Earlier in 1995, with the creation of two departments _____Department of Urban Development and Department of Urban Employment and Poverty Alleviation, the then Ministry of Urban Development and Housing was renamed as the Ministry of Urban Affairs and Employment. Still earlier, this Ministry was known as the Ministry of Works and Housing.

    The Government has already renamed the Ministry of Rural Areas and Employment as the Ministry of Rural Development by an amendment in the Government of India (Allocation of Business) Rules. In the re-structured Ministry of Rural Development, the Department of Waste Land Development has been abolished as a separate identiy.
 
 

Type of Units

• Existing unit with or without expansion and new units.
• Existing units can modernise and/or expand with the state-of-the-art technology.
• New units must set up their entire facilities only with the appropriate eligible technology.
• Under the scheme, a unit can undertake one or more activities listed under-SCOPE OF THE SCHEME (refer TUFS Series:#1). However, multiple activities can be undertaken only in an integral manner, i.e., by way of forward or backward integration. It is, however, clarified that weaving/knitting and garment manufacturing or weaving/knitting and processing or garment manufacturing and processing will be considered as integral activities.

• Under the TUF Scheme, generally only new machinery will be permitted.
• However, in case of the following machinery with a minimum residual life of 10 years, import of second hand machinery by the eligible applicant unit will be permitted subject to maximum expired life (vintage) of 5 years as reckoned from the year of manufacture:
• Projectile shuttleless loom.
• Machinery for jute softening & carding, drawing, spinning and weaving.
• Autoconer.
• Rapier shuttleless loom.
• Worsted card.
• High speed inter-setting/Gill box/chain gills/rotary gills/vertical gill box.
• Drawing set/roving frame/rubbing frame for worsted system.
• Ring frames for worsted system.
• Rectilinear combers for worsted system.
• Ring frames with siro spinning attachment with or without auto doffers for worsted system.
• A certificate certifying the vintage and residual life of the imported second hand machinery must be furnished to the lending agency at the appropriate time as determined by the lending agency. Any of the agencies specified in Appendix-32A of the Handbook of Procedures (Volume 1) of EXIM Policy 1997-2002 (as amended from time to time) can give such a certificate. Such a certificate is compulsory for any import of eligible second hand machinery under this scheme irrespective of the value of such import. A certificate from the Textile Commissioner will also be necessary to the effect that the equipment is not indigenously available.
• Balancing equipment or equipment required for de-bottlenecking the production process will also be eligible for funding under TUFS.
• Waste reduction equipment or devices will be eligible for funding under the TUFS.
• Eligibility of any other textile machinery equal to or higher than the benchmarked technology not listed in the annexures or developed in the course of the operation of TUFS will be, suo motto or on reference, specifically determined by the Technical Advisory Committee to be constituted by government.
• The size of the technologically upgraded facilities of an existing unit or size of the new unit must be of a minimum economic size.

1.    The following investments will also to be eligible to the extent necessary for the plant and equipment to be installed for Technology Upgradation and the total of such investments will not normally exceed 25% of the total investment in such plant and machinery.

• Land and factory building including renovation of factory building and electrical installations;
• Energy Saving Devices;
• Effluent Treatment Plant (ETP);
• Water Treatment Plant for captive industrial use;
• Captive power generation.

• In-house R&D including designs studio;
• Information Technology including ERP;
• Total quality management including adoption of appropriate ISO/BIS standards.

     Lending in excess of the limits prescribed above in respect of these items will attract the normal lending rates.

Investment in common infrastructure or facilities by an industry association, Trust or Co-operative Society in an industrial cluster or estate:

    Investment in common infrastructure facilities owned by the association, trust or cooperative society of the units participating in the TUF Scheme, to the extent necessary for this purpose, including the following:

• Common utilities, viz., water supply, power substation etc.
• Common captive power generation.
• Common effluent treatment plant.

Voluntary Retirement Scheme (VRS)

    Voluntary Retirement Scheme (VRS) for restructuring of manpower of an existing unit as a part of the technology upgradation project will be eligible for funding as a part of the project. However, interest reimbursement will not be admissible on that part of the investment.
 
 

    Shri. Anil Kumar said that the convergence of technology has made possible increased bandwidth to carry image, voice and data to the remotest parts of any region. He said that the telecom and the postal sectors will gear up fully to meet the challenges of the emerging scenario and make available modern communication services to the maximum number of people. The Government has already put in position a plan to set up village telephones in almost all the villages of India, he added. In this context he also said that India has great potential to offer an attractive destination for foreign investment.

    The Member (Operations) Postal Serivces Board Shri B.N. Som who was the theme speaker made a presentation on the Satellite Money Order System. He said that in 1998 the outstanding balance of NRI deposits was US $20402 million and stated that the total NRI remittances are estimated to be about US $5.27 billion annually. Shri Som said that India has the infrastructure to handle remittances through Electronic Money Transfer. He said that the commercial banks can also have a joint venture with the Department of Posts (DOP) who are remitting money from banks of exchange to NRIs accounts. Stating that the India Post is the first in the world to use satellite facilities for transfer of money, Shri Som said the Department has put up 77 Very Small Apperture Terminals (VSAT) which are in turn linked to 615 stations for transmission of money orders.

