Shri Fernandes remarked that India had emerged as a strong nation with regard to defence capabilities after POKHRAN-II nuclear explosions and the test firing of AGNI-II. We have said categorically that the signing of the NPT or the CTBT would be subject to the world accepting that India’s security concerns have to be met in a transparent manner, he said.

    Shri Fernandes emphasised the need to sort out disputes through dialogue. Threat perceptions are not permanent but undergo constant changes, he said. He referred to the Sino-Indian dialogue currently underway with both sides underlining the need to settle the issues through dialogue. According to him, talks between India and Pakistan also took a decisive turn after the POKHRAN-II and Pakistan’s nuclear explosions with both countries having demonstrated their nuclear weapons capability.

    Shri Fernandes underlined the linkages between the internal and external security. Economic conditions and the employment situation are the key issues, be it in Jammu and Kashmir or the North-East, he said. The Defence Minister said India had not harboured aggressive designs on any country and our culture, philosophy and history were rooted in peaceful intentions.

    Speaking about the possibilities of involvement of the private sector in defence, Shri Fernandes informed the gathering that several defence laboratories have been opened for use by the private sector. He indicated that the manufacturing work on the Air Defence Ship would start in about one year’s time and would provide opportunities for the private sector also.
 
 

    The Finance Minister told the gathering that if there are any doubts in the minds of people about the capacity of Government in implementing decisions they are misplaced and the BJP led coalition Government has no hesitation to implement policies with honesty and utmost sincerity. He said, the necessary clarifications and notifications concerning the Budget provisions would be carried out although the reform bills like IRA Bill, FEMA Bill etc. have to wait till the constitution of new Lok Sabha. Unveiling the contours of second-generation reforms Shri Sinha said that a comprehensive paper is being prepared and would be before nation for a debate and discussion. He said the first generation of reforms had some inadequacies like ad-hoc measures, sequencing of reforms and the implementation process.

    Shri Sinha said the second generation reforms will be a comprehensive document which provides a road map for the country's economy for the coming 10-15 years. Shri Sinha said the major provisions of second generation reforms include; fiscal reforms, zero based budgeting, expenditure reforms, rationalisation of taxes, bringing tariffs to Asian levels, moving foreign direct investment to automatic route, cost based pricing of infrastructure and setting up strong regulatory authorities.

    The Finance Minister also said that there is a need for a competitive policy, banking reforms, administrative, legal and labour reforms and devolution of powers to Panchayati Raj institutions. Answering questions from audience, Shri Yashwant Sinha said that there are no differences either in the party or in the coalition partners on economic issues. He said the Government continues to function effectively and work towards restoring the "feel good factor" among the business communities. He also said that a process had been initiated regarding financial reforms of the Sates and a number of memoranda of understanding are being signed with the States as part of the process of national fiscal correction.
 
 

Amount of Loan

The assistance will be need-based subject to the attainment of minimum economic size.
 

Promoters’ contribution

Minimum of 20% of the cost of the scheme.
 

Rate of interest

Rupee Loan

Loans under TUF shall carry interest at normal applicable rates of the lending institutions prevailing at the time of sanction/execution of loan documents. Ministry of Textiles, Government of India will provide interest reimbursement of 5% p.a. which would be credited to the loan account of the borrower availing of assistance under TUF.
 
• Foreign Currency Loan

    Interest reimbursement of 5% as also cover for exchange fluctuation will be available during the period of loan as specified in the Letter of Intent or as may be specified in the loan document. In case of subsequent extension of the repayment period, no incentive towards interest/exchange fluctuation will be available for the extended period.
 

Upfront fee:

1.05% of the amount of the loan.
 

Period of Loan

    First charge on fixed assets. Additional security, such as personal/other guarantees and/or pledge of promoters’ shareholdings might be stipulated by the lender, if consider necessary.
 

Conversion option

Not applicable, except in case of defaults.
 

Debt-equity Ratio

1.5:1 relaxable in exceptional cases.
 

Management

    One of the main requirements for sanction of assistance under the TUFS will be the availability of competent management to the unit concerned to carry out the project implementation and also to manage the operations of the unit efficiently. Towards this end, IDBI may stipulate conditions relating to broad-basing of the Board, appointment of senior technical/financial executives, professionalisation of the management and constitution of such committees as may be considered necessary.
 

Working capital requirements

    Since the success of the project would crucially depend upon the availability of adequate working capital to achieve the full benefit of the modernisation programme, IDBI would like to be assured that the units have made adequate arrangements with their bankers for meeting working capital requirements at reasonable rates of interest.
 

