The Prime Minister chaired the first meeting of the Council Trade & Industry today.

    After each member of the Council had made his observations on thecrucial issues that need to be addressed in the short and the long term to enable India to progress on a high growth trajectory the following decisions were arrived at:

A)     Six Groups in the nature of Task Force Wilt be constituted from among the members of the Council to consider and rocommend implementable Action Plans.

B) The Groups will focus on the following six areas:-

    1) Food &Agro-industries Management Policy

    2) Infrastructure

    3) Capital Markets & Financial Sector Initiatives

    4) Knowledge based Industries

    5) Service Industries

    6) Administrative & Legal Simplificaions

C) The Groups will interact with the concerned Ministries/Departments who will provide all necessary assistance and data to them.

D) The interaction of the Groups with the concerned Ministries/Depatments will befacilitated by the PMO.

E) The Groups may co-opt officials from conncerned Ministries and external experts as necessary.

F) The Groups will finalise their Action Plans within 30 days for the consideration of their reports in the subsequent deliberations of the Council.
 
 

    The government is evolving an integrated package to strengthen the Iridian textile industry by addressing the competitive needs of the textile sector in a holistic manner. Addressing the Economic Editors' Conference on its concluding day here today, Shri Shyamal Ghosh, Secretary, Ministry of Textiles, said the 3-fold package would include (i) a detailed review of the 1985 Textile Policy by the Expert Group set up recently to recommend steps needed to enhance the competitiveness of the Indian textile industry to meet the challenges of the new millennium as the quota regime of MFA ends. It will also review the existing regulations as well as the need for a special financing mechanism for the development of the textile sector; (ii) Launching of the Cotton Technology Mission with an allocation of Rs.60 crores to double production and productivity of Indian cotton so as to capitalise on India" raw material advantage as the third largest producer of cotton in the world; and (iii) setting up of a Technology Upgradation Fund which would address the technology needs especially in the weaving and processing sectors. The scheme would be operated through the financial institutions and interest subsidy of 5% would be given. Shri Ghosh also explained that the earlier Rs.750 crores Textile Modernisation Fur.d was applicable mostly to the spinning sector and hence, the weaving and processing sectors of the Indian textile industry had remained outdated. Shri D.P.Bagchi, Additional Secretary & Financial Adviser, Ministry of Textiles, was also present at the interaction.

    In the text of his speech circulated at the Economic Editors Conference here today, the Textile Minister, Shri Kashiram Rana, indicated that in the wake of developments such as the adverse fall out of the South East Asian crisis and slow down in industrial growth, even traditionally strong. segments like cotton yarn were witnessing lower ofhake and rise in inventories, adding to the financial burden of industry. Shri Rana said that his Ministry had initiated steps in consultation with the financial institutions to provide adequate finance to the textile industry in relaxation of normal lending norms to tide over such difficulties. The Minister also referred to the government's strategy for improving productivity and production of cotton; bridging thequality gap in India's fabric production caused by poor weaving and processing facilities; reducing the high energy and capital cost of textile industry (which is almost double that of competing countries) by urging financial institutions to ease flow of credit to the textile industry and also urging indust~ to adopt energy conservation measures; development of new end uses for jute; and a series of measures to accelerate growth of textile exports. The industry has to adjust to the new economic order and global integration and at the same time, nurture the decentralised sectors particularly handlooms and handicrafts in the interest of employment generation and socio-economic uplift, Shri Rana said. He said the government was also evolving a package for rehabilitating as many mills of the National Textiles Corporation (NTC) as could be made economically viable and simultaneously, devise a more attractive VRS scheme so that the interests of the workers could be fully protected. Estimated expenditure on VRS could be in the region of Rs.2000 crores.