    Earlier the acting Chairman and Managing Director, Videsh Sanchar Nigam Ltd.,(VSNL) gave presentation on "Communication Industry - An Overview". He said that communication revolution is sweeping across the world in the field of basic, mobile internet, satellite and multi-media services leading to convergence of technology. Shri Kumar said that a paradigm shift is taking place in the communication services owing to the technological advancement, globalisation of market, deregulation and privatisation. This has resulted in falling costs in telecom services and increase in data traffic, he added.

    The four day seminar is organised by the India Investment Centre (IIC) and is co-sponsored by the various Departments of the Government of India as well as private institutions. The seminar is attended by experts from both private and public sectors and other professionals from many countries.
 
 

    The Meeting is designed to bring together different organizations from South Asian Institutions, financial institutions, telecommunication policy makers, operators, and equipment manufacturers. The main purpose of the meeting is to develop a frame work of action in financing, regulations and resources mobilization strategies in the context of new technologies, changing regulatory environments for network development and multi media in telecommunications and specific requirements of different South Asian Countries. The meeting is also going to exchange views and address the sub-regional network developments, their expansion in forms of new services. The matters related with regulatory aspects, business and economy including new services like internet, electronics and International Mobile Telephone (IMT)-2000 are also expected to be covered.

    Delegates from Pakistan, Nepal, Bhutan, Bangladesh, Sri Lanka, Afghanistan, Iran and Maldives are going to participate to present the status of network technology and services and exchange views for introduction of new services in the South Asian Region.

    India is a member of the APT Committee. The current strength of the APT is 30. There are 4-associate members and 39 affiliated members. The Executive Director of the APT is Shri John Soo Lee.

    The APT established in 1979 is an inter-governmental body organised to serve the regional telecommunication needs. The APT's aims and objectives are to ensure plans, for development of telecom infrastructure and introduction of new services in the region at pace commensurate with its social economic development. It also serves as a consultative organisation for planning and operation, project implementation and settlement of other telecommunication vendors on the regional basis.

    Under APT's umbrella, Telecommunications National Working Groups were constituted for various sub-regions of the APT region. The first meeting for the Telecommunications National Working Groups for South Asia was held in Kathmandu.
 
 

    Internal security itself has many dimensions, starting with terrorism and militancy in Jammu & Kashmir to separatist insurgency and the threat from demographic changes in the North-East. There are the so-called ‘ideological’ movements to contend with, namely, Left-Wing extremism in Andhra Pradesh, the Greater Godavari Region and parts of Madhya Pradesh, and the caste-wars spearheaded by private ‘senas’ in Bihar. Combating cross-border terrorism, countering espionage and generally foiling external conspiracies aimed at destabilizing our border region, keeping up the efficiency and morale of the Central Police Organisatins, especially those units combating militancy and terrorism on our borders, engaged constant attention of the Ministry throughout the year.
 

Law and Order:

    The overall law and order situation in the country remained, by and large, satisfactory during the year under report, except for insurgent and militant activities in the North-East and Jammu and Kashmir, Left-wing extremist violence in parts of Andhra Pradesh, Bihar, Madhya Pradesh, Maharashtra and Orissa and caste and ethnic conflicts and communal tensions in certain States. However, fundamentalist mercenaries targeted Hindu families in the Kashmir valley and in Doda. Some incidents targeted against Christians also did take place in Madhya Pradesh, Gujarat and Orissa. Caste wars in Bihar took a considerable toll of lives. At the same time, there was a decline in communal violence and there was no large-scale sectarian flare-up in the country.
 

Jammu & kashmir:

    With an overall improvement in the situation prevailing in the State of Jammu & kashmir, the drive against militancy has entered a crucial phase. The valley, which was the militants’ main base and target, is comparatively quiet. Since the Lok Sabha and Assembly elections in 1996, the law and order situation has progressively improved. However, there has been considerable, if not corresponding, upsurge in militancy in Jammu region of the State which threatens to spill over to neighbouring States. There has been a significant change in the nature of militancy in the State; foreign mercenaries from across the border now dominate the scene, thereby giving Pakistan a stranglehold over prominent secessionist militant groups which are being used by ISI for extending the arc of militancy to Jammu and beyond.

    The four principles of Government’s policy vis-à-vis Jammu & Kashmir, being executed by the Union and the State Governments, are:

• Deepening of the democratic process.
• Isolation of the militants and foreign mercenaries from the people.
• Pro-active role within Jammu & Kashmir to neutralise the hostile designs of militants and foreign mercenaries.
• Galvanising the Development Programmes.

