From archive: Achievements of Atal Bihari Vajpayee led NDA government

August 16, 2018

BJP India Politics

Achievements of Atal Bihari Vajpayee led NDA government in the centre

From archive( March 2004)

In the last three years, 84 lakh additional employment opportunities were generated every year as against only 39 lakh each year in the previous five years.
About 65 lakh housing units were sanctioned by the Housing & Urban Development Corporation Ltd. (HUDCO) during the 28 years between 1970 and 1998. In contrast, in the last six years, the Government has sanctioned construction of nearly 73 lakh new houses. Of these over 50 lakh houses are in rural areas and 90 per cent are for poor families.
To usher in the Second Green Revolution, the Agricultural Infrastructure and Credit Fund is being set up in February 2004 which will provide funds at 2 per cent less than below the Prime Lending Rate (PLR). This Fund will support a Rs. 50,000 crore programme spread over the next 3 years.
Since introduction in 1998-99, Kisan Credit Cards have been issued to over three crore and thirty-seven lakh farmers, through which over Rs. 82,732 crore has been disbursed as loans.
In 50 years, only one crore and eighty-six lakh telephone connections were sanctioned. In the past five years alone, over three crore telephone connections have been provided. The number of mobile phones has crossed the two crore mark from 12 lakh in 1999.
Nearly four crore gas connections were released since 1998, as against only three crore and thirty-seven lakh in the previous 40 years. India is now the world’s second largest LPG consumer after China. World’s longest LPG pipe line of 1,270 km from Jamnagar in Gujarat to Loni in Uttar Pradesh was commissioned in May 2001.
India’s Foreign Exchange Reserves have trebled from US $ 32.5 billion in 1998 to over US $ 100 billion in January 2004.
India emerges as the IT Superpower with Software and Service industry growing by leaps and bounds; to account for 7 per cent of GDP and 35 per cent of exports by 2008. Software exports have grown from Rs. 8,000 crore in 1998 to Rs. 48,000 crore in 2004.
National Highways measuring over 24,000 km are being developed to 4/6 lane at a rate of nearly 11 km per day, as against only
11.12 km per year or 550 kms during the previous 50 years.
The number of people living below the povety line (BPL) has gone down to 26 per cent in 1999-2000 from 37 per cent in 1993-94. It is further expected to go down to 19 per cent by 2006-07.
The Antyodaya Anna Yojana, under which wheat and rice are sold at Rs. 2 and Rs. 3 per kg respectively, is the world’s largest food security programme for the poor, benefiting 1.5 crore families.
Sampoorna Gramin Rozgar Yojana launched in September 2001 is the largest food for work programme in the history of India. Fifty lakh tonnes of foodgrains valued at Rs. 5,000 crore are provided free of cost to state governments. Another Rs. 5,000 crore is provided to meet wages and material cost for creating durable rural infrastructure assets and community facilities.
The Rs. 16,000 crore Sarva Shiksha Abhiyan is the largest education programme since Indpendence, meeting the Constitutional obligation of compulsory and universal elementary education to all children. Student loans for higher studies to be made available at 2 per cent below PLR.

KARGIL TO ISLAMABAD : WAR AND PEACE
DEMOCRACY, DEVELOPMENT AND SECURITY

The successful conduct of free and fair Assembly elections in Jammu & Kashmir with the enthusiastic participation of the people was the turning point. It belied skepticism and Pakistan’s false propaganda and was a shot in the arm for peace and normalcy in the state. Doors of dialogue were thrown open to all and a good beginning has been made in first round of talks between the Deputy
Prime Minister, Shri L.K. Advani and the All Paties Hurriyat Conference. Leaders of the Hurriyat Conference met the Prime Minister for the first time and assured him of their support to the peace process.
During his visit to the state in April 2003 the Prime Minister assured the people of Jammu & Kashmir that all the problems can be resolved through dialogue and on the basis of three principles of Insaniyat (Humanity), Jamhooriyat (Democracy) and Kashmiriyat (ethos of Kashmiri people).
Pakistani incursion in Kargil was succesfully beaten back by our brave jawans.
Shri Vajpayee in a bold move extended the hand of friendship to Pakistan. This set in motion the peace process which saw gradual expansion of ties including resumption of rail, road and airlinks leading to the Prime Minister’s fruitful visit to Islamabad to attend the SAARC summit.
At the same time, our military and para-military forces have continued their relentless battle against terrorist outfits in Jammu & Kashmir and achieved major successes.
As a step towards bringing peace and normalcy in J&K, the full-fledged Inter-State Council meeting was held in Srinagar in August 2003. The three-day meeting held for the first time outside Delhi was presided over by the Prime Minister.
The Prime Minister announced a major development package of Rs. 6,000 crore for the State during his visit to Jammu and Srinagar in May 2002. Its centrepiece is the construction of the Rohtang Pass Tunnel linking Manali to Leh and the planned completion of the 287-km Udhampur-Srinagar-Baramullah railway project linking the Kashmir Valley to the rest of the country before August 15, 2007.
The package includes specific relief and rehabilitation measures for the benefit of those who have been displaced from their homes by cross-border terrorism.
North-East has been put on the road to development with massive central assistance and creation of a separate department. Between 1998-99 and 2002-03, the centre has released Rs. 44,000 crore to North-Eastern States.
The ban on NSCN(IM) has been lifted and talks held with its leaders in New Delhi for the first time have brightened the prospects of enduring peace in Nagaland. The Prime Minister’s highly successful visit to Nagaland in October 2003 has accelerated the process of peace, development and emotional integration.
Peace in the region has received a boost with Bhutan flushing-out anti-India militants from its soil. The training camps of ULFA, NDFB and KLO militants were smashed in the operation conducted in December 2003.
Bodo people’s aspirations for peace, normalcy and development were fulfilled with the memorandum of settlement between the Government of India, Government of Assam and the Bodo Liberation Tigers for the Bodoland Territorial Council within Assam. On December 7, 2003, the Interim Executive Council of the Bodoland Territorial Council was sworn in at Kokrajhar in presence of the Deputy Prime Minister and 2,641 BLT insurgents laid down their arms.

ECONOMY: DRIVING GROWTH FOR SPEEDY REMOVAL OF POVERTY AND UNEMPLOYMENT

The NDA government has consistently expanded and deepened the scope of reforms to unleash the huge locked-up potential for growth in the Indian economy. Since broad national consensus is necessary to achieve this objective, the Government has been working closely with both State Governments and Opposition parties to enlarge the area of agreement on key elements on the agenda of reforms. No government in the past convened as many all-party meetings and Chief Minister’s conferences as the NDA government has done.
India continues to be one of the fastest growing economies in the world. The real GDP growth in 2003-04 is expected to be over 7 per cent with a strong agricultural rebound. The industry and service sectors are also poised for higher growth. The second quarter (July – September) of the 2003-04 witnessed an annual growth rate of 8.4 per cent, the highest ever.
The Government has been able to curb the rising trend in prices. Inflation has remained moderate for a prolonged period.
The Government has prepaid US $3 billion of external loans during 2002-03 and US $1.4 billion so far during 2003-04.
India’s exports (in dollar terms) rose by an impressive 20 per cent last year and have crossed US $ 50 billion in 2002-03, up from US $ 33.2 billion in 1998-99. The surge in exports has occurred in spite of a prolonged slowdown in the global economy and an appreciating rupee in 2002-03. This points to the inherent strength of the domestic industrial and services growth.
The manufacturing sector has gone through a process of restructuring and is now ready to face global competition. An Infrastructure and Manufacturing Fund will be set up by March 1, 2004 to give a big push to both infrastructure and manufacturing. This major national initiative will provide an aggregate additional investment of Rs. 50,000 crore over the next 3 years in infrastructure and manufacturing projects like power generation, sea ports, air ports, roads, tourism, telecommunication and urban infrastructure.
Foreign exchange reserves have reached an all-time high at US $ 103.8 billion on January 9, 2004, moving up from US $ 32.49 billion in 1998-99. The addition in the last one year alone was nearly as much as the entire forex reserves at the inception of the NDA Government six years ago. Significantly, most of the increase is due to non-debt creating inflows.
The Government has reduced and rationalized the duty rate structure in several items in the health, IT/electronics and power sectors. Peak rate of customs duty on non-agricultural goods has been reduced from 25 per cent to 20 per cent. Special Additional Duty of customs (SAD) of 4 per cent has been abolished.
Exemption from customs and excise duties available to water supply projects for drinking purposes has been extended to industrial as well as agricultural purposes. Among other things, this will give a boost to large-scale projects for desalination of sea water.
Small and Medium Industry Fund is being set up in February 2004 to address the inadequacy of financial resources at competitive rates and lack of SIDBI- coverage for some of the medium- sized enterprises. The SMI Fund, initially of Rs. 10,000 crore, will be spread over the next 2 years and will carry an interest rate to ultimate borrowers at 2 per cent below PLR.
Unlike in the past, effective measures were taken to ensure that the drought in as many as 14 States in 2002-03 did not result in either shortage of foodgrains or a flare-up in the prices of essential commodities anywhere.
Bank interest rates are the lowest since 1973, providing a strong stimulus to growth and investment.
The current account of India’s balance of payments has become positive after a gap of 24 years. The current account moved from a deficit of US $ 4.0 billion in 1998-99 to a surplus of US $ 4.1 billion in 2002-03.
With sustained growth in GDP, the ratio of external debt to GDP has come down from 23.6 per cent in 1998-99 to 20.3 per cent in 2002-03. The external debt service to current receipts ratio declined from 18.7 per cent in 1998-99 to 14.7 per cent in 2002-03.
The Fiscal Responsibility and Budget Management Act, 2003 bears eloquent testimony to the Government’s commitment to fiscal consolidation both at the Centre and in States. This Act ushers in transparency in Government finances and parliamentary accountability to fiscal performance.
The current policy of external commercial borrowings has been liberalized to promote investment activity in industry, including in small and medium enterprises. This revised policy provides automatic approvals for the industrial sector, especially for infrastructure, and including small and medium enterprises, provided it is made for a minimum period of five years.
For bright but needy youngsters pursuing higher education, the existing education loan scheme of banks is being liberalised at 2 per cent below PLR.
With effect from April 1, 2004, employees having annual salary income up to Rs. 1.50 lakh in whose cases the entire tax payable is deducted at source by the employer, will not have to file Income Tax Returns. Pensioners who do not have taxable income will be exempt from filing of returns.
E-filing of returns, currently available in respect of only ten services, has been extended to all the 58 taxable services, providing a major relief to tax-payers.
Strong market fundamentals, good corporate results, technological and institutional reforms have led to increased confidence of Foreign Institutional Investors (FII) in the Indian Capital Market. FII inflows rose to US $75.91 billion in 2003 from (-) US $7.9 billion in 1998-99.
Major steps have been taken to simplify and restructure the tax system with the twin objectives of making it more citizen-friendly and increasing the government’s tax revenues.
The SEBI Act has been amended to strengthen the capital market regulator and create necessary safeguards against malpractices and inefficiency. SEBI has been given power to levy deterrent penalties against corporates and individuals.
The UTI Act was repealed to break the Unit Trust of India, which is the country’s oldest and largest savings fund, into UTI-1 and UTI-2. This was done by fully protecting the interests of small investors. UTI-2 has been handed over to a new set of owners to function as a normal mutual fund.
Legislation has been passed by Parliament to enable banks and financial institutions to reduce their non-performing assets through securitisation and reconstruction of assets. The Companies Act has been amended to address the issue of industrial sickness.
New opportunities for growth attracted increased flow of foreign direct investment, which has grown from US $ 2.46 billion in 1998-99 to US $ 4.66 billion in 2002-03.
FDI in private sector banks under the automatic route has been increased from 49 per cent to 74 per cent.
Major steps have been initiated to make the business environment investor-friendly. Automatic approvals have been envisaged for FDI in most areas. A new Special Economic Zone policy has been initiated to enable a conducive regulatory environment for investment in infrastructure development and production of goods and services for exports.
Over Rs. 11,000 crore has been raised since 1999-2000 through strategic sale and other forms of disinvestment of PSUs.
A radical exercise has been initiated to remove time and cost overruns of public sector projects, as well as the regulatory impediments to investment by the private and public sectors at the Central, State and local government levels. These initiatives will have profound effect on the time-bound implementation of physical and social infrastructure projects and transform the character of government-business interface.

HOME AFFAIRS: FIRM AND FAR-SIGHTED STEPS

Three new States – Uttaranchal, Chhattisgarh and Jharkhand – were formed in year 2000 fulfilling the long-standing aspirations of the people of these regions.
Prevention of Terrorism Act (POTA), 2002 came into being to strengthen the fight against terrorism while incorporating suitable safeguards against possible misuse. Thirty-two terrorist and subversive organisations were banned under POTA. These include Lashkar-e-Taiba, Jaish-e-Mohammand, Harkut-ul-Mujahaddin, Hizbul-Mujahaddin, ULFA, Students Islamic Movement of India (SIMI), Al Qaida and Dukhtaran-e-Millat.
India signed extradition treaties with a number of countries to facilitate deportation of criminals. The Deputy Prime Minister and Home Minister, Shri L K Advani, held wide-ranging talks with his counterparts in these countries to strengthen cooperation in the fight against terrorism, drugs and arms smuggling, money laundering, and other forms of organised transnational crime.
The Government defeated several covert action designs by the Pakistan ISI. As many as 161 ISI modules in various parts of the country were busted.
Police reforms have been given top priority. In the three decades since 1970, only Rs. 550 crore was given to the States by the Centre for police modernisation. In contrast, the NDA Government has started to provide Rs. 1,000 crore each year for the next 10 years. Along with matching contributions from the State Governments, this will entail an outlay of Rs. 20,000 crore for police modernisation during this decade.
A Rs. 3,740 crore five-year plan for modernisation of Central Paramilitary Forces has been approved.
The new millennium’s first Census was completed in record time, with the data being computerised for the first time. An interactive website for generating maps on Census themes was also launched.
The NDA Government views large-scale illegal immigration from Bangladesh as a serious problem and is taking appropriate measures to check it. The Centre has sanctioned construction of the remaining 797 km of border roads and 2,429 km of border fencing on the Indo-Bangladesh border at a cost of Rs. 1,334 crore. This work is being completed on a war footing.
The Island Development Authority has been activated to promote speedy and all-round development of the Andaman & Nicobar Islands and the Lakshadweep Islands.
Parliament passed the historic Citizenship (Amendment) Bill, providing for dual Citizenship for Persons of Indian Origin in 16 countries.

FOREIGN POLICY: STRATEGY OF PEACE THROUGH STRENGTH

The NDA government assumed office when India had still not recovered from a series of external and internal shocks in the 1990s which had raised searching questions about India’s strategic and security assumptions:
The end of the Cold War had a huge impact on India’s diplomatic room for manoeuvre in the world. The quality of many of our relations and alliances suffered from the consequent re-alignment of world forces.
Our security environment had deteriorated rapidly with increased cross-border terrorism and tremendous nuclear and missile build up in our neighbourhood.
Our precarious foreign exchange position in the early 90s resulted in a weak economic situation, whch further restricted our international, political and economic options.
Weak and unstable governments from 1996 to 1998 further aggravated these problems of internal and external vulnerability.
The NDA government has restored India’s national self-confidence in international affairs. India has today emerged from the post Cold War fluidities by forging new links with democracies of the world on the basis of shared values, common objectives, convergent world views and a coalition against terrorism.
We have succeeded in increasing the strategic space for India in our efforts for a multi-polar world, guiding Indian foreign policy through the global reverberations of 9/11 and the acrimonious division caused by developments in Iraq.
The Pokharan nuclear tests declared our determination to decisively respond to our security environment, withstanding external pressures. It was our deft foreign policy which ensured that the sanctions and the attempts to isolate India diplomatically after the nuclear tests began to crumble within a year.
Our network of internatinoal relations now includes a strong strategic alliance with Russia, a developing strategic partnership with the USA, summit level dialogue with the European Union, strategic dialogues, counter-terrorism linkages and other political and security dialogue mechanisms with France, the UK, Germany, China, Israel and Japan, among others.
We have used India’s economic resurgence and our strengths in the information and communicataions technologies to increase our presence in world markets, expand appreciation and opportunities for our workers abroad and to inspire confidence in our economic reforms process.
The govenment has seized the initiative in actively projecting India’s security concerns and obtaining international recognition for our perspectives on terrorism, particularly in our neighbourhood.
Our sustained policy of developing close relations of friendship, equality and mutual trust with our neighbours has yielded rich results.
India has restored its traditional role as a friend and partner of Afghanistan. There has been widespread appreciation of our close involvement in the economic reconstrution of Afghanistan.
India has continued to sustain and strengthen its age-old relations with Iran, the other countries of the Persian Gulf and the rest of the Arab world. Our growing economic and defence cooperation with Israel has been mutually beneficial, but has not affected our traditonal solidarity with the Arab and Palestinian cause.
We have placed special emphasis on regional and sub-regional cooperation. The Framework Agreement for South Asian Free Trade Area (SAFTA) at the recent Islamabad SAARC Summit was a culmination of patient efforts in this direction. We have actively promoted new regional initiatives like BIMST-EC, Mekong-Ganga Cooperation and India-Myanmar-Thailand trilateral cooperation.
India has strengthened the ‘Look East’ dimension of its foreign policy adding new vibrancy to our age-old relations with the countries of South East Asia. The annual Summit level dialogue between India and ASEAN is a measure of the progress achieved.
At the second India-ASEAN Summit in Bali, framework agreement on comprehensive economic co-operation was finalised. During Mr. Vajpayee’s visit to Thailand both countries agreed to reduce tarrifs on over 80 items on trade.
We have initiated the process of rebuilding India’s traditional links with the Central Asian republics.
The Prime Minister’s visit to Turkey in September 2003 was significant. Apart from setting up a Joint Working Group to counter terrorism, a group of Economic ministries was constituted to increase bilateral trade. Direct flights between Istanbul and New Delhi were established.
We have remained an active member of the Non-Aligned Movement working towards re-orienting NAM to effectively confront the new challenges of today’s world. India believes NAM can become an effective platform in the fight against international terrorism and can make valuable contributions to South-South cooperation and the North-South engagement. We have also worked actively within the Commonwealth to promote democratic values and to extend technical and economic assistance to its smaller states.
In the last five years, our government has placed special emphasis on enriching the connections of the Indian diaspora with their country of origin. We have worked to strengthen their cultural moorings in India and to facilitate their participation in India’s economic development and growth. The diaspora has responded magnificently to project India abroad.
The ultimate testimony to India’s growing international stature is our rapidly expanding interaction with countries and regions around the globe. In the past five years we have received an unprecedented number of leaders from every continent of the world. Tributes have been paid to India’s economic resurgence. A large number of countries have publicly endorsed India’s candidature for permanent membership of an expanded UN Security Council.
These are trends which we will further strengthen and accelerate.

‘JAI JAWAN’ INITIATIVES

There had been little or no modernisation of the Armed Forces in the past ten to fifteen years. The NDA Government can proudly claim credit for having spent more money on this crucial aspect of national security in the last six years than in the previous ten years put together. While the total expenditure on Defence in 1996-97 was Rs. 29,505 crore, it grew to Rs. 65,000 crore in 2002-03. The last six years have seen systematic induction of many new and much needed weapons systems.
For the first time since Independence, a comprehensive review of the National Security System was carried out resulting in the establishment of an Integrated Defence Staff.
The mobilisation of troops in January 2002 on the Indo-Pak border, following the terrorist attack on Indian Parliament on 13 December, 2001, exerted immense pressure on Pakistan. India’s policy of firmness combined with self-restraint was successful in achieving the objective.
India has signed defence deal with Russia for Admiral Gorshkov, meeting Navy’s need for an aircraft carrier.
The first Commander-in-Chief of Strategic Forces Command was appointed in 2002.
A Joint Tri-Service Andaman and Nicobar Command, controlling the assets of the three Services and the Coast Guard, has replaced the earlier FORTRAN (Fortress Commander Andaman and Nicobar). This constitutes the first joint command in the country.
The Government has opened up the defence production industry for private sector participation with up to 100 per cent equity and FDI up to 26 per cent.
The Government has approved a Rs. 18,000 crore Defence Housing Project, the biggest ever since Independence, to substantially increase and improve housing facilities for serving soldiers.
The age limit for the Women Entry Officers’ Scheme has been relaxed for widows, thus providing an opportunity for their rehabilitation.
A new provision has been introduced for Kargil martyrs and disabled personnel whereby their next of kin/dependent child, when eligible, would be offered employment.
A major contract was signed with Russia for the procurement of 310 T-90 S tanks to strengthen Indian Army. Some of the tanks will be imported and the rest will be produced in India under transfer of technology agreement.
For the first time annual awards worth Rs. 1 crore were instituted in 1999 to honour the scientists and technicians working with Defence Research and Development Organisation (DRDO) and to encourage them to strive continuously for excellence.
The Defence Ministry substantially increased the monetary allowance for Gallantry Awards which were more than the recommendations of the Fifth Pay Commission.
Indigenisation has been at the core of the defence planning process under the NDA Government. Several steps have been taken to make the country self-reliant in defence needs. The achievements in this area include:
- BRAHMOS, the supersonic cruise missile, a joint venture with Russia, successfully flight-tested many times.
- AGNI-I (800 km) successfully developed and accepted for induction. The range of this single-stage solid propelled missile fills the gap between Prithvi and the Intermediate Range Ballistic Missile.
- AGNI-II (2000 km) successfully developed and being inducted.
- Major boost to Light Combat Aircraft (LCA) Tejas project. Since January 2001, LCA Technology Demonstrator I & II and prototype vehicle I have successfully completed many test flights. In the year 2003, the aircraft crossed the sound barrier.
- Kaveri, the indigenously developed advanced technology engine for LCA, has completed ground testing in India and high altitude testing in Russia.
- The advanced multi-role aircraft SU-30 MKI inducted into the Indian Air Force. The first squadron is now fully operational. 12 more Sukhoi 30 MKI were inducted in IAF during the year 2002.
- Multi Barrel Rocket System (PINAKA) ready for induction. PINAKA has the capability of firing in a single salvo 12 rockets in less than 40 seconds with a range of 38 km.
- Pilotless target aircraft Lakshya inducted into the Indian Air Force and Navy. With this the country has reached self-reliance in this class of Unmanned Aerial Vehicles.
- Electronic Security System (SAFARI) production successfully commenced.
- Compact Induction System (SUJAV) inducted.
- Electronic Warfare System SANGRAH and TEMPEST inducted.
- Successful development of FIN Stabilised Armour Piercing Discarding Sobot (FSAPDS) Softcore ammunition for use on T-72 Tanks.
- Successful work on BHIM (self-propelled gun) and INSAS (Indian small arms system). Proto type tank Ex-KARAN developed.
- Production of indigenously developed Advanced Light Helicopter commenced. The government has approved a long-term approach for series production of submarines in the country in order to meet the naval requirements.
- The Ministry of Defence has approved the proposal to build an indigenous Air Defence Ship (ADS) at an estimated cost of Rs. 1,700 crore.