    Shri Ghosh said that despite the diff~culties facing exports in the current year, the garment sector, which contributes 40% of India's textile exports in value terms, is performing well and exports of garments during April-August 1998 have increased by 9.1% in dollar terms. In the month of August, 1998, garment exports have increased by 13.6%. India has initiated suitable response measures including a consultation call to the European Council as a prelude to initiation of dispute settlement process under the World Trade Organisation (WTO) on the issue of European Union's unwarranted anti- dumping actions on cotton fabrics and made-ups imported from India. India has also argued successfully in the WTO against safeguard measures introduced by Columbia on denim imports from India, as a result of which Columbia has now withdrawn its transitional safeguard measures against Indian denim. Changes introduced by the US in the ru'es of origin criterion are also being suitably raised in the appropriate forum. ~ Specific initiatives taken to increase textile exports include fixation and enhancement of credit rates under the Duty Entitlement Pass Book (DEPB) scheme, revision of duty drawback rates and the extension to the handloom sector etc. The Textile Ministry has also recommended bringing the customs duty on imports of knitwear making, garment making and trimming making machinery at par with the leather garment making ~chinery and lowering the zero-duty threshold for import of machinery items required by otber segments of the textile industry (i.e., in addition to garments) under the Export Promotion Capital Goods (EPCG) scheme. (Text of the Textile Minister's speech is available on the Internet through Homepage of Ministry of Textiles: http ://www. nic. in/texmin!.
 
 

    Indian Oil, the Navaratna Public Sector Oil Company has turned in a net profit of Rs. 1,706 crore during 1997-98 which was 21% more than the previous year. For the first time, a dividend of 50% we, declared at the Annual General Meeting of the Corporation at Mumbai on Wednesday. The net income has registered a compounded annual rate of growth of over 20% during the past five years. It has projects on hand of about Rs. 9,500 crore out of the investments of about As. 25,000 crore which have been identified during the 9th Plan. Most of the financing will be through internal resources, including for projects for diversification and vertical integration in exploration and production, petrochemicals, LNG and power.

    Disclosing this at a press conference here today, Shri M.A. Pathan, Chairman, Indian Oil said that at a time when investors were shying away fiom Asia, Indian Oil was adjudged as the "Best Sovereign/public sector borrower" in a poll conducted by Euroweek, an international capital market publication. The award reinforces Indian Oil's strong presence in the international financial markets.

    Indian Oil is likely to complete projects of about Rs. 5,500 crore during the current financial year. These include the six million tonnes Panipat rofinery, new coker at Digboi refinery and diesel hydro- desulphurisatin units at Haidia, Gujarat, Mathura, Panipat refineries for quality improvement of diesel The Haldia-Barauni crude oil pipeline wil1 bc commissioned by December l998, more than six months ahead of schedule. During the next fiscal, a branch line will be laid to Budge-Budge from the Haldia-Maurigrem-Rajbandh pipeline.

    During 1999-20Q0, branch lines will also be commissioned to Meerut and Saharanpur from the Mathura-Jalandhar pipeline. Another product pipeline will also be commissioned from Mathura to Tundla. The secondary processing facilities at Mathura refinery and expansion of Gujarat refinery by three million tonnes will be completed in the next financial year. During 1997-98, Rs. 3,134 crore were invested on various projects . These include a catalytic reforming unit a2 Digboi refinery, production of alpha olefins at Barauni and use of natural gas as fuel at Mathura refinery. Tho capacities of Salaya-Viramogam and Viramogam-Chaksu crude oil pipelines were expanded and the Chahsu-Panipat pipeline commissioned. The second single buoy mooring in the Gulf of Kutch was made fully operational. Five new terminals and depots and an equal number of LPG bottling plants were also added during the year.

    The Board of Directors has also approved setting up of a nine million tonnes per annum refinery at Nagapattinam in Southern India as a joint venture. It also propose to expand the Barauni refinery to six million tonnes per annum and the Panipat refinery by another three million tonnes per annum. A hydrotreater facility will be provided at Guwahati refinery and a fluidised catalytic cracking unit and catalytic iso-dewaxing unit at Haldia refinery.

    The Conmpany has opened office in Kuala Lampur, Kuwait and Dubai. The Kuala Lampur office will also "explore other markets of South-Eas tAsia. A few other markets are under active consideration. The excisting joint ventures include Indo-Mobil and Avi Oil India for automotive and Defence aviation lubricants respectively. Indian Oiltanking Limited is setting up storage terminals and jetties. Petronet India Limited in which Indian Oil. is a partner is setting up produce pipelines. Indian Oil is also a partner in Petronet LNG Limited which will set up LNG receiving and handling terminals. A joint venture company, IOC Petronas Ltd., is being incorporated to set up LPG import facilities at Haldia with Petronas of Malaysia.