North-East:

    The North-East, with its plethora of ethnic groups, each asserting its identity obsessively has been a source of worry over the last fifty years. The seven states of the North-East have international boundaries with four foreign countries, China, Myanmar, Bangladesh and Bhutan. Though insurgency movements are seen in Nagaland, Assam, Manipur and Tripura, there has been deepening of democratic process in the entire region. There is a positive signal towards peace and dialogue from this area, as can be evidenced from the state of affairs in Mizoram which is one of the most peaceful states in the country today. A ceasefire between the Security Forces and the main insurgent group, the NSCN (I/M) prevailed for most of the year and a political representative, Shri Swaraj Kaushal, is holding talks with the NSCN on behalf of the Government of India. Despite the ceasefire, kidnappings and extortions by NSCN (I/M) slightly vitiated the atmosphere.

    The Central Government has taken a number of measures to curb insurgency in the North-East, these include:

• Declaration of major insurgent groups (such as National Socialistic Council of Nagaland, United Liberation Front of Assam, National Democratic Front of Bodoland, Bodo Liberation Tiger, the 5 Meitei Extremist Groups, All Tripura Tiger Force and Naitonal Liberation Front of Tripura) as ‘Unlawful Association’ under the Unlawful Activities (Prevention) Act, 1967.
• Declaring the most seriously insurgency-affected States/areas (namely, the whole Manipur, Nagaland and Assam, Tirap and Changlang districts of Arunachal Pradesh, 20 km belt from Assam in the neighbouring States and certain areas in Tripura) under the Armed Forces (Special Powers) Act, 1958.
• Deployment of units of Central Para Military Forces as well as Army in the insurgency-affected States.
• Reimbursement of security related expenditure of insurgency-affected States in the North-East.
• Construction of border roads and border fencing on Indo-Bangladesh border to check infiltration.
• Grants totaling Rs.144.30 crores by the Tenth Finance Commission to the North-Eastern States for Police Housing, Police Training, Police Telecommunications, construction of Police States/Outposts, repair and renovation of Jails etc.
• Upgradation of arms and ammunition, vehicles, communication and other equipments in the North-Eastern States.
• Mutual discussions and consultations with the Governments of Bangladesh, Myanmar and Bhutan on security matters of mutual concern.
• A package of initiatives, amounting to Rs.6133 crores for the development of the North-East which now stands at Rs.7865 crores following inclusion of certain additional schemes in the package (the package includes schemes for development of the North-East in priority sectors like Health, Education, Transport, Flood controls etc.

Punjab Militancy:

    Remnant of the Punjab militancy is largely sustained by terrorists based in Pakistan and some other countries. Visible improvement in the situation notwithstanding, Punjab remains vulnerable to sporadic terrorist action by the remaining militants who are under pressure from the Pak ISI to revive the separatist movement. Vigilance, therefore, is the key to preserving peace in Punjab.
 

Left-Wing Extremism:

    Left-wing extremism continues to remain a disruptive force in some parts of the country, especially Andhra Pradesh, Bihar, Madhya Pradesh, Maharashtra and Orissa. Andhra Pradesh and Bihar are the major theatres of Left-wing extremist activities, accounting for most of the incidents and casualties. Though in terms of the number of incidents, Left-wing extremist violence has shown a downward trend since 1996, the intensity of violence continues to remain high as reflected in the number of casualties.

    The Union Home Ministry took the initiative of convening a meeting of the Chief Ministers of Andhra Pradesh, Madhya Pradesh, Maharashtra and Orissa to review Left-wing extremist activities and the action being taken by the concerned States. As a result of the follow up action taken on the decisions arrived at in this meeting, the Ministry set up a Coordination Centre headed by the Union Home Secretary with the Chief Secretaries and Directors General of Police of these four States as its Members. Subsequently, representatives of the Government of Bihar were included in it. The States have been advised to prepare action plans for the integrated development of the affected areas and send these to the Ministry of Home Affairs, to be taken up with the Planning Commission for earmarking separate funds for the purpose. The requests for upgradation of equipment and weaponry and other security related needs of the Police Forces are being handled on priority basis. A scheme for reimbursement of security related expenditure to the concerned States is also under consideration.
 

Caste and Communal Violence:

    Caste rivalries have socio-economic dimension to them but something spill over into caste violence. Apart from Bihar, there were no major incidents of caste violence in the rest of the country. Major causative factors behind caste related incidents/tensions continue to be land disputes, atrocities against Scheduled Castes, molestation of Dalit women etc. The Ministry of Home Affairs has been interacting with the State Governments on a regular basis to help create adequate awareness among the States of the dimensions of internal security problems and foster greater coordination of efforts among the Central and State Governments.

    On the Communal front, there has been a marked decline in communal violence during the year 1998 as compared to the previous year. The year witnessed 626 incidents claiming 207 lives and 2065 injuries as compared to 725 incidents resulting in the death of 264 persons and injuries to 2503 as in the previous year. Except for Karnataka, Maharashtra and Rajasthan, which registered slight upswing in communal incidents, all other States reported a declining trend. However, Andhra Pradesh witnessed more deaths in 1998 as compared to previous year due to a major riot in Hyderabad. The Southern States are showing greater tendency to communal disturbances, particularly on account of manifold increase in activities of organisations like Al-Umma, TMMK, MIM, NDF, etc.