‘JAI KISAN’ INITIATIVES

To usher in the Second Green Revolution, the Agricultural Infrastructure and Credit Fund is being set up in February 2004 which will provide funds at 2 per cent less than below the Prime Lending Rate (PLR). This Fund will support a Rs. 50,000 crore programme spread over the next 3 years.
Over 3.37 crore farmers have been issued Kisan Credit Cards since introduction in 1998-99. Through this initiative, over Rs. 82,732 crore has been given as loans. Personal insurance package of Rs. 50,000 in case of death and Rs. 25,000 in case of permanent disability to Kisan Credit Card holders has been operationalised.
Farmers now will have to pay a reduced interest rate of 9 per cent maximum on bank loans up to Rs. 50,000 for each crop.
Minimum Support Price (MSP) of various farm products has been consistently increased.
National Policy on Cooperatives unveiled to help rural cooperatives reap the benefits of economic reforms.
National Agricultural Insurance Scheme has become operational in 22 States and 2 Union Territories. For the four crop seasons from Rabi 1999-2000 to Kharif 2002, claims of Rs. 1926.37 crore have been paid.
A pilot project of the Farm Income Insurance Programme has been launched during the 2003-04 Rabi season. An improvement over crop insurance, it covers the two critical components of the farmer’s income, namely yield and price through a single policy instrument.
The Government has drawn up plans to make the States of Eastern India the country’s new food basket by harnessing their fertile soil and abundant water resources. A new scheme on ‘Farm Water Management for Increasing Crop Production in Eastern India’ has been launched in 171 districts.
Controls imposed under the Essential Commodities Act, 1955 have been removed facilitating free trade and movement of food grains to enable farmers to get the best prices for their produce.
For the first time since Independence, 48 Agricultural Export Zones (AEZs) are being set up in 14 States with an investment of Rs. 1,325 crore, of which the Union Government through its various agencies will provide Rs. 380 crore. AEZs are expected to facilitate nearly Rs. 10,300 crore worth of additional exports over the next five years.
A new Central sector scheme on Hi-tech Horticulture and Precision Farming has been launched for the first time.
The Prime Minister has announced the launching of the National Horticulture Mission in his Independence Day address. The Mission aims at giving impetus to cultivation of fruit, vegetables, flowers, spices etc. The target is to double the horticulture production in the country by 2010.
The Government announced a one time assistance of Rs. 678 crore to State Governments to mitigate hardships of the sugarcane farmers who have not been paid sugarcane arrears for the 2002-03 season by private sector sugarcane factories in Uttar Pradesh, Uttaranchal, Bihar, Punjab and Haryana.
The Government has introduced a series of measures to provide relief to small and marginal farmers of plantation crops like tea, coffee and rubber. Further, a Price Stabilisation Fund of Rs. 500 crore has been created for their benefit.

DRINKING AND IRRIGATION WATER MANAGEMENT

A new initiative called Hariyali was launched in January 2003 for accelerated promotion of watershed development programmes. It is being implemented by the Panchayati Raj Institutions.
Swajaldhara, a new drinking water programme for rural people launched in December 2002, has received tremendous response. For the first time, this centrally sponsored scheme is being implemented through Panchayats, which are funded directly to the tune of 90% of the project cost. The remaining 10% of the contribution comes from villagers, thus ensuring their active participation and successful maintenance of the schemes. The slogan of the Rural Development Ministry is – “Dus Kadam Aap Chale, Nabbe Kadam Hum Chalenge” (You walk ten steps, we’ll walk ninety steps).
The year 2003 was celebrated as the Freshwater Year, with a call to make water conservation and water management a people’s movement. In view of the importance of the subject as also in view of the success of the year-long programmes and the positive response they received from all sections of society, it has been decided to continue with related activities for another three months till March, 2004.
As many as 19.2 lakh hectares of additional irrigation potential through major and medium irrigation schemes has been created, mainly in tribal and drought-prone areas, under the ‘Accelerated Irrigation Benefits Programme’ (AIBP) by investing close to Rs. 10,653 crore.
Another 64,400 hectares of irrigation potential has been created through completion of 3000 minor irrigation projects with Central loan assistance of Rs. 227 crore under AIBP.
A task force has been constituted to recommend measures needed for effective and speedy expansion of drip and sprinkler irrigation.
Budgetary support for the Accelerated Rural Water Supply Programme (ARWSP) has been enhanced to Rs. 2,535 crore which is about 40 per cent increase over 1998-99.
Out of 14.22 lakh rural habitations in the country, about 13.32 lakh were fully and 80,860 thousand partially covered under this programme.
The Command Area Development (CAD) Programme is being restructured to enable greater involvement of farmers. Towards this end, 41,000 Water Users Associations covering 8.68 million hectares are in position.

FOOD SECURITY: REACHING OUT TO THE POOREST OF THE POOR

In the Union Budget 2003-04, the scope of Antyodaya Anna Yojana was expanded to cover an additional 50 lakh families, raising the total coverage to 1.5 crore families at a cost of over Rs. 1,500 crore per year.
The concessional ration facility has been increased from 10 kg cereal per family per month to 35 kg cereal per family per month for 36 crore people living below the poverty line.
Under various welfare schemes, over 50 lakh tonnes of foodgrains have been provided to State Governments free of cost.
The country faced a severe drought in 2002. The centre allocated 87.36 lakh MTs of foodgrains free of cost and provided a cash assistance of Rs. 4,214.95 crore under the Calamity Relief Fund (CRF) and the National Calamity Contingency Fund (NCCF) to the drought affected States.
Under the special component of Sampoorna Grameen Rozgar Yojana, 63.41 lakh tonnes of foodgrains have been released to the drought-affected States free of cost during the period between April 2002 and March 2003. During 2003-04, upto November 2003, Rs. 2,661.55 crore were released under this scheme. 49.14 lakh tonnes foodgrains were released to drought affected states. In many States, SGRY has helped villagers take up water conservation programmes like check dams, canals, desilting of tanks, etc.
Foodgrains are provided at subsidised rates to non-governmental organisations and religious establishments to run mid-day meal programmes for poor children.
Under a scheme to supply foodgrains to SC/ST/OBC hostels/welfare institutions, 15 kgs of foodgrains per resident per month are given at subsidised rates. For inmates of such hostels, Nari Niketans, NGO’s etc. an additional allocation of foodgrains equal to 5 per cent of the BPL allocation of each State/UT has been made at BPL rates during the last two years.

RURAL DEVELOPMENT: PROSPERITY THROUGH EMPLOYMENT

Sampoorna Grameen Rozgar Yojana (SGRY), launched in September 2001, with an annual outlay of Rs. 10,000 crore, is the largest Food-for-Work programme in the history of India. Fifty lakh tonnes of foodgrains valued at Rs. 5,000 crore are provided free of cost to State Governments. Another Rs. 5,000 crore is to be utilised to meet the cash component of wages and material cost for creating durable rural infrastructure assets and community facilities. SGRY generates about 100 crore mandays of employment every year in rural areas.
Under Swarnajayanti Gram Swarozgar Yojana (SGSY), launched in April 1999, 18.15 lakh Self-Help Groups (SHGs) have been formed and 39 lakh self-employed people have been provided assistance. The SHG-Bank Linkage Programme propagated by NABARD is the largest and the fastest growing micro-finance programme in the world. Some of the most successful SHGs are those founded and run by rural women.
During the three years from 1999 to 2002, Rs. 3,225 crore of loans has been disbursed by the banks under the Prime Minister’s Rozgar Yojana (PMRY) Scheme, and 7.80 lakh jobs generated.
The Prime Minister announced the Khadi Package on 14 May, 2001 involving an outlay of Rs. 1,215.85 crore for the accelerated development of Khadi and Village Industries (KVI) programmes.
For the first time, the NDA Government created a separate Ministry of Agro and Rural Industries. The Rural Employment Generation Programme (REGP), of the ministry has become highly successful. Since 1998, it has assisted 1.5 lakh small entrepreneurs to set up production units creating 16 lakh employment opportunities. In the next four years, REGP will create 25 lakh additional employment opportunities.
80 per cent of all diseases and ailments are due to lack of safe drinking water and sanitation. Under the Total Sanitation Campaign (TSC) since 1999, the Government has helped construction of toilets in 44 lakh households. Of these, 20 lakh were constructed in 2002-03 alone. TSC’s aims are to construct toilet facilities in 8.4 crore households in the next five years.

SMALL INDUSTRIES, BIG PRIORITY

An independent Ministry of Small Scale Industries (SSI) was set up in October 1999.
Prime Minister announced a comprehensive policy package for promotion and development of SSI in August 2000.
The Excise exemption ceiling for SSI has been raised from Rs. 50 lakh to Rs. 1 crore.
Credit Guarantee Fund Scheme for collateral-free loans implemented.
Never since Independence have food processing industries received as much support and encouragement. The entire food processing sector, except for alcoholic beverages and products reserved under the SSI, has been deregulated and de-licensed. It is now eligible for priority sector lending.
Automatic approval of FDI will be granted for 100 per cent export oriented units. Government assistance of Rs. 248 crore has resulted in the setting up of projects worth Rs. 2,500 crore.
Credit linked capital subsidy scheme for technology upgradation operational since October 2000.
394 specialised SSI branches set up till March 2002.
Integrated Infrastructure Development Centres Scheme amended to cover the entire country with 50 per cent reservation for rural areas.
Laghu Udyami Credit Card for SSI borrowers (upto Rs. 2 lakh) launched.

DIGITAL CONNECTIVITY

In 50 years, only one crore and eighty-six lakh telephone connections were sanctioned. In the past five years alone, over three crore telephone connections have been provided.
The incredible rate of growth of telecom services in India, the sheer size of the sector, the dramatic improvement in quality and the equally dramatic fall in tariffs have together scripted one of the major achievements of the country in recent years. This is an area where the fruits of reforms have benefited the common man directly. Until a few years ago, people were standing in queues to obtain a telephone. Today, several telephone companies are standing in queue to get the people choose their telephone.
A special drive has been launched to ensure that every village in India has access to a public telephone. The total number of Village Public Telephones (VPTs), which stood at 3 lakh approximately on 31st March, 1998 has increased to more than 5.2 lakh in November 2003 resulting in 85 per cent coverage.
The number of mobile phones, which was 12 lakh in April 1999 has now crossed the two crore mark. What was only a few years ago a symbol of luxury has become an affordable tool of empowerment for the common man.
The Government’s competition-enhancing and consumer-friendly policies have resulted in the ending of Government monopoly in the International Long Distance Telephone sector. This has resulted in a drastic reduction in ILD tariff by over 50 per cent.
Tariff for National Long Distance Telephony was first reduced by 62 per cent from a maximum of Rs. 24 per minute to Rs. 8.40 per minute, the largest ever decrease in tariff. This has now come down to Rs. 4.80 per minute; a further reduction by 43 per cent.
BSNL and MTNL have undertaken massive expansion programme to cater to the growing demand for telephony from all parts of the country. BSNL has launched its mobile telephone service “Cell One” in October 2002.
Internet Telephony has been permitted. International calls on the internet are being offered for as little as Rs. 5 per minute. This decision has also benefitted cyber-cafe and STD/ISD/PCO owners and increased their earnings.
Public Call Offices (PCOs) which stood at 4.2 lakh all over India on 31st March, 1998 have been increased to more than 15.88 lakh by the end of November 2003.
The role of private operators has increased significantly in the telecom sector. The share of private sector has increased from 4.7 per cent in March 1998 to 34 per cent at the end of November 2003.
Government has decided to have a unified licence for Unified Access (Basic and Cellular) services.
With a view to giving a boost to Rural Telephony, Universal Service Obligation Fund has been set up. The Fund will be used to assist the telecom service providers in giving access to basic telephone services to people in the rural and remote areas at affordable and reasonable prices.
The Grameen Sanchar Sewak (GSS) Scheme launched by the Prime Minister in December 2002 has fast gained popularity, with around 80 lakh metered calls being made since its launch.
Total telephones increased from 2.28 crore on 1.4.1999 to 6.87 crore on 30.11.2003. During the period, teledensity rose from 2.32 to 6.43, villages with telephone facility from 3.4 lakh to 5.19 lakh and internet subscribers from 2.5 lakh to 37.49 lakh. Fixed phones increased from 2.16 crore to 4.8 crore in the same period.
Optical fibre cable length increased from 0.65 lakh km on 1.4.1999 to 4.16 lakh km on 31.10.2003. Microwave systems increased from 58,247 km to 1,66,115 km.

MEDIA AND ENTERTAINMENT: BOLD NEW TUNES

In order to safeguard consumer’s interests, the long-standing demand for a regulator in broadcasting sector has been largely met by entrusting broadcasting carriage issues to TRAI.
Entire entertainment sector, including films, has been recognised as an industry and qualifies for funding from banks and other financial institutions and now exercises for facilitating venture capital funding are under process. Exports of the Film and Entertainment Sector increased from about Rs. 200 crore in 1998 to over Rs. 900 crore in 2002.
Permanent venue for holding International Film Festival of India has been finalised. Goa with its unique culture, lifestyle and ambience has been selected as the permanent location of IFFI.
The government has permitted 26 per cent foreign investment in News and Current Affairs for private television channels.
Private sector participation has been permitted in the FM radio sector. Twenty-two private FM channels are in operation including six in Maharashtra, four each in West Bengal and Tamil Nadu, three in New Delhi and one each in Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh and Uttar Pradesh. The second phase of radio privatisation is under active consideration for exploring new areas like FDI, revenue sharing and news and current affairs.
Journalist Welfare Fund set up with a corpus of Rs. 5 crore. In case of loss of life or permanent disability of a journalist due to an unnatural cause (in the course of duty), the family of the journalist is being helped with a one-time ex-gratia relief of Rs. 1 lakh.
Prasar Bharati commenced a 24-hour DD terrestrial and satellite news channel in addition to the already existing 24-hour telecast for 17 channels including regional satellite channels in Telugu, Tamil, Malayalam, Kannada, Gujarati, Marathi, Bengali, Oriya and Punjabi. It also commenced DD-sports, DD-India, DD-Bharati, DD-North-East and DD-Kashir (for J&K) Channels. Doordarshan’s Direct-to-Home (DTH) service will also be started shortly.
Doordarshan started narrowcasting of programmes of local relevance in local languages. A Kisan channel to meet the specific localised needs of farmers has been launched through Doordarshan.
Impetus provided for growth of print media by permitting up to 26 per cent FDI in Indian entities publishing newspapers and periodicals dealing in news and current affairs and up to 100 per cent foreign investment in Indian entities publishing scientific, technical and speciality magazines/periodicals/journals. Five cases of Indian edition of foreign magazines, eight cases of foreign investment in Indian entities publishing specialised magazines and one case of Foreign Direct Investment in Indian entity publishing newspapers containing news and current affairs have been cleared under the new policy.
DTH (Direct to Home) television service permitted in the KU band.
Plans for state of the art Media Centre are in the final stages, to be located at the prestigious Lutyens Zone in New Delhi.
India’s strengths in IT have enabled the animation industry to make its mark in the international arena. Letters of intent have been exchanged with the Governments of Canada and Italy, as precursors to co-production agreements to increase the international presence of the Indian animation and film industry.

INFORMATION TECHNOLOGY: MAKING INDIA A SOFTWARE SUPERPOWER

The software and services industry has emerged as one of the fastest growing sectors in the Indian economy with a growth rate of 26 per cent during 2002-03 and a turnover of US $12.7 billion (Rs. 59,900 crore) and exports of US$10 billion (Rs. 47,500 crore).
Indian IT software and services industry is expected to account for 2.4 percent of India’s GDP and 20.4 per cent of exports during 2002-03 and is projected to account for 7 per cent of India’s GDP and 35 per cent of exports by 2008.
Over ten lakh new employment opportunities for educated Indian youth have been created in the IT sector. India’s reputation is enhanced globally as a key player in the emerging Knowledge Economy.
The IT-enabled services sector was practically non-existent in 1998. Today, India’s earnings in ITES have zoomed to US $ 3.5 billion (Rs. 15,750 crore). Over 2.2 lakh opportunities have been created in ITES.
The Department of Information Technology has formulated ‘Vidya Vahini’ and ‘Gyan Vahini’ programmes. It will provide connectivity and IT Infrastructure to schools and higher learning institutions in the country. Pilot projects have been taken up to connect about 200 Senior Secondary Schools in seven districts in the country and campus-wide network at Delhi University. The Prime Minister launched the programme on 11th June, 2003.
The Information Technology Act, 2000, which came into force in October 2000, provides a legal framework to facilitate the growth of e-commerce and prevention of cyber crimes.
Community Information Centres have been set up at 487 blocks in the seven North-Eastern States and Sikkim to promote IT-based socio-economic development in the region.
Video conferencing network has been set up in all the districts of Uttar Pradesh, Jharkhand, Himachal Pradesh and Uttaranchal through NICNET. It has also been set up at Leh and Neuoma in Jammu & Kashmir, which is the highest point in the world where such facility has been made available.
Software Technology Park of India (STPI) opened its Earth Station facility at Trichy, Pondicherry, Lucknow, Kolkata, Bhilai, Nasik, Rourkela, Mangalore and Hubli. This will provide High Speed Data Communication services to the software export industry.

PHYSICAL CONNECTIVITY: INDIA’S HIGHWAY TO PROSPERITY

The Rs. 54,000-crore National Highways Development Project (NHDP), launched by the Prime Minister on 2 January, 1999, is the most ambitious infrastructure initiative since Independence. Indeed, it is the largest road construction project in India since the time of Sher Shah Suri, who built the Grand Trunk Road. Under NHDP and other projects, 14,846 km of world-class highways are being built.
In addition, the Union Government is providing over Rs. 1,000 crore every year to the State Governments for improvement of State Highways and other roads. For the first time in the history of our country, such a large sum of money is being provided for improvement of State Highways.
A substantial part of Phase-I of NHDP, i.e.the Golden Quadrilateral connecting Delhi, Mumbai, Chennai and Kolkata, will be completed and dedicated to the Nation by December 2004. The Government is also taking steps to ensure that Phase II – the North-South Corridor connecting Srinagar and Kanyakumari and the East-West Corridor connecting Silchar and Porbandar – is completed by 2007 almost two years ahead of schedule. Most of the work is being done by Indian entrepreneurs.
Completion of Golden Quadrilateral alone will result in a saving of Rs. 8,000 crore per year in fuel costs.
Besides, NHDP will create about 18 crore mandays of employment. Already, its Phase I is creating over 3 lakh direct employment opportunities every day.
The NHDP initiative has significantly contributed to revival of several industries, including cement, steel and automobile.
Besides NHDP, four-laning of another 10,000 km of National Highways stretches has been announced at an estimated cost of Rs. 40,000 crore under the Pradhan Mantri Bharat Jodo Pariyojana. Under this, 7 stretches covering a length of 622 km in five states are being taken up in the current year.
A new Auto Policy announced with a vision to establish a globally competitive automotive industry in India and to double its contribution to the economy by 2010.

RURAL CONNECTIVITY

The Pradhan Mantri Gram Sadak Yojna (PMGSY), launched in December 2000, with an investment outlay of Rs. 60,000 crore, is the biggest rural infrastructure programme undertaken in India since Independence. Under this Centrally sponsored scheme, all the remaining 1.86 lakh unconnected villages in the country will be linked by good all-weather roads by 2007.
Since the launch of PMGSY, nearly Rs. 10,000 crore has been disbursed to State Governments and construction has begun at about 30,000 villages. The Union Budget 2003-04 has further enhanced provision for PMGSY.

WATER CONNECTIVITY

To find a long-term solution to the recurring problem of drought in some parts of the country and floods in others, the Prime Minister has announced a time-bound plan to link major rivers of India by 2016. A Task Force has been constituted to prepare a blueprint for action, taking into consideration environmental protection and proper rehabilitation of displaced people. Thus, a project that was a matter of keen national debate for several decades, has finally been taken up for implementation. Besides irrigation and drinking water, this mega project would also bring benefits in power generation, inland water transport and tourism.
As announced by the Prime Minister on 15th Augsut, 2003, the ambitious Sagar Mala Project is being launched involving an investment of more than Rs. 1,00,000 crore over a period of next 8-10 years, financed largely through public-private partnership. The Project includes setting up of new ports, modernisation and expansion of existing ports and development of inland navigation. To begin with, integrated develpment of Nhava Sheva and Kochi Ports would be taken up.
A Long-Term Vision for Integrated Water Resources Development and Management was released by the Prime Minister on February 5, 2003. This envisages optimal sustainable development, maintenance of quality and efficient use of the country’s water resources.
The long-pending Sethusamudram Canal Project, announced by the Prime Minister, is expected to take shape soon. The project seeks to connect the Eastern and Western coasts of India.
Additional subsidies and promotional support have been given to inland waterways. The North-East region is receiving special attention in this regard.
Electronic Data Interchange (EDI) has been implemented in ports of Chennai, Mumbai, Cochin, JNPT, Tuticorin and Kolkata to facilitate movement of cargo from ports.
A new energy port at Ennore on the east coast, north of Chennai, has become operational.

RAIL CONNECTIVITY

National Rail Vikas Yojana, a Rs. 15,000-crore extra budgetary initiative, has been launched to strengthen the Golden Quadilateral and its diagonals connecting four metros to run goods trains at a speed of over 100 kilometre per hour and strengthen rail connectivity to ports, construct mega bridges on the Ganga, the Brahmaputra and the Kosi and to accelerate completion of last mile of other important projects. It is the most ambitious project for the development of Indian Railways since Independence. It has been launched during the 150th year of Railways.
J&K Rail Project : A natinoal project linking Jammu & Kashmir by rail from Udhampur-Katra-Qazigund-Srinagar-Baramula outside the Railway Budget has been launched. It is scheduled to open by August 15, 2007.
A non-lapsable Special Railway Safety Fund (SRSF) at a cost of Rs.17,000 crore has been set up with effect from October, 2001 to undertake renewal and replacement of over-aged railway assets. A National Technology Mission for Rail Safety will soon be launched.
Safety of rail services has been accorded the highest priority with the introduction of a ten year comprehensive Corporate Safety Plan (2003-2013) and acountability of railway functionaries fixed from the Railway Board at the apex down to the lowest level for lapses in safety. The Corporate Safety Plan has been worked out with a projected expenditure of Rs. 31,835 crore during the next ten years.
Construction of Delhi Metro, a rail-based transport system for Delhi has started in October 1998. The first phase of the project covering about 55 kms is costing nearly Rs. 8,155 crore.
An Anti-Collision Device ‘Raksha Kavach’ developed by Konkan Railway Corporation is being introduced on Indian Railways under a time-bound programme to put an end to train accidents by collision.
A prototype Skybus developed by the Konkan Railway Corporation, has been commissioned at Madgaon, Goa in October 2003.