    A joint venture grassroots refinery of 9 million tonnes per annum has also been approved by the Government with Kuwait Petroleum Corporation at Paradip. Five power projects are also on the anvil under joint venture at Panipat, Savli in Gujarat, Kosi Kalan in, UP, Haldia and Bhatinda. These projects of 1750 MW capacity will have an investment of about Rs. 7,000 crore. The joint venture partner for the 301 MW Panipat power project is Marubeni of Japan, Indian Oil has already undertaken fuel management for 52 independent power producers.

    In the area of exploration and production, Premier Oil of UK has been selected through global bidding as a joint venture partner for exploration and production in the North-East. A Memorandum of Understanding has also been signed with ONGC Videsh for overseas upstream and downstream operations. The corporation plans to bid for exploration blocks under the new exploration licencing policy of the Government of India.

    The corporation is also looking into various areas of collaboration with Emirates National Oil Company of UAE and the national oil companies of Trinidad & Tobago. A Joint Collaboration Agreement has been signed with Amoco, GAIL and IIP on commercialisation of Di-methyl-ether (DME) technology and setting up of a project for manufacturing and marketing of this new fuel. Several other areas of collaboration are also being explored with Marubeni of Japan and Petronas of Malaysia. Technical collaboration exists with Air BP of UK for upgrading aviation services. A joint statement has been signed with Petroleum Authority of Thailand for collaboration in several areas.

    Indian Oil registered a sa1es turnover of Rs. 59,176 crore during 1997-98 which was 6.8% more than the sales of Rs. 55,389 crore in the previous year. It attained an "excellent" rating for the 9th year in succession in the Memorandum of Understanding signed with the Government of India. The Corporations six refineries at Guwahati, Barauni, Gujarat, Haldia, Mathura and Digboi collectively achieved over 100% capacity utilisation for the 5th consecutive year. At 108%, the capacity utilisation was the highest ever in spite of lower crude oil supplies to the Barauni refinery from Assam. The 5,762 km pipeline network transported a record 31.03 million tonnes of crude oil and petroleum products which was aided by over 100% capacity utilisation of the Kandla-Bhatinda product pipeline. Product sales at 43.41 million tonnes were 3.4% higher than the previous year.

    By the end of 1997-98, all six operating refineries of Indian Oil were accredited with ISO-14001 certification for environmental management systems. lt may be recalled that the Mathura Refinery had earned the distinction of being the first in Asia and the third in the world in this area. Recently, one of its retail outlets in Delhi became the first in the country to earn ISO-14001 accreditation.
 
 

    International Ltd., a leading Government of India Undertaking under the Ministry of Railways has declared an all time high dividend of 175 per cent of the paid-up share capital for the year 1997-98. This works out to more than 20 per cent of the post-tax profits which amounts to Rs.8.66 crores as against the paid up share capital of Rs.4.95 crores. The Chairman, IRCON, Shri Vinay Kumar Agnihotri, announced this dividend, while addressing the 22nd Annual General Meeting of the Company.

    The Company, so far, has paid total dividend of Rs.22.95 crores on the paid up capital of Rs.4.95 crores to the Ministry of Railways. It recorded a significant turnover of Rs.459.4 crores and profit before tax of Rs.50.3 crores during 1997-98.

    IRCON has recently been declared as a 'Mini Ratna'. It is the first Indian Company to be awarded ISO 9002. It has bagged 3 awards from Engineering Export Promotion Council (EEPC) and Overseas Construction Council of India (OCCI) in recognition of its foreign exchange earning.

    The Company is presently executing 5 important Projects abroad and about 65 projects in India in the fields of Railways, Roadways, Highways, Bridges, Signal Telecommunication, Electrification and laying of Optic Fibre based telecom facilities etc. The Company has already bagged Projects worth more than 350 crores during the current financial year inspite of steep slump in the construction industry both in the domestic and International fields.