The Ministry has also decided to carry out year long programmes to commemorate the 25^th Anniversary of the Project. The programmes would commence with a National Workshop in New Delhi from the 19^th to 21^st November this year. Forest Ministers of the States and senior Forest Officials and Field Directors of various Project Tiger Reserves will participate.

    Members of the Committee were appraised of the new initiatives taken by the government for better management of the Tiger Reserves. Members were informed about the posting of armed squads in the insurgency affected areas, sanction of project allowance to field staff and availability of financial assistance for replacement of old vehicles. The allocation of funds to Project Tiger has been doubled. As against an allocation of Rs. 8 crores during the year 1997-98, the allocation for the year 1998-99 is Rs. 17 crores.

    Members were also told that the Central government has allocated Rs. 3.5 crore for diverting the Jaipur-Alwar Highway outside the Sariska Tiger Reserve. Members raised issues relating to the relocation of villages outside the protected areas and safeguards against arbitrary exclusion of areas within National Parks and Sanctuaries during settlement the process. Another issue raised was that of casualties to wild animals caused by collisions with vehicles on State Highways, National Highways and railway lines passing through the Parks.
 
 

     The construction of Rs.88.41 crores Parliament House Library Building is progressing satisfactorily. The foundation work of the project was completed in 1996.

    Originally scheduled to be completed by December 1999, it will now be completed by June 30, 2000 in view of the architectural and structural plans of domes of the building yet to be finalised. The Central Public Works Department (CPWD), which is constructing the Parliament House Library Building has floated a global tender for finalising architectural and structural plans of domes and their completion on schedule.

    The library building is being constructed within the Parliament House Complex and is very close to Parliament building.

    In this four storeyed building, there are two basements in the main building and three in the parking area. The total plinth area of the building is 55,000 sq. mts. including 8000 sq. mts. for underground parking.

    Building will house library, administration, research, reference, information services, Bureau of Parliamentary Studies and Training, auditorium with capacity of 1100 persons, parliament museum (Audio Visual Library), parliament archives and parking of 286 cars.

    The building, when completed will exhibit land marks of state-of-the-art modern architectural and building technology.
 
 

    Presenting a memorandum of demands to the Minister, the delegation informed that the ceiling prices of the controlled drugs are fixed based on the production cost of major manufacturers which is always substantially less than the operating cost of SSIs manufacturers. This was due to several factors viz. higher cost of raw materials, semi automatic and manual machine based production, financial constraints, marketing expenses, etc. The delegation also explained that their cost of production is also higher because of the low volume production and sales turnover putting them at disadvantage as compared to the bigger manufacturers. They also asserted that though SSIs has a market share of only 10%, the employment generated is ten times of major manufacturers.

    The SSI Pharmaceutical Manufacturers’ representatives also stressed that even in the case of decontrolled drugs, the prices of SSIs are less than that of major manufacturers in commonly used drugs like Antacid suspension, cough syrups, enzymes, etc. Moreover they operate in the interiors of the country supplying life-saving drugs to the people in the villages of the country, the delegation said.
 
 

    These institutions will henceforth be required, in addition to the existing requirement, a recommendation of the Committee set up by the Ministry of Environment & Forest (MOEF) for control and Supervision of Experiments on Animals (CPCSEA) under the Prevention of Cruelty to Animals Act, 1960.
 

    The dividend cheque was presented here today to the Union Minister of Steel & Mines, shri Naveen Patnaik by the Chairman and Managing Director of the Company Shri S.K. Ghosh. The dividend payment has been made for the fourth consecutive year.

    The net profit of BALCO before tax amounted to Rs.134.79 crore during 1997-98. The net worth of the Company rose to Rs.857.45 crores from Rs.803.90 crores. The Company had achieved an all-time high sales turnover of Rs. 848.51 crores against the previous year’s turnover of Rs.760.57 crores. It produced saleable Aluminium 88,198 tonnes during the year as compared to last year’s production of 91564 tonnes.

    BALCO management has already signed an MOU with the Ministry of Mines for 1998-99 and its performance has so for been adjudged either Excellent or Very Good during the last few years.