    In the year 1998, there were 84 incidents as against 30 incidents during the corresponding period of 1997. In a few cases the attacks were deliberate and dastardly, as the burning alive of Graham Stewart Staines and his two sons in Orissa would go to show. Certain religious organisations accused Christian missionaries of proselytisation activities, but this could in no way justify such ‘retaliation’. The Government has shown its determination to put down such incidents with a firm hand.

    ‘Public order’ and ‘Police’ being State subjects, it is for the concerned State Governments to devise various methods and take concrete steps to improve the law and order situation in the States. In the Ministry of Home Affairs, action is taken to facilitate coordination of anti-terrorist operations of different States and to improve the flow of information, useful for control of their activities, among the States.

    Further, help is being provided to the State Governments in terms of financial assistance for modernisation of Police, supply of improved weapons, deployment of Para Military Forces, etc. In certain special circumstances, financial assistance has also been provided to some of the affected States over and above the on-going allocations for modernisation of Police and the supply of weapons.
 

Policy Initiatives/Responses:

    Several other policy initiatives were taken to help serve the cause of peace and order, harmony and social progress in the country, some of the important ones being:

• reconstitution of the Inter-State Council in October 1998 and holding of the Fifth meeting of the Council on January 22, 1999;
• introduction of the Uttar Pradesh Reorganisation Bill, 1998, the Bihar Reorganisation Bill, 1998 and the Madhya Pradesh Reorganisation Bill, 1998 in the Lok Sabha in December, 1998;
• grants-in-aid to voluntary agencies with a view to promoting communal harmony, achieving national integration and strengthening bonds of unity and brotherhood in the country;
• circulation of guidelines to all States for promotion of communal harmony and protection of the interests of the minority communities;
• introduction of PIO (Persons of Indian Origin) Card scheme exempting the Card-holders from the requirement of visa and extending to them other benefits in the economic, educational, financial and cultural fields;
• introduction of the Explosive Substances (Amendment) Bill with a view to putting highly lethal explosives such as RDX, PETN, HMX and similar other explosives under ‘Special Category Explosive Substances’ and providing for enhancement of the maximum punishment for offences committed with such explosive substances;
• proposal for introduction of a Bill for amendment of the Indian Penal Code providing for capital punishment for rape;
• emphasis on protection of human rights of all people in the country; and
• impetus to the scheme of wire fencing and flood-lighting of borders to prevent cross border terrorism and smuggling of arms and drugs.

    The Annual Report of the Ministry of Civil Aviation states that in order to provide dependable and regular air services to some of the inaccessible and far flung regions in the country and to bring Civil Aviation within the reach of a large number of people, special efforts are being made for the integration of these areas into the airmap of the country. The upgradation of hinterland airports with suitable aircraft and a chain of aircargo complexes the agricultural, horticultural, aquacultural, floricultural produce can be airshipped to national and international markets helping in developing the trade and commerce potentiality of the country.

    Measures are being taken to rationalise the procedures laid down in the civil aviation sector. Emphasis is being laid on modernisation of fleet and equipment, keeping the International Civil Aviation Organisation standards in mind. To enable efficiency, capacity and safety for air transport operations, integration of air traffic control systems with a new global (Satellite based) Communication, Navigation and Surveillance/ Air Traffic Management (CNS/ATM) system is being considered.

    In order to review all the laws, regulations and procedures with a view to suitably re-orient and modify those which require changes, a committee under the chairmanship of Secretary (CA) has been constituted for reviewing the existing Statutes/Rules/Regulations concerning Civil Aviation Sector. It is proposed to amend/frame the Civil Aviation Act, the Airports Authority Act, the Carriage by Air Act and the Maintenance of Essential Aviation Services Act.

    Government of India has envisaged the restructuring of Indian Airlines through additional equity investment to the tune of Rs.125 crore. Phased disinvestment of 51% of equity over a period of 3 years is also mooted. Improvisation of services and facilities at all contact points is also being worked out. Indian Airlines earned a net profit of Rs.47.27 crore during 1997-98 compared to a net loss of Rs.14.59 crore during 1996-97. The Airline is expected to earn a profit of Rs.50.50 crore (prov.) during the year 1998-99 and is expected to carry 61.17 lakh (prov.) passengers and overall load factor is expected to be 62.7%.

    Air India’s an overall load factor stand at 63.4% during 1997-98 compared to 60.5% during 1996-97. Air India and Indian Airlines have established air-rail links between intercontinental destinations and the scenic places in India through a strategic alliance with Indian Railways.

    On the Airports Authority of India the reports states, that it is expected to earn a profit (after tax) of Rs.180.73 crore during 1998-99. The Airports Authority of India has taken up the task of development and modernisation of various airports and Air Traffic facilities in the country. A new terminal-1A at IGI Airport Delhi, which was built at a cost of Rs.26 crore, was commissioned. Two new aero-bridges were installed at domestic terminal at Hyderabad International airport. Modernised Air Traffic Services at Delhi at a cost of Rs.212 crore was commissioned. State-of-the-art radar at Calcutta, Chennai and Ahmedabad airports at a cost of Rs.82 crore and a new Instrument Landing System at Mangalore Airport at a cost of Rs.2 crore was installed.