AIR CONNECTIVITY

Decks have been cleared for the setting up of world class airports in Delhi and Mumbai. Infrastructure is being upgraded in 24 airports across the country. Government has also approved construction of new international airports at Bangalore and Hyderabad.
A comprehensive Civil Aviation Policy is on the anvil.
Air India has made a remarkable turn around. Continuing its earning streak, it has made profit for the first six months of this year, despite a very difficult time for civil aviation.
The proposed fleet acquisition programme is under consideration of the Government.
The designated airlines of ASEAN countries will be allowed to operate daily services to/from the four metropolitan cities of New Delhi, Mumbai, Chennai and Kolkata subject to equal reciprocal right to the Indian side. They can also operate as many services as they wish to/from 18 other important tourist points.
The designated airlines of Sri Lanka will be allowed to operate daily services to 6 metropolitan cities and as many services as they wish to 18 other important tourist destinations.
Private domestic carriers can now fly to the SAARC countries except Pakistan.
Air connectivity in the North-East has taken a leap with the introduction of fifty-seater aircraft. Flight frequency has been increased and new routes have been added.
For the first time in the country a low-cost regional airlines has been launched, which the government intends to encourage for making air journey affordable.

ENERGY SECURITY FOR THE COUNTRY AND THE COMMON MAN

The waiting period of 4-5 years for an LPG connection has been eliminated and connections are now made available across the counter – 3.92 crore new connections released from 1st April 1998 against 3.37 crore connections in the previous 40 years.
Small size 5 kg. LPG cylinder with refill cost of only Rs. 90 has been introduced for the benefit of people in hilly and remote areas and economically weaker sections. With kitchens becoming smoke-free, this will improve the health of women.
Government has decided to build 5 million tonne strategic crude oil reserve to guard against disruption of supplies.
Vietnam gas project commenced commercial production in December 2002 with India’s share of 3.5 MMSCMD of gas at an investment of about Rs. 900 crore.
Blending of 5 per cent ethanol with petrol has been successfully introduced from
1 January, 2003. This eco-friendly and renewable source of energy will result in significant savings in foreign exchange and also bring better price to sugarcane farmers. IOC and Indian Railways have signed an MoU to launch a pilot project for producing bio-diesel from non-edible oil seed plants like Jatropa (Ratan Jyot).
Contracts for eight Coal Bed Methane gas blocks have been signed and eight more awarded for the first time, heralding utilisation of a clean and alternative gas. India becomes the fourth country after the USA, China and Australia to harness CBM.
National Auto Fuel Policy framed laying road-map for supply of clean fuels including zero emission fuels. Rs. 10,000 crore has been invested in refineries for upgradation of fuel quality to improve the environment. Additional investment of Rs. 18,000 crore planned.
World’s longest LPG pipeline was commissioned traversing 1,270 km from Kandla/Jamnagar (Gujarat) to Loni (U.P) at a cost of Rs. 1,230 crore. This ensures smooth transport of the vital cooking fuel in Gujarat, Rajasthan, Haryana, Delhi and U.P.
The oil sector contributes about Rs. 6,000 crore a year through cess introduced in June 1998 on petrol and diesel for development of National Highways, rural roads and other road infrastrucure in the country.
Administered Pricing Mechanism dismantled from 1 April, 2002 to foster competition in oil sector so that consumers benefit through competition and improved customer service. Marketing rights granted to four more companies to add 55 per cent to the existing retail outlets (ROs) by sanctioning additional 11,159 ROs.
Self-sufficiency achieved with crude refining capacity almost doubling to 116.5 million metric tonne per annum (MMTPA) from about 62.2 MMTPA as in April 1998. Two new grassroot refineries at Jamnagar (Gujarat) and Numaligarh (Assam) were commissioned and three more are under construction at Paradeep (Orissa), Bhatinda (Punjab) and Bina (Madhya Pradesh) to add 24 MMTPA capacity at an investment of about Rs. 25,000 crore.
439 Kargil martyrs’ families awarded retail outlets and LPG distributorships. Nine outlets awarded to families of martyrs who successfully protected Parliament from attack by terrorists.

POWER: A STRONG PUSH TO REFORMS

A political consensus has been evolved with the active involvement of State Governments to pursue time-bound reforms in the power sector.
A comprehensive Electricity Act 2003 enacted to strengthen the power sector, encourage more capacity addition, protect consumers, smoothen electricity transfer, check power theft etc.
A six-level intervention strategy for distribution reforms has been outlined. To support the reforms, a specially designed, centrally supported Accelerated Power Development and Reforms Programme (APDRP) has been launched in 63 selected distribution circles all over the country to make them ‘Centres of Excellence’.
Comprehensive reforms of State Electricity Boards (SEBs) undertaken, nine SEBs corporatised and unbundled, Electricity Regulatory Commissions set up in 22 states for improving the power systems.
Privatisation of power distribution in Delhi and Orissa has already led to improved supply.
A programme to develop an integrated network of ‘transmission system’ having capacity to transfer more than 30,000 MW from surplus to deficit regions has been launched, which will ultimately lead to the ‘National Grid’.
To rationalise the tariff fixation mechanism, a Central Electricity Regulatory Commission has been set up.
A major thrust has been given for development of hydro power with the launch of 50,000 MW hydro-electric initiative by Prime Minister to generate power from untapped resources. The atomic energy programme has also been progressing well.
The Bureau of Energy Efficiency has been established. The Government’s plan to achieve 30% energy savings in Government buildings has well and truly begun in the Rashtrapati Bhavan and the Prime Minister’s Office.
Over 4,200 MW of power generating capacity using renewable energy sources has been installed. Wind power capacity has been increased by 600 MW. Over five lakh biogas units have been installed.
First project set up under National Programme on Energy Recovery from Urban and Industrial Wastes at Lucknow with 5 MW power plant for municipal solid waste (msw), two more six MW projects installed at Vijayawada and Hyderabad.
World’s largest solar cooking system for about 15,000 people installed at Tirupati-Tirumala Devasthanam (Andhra Pradesh) in October 2002.

STEEL AND COAL: STRENGTHENING THE CORE SECTOR

100 per cent FDI through the automatic route allowed in the iron and steel sector.
During the last five years, many major modernisation projects in the public sector undertakings in the Steel Ministry have been completed and new schemes taken up.
Steel Authority of India Ltd. (SAIL) is poised for a turnaround in 2003-04 following the successful implementation of the restructuring package approved in February 2000. The Company announced a record profit of Rs. 760 crore in the first half of 2003-04. During April to December, 2003, the Company surpassed all earlier production and sales records.
Visakhapatnam Steel Plant (VSP), another public sector unit which staged a turnaround in 2003-04, has achieved a record sales turnover of Rs. 3,541 crore during April to November, 2003 and earned a profit of more than Rs. 500 crore. Almost all PSUs including National Mineral Development Corporation (NMDC), Manganese Ore (India) Limited (MOIL), Metals Scrap Trading Corporation (MSTC), Bharat refractories Limited (BRL), under the Ministry have shown growth during the last five years.
World’s fast commercial Romelt technology-based iron and steel plant is being set up at Nagarnar in Chattisgarh.
The Government underlined its pro-worker attitude by completing construction of four lakh houses for coal workers -78 per cent of the work force in this sector will now have residential facility.
In 2002-03, the Neyveli Lignite Corporation (NLC) registered a record profit after tax of Rs. 1,148 crore.
The progressive Mineral Policy and attractive investment regime make the mining sector globally competitive. The policy allows foreign equity upto 100 per cent for minerals and upto 74 per cent in diamond and precious stones.
Foreign Investment Promotion Board (FIPB), so far, approved 73 applications for foreign direct investment in the mining sector amounting to about Rs. 4,044 crore.
Off-shore Areas Mineral (Development & Regulatinon) Act, 2002 notified in January 2003 for development and regulation of mineral resources in the territorial waters, continental shelf and other maritime zones of India.
National Aluminium Company Limited (NALCO) implemented a Rs. 4,206 crore expansion project to increase its mining, refinery and smelter capacity.
The mineral production and exports went up substantially during the last five years.
India hosted for the second time the World Mining Congress in November 2003. Over 1,500 delegates from 48 countries participated in the 19th World Mining Congres and EXPO 2003.

PSUs: INCREASED PROFITABILITY

The Central Public Sector Undertakings have made significant contributions to the national economy through overall improvements in their performance and productivity. Turnover, profitability and dividend are continuously increasing. Between 1998-99 and 2000-01, the turnover increased from Rs. 3,10,179 crore to Rs. 4,58,227 crore (up 48%); the net profits increased from Rs. 13,203 crore to Rs. 15,653 crore (up 19%); the contribution to the exchequer increased from Rs. 46,934 crore to Rs. 60,978 crore (up 30%); while dividend paid to the Government has gone up from Rs. 4,932 crore to Rs. 8,260 crore.
Total investment in PSUs enhanced by around Rs. 40,000 crore during the last three years.

TEXTILES: WEAVING A REVIVAL STRATEGY

Significant relief has been provided to the Integrated Textiles Units. The scheme intends to bring down the interest rate to 8-9 percent through a process of restructuring. The package is applicable to all the units in the organised sector with minimum debt exposure of Rs.2 crore.
The Government has launched the ‘Apparel Parks for Exports’ Scheme under which nine such parks have been sanctioned. The apparel parks will provide integrated infrastructure for setting up of world class apparel manufacturing units. They will also work as one stop shop for overseas buyers.
The Technology Upgradation Fund Scheme has been enlarged for powerloom units desiring to take loans upto Rs.50 lakh for modern machinery. For this the direct subsidy has been increased from 12 per cent to 20 per cent. The modified scheme came into effect from 15th September, 2003.
A new Group Insurance Scheme for powerloom workers has been started under which the insurance cover is Rs.80,000 for accidental death and Rs.50,000 for natural death with the Central Government and LIC bearing a major part of the annual premium.
Artisan Credit Card Scheme launched in December 2003. It will provide credit to over 2.5 crore artisans and handloom weavers at affordable interest of nine percent. Women artisans will get a half percent rebate in interest.

HOUSING: TOWARDS ‘SHELTER FOR ALL’

The Government is committed to facilitating the construction of 20 lakh additional housing units each year to meet the goal of Housing for All by 2010.
About 65 lakh dwelling units were sanctioned by the Housing & Urban Development Corporation Ltd. (HUDCO) during 28 years between 1970, the year of its inception and 1998. In contrast, in the last six years, the Government has sanctioned construction of nearly 73 lakh new houses. Of these over 50 lakh houses are in rural areas and 90 per cent are for poor families.
A new rural housing scheme Atal Grameen Griha Yojana will be introduced from April 1, 2004. It is expected to extend the housing sector boom from urban areas to rural areas. The National Housing Bank will identify ways of introducing flexibility for repayment of housing loans in line with harvesting seasons and other conditions peculiar to rural areas.
Further, HUDCO has sanctioned 53 lakh dwelling units in gross and under the Two Million Housing Programme from March 1998 to 31 December 2003.
The authorised capital base of HUDCO has been enlarged from Rs. 385 crore to Rs. 2,500 crore.
Similarly, HUDCO’s sanctions for urban infrastructure in the first 28 years were Rs. 4,040 crore; while in the last six years its sanction under this head was over Rs. 26,009 crore.
In 1999, the Government took the progressive step of repealing the Urban Land (Ceiling and Regulation) Act 1976. Many States have followed suit. As a result, large chunks of land are now available for housing.
Several fiscal incentives have been granted to boost housing construction activity. These include liberalised norms of financial assistance with tax concessions and housing loans at never-before cheap rates of interest.
To maintain the current high momentum of growth in housing, the Government has decided to continue interest deductible under income tax up to Rs. 1,50,000, for construction or purchase of a self-occupied house property. In addition, income from housing projects of prescribed specification, approved by the local authorities up to 31 March, 2005, will now be exempt from income tax.
The centre sanctions Rs. 500 crore for Dharavi in Mumbai to transform it from being Asia’s largest slum into an international model of urban renewal. This Rs. 5,000 crore project will be implemented by the State Government with the participation of the local community and the private sector.

JAI VIGYAN: LEADING WITH SCIENCE

A holistic Science and Technology Policy -2003 has been adopted, replacing the old policy of 1983. It presents a blueprint for India’s emergence as a major Knowledge Power.
Budgetary support to science and technology stands at an all-time high, Rs. 2,294 crore in 2002-03, as against Rs. 1,189 crore in 1997-98.
R&D is promoted in a big way in pharmaceuticals and biotechnology, in which India is fast emerging as a formidable player.
21 Jai Vigyan Science & Technology Missions have been successfully launched. An India Science Award of Rs. 25 lakh has been instituted to promote and recognise scientific excellence.
The New Millennium Indian Technology Leadership Initiative, which aims at making India a ‘leader and not a follower’ in technology, has led to the creation of the biggest Indian knowledge network after Independence. In this unique public-private partnership, more than 50 private sector companies and 120 public funded institutions are working on cutting edge technologies in areas such as advanced fuel cells, liquid crystals, bioinformatics software, and exploration of carbohydrates.
The Technology Development Board (TDB) continued its strong support to diverse projects in key areas of biotechnology, pharma and auto industry. Its partnerships include Telco’s Indica, Shantha Biotech (a successful indigenous vaccine producer) and NAL’s 14-seater indigenously designed and built aircraft, which was rolled out in February 2003.
Four new autonomous centres were set up, namely National Brain Research Centre (NBRC), Gurgaon; National Centre for Plant Genome Research (NCPGR), New Delhi; Institute of Bioresources and Sustainable Development (IBSD), Imphal; and Institute of Life Sciences (LS), Bhubaneswar.
India is now the global leader in mint oil production, meeting about 70 per cent of the world menthol/mint oil demand. This became possible by developing disease and pest-resistant varieties of mint. An area of 2,00,000 hectares is cultivated with these new varieties providing about 4 crore man days of employment.

SPACE: NEW FRONTIERS OF SUCCESS

In 2001, India took the first successful step in launching a satellite into geostationary orbit. This was GSLV’s first test flight. India now has the ability to launch satellites into polar and geostationary orbits. This puts us among the top six space-faring nations of the world.
PSLV-C3 placed three satellites in polar orbit in 2001-TES of India, PROBA of Belgium and BIRD of Germany – heralding an era of commercialisation in space.
We have produced our own dedicated remote-sensing and telecom satellites, namely the IRS series, INSAT series, and the exclusive meteorological satellite, METSAT, which was launched in September 2002. The METSAT series has been named after Kalpana Chawla.
India is also in the forefront of nations in bringing the benefits of space technology to development. The tele-medicine project launched by the Prime Minister in July 2002 links leading speciality hospitals in a number of cities with remote medical centres through VSAT terminals. Ground water prospect maps for six States have been released to help locate sites for drilling borewells.
A North-Eastern Space Applications Centre was set up at Shillong in December, 2000.
For the first time the Indian Space Research Organisation has started a comprehensive campaign involving the launch of 40 Rohini Sounding rockets for study of gravity waves in the atmosphere.

TOURISM & CULTURE

A new Tourism Policy has been adopted. Its key objectives are: positioning and maintaining tourism development as a national priority; enhancing and maintaining the competitiveness of India as a tourism destination; improving existing tourism products and expanding these to meet new market requirements; creation of world-class infrastructure; and developing sustained and effective marketing plans. It also ensures that the tourist to India gets physically invigorated, mentally rejuvenated, culturally enriched, spiritually elevated and “feels India from within”.
Allocation for tourism has been increased five-fold to Rs. 2,900 crore in the Tenth Plan. Of this, Rs.1,535 crore has been earmarked for development of tourism-related infrastructure. This envisages Integrated Development of seven Tourism Circuits, Product Infrastructure and Destination Development. Public-Private equity partnerships are envisaged.
Foreign Tourist Arrivals during January to December 2003 recorded an increase of 15.3 per cent over the previous year. This was achieved in spite of various negative perceptions about whole of South Asia due to SARS and terrorism activities around the region. Total foreign exchange earning through tourism during the year was estimated to be Rs. 17,049.41 crore which is about Rs. 3,000 crore more than the previous year.
In a major initiative, cultural tourism hubs are being developed across the country. Red Fort in Delhi, Ajanta and Ellora in Maharashtra, Kurukshetra-Thaneswar in Haryana, Mahabalipuram in Tamil Nadu, Hampi in Karnataka and Sibsagar in Assam are notable success stories. Over a hundred neglected monuments were restored, improved and their environment upgraded by the Archaeological Survey of India.
In order to provide employment opportunities and to increase income level in the rural areas tourism destinations are promoted in village areas. Development works have been sanctioned at following rural tourism sites during 2002-03-Kokkare Bellur(Karnataka), Hatwa Village(Madhya Pradesh), Mopungchuket (Nagaland), Raghurajpur (Orissa), Kamlasagar (Tripura), Phumen Ingti (Assam) and Jageshwar (Uttaranchal).
Much of the ancient wisdom of India is stored in a large number of manuscripts available with institutions and individuals all across the country. For the first time, a National Mission for Manuscripts has been launched with the aim of surveying, cataloguing, preserving, collecting and digitizing these invaluable manuscripts in a National manuscripts Library. Similar missions for Preservation of Antiquities, Monuments and Intangible Cultural Heritage are being taken up.
To commemorate the three major events in the cultural resurgence of the country, the Department of Culture has drawn up a detailed plan for reviving cultural and heritage yatras through the places associated with the three great yatras of Adi Shankara, Swami Vivekananda and Mahatma Gandhi.

HRD: FORTIFYING INDIA’S EDUCATIONAL EDIFICE

The University Grants Commission has been transformed into a University Development Commission. UGC has launched one of the world’s largest networks dedicated to making quality academic courseware accessible to about 300 universities and thousands of colleges across the country.
The University of Roorkee has been converted into an Indian Institute of Technology (IIT). Two new institutions – Indian Institute of Information Technology, Allahabad, and Indian Institute of Information Technology and Management, Gwalior, have been founded. Five new IITs are to be opened in the near future besides a number of new institutes of national importance.
The number of approved engineering colleges increased from 562 in 1997-98 to 1,203 in 2003-04. Student capacity has risen from 1,34,298 in 1997-98 to 3,56,268. All the seventeen Regional Engineering Colleges have been converted into National Institutes of Technology. Bihar College of Engineering is also to be made an NIT.
The Bharat Shiksha Kosh has been set up, and registered as a society to mobilise extra-budgetary support for education. It can receive donations from individuals, governmental bodies, NRIs and PIOs.
The Government has considerably increased support to Sanskrit education. The Rashtriya Sanskrit Sansthan, an autonomous organisation under the Ministry of HRD, has been converted into a Deemed University.
Computer Application and Multilingual Diploma Courses have been launched for promotion of Urdu. A National Programme of Learning Urdu via distance mode has been launched. Two major schemes for minorities education – Area Intensive Programme for Educationally Backward Minorities and the Scheme of Financial Assistance of Modernisation of Madrasas – have been merged into a unified, comprehensive scheme. Allocation for Urdu promotional activities increased tenfold between 1996-97 and 2002-03.
The Government has allowed universities, IITs and other educational institutions to start their own campus radio programmes.
A 24-hour TV channel ‘Eklavya’ exclusively dedicated to technology education was launched on the Republic Day 2003. This will benefit lakhs of engineering college students.
Nintey-nine per cent of total districts have been covered under adult literacy campaigns. Literacy reached 65.5 per cent in 2001 as compared to 52.2 per cent in 1991.

HEALTH: CLEAR GOALS, DETERMINED APPROACH

A National Health Policy has been approved, with stronger governmental commitment to primary health care and greater encouragement for private sector participation in secondary and tertiary health care. Health sector expenditure increased to 6 per cent of GDP.
The new National AIDS Policy has achieved final form. Its aim is to achieve zero level of infectivity by 2007.
National Population Policy (NPP) 2000 has been unveiled. A National Commission on Population has been set up to monitor implementation of the policy. Also, a Community Incentive Scheme has been introduced to encourage involvement of village communities in the national effort to stabilise population.
The Government has approved the setting up of the National Population Stabilisation Fund-Rashtriya Jansankhya Kosh-as an autonomous body with a seed capital of Rs. 100 crore. The Fund will mobilise resources from the private sector and charitable organisations for undertaking activities and programmes aimed at achieving a stable population.
A Bill proposing death penalty for persons producing and distributing spurious drugs has been introduced in the Lok Sabha during winter session.
The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 has been enacted by Parliament in April 2003.
Incidence of malaria has reduced from 2.28 million cases in 1999 to 2.03 million in 2001. Focused attention to malaria-prone areas led to more than 50 per cent decline in malaria cases in 2001 as compared to 1997 in 32 predominantly tribal districts in seven States.
Population coverage under the Revised National TB Control Programme has increased from less than 20 million in 1999 to 800 million at present. Nearly 60 million persons were covered under RNTCP in the second and third quarters of 2003. Entire population of the country to be covered by 2005.
Leprosy prevalence rate in the country has been brought down from 5.3 per 10,000 population in March 1999 to 3.36 per 10,000 population in September 2002. Leprosy has now been eliminated from 14 states.
Prevalence of blindness, which was 1.49 per cent during 1996-99 has been reduced to 1.1 per cent in 1999-2002. The number of cataract operations performed, especially for the poor, has increased from about 9 million during 1996-99 to about 11 million during 1999-2002.
The Safe Motherhood Programme was launched by the Prime Minister in April 1998. The slogan of the campaign, ‘Pregnancy is Precious, Let Us Make It Safe’, powerfully expressed one of the most crying imperatives of the social sector. The campaign sought to recognise the role of traditional dais and train them in new, hygienic and safe methods of delivery.
Sixty districts have been provided equipment to upgrade neonatal care facilities.
Efforts for eradication of polio have been stepped up and the number of polio cases has come down to 194 between January-November 2003 as against 1500 during 2002. Six rounds of pulse polio vaccination will be taken up this year and will be continued till the eradication of polio by 2005.
National Blood Policy has been approved.
Guidelines for bio-medical research framed.
Central Government Health Scheme (CGHS) rules simplified to provide credit facilities to patients at recognised private hospitals in case of emergency.
A premier postgraduate Medical institute at Shillong (NEIGRIMS) costing Rs. 422.60 crore approved.
Code of ethics for allopathic doctors – regulations of professional conduct, ethics and etiquette – approved.
Pilot project for testing the feasibility of introducing Hepatitis-B vaccine immunisation programme in slums launched.
The Government has given a big boost to Ayurveda, other Indian Systems of Medicine and Homeopathy by more than quadrupling the budget of this Department in five years.
The Essential Drug Lists for Ayurveda, Unani and Homeopathy medicines issued for the first time. Also, a Traditional Knowledge Digital Library documenting 35,000 Ayurvedic formulations has been launched.
A National Medicinal Plants Board has been established to give a special thrust to Indian systems of medicine and realise India’s huge potential in the production of standardised herbal products for domestic use and for exports.
For the first time a comprehensive programme to provide free Anti-Retro Viral Drugs to certain categories of HIV/AIDS patients like children under the age of 15 years and mothers with HIV/AIDS who approach public hospitals has been formulated. It will come in effect from 1st April 2004. About one lakh patients are expected to be covered at a cost of about Rs. 130 crores.
An Integrated National Vector Borne Diseases Control Programme incorporating the components of Dengue/DHF, Malaria, Filaria, Kala-azar and Japanese Encephalitis has been cleared by the Cabinet and will come into operation from April 2004.
New international norms for pesticide residues for bottled water were notified to take effect from 1st January 2004.
Joint Parliamentary Committee has been constituted to look into the controversy related to pesticide residues in cola drinks.
An additional 8,669 sub centres will be set up under Primary Health Centres in underserved states to provide better health services at grassroots level.