    The Company has drawn up Corporate Plan upto the year 2010. It envisages a record turnover of Rs. 1,000 crore during the current financial year. The Company has also chalked up export as a thrust area and is exploring new markets in SAARC region. BALCO has already placed orders for supply of new cold rolling mill and strip caster and simultaneously finalised contracts of civil and structural works with a view to adhere to the completion of expansion programme in a time bound schedule of 3 years completing in March, 2000.
 
 

    The major issues discussed during one day meet held at New Delhi today related to De-Pillaring and Roadway Drivages; Import of spares; Director General of Mine Safety’s approvals ; training; rehabilitation/refurbishment of equipment; clean coal technology ; conversion of roadheaders into continuous miners and thin seam technology including long term plans on investment with Coal India Limited.

    The 4^th meeting of the Indo-British Coal Forum was headed by Shri V.K Thakral, Director, Ministry of Coal whereas the leader of the British delegation was Mr. Roger Newell, Head of Commercial Department, British High Commission, New Delhi. The British delegation consisting of 14 delegates included Members from British High Commission, Joy Mining Machinery Ltd., Alstom Automation Ltd., Clean Coal Technical Directorate and from various other fields.

    Shri G.B Mukherji, Joint Secretary, Ministry of Coal welcomed British delegates. His Excellency Sir David Gore Booth, British High Commissioner to India responded from UK side.
 
 

    The Ministry of Food is planning to complete buffer stocking of foodgrains in Jammu and Kashmir at an early date. Shri Surjit Singh Barnala, Minister of Food and Consumer Affairs has assured the Food Minister of J&K, who called on him here today that the centre will be taking ncessasry arrangements for completing movement of foodgrains to J&K on an urgent basis.

    Food Corporation of India will be despatching 20 rakes of common rice ( 40,000 tonnes) to Jammu and Kashmir for meeting the requirements of the State for November and December, 1998. The despatches of rakes will start from November 1, 1998. In addition 50 truck loads of rice will also be sent each day from Punjab to Kashmir valley.
 
 

    Both sides have agreed for cooperation in a number of areas, which include trade, commerce, electronic governance and policy-related issues. This is besides agreement on certification of electronics and information technology products including software, strategic electronics, microelectronics, electronic components and materials, information technology software and digital exchanges.

    The Russian side noted Indian capabilities in the information technology offered particularly in the area of software production and exports to US and Europe. They agreed to increase the volume of trade between the two countries in this area. Electronic governance and use of electronics in administration was considered in detail and agreed that both the countries could put their skills together and work for an extensive knowledge base.

    In case of strategic electronics the two sides agreed in principle to initiate "The Russian – Indian scientific and technical cooperation in the area of high performance computing technology and applications" for the commercialisation of high performance computers in Russia and in third countries. They also gave their consent to set up a satellite link between the Russian Academy of Science and the Centre for Development of Advanced Computing (C-DAC) of India for offering training courses in the area of advanced computing. The Russian side agreed to arrange demonstration of the LINE Radar system in their country. The Russian side also indicated priority for cooperation in solving the problems that the Y2K would bring about in the next century.
 
 

    Both sides recognised the importance of border trade, which currently takes place through Moreh (Manipur) on the Indian side and Tamu (Sagaing Division) on the Myanmar side. It was agreed that traditional border trade on a headload basis for the benefit of residents in the border areas of both countries, would continue as in the past, without restrictions. The border point could also be used for normal trade transactions between the two countries, subject to their normal Export/Import rules. For this purpose, both sides agreed to conclude at an early date, inter-bank arrangements between their designated banks, to facilitate border trade.

    Commerce Secretary also had meetings with several important leaders and Cabinet Ministers in the Myanmar government. He called on Lt.Gen.Khim Nyunt, Secretary-I of the State Peace and Development Council, on October 30, 1998 at the conclusion of his official visit. Earlier, he called on the Deputy Prime Minister of Myanmar, Vice Admiral Maung Maung Khin, on October 28 and held a series of very fruitful and productive meetings with the Myanmar Ministers of Commerce, Science & Technology, Agriculture and Irrigation, and Mines. In all these meetings, the Myanmar side expressed keen interest in enhancing bilateral cooperation with India in their respective fields. A number of projects were discussed for early follow up. At Shri Prabhu’s meeting with the Myanmar Minister of Mines, it was decided that the two sides would exchange technical level delegations to identify specific areas for joint exploration and exploitation. The Commerce Secretary also called on Brig.Gen.Abel, Minister in the office of Chairman, SPDC, and discussed regional economic cooperation within the framework of Indo-ASEAN partnership and BIMST-EC and issues relating to the international economic and trading system. The Myanmar Chamber of Commerce and Industry (MCCI) held a luncheon in honour of the delegation on October 29 at the premises of the Chamber and the CII and the MCCI signed a Memorandum of Understanding in the presence of Shri Prabhu.