Role of nodal agency

• Receipt of application;
• Processing and sanctioning of loan assistance;
• Attending to disbursement and other matters;
• Setting up of a separate cell for TUFS; and
• Furnishing information to Textile Commissioner periodically.

General

    Applications for assistance under the TUFS from non-SSI undertakings may be submitted in the prescribed form available from IDBI/ICICI/IFCI/IIBI. The applications duly completed (5 copies) may be submitted to any one of the four institutions either at their Head Offices or Zonal/Branch Offices.

    Every effort will be made to process applications and sanction assistance applied for as expeditiously as possible. As a general rule, IDBI endeavours to sanction assistance sought for within 2 months from the date of receipt of complete information.
 
 

    The estimated production of fertilizers during March 1999 was 2.95 lakh tonnes of phosphates as against the target of 2.66 lakh tonnes and 8.38 lakh tonnes of nitrogen as against the target of 9.25 lakh tonnes. Production in the fertilizer plants at Hazira and along HBJ pipeline was affected on account of maintenance shutdown taken by ONGC. Production at Rashtriya Chemicals & Fertilizers Ltd., Thal was affected due to reduction in gas supply even after the completion of shutdown in the Uran region. There was a shortfall in production at urea plant of Fertilizers and Chemicals, Travancore Limited, Namrup-III plant of Hindustan Fertilizer Corporation Limited and Gujarat Narmada Valley Fertilizers Company Limited, Bharuch due to equipment problems. DAP plant of Hindustan Lever Limited was under shutdown due to hook-up of Expansion plant.

    Capacity utilization in March 1999 was 95.6% for nitrogen and 111.8% for phosphate.

    The requirement of urea during March 1999 as well as the entire Rabi 1998-99 season has been met fully in all the States except Tripura. In the case of Tripura, the lifting of urea by the State institutional agency, the sole distributor in the State, was poor due to less demand. The State Government has not reported any shortage of urea.

    During March 1999, 15.47 lakh tonnes of urea was despatched to the States against the target of 15.00 lakh tonnes. As a result, cumulative availability of urea during Rabi 1998-99 season was 124.09 lakh tonnes. This constitutes 108% of the revised estimated requirement of 114.76 lakh tonnes for the season. (The assessed requirement of 115.76 lakh tonnes for Rabi 1998-99 was reduced by 1 lakh tonnes as the State Government of Rajasthan had surrendered one lakh tonne of allocation due to poor off take of urea). However, the sales of urea upto 15^th March 1999 have been 3%higher over sales during the previous year in the same period.

    For Kharif 1999 the assessed requirement is 106.19 lakh tonnes. No problem is envisaged in meeting the requirement of urea during Kharif 1999 season.

    The cumulative availability of DAP & MOP during the Rabi season has been higher by 24% (36.64 lakh tonnes) and 50% (18.76 lakh tonnes), respectively. Similarly, the cumulative sales of DAP and MOP upto 15^th March 1999 have been up by 27% (26.55 lakh tonnes) and 40% (13.94 lakh tonnes), respectively.
 

FERTILIZER IMPORTS

    During the month under review, there have been no further imports of urea. The cumulative deliveries of urea have been 5.57 lakh tonnes during April-March 1999.

    A quantity of 0.62 lakh tonnes of imported DAP and 1.35 lakh tonnes of MOP arrived during March 1999. The cumulative arrivals of DAP & MOP during April-March 1999 have been 21.05 lakh tonnes and 25.70 lakh tonnes respectively.

    The average daily loading of fertilizers by rail during March 1999 was 3033 equivalent BG wagons per day as against 2997 BG wagons per day in the corresponding period of last year.
 
 

    Marketing efforts are being intensified through offering customer friendly services on both passenger and freight businesses to wean away traffic from other modes. The State Governments who are equity partners are being requested to issue instructions for moving all important construction material like steel, cement, bitumen etc. in bulk by Konkan Railway in the West Coast Districts.

    Konkan Railway Corporation which had an option to float the bonds for 10 years, initially issued the bonds for a period of 5 years keeping in view the marketability of the instrument at that time. Now the Corporation has approached the bond holders whether they would like to avail of the remaining 5 year period. The Corporation has given them the first opportunity to avail of this benefit which gives an attractive return in the market.
 
 

    Speaking on the occasion Shri Naqvi further said that the participants at the seminar have to deliberate and sharpen their focus so as to reach broad conclusion on technology. The conclusion should reflect on not only on signal performance but also on the minds and hearts of the people, programming and the limits to which it can be allowed to portray sensitive themes. He stressed the need for evolving a mechanism to create a fine balance between technological enhancement and national sensibilities.

