(a)    20% of the annual outlay will be earmarked in accordance with the Accelerated Rural Water Supply          Programme(ARWSP) criteria to those State Governments which keeping in view the principles of sector reform process, will implement the following broader elements:

• adoption of a demand-driven approach based on empowerment of villagers to ensure their full participation in the project through a decision making role in the choice of scheme design and management arrangement;
• focus on village level capacity building (Village Water and Sanitation Committees);
• ensure an integrated service delivery mechanism by streamlining the functions of the agencies involved in project implementation and;
• 10% capital cost sharing and 100% sharing of O&M cost by users
• taking up of conservation measures for sustained supply of water through rainwater harvesting and ground water recharge structures.

    As explanation, the guidelines provide that 20% of the ARWSP allocation of each state will be earmarked and kept aside for implementation of the sector reforms (implementation of the pilot projects), and only the balance amount will be intimated to the respective states, as their allocation at the beginning of the financial year. The unutilised sector reform funds of any state would be given to the states reporting better implementation of sector reforms. If funds are still not fully utilised, the balance available funds would be distributed to all the eligible states as per the allocation criteria, as additional central assistance under ARWSP(Normal).

    The State Governments are required to prepare projects incorporating the above elements as per the Project Concept Document(PCD) indicating institutional arrangements and sequencing of project activities for preparation of the projects distributed by the Drinking Water Mission separately.

    Most of the States have already identified districts for implementing such projects and action plans for them have already been finalised during the regional workshops. States are now required to prepare detailed project reports based on the action plan and adhering to the above said PCD.
 
 

    The growth in textile exports, especially in exports of readymade garments, is being considered appreciable on account of the fact that there has been a sluggish growth in income both at home and abroad. There have been at least two external factors which have had an effect on the exports of textile products from India. Firstly, during the last year, the GDP growth in OECD countries and the US, which constitute a bulk of our total export market in textiles, was quite low. Secondly, our cotton yarn exports suffered a substantial decline with the turmoil in the economies of the South East Asian countries which account for nearly 65% of our cotton yarn exports. Besides, our cotton fabrics and made-ups were being subjected to repeated, in fact, back to back anti-dumping measures by the European Union (EU) and other developed countries.

    The exports of cotton fabrics and made-ups registered a growth of 3.2% in dollar terms and nearly 17% in rupee terms during the period 1998-99 as against the year 1997-98, recording export figures of US $ 2012.9 million (Rs.8468.88 crores) for the period April-March 1998-99. Cotton yarn exports, however, registered a growth of 1.8% only in rupee terms posting figures of US $ 1419.1 million (Rs.5970.52 crores) for the year 1998-99. Man-made textiles exports were to the tune of US $ 946.4 million (Rs.3975.43 crores) during 1998-99 registering a growth of 5.6% in rupee terms over the previous year.

    Handicrafts exports for the period April-March 1998-99 recorded a growth of nearly 18% in rupee terms and 4.1% in dollar terms over the corresponding period in 1997-98. The exports for 1998-99 were US $ 1681 million (Rs.7072.34 crores) as against US $ 1614.1 million (Rs.5998.58 crores) for the period April-March 1997-98.
 
 

    The complex , being built by the Central Public Works Department (CPWD), consists of 2208 residential quarters of various types, 5 barracks, a training complex, infrastructural building, hospital, maintenance and training workshop, family welfare centre and shopping complex. The plot area of the complex is 44.30 hectares.

    At present, construction of 744 type II, 816 type III, 104 type IV, and 24 type V quarters and other development works are in progress.
 
 

    During 1998-99, more than one crore persons were detected travelling without ticket or with improper ticket. During the previous year, the number of such persons were 88.12 lakhs. During March 1999, more than 9 lakh persons were detected travelling without ticket or with improper ticker as against 8.38 lakhs in 1998.
 
 

    The President of India has been pleased to appoint the following to discharge the functions of Governor till a regular arrangement is mades-

• Lt. Gen. (Retd.) S.K. Sinha, PVSM, Governor of Assam to discharge the functions of the Governor of Arunachal Paradesh; and
• Shri Justice Shyamal Kumar Sen, Acting Chief Justice of the Calcutta High Court to discharge the functions of the Governor of West Bengal.

    Coal production of CIL during the month of April 99 was 17.43 million tonnes against the target of 19.46 mt and production by Singareni Collieries Company Ltd. (SCCL) was 2.08 mt when the target was 2.46 mt. The despatches of coal during the month from CIL were 21.15 mt and from SCCL were 2.47 mt. Raw coal production was pegged down to liquidate stock which was 310.99 lakh tonnes as on April 1, 99.

    Outstanding dues from power sector to CIL as on April 10, 99 stands at Rs. 5057.13 crores and from Southern Region Electricity Board to NLC as on April 20, 99 stands at Rs.1345.16.
 
 

    The decision to set up the Task Force was taken at an inter-Ministerial meeting convened by Planning Commission to discuss various issues relating to the development of medicinal and aromatic plants and various value added products, including drugs and pharmaceutical food supplements, cosmetics etc., from such plant species.