SOCIAL SECURITY NET: STRONGER AND WIDER

Over 6 lakh low paid workers exempted from contribution to the Employees State Insurance Scheme.
A unique social security scheme for agricultural workers, the Krishi Shramik Samajik Suraksha Yojana-2001, became operational from July 2001.
An insurance scheme for Indian workers going abroad for employment, The Pravasi Bhartiya Bima Yojana, 2003, became operational from 25th December 2003.
The compensation due to workers under the Workman’s Compensation Act was raised from Rs. 2.74 lakh to Rs. 5.48 lakh for disability and from Rs. 2.38 lakh to Rs. 4.56 lakh in case of death.
India will shortly become home to the second largest number of elderly persons in the world. The population of our elderly, at present estimated at 76 million, is expected to increase to 100 million in 2013. To enable them to live their life of retirement in dignity, the tax rebate to senior citizens has been increased to Rs. 20,000. As a result, their income up to Rs. 1.53 lakh will henceforth become fully exempt from income tax. To enable them to earn a reasonable and secure income from their life’s savings, a new ‘Dada-Dadi Bond’ will be introduced from April 1, 2004. All above 60 years of age will be eligible to subscribe to these bonds, which will carry a rate of interest higher than the prevailing market rate.
The Life Insurance Corporation (LIC) has launched a special pension policy, called Varishtha Pension Bima Yojana, guaranteeing an annual return of 9 per cent, in the form of monthly pension scheme benefitting citizens above the age of 55 years.
The Government has restored the Leave Travel Concession (LTC) to its employees. Among other things, this will benefit domestic tourism.

WOMEN’S EMPOWERMENT AND CHILD WELFARE

The Government declared year 2001 as Women’s Empowerment Year. The year was used to create widespread awareness about women’s rights and issues.
Five annual ‘Stree Shakti Puraskars’ have been instituted to honour distinguished women for their contribution to the empowerment of women at the grassroots level.
The Department of Women and Child Development launched a new scheme, ‘Swyamsiddha’, an integrated programme for the empowerment of women through the network of Self-Help Groups. The Department has also launched another scheme, ‘Swadhar’, which provides for holistic rehabilitation of women in difficult circumstances.
The Government has decided to extend the coverage of the scheme of Integrated Child Development Services (ICDS) in all the 5,652 blocks of the country. This is the world’s largest outreach programme for early childhood care and protection. The programme employs more than a million women workers, mostly from the poorer strata of society, for providing nutrition, childcare, immunisation and early education to children and mothers.
The Government has increased the honoraria of Anganwadi workers by Rs. 500 per month and of Anganwadi helpers by Rs 240 per month, with retrospective effect from 1st April, 2002. The Anganwadi workers and helpers constitute the largest single workforce of women anywhere in the world.
The declining female to male ratio in India’s population is a matter of serious concern. Ironically, the problem has become more acute in some states that are economically and educationally more advanced. The Government has passed the Medical Termination of Pregnancy (Amendment) Bill, 2002 to check the evil practice of female foeticide using sex-determination tests.
A National Charter for Children has been adopted. A National Commission for children is to be set up to address chidlren’s needs comprehensively.

SOCIAL JUSTICE AND EMPOWERMENT

Major revision of List of Scheduled Castes through three Constitutional Amendments for the first time in 26 years covering over 100 communities in 18 States; three Constitutional amendments made to restore relaxation/concessions available to government employees belonging to SCs/STs in the matter of promotion; over 650 castes and communities included in the central list of backward classes.
Priority to empowerment through education; Post-Matric Scholarship Scheme for SC students emerges as the biggest educational scholarship scheme; about Rs.570 crore central assistance provided under the Scheme to cover over 78 lakh beneficiaries.
22 lakh children of those engaged in unclean occupations provided Pre-Matric Scholarship; Scheme to continue during the 10th plan with enhanced scholarship rates.
Dr. Ambedkar National Merit Scholarships Scheme launched to promote merit among SC/ST students; First, Second and Third rank holders among SC/ST students in any Board examinations granted scholarships worth Rs. 60,000, Rs.50,000 and Rs. 40,000 respectively. Deserving SC/ST girl students, in case of not figuring among the first three rank holders, granted additional scholarship of Rs. 40,000 each.
Interest rate on loans to weaker sections reduced by one per cent.
Over 20 lakh Scheduled Castes beneficiaries extended financial assistance for employment-oriented schemes by Scheduled Castes Development Corporation.
New Micro-Credit Finance Scheme for Women Safai Karamcharis/ Scavengers launched to help them start small trades and thus free them from demeaning traditional occupation.
A New Scheduled Tribes Finance and Development Corporation (NSTFDC) was set up in April 2001, with the authorised share capital of Rs. 500 crore, as an apex institution for financing economically viable projects for Scheduled Tribes. Loans to the tune of Rs. 93.98 crores sanctioned during 2002-03 and Rs. 42.16 crore was released for tribal enterprises. Sanctioned target of Rs. 100.00 crore set for the year 2003-04
Under the Scheduled Castes and Scheduled Tribes Legislative Amendment, 2002, 42 new tribal communities of different states have been included and 16 tribal communities from the existing list have been deleted. Also, there is proposal for inclusion of another 86 communities.
One hundred and thirty-seven Special Courts and Special Cells set up in various states for prevention as well as trial of cases of atrocities against Scheduled Castes & Scheduled Tribes.
One hundred Social Justice Centres to be set up across the country as announced by the Prime Minister to facilitate awareness, assistance, rehabilitation and training of target groups upto village level under one roof.
Swarnima Scheme benefits over 23,000 poor OBC women.
The Government announces a separate Commission for Denotified and Nomadic Tribes.

SPORTS & YOUTH AFFAIRS

India to host 2010 Commonwealth Games.
The First Afro-Asian Games held in October/November 2003 in Hyderabad.
A new Youth Policy 2003 announced.
The Department of Youth Affairs & Sports upgraded to a separate Ministry in 2000.
To rekindle the spirit of voluntary social work among the youth, the Government has launched the scheme of National Reconstruction Corps in 120 districts.
The Prime Minister announced a five-fold increase in the allocation for sports in the Tenth Plan compared to the Ninth Plan.
Cash awards for medal winners in all major sports events have been enhanced by almost 20 times, to provide attractive incentives to outstanding sportspersons.
India recorded her best-ever international performance at the Manchester Commonwealth Games, followed by another impressive show at the Busan Asian Games.
The All India Council of Sports has been revived after a gap of 20 years to guide the country’s efforts to become a strong player in international sports.

LEGAL REFORMS FOR FASTER JUSTICE

In a historic initiative, the Government received Parliamentary assent for the Freedom of Information Bill, 2002, which introduces greater transparency and openness in the functioning of the Government and public bodies.
Fast Track Courts have been set up across the country to alleviate the fate of about 2 lakh undertrials languishing in various jails by deciding their cases on priority on a day-to-day hearing basis. Sessions cases pending for more than two years have also been earmarked for disposal through the fast track route. Of the 1,734 Fast Track Courts sought to be established, 1,194 have already been set up by September 2002, of which 869 have become functional. These courts have disposed of 63,581 cases out of 1,63,025 cases transferred to them so far.
Section 125 of Criminal Procedure Code has been amended to provide for a guaranteed interim compensation within 60 days to separated/divorced women and the ceiling on such compensation has been removed. Previously, the aggrieved person, wife, children and parents, had to wait for years to get maintenance for which an upper limit of Rs.500 was fixed since 1955 and remained unchanged thereafter.
Realising that the Government is a party to litigation in a bulk of cases, the Legal Services Authorities (Amendment) Act, 2002 has been enacted. It provides for compulsory pre-litigation conciliation for settlement of cases relating to the public utility services like transport, postal, telegraph, telephonic service, supply of power, water, sanitation, hospitals and insurance. This provision would filter out a large number of cases before they reach the courts.

CARING FOR THE ENVIRONMENT

The outlay for afforestation has been doubled to Rs. 1,025 crore in the Tenth Plan. Joint Forest Management has been given a special thrust so as to promote people’s participation. National Green Corps (NGC) launched with the setting up of eco-clubs in 150 schools in each district.
India acceded to the Kyoto Protocol, the most significant agreement as yet to combat climate change, in August 2002, reaffirming its commitment to strengthen global efforts to tackle global warming.
India hosted the prestigious 8th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP-8) during October-November 2002 in New Delhi. The conference established India’s standing in global environmental statesmanship and provided impetus to Clean Development Mechanism. The Delhi Declaration adopted at the end of the conference strongly articulated the concerns of developing countries, and firmly established the link between climate change and sustainable development.
As a major step for introduction of transgenic crops, the government has cleared the commercial cultivation of genetically modified Bt cotton, which is an insect-resistant crop. Evaluation trials have indicated substantial increase in yields with concomitant reduction in the number of insecticidal sprays.
The Ministry of Environment and Forests, in coordination with the concerned ministries, has taken several measures for control of vehicular pollution in the four metros. These measures include adoption of alternative fuels like CNG. Implementation of these measures has resulted in improved air quality in these cities. Action plans for pollution control in 24 major cities have been drawn up.
The Government has approved a National Action Plan for Conservation of Wildlife. Apart from combating poaching and illicit trade in wildlife and wildlife products, the strategy aims at safeguarding the interests of the poor and tribals living around protected areas.

DEVELOPMENT OF THE NORTH-EASTERN STATES

The North-Eastern region was accorded greater attention by the government. To ensure sustained attention, a separate Department of Development of the North-East Region was set up in September 2001.
A number of infrastructure projects have been set up through the Non-Lapsable Central Pool, through which more than Rs. 1,500 crore has been released so far.
A special package for strengthening Doordarshan and All India Radio infrastructure in the North-East has been approved for implementation during the Tenth Five Year Plan.
Each one of the 487 blocks in the North-East has been provided with a modern information centre. Each Centre comprises five computers and an internet connection provided over a satellite link. Many of these areas were completely cut off from the rest of the country and these centres have in many cases, provided a communication link for the first time to the people of the North-East.
A Rs. 329 crore project to strengthen technical education in the North-East Region has started from January 2001.
The North-East Council has been activised. It is focusing on inter-state projects, and now has an annual budget of Rs. 450 crore. Sikkim has been included as the 8th State of the Council.
Prime Minister announced an economic package for development of Nagaland in October 2003.
Training programme for North-Eastern youth arranged in association with NIC & DOEACC, NIFT & SEWA.

Published in 2004

5 years…….

More than 3 crore-telephone connections have been issued as against only one crore and eighty-six lakh connections in the previous 50 years.
More than 3 and half crore gas connections were released as against 3 crore and 37 lakh during the last 40 years.
In the last 2 years, Kisan Credit Cards have been issued to 3 crore farmers under which Rs.50,000 crore loans have been disbursed.
High quality four and six lane National Highways are being built at a rate of 5 Kms per day targeting a total of 14,846 Kms while only 556 Kms of four lane National Highways were built during the previous 50 Years.
11 Kms per year in the last 50 years, 11 Kms per day now.
Rs.14,047 crore have been sanctioned through HUDCO for the construction activity against Rs.l0,390 crore in the previous 20 years.
Over 80 lakh houses were constructed for poor people and housing loan interest rates are reduced considerably.
Antyodaya Anna Yojana, the world’s largest food security programme was taken up benefiting 1.5 crore poor families by spending Rs.1500 crores.
Country’s Foreign Exchange Reserves have increased from US $ 32.5 billion in 1998 to more than US $ 93 billion.
Country demonstrated its capability to launch satellites into Geo-stationary orbit joining the elite Club of six with such ability.

Sector-wise details.…
Agriculture – Jai Kisan Initiatives

For the first time, the country has come to have a National Agriculture Policy
Rs. 3.0 crore Kisan Credit Cards have been issued in the last three years. Rs.50,000 crore loans have been disbursed to farmers through these cards.
National Agricultural Insurance Scheme being implemented in 19 states and 2 Union Territories.
Interest rate charged for Kisans reduced to 9% from 14%.
Claims of Rs.l,231.81 crore paid against a premium of Rs.496.23 crore under the Insurance Scheme.
Rs.5,800 crore invested in Accelerated Irrigation Benefit Programme to create additional irrigation potential of 8.5 lakh hectares mainly in tribal and drought prone areas in various States.
Another 1.4 lakh hectares of irrigation potential created by completing 2,453 minor irrigation schemes with central assistance of Rs.170 crore.
Sugarcane farmers’ problems are being addressed comprehensively.
Minimum Support Prices of various crops consistently increased.
Rice exports increased by about 5 times and wheat exports by 50%
For the first time in the country, 28 Agricultural Export Zones being set up in 14 states with an investment of Rs.781 crore.
Price Stabilization Fund of Rs.500 crore set up for the benefit of tea, coffee and rubber farmers.

Rural Development

The NDA government created a separate Ministry for Agro & Rural Industries. The Rural Employment Generation Programme (REPG) under this Ministry has assisted 1.5 lakh entrepreneurs creating 16 lakh jobs.
An independent Ministry was created for Small Scale Industries (SSI) for handholding, facilitation and advocacy
Rs.60,000 crore Pradhanmantri Gram Sadak Yojana (PMGSY) was laid in December 2000 to provide all weather road connectivity to villages with population of more than 1000 by 2005 and with more than 500 by 2007.
Under PMGSY, Rs.8,000 crore disbursed to state governments and construction began in about 20,000 villages.
Rs.10,000 crore Smapoorna Grameen Rozgar Yojana (SGRY) launched in September 2001, the largest ever Food for Work Programme in the country.
Under SGRY, 47.63 lakh tonnes of food grains released to drought affected states between April 2002 and January 2003. (To take figure since 1999)
Under Swarnajayanti Gram Swarozgar Yojana (SGSY) launched in April 1999, about 12 lakh Self-Help Groups have been formed. 32.48 lakh self-employed people extended assistance.
12.75 lakh habitations fully covered and another 1.31 1akh partly covered under Accelerated Rural Water Supply Programme (ARWSP)
Swajaldhara, a new drinking water programme launched in December 2002 to provide 90% of assistance directly to Panchayats.
Antyodaya Anna Yojana scheme extended to cover additional 50 lakh families at a cost of Rs.l500 crore per year.
Food grains being provided at subsidized rates to NGOs and religious establishments to support Mid Day Meal scheme for poor children.
Deregulated and delicensed entire food processing sector except alcoholic beverages and SSI reserved products to be eligible for priority sector lending.
Haryali, a new initiative launched in January 2003 for development of watersheds through Panchayati Raj Institutions.

Infrastructure and Connectivity

The Government has launched major connectivity programme – air connectivity, rail connectivity, port connectivity, highway connectivity, rural road connectivity, telecom and internet connectivity, river connectivity, connectivity between India and the Indian diaspora and political connectivity of regional and national parties coming together.
In addition to Rural Connectivity programmes, 4 and 6 lane National Highways being developed over a length of 14, 846 kms.
Completion of Golden Quadrilateral to save Rs.8,000 crore in fuel costs per year.
National Highway Development Project will create 18 crore man-days of employment. Its Phase-1 is already creating 2.5 lakh direct employment opportunities every day.
Construction of new international airports at Bangalore and Hyderabad.
Upgradation of airports at Mumbai, Delhi, Chennai and KoIkata to world standards.
Air connectivity to North-East given a big leap with introduction of 50 seater aircraft and increase in frequency.
Rs.12,500 crore state of the art Delhi Metro Rail Project making rapid progress.
16 Jan Shatabdi trains introduced as against the total of 16 such trains introduced since 1986.
Over 3,712 MW of power generation capacity installed based on renewable energy sources. More than 5 lakh biogas units have been installed.
Special drive launched to ensure access to public phone to every village
Indian Waterways Authority to promote private investment and to develop waterway infrastructure.
Public Call Offices (PCOs) increased from 4.2 lakh in 1998 to over 12.7 lakh in 2002.
Telephone call rates drastically brought down
Mobile phones increased from 14 lakhs in 1999 to over 2 crores now.
A Grameen Sanchar Sevak Scheme launched in December 2002 to provide postal services to 8000 villages.
Every year Union Government provides Rs.1,000 crores to improve State Highways and others.
Golden Quadrilateral connecting Delhi, Mumbai, Chennai and Kolkata is being completed on highest priority.
Accelerated Power Development and Reforms Programme has been launched in 63 Distribution Circles all over the country.
Over 3,712 MW of power generating capacity using renewable energy sources has been installed.
Competition enhancing and consumer friendly have resulted in drastic reduction of communication charges.
The National Rail Vikas Yojana with a corpus of Rs.12,000 crores will involve accelerated development and strengthening of rail connectivity of the Golden Quadrilateral to run goods train.
National Railway safety fund of Rs.17,000 crores has been setup.
50 new trains introduced & 16 Jana Shatabdi Express trains launched.

Health

A National Health Policy announced.
Universal Health Insurance Scheme launched. A premium of Re.1 per day entitles an individual to get medical reimbursement upto Rs.250 a day and an insurance cover of Rs.25,000 in case of death.
Health sector expenditure increased to 6% of GDP.
Central Government Health Scheme (CGHS) to provide health care facilities to patients extended at recognised private hospitals.
Integrated Child Development Scheme (ICDS) extended to all the 5,652 blocks of the country.
Honorarium for Anganwadi workers increased by Rs.500 per month and of Anganwadi Helpers by Rs.240 per month.
Budget support to Ayurveda tripled.
Six AIIMS level institutes are being established in different regions at the cost of Rs.1800 crores.

Women’s Empowerment & Child Welfare

The Medical Termination of Pregnancy Bill was passed to check the evil practice of female foeticide using sex determination tests, and to check the falling sex ratio.
Integrated Child Development Services (ICDS), worlds largest outreach programme employing more than a million women for providing nutrition, childcare, immunisation and early education.
‘Swyamsiddha’, an integrated programme for empowerment of women through Self Help Groups.
The age limit for Women Entry Officers’ Scheme in the Defence Forces has been relaxed for widows, providing an opportunity to rehabilitate.
The Indian Evidence (Amendment) Bill was passed so as to prevent cross-examination of a rape victim on past character, and to uphold her dignity.
Five annual ‘Stree Shakti Puraskars’ to honour distinguished women for their contribution to the empowerment of women at grassroots’ level.

Social Welfare

5 restrictive Office Memoranda issued by the previous governments revoked to benefit SC employees. It is a historic move to benefit Schedule Caste & Schedule Tribe people.
Independent Ministry of Tribal Welfare created.
Separate National Commission for Tribals.
Scholarships to 18 lakh SC and 5 lakh ST students have been awarded in 2002-03 alone.
Dr. Ambedkar National Scholarship Scheme for SC/ST students of Class X.
Loan assistance of about Rs.900 crore provided to tribal enterprises during 2001-02 alone.
Concessional ration facility increased from 10 kgs per person to 35 kg per person for 26 crore people below poverty line.
More than 85 lakh tones of food grains provided free of cost to states under various welfare programmes to provide relief to the drought affected people.
First time in the history, 4 members of the Tribal Community are included in the Central Cabinet.
Adivasi Mahila Sashaktikaran Yojana launched for the empowerment of tribal women.
National Scheduled Tribes Finance & Development Corporation (NSTFDC) launched with Rs.500 crore funds.

Home Affairs

Free and fair elections held for J&K Assembly, which was internationally acclaimed.
Major successes against terrorist outfits in J&K
POTA introduced to fight terrorism
As many as 200 ISI modules busted in various parts of the country.
Top terrorists and ISI agents were killed.
North-East Peace Process given a dynamic momentum.
Modernisation of Police given thrust through assistance to States.
Three new states of Uttaranchal, Chattisgarh and Jharkand were formed fulfilling the longstanding aspirations of the people of the regions.
Island Development Authority (IDA) activated for speedy development of Andaman & Nicobar Islands.
India signed extradition treaties with a number of countries to facilitate deportation of criminals.
Border fencing for 2,429 kms at a cost of Rs.1,334 crores. The work is going on war footing.
Past three years have seen the large Indian Diaspora develop an increased sense of belonging to its cultural motherland. PIO card is being introduced.
New Ministry created to look after North Eastern States.
Constitutional Amendment to plug loopholes in the anti-defection legislation.
Ceiling imposed on the size of ministries in the Centre and the states.