    Pawan Hans Helicopters Limited is expected to earn a net profit of Rs.44.13 crore during 1998-99 compared to the profit of Rs.61.61 crore (prov.) during 1997-98.

    During the first eight months of the year 1998-99, 645 Pilot’s licences/ratings were issued bringing the total number of aircrew licences to 25,625.

    New Air services agreements were signed with Malta, Mongolia, South Africa and the Russian-Federation. 55 Aircraft were registered during the year 1998-99 till December 31, 1998 bring the total number of registered aircraft in the country to 1083 of which 469 Aircraft hold current Certificate of Airworthiness. All the aircraft in the country with the seating capacity of more than 30 passengers have been fitted with Airborne Collision Avoidance System ( ACAS).
 
 

    NERAMAC, was set up in Guwahati in 1982 with the main objective of undertaking marketing and processing of fruits and vegetables grown in the north-eastern region and the authorised share capital of the Corporation was Rs. 500 lakhs and a paid up capital of Rs. 369 lakhs. The Corporation’s turn over during April to December, 1998 was Rs. 87.49 lakhs as compared to Rs. 85.35 lakhs during the corresponding period of 1997-98.

    The Ministry of Food Processing Industries which acts as a catalyst for bringing in greater investment into the food processing sector has granted 3999 Industrial Entrepreneur Memoranda (IEMs) envisaging an investment of Rs. 46924 crore and direct employment of approximately 6.73 lakh persons since August 1991 till December 1998. About 39% of these investments are for backward areas. Of these, 646 IEMs envisaging an investment of about Rs. 7375 crore and direct employment of 81686 persons have already been implemented.

    During the same period, the Government has implemented 206 proposals of industrial licences and 100% export oriented units with an investment of Rs. 3836 crore and direct employment of about 86000 persons. As regards foreign investment proposals in the food processing sector, out of a total foreign investment of Rs. 8809 crores, in the food processing sector, the actual inflow till December, 1998 is over Rs. 1850 crore.

    The Annual Report further states that milk production during 1998-99 would be about 74 million tonnes as against 71 million tonnes during 1997-98 which will be a milestone in dairying. There has been an increase in the production of milk powder including infant milk food from 2.15 lakh tonnes in 1997 to 2.22 lakh tonnes in 1998. The estimated production of malted food product has increased from 55,000 tonnes in 1997 to 65,000 tonnes in year 1998. The estimated production of condensed milk has increased from 7800 tonnes in 1997 to 9,000 tonnes during 1998.
 
 

    The exports of readymade garments went up by 21.2 per cent (in rupee terms) and 7.1 (in dollar terms) during this period recording export figures of Rs. 20085.39 crores (US$4767.6 million). During the corresponding period in the previous year the exports of readymade garments stood at Rs.16575.94 crores (US$4451.6 million). Readymade garments are the most important constituent of the textiles exports from the country, as these comprise more than 40 per cent of our textiles exports. It may be mentioned here that textiles exports contribute more than a third to the total exports from the county. The target fixed for garment exports for the year 1998-99 was US$ 5900 million, 81 per cent of which has been achieved by the end of February this year, the provisional export figures reveal.

    Cotton textiles exports, which comprise 30 per cent of our textiles exports, have achieved more than 85 per cent of the stipulated target for the year 1998-99 which was US$ 4175 million. The cotton textiles exports recorded a growth of 9.8 per cent (in rupee terms) registering exports figures of Rs 14959.50 crores during the period April’98-Feb’99 as against Rs 13619.73 crores during the corresponding period in the previous year. Of the total cotton textiles exports, cotton fabrics & made ups (including handlooms) constitute 60 per cent and cotton yarn 40 per cent.

    Handicrafts exports for the period were to the tune of Rs 6517.62 crores (US$ 1552 million) as against Rs 5660.19 crores (US$ 1536.8 million) during April’97-Feb’98, thus registering a growth of 15.1 per cent and achieving more than 75 per cent of their targetted exports of US$ 2035 million for the year 1998-99. Handicrafts exports comprise about 14 per cent the total textiles exports from the country.

    It may be mentioned here that, the Ministry of Textiles, in the past one year, had taken a number of steps to arrest the decline in the textiles exports which have begun to show positive results. These include:

• The threshold limit for availment of zero-duty EPCG Scheme has been lowered from Rs.20 crores to Rs. 1 crore for the garment sector.

• Threshold limit for zero-duty import of garment machinery for exports reduced to Rs 1 Crores from Rs 20 Crores.

• A high level committee on redressal of grievances of exporters constituted under the chairmanship of Secretary (Textiles).The Committee has been taking up issues inter-alia including DEPB matters , Duty Drawback matters, Anti-dumping issues, Anti-subsidy action against Indian exports etc.
• A simplified Electronic Transfer Scheme (ETS) for garment exporters has been introduced to ensure availability of quota to needy exporters at a reasonable price. Garment exports crossed the US$ 5 billion mark in the year 1998 as result of consistent efforts of the government.

