavy Industries and Public Enterprises to improve the performance or be ready to face the consequences. During the performance review exercise of Maruti Udyog Ltd (MUL), Bharat Heavy Electrical Limited (BHEL) Hindustan Cables Limited (HCL), Andrew Yule & Co Ltd and HMT Ltd, the Heavy Industries Minister observed that the PSU’s should try to be among the best in the industry they are operating in. Dr.Vallabhbhai Kathiria, Minister of state for Heavy Industries and Public Enterprises, Shri Ravindra Gupta, Secretary, Heavy Industries and Public Enterprises and senior officials of the Ministry were also present in the performance review exercise.

    The review exercise was the first phase of such an interaction with the PSU chiefs operating under the Ministry of Heavy Industries and Public Enterprises and was spread over two days. While the CMD’s of HMT and HCL made presentations relating to their companies yesterday, the performance review of Maruti Udyog Limited, BHEL and Andrew Yule Co Ltd was taken up today. The Heavy Industries Minister also impressed upon the CMD’s on the urgency to draw up immediate plans for next six months for a definite improvement in operations and take all necessary steps to cut costs. These could include increasing focus on exports, new tie-ups, manpower rationalization and assembly line process improvements including better shop-floor management.

    Observing that there is no substitute for performance, Dr Vallabhbhai Kathiria, Minister of state for Heavy Industries and Public Enterprises also stressed on the need to cut down on unproductive areas of production and focus on improved turnover and profits.

    Stating that the PSU’s can no longer ask for protection while being inefficient in the consumer dominated markets, shri Ravinder Gupta said that PSU chiefs should also adopt modern production techniques, cut costs and NPA’s for maximizing performance.

    Shri Kashiram Rana, Minister of Textiles has convened a conference of State Textile Ministers/Secretaries on April 10,2001 in New Delhi. This is in continuation of his previous initiatives wherein he had convened separate meetings of Textile Ministers from Northern and North-eastern states earlier. The conference is being organized in view of the present challenges before the Textiles sector emanating due to the changing international business scenario. Shri V. Dhananjay Kumar, Minister of state for Textiles, Shri Anil Kumar, Secretary, Textiles besides Secretaries in charge of Textiles in their respective states will also be present in a day long conference.

    The Conference assumes importance in view of the fact that the textiles sector is facing a serious challenge due to the gradual accelerated phasing out of tariff barriers as a result of the setting up of the World Trade Organization (WTO). Further, the Agreement on Textiles and Clothing (ATC) will result in the culmination of the quota regime on 31^st Dec 2004 and as such the impact of the global trade regime will be severe due to an increased availability of foreign textiles at competitive rates. The removal of Quantitative Restrictions (QRs) on imports, together with the lowering of duties, has effectively shifted the deadline even closer.

    A major part of the conference is expected to be devoted to the reforms necessary at the State level to prepare the Industry for the post MFA challenges. Other major issues concerning State level reforms which are expected to draw the attention of the conference are: availability of power and tariffs, the issue of taxes, infrastructure support, creating a labour productive environment and liberalizing marketing regulations.

    The Textiles Ministers conference will also deliberate on how to take advantage of the opportunities arising out of WTO and changing Textiles scenario in the world.. The Agenda for strengthening the Industry will include investments for growth; rapid technological upgradation, and a strong thrust to exports. The conference therefore assumes crucial importance to take stock, and decide the action required to prepare the industry for global competition.

‘20’

   In a section of press it has been reported that the process for selection of dealers / distributors for Retail Outlet dealerships (Petrol Pumps), LPG distributorships and SKO-LDO dealerships (Kerosene dealers) has been stopped all over the country. It is clarified that the selection process all over the country is going on except in the States of Assam, Kerala, Tamil Nadu and West Bengal and the Union Territory of Pondichery only where it has been stayed on account of announcement of Elections to the Legislative Assemblies by the Election Commission on 31.3.2001 and enforcement of Model Code of Conduct.

‘20’

GOVERNMENT STAYS SELECTION OF DEALERS/DISTRIBUTORS IN THE FOUR STATES AND ONE UNION TERRITORY GOING TO ASSEMBLY POLLS

    The Ministry of Petroleum and Natural Gas, at present is undertaking selection of dealers / distributors for Retail Outlet dealerships (Petrol Pumps), LPG distributorships and SKO-LDO dealerships (Kerosene dealers) in order to meet the increased demand for petroleum products all over the country. The process of selection of dealers / distributors has been entrusted to 59 Dealer Selection Boards constituted in different States under the Chairmanship of retired judges.

    The Election Commission announced the Elections to the Legislative Assemblies for the States of Assam, Kerala, Tamil Nadu and West Bengal and the Union Territory of Pondichery on 31.3.2001. With the announcement of Elections, in these States and the Union Territory, the Model Code of Conduct for the political parties as well as the Government has come into force. The Model Code of Conduct, inter alia, prohibits activities which result in the grant of licenses, permits, contracts or award of benefits like dealerships of petroleum products, etc. till the Elections are declared over by the Election Commission of India.

    In view of the announcement of elections the Government have decided, in consultation with the Election Commission of India, that no advertisement inviting applications for dealerships should be made and no interviews should be held by the concerned Dealer Selection Boards in these States and Union Territory till the Elections are declared over by the Election Commission. Accordingly, the Ministry of Petroleum and Natural Gas has issued instructions to the oil companies to immediately stay the process of dealer selection in these States and Union Territory.

'8'

DR. JOSHI EXPRESSES DEEP REGRET OVER THE DEATH OF DEVI LAL

    The Minister for Human Resource Development, Dr. Murli Manohar Joshi has expressed deep grief over the passing away of former Deputy Prime Minister, Shri Devi Lal. In a condolence message he said Choudhary Devi Lal served the country in various capacities and his sad demise is a great loss to the nation. To me also it is a personal loss since I had known him for many years.