    Addressing the delegates, Shri Naqvi said on the one hand we are hearing the intense cries against cultural pollution, degradation of India’s heritage and tradition, portrayal of excessive sex, violence and crimes against women particularly on the electronic media. On the other hand, are equally fervent appeals for upgrading the transmission and broadcasting networks of the country by introduction of DTH, MMDS, fibre optics and internet convergence. The ‘Broadcasting Bill’, for political and other reasons has failed to see the light of day despite the fact that the present Government has been committed to tabling this Bill in the Parliament, pointed out the Minister.

    The seminar was organised by the Programme Staff Association of AIR and Doordarshan during its 22^nd National Convention here today.
 
 

    Stating that nations make crucial decisions when momentous changes take place in their environment, Shri Jagmohan urged the countries of South Asia to develop strong institutions with incisive vision and perspective for the progress and advancement of their people. They should not be swept away by the strong winds of technological changes that has gripped the region, he added. The Minister said that every institution has its body, mind and soul. While the structure of most institutions are alright, it is the mind which means the spirit, attitude and motivation that is most important for the success and functioning of the institution. He said that the soul of the institution is nothing but its conscience and unless we operate the provisions of the institution with unquestionable conscience and righteous attitude, we shall only be creating mere information based technological society and not a wisdom based society.

    Shri Jagmohan emphasised that the most important issue before us is that whatever changes we want to bring about, they should not be imitative but innovative and creative. He said that we should give serious attention to not only to technological development and physical infrastructure but also elevate the architecture of our mind and serve it with pure means and noble values. This is specially true in the context of so called globalisation, marketisation and liberalisation where it is imperative to bring about a just, fair, and equitable world, he added.

    Delivering the key-note address, the Chairman, TRAI, Justice S.S.Sodhi said that there is a need to strike a balance between allowing the market a free rein and intervention through regulation to ensure the realisation of public policy goals of universal service and affordability. He said that an unsupervised market may lead to wastage of scarce resources with short term benefits being looked for at the cost of long term gains.

    Stating that competition has proved itself to be the best way to promote efficiency, attract capital, create options and lower prices, Justice Sodhi said that it is incumbent for a regulatory body to step in to ensure a level playing field for all and above all to safeguard the interests of the users of the telecommunication services.

    Justice Sodhi said that in the South Asian Region, Regulatory Authorities are entities of recent origin and as such the development of these authorities needs to be nurtured. This requires the understanding from and an helping hand of governments, he added. Emphasising that a regulator must inspire confidence and respect through its objective, efficient and transparent approach, coupled with high level of integrity, Justice Sodhi pointed out that Indian legislation fulfils these requirements and provides adequate safeguard, independence, powers and functions to the TRAI alongwith its accountability to the Parliament.

    The Chairman said that there is a great deal of similarity and convergence of regulatory issues in both developed and developing markets. Drawing attention to the fact that parallel trends of harmonisation of regulatory framework based on common principles appears to have been set in motion, he said there is a need for SATRC to evolve a suitable structure of its own for harmonisation of the regulatory issues concerning this region.

    The two-day SATRC meeting is being attended among others by member countries of the APT from the South Asia region, which include Afghanistan, Bangladesh, Bhutan, India, Indonesia, Iran, Maldives, Nepal, Pakistan and Sri Lanka as also representatives of the Service Providers, the APT and the International Telecommunication Union (ITU). During the meeting, Sub-Regional Regulatory issues pertaining to Quality of Service and Performance Indicators, Tariffs, Inter-connection, Number Plan etc. would be discussed.

    Establishment of SATRC as a Regulatory Forum has been the outcome of discussions held at ITU Regulatory Forum for South Asian countries at Maldives in October 1996. SATRC was formally constituted in May 1997 at Nepal. The first meeting of the Council was held in Colombo in May 1998.
 
 
 

    Seventy-nine exploration tours to inventorize and monitor the phytodiversity and bio-reserves of various eco systems, fragile eco systems and protected areas were undertaken, by the Botanical Survey of India (BSI). About 11,790 plant specimens were identified. To provide more information about the economic potentiality of phytodiversity of different phytogeographical regions studies were conducted in the states of Tripura, Assam, Orissa and West Bengal.

    The Zoological Survey of India (ZSI) conducted 68 surveys covering various eco-systems and conservation areas. The Forest Survey of India (FSI) has now completely switched over to the Indian Remote Sensing Satellite (IRSS) for the assessment of forest cover. The total forest cover has been estimated to be 63.34 million hectares which is 19.27 percent of the geographical area of the country. Dense forest (with a crown density of more than 40 percent ) occupy about 11 percent and open forest (with crown density between 10 percent and 40 percent) occupy about 8 percent of the geographic area. Mangroves occupy about 0.15 percent. The country has lost about 5,482 Sq. Kms of forest cover since the 1995 assessment.

