The Government has extended the terms of Financial Institutions Reforms and  Expansion Project (FIRE-D) taken up in collaboration with the United States Agency for International Development (USAID) for a further period of five years ending September 2003. The first phase of FIRE-D project ended on September 30,1998 . In the first phase, infrastructure projects in Tirupur, Ahmedabad, Udipi, Doddaballapur, Gulbarga, Vijayawada, Pune and Surat were taken up.

    The FIRE-D project was taken up at a total cost of US $27 millions out of which USAIDÆs contribution was US $20 millions and government contribution 7 millions in cash or kind. In addition to developmental assistance to the tune of US $20 millions, housing guarantee funds of US$125 millions were provided to Indian Financial Institutions for financing urban infrastructure projects. Such urban infrastructure projects are expected to serve as a model demonstration projects to promote increased private sector financing of commercially viable infrastructure development projects. The housing guarantee funds are to be governed by a separate implementation agreement between USAID and the Housing Guarantee Operator.

    The Project has three components; Regulatory Environmental Improvement, Operating Environmental Improvement and Debt Market Development. The Ministry of Urban Affairs and Employment is concerned with the debt market development which is intended to broaden the debt market by expanding its capacity to serve as a major source of long term private sector finance for commercially viable urban infrastructure projects. In the second phase of FIRE-D projects, USAID contribution has been increased to US$31 millions from the existing US $ 20 millions. GovernmentÆs contribution has also been increased from US $ 7 millions to rupee equivalent of US $ 10.85 millions. Besides, a grant of additional US $ 0.60 millions to the grantee has been committed. The key results sought to be achieved intend to extend access to basic urban services to the poor, better health among poor families in low income neighbourhoods, provide framework for efficient delivery of urban environmental infrastructure, make responsive municipal finance system and provide urban management training network.
 
 

    The meeting is expected to discuss a request from the Indian Medical Association for setting up a screening body at all levels of consumer redressal fora for examining whether a prima-facie case of medical negligence existed in cases that are registered with the Commission. The Department of Consumer Affairs is monitoring the number of cases filed and disposed of by various consumer courts in the country. As on April 1, 1998, a total of 1,53,251 cases have been filed in the State Commission of which 91,500 have been disposed of. In the district fora 11, 87,923 cases have been filed and 9, 23,894 cases disposed of. In the National Commission the disposal rate has registered 59.06% with a disposal of 8,549 cases out of a total of 14,476. The Department is also collecting details of the number of cases disposed of within 90 days, between 90 days and 150 days from States and Union Territories.

    At present one National Commission, 32 State Commission and 542 district fora are functioning in the country to deal with consumer grievance redressal cases.
 
 

    The 10th Media Image Workshop was inaugurated by Mr. Mark Tully, former BBC Bureau Chief in India, on 25^th October, 1998 in New Delhi. The Workshop, which has been designed by TV newsreader Ms. Sheila Chaman, aims at giving orientation in software programming and presentation. Special tips on the finer aspects of newscasting, voice modulation, breath control and scripting are taught to the exclusively selected 20 participants of the Workshop. The Workshop aims at creating a new, sophisticated and elegant "Indian" breed of presenters and anchor persons for the electronic medium in India.
 
 

    In his opening remarks, Shri Prabhu referred to the new investment policies of India which were designed to enhance capital inflows and technological colloboration and expressed the hope that Israel would find India an attractive location for investment in the infrastructure sector. He mentioned that new investment of the order of US $ 350 to 400 billion would be required to upgrade India’s infrastructure to the desired level, covering power, ports, roads and telecommunications. Israeli investment in India has increased to US $ 1.33 billion, making Israel the 7th largest investor in India during the period 1991-97, covering sectors like irrigation, floriculture, fruit products, medical diagnostics, security systems, software and telecommunications. Both sides emphasised that India and Israel were doing their best to accelerate expansion of bilateral trade and investment and hoped that businessmen from both side would fully tap the existing opportunities by taking initiatives for increasing investments, bilateral trade and economic relations. While growth in bilateral trade during April-July 1998 has been 14%, it is still relatively insignificant compared to the potential and the fact that it is only 1.3% of Israel’s global trade and 0.9% of India’s global trade. Indo-Israeli bilateral trade was of the order of US $ 649.5 million in 1997-98.