• To facilitate access to duty-free inputs, standard input-output norms for about 300 textile and clothing export products have been prescribed.

• The facility for duty-free imports of all types of trimmings and embellishments is now available for textile exporters.

• EOUs producing cotton yarn given flexibility to export such yarns without any domestic use/count restrictions.

• Decision taken to simplify the pre-shipment inspection procedure of silk by Central Silk Board by its integration with the customs.

• Cotton yarn exports were de-linked from the requirement of fulfillment of hank yarn obligation, without changing the level of obligation, to boost exports.

    In November, 1998, due to an urgent demand from Delhi Division, 16 high speed Shatabdi-type bogie frames were manufactured in the Workshop.These were developed from their own indigenous material. The workshop meets regular demands of RCF for certain specialised items like pivot, roll bar and forks. These are used in the Swarna Shatabdi coaches.

    Amritsar Workshop was set up by the Punjab Government in 1901 and in 1942, it was handed over to the Defence Department. In 1947, it again came under the State Government for meeting the requirement of Bhakra Nangal Project. Since 1956 it was taken over by the Northern Railway which uses it as a locomotive Workshop.
 
 

    Earlier on 8^th January, 1999 the Department of Culture, Ministry of Human Resource Development had notified amendments to the Constitution of the Akademi. This was subsequent to the decision taken by the Department to return the administration of the Akamedi to the artists themselves; by conducting elections, of Members to the General Council of the Lalit Kala Akademi, from among the artists themselves.

    The amended Constitution provides for 15 persons to be elected by the constituencies described as Constituencies of Artists. These constituencies comprise Recognised Artists, Fellows of the Akademi and Eminent Artists who are entitled to stand for elections and also have the power to vote. It also comprises of Eligible artists who are entitled to stand for elections but cannot vote. The Constitution of the Akademy also provides for the delimitation of constituencies into minimum 5 or maximum 15. In the absence of the Chairman, under provisions contained in the amended Constitution of the Akademi, the Government has appointed an Election Officer and nominated an Additional Election Officer to conduct the elections.

    After incorporating correction in addresses receipt, on the basis of strength of voters in each State/Union Territory, the voters have been delimited into the 15 artists constituencies. The polling stations for the elections will be Delhi, Calcutta, Shantiniketan, Guwahati, Imphal, Mumbai, Nagpur, Chennai, Hyderabad, Thiruvananthapuram, Bangalore, Ahmedabad, Vadodra, Bhopal, Bhubveshwar, Patna, Lucknow, Varanasi, Jaipur, Udaipur, Chandigarh and Jammu. The total number of voters is expected to be 1324.
 
 

    The country papers are expected to cover a wide range of issues like emerging roles of teachers, problems of elementary education with special reference to poor enrollment of girls, socially disadvantaged and economically deprived sections and their implications to teacher educational, quality in elementary and its implications for teacher education, the problem of drop outs in elementary education and its implications for teacher education, inadequate availability of infrastructure and innovative programmes in teacher education.

    The objectives of the Conference are the sharing experience on elementary teacher education, designing collaborative projects related to teacher education programmes, practices, policies and curriculum renewal/revision.

    They would be deliberate on issues relating to quality girl education and its implications for teacher education, teacher development strategies – pre service and in-service, information technology and alternative systems of teacher education, teacher performance : management and financial issues, future vision.

    Eminent resource persons will be initiating discussion on a number of themes – issues in elementary education – implications for teachers, pre-service teacher education – case for transformation, teachers for alternative schooling, in-service education-search for modalities, essential competencies for teachers of UEE, teacher commitment-strategies for strengthening, teacher performance-management issues, innovative experiences in teacher preparation, information technology in teacher education, future vision and potentialities, collaborative projects.
 
 

    Today, India is in a position to meet 70% of the country’s requirement of bulk drugs and almost all the demand for formulations. There are about 250 large units and about 8000 small scale units in operation (including 5 Central Public Sector Units) which form the core of the industry. These units produce a complete range of formulations i.e. medicines ready for consumption by patients and about 350 bulk drugs i.e. chemicals having therapeutic value and used for production of formulations.

    According to the Report, during 1998-99 several proposals for foreign collaboration for joint ventures, research and development, establishing new undertakings/expansion of existing units (manufacture of new articles in the existing units) have been received. Upto October 98, as many as 67 IEMs were filed by pharmaceutical companies for production of various bulk drugs, formulations and intermediates. These IEMs would generate employment to approximately 10178 people and there would be an investment of approximately Rs.352 crore on these projects. During the same period, foreign investment proposals worth approximately Rs.443.32 crores were approved.

Pharmaceutical exports up

    During April 1997 – March 1998, total exports of pharmaceuticals (excluding Castor Oil) amounted to Rs.4978.00 crore which was 21.70% higher than the performance during 1996-97 (Rs.4090 crore). Of this, export of formulations was of the order of Rs.2805 crore which is higher by 11.78% over the achievement during the previous year (Rs.2509.2 crore). Regarding bulk drugs, the exports were of the order of Rs.2173.00 crore – an increase of about 37.44% over the last year(Rs.1581 crore).