Economy

The GDP grew at 8.4 % against the world average of 3 %.
Indian Economy is the fourth largest in the world, on purchasing power parity.
GDP in 1998 was Rs. 13,90,148 and in 2003 it is Rs.22,36,128 crores.
Exports stood at Rs.2,50,130 crores in 2003 from Rs.1,30,101 crores in 1998.
IT exports grew from Rs.10,940 crores in 1998 to Rs. 45,500 crores in 2003.
The number of mobile phones grew from 15.5 lakhs in 1998 to 1.5 crores in 2003.
Number of Internet users grew from 12 lakhs in 1998 to 1.3 crores by 2003 and still growing.
During the last 50 years, about 3.43 lakh telephone connections were issued in the rural areas. In the last 5 years alone, 1.67 lakh connections were issued.
India’s viewpoint was effectively highlighted at Cancun to protect the interests of not only our country but also the developing countries.
Despite global economic downturn, frequent droughts and floods, our economy continued to be the fastest and steady growing one.
Current account of balance of payments has become positive after 24 years.
Pre-payment of external loans of US $ 3 billion.
Exports continued to grow by 20% per year.
Foreign exchange reserves have reached an all time high of $ 100 billion.
Lowest inflation – 3% average.
The Indian rupee has emerged as a strong international currency. It appreciated 5% against the dollar in 2003.
No line, no que, no waiting list, no shortage, so no black market. All goods are available at affordable prices.
Rs.25,000 crores textile upgradation fund has been launched to give boost to the textile industry.
100 out of Fortune 500 companies have opened their R&D centres in India.
Over 2 lakh indigenously built Indica cars are been imported by Rover Company to market them in Europe. 12 countries are importing automotive spare parts from India and the list is growing.
India has become a preferred destination for health care.
New employment opportunities created in the year 2000, 2001 & 2003 are 73.3, 78.6 & 82.7 lakhs respectively.
Legislation to enable banks & financial institutions to reduce their non-performing institutions through securitisation and reconstruction of assets.
Bank Interest Rates at the lowest since 1973 providing strong stimulus to growth and investment.
Housing sector given top priority, interest rates at their lowest at 8%.
During 25 years of its existence, HUDCO has given loans to the tune of Rs. 25,000 crores. During the past five years alone, it has given Rs.12,000 crores.
The Public Sector units performance has improved. Their turnover has improved from Rs.3,50,000 crores to Rs.45,000 crores.

Defence

Modernisation of armed forces neglected during the previous 15 years given thrust.
AGNI-I Missile with 800 Kms range successfully test-fired twice
AGNI-II Missile with 2000 Kms range successfully developed and inducted
BRAHMOS, the supersonic missile venture between India and Russia flight successfully tested five times.
Multi Barrel Rocket System, PINAKA ready for induction. It can fire 12 rockets in less than 40 seconds.
The biggest ever Rs.18,000 crore Defence Housing Project launched to provide housing for soldiers.

Information Technology

Information Technology made India a software superpower.
Software and Service industry emerged as the fastest growing sector accounting for 2% of GDP in 2001-02.
Software and services industry has emerged as one of the fastest growing sector in the Indian economy.
Software exports have grown from Rs.6,500 crore in 1997-98 to over Rs.40,000 crore now.
Electronics & IT industry recorded a production of about Rs.90,000 crores during this year.

Social Security

The national minimum wage has been revised to Rs. 50 per day.
The compensation due to workers under Workman’s Compensation Act, was raised to Rs.2.74 lakhs for disability and from Rs.2.30 lakhs to Rs.4.56 lakhs in case of death.
Income upto Rs.1.53 lakhs is fully exempt from income tax for Senior Citizens.
Varishtha Bima Yojana, a special pension plan for citizens above 55 years guaranteeing annual return of 9% return in the form of monthly pension.
Participating Universal Health Insurance scheme for the poor.
Social security for the unorganised labour, benefits 37 crore people.

Human Resource Development

86th Constitutional Amendment entitles all children between the ages of 6 & 14 to receive free and compulsory education.
Sarva Shiksha Abhiyan, launched in November 2000, is the largest ever education programme to achieve the goal of universal elementary education. A sum of Rs. 9,500 crore has been sanctioned to 576 districts for this programme.
Number of approved engineering colleges has more than doubled from 562 in 1997-98 to 1,203 in 2002-03.
14 Regional Engineering Colleges have been converted to National Institutes of Technology.
The NCERT has revised textbooks to remove the distortions in the teaching of Indian history.
Tuition fee of the Indian Institute of Management (IIM’s) reduced from Rs.1.5 lakh per year to Rs.20,000, giving enormous financial relief to meritorious students.

Foreign Policy

Country’s image and standing among the comity of nations significantly enhanced.
Pursuing Foreign Policy goals from a position of strength.
Succeeded in effective presentation of India’s perspective on Kashmir and terrorism.
Effectively neutralized Post-Pokhran sanctions within one year of the tests.
Large Indian Diaspora is being increasingly involved in nation building.
India’s case for a Permanent seat in the United Nations Security Council received wider support.
Prime Minister’s visit to US, G-8 Conclave, China, South East Asia – all are resounding success.
Pravasi Bharatiya Diwas annually observed.
Dual citizenship for certain countries mooted.
NRIs taking active interest in promoting India’s interest abroad.
India has added a new dimension to her foreign policy by launching the look-east initiative to strengthen our age-old relations with countries in South-East Asia and East Asia.

Milestone Legislations

Anti defection law
Right sizing the ministry
Open voting in Rajya Sabha
Proxy voting defence personnel
The Insurance Regulatory & Development Act
The Telecom Regulatory Authority Act
The Inland Waterways Authority of India Act
The Indian Divorce (Amendment) Act, to remove gender inequality and procedural delays in divorce decrees.
The Trade Unions (Amendment) Act, to
reduce multiplicity and bring internal discipline.
The Prevention of Terrorism Act.
The Patents (Amendments) Act, to protect national interests in intellectual property rights.
The Haj Committee Act, to ensure better management of the annual pilgrimage by Indian community.
The Foreign Exchange Amendment Act.
The Constitution (Seventy-Ninth Amendment) Act, to reserve seats for SC/ST candidates in Lok Sabha/ Legislative Assemblies for another 10 years.
The Constitution (Eightieth Amendment) Act, to give effect to the Tenth Finance Commission recommendations relating to the alternative scheme of devolution of share in Central Taxes to the States.
The Constitution (Eighty-First Amendment) Act, for non-clubbing of backlog reserved vacancies with fresh vacancies for SC/ST.
The Central Road Funds Act, to create a dedicated fund for development & maintenance of Highways.
The Negotiable Instruments (Amendment) Bill, to enhance the punishment for dishonour of cheques.
The Constitution (Eighty-Six) Amendment Act, for right to free & compulsory education for children of 6-14 years of age as a Fundamental Right.
The Freedom of Information Bill, to provide access to information under the control of Public Authorities.
The Consumer Protection (Amendment) Bill, to quicken disposal of complaints and strengthen dispute redressal agencies.
The Prevention of Money Laundering Bill.
The Delhi Metro Railway Bill.

And more.…..

Varistha Bima Yojana for senior citizens.
Raja Rajeswari for women.
Bhagya Shree for girl child.
Jana Shree Bima Yojana for the unorganised.
Commission to explore reservations for economically backward class among the forward castes.
Commission for welfare of disabled people.
Commission for De-notified tribes.
The Rural Employment Generation Programme (REGP) assisted 1.5 lakh small entrepreneurs to set up production units creating 16 lakh employment opportunities.
Independent Ministry of Small Scale Industries was set up during NDA Government.
Introduced Artisans Credit Cards.
Babasaheb Ambedkar Hastshilp Yojana launched to benefit artisans through marketing support.
Deen Dayal Upadhya Hathakargha Yojana was launched to assist revival of handloom sector with an outlay of Rs. 690 crore.
Entertainment sector including films recognized as Industry making them eligible for commercial financing.
Prasar Bharati commenced 24-hour telecast for 16 channels, including the regional satellite channels in 9 languages.
24-hour Doordarshan News Channel launched from November 1, 2003 to meet the growing needs of the public service broadcasting.
All channels are been given up-linking facility.
India is becoming media hub.
Till 1998 no TV channel was permitted to uplink with India, whereas this Government granted 18 TV channels.
Tourism Hubs : 35 centres of excellence were created in various parts of the country.

Political stability

The coalition NDA government has successfully demystified the perception that non-Congress governments cannot provide stable governance.
Relations between the Centre and States are at its best. No discrimination against any state government
The NDA government has proved to be an effective coalition of regional aspirations and national goals.
Shri Atal Bihari Vajpayee is the first non-Congress PM to complete 5 years in office. He has provided stability with ability.

AGRICULTURE

The country is used to waxing eloquent about the importance of agriculture in the nation’s socio-economic context. It is, however, ironic that the country never had a National Agricultural Policy till it was announced in July, 2000 by the present Government. This is an indication of the Government’s keenness to address to the problems confronting this important sector in a focussed manner. The Government has also heralded a new approach towards management of agriculture sector by reorienting the approaches and strategies. New macro-management in agriculture planning; national policies on cooperatives and seeds; restructured and expanded National Agricultural Insurance Scheme; National Agricultural Technology Project; and a Millennium Study on the status of Indian farmer, are some of the illustrations that reflect the Government’s sincerity in bringing about a difference in the agriculture sector.

National Policies

The first ever National Policy on Agriculture aims at a growth rate in excess of four per cent per annum in the agriculture sector based on efficient use of resources and conservation of soil, water and biodiversity. The policy seeks to realise the unsourced growth potential of Indian agriculture; strengthening rural infrastructure for faster agricultural development; promote value addition; accelerate the growth of agro business; create employment in rural areas; secure a fair standard of living for the farmers and agricultural workers and their families; discourage migration to urban areas; and face the challenges arising out of economic liberalisation and globalisation. While aiming at four per cent annual growth rate in agriculture sector over the next two decades, the policy seeks to achieve growth with equity i.e. growth which is wide-spread across the regions and farmers. Emphasis will be on maximisation of benefits from export of agricultural products.

The National Seeds Policy, 2002, envisages timely availability of quality seeds, compulsory registration of seeds, quality assurance, promotion of seed industry, abolition of licences for seed dealers, import of best quality of seeds and creation of Seed Banks and National Seeds Grid. The policy seeks to encourage investment in research and development to ensure availability of high yielding varieties of seeds.

The Draft Seeds Bill 2002 is under consideration. To replace the existing Seeds Act, 1966, the new Bill provides for compulsory registration of seed varieties besides deregulation and decontrol of the seed industry. A scheme for implementation of Legislation of Plant Varieties and Farmers’ Rights Protection has been launched.

Macro-management

The Government has introduced reforms in the management of the public system of agriculture with a view to enabling the States to focus on primary initiatives, while the Centre will supplement and complement these efforts besides undertaking independent initiatives. The reforms package formulated in consultation with the States enables the Government to shift over to macro management mode from the programmatic approach. Under the new system, the Central assistance to States will be provided through regionally differentiated work plans focussing on location specific, crop specific and need based approach implemented in a spirit of partnership with the States. This bold initiative helps in realising the full potential of growth in every region, narrow down regional and crop imbalances to accelerate the growth in every region ensuring food and nutritional security. This also helps in doubling the food production in ten years.

Technology Mission for North-East

A Technology Mission on Integrated Development of Horticulture in the North-Eastern States and Sikkim was launched in 2001-02 with an outlay of Rs.585 crore to be invested in the region by 2007. Under the Mission, area under horticulture has been expanded by 11,592 hectares in 2001-02.

On-Farm Water Management in Eastern India

This scheme has been launched in 171 districts of U.P., Bihar, Jharkhand, West Bengal, Assam, Orissa, Chhattisgarh, Manipur, Mizoram and Arunachal Pradesh. Eastern India, with its abundant water resources and fertile soil, has the potential for substantially increasing the productivity of different crops and a major scheme like On-farm Water Management will go a long way in increasing productivity of this region. The scheme will be financed through bank loans and subsidy by the Government.

National Agricultural Technology Project

This World Bank aided project is being implemented by the Indian Council of Agricultural Research and the Department of Agriculture and Cooperation of the Government since November, 1998. Since then it has made significant progress in agro-ecosystem research, innovation in technology dissemination and organisation and management system. Major achievements include: establishment of referral laboratories on pesticide residues which will allow monitoring of pesticide residues, certification of export commodities and development of trained human resources, technology interventions through 70 Centres of Institution-Village Linkage Programme (IVLP) covering 246 villages and about 60,000 farm families resulting in dissemination of location-specific technology; release of two quality protein maize hybrid Shaktiman-I for UP and Bihar and Shaktiman-II for Bihar, which will remove protein malnutrition among people subsisting on maize.

Agricultural Insurance

Under the National Agricultural Insurance Scheme (NAIS), launched during the Rabi season of 1999-2000, an amount of Rs.1,661.23 crore has been paid to the farmers during the first five crop seasons as against payment of Rs.2,297.22 crore during the previous 15 years of implementation of Comprehensive Crop Insurance Scheme (CCIS). NAIS has proved to be a significant improvement over its predecessor CCIS, following enlargement of the scope of coverage by extending it to non-loanee farmers, annual commercial and horticultural crops. The allocation for agricultural insurance has been increased to Rs.1,500 crore during the 10^th Five Year Plan as against the actual expenditure of Rs.1,031.49 crore during the 9^th Plan.

To boost the seed production, a pilot scheme on seed crop insurance has been launched to cover the risk factor involved in the production of seeds.

Agriculture Credit

Emphasis has been laid on progressive institutionalisation for providing timely and adequate credit to farmers for increasing agriculture production and productivity. The flow of institutional credit for agriculture and allied activities has increased from Rs.31,956 crore in 1997-98 to Rs.66,771 crore in 2001-02. The total credit flow from all agencies during the 9^th Plan is estimated to be Rs.2,33,700 crore marking an increase of Rs.4,000 crore over the target. The total credit flow during the 10^th Plan has been projected at Rs.7,36,570 crore.

To reap the full benefits of the declining rates of interests to critical sectors like agriculture, the State Bank of India has announced an interest band of two per cent above and below the prime lending rate (PLR) for secured advances. The Indian Bank Association is advising all its member banks to adopt the same structure.

Kisan Credit Cards

The scheme has been launched to provide adequate and timely support from the banking system to the farmers for their cultivation needs, including purchase of all inputs in a flexible and cost effective manner. Since its launch in 1999-2000, the scheme has made rapid progress. Till the end of October, 2002, 2.90 crore Kisan Credit Cards have been issued.

Enhancement in Storage

National Horticulture Board (NHB) is implementing major schemes for construction/expansion/modernisation of cold storages and storages for horticultural produce, development of commercial horticulture through production and post-harvest management, technology development and its transfer for promotion of horticulture. Additional cold storage capacity of 25.21 lakh tonnes has been created by 2001-02 for agricultural and horticultural produce.

Grameen Bhandaran Yojna

The scheme of construction, renovation and expansion of rural godowns, called Grameen Bhandaran Yojna, was launched during 2001-2002. The main objectives of the scheme are: creation of scientific storage facility for agricultural produce; promotion of grading, standardisation and quality control of agricultural produce; and prevention of distress sale by farmers immediately after harvest. The scheme provides facility of pledge-financing and marketing credit. Under the scheme, creation of new 18.3 lakh MT and renovation of 1.5 lakh tonnes of rural storage capacity has been targeted to be achieved by 2002-2003. The Government will provide financial assistance of Rs. 90 crore by way of subsidy. The scheme will immensely benefit farmers, especially the small and marginal ones, and will improve the marketing infrastructure in rural areas.

Agriclinics and Agribusiness Centres

The scheme of Agriclinics and Agribusiness Centres has been launched in 2001-2002 with the objective of using unemployed agriculture graduates to provide extension services to the farmers on payment basis by setting up their private ventures. This will also create self-employment opportunities for agriculture graduates. The ventures will be financed through bank loans. NABARD will give the re-finance facility to the banks implementing this scheme. The Government provides training to agriculture graduates willing to set up agriclinics and agribusiness Centres. The entire cost of training is borne by the Government. In 2001-2002, the scheme was advertised throughout the country and agriculture graduates were asked to indicate their willingness for training and setting up their ventures. More than 12,000 applicants have indicated their willingness to benefit from the scheme so far. Training programmes have been organised for 618 persons out of whom 436 persons have completed their training.

Marketing Reforms

The inter-Ministerial task force set up by the Ministry for strengthening and developing agricultural marketing system in the country has submitted its report on June 28, 2002. The report has outlined several reforms in the agricultural marketing sector to benefit the farming community from the new global market access opportunities, to foster true competition among the market players and to enhance the share of farmers in the ultimate price of his agricultural produce. The reform measures suggested include amendment to the State Agricultural Produce Marketing Regulation Act for promotion of direct marketing and contract farming programmes and development of agricultural markets in private and cooperative sectors, substantial step up of pledge financing, expansion of futures trading to cover all agricultural commodities, introduction of negotiable warehousing receipt system and use of Information Technology to provide market-led extension services to farmers.

Reforms in Cooperative Sector

The objective of the National Policy on Cooperatives, which was announced in March, 2002, is to facilitate all-round development of cooperatives in the country. Under this policy, cooperatives would be provided necessary support, encouragement and assistance to enable them to work as autonomous, self-reliant and democratically managed institutions, which will be accountable to their members. The policy seeks to achieve functioning of cooperatives based on cooperative principles and values, reduction of regional imbalances, professionalisation and greater participation of members in the management, removal of restrictive regulatory regime and development of an integrated cooperative structure etc.

New Law on Multi-State Cooperative Societies

The Central Government has enacted new Multi-State Cooperative Societies (MSCS) Act, 2002, replacing its earlier version enacted in 1984. The new Act would remove restrictive provisions and provide full functional autonomy and democratic management to the cooperative societies. The Centre is now taking up with the State governments the implementation of legislative and policy reforms in the cooperative sector.

Agricultural Trade

The share of agricultural products in total exports was about 14.2 per cent in 2001-02. Farm exports have recorded an increasing trend with the exports increasing from Rs.25,510 crore in 1998-99 to Rs.29,485 crore in 2001-02 and the trend continued during the current financial year. The import duties on agricultural commodities have been revised to safeguard the interests of the farmers. For the first time in the country, 28 Agricultural Export Zones (AEZ) are being set up in 14 States with an investment of Rs.781 crore. AEZs are expected to facilitate additional export of worth over Rs.4,000 crore during the next five years. Transport assistance is being provided for the first time for the export of various agricultural items including fresh and processed foods, vegetables, floriculture, wheat and rice products, dairy products etc. To provide up to date information on price movements of agricultural commodities, market information network has been launched connecting several market Centres across the country.

India is actively participating in the ongoing review of WTO Agreement on agriculture. India has highlighted the inadequacies of the present agreement and demanded that fresh negotiations should address the concerns of developing countries, including food security and rural development. Elimination/substantial reduction in the export subsidy and domestic support given in the developed countries for agriculture is also being strongly demanded.

Crop Production

Production of foodgrains during 2001-02 is estimated at 211.32 million tonnes which is 15.40 million tonnes more than the previous year. Drought, floods and adverse agro-climatic conditions in several parts of the country are expected to have an adverse effect on foodgrain production during the current crop year.

Horticulture production has increased by 18.7 per cent during the 9^th Plan i.e. from 152.5 million tonnes during 1997-98 to 188.5 million tonnes in 2000-01.

Hi-tech Horticulture Project

To sustain the promising gains from remunerative diversification to horticulture, a Rs.50 crore new Central sector scheme on Hi-tech Horticulture and Precision Farming has been proposed in the Budget for 2003-04. Major components of the scheme include use of hi-tech interventions like fertigation, use of biotechnological tools, green food production and hi-tech greenhouses. Deployment of precision farming technology for judicious utilisation of resources like land, water, sunlight as well as time including their demonstration will also be taken up under the scheme.

Plantations

With a view to providing stability in terms of income for the small growers, a Price Stabilisation Fund of Rs.500 crore will be made operational in 2003-04 for the benefit of tea, coffee and natural rubber growers. The excise duty of Re.1 per kg on tea will be replaced by a cess of Re.1 per kg for creating a separate fund for the benefit of tea plantation sector.

Water Management and Irrigation

To break the flood-drought-flood syndrome on account of faulty water management, unbalanced development of irrigation sources and a highly uneven distribution of water resources, inter-linking of rivers has been proposed and a Task Force has been appointed for initiating further action in this regard.

A two-member Task Force headed by the Andhra Pradesh Chief Minister is proposed to be set up to recommend measures to expand the coverage of drip irrigation and to ensure that the intended benefits actually reach the target groups.

A Rs.100 crore special programme, Maru Gochar Yojana has been proposed to be taken up for rehabilitation of traditional pastures in Rajasthan for restoration of traditional water courses and other measures to provide effective drought proofing. The scheme will be implemented over three years with an allocation of Rs.50 crore for 2003-04. The State government will contribute 25 per cent of the cost.

Animal Husbandry, Dairy and Fisheries

Several measures were initiated to increase the productivity of the livestock. Milk production during 2001-02 reached 84.57 million tonnes as against 17 million tonnes in 1950-51. India is the largest producer of milk in the world. Egg production increased to 33.6 billions and the country ranks fifth in the world. Total fish production is estimated to be 58 lakh tonnes. National Project for Cattle and Buffalo Breeding was launched in 2000 with an allocation of Rs.402 crore for the first phase of five years.

AGRO AND RURAL INDUSTRIES

A separate Ministry for Agro and Rural Industries has been created in September, 2001 to take initiatives to provide more employment opportunities in rural areas and to promote the village industries. A package was devised in accordance with the Government’s prime objectives of creating more jobs in rural areas and empowering the women and backward classes in the country.

Rural Employment Generation Project Scheme

The Government is implementing the Rural Employment Generation Project (REGP) scheme through Khadi and Village Industries Commission (KVIC) to promote and develop village industries including agro industries in the country. Under this scheme, till December, 2002, a total number of 19,14,397 employment has been generated by setting up of 1,52,509 rural industrial units in the country. Under this programme, the KVIC provides margin money assistance to rural entrepreneurs.

Khadi and Village Industries Commission

The total export of Khadi and Village Industries products were made to the tune of Rs 21.62 crore and total sales of Rs 15.39 crore during the year 2001-02. New Package for the Khadi and Village Industry was announced in May, 2001 to make it viable and vibrant in the new era of globalisation. The package included, among other things, the rebate policy for five years, option for rebate and marketing development assistance and cluster development programmes etc. In collaboration with UNDP, a project amounting to 2.5 million dollars was launched for bee keeping, pottery, hand-made papers and capacity building of KVIC. Additional funds to the tune of Rs. 1,215.85 crore have been provided for the programmes under the package during the next five years.

Rebate Policy for Five Years

A new rebate policy was formulated for a period of five years to boost khadi products. There would not be any change in normal rebate of 10 per cent throughout the year. The special rebate, which used to be given at the rate of 10 per cent for a period of 90 days only has been extended to 108 days on staggered basis i.e. 7 days in each month and for the whole month of October.