The one-day meeting is scheduled to conclude with the signing of the Agreed Minutes later today. An MOU for cooperation between NASSCOM and Israeli Association of Software Houses and between the Department of Electronics, Government of India and the Israeli Industry Centre for Research & Development is also likely to be signed in the near future.
 
 

    NHDC has the mandate to provide inputs to the handloom sector. It supplies yarn, dye stuffs and chemicals to the weavers through various handloom corporations, apex handloom societies and primary handloom societies. The primary objective, however, is to provide yarn to the weavers at mill gate price. The corporation almost operates on zero profit basis which accounts for the very low profit margin.
 
 

    The fellowships are open to Indian scientists in the age group of 30 to 40 years with proven track record, for outstanding research work exploring new frontiers in the field of expertise. These fellowships are scientist specific and include an attractive fellowship of Rs.25,000 per month. Besides, there will also be research grant for equipment, manpower, supplies and consumables, travel including international and other special requirements for performing at the highest level. The duration of the fellowship is for a period up to 5 years.

    A three tier system is being adopted for the selection of candidates for the fellowships. This includes sup-committees in six special disciplines, a National Expert Committee with an eminent scientist as the Chairman with other experts and an empowered committee of secretaries under the Chairmanship of Secretary, Department of Science and Technology. The process involved is very rigorous in terms of initial screening by the sub-committees followed by technical presentations in the sub-committees as well as in the National Expert Committee. In all 11 scientists will receive the fellowship for 1997-98
 
 

    Besides the Conference an exhibition of Police Communication and other allied equipments and the innovation made by Police personnel in the field of Police Telecommunication is being organised in CGO Complex.

    The Conference has been organised by Directorate of Coordination Police Wireless, MHA biennially and will be attended by Heads Police Telecommunications divisions of the states/UTs/CPMFs and intelligence agencies.
 
 

    Describing credit as an essential input for the survival of Small Scale Industries, Shri Badal said that the Reserve Bank of India and the Central Government are monitoring the credit flow and taking steps to ensure that their instructions/guidelines are earnestly followed.

    Adverting to the Kapoor Committee Report, the Minister said that the some of the major recommendations of the Committee envisage special treatment to the smaller among small industries, enhancement in quantum of composite loans, removal of prcedural delays, sorting out issues relating to mortgaging of land, permitting equitable mortgages, allowing access to low-cost funds to Small Industries Development Bank of India (SIDBI) for refinancing SSI loans, non-obtention of collaterals for loans upto Rs. 2 lakhs, setting up of a Small Industries Infrastructure Development Fund for developing industrial areas in/around metropolitan and urban areas etc. Reserve Bank of India, the Minister added, has already accepted for implementation 35 recommendations and has asked banks to implement them.

    Shri Badal also cited a few recommendations accepted by RBI such as enhancement in the limit of composite loans to Rs.25 lakhs from the existing Rs.5 lakhs, delegation of more powers to Branch Managers for granting adhoc facilities to the extent of 20 per cent of limits sanctioned, strengthening the recovery mechanism, opening of more dedicated SSI branches etc.

    Recommendations which pertain to various departments of the Central Government are being examined, Shri Badal said. In some cases, the Minister said, discussions will have to be held with the state governments. About dereservation, Shri Badal said that according to the recommendations of the Advisory Committee on Reservation, the government is pursuing a policy of phased dereservation.

    Shri Badal said that efforts will be made to see that the Department of Small Scale Industries works as a service-oriented organisation. He said that many hurdles could be removed if there is better interaction between the government and entrepreneurs in the

    SSI sector. Shri Badal also promised to use his good offices for sorting out problems of the Small Scale Sector pertaining to other Ministries/Departments.

    The SSI Sector, which contributes 40% of the industrial production, 35% of the total exports and employs almost 167 lakh persons in about 30 lakh SSI units, Shri Badal said, is the backbone of our economy.