    Dr. Joshi also said that Choudhary Devi Lal was deeply committed to the welfare of the farmers and uplift of the downtrodden. His services will always be remembered and the void created by his death will be difficult to fill, the Minister said.

'8'

    India is to help Bhutan in setting up an higher Institute of Linguistic and Cultural Studies. This is to promote traditional learning, especially Buddhism, Bhutanese history and the study of Dzongkha and Sanskrit. Talks in this connection were held here last night between the two sides headed by the visiting Bhutanese Minister for Education and Health, Lyonpo Sangay Ngedup and the Minister for Human Resource Development Dr. Murli Manohar Joshi. The two leaders agreed that the study of Sanskrit language and of Buddhist scriptures in Sanskrit would further promote the educational and cultural ties between the two countries. The Bhutanese Minister also wanted India to develop a course for it in Astrological studies.

    The other areas in which Bhutan sought India’s help include development of a suitable package for IT education, medicinal plants and bio-technology, besides improvement of educational infrastructure. The Government of India’s scholarship programme for Bhutan is one of the largest. This has gone up from Rs. 1.5 crore to Rs. 2 crore in 2000-2001. The upgradation of Sherubtse College in Kanglung has been taken up by India at a cost of over Rs. 2.25 crore. This is the only degree college in Bhutan and it is affiliated to the Delhi University.

    The Bhutanese Minister thanked India for all the help and support and invited Dr. Joshi to visit Bhutan. Both the Ministers expressed satisfaction at mutual ties and agreed to expand it further.

'13'

GSLV –D1 LAUNCH RESCHEDULED FOR APRIL 18, 2001

    The first development launch of Geo-synchronous Satellite Launch Vehicle (GSLV) has been rescheduled for Wednesday, April 18, 2001 from SHAR Centre, Sriharikota. The window for the launch extends up to April 25, 2001.

    The first launch attempt of GSLV was aborted one second before the lift off on March 28 by the automatic Launch Processing System (ALS) after it was detected that one of the strap-on boosters did not develop the required thrust. As worked out for such contingencies, immediately after the aborted mission, the safety systems were brought into action to protect the launch vehicle that was also safely disarmed. Subsequently all the propellants were removed.

    Based on detailed analysis, it has been established that the reason for one of the strap- on boosters not developing the required thrust was due to a defective plumbing in the oxidiser flow line of the engine, which had escaped detection during testing. This resulted in reduced flow of oxidiser to the engine.

    On assessing video footage and other data, it was concluded that the fire spreading over one of the strap-on boosters was due to the burning of foam insulation pads and was incidental and did not cause any damage to the vehicle. It has been decided to provide additional flame protection to these insulation pads. The anomalous engine will be replaced by a stand by engine.

‘24’

‘LIMITED MOBILITY’ ISSUE REFERRED TO THE GROUP ON CONVERGENCE

    At a meeting presided over by the Prime Minister and attended by the Home Minister, Finance Minister and Communications Minister on 6^th April, 2001, it was decided to refer the matter of Wireless in Local Loop-based "Limited Mobility" service to the Group on Telecom and IT Convergence (GoT-IT), headed by the Finance Minister. While doing so, the Government recognises the advantages of "Limited Mobility" for Fixed Service Operators to achieve quick rollout of networks and cheaper service to customers. It has also been noted that the matter is before the Telecom Dispute Settlement and Appellate Tribunals (TDSAT).

    The Group will submit its recommendations on the following:

1. Whether the New Telecom Policy 1999 permits "Limited Mobility" service to be offered by Fixed Service providers.
2. If it is permitted under NTP 1999, how it can be introduced to be consistent with the principle of level playing field among different categories of operators with the objective of assured service at cheapest possible rates.
3. If it is not permitted under NTP 1999, how the policy can be suitably modified to facilitate "Limited Mobility" to ensure faster achievement of the targets of tele-density as well as rural and remote area telephony at cheaper and affordable rates.

    The Group will submit its recommendations before April 30, 2001. The Ministry of Communications will thereafter take suitable action.

    Meanwhile, the Government strongly repudiates the wild and baseless allegations being made in certain quarters against the Ministry of Communications and the PMO with regard to the "Limited Mobility" issue. Similar reckless allegations, which did not stand any serious scrutiny, had been made when the Government unveiled the New Telecom Policy 1999.

    The Ministry of Communications adopted a proper and transparent process, based on the recommendations of the TRAI, in arriving at its decision on permitting "Limited Mobility" service to Fixed Service Operators. It did so guided primarily by WiLL’s proven advantage in facilitating quick roll-out of networks in congested urban regions as well as in remote areas, which would ultimately help in achieving the ambitious teledensity targets set in NTP 1999. Shri Ram Vilas Paswan, the Minister of Communications, has consistently espoused the need to accelerate rural telephony. It is indeed, the failure of the private telecom operators to achieve their rural telephony obligations that made the Ministry look at innovative use of convergence technologies such as WiLL with "Limited Mobility".

    NTP 1999 has visualized that the convergence phenomenon now makes it possible for operators to use their facilities to deliver some services reserved for other operators. However, the Parliamentary Standing Committee on Information Technology, while endorsing the Ministry’s commitment to promote cheaper telecom services and to increase teledensity, has opined that a more in-depth study of the matter was needed to address the concerns of level-playing field.

    The Government reiterates its resolve to carry forward the Information and Communication Revolution and to reach its fruits to all our citizens, especially in rural and underdeveloped regions. The review by the Group on Convergence will further concretize the Ministry’s various initiatives to realize this vision.