    During the first 5 months of 1998-99 also, the export performance has continued to be encouraging. Exports of bulk drugs in this period were worth Rs.1056 crore against Rs.691.40 crore during corresponding period of previous year. Finished formulations worth Rs.1341.50 crore compared to 1092.5 crore in previous year were exported in the said period. Overall there was a growth of more than 34% in exports valued at Rs.2397.50 crore of Pharmaceuticals during April-August 1998 against Rs.1783.90 crore during April-August of 1997.

Medicine availability ensured

    There have been no reports of shortage in recent years. As already indicated, the country is almost self-sufficient in case of formulations required by the consumers. It may also be mentioned that Industrial licensing has been done away with. The manufacturers are free to produce any drug duly approved by the Drug Control Authority except for a few items reserved for Public Sector Units. Additionally almost all drugs are allowed to be imported under Open General Licence. In view of these steps no shortage of medicines is likely to occur. Imports can take place from any part of the world – there being no general restrictions. As per DGHS data bulk drugs worth Rs.430 crore and formulations worth Rs.1827 crore were imported in 1997-98 against imports of Rs.345 crore and Rs.1705 crore respectively in 1996-97.

Thrust to export promotion

    An Export Promotion Cell in the Pharmaceutical Division of the Deptt. of C&PC has been created with the objective of boosting pharmaceutical exports and to act as a nodal centre for all queries/issues regarding pharma exports. The Cell also undertakes promotional activities for acceleration of pharma exports and consider suggestions for modifications in EXIM policy from the Industry.

    In order to give adequate attention to day-to-day problems faced by the exporters, the cell interacts with various Ministries/Departments and Indian Missions abroad. The cell collects statistical data on export and import of pharmaceuticals in the country and provides commercially useful information for developing and increasing drugs and pharmaceutical exports. The cell also organises seminars and workshops on standards, quality control requirements etc. of important countries so as to prepare the domestic companies for exporting their products.

NPPA initiatives to rationalize prices

    According to the Report, the National Pharmaceutical Pricing Authority (NPPA) established to enforce the provisions of the Drugs (prices control) Order (DPCO) and to perform the functions assigned, initiated several actions/steps upto middle of November, 1998.

    It revised/fixed the prices of 12 bulk drugs and 635 formulation packs. NPPA has prescribed that the prices of tablets and capsules of all the scheduled formulations in different pack sizes should be worked out on pro-rata basis taking into account the latest ceiling price fixed by NPPA. This rationalisation was done to prevent bids to remain outside price control and to reduce frequent references to the government/NPPA for price approvals.

    In the interest of general public, NPPA also rationalized the prices of three commonly used IV Fluids which were otherwise outside price-control. These prices are now lower by about 40% than the prices charged earlier by the companies.

    To keep a check on the prices of drugs, besides advising the state government to enforce the prices of scheduled formulations, NPPA held meetings with the Drug Controllers of several states. NPPA advised the States and Union Territories to nominate/set up nodal officers/monitoring cells to enforce/monitor the prices and availability of medicines. Accordingly, so far, in the States of Rajasthan, UP, Karnataka, Andhra Pradesh, Gujarat, Madhya Pradesh and Sikkim nodal officers/cells have already been nominated/set up.

    It also pursued overcharging cases vigorously and as a result, to begin with, the concerned companies agreed to deposit an amount of Rs. 2.55 crore in the court/government.

Drug Price Equalization Account

    The Department has referred 72 important assessment cases involving an amount of Rs.220 crore to the Drug Prices Liabilities Review Committee (DPLRC). The Committee has already furnished its recommendations in 24 cases involving liability of Rs. 90 crore to the Department. The Department is taking further action on the recommendations of the DPLRC to recover the amount. However, some companies have again gone to the Court. The Committee has put into motion the process of hearing in all other cases by issuing notices to them. Adequate opportunity is being given to the parties to present their point of view and after hearing, it is giving its recommendations in individual cases to the Department.

    Till date, an amount of Rs.22.50 crore has been deposited into the Drug Prices Equilisation Account by the Pharmaceutical companies. The tenure of the DPLRC has been extended upto June, 1999.

CHEMICALS

    The production of Chloralkali Chemicals, viz., soda ash, caustic soda and liquid chlorine registered increase during 1998-99 over previous year. The estimated production of these chemicals during 1998-99 is 3595000 metric tonnes against about 3557900 metric tonnes in previous year. Similarly production of inorganic chemicals too has been estimated higher at 350800 MT against 332700 MT in 1997-98. The important chemicals in this category are carbon black, calcium carbide, etc. As regards organic chemicals like acetone, acetic acid, citric acid, phenol, methanol etc., the production however, is estimated to be slightly less at 1033500 MT against 1075300 MT in previous year. There is expected to be reversal in the trend in 1999-2000 when production of these chemicals is anticipated to be at 1096000 MT.