    The Human Resource Development Minister, Dr. Murli Manohar Joshi was presented a cheque of Rs.25 lakhs by Dr. Y. Medury, Chairman & Managing Director of Educational Consultants India Limited (Ed.CIL), here today.

    Ed.Cil made a net profit of Rs.162 lakh in 1997-98. The turnover for the year touched Rs.3108 lakh as of Rs.2155 lakh of the previous year. For 1997-98 foreign exchange receipts amounted to 50% more than the previous financial year. It has executed approx. 50 projects in the operational areas of institutional development (turnkey), technical assistance and strengthening human resources (training, placement and secondment).

    It is categorised as a ‘Mini Ratna’ PSU by the Department of Public Enterprise (DPE). The Corporation has been able to maintain an "Excellent" rating awarded by DPE under the MOU signed with MHRD continuously for the last five years.

    Ed.CIL was established in June 1981 as a Public Sector Undertaking of the Deptt. of Education. It offers educational consultancy services to a number of agencies, such as governments and educational institutions of developing countries and funding organisations like the World Bank, Asian Development Bank, etc., undertakes surveys of educational requirements, prepares feasibility/evaluation reports and plans and establishes educational institutions/programmes on turnkey basis within the country and abroad.
 
 

    Speaking about the Public Sector Undertaking, Rashtriya Chemicals & Fertilizers (RCF) which was the focus of agenda of today’s meeting, Shri Barnala said that the company’s performance has been excellent in 1997-98 in spite of its old plant and machinery. The Trombay Unit of the Company has shown remarkable turnaround and from a loss of Rs. 40 crore in 1996-97, it made a profit of Rs. 40 crore in 1997-98 after revamp. The total net profit of the company rose from Rs. 76.88 crore in 1996-97 to 189.37 crore in 1997-98. The Members of the Parliamentary Consultative Committee complemented RCF for its excellent performance.

    The capacity utilisation of plants was very high during the year ranging between 100% for industrial products, 95% for urea and 90% for complex fertilizers. Despite the limitation of Gas supply from ONGC, Uran. In this context, Shri A.V. Gokak, Secretary in the Department of Fertilizer, said that the possibility of getting gas from Middle-East Countries or alternatively of setting up joint ventures abroad will be explored as the position of supply of gas from within the country is not going to be better in the coming years. He also said that the feasibility of setting up coal based fertilizer plants in the country is being explored. Stating that food security was of vital importance, Shri Gokak said that that could only be achieved by making cheaper fertilizer available to the farmers in adequate quantities.

    The Members requested the Minister to ensure that there is adequate availability of all fertilizers in the country during the current Rabi season. They were informed that barring a few pockets where there may be constraint in availability, the supply position is likely to be confortable.

    Dr. A.K. Patel, Minister of State of Chemicals & Fertilizers, Sh. A.V. Gokak, Secretary, Deptt. Of Fertilizers, Sh. Deepak Chatterjee, Secretary, Deptt. Of Chemicals and Petro-Chemicals and the senior officers of the two departments were present in the meeting. The following Members of Parliament were present – S/Sh. Dileep Sanghani, Rajveer Singh, N. Bhaskar Rao, Bijoy Kumar ‘Bijoy’ , Smt. Omwati Devi (Lok Sabha) , S/Sh. Dipankar Mukherjee and Santosh Bagrodia (Rajya Sabha).
 
 
 

    Due to slackening of envisaged time frame of Power Plants, demand of coal by existing Power Plants has also come down. At present about 35 days reserve is stocked at the power plants.

    Captive coal mining has been allowed for private & public sector. 82 mining blocks with 20 billion tonnes reserve have been identified with an annual production potential of 150 Mt. Out of 27 blocks allotted to power and steel, only one has started producing 2 Mt. Coal. Due to reduced demand by power sector and import of coking coal it is perceived that the production of coal will be in surplus. However, it is visualised that by the end of X plan perceptions would be quite close to projections.

    To meet the demand and competition from imported coal, privatisation of coal production without restriction of captivity, deregulation of prices of all grades and blending of coal is being considered.
    For improving rail infrastructure, Ministry of Coal is financing rail line construction of 90-95 kilometers. Coal bed Methane being high capital intensive activity, its exploitation will be jointly by Ministry of Coal & Ministry of Petroleum and Natural Gas.