    The business delegation accompanying the Commerce Secretary also had a round of very useful meetings. The delegation called on the Deputy Minister of Industry-I and Deputy Minister of Industry-II and held business discussions with Ministries of Agriculture, Electric Power, Commerce and Science & Technology, besides paying a visit to the Industrial Zone on the outskirts of Yangon. The representatives of RBI and UBI held separate discussions with the Myanmar Finance Ministry, Central Bank and several public and private sector banks, in order to strengthen banking links between the two countries.
 
 

    During the year, KIOCL registered its highest ever turnover of Rs.593.91 crore. In dollar terms, the turnover increased from US$ 138 million during 1996-97 to over US$ 158 million – a growth of nearly 15%. Total income of the company for the first time in history crossed the Rs. 600 crore mark and amounted to Rs. 614.90 crore. Post tax profit also registered a growth of over 13% compared to the previous year and amounted to Rs.81.81 crore..

    The company, which has firmly entrenched itself as a supplier of premium quality Iron Ore Concentrate and Iron Oxide Pellets exported its products to six countries besides also meeting the requirements of domestic customers.

    The Pig Iron Project launched by KIOCL in joint venture with MECON and MSTC, two other PSUs under the Ministry of Steel, is also nearing completion with commercial production slated to commence during 1999.
 

    Union Minister of the State(Independent charge) for Ministry of Rural Areas & Employment, Shri Babagouda Patil is visiting Israel with a delegation on October 31^st to study the success of desert development programme and water harvesting structures in Israel with a view to take first hand feed back and try to implement them in Indian scenario.

    The Union Minister and the delegation has specially been invited by Mr. Refael Eitan, Deputy Prime Minister and Minister of Agriculture and Rural Development to Israel and see for themselves various desert research programmes and water harvesting structures and find out what best can be made applicable for Indian circumstances. During the course of the visit, the Indian delegation would be visiting Lakhish region in Israel and study their extension set-up. They would visit the Blaustein Institute for Desert Research. Other high points of the visit would be Development Study Centre at Rehovot, Netafim Company, Kibbutz Magal besides various other places of interest to the rural and agriculture development.

    It may be recalled that already India and Israel signed an agreement in 1993 covering various areas of cooperation in agriculture and rural development. During the last few decades, Israel has obtained great expertise in drip irrigation, horticulture, water management and related rural development. Water management is one of the areas of concern to the Government of India especially for its drought prone areas, desert areas and some of the coastal areas and the current Union Minister is giving a lot of emphasis on rain water harvesting and proper water management in rural areas of the country. It may be recalled that recently the Consultative Committee attached to the Ministry of Rural Areas & Employment which met at Trivandrum had expressed concern over water management in the rural areas. These views were seriously expressed by the Union Minister in Trivandrum itself while reviewing the rural development plans of Kerala, a State which receives very high rain fall and is close to sea, yet it is facing water management crisis. It is expected that lessons will be learnt out of success of the water harvesting structures of Israel and shall be seriously considered for its replication in India. Already India has utilised the scheme of wasteland development as practised in Israel by going in for Jojoba plantation (bush) which also provides oil for wasteland development projects in Rajasthan and Andhra Pradesh.
 
 

    Besides developing joint projects of mutual interest, India will train Sri Lankan scientists in bio-technology, micro electronics and communication, computer software development, meteorological instrumentation and telecommunication, gassifier, solar and wind power. India will also help Sri Lanka in creating awareness on patents and Intellectual Property Rights issues, science and technology entrepeneurship development and establishment of science and technology parks in the educational institutions. The Indian side has also agreed to establish a meteorological data receiving system for application of the satellite data and imagery, a laboratory for processing of satellite remote sensing data from Hyderabad and an Electronics Test and Measurement Laboratory. Seismic monitoring system in Sri Lanka will be strengthened and the out dated facility removed. The wind measurement network in Sri Lanka will also be modernised.
 