    In the case of technical grade pesticides the estimated production recorded a growth and reached 84700 MT in 1998-99 against 80900 MT in 1997-98. It is further anticipated to grow to 92900 MT in 1999-2000.

    Despite tough market conditions in the chemicals sector, the production of dyes and dyes stuffs also recorded an increase. It’s estimated production during 1998-99 is 42620 MT against 41940 MT in previous year and is likely to reach 45230 MT in the ongoing financial year.

Export of chemicals

    The Annual Report states that there has been a steady growth in the exports of chemicals over the years. The exports of dyes and dye intermediates was worth Rs.2228 crore in 1997-98 which is higher than exports of Rs.1944.8 crore in 1996-97. Similarly, the exports of basic organic and inorganic chemicals including agro-chemicals was more at Rs.2195 crore in 1997-98 agianst Rs.2081.5 crore in the previous year.

Safety and environment protection on priority

    Safety, health and environment protection are the key concerns for the chemicals industry. Along with modernisation to improve the operating efficiency of the plants and energy conservation, safety in operations, health of the workers engaged in the processing industry as well as environment concerns are the prime need of the hour. Management of toxic chemicals is also receiving increasing attention. In the manufacture of caustic soda, more and more units are shifting to the membrane cell technology. Over 55% of the total installed capacity in caustic soda manufacture is now based on the membrane cell technology which is a much cleaner technology.

PETRO-CHEMICAL INDUSTRY

    Despite general economic slow-down and the adverse impact of economic crisis in South-East Asian countries on Indian petro-chemical sector, there has been a significant growth in the production of major petro-chemicals in the country. The estimated production of major petro-chemicals during 1998-99 is 3855000 MTs against 3562000 MTs in 1997-98. Of these synthetic fibres constitute 1350000 MTs against 1246000 in previous year, polymers 2200000 MTs compared to 2016000 MTs, synthetic Rubber 65000 MT against 62000 MTs and Synthetic Detergents 240000 MTs as against 238000 MTs in 1997-98.

    The Annual Report underlines the resilience of domestic petro-chemical sector in the face of lowering tariff barriers and fierce international competition. It has embarked on acquiring state-of-the-art technology and is producing international standard petro-chemicals. The exports of about 225000 MT of petro-chemicals in 1997-98 bear testimony to this.

    With the initiation of liberalisation process, the economy is growing at a rapid pace, therefore, demand of petrochemicals is expected to grow significantly in the future. To meet the growing demand massive investments are underway. Two gas based crackers of IPCL & GAIL, each with isntalled capacity of 3 lakh tons of ethylene, has been commissioned in 1998-99, which will result in significant increase in production of polymers.

    Besides, to meet the fast growing demand of petrochemicals, the Government has sanctioned several mega petrochemical complexes. These include Haldia Petrochemicals Complex project and permission toNOCIL for expansion of capacity. In addition, LoIs have been issued to several State Industrial Corporations for setting up Naphtha Cracker projects.

    With the increase in consumption of plastics in the country, plastic waste generation is bound to increase in the coming years. The Department of Chemicals & Petro-Chemicals is actively cooperating with other agencies and trying to devise strategy for management of plastic waste.

SUCCOUR TO BHOPAL GAS DISASTER VICTIMS

    Of over ten lakh claims registered, nearly 7.5 lakh cases have been decided till December 31, 1998. Out of about 1100 crore awarded, about 1000 crore have been disbursed. It is expected that all the claims filed will be disposed of by the year 2000. It may be recalled that vide a notification issued in December 1996, the Government had extended another opportunity to those persons who had not filed their claims earlier. Various relief and rehabilitation measures were undertaken by State and Central Government following the leakage of lethal gas known as Methyl Iso-Cyanate (MIC) from the Union Carbide factory at Bhopal. The leakage caused death and injury to a large number of people in Bhopal city.

    To ensure that all the rehabilitation schemes under Action Plan are completed, the Action Plan period was extended upto September 1998 and the outlay was raised to Rs. 258 crore. It has been decided that for subsequent maintenance and recurring expenditure in respect of all the schemes, the State government would make appropriate provision in their Annual Plan. The Union Government is committed to meet its share of 75% of the outlay.

    As per the directions of the Supreme Court, a new Trust, named the ‘Bhopal Memorial Hospital Trust’ has been set up under the chairmanship of retd. Chief Justice of India, Mr. A.M. Ahmadi in August’ 98 to oversee the construction, equipping and management of the speciality hospital. The Trust held its first meeting on 12^th August, 1998. The funds of the Bhopal Hospital Trust, London, have been transferred to the new Trust as per directions of the Supreme Court.
 
 

The government is also exploring possibilities of increasing tobacco exports to Russia under the debt repayment route. The Reserve Bank of India (RBI) has also been requested to advise banks to extend additional credit to manufacturers/traders of tobacco to help manufacturers/traders to continue their purchases till the export situation improves. Cigarette manufacturers, who are the major tobacco purchasers, have also been asked to fulfil their indent commitment given by them to Tobacco Board at the beginning of the planting season.