    Speaking on the occasion Shri N.K Sharma, Director (Technical) Coal India Limited said that success of this nationalised coal industry is key to economic development of the country. The industry is gearing up to meet more and more competition both from indigenous sources as well as from imported coal. It is the philosophy of the nationalised coal sector to pay due attention to all its stake holder i.e the Government, the employees, the vendors, the consumers and finally the nation at large. Given due support, the nationalised coal industry would continue to soar new heights to fulfil the tasks assigned to it by the nation.

    The 5^th International Mining & Machinery Exhibition is being attended by manufacturers, traders & distributors of machinery, research & technical institutions, foreign companies/organisations/governments and agencies.

    Inaugurating the 71^st Annual Session of FICCI here today, the Prime Minister declared that in the short span that his Government has been in office, " we have demonstrated our resolve to put the Indian economy onto a higher growth path" and dispelled all doubts as to our commitment to the philosophy and policies of liberalisation. The Government has not gone back on any of the reform initiatives of the earlier governments, but has added a new momentum to the reform process, he said.

    The Prime Minister pointed out that the Government had delicensed sugar, petroleum and coal/lignite from the purview of the IDR Act, thus virtually freeing the entire Indian industry, barring those in strategic areas from the regime of industrial licensing. The Prime Minister asked Indian industrialists and businessmen to look within and introspect deeply if the business and industry has lived up to the expectations of the Indian people and the government.

    Sharing his disappointment about a section of business and industry continuing to base their investment decisions on short term sentiments and not on the long term opportunities that the country offers, the Prime Minister urged FICCI and other business associations to make vigorous efforts to create an atmosphere that focuses domestic and foreign investors attention on the Big Indian Opportunity waiting to be reaped once the cycle of recovery and high growth sets in.

    Placing his trust in the ingenuity of Indian business to always emerge stronger from crises, the Prime Minister called for a stronger partnership between trade and industry and the government to achieve faster and sustained economic growth.

    The following is the text of the Prime Minister’s speech on the occasion :

    "As I stand here to inaugurate the 71^st annual session of the Federation of Indian Chambers of Commerce and Industry, I am struck by the awareness that we are indeed at a turning point in world history.

    These are difficult times for Indian and global business. A massive churning process is taking place in the world economy. The name of this Samudra Manthan in the modern era is Globalisation.

    Globalisation has brought in unprecedented turbulence, but trapped in that turbulence is also the hope of amrit (nectar). It is a moment when the promise of a new phase of long-term prosperity and progress lies in the womb of short-term uncertainty.

    Today, the process of churning has brought the rhetoric and realities of globalisation face to face. Some of these realities are indeed harsh and painful.

    The international financial markets find themselves in a crisis whose threatening waves have rapidly travelled from local to regional to global waters. There is a district downtrend in global trade. Many national economies around the world have shrunk, some even registering a negative growth. For the first time in post-World War two history, even rich nations have begun to worry that the comforting certainties of their continued prosperity are not foolproof.

    Does this mean that globalisation itself is a flawed idea,fit only for a quick burial? I know that there are people, both within India and outside, who say so – and I also know that they represent a minority opinion.

    Globalisation is a historical reality. And, nations cannot prosper in isolation. Forging mutually beneficial and co-operative relations is necessary for growth and prosperity for all.

    Even Professor Amartya Sen, the winner of this year’s Nobel Prize for Economics – and who, as we all know, is one of the sharpest critics of the failures of globalisation – has forthrightly argued that globalisation can also be a boon for humanity, if coupled with credible social-sector safety nets.

    At the same time, history itself is teaching both business and political leaders in the world what Indian philosophy has explained ages ago: namely, there is no single exclusive path to reach the Truth. Similarly, there can be no single model or solution to the problems of economic development.

    Each nation has to pave its own path, based on its own concrete national realities and priorities. This is what Swadeshi means. Globalisation and Swadeshi are, thus, complementary and not contradictory to each other.

    Friends, India’s strategic response to the reality of globalisation has to be two-fold: external and internal, both designed to achieve a common goal – namely, to strengthen the global economy and the Indian economy.