Options of Rebate and Market Development Assistance

As a measure to give incentives to the institutions for producing innovative designs and marketable products, a new scheme of market development assistance (MDA) at the rate of 20 per cent of the annual turnover has been introduced as an option in place of rebate.

Additional Working Capital

To tackle the problem of lack of credit, the term loan of Rs. 300 crore was given to khadi institutions, was converted into working capital and a fresh line of credit of Rs. 250 crore as working capital has been provided.

Insurance Cover to Khadi Artisans

Group Insurance Scheme for khadi artisans was introduced on July 27, 2001. The scheme, namely Janashree Arogya Bima Yojana, covers up almost 4 lakh artisans engaged by khadi institutions, death, disability and disease.

Quality Improvement

In order to make the marketing of khadi products more attractive, the focus henceforth is on quality. National Institute of Design of Ahmedabad, was roped in for better designing and development of khadi products. Mahatma Gandhi Institute for Rural Industrialisation at Wardha, through linkage with IIT, New Delhi, is coming up with product development, standardisation, quality control and research for khadi products. The quality of products will be certified through labs accredited by NABL.

Cluster Development Programme

In order to strengthen khadi and rural industry, a scheme of cluster development has been initiated. At these clusters, common facilities will be created for innovation, technology upgradation, packaging, processing, testing and e-commerce. Setting up of a marketing company for boosting the sales of products both in India, as well as abroad, has also been taken up.

Focus on Core indigenous Areas

An amount of Rs. 275 crore as assistance has been earmarked for a few selected indigenous areas, namely, herbal cosmetics and medicines, honey, organic foods, edible and essential oils. These employment intensive areas will not only be provided financial assistance, but also technical support.

Comprehensive Policy Package for tiny Sector

The Prime Minister announced a comprehensive policy package in August, 2000, which includes preferential allocation of plan, power facilities, technological upgradation, liberal institutional finance support and priority in Government purchase.

Credit Support to Tiny Sector

Composite loan upto Rs. 25 lakh to tiny sector at 1 per cent concessional interest rate by National Small Scale Industries Corporation is being provided. The project cost limit has been raised from Rs. 25 lakh to Rs. 50 lakh and 30 per cent of the investment has been earmarked for the tiny sector.

Investment limit for the tiny sector under Prime Minister’s Rozgar Yojna to generate employment for the educated unemployed, continues to be Rs. 25 lakh, and the family income eligibility limit of Rs. 24,000 has been revised to Rs. 40,000 per annum.

Infrastructural Support to Tiny Sector

Integrated Infrastructure Development (IID) scheme will now to cover all areas in the country. Under the scheme, 50 per cent of the plots have been earmarked for setting up tiny sector, as against 40 per cent earlier.

Technology and Marketing Support

Capital subsidy has been provided to tiny sector for technology upgradation, organising buyers and sellers meet, vendor development programmes and exhibitions. On March 16, 2003, the KVIC signed MoUs with several IITs, NITs, IISC, IGNOU and some other research scientific institutions to help rural industrialisation as well as value addition to its products.

Coir Sector

Export of coir yielded Rs 450 crore during the year 2002 (till November) in comparison to Rs 320 crore in 2001-02. The demand for Indian coir products is increasing globally. As a result, India has exported 1,825 tonnes of coir geotextiles worth Rs. 8.65 crore (till February. 2003) as compared to 1,752 tonnes worth of Rs. 7.80 crore during the year 2001-2002. The Coir Board has been reconstituted to provide better infrastructural support through cluster development, consortium market and assured supply of quality raw material. Steps have been taken for market promotion, technical upgradation, and skill development through bilateral cooperation with other coir producing countries. The Board is continuously focussing on product development and diversification to meet customer preference through R&D.

ATOMIC ENERGY

Eight nuclear power reactors are under various stages of construction. This is the largest number of reactors coming up at a given time in the world. These will add 3,960 MW power capacity to the national grid. 14 reactors with an installed capacity of 2,720 MW are currently under operation.

India’s total nuclear power capacity is programmed to reach 10,000 MW by 2012 and achieve the target of 20,000 MW by 2020. Self-reliance, safety and cost-effective power production continues to be the “mantra”. Use of atomic technology for a variety of applications also forms part of the strategy.

The Fast Breeder Test Reactor coming up at Kalpakkam is the first of its kind in the world that uses plutonium-uranium mixed carbide fuel. In Fast Breeder Reactors (FBRs), the utilisation of nuclear fuel is very optimal. The design of 500 MW sodium cooled Prototype Fast Breeder Reactor (PFBR) is ready and its construction is to commence soon.

The Bhabha Atomic Research Centre (BARC) has developed an advanced heavy water reactor to tap India’s vast thorium resources, largest in the world. Thorium when irradiated gets converted to nuclear fuel Uranium-233, which can then be used for power generation.

BARC has also developed a desalination technology for tapping seawater and a pilot plant is coming up at Kalpakkam. It is based on Multi-Stage Flash (MSF) evaporation Reverse Osmosis (RO) and low temperature evaporation technologies.

Self-sufficiency in Heavy Water

The Heavy Water Board operates seven heavy water plants. Self-sufficiency has been achieved in its production. The performance and safety record of all these plants are excellent. The production of heavy water is poised to exceed the target soon.

New Record in Performance

The performance of India’s nuclear power plants are all set to achieve a new record. The average capacity factor has already reached the level of 89 per cent and is expected to cross 90 per cent by the time 2002-03 financial year closes. Kakrapar-1 has achieved the distinction of being the world’s best performing Pressurised Heavy Water Reactor, on the basis of its gross capacity utilisation factor of 98.4 per cent.

Telemedicine

More remote and rural areas are being brought under telemedicine programme with satellite application. Medical centres and hospitals in backward areas are linked to specialised medical institutions in nearby cities for expert advice and guidance. An exclusive satellite will be devoted for this in due course.

Advanced IRS

India is currently in the process of developing advanced remote sensing satellites with new features. This is for application inland and water resources management, with new features. This is for application in land and water resources management, large-scale mapping operations and ocean and meteorological services. India’s remote sensing satellite system is one of the largest in the world.

Indo-French Climate Project

Mega-tropiques (French name for Mega Project on tropical atmosphere), aims at the study of tropical atmosphere and climate. The Indian Space Research Organisation (ISRO) and the French National Space Agency’s (CNES) joint initiative also envisages development of scientific instruments to be carried on a French satellite platform (PROTEUS) and the satellite will be launched by India’s PSLV in 2006.

North-East Space Centre

With a view to promoting space technology for the benefit of the North-Eastern region, a Space Applications Centre was set up in December, 2000, in Shillong. The Centre is addressing natural resources management, developmental communication and space science research in the region. This forms part of the developmental strategy of the Centre for the North-East region.

Mission to Moon

ISRO scientists and engineers are studying the feasibility of undertaking an unmanned mission to moon. This is primarily to test our capability to build spacecraft with associated sensors and launch vehicles like PSLV and GSLV. ISRO recently signed a MoU with Canada, which among other things envisages Canadian participation in the project.

CHEMICALS AND PETROCHEMICALS

Pharmaceutical Policy – 2002

The Pharmaceutical industry in India is emerging as a major centre for sourcing bulk drugs, packaging materials, pharmaceutical manufacturing machineries and technical services. Accounting for 8 per cent of world’s production by volume and ranking fourth world wide, the industry has the potential to grow from the current $ 4.5 billion to $ 20–25 billion by 2010. The pharmaceutical sector has registered a compounded annual growth rate of 16 per cent over the last 12 years.

A reorientation of the objectives of the current Drug Policy had become necessary on account of the following:-

- The essentiality of improving incentives for research and development in the Indian pharmaceutical industry, to enable the industry to achieve sustainable growth particularly in view of anticipated changes in the patent Law; and

- The need for reducing further the rigours of price control particularly in view of the ongoing process of liberalisation

Accordingly, the Government has announced the Pharmaceutical
Policy – 2002. The main objectives of the policy are:

- Ensuring abundant availability at reasonable prices within the country of good quality essential pharmaceuticals of mass consumption.
- Strengthening the indigenous capability for cost effective quality production and exports of pharmaceuticals by reducing barriers to trade in the pharmaceutical sector.
- Strengthening the system of quality control over drug and pharmaceutical production and distribution to make quality an essential attribute of the Indian pharmaceutical industry and promoting rational use of pharmaceuticals.
- Encouraging R&D in the pharmaceutical sector in a manner compatible with the country’s needs and with particular focus on diseases endemic or relevant to India by creating an environment conducive to channelising a higher level of investment into R&D in pharmaceuticals in India.
- Creating an incentive framework for the pharmaceutical industry, which promotes new investment into pharmaceutical industry and encourages the introduction of new technologies and new drugs.

The Policy comprises, inter alia, measures to encourage pharmaceutical Research & Development for strengthening of R&D base in the country and reorientation of the pricing system to enable the domestic pharmaceutical industry to meet the challenges and harness opportunities arising out of the liberalisation of the economy and the impending advent of product patent regime. The Policy lays stress on improvement of regulatory standards and strengthening of Quality Control Administration.

In the Pharmaceutical Policy–2002, items appearing in the list of Essential Drugs in the current National Essential Drug List of the Ministry of Health and Family Welfare and other important items with the exclusion of sera and vaccines, blood products etc., would form the total basket, out of which selection of bulk drugs would be made for price regulation in accordance with the criteria laid down therein. The span of drug price control will get reduced considerably.

Pharmaceutical Exports

The Pharmaceutical industry in India is one of the largest and most advanced in the developing world. India produces nearly 8.5 per cent of the world’s drug requirements in terms of volume, and ranks among the top 15 drug manufacturing countries in the world. India’s US$ 5.0 billion pharmaceutical industry is growing at the rate of 14 per cent per year. With major focus on globalisation, the pharma companies are gearing up to face the challenge. There is an increasing focus on R&D by most of the pharma majors. A spate of mergers and acquisitions in this sector is helping the industry in penetrating the global pharmaceutical market.

Export of Pharmaceuticals (in Rs.crore)

Year	Value
1998-99	6256
1999-00	7230
2000-01	8729
2001-02	9751

Besides maintaining an excellent growth rate in exports, a commendable feature of the exports is that about 32 per cent of the share of total exports is going to 12 highly developed countries namely USA, Canada, Mexico, Germany, UK, Italy, Netherlands, France, Japan, Australia, Brazil and Argentina.

Delicensing of Chemicals and Petrochemical Products covered under Compulsory License

In consonance with the policy of the Government to continue with the reforms in the industrial sector to create an investor friendly environment, the Department of Chemicals and Petrochemicals reviewed the need to continue 22 items kept under the compulsory licensing list. As a result of this initiative, Department of Industrial Policy and Promotion has delicensed nineteen of the twenty-two items, which were kept under compulsory license. The three items which have been retained under the compulsory licensing are – Hydrocyanic acid and its derivatives, Phosgene and its derivatives and Isocyanates and Diisocyanates.

Liberalisation of Foreign Direct Investment in Pharmaceutical Sector

In order to further increase Foreign Direct Investment (FDI) in the Pharmaceutical Sector, the Government further liberalised its policies thereby permitting FDI upto 100 per cent through the automatic route. Earlier this facility was available only upto 74 per cent.

India Chem 2002

An international exhibition and conference on chemicals, petrochemicals, pharmaceuticals and process plant and machinery was held during September 18-21, 2002 in New Delhi. The event provided a platform for an interaction of the chemical industry with policy makers, interaction and the top CEO’s of global chemical, pharmaceutical and petrochemical majors. It also provided an opportunity to show the Indian capabilities in these sectors and invite global investors to invest and also bridge the gap between Indian and global companies by exploring the possibility of mergers and joint ventures. The event attracted participation of 233 companies including 79 foreign companies. Germany, the lead country, had 33 companies participating in India Chem 2002, including the world leaders like Bayer, BASF, Degussa, Lurgi and Uhde. Other participant nations included USA, China, Italy, Sweden, Denmark, UAE, Iran, Japan, UK, Switzerland and Netherlands. Such efforts will help Indian chemical, Petrochemical and Pharmaceutical Industry to integrate with the global industry.

The first India Chem 2000 was highly successful and paved the way for a phenomenal 92 per cent of the exhibitors returning to this year’s show. India Chem 2002 also saw the return of USA as the “Guest Country”, as a result of the tremendous response they got in 2000. Due to such focussed efforts the exports, of chemicals registered an increase of Rs.5,201 crore during the year 2000-01 over the year 1999-2000, i.e. an increase of 29.9 per cent over the previous year. The chemical sector, despite the present recession, did well registering a growth of 7.3 per cent during last year compared to 5.3 per cent overall growth of manufacturing sector.

Chemical Weapons Convention Bill

The Chemical Weapon Convention is a universal non-discriminatory multilateral, Disarmament Treaty, which bans the development, production, acquisition, transfer, use and stockpiling of all chemical weapons. To be able to discharge the obligation under the convention, each country is required to have domestic legislation which make the filing of correct information about various activities in schedule chemicals mandatory. The Indian Chemical Weapons Convention (CWC) Act has been approved by the Parliament and has received the assent of the President. The rules under the Act are being prepared.

Gandhar Complex of Indian Petrochemical Corporation Ltd (IPCL)

The IPCL has set up Gandhar Gas Cracker Complex in the Bharuch District of Gujarat a notified backward area, at a cost of around Rs.4,300 crore to augment its production of petrochemical products. The second phase of the complex was commissioned in 1999-2000. It is a major project, it would give a fillip to rapid industrialisation and development of the area. The complex was dedicated to the nation on January 16, 2001.

Guwahati Extension Centre of CIPET

A full-fledged Central Institute of Plastics Engineering and Technology (CIPET) Extension Centre at an estimated cost of Rs.10.35 Crore (equal participation by the Government of India and the State Government of Assam) at Changasari in the State of Assam has been formally dedicated to the Nation on September 26, 2002. It is expected that the trained manpower will find ready employment in the plastic processing industry and the Institute will provide the best services to the plastic processing industries in the State of Assam in particular and the North – Eastern Region, in general.

CIVIL AVIATION

Thrust on Security

The Civil Aviation sector has been passing through one of its most turbulent times. Global industrial slowdown and the subsequent slow recovery have impacted the Aviation industry like never before. Occasional wars/warlike situations have complicated matters further. But what has turned out to be a menace of unimaginable proportions is the rise of terrorism in many parts of the world. Aviation sector has proved to be a soft target. Its vulnerability and potentiality to generate world-wide propaganda have attracted terrorists/insurgents to indulge in acts of unlawful interference in civil aviation. The attack on the World Trade Centre in New York proved to be a turning point in the history of Aviation security.

The main objective of civil aviation Security continues to remain safeguarding of civil aviation operations against unlawful interference and to avoid causing inconvenience to passengers. The incidents like WTC attack and hijack of IC – 814 demonstrate that civil aviation security is no more confined to Aviation only but directly impinges on national security.

The Ministry has taken a number of steps to re-establish normalcy and to bring back the sense of security among the air-passengers making Indian Aviation sector one of the safest in the world.

Emphasis on Passenger Safety

It was decided to induct CISF to bring in cohesion and uniformity in procedures and practices in airport security. CISF has taken over security duties in 46 airports so far. For the remaining civil airports, it will be done in a phased manner in the coming months.

National Security Guards are being sent as ‘Sky marshals’ to counter any hijack threat. The deployment of sky marshals is being done on random basis on all the domestic routes including those of the private airlines.

Ladder point frisking has been prescribed on all the flights at all the airports as an added security measure. This has provided additional security cover to the flights.

Steel cutlery has been banned and plastic cutlery has been introduced from May last year.

Quick Reaction teams have been deployed at all the major airports to meet any contingency arising out of possible terrorist strike.

Security audit of hyper-sensitive/sensitive and normal airports has been carried out by IB led teams. All concerned agencies have been directed to implement the recommendations in a time bound manner.

Among the 67 operational airports, 14 have been categorised as hypersensitive, 33 as sensitive and 20 as normal. Inspection of hypersensitive airports is to be conducted three times a year while inspection of sensitive airports is done twice and inspection of normal airports once a year. These inspections are carried out by teams comprising officials of IB, BCAS, AAI, CISF and State Police.

A new Photo Identity card System has been introduced from February this year as a precursor to the bio-metric based smart card. The new PIC system has high security features, large size photograph and different colour strips for easy identification in comparison to the old PIC. In order to avoid misuse of PIC by employees of private agencies working at the airports, Government symbols like national emblem and Government of India have not been printed on the new photo identity cards.

A caller ID facility has been installed at important telephones in airports and other offices of the agencies involved in Civil aviation.

The Airports Authority of India has purchased new x-ray machines, which have been installed at different airports.

It has also been decided to raise the perimeter wall at all the operational airports to the standard level. Various options or anti-intrusion devices are being considered like electrical fencing, microwave sensors, infra-red detectors and underground integrated cables for selected airports. Instructions have been issued for installation of watchtowers along the perimeter and for proper perimeter lighting.

Instructions have been issued to lock the cockpit doors during all phases of flight to deny a possible hijacker access to the cockpit.

Instructions relating to transportation of courier bags have been reviewed and revised instructions have been issued. Co loading has been dispensed with. The courier companies either send their couriers with courier bags which will be treated as registered baggage or may send the courier consignment as experts cargo from cargo terminal or from a separate designated express cargo terminal wherever available/provided by AAI.

Future Plans

There are plans for introduction of Smart Cards at airports in order to streamline and strengthen access control systems, Closed Circuit Television (CCTV) for surveillance at all hypersensitive and sensitive airports and replacement of present doorframe metal detectors with multi-zone door frame metal detectors at all airports.

It is also being planned to introduce integrated Registered Baggage Screening System, which could hasten the process of registered baggage handling in a safe and secure way.

Enhancement of perimeter protection with intrusion Detection Alarm System is under consideration.

There are also plans to introduce biometric based Integrated Passenger Profiling System (BIPPS), which will ensure identity of the passengers.

Other measures include strengthening of Cockpit doors and installation of state-of-the-art communication system inside Aircraft to communicate with the ground staff in a hijack situation.

Training Academy

So far Bureau of Civil aviation Security has been conducting training programmes for the security personnel. To meet the ever-increasing requirement of trained manpower to work at airports and off airports, a specialised training academy will be set up in Delhi. It will meet the requirements of all airport security units, airlines, airport operators, regulated agents, ground handling agents as well as other related organisations. The training academy is also planned to work as a model institute for Aviation security requirements of neighbouring countries.

Restructuring of Bureau of Civil Aviation Security

A proposal to restructure the Bureau of Civil Aviation Security has been prepared. The restructuring is envisaged at the headquarters and the regional level of the BCAS. Under the proposed scheme, four posts of Deputy Commissioner of Security (CA), are to be created exclusively for the four metro airports. The existing offices of Regional Deputy Commissioner of Security are to be relocated. Considering the strategic importance of Jammu and Guwahati in North and North-Eastern Region, Ahmedabad and Hyderabad in Western and Southern region it is proposed to relocate the existing Regional offices from Mumbai to Ahmedabad, from Delhi to Jammu, from Kolkata to Guwahati and from Chennai to Hyderabad.

Strengthening of intelligence and technical Divisions, augmenting of manpower at regional offices and modernisation of infrastructure, equipment and technology upgradation are some of the other proposals of the restructuring plan under the consideration of the Government.

COAL

The present coal production in the country is about 310 million tonnes. The coal sector is planning for doubling of this production in the 10^th and 11^th Plan periods.

The coal sector, which contributes over 60 per cent of grid electricity through the thermal power route, is faced with the challenge of a 100 per cent growth envisaged in power generation over the next 10 years. If the country continues to rely largely on thermal power this 1,00,000 MW capacity addition would involve major demand escalation for coal.

Accordingly, the policy initiatives taken by the Ministry focus on enhancing coal production, coupled with a de-regulation of the marketing framework. Of equal concern is the rehabilitation of the three loss making PSU’s, namely, Bharat Coking Coal Limited, Central Coalfields Limited and Eastern Coalfields Limited.

Keeping in mind the above parameters, the Ministry has taken major policy initiatives in the coal sector. These include:

Passing of Revalidation Bill

The private coal mines of the country were nationalised in two phases during 1971-1973. In the first phase coking coal mines were nationalised. In the second phase non-coking coal mines were nationalised. Ever since the nationalisation of the coal industry, though the land, or right, in or over such land acquired under various Acts and the rights, title and interest in relation to a coal mine, or a coke over plant were directed to be vested in Coal India Limited (CIL), or its predecessor in title, its subsidiary companies were de-facto managing such land, coal mines, or plants.

The absence of a formal legal title to the land, or the right over such land, or the right, title and interest in relation to a coal mine or coke oven plant, in the subsidiary companies, had exposed them to litigation and other legal infirmities. While the Companies Act, 1956 contains provisions for reconstruction and amalgamation, such reconstruction or amalgamation could be given effect prospectively only under that Act.

It was, therefore, considered necessary to empower the Central Government to direct the transfer of land, or the rights, in or over such land or the right, title or interest in relation to a coal mine, or coke oven plant vested in the CIL to a subsidiary company, or where such land or mine are vested in a subsidiary company, to another subsidiary company. It was also considered necessary to validate all purported transfers of land or the rights, in or over such land or the right, title and interest in relation to a coal mine, or coke oven plant from CIL to a subsidiary company and from one subsidiary company to another subsidiary company before the commencement of the proposed legislation.

To achieve this purpose, a Revalidation Bill was introduced in the Rajya Sabha on February 14, 1995, and was thereafter referred to the Standing Committee on Energy for consideration. The Committee submitted its report on July 27, 2000, to the Parliament. The Bill was passed by the Parliament during the Winter Session, 2000. The President has given his assent to the Bill. Thus, the Act has come into force from its publication in the Gazette of India on December 8, 2000.

Coal Mines (Nationalisation) Amendment Bill

The Coal mines in the country were nationalised from 1971-73 in two phases. The private coal mining leases that existed after nationalisation were terminated in 1976, allowing only the iron and steel producers in the private sector to mine coal only for captive use for production of iron and steel. As such, coal mining was open only to public sector. However, with the onset of liberalisation of steel and power sector in 1991-92 and due to budgetary constraints, it was decided in June, 1993, to open coal sector to limited private participation for captive consumption for generation of power. Subsequently, captive coal mining was also allowed for production of cement, along with the existing provisions for doing coal mining for iron and steel production. Following a report by a Committee on Integrated Coal Policy, which forecast a huge demand-supply gap during the 10th and 11th Plan period, it was decided in 1997 to associate the private sector in coal mining by amending the Coal Mines (Nationalisation) Act, 1973. Accordingly, an Amendment Bill was vetted by the Ministry of Law to this effect. The objectives of the Bill are as under:

- To allow Indian companies to mine coal and lignite in the country for commercial purposes, without the existing restrictions of captive consumptions;

- To allow Indian companies to undertake exploration of coal and lignite resources in the country; and

- To empower the Central Government to prescribe by-rules, in order to ensure rational, coordinated and scientific development and utilisation of coal resources consistent with the growing demands of the economy, the location of mines, the minimum size of the coal mine and such other conditions which should be necessary for the purpose of coal mining operations by a company.