    Shri Pant told the meeting that it was necessary to identify plant species having the most potential. Among other things, an integrated approach is needed to look into the present methodology for survey of medicinal and other plants species, inventorisation and documentation of potentially active plants, conservation and cultivation of such plants in different regions, present level of work for development of value added products and most importantly, preparation for launching a countrywide campaign to protect patent rights of processes, technologies and products derived from medicinal and aromatic plants. The Task Force be set up shortly to bring about an integration of efforts spread over several Ministries and Departments in this area.
 
 

    The all-India Consumer Price Index for urban Non-Manual Employees CPI(UNME), with base 1984-85=100, for the month of April 1999 has been released by the Central Statistical organisation (CSO), Department of Statistics; together with the Centre-wise indices for 59 selected urban Centres in India. The all-India CPI(UNME) for April 1999, at 341 is 1 points more than the index for the month of March 1999. With the corresponding all-India index for April 1998 being 316, the index for the month of April 1999 has shown a rise of 7.9 per cent over a year.

    The index for the period April 1999 at 341, which is higher by 7.9 per cent over the index for 316 for the corresponding period of the previous year. The CPI (UNME) values for April 1999 in respect of four metropolitan cities of India, together with the corresponding indices for the previous month and for April 1998 are given below:

City                 April 1998                 March 1999                 April 1999

Calcutta                 299                         315                                 316
Chennai                 348                         377                                 378
Delhi                     301                         351                                 349
Mumbai                 322                         343                                 346

    It may be noted that the rise in index for various Centres ranges from 3.5 to 24.4 per cent; with the largest increase being in the case of Siliguri, and the least in the case of Ranchi. The increases are between 3.5 to 6.4 per cent for 20 Centres, 6.5 to 9.4 per cent for 20 Centres, 9.5 to 12.4 per cent for 12 Centres, 12.5 to 15.4 per cent for 3 Centres, 15.5 to 18.4 per cent for 3 Centres, and more than 18.5 per cent for 1 Centre. S many as 33 Centres have lower annual percentage increase as compared to that of the all-India figure of 7.9 percent and 26 Centres have higher increase as compared to the all-India figure.
 
 

    Shri pant said according to experts investment of $ 115 to $ 130 billions were required to achieve a growth of 7% per annum over the period of 1995-96 to 2000-2001 and in the next five yars $ 215 billions would be required for over eight per cent GDP growth rate. Resources of this order can not be expected to be earmarked for the sector by the government alone. Threfore new ways and means of financing projects would have to be explored, he added.

    He said without a strong and viable infrastructure it was difficult to achieve rapid and sustainable growth of 7-8 per cent, which was necessary for progressively eradicating poverty. Commenting on the problems in the way of rapid infrastructure development, Shri Pant said the problem lies not only in having adequate resources for strengthening the infrastructure but the main difficulty was that unlike commercial projects infrastructure development projects are quite often not bankable. He said in order to achieve desirable levels of investment in the sector issues related to appropriate pricing and cost recovery had to be tackled on priority.

    On performance of economyh, he said in eight years of reforms Indian economy had transformed to a greqat extent, policy distortions had been removed and access improved to factors of production such as technology and capital. On fresh initiatives in fiscal refcorms Shri Pant said MOUs are being signed between the State Goernments and the Ministry of Finance Ministry detailing various measures they plan to take to improve their finances in the medium term and th Ploanning Commission would be monitoring the progress of these reforms.

    He ssaid the length of roads in india had increased eight folds between 1950-51 to 1995-96 but only 20 per cent of surface roads are today in good condition as atgainst 70 per cent in Korea and 80 per cent for Japan and USA. The Rural scene was also not satisfactory, he observed.
 
 

    The Rail Sector Project, under negotiations with ADB, consists of 18 identified schemes and has been screened after an in-depth analysis of critical needs. These schemes primarily relate to (i) increased utilisation of wagon asset by better capital productivity, (ii) easing of the strain on high density network. (iii) increase in the share of IR in total freight traffic (iv) improved operational efficiency and safety and (v) explore revenue generation opportunities through five optic telecommunication network.

    Most of these railway schemes have already been approved for execution by the Government of India. The total cost of these 18 schemes is estimated to be $ 1800 million. It comprises $860 million in foreign exchange and $940 million equivalent in local costs. Out of the foreign exchange component, $300 million are slated to be offered by ADB to Government of India as loan. These projects are to be executed by Indian Railways, right from planning stage to their total implementation. The specific projects include new lines between Banspani and Tomba, Hubli and Ankola, additional track between Gudur and Renigunta, and Sonua and Manoharpur, electrification of Kharagpur-Bhubaneswar section, MIS in Railway Board, Mobile Train Radio Communication and modernisation of coal and cement unloading terminals etc.

    The present ADB Mission is a follow-up of the fact-finding Mission, which visited India in March, 1998. It originated as a result of the recommendations made by M/s. Mckinsey and Co. and Swede Rail in their Technical Assessment report about Indian Railways in May’97.