    Externally, we advocate, with even greater vigour and conviction than in the past, our case for changing the present iniquitous unsound architecture of the world economy. The World Bank and the International Monetary Fund were set up in the pre-globalisation era and at a time when most countries in the world were either not free or had just won their independence.

    India seeks an innovative restructuring of the Bretton Woods twins, to reflect the needs of today’s interdependent world and also to better achieve the goal in their founding charter – namely, "The Achievement of Sustainable Economic Development and Reducing Poverty".

    We similarly seek a radical change in the approach and functioning of other institutions such as rating agencies and global commercial banks.

    The UN is contemplating a major international conference two years from now to suggest a new policy framework for the global financial system. India will make an important contribution to the deliberations at this conference and in discussions which will take place in other fora.

    Towards this end, the Government is formulating a six-point conceptual framework for the innovative design of a new global financial architecture.

    The six pillars of the new architecture will reflect the need for:

1. Managing large capital flows without excessive volatility;
2. Speedy decision-making and timely corrective action in the face of instantaneous electronic fund transfers across the globe;
3. Transparency among all the players – public and private, government and quasi-government, in developed and developing countries;
4. Achievement of equity in an inherently unequal world economic order;
5. Timely preventive steps against the "contagion effect"; and,
6. An ability to introduce adaptation and innovation in a fast-changing financial system.

    Friends, it is not just the global financial system that is demanding radical restructuring. Our own economy is in urgent need of deeper, broader and faster reforms. My Government is fully committed to this objective.

    Our commitment is not in words, but action.

    I can say with considerable satisfaction that our record in taking initiatives in the economic sphere is superior to that of any other government in recent memory, for a comparable initial period of six months in office.

    In this period, we have demonstrated our resolve to put the Indian economy onto a higher growth path and dispelled all doubts as to our commitment to the philosophy and policies of liberalisation. My Government has not gone back on any of the reform initiatives of the earlier governments, but has added a new momentum to the reform process.

    Delicensing, decontrol, and debureaucratization have been my personal belief long before I came to the present office. My Government has delicensed sugar, petroleum, and coal/lignite from the purview of the IDR Act. With this, virtually the entire Indian industry, barring those in strategic areas, has been freed from the regime of industrial licensing.

    Technology inputs are being virtually freed from Government approval processes to facilitate free inflows.

    Intellectual Property Rights are a critical need in the emerging knowledge-based economy. My Government’s commitment to the protection of IPR has been demonstrated by acceding to the Paris Convention for the Protection of Intellectual Property on September 7, 1998. We have also declared our resolve to meet the obligations on TRIPs under the World Trade Organisation.

    Information Technology is revolutionising every facet of life-including, most dramatically, the national and global economy. It has been an area of high priority for the Government. The IT Action Plan prepared by the National Task Force on Information Technology and Software Development, with 108 recommendations to make India an IT superpower, has been accepted by the Government.

    Many of these recommendations have already been implemented. Others, such as giving a major boost to hardware manufacturing in India, are in the process of being finalised as specific action plans.

    Recognising the importance of infrastructure in our development process, the allocation for such projects has been substantially augmented by over 35 percent – from Rs. 45,252 crore to Rs. 61,146 crore. In the project sanctions of the All-India Financial Institutions, the share of infrastructure projects has gone up by 217 percent in the current year. Infrastructure projects now account for one-third of the sanctions of Rs. 75,000 crore.

    We have also taken other steps to strengthen infrastructure financing. The Infrastructure Development Finance Company Ltd. (IDFC)has been set up with a capital base of Rs. 1,650 crore, with a unique public and private sector partnership to channel private capital into viable infrastructure projects.

    Tax incentives for infrastructure projects have been further liberalised during this period.

    New initiatives were taken to catalyse the interest on Non-Resident Indians in our developmental process. The success of the Resurgent India Bonds is a demonstration of their willingness to participate in our national-building mission.

    Distinguished friends from industry and business, the point, briefly, is: If you have a viable infrastructure project of national importance, I assure you that neither finance nor governmental clearances will be a constraint.