 

    Welcoming the delegation, Shri Bakht said that India has great appreciation for the dynamism of Korean entrepreneurs. He also said that the Indian government has taken a number of steps to facilitate foreign investment. The vibrant Indian market, the strong macro economic fundamentals and physical and human infrastructure have created a stable business environment in India, Shri Bakht added.

    Mr. Hong Geon Choe said that after passing through a phase of economic crisis, Korea is attempting restructuring in several sectors and positive results are expected from this exercise. Korean investment in India in 1997 was to the tune of US$ 1.6 billion and India is the 5^th largest Foreign Direct Investment destination for Korea, the Vice-Minister added.

    The Korean team expressed concern about the anti-dumping duties being levied by India on some items imported from Korea. They also wanted speedier clearance of investment proposals.

    Korean Ambassador to India, Mr. Dae-Hwa Choi, was also present at the meeting.
 
 

    The Committee was constituted by the government in December ‘96 to examine the present structure of pay, allowances, perquisites and benefits for public sector executives at the Board level, below Board level and non-unionised supervisory staff and recommend changes in the same.

    Aspects relating to the capacity of the public sector to pay, relativity between the emoluments paid in the public sector and of similarly placed employees in the government and private sector and the need for autonomy for PSEs in determining employees’ compensations were considered by the Committee.

    On the question of relativity, the Committee has recommended that relativity between the pay of the highest paid executive and the lowest paid employee in the public sector should be about 10:1 and that between the chief executive at the highest level and the executive at the entry level point about 4:1.

Some of the highlights of the recommendations made by the Committee are:

• The proposed pay scales would be effective from 1.1.1997
• The recommended scale of pay for Executive in Schedule ‘A’ posts is Rs. 27,750 – 31,500, Schedule ‘B’ posts is Rs.25,750 – 30,950, Schedule ‘C’ posts is Rs. 22,500 – 27,300 and in Schedule ‘D’ posts is Rs.20,500 – 25,000. The scale for the lowest level of executive at EO Grade is Rs.6550 – 11350.
• In order to obviate the eroding differentials in the DA payable under CDA and IDA pattern, 100% neutralisation of cost of living has been recommended for PSE employees covered by the terms of reference of this Committee. At the same time, the periodicity of adjustment of.
• DA has been recommended once in six months as is the practice in the Central Government, and not once every three months, as is the practice of IDA pattern at present.
• In view of 100% neutralisation, the Committee has recommended that the next pay revision for executives in PSEs should be after a period of 10 years or co-terminus with pay revision for Government employees.
• HRA has been recommended based on the reclassified list of cities as notified by Government of India based on the recommendations of 5^th Central Pay Commission. These rates are in the nature of ceilings and PSEs would have the flexibility to operate within the ceilings.
• One of the very important recommendations of the Committee is with regard to Performance Related Payments and perquisites and allowances. The Committee has recommended that an increasing proportion of payments to executives, apart from salaries, should be performance related, thus constituting incentive/disincentive payments. For this reason, the Committee suggests that perquisites and allowances may go upto 50% of basic pay. Payments over and above the ceiling of 50% should be entirely in the nature of performance related to payments, which, should not, as a norm, exceed 5% of the distributable profits in an enterprise, and 50% of the basic pay of individual executive.
• In respect of sick enterprises, including those referred to BIFR, revision in pay scales should be allowed only after a strategic plan of restructuring for revival with adequate funds, has been implemented. In respect of enterprises which the Government decides to close down, a generous VRS should be implemented.
• The Committee has strongly recommended amendment of the Employees Pension Scheme 1995 so as to enable the PSEs to formulate and implement alternate pension schemes.
• The Committee has felt that it is imperative that every PSE should improve its performance such that the resources for meeting the increased obligation for salaries and wages should be met from increases in productivity, profitability and performance.

   S/Shri S. Venkitaramanan, former Governor, Reserve Bank of India, Prof. Deepak Nayyar, Jawaharlal Nehru University, New Delhi and former Chief Economic Adviser, Government of India, Deepak Parekh, Chairman, Housing Development Finance Corporation, P.G. Mankad, Secretary, Ministry of Information & Broadcasting and Shri S. Narayan, Secretary Department of Public Enterprises is the Member Secretary of the Committee.