    The first National Report on Biodiversity was released by the Ministry in December 1998 on the occasion of the International Day for Biodiversity. To streamline the process of compensatory afforestation in the states the proposal for special fund is under active consideration. In another innovation is under active consideration of the Ministry, by which Project Authorities seeking forest clearance will deposit the cost of afforestation to a special fund. This fund will be released to the State Forest Departments on the pattern of Central Sector Afforestation Scheme.

    During the year the expert committee on environmental impact assessment was reconstituted, and Coastal Zone Authorities were set up at both national state/union territory levels. The objective of these authorities is to take measures for protecting and improving the quality of the coastal environment.

    An Environmental Action Plan is being devised which envisages implementation of various pollution control measures in time bound manner at religious places. A draft action plan for control of pollution in Mumbai region was also prepared by the Central Pollution Control Board (CPCB).

    During the year various measures recommended in the White Paper on pollution in Delhi with an action plan were implemented. The Ministry notified the specifications of two-stroke engine oil. Premixed fuel (petrol and oil) from petrol stations was made compulsory and a ban plans on loose 2-T oil in petrol stations and service garages was implemented.
 
 

    A for Touring Officers Guest Houses there are 35 suits in Delhi, 52 in Calcutta, 30 in Mumbai, 31 in Chennai, 5 at Bangalore, 4 at Trivandrum and 4 at Lucknow. These suits are administered and managed by the Directorate of Estates and Central Public Works Department.

    As for Holiday Homes, there are 103 suits at Shimla, 22 suits at Kanyakumari, 2 at Amarkantak and 12 at Mysore.

    The accommodation in these suits is available to Members of Parliament, Central Government employees, and others accompanying them as well. The Central Government employees can book these accommodations in advance . The charges for accommodation per day range from Rs.15, Rs.40 and Rs.50 for doormitary type, double bed, three or four bed suits respectively. The charges for State Government employees or for public sector undertaking employees vary from Rs.25 to Rs.100 and Rs.145 respectively. Similarly, for others accompanying the government employees or MPs, the charges vary from Rs.65, Rs.165 and Rs.245 respectively. These accommodations can be booked in advance of two months or one month. The booking authorities are the Directorate of Estates, Nirman Bhavan and the Offices of Executive Engineers, Central Public Works Department for Touring Officers Guest Houses as also for Holiday Homes. The procedure of booking together with booking forms is available with the Administration wings of all the Ministries, Departments, attached, subordinates, public sector undertaking offices of the Government of India.

    Similarly, accommodations for touring officers of Railways are available at Zonal and Divisional Headquarters of Indian Railways and at State Capitals and District Headquarters for the officials of the Ministry of Communications in relation to the Department of Posts and Department of Telecommunications.
 
 

    As in the past, Punjab contributed the maximum with 59.23 lakh tonnes and Haryana followed suit with 32.28 lakh tonnes as on date.

    The stock position of wheat with the centre is comfortable at present with 99.21 lakh tonnes as against a bumper norm of 40 lakh tonnes as on April 1. The centre has lifted stock limits restriction on storage of wheat and wheat products by traders, roller flour mills and cooperatives in view of the comfortable food stock position, besides releasing one million tonnes of wheat under open sale scheme by the FCI directly.

    Food and Civil Supplies Department of the Ministry of Food and Consumer Affairs has made elaborate arrangements for transportation and storage of the procured foodgrain stocks. Additional storage space is being identified all over the country for the purpose. It has been decided to transport about 13 lakh tonnes of wheat per month from the procuring centres to other areas.

    According to Shri R.S. Mathur, Secretary, Food and Civil Supplies, the central government is committed to ensure that the farmer gets the minimum support price for his produce and that there is no distress sale. The centre with the help of state governments and their agencies has procured about 97% of the total market arrivals of wheat during the current marketing season.
 
 

    This is the highest ever turnover in the 30-year history of the Company.
 
 

    The estimated production of fertilizers during March 1999 was 2.95 lakh tonnes of phosphates as against the target of 2.66 lakh tonnes and 8.38 lakh tonnes of nitrogen as against the target of 9.25 lakh tonnes. Production in the fertilizer plants at Hazira and along HBJ pipeline was affected on account of maintenance shutdown taken by ONGC. Production at Rashtriya Chemicals & Fertilizers Ltd., Thal was affected due to reduction in gas supply even after the completion of shutdown in the Uran region. There was a shortfall in production at urea plant of Fertilizers and Chemicals, Travancore Limited, Namrup-III plant of Hindustan Fertilizer Corporation Limited and Gujarat Narmada Valley Fertilizers Company Limited, Bharuch due to equipment problems. DAP plant of Hindustan Lever Limited was under shutdown due to hook-up of Expansion plant.