    Regulatory bodies which can foster a competitive environment, coupled with autonomy and transparency, have been strengthened during this period in order to boost investor confidence. This process will continue.

    Friends, I have listed these actions not to claim that what the Government has done so far is sufficient. I am as aware as all of you are that Indian industry and business are passing through difficult times. Confidence is low and expectations from the Government high.

    There are valid concerns about the capital market, imbalances in sectoral growth, sluggish pace of infrastructure development, and the slow spread of the spirit of reforms within various levels of the Central and state governments.

    The present downtrend in the global economy is only a part of the reason for the difficulties faced by Indian business and industry. An equally crucial reason arises from internal factors-and they are not confined merely to the policies and performance of successive governments.

    It is time for Indian industrialists and businessmen to look within and introspect deeply. Has business and industry lived up to the expectations of the Indian people and the Government? Let me cite a few issues.

    What is the main cause of the present depressed state of the stock market? Is it not, at least partially, created by a large number of public offering by unscrupulous promoters who exploited the market in its boom phase, and later betrayed their commitment to their investors, mostly small investors?

    Can we allow such predatory promoters to go unpunished? I have instructed the concerned agencies in the Ministry of Finance to promptly look into this malaise and take suitable punitive action within the next three months.

    I urge organisations like FICCI to cooperate with the Government in taking these firm but necessary measures to restore investor confidence. A reform process without proper checks and balances is neither good for you in business nor for us in government.

    Take the matter of good corporate governance. How many Indian companies have adopted its imperatives and improved their own efficiency, transparency, customer-focus and competitiveness?

    The time has come when this matter cannot be left to the promoters alone. The Government would like the Financial Institutions, on the strength of the significant stakes they hold in companies, to demand better performance and adherence to sound corporate practices.

    I must also share my disappointment about a section of your fraternity which continues to base its investment decisions on short-term sentiments, and not on the long-term opportunities that our country offers.

    Let me cite the example of the FDI proposals approved by the successive governments since 1991. The approvals amount to US$ 52.67 billion. As against this, the total FDI inflow has been only US$ 13.41 billion – that is, only 25 per cent of the approvals. I accept that policy issues and clearance problems are partly the reason for this dichotomy. However, it is also known that short-term has delayed investment plans of many project promoters.

    I, therefore, urge FICCI and other business associations to make vigorous efforts to create an atmosphere that focuses domestic and foreign investors’ attention on the Big Indian Opportunity. It is an opportunity waiting to be reaped once the cycle of recovery and high growth sets in.

    The Big Indian Opportunity can be realised only if business, industry and the Government work with one mind and for one purpose – strengthen the economy at the earliest.

    As far as the Government is concerned, I have already said that we assert our commitment to this goal not through words, but speedy action. Friends, you will see an accelerated and firm pace of action in the economic sphere in the coming months. I am, indeed, happy to announce some of them today.

    Restoration of vibrancy to our capital market is an important component of Government’s strategy to reinvigorate the economy. Towards this objective, we shall initiate the following measures that should improve sentiments significantly.

1. We propose to permit companies to Buy Back Shares within the prudential guidelines set by SEBI in order to enhance the value to investors. My Finance Minister, Shri Yashwant Sinha indicated this yesterday.
2. The Government proposes to abolish the existing provision requiring its prior approval for inter-corporate investments by one Indian company in another Indian company.
3. Companies will be permitted to enhance acquisition limits in accordance with the recommendations of the Justice Bhagwati Committee on take-over regulations.
4. Structural improvements will be undertaken for accelerating demat trading and settlements. This would bring great efficiency, transparency and lower cost and thus serve the interest of small investors.
5. Restructuring of PSUs and a credible disinvestment program is critical for improving the productivity of our economy. It is also a centre-piece of our fiscal management strategy. Past efforts in this direction have not yielded desired results. We propose to revise this process and set up a more transparent mechanism, so that the pace of restructuring and disinvestment is commensurate with the urgency the problem. The action to achieve these objectives will be in place within thirty days.
6. The Government has initiated measures to open the insurance business to the Indian private sector. This is a major step in mobilising long-term resources for funding long-gestation infrastructure projects. The Government is presently examining the proposal to permit an appropriate level of minority foreign equity in the insurance sector.
7. Steps will be taken to speed up the passage of a new Companies Act and FEMA. Views of trade and industry will be invited before finalising the Money Laundering Act.
8. I know that developments relating to UTI’s US-64 scheme have caused understandable concern among unit holders and the financial community. I wish to assure them that the Government will support the UTI fully in honouring its obligations.