The Bill was introduced in Rajya Sabha in April, 2000. However, the trade unions apprehended that this will lead to privatisation of Coal India Limited and that the increased demand-supply gap can be met with increased budgetary support by the Government to the nationalised coal sector.

These demands have been considered at various levels. However, they are being looked into by a Group of Ministers (GOM), constituted for the Department of Coal, to look into various problems of the coal industry. The GOM last met on April 9, 2002. A final decision by the GoM, on whether or not to pursue the Cal Mines (Nationalisation) Amendment Bill, 2000 in Parliament, is pending. The GOM has recently been reconstituted.

Decontrol of Prices

Prior to January 1, 2000, the Central Government was empowered under the Colliery Control Order, 1945, to fix the grade-wise and colliery-wise prices of coal. The prices of the administered grades of coal were last revised w.e.f. June 17, 1994. The price notification had been amended in December, 1995, January, 1996, and April, 1996.

Following the recommendations of Bureau of Industrial Costs and Prices (BICP), a decision was taken by the Government to deregulate the prices of all grades of coking coal and A, B, & C grades of non-coking coal and this decision was implemented with effect from March 22, 1996. Subsequently, in consideration of a recommendation of the Committee on Integrated Coal Policy, the Government decided to de-regulate the prices of soft coke, hard coke and D grade of non-coking coal and this decision was implemented with effect from March 12, 1997.

The Government also decided to allow CIL and SCCL to fix prices of E, F and G grades of non-coking coal once in every six months by updating the cost indices as per the escalation formula contained in the 1987 report of the BICP and necessary instructions to this effect were issued to CIL and SCCL on March 13, 1997.

The pricing of coal now stands fully deregulated after the Colliery Control Order, 2000 was notified with effect from January 1, 2000, in supersession of the Colliery Control Order, 1945. Under the Colliery Control Order, 2000, the Central Government has now no powers to regulate the prices of coal.

Setting up of an Independent Authority

After the Coal Mines (Nationalisation) Amendment Bill, 2000 is passed, it is proposed to set up a Coal and Lignite Development Authority, which will, inter-alia, identify the coal and lignite blocks for the purpose of prospecting and mining; determine inter-se priority for allocation of these blocks for prospecting and mining; allocate the identified blocks to Indian companies (including the Government Companies) through open and transparent bidding system; maintain computerised data banks of exploration related data; and perform such other functions as may be entrusted to it by the Central Government. The Authority will take measures to ensure a level-playing field between the Private Sector and the predominant public sector. A Draft Bill in this regard has already been prepared.

New Coal Mining Policy

Coal mining continues in the public sector, except for captive mining purposes and a Bill, namely, the Coal Mines (Nationalisation) Amendment Bill, 2000, has already been introduced in Parliament to open up the coal sector to private investment. The Bill was referred to the Standing Committee on Energy for examination and report. The Standing Committee has since submitted its report, which was tabled on both the Houses of Parliament in August, 2001. The Committee has recommended adoption of the Bill, subject to certain conditions. The bill is awaiting consideration of the Parliament. Simultaneously, the Government has also decided, as a policy, that the State government companies or undertakings be allowed to do mining of coking and non-coking coal or lignite reserves, either by opencast or underground method, anywhere in the country without the earlier restriction of confining their operation to small and isolated pockets of coal reserves. The major conditions subject to which the State government/companies/undertakings can do coal mining include the following:-

For coal the company shall obtain a certificate from Coal India Limited to the effect that the latter has no plans or willingness to undertake mining operations for coal in the concerned area. For lignite, the company shall obtain a certificate from Neyveli Lignite Corporation;

The proposed mining area has not been allotted to a captive mining company under the provisions of Section 3 (3)(a)(iii) of the Coal Mines (Nationalisation) Act, 1973;

No financial assistance from the Central Government or Coal India Limited or Neyveli Lignite Corporation shall be provided to the company for coal or lignite mining in the concerned area;

None of the coal or lignite mines operated by the company will be taken over by the Central Government or Coal India Limited or Neyveli Lignite Corporation in the event of closure of such a mine or otherwise; and

No employee of the company, engaged in a coal or lignite mine operated by it, will be absorbed in Coal India Limited or Neyveli Lignite Corporation at any point of time.

Royalty

As per terms of Section 9 of the MMRD Act 1957, the holder of a mining lease shall pay royalty in respect of any mineral removed/ consumed. The Central Government can enhance or reduce the rate at which the royalty shall be payable provided the rates cannot be enhanced more than once every 3 years.

A Committee was set up to consider the issue of revision of rates of royalty on coal and also the system of fixation of such royalty from tonnage to ad valorem basis. The Committee submitted its report in December, 2001, and based on the recommendations of the Committee, the Government has revised the existing rates of royalty on coal with effect from August 16, 2002. Coal producing States are estimated to register an increase in Royalty income by about Rs. 484.20 crore per annum (on 2000-01 production basis).

As regards revision of rate of royalty on lignite, it has been enhanced from Rs. 2.50 per tonne to Rs. 50 per tonne with effect from March 15, .2001.

WELFARE AND SOCIAL SECURITY SCHEMES

Welfare

The focus of welfare activities is on coal miners and their families. The coal companies are paying greater attention to the welfare of their workers. Every effort is being made to improve the living conditions of the coal miners. In order to create a sense of belonging and involvement of work, top priority is given by the management to provide housing, medical and educational facilities etc. The results of the welfare measures taken in different areas are as under:

Housing

At the time of nationalisation in Coal India Ltd. and its subsidiaries there were only 1,18,399 houses including sub-standard houses. The availability of these houses has increased to 4,07,369 (up to April 1, 2002). The level of housing satisfaction has now reached 78.35 per cent

Water Supply

In Coal India Ltd. & its subsidiaries, as against 2.27 lakh population having access to potable water at the time of Nationalisation in 1973, presently a population of 23.19 lakh (upto April 1, 2002) has been covered under water supply scheme.

Medical Facilities

The Coal India Ltd. and its subsidiaries are extending medical facilities to the employees and their families through various medical establishments from dispensary level to the Central and apex hospitals in different parts of coalfields.

There are 1,778 doctors, including specialists, 87 hospitals with 5,979 beds, 436 dispensaries, and 679 ambulances in CIL and its subsidiaries to provide medical services to the employees. Besides, 25 Ayurvedic dispensaries are also being run in the subsidiaries of Coal India Limited to provide indigenous system of treatment to workers.

Educational Facilities

The primary responsibility of providing educational facilities lies with the State governments. However, CIL on its part has been providing financial assistance to certain schools like DAV Public Schools, Kendriya Vidyalaya, Delhi Public School and other educational institutions run by the State government to provide quality education to the employees’ children. In addition, financial assistance by way of grant-in-aid is also provided to certain privately managed schools by the subsidiary coal companies functioning in and around coalfield areas.

A sum of Rs. 2, 722.77 lakh during 1999-2000, Rs. 2, 405.76 lakh in 2000-2001 and Rs. 2, 500.49 lakh (Prov.) 2001-2002, respectively, has been spent by CIL and its subsidiaries on grant-in-aid to educational institutions.

Community and Peripheral Development

In accordance with the directives of the Central Government, CIL and its subsidiaries have formulated appropriate guidelines for peripheral community development of nearby villages of Coalfield Areas by providing wells, roads, community buildings, schools etc in different villages;

During the years 1999-2000, 2000-2001, 2001-2002 an amount of Rs. 855.31 lakh, Rs. 919.81 lakh and Rs. 1, 203.94 lakh (prov), respectively, have been spent on account of Community Development activities by the subsidiary companies of CIL; and

Neyveli Lignite Corporation, another undertaking under the administrative control of the Department of Coal, also spent over Rs. 100 lakh for welfare measures in peripheral villages in the last three years.

Sanction of Projects

No new coal project has been sanctioned by the Government during the period 2000-02. However, following Advance Action proposals (AAP) in respect of coal projects have been sanctioned during the period:

AAP for Gopalprasad OCP, MCL of capacity 12 mty at an estimated capital cost of Rs. 8.51 crore;

AAP for Amarpali OCP, CCL of capacity 12 mty at an estimated capital cost of Rs.8.89 crore;

AAP for Magadh OCP, CCL of capacity of 12 mty at an estimated capital cost of Rs.8.99 crore;

AAP for Talabira-III OCP, MCL of capacity 6.50 mty at an estimated capital cost of Rs.17.82 crore; and,

AAP for Krishanshila OCP, NCL of capacity 4.00 mty at an estimated capital cost of Rs.10.03 crore;

Coal India Limited

Coal India Limited (CIL), contributing 88 per cent of coal production in India, is the single largest coal producing company in the world. Apart from being the largest public sector in India, CIL as the prime energy provider to the nation is also bestowed with a great social responsibility. Coal India has achieved highest ever production of 279.6 million tonnes of coal in 2001-02, with productivity at the highest ever at 245.45 tonnes per man. In the same period, CIL has earned its highest profit, Rs.1,754 crore.

Neyveli Lignite Corporation Limited

Neyveli Lignite Corporation Limited, a public enterprise incorporated in the year 1956 has a chequered history. A pioneer among the public sector undertaking comprising two opencast Lignite Mines of total capacity –18 MT, two Pit-head Thermal Power Stations with a installed capacity of 2,070 MW and Fertiliser Plant its fold. NLC’s growth is sustained and its contribution to India’s social and economical development is significant.

The major achievements of the company during the last five years are:-

- Highest ever profit of Rs.819 crore and a dividend of Rs.211.9 crore
- paid to the Government.
- Highest lignite Output of 18.37 Million Tonnes.
- Highest overburden removal of 122.24 Million Cubic Metres
- Highest power generation gross from TPS-I at 4,182.27 Million units with a plant load factor of 79.6 per cent.

The landmarks achieved during 2001-02 are highest for any year since its inception.

COMMERCE

Exports Double as Percentage of GDP

India’s exports expressed as a percentage of GDP (Gross Domestic Product) have gone up from 5.72 per cent to 10.1 per cent during the span of a decade and India’s share of the world trade has gone up from 0.5 per cent in 1991 to 0.7 per cent in 2001.

Although the export growth rate varied from year to year, the export growth rate has always been higher than the average rate of growth in world trade except in 1998.

India’s exports in 1999-2000 and 2000-2001 have increased by 10.8 per cent and 19.6 per cent as against export growth of 5.26 per cent, 4.60 per cent and –5.11 per cent in 1996-97, 1997-98 and 1998-99, respectively. During 2002-2003 (April-January), India’s exports have gone up by 17.38 per cent.

Five Year Exim Policy Announced

Export-Import (Exim) Policy for the 5-year period (2002-07) was announced on March 31, 2002. The policy seeks to consolidate the gains of all the previous Exim Policies and had set the challenging target of achieving 1 per cent share of global trade by 2007. The new Exim Policy carries forward the process of liberalisation, simplification of procedures, reduction of transaction costs for our exporters and importers and finally, focusses on areas of India’s core competence especially agriculture, leather, textiles and the small scale sectors, including the cottage and handicrafts sectors. The Policy especially aims to encourage exports from employment generating sectors like agriculture, SSI & cottage sectors, textile, leather and gems & jewellery. At the same time, in a bid to take the Indian exports higher up the value chain, special encouragement has been given to sectors like electronic hardware and chemicals & pharmaceuticals.

Quantitative Restrictions Dismantled

The process of removing Quantitative Restrictions (QRs) on imports on Balance of Payments grounds has been completed. Despite the removal of “Quota Raj” or quantitative restrictions, our collective apprehensions about being deluged by imports have not come through. In fact, this is because a major component of the Exim Policy has been to protect the domestic industry against harmful or excessive imports. Data in respect of imports of items, which were freed for imports during the last four years, show that the removal of QRs has not resulted in any substantial increase in imports. This has been possible through the effective use of new WTO-compatible instruments like increase in tariffs up to bound levels, anti-dumping machinery and various safeguard mechanisms, besides application of standards and domestic rules & regulations on imported products. Import of 300 sensitive items, on which QRs have been removed recently, are closely monitored and remedial tariff and non-tariff measures have been taken, wherever necessary. With such constant efforts, it was possible to limit the growth of such items to only 7.42 per cent.

For the first time, Standing Group was created, which functioned as a “War-room” for tracking, collating and analysing data on import of 300 sensitive items, which are of importance to the public. Further, every month a statement is released to the media about the import status of these 300 sensitive items.

QRs on exports removed

All QRs on exports were removed in the Exim Policy 2002-07, except in the case of a few sensitive items. Only a few items have been retained for exports through state trading enterprises.

QRs on export of wheat and rice products rice, coarse grains, butter and packaging restrictions on pulses have been removed. Ceiling on onion exports has been enhanced. Agricultural exports excluding marine, tea, coffee, cotton, castor oil which were at Rs.16,673 crore during 2000-01 increased to Rs.18,667 crore during the year 2001-02 thereby showing an increase of Rs.1,894 crore.

Medium Term Export Strategy launched

A Medium Term Export Strategy (MTES), incorporating an opportunity assessment based on the import basket of major economies of the world, was launched in January, 2002. The 5-year strategy (2002-07) provides a road map for the export sector in the medium term and for preparing policies and programmes necessary to achieve the objective of raising the share of India’s exports in the world market to 1 per cent. Medium term export growth has been targeted at 11.9 per cent for the next five years so as to increase India’s exports from the present level of around US $ 46 billion to US $ 80 billion, representing a near doubling of total exports in the medium term. An action committee to implement the MTES has been set up.

Involvement and partnership of States in export effort

For the first time, a conscious effort has been made to involve States in the export effort of the nation in consonance with our federal concept. A prestigious scheme — “Assistance to States for Infrastructure Development for Exports” (ASIDE) was launched in March, 2002. An allocation of Rs .1,725 crore have been made for the scheme of which 80 per cent will go to States. Half of the allocations will be based on export performance and half on growth in exports to take care of the concerns of both developed, as well as less developed States.

Agri Export Zones take off

For the first time, Agricultural Export Zones (AEZs) have been created. Forty-five AEZs have been approved by the Central Government in 19 different States. The projected exports from these zones in the next five years will be more than Rs. 4,032 crore. The AEZs scheme has been introduced to transform select rural regions as regional rural motors of export economy.

For the first time, transport assistance is being made available for export of fresh and processed fruits, vegetables, floriculture, poultry, dairy products and products of wheat and rice. This will also lead to diversification of agriculture activity.

Rs. 500 crore Price Stabilisation Fund created for plantation crops

A Rs. 500 crore Price Stabilisation Fund has been set up by the Government for plantation crops – tea, coffee and rubber and the agricultural crop – tobacco – in order to safeguard the interests of growers of these commodities. The scheme will initially benefit about 3.42 lakh growers who are the most needy, having operational holdings of 4 hectares only. The Fund will help the growers who had been facing severe problems, as prices of almost all agricultural commodities have witnessed a steep decline in the world market since the mid-1990s

Special Economic Zones

For the first time, Special Economic Zones (SEZs), the new initiative announced in 2000, is taking striking roots. The SEZ scheme has evoked a good response from the State governments/private promoters and so far 17 new SEZs have been approved viz. Positra (Gujarat); Nanguneri (Tamil Nadu); Navi-Mumbai (Maharashtra); Kakinada (Andhra Pradesh); Visakhapatnam (Andhra Pradesh); Gopalpur (Orissa); Hassan (Karnataka); Kulpi (West Bengal); Salt Lake (Kolkata); Bhadohi (Uttar Pradesh); Kanpur (Uttar Pradesh); Greater Noida (Uttar Pradesh); Khopta (Maha Mumbai, Maharashtra); Moradabad (Uttar Pradesh); Vallarpadam/Puthuvypeen (Kerala); Indore (Madhya Pradesh) and Paradeep (Orissa). Four existing Export Processing Zones (EPZs) have also been converted into SEZs. These SEZs are expected to be the laboratories for testing our economic policies and are expected to contribute substantially to the country’s exports. A comprehensive fiscal package for both SEZ developers and SEZ units has been announced.

For the first time, Offshore Banking Units (OBUs), which are exempted from Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and give access to SEZ units and SEZ developers to international finances at international rates have been set up, thanks to RBI. The scheme has provided leadership role to the State governments in identifying locations and private sector partners for developing these zones.

Market Access Initiative – A major boost to export promotion

An ambitious scheme of Market Access Initiative was launched on September 19, 2001 to substitute the existing instruments for neutralising handicaps of domestic exporters by those compatible with the WTO regime. The scheme identifies priorities for research studies and provides funding support for implementing the recommendations. A large outlay of Rs.552 crore has been earmarked for this scheme in the 10^th Plan. Thirty-four projects were approved last year, including 29 market studies. Items of assistance included setting up a facilitation Centre in Netherlands for export of cut flowers, transport assistance for coffee, mango promotion programme, organising ‘India Soft’ to showcase our IT services and software capabilities.

Clusters of Export Excellence mooted

For the first time, a new initiative has been taken to consider industrial cluster towns. As pilot project towns, which excel in exports like Tirupur for Hosiery, Panipat and Ludhiana for woollens etc. are to be made eligible for a number of benefits including entitlement under EPCG Scheme; access to funds under the Market Access Initiative and priority for assistance for identified critical Infrastructural gaps from the scheme of Central assistance to States.

All DGFT offices computerised

All the 32 offices of the Directorate General of Foreign Trade (DGFT) have been fully computerised and the exporters can now transact all business with the DGFT on-line without having to visit these offices. In fact 75 per cent of the licence applications are already being filed and processed on-line.

Diversification of markets – Launching of ‘Focus Africa’

A new “Focus: Africa” programme was launched on March 31, 2002. The programme seeks to increase the two-way trade between India and countries in sub-Saharan Africa, especially Ghana, Nigeria, South Africa, Kenya, Tanzania, Ethiopia and Mauritius. The Government allocated Rs. 2 crore during 2002-03 for export promotion activities under the “Focus: Africa” programme.

Focus LAC was launched in order to accelerate India’s trade with Latin American Countries. This has been a great success. India’s exports to these countries during 2001-02 have gone up by 40 per cent. To consolidate the gains of this programme, Focus LAC was extended up to March, 2003.

Indo-Nepal Trade Treaty renewed

The India-Nepal Trade Treaty was renewed for five years with effect from March, 2002. In the revised Treaty, concerns of Indian industry due to the surge in Nepalese imports during 1996-2001 have been adequately addressed. Trade and industry in both the countries have welcomed the revised Treaty.

Regional Trade Agreements

India is exchanging tariff concessions by participating in various Preferential Trading Arrangements (PTA) as well as Free Trade Agreements (FTA). India is a member of SAARC Preferential Trading Arrangement (SAPTA), Bangkok Agreement, GSTP (Generalised System of Trade Preferences) and is also exchanging tariff concessions bilaterally with Bhutan and Sri Lanka. India has also initiated dialogues for having bilateral PTA/FTA with some countries, which include inter-alia Thailand, Chile, Venezuela, Egypt, South Africa etc. BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, Thailand – Economic Cooperation) is also aiming towards a Free Trade Area. In the first ASEAN Economic Ministers – India Consultations held in September, 2002, the Ministers agreed to pave the way for a Regional Trade & Investment Area between ASEAN and India in the long run.

Milestones in Multilateral Trade – From Seattle to Doha

The Fourth Ministerial Conference of the World Trade Organisation (WTO) was held at Doha, Qatar from November 9-14, 2001. As the Third Ministerial Conference of the WTO at Seattle held in November-December, 1999 remained inconclusive, the Doha Ministerial assumed a special significance. India made substantial gains at Doha. A number of implementation issues highlighted by India have been addressed. A separate landmark Declaration on TRIPs (Trade Related Intellectual Property Rights) and public health acknowledging primacy of “public health” over “patents” was a major achievement, in which India played a key role. It recognised the affordability and availability of medicines as a universal right. It would now enable member countries to take measures to protect public health, as the Declaration recognises the flexibility under the TRIPs Agreement when dealing with public health problems affecting human beings, such as HIV/AIDS, malaria, and other epidemics and the respective national Governments would decide about emergencies and epidemics and take appropriate measures to ensure access to medicines.

Key concerns of India in the field of agriculture were adequately safeguarded at Doha. The Ministers at Doha committed themselves to negotiations aimed at substantial improvement in market access, substantial reduction in trade distorting domestic support and gradual phasing out of export subsidies. The special and differential treatment for developing countries including recognition of food security and rural development have now become an integral part of the mandated agricultural negotiations.

In services sector, the movement of natural persons has been given primary focus apart from reaffirmation of the guidelines and procedures of negotiations, which is largely based on the Indian proposal.

On the four issues raised at Singapore, trade and investment, trade and competition, transparency in Government procurement and trade facilitation, the study process will continue until the Fifth Ministerial Conference and a decision regarding any negotiation would be based on an explicit consensus.

CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION

CONSUMER AFFAIRS

The Consumer Protection (Amendment) Act, 2002 came into force with effect from March 15, 2003. Enacted in 1986, the Consumer Protection Act was amended in 1991 and 1993 to better safeguard the rights of consumers by establishing an “Alternate Justice Delivery System” free of cost to consumers. The Act contains provisions for making it more effective and purposeful. The provisions of the Act aim at facilitating quicker disposal of complaints, enhancing the capability of redressal agencies, strengthening them with more powers, streamlining the procedures and widening the scope of the Act to make it more functional and effective.

In order to promote consumer awareness, the Ministry has launched a website on the working of the Department. To encourage voluntary consumer organisations, women and youth, Swami Vivekananda National Awards for outstanding work in the field of consumer protection have been instituted.

Citizens’ Charters are being introduced in different Ministries /Departments/Organisations of the Central Government, in collaboration with Department of Administrative Reforms, to provide responsive administration at all levels with emphasis on transparency and accountability from service providers.

It is proposed to set up a Consumer Protection Council at district level and make it a necessary requirement for the Government to establish District, State and National level Councils. The Government has also approved a scheme for setting up District Consumer Information Centre (DCIC) in each district of the country over a period of five years. Under the scheme, a grant of Rs. 5 lakh is provided for each such centre.

The Standing Committee on Consumer Welfare Fund has approved 56 proposals involving an assistance of Rs 9.08 crore as on March, 2003, for promoting welfare of consumers and to strengthen consumer movement in the country.

A new scheme, Jagriti Shibir Yojana has been initiated in 2000-01 under which a sum of Rs.50,000 per district is provided to State governments for undertaking awareness programme among the poor people about the welfare schemes like Antyodaya Anna Yojana, Annapoorna Yojana, Food for Work programme etc.

The Essential Commodities (Amendment) Bill, 2000 seeking to amend the Essential Commodities Act, 1955 to make it more effective while eliminating unnecessary harassment to genuine traders has been introduced in Parliament in March, 2000.

Steps have been initiated to expand futures trading in commodities by covering all commodities barring a few sensitive ones. At present futures trading is allowed in 44 commodities including several oils, oil seeds ginger, cotton and turmeric and metals like gold and silver. It is proposed to restructure the commodity market regulator–the Forward Markets Commission.

A commodity exchange, e-Sugar India Limited has been given final approval to commence futures trading in sugar.

Bureau of Indian Standards

Bureau of Indian Standards has issued 16,195 operative licenses as on March 31, 2002 covering more than 1,000 items ranging from food products and mineral water to electronics. BIS Quality System Certification Scheme based on International standards of quality management has 916 operative licenses as on March 31, 2001.

Hallmarking of gold jewellery (gold jewellery certification) was started by BIS keeping in view the consumer interest and marketing demand on a voluntary basis. The scheme is aimed at providing third party assurance to consumers on the purity of gold or its fineness. By May 2002, 11 hall marking Centres have been recognised for certification of gold and 306 jewellers have been certified under this scheme.

Weights and Measures

The Packaged Commodities Rules, 1977, which provide protection to consumers in respect of label declaration and ensuring availability of declared quantity, was amended to make it more transparent and user friendly.

Specification of clinical thermometers was aligned with the specification issued by Bureau of Indian Standards to remove any ambiguity. Specification of new weighing and measuring instruments were notified under General Rules to ensure that only verified and correct instruments are used in the field.

A draft Bill for amending Standards of Weights and Measures Act, 1976 and Standards of Weights and Measures (Enforcement) Act, 1985 was placed before the Cabinet Committee for consideration.

FOOD AND PUBLIC DISTRIBUTION

Antyodaya Anna Yojana

Launching of Antyodaya Anna Yojana (AAY), a scheme for supplying highly subsidised foodgrains to the poorest of the poor marks an important milestone in providing social security to the economically vulnerable in the country. Under the scheme, launched on December 25, 2000, each identified family is given 35 kilograms of foodgrains per month at Rs. 2 per kg. for wheat and Rs. 3 per kg. for rice. AAY was to cover one crore families out of the 6.52 crore families belonging to below poverty line section. It was expanded to cover an additional 50 lakh families as per the Budget proposals for 2003-04 at an expenditure of Rs. 507 crore. The implementation of the AAY scheme has been a success and the offtake of foodgrains under this during 2001-02 was 85 per cent and during 2002-03 the offtake under AAY has touched 100 per cent in certain States like Kerala.

Restructuring of PDS

Public Distribution System has been restructured as the Targeted PDS (TPDS) for reaching foodgrains to the poor on subsidised prices. The quantity of foodgrains available under TPDS has been increased from 25 kg. per month per family to 35 kg. per month per family with effect from April, 2002.

The Government has issued the Public Distribution System (Control) Order, 2001 under the Essential Commodities Act to ensure timely supply of rations to 4.62 lakh fair price shops around the country as well as to streamline PDS. This Order contains provisions for identification of families below poverty line, distribution of ration cards, scale and issue prices of items distributed through fair price shops, fair distribution of foodgrains, licensing of FP shops and monitoring of their functioning. In addition, this Order also provides for punishment to those who violate its provisions.

Food For Work Programme

Food for Work Programme was introduced in January, 2001, under which foodgrains are allocated free of cost to States through the Ministry of Rural Development. This scheme has been extended to States affected by drought and other natural calamities to be implemented as special component of Sampoorna Gramin Rozgar Yojana (SGRY). States have also been given the flexibility to determine the wage and material components of the works to be undertaken under Food for Work Programme.

During 2001-02, the offtake under Food For Work Programme was 31.84 lakh tonnes against an allotment of 33.33 lakh tonnes. During 2002-03 (as on July 25, 2002), 18.11 lakh tonnes of foodgrains was issued to three States and the off take was 12. 18 lakh tonnes. During 2002-03 upto January, 2003, a total of 16.478 lakh tonnes of foodgrains was lifted by States under Special component of SGRY.

Export of Foodgrains

The decision to offer wheat from Central pool for the purpose of export was taken on November 2, 2001 and export of rice from the Central pool was allowed from December 20, 2000. By the end of February, approximately 193.26 lakh tonnes of foodgrains have been lifted for export and 214.95 lakh tonnes has been paid for resulting in sizeable foreign exchange earnings.

The Government has initiated several measures for promoting export of foodgrains from Central pool. An empowered standing Committee on exports has been set up in the Ministry to take speedy decisions on matters relating to exports of foodgrains.

Price of foodgrains from Central pool for exports is fixed for a period of three months with an additional month permitted for lifting of stocks. Prices are announced 45 days in advance before the commencement of the concerned quarter.

Exporters are allowed WTO compatible post delivery and inland transport expenses also as a promotional measure.

Sugar

A buffer stock of 20 lakh tonnes of sugar has been created involving an outgo of Rs. 412 crore from the Sugar Development Fund and Rs. 374 crore would be released by banks on account of buffer stock. Thus, an amount of Rs. 786 crore has become available for payment of cane dues to the farmers.

In order to extend relief to sugarcane growers, the statutory minimum price (SMP) of sugarcane was increased by Rs. 5 per quintal to touch Rs. 69.5 per quintal linked to a basic recovery of 8.5 per cent, subject to a premium of Rs. 0.82 for every 0.1 per cent point above that level for 2002-03 season. The factory wise SMP has since been notified on January 9, 2003.

The levy obligation imposed on sugar mills has been brought down from 40 percent to 10 percent to facilitate sugar mills to make sugarcane payment to farmers in time.

Government has taken a number of steps to liquidate the excess stock of sugar and boost exports. These include:-

- With effect from April 1, 2001, the Government has lifted the quantitative ceiling on export and has dispensed with the requirement of registration-cum-allocation certificates from APEDA.

- The sugar factories exporting sugar have been given exemption from levy on the quantity of sugar exported.

- Adjustment of the exported quantity of sugar in the free-sale stocks of the sugar factories is being made at the end of 18 months from the date of export.

- Duty Entitlement Pass Book (DEPB) benefit @ 4 per cent on the free on board (f.o.b.) value of exports has been allowed to exporters.

- Reimbursement of the internal transport and freight charges on export shipment of sugar is being made from June, 2002.

- It has been decided to reimburse to sugar factories, in addition to the existing reimbursement of internal transport charges, neutralisation of ocean freight disadvantage at the rate of Rs. 350 per tonne on account of export shipments of sugar w.e.f. February 14, 2003.

The Sugar Development Fund (Amendment) Act, 2002 came into force on May 27, 2002. This enables the sugar factories to obtain loans for setting up bagasse based cogeneration power projects and for production of ethanol with a view to improve their viability. The Act also provides for defraying expenditure on internal transport and freight charges to the sugar factories in export shipments of sugar with a view to promoting exports. The relevant rules for the purpose have been already notified.

Edible Oils

The Government has rationalised the duty structure of edible oils in order to harmonise the interests of farmers, processors and consumers.

India- Nepal Trade Treaty has been revised to safeguard the interests of domestic vanaspati manufacturers.

DEFENCE

The Country’s Defence was accorded top priority by the Government. India became the sixth Nuclear Weapon State of the world along with the five super powers. The victory in Kargil conflict showed the country’s military might and gave a fitting blow to the enemy. Many other measures taken by the Government during the last five years have enhanced country’s defence capability substantially.

Restructuring

For the first time since Independence, a comprehensive review of the National Security System was carried out. As a result of this review many important decisions and measures were taken. This resulted in the establishment of Chief of Integrated Defence Staff, Defence Procurement Board, Defence Intelligence Agency and integration of three service headquarters with the Ministry of Defence. The National Security Council was constituted and Defence Minister’s Committee was revived after more than twenty years. The Defence Ministry has also delegated its various financial powers to Army, Navy and Air Force in areas such construction work, purchase, repair, maintenance and information technology.

Self-Reliance in Research and Development

Indigenisation has been at the core of the defence planning process under this Government. Several steps have been taken to make the country self-reliant in defence needs.

Agni-II, with a range of 2000 km, has been successfully developed and is being inducted. Agni I, a single stage solid propelled missile having a range of 800 kms was test fired twice. The range fills the gap between Prithvi and Intermediate Range Ballistic Missile. This missile can be launched from rail/road mobile launchers. The supersonic missile BRAHMOS, which is a joint venture between India and Russia, has been flight-tested twice. Indian and Russian Navies are preparing for trials of Brahmos on various platforms towards induction of this missile system. Production facilities have also been geared up in both the countries to meet the production orders.

The Light Combat Aircraft (LCA) project got a major boost during the past three years. Since January 2001, LCA Technology Demonstrator I & II have successfully completed 52 test flights. Kaveri, the indigenously developed advanced technology engine for LCA, has completed ground testing in India. To accelerate the pace of development and flight trials, five more prototype vehicles (PV1-PV5) are being built. The LCA is planned for induction into the Air Force by 2005-2006. Like the LCA programme, the development of Advanced Light Helicopter (ALH), got a major thrust when the Hindustan Aeronautics Limited under the Ministry of Defence was successful in indigenously developing the ALH. The first lot of seven ALH has been delivered to the Armed Forces during 2002. ALH has been designed to cater to the diverse operational requirements of the Army, Air Force and the Navy.

The Multi Barrel Rocket System PINAKA, is ready for induction. PINAKA has the capability of firing in a single salvo, 12 rockets in less than 40 seconds with a range of 38 kms. The anti-tank missile Nag has successfully completed user trials and is ready for induction.

The system development of NISHANT, an unmanned aerial vehicle for aerial surveillance and reconnaissance, is complete. Limited series production is likely to commence shortly.

The work on country’s first indigenously designed and developed aircraft carrier, known as air defence ship, is on and the ship will be built at Cochin Shipyard Ltd at an estimated cost of Rs.1,700 crore.

Electronic Warfare Systems SANGRAH and TEMPEST have been inducted into Navy and the Air Force. The Defence Research and Development Organisation has successfully developed FIN Stabilised Armour Piercing Discarding Sobot (FSAPDS) Soft core ammunition for use on T-72 Tanks.

New Acquisition and Modernisation

There had been little or no modernisation of the Armed Forces in the past ten to fifteen years. The NDA Government can proudly claim credit for having spent more money on this crucial aspect of national security in the last three years than in the previous ten years put together. While the total expenditure on Defence in 1997-98 was Rs. 35,277 crore, it now stands at Rs. 65,300 crore for 2003-2004. The last three years have seen systematic induction of many new weapons and much-needed systems. As a percentage of GDP, defence expenditure had steadily declined from 2.88 in 1990-91 to 2.17 in 1996-97. However, during the last three years it has gone up and is now about 2.7 per cent.

A contract was signed with Russia for the supply and indigenous manufacturing of advanced multi-role aircraft Sukhoi 30 MKI. The first squadron of the aircraft has already been inducted and is fully operational. The induction of Su-30 MK I is being done in a phased manner. The total cost for supply of 40 Su-30 MK I aircraft is USD 1,462 million. In addition, 10 Su-30 K aircraft acquired in 1999 would also be upgraded to Su-30 MK I standards. The induction and upgradation is expected to be completed by 2004. One hundred and forty Su-30 MK I aircraft would also be manufactured by Hindustan Aeronautics Limited under Transfer of Technology arrangement upto 2017.

A major contract was signed with Russia for the procurement of 310 T-90 tanks in February, 2001 to strengthen Indian Army. Under the contract 124 tanks will be imported in fully formed condition and 186 Tanks in Completely Knocked Down (CKD) / Semi Knocked Down (SKD) condition alongwith Transfer of Technology for indigenous manufacture in India.

India and Russia signed a long-term agreement on Military technical cooperation extending the existing agreement till 2010. It also envisages partnership in research, development and joint production of sophisticated weapons.

The Indo-US Defence Policy Group (DPG) met time to time to continue talks on specific areas of Defence Cooperation. Both sides reviewed the defence cooperation between India and the United States. The talks established the linkage between the two countries from the standpoint of military to military cooperation, training, educational opportunities and other aspects of Indo-US relationship. The DPG explored and identified areas of cooperation between the armed forces of the two nations and the prospects of sharing defence technology. They committed themselves to increasing substantially the pace of the high-level policy dialogue, military-to-military exchanges and other joint activities. The Executive Steering Group of the three Services of the two countries have met to plan and review military-to-military cooperation and oversee implementation of the visits, exercises and training programmes. The training programme will include training for combined humanitarian airlift, combined special operations training, small unit ground/air exercises and Naval joint personnel exchange and familiarisation and combined training exercises between U.S. Marines and corresponding Indian Forces.

Ex-Servicemen and Services Welfare

A number of welfare schemes were launched for the benefit of service personnel and ex-servicemen. The Government has approved a Rs. 18,000 crore Defence Housing project, the biggest ever since independence, to substantially increase and improve housing facilities for serving soldiers. In order to overcome the shortfall of married accommodation for Service personnel, the Government has approved construction of three lakh dwelling units within a period of four years. Of these, 61,658 dwelling units in 81 stations are proposed to be constructed in the first phase. An ex-servicemen contributory health scheme has been launched for the benefit of over 1.5 million ex-servicemen. The scheme is available in 104 designated military stations all over the country. Enhanced medical facilities will be available in the military stations. The scheme would cater for medicare of all ex-servicemen in receipt of pension including disability pension and family pensioners, as also dependants to include wife/husband, legitimate children and wholly dependent parents. Several measures have been taken for improving the conditions of the troops deployed in Siachen, the highest battlefield in the world. The Siachen allowance has been raised to Rs 4,667 for Junior Commissioned Officers and other ranks and Rs. 7,000 for officers per month compared to Rs. 2,000 and Rs 3,000, respectively, recommended by the Fifth Pay Commission.

DISINVESTMENT

The process of disinvestment in PSU was started in the year 1991. However, from 1991 to 1999 the Government had primarily sold minority shares in Public Sector Undertakings (PSUs). The disinvestment process, however, was accelerated after the Department of Disinvestment (DoD) was set up on December 10, 1999 with the responsibility of dealing with all matters relating to disinvestment. With the strategic sale of PSUs, transfer of management control started. The DoD was subsequently elevated to the status of a full-fledged Ministry of Disinvestment on September 6, 2001.

The Disinvestment Commission was reconstituted on July 24, 2001, to give a suitable thrust to the programme of disinvestment.

The price realised through the sale of minority stakes during 1992-97, even in blue chip companies, such as Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd. (BPCL) and Videsh Sanchar Nigam Ltd. (VSNL) was low, as indicated by the price to earning ratios and as compared to price realised through strategic disinvestment. During the period of five years (1998-2003), disinvestment proceeds (including dividend, dividend tax and transfer of cash from reserves) have provided more than Rs.18, 049 crore to the exchequer, as indicated in the table below:-

Rs. in crore

Year	Target	Proceeds from disinvestment
1998-1999	5,000	5,371
1999-2000	10,000	1,829
2000-2001	10,000	1,869
2001-2002	12,000	5,632
2002-2003	12,000	3,348
Total		18,049

During 1998-2000, minority shares of Container Corporation of India (CCI) and Gas Authority of India Limited (GAIL) were disinvested in the domestic market. Minority shares of VSNL and GAIL were also sold in the international market through GDR issues. During this period in order to have synergy, the oil sector PSUs, viz., IOC, GAIL and ONGC cross-purchased about 10 per cent shares of each of them among themselves.

From 1999-2000, the thrust of the disinvestment programme shifted to strategic sale and Government successfully disinvested through strategic sale companies like Modern Foods Industries (India) Ltd. (MFIL), Bharat Aluminium Company Ltd. (BALCO), CMC Ltd., HTL Ltd., IBP Ltd., Videsh Sanchar Nigam Ltd. (VSNL), Paradeep Phosphates Ltd. (PPL), Hindustan Zinc Ltd. (HZL), Indian Petrochemicals Corporation Ltd. (IPCL) and Maruti Udyog Ltd. (MUL) and a number of hotels of India Tourism Development Corporation Ltd. (ITDC) and Hotel Corporation of India Ltd. (HCI). A statement indicating the realisation from strategic sale during 1999-2003 is as under:-

Strategic disinvestment during 1999-2003

Name	Percentage equity sold	Amount realised (Rs. in crore)
1a. Modern Food Industries (India) Ltd.	74.00	105.00
1b. Modern Food Industries (India) Ltd.- Phase-II	26.00	44.00
2. Bharat Aluminium Company Ltd.	51.00	826.50@
3. CMC Ltd.	51.00	152.00
4. HTL Ltd.	74.00	55.00
5. Lagan Jute Machinery Co. Ltd.	74.00	2.53
6. ITDC – 19 hotels
a) Agra	100.00	3.61
b) Bodhgaya	100.00	1.81
c) Hassan	100.00	2.27
d) Mamallapuram	100.00	6.13
e) Madurai	100.00	4.97
f) Bangalore	Long-term lease-cum – management contract	39.41 (up-front fee); (4.11-MGAP)
g) Qutab	100.00	34.46
h) Lodhi	100.00	71.93
i) LVPH, Udaipur	100.00	6.77
j) Manali	100.00	3.65
k) Kovalam	100.00	40.39
l) Aurangabad	100.00	16.50
m) Airport Kolkata	100.00	19.39
n) Khajuraho	100.00	2.19
o) Varanasi	100.00	8.38
p) Kanishka	100.00	92.37
q) Indraprastha (AYN)	100.00	43.39
r) Chandigarh project	100.00	17.27
s) Ranjit	100.00	29.20
Sub -total		444.09
7. Hotel Corporation of India – 3 hotels
a) Juhu, Mumbai	100.00	153.00*
b) Rajgir	100.00	6.51*
c) Airport, Mumbai	100.00	83.00*
Sub-total		242.51
8. IBP Ltd.	33.58	1153.68
9. Videsh Sanchar Nigam Ltd.	25.00	3689.00^
10. State Trading Corp. of India Ltd.	—	40.00#
11. Minerals & Metals Trading Corporation of India Ltd.	—	60.00#
12. Paradeep Phosphates Ltd.	74.00	151.70
13. Jessop & Co. Ltd.	74.00	18.18**
14. Hindustan Zinc Ltd.	26.00	445.00
15. Maruti Udyog Ltd.	—	2424.00^^**
16. Indian Petrochemicals Corp. Ltd.	26.00	1490.84
Grand Total		11,350.21

* Proceeds to go to Air India ** Expected ^ including dividend & dividend Tax ^^ (minimum amount to be received over 3 tranches; could go up to Rs.3158 crore)

# Transfer of surplus cash reserve

@ Including financial restructuring, dividend and dividend tax.

Out of the 12 PSUs disinvested so far, four have been loss making. ITDC and Hotel Corporation of India, in which strategic sale has been completed, were also loss-making. In fact, by selling loss making companies and those companies, which are under reference to Bureau of Industrial and Financial Reconstruction (BIFR) like Paradeep Phosphates Ltd. (PPL), some hotels of ITDC/HCI etc. the Government saved the amount it would have paid in rehabilitation packages. Now strategic investors, as required, will provide this money.

Benefits to small investors

The small investor who had stake in PSUs has gained tremendously due to open offer after strategic sale in CMC, VSNL, IBP, HZL and IPCL.

Benefits to employees

In general, security of employment has continued in the PSUs disinvested so far and no retrenchment has taken place due to disinvestment. In most of the companies disinvested, employees have gained by way of raise in pay and allowances. It will lead to growth in their buying power and therefore growth in the region. For example :

Wages have been increased by an average of Rs. 1600 per employee in Modern Food Industries Limited;

Employees of Paradeep Phosphates Ltd. (PPL) were agitating for wage revision at the time of accepting bids as wage revision due with effect from 1997 had not been affected due to the health of the company.

The new management had assured that revision of pay scales would be implemented within 90 days of their becoming strategic partners. They have implemented the revised wages w.e.f. March, 2002. The revision would mean an average increase of Rs. 2, 789 per month for 1, 140 regular employees, which is an additional financial burden of Rs. 31.61 lakh per month (approx. Rs. 3.79 crore per annum);

In BALCO, wages had not been increased after April 1, 1999 even though a revision was due. In spite of a loss of about Rs. 200 crore due to the strike, an ex-gratia payment of Rs 5,000 was paid to all employees and a long term wage agreement for a period of five years entered into by the management with the employees on October 7, 2001, which guaranteed benefit of 20 per cent of basic pay to each employee, besides increase in a number of allowances

Private sector has got an opportunity to participate in management of Government companies; and,

Encouraged by the results at the national level, States have been encouraged to implement disinvestment in State Level Public Enterprises (SLPEs);

After strategic sale of VSNL, CMC Ltd. and Hindustan Zinc Ltd., shares of these companies were also disinvested in favour of the employees of the companies on concessional rates.

On December 9,2002, Minister of Disinvestment announced certain policy decisions in Parliament. The summary of the statement is as follows:

The main objectives of disinvestment are to put national resources and assets to optimal use and in particular to unleash the productive potential inherent in our public sector enterprises;

Government will ensure that disinvestment does not result in private monopolies;

Government would set up a Disinvestment Proceeds Fund to be used for social and infrastructure sectors. The fund would be used for financing fresh employment opportunities and investment and for retirement of public debt; and

Ministry of Finance and Ministry of Disinvestment will work out guidelines for disinvestment of natural assets companies.

With these objectives as the guiding principle, the Government has taken the following specific decisions:

To disinvest through strategic sale of shares to the public in Bharat Petroleum Corporation Limited (BPCL);

To disinvest in Hindustan Petroleum Corporation Limited (HPCL) through strategic sale; and

To allot, in both cases of BPCL and HPCL, a specific percentage of shares to the employees of the two companies at a concessional price.

Subsequent to this suo motto statement of Minister of Disinvestment, the Ministry of Finance has decided that it is not necessary to set up a separate Asset Management Company and the residual Government-held shares in disinvested companies are to be handled by UTI –I.

The Disinvestment Process