    Capacity utilization in March 1999 was 95.6% for nitrogen and 111.8% for phosphate.

    The requirement of urea during March 1999 as well as the entire Rabi 1998-99 season has been met fully in all the States except Tripura. In the case of Tripura, the lifting of urea by the State institutional agency, the sole distributor in the State, was poor due to less demand. The State Government has not reported any shortage of urea.

    During March 1999, 15.47 lakh tonnes of urea was despatched to the States against the target of 15.00 lakh tonnes. As a result, cumulative availability of urea during Rabi 1998-99 season was 124.09 lakh tonnes. This constitutes 108% of the revised estimated requirement of 114.76 lakh tonnes for the season. (The assessed requirement of 115.76 lakh tonnes for Rabi 1998-99 was reduced by 1 lakh tonnes as the State Government of Rajasthan had surrendered one lakh tonne of allocation due to poor off take of urea). However, the sales of urea upto 15^th March 1999 have been 3%higher over sales during the previous year in the same period.

    For Kharif 1999 the assessed requirement is 106.19 lakh tonnes. No problem is envisaged in meeting the requirement of urea during Kharif 1999 season.

    The cumulative availability of DAP & MOP during the Rabi season has been higher by 24% (36.64 lakh tonnes) and 50% (18.76 lakh tonnes), respectively. Similarly, the cumulative sales of DAP and MOP upto 15^th March 1999 have been up by 27% (26.55 lakh tonnes) and 40% (13.94 lakh tonnes), respectively.
 

FERTILIZER IMPORTS

    During the month under review, there have been no further imports of urea. The cumulative deliveries of urea have been 5.57 lakh tonnes during April-March 1999.

    A quantity of 0.62 lakh tonnes of imported DAP and 1.35 lakh tonnes of MOP arrived during March 1999. The cumulative arrivals of DAP & MOP during April-March 1999 have been 21.05 lakh tonnes and 25.70 lakh tonnes respectively.

    The average daily loading of fertilizers by rail during March 1999 was 3033 equivalent BG wagons per day as against 2997 BG wagons per day in the corresponding period of last year.
 
 

    During the last month of the year i.e. March, 1999 crude oil production was marginally short of target. As against planned target of 2.895 million tonnes, actual production was 2.825 million tonnes. The achievement of targetted production in case of ONGC was 83.5% in Gujarat, 83.6% in Assam, 125.8% in Tamil Nadu (including Andhra Pradesh) and 98.9% in offshore areas. The production by Oil India Ltd. (OIL) however exceeded target achieving 104% realisation. The private/joint venture production was 117.5% of the target during the month of March, 1999.

    ONGC’s shortfall can be attributed to a number of factors. In Gujarat it was due to less than adequate response from thermal EOR schemes in heavy oil belt of Mehsana, inadequate power supply from Gujarat electricity Board (GEB), frequent power shutdown by GEB affecting production from A/L wells; and increase in water cut/ceasure of wells in Gandhar field. In the State of Assam, the production was affected by increase in water cut, bandh/barricades and environmental problems. And the production in Bombay High was slightly short of target due to less than envisaged production from Heera Phase-III (HX-HY) and B-173A due to geological changes resulting in less reserves base, delay in drilling, decline in liquid rate and increase in water cut in South Heera.
 

REFINERY PRODUCTION UP

    The refinery production in terms of crude throughput at 68.560 million tonnes exceeded target and achieved a growth of 5.2% during 1998-99. This was against the planned target of 67.858 million tonnes, recording target realisation of 101%. The refinery production was more than 3 million tonnes higher compared to previous year’s 65.166 million tonnes.

    The refinery production performance was still better in March 1999. The production in the month was 6.863 million tonnes against the target of 6.098 million tonnes with achievement working out to impressive 112.5%. The growth in comparison to previous year’s corresponding month was a substantial 18.8% when production was only 5.778 million tonnes.

    The refinery capacity utilization in the month was also remarkable at 119.67% against 110.5% in March 1998. Overall the capacity utilization during 1998-99 was impressive 101.5%.
 

NATURAL GAS SUPPLY

    The supply of Natural Gas (excluding JVC/private) was 19535 million cubic metres (MCM) in 1998-99 which is little less than in 1997-98 when it was 19742 MCM. The state-wise details of Natural Gas supplies are given in the table below –

B.OFFSHORE