    Steps to improve the portfolio of Financial Institutions, deal with the problem of Non-Performing Assets and to improve the efficiency of Financial Institutions for making finance available at affordable costs is a high priority for my government.

    I am confident that these and other measures will improve market sentiments significantly, especially since the fundamentals of the Indian economy are strong.

    There is a valid concern widely shared in political and business circles that Government spending in infrastructure sectors has significantly come down after the start of economic reforms. My government will remove this damaging imbalance.

    The Government will start, within this year and from twenty different places across the country, work on a major 7000 km road project. It envisages a six-lane North-South corridor connecting Kashmir to Kanyakumari and a similar East-West corridor connecting Silchar to Saurashtra. The project, which is expected to cost Rs. 28,000 crore, will have the scope for maximum private sector and foreign participation. This project also has the potential to create as many as three crore man-years of employment, which will be a major contribution to the realisation of the national goal of "Berozgari Hatao".

    Cement concrete pavement will be the preferred technology in this, as well as other ongoing projects for four-laning of our national highways. We expect the move to give a big boost to our cement industry, which is facing the problem of excess capacity and also to the construction industry.

    Telecommunications is a critical infrastructure for every area of the economy. The are a number of knotty problems in this sector, which are a difficult legacy that we are carrying from the past. However difficult, we have the political will to untie all the knots in the most transparent and consultative manner.

    A new Telecom Policy will be formulated within the next three months to provide a state-of-the-art nationwide telecommunication network, speed up rural telephone services and to meet the new challenges of the convergence of telecom, IT, media and consumer electronics.

    In addition, within the next fifteen days, the following actions will be taken:

• All the outstanding issues between the Department of Telecommunications and the TRAI will be resolved to strengthen the latter’s regulatory role. Hereafter, we will ensure that two wings of the Executive do not go to court, for this amounts to an abdication of political responsibility.
• The new Internet policy will be announced and licences issues to private Internet Service Providers.
• The Iridium project for global satellite telephone service will be launched, as scheduled, on November 1. The necessary approval for grant of licence for this project was given by the Department of Telecommunications yesterday.
• I have mandated the National Task Force on Information Technology under the chairmanship of Shri Jaswant Singh to prepare a report suggesting a resolution of the outstanding issues in the telecommunications sector, including the licence fee structure for basic and cellular telephone operators. The Task Force will submit its recommendations before November 30, and the Government will take appropriate action before the end of the year.

    The Government will identify five cities for the construction of world-class international airports with a maximum of 100 per cent foreign equity investment.

    Housing is a priority for my Government. The National Agenda for Governance has set the ambitious target of construction of twenty lakh additional housing units each year. Besides giving a fillip to many industries, this will also generate large-scale employment. In order to associate activity in the housing sector, the Government has taken initial steps towards the repeal of the Urban Land Ceiling Act.

    The Ministry of Environment will prepare a list of all industrial and developmental projects above Rs. 25 crore, in which environmental clearance is pending for over six months. Consistent with our commitment to harmony between development and environmental protection, these will be duly examined and all deserving projects will be cleared by the Ministry within the next three to six months.

    Friends, these are difficult times for trade and industry. These are also trying times for the Government. Yet, aware as I am of the ingenuity of Indian business to always emerge stronger from crises, I look forward to a more active partnership with you to achieve faster and sustained economic growth.

    When the going gets tough, India must get going with greater determination and self-confidence.

    The challenge is your in industry and business, for you have to refocus and restructure quickly. However, the challenge is also ours in Government, for we too have to redouble our efforts to speed up action – real, visible, creative action.

    Together, let us confidently meet this challenge – and meet for the same occasion next year with more smiles on our faces and more contentment in our hearts.

    With these words, I inaugurate the 71^st session of FICCI and extend my best wishes to all.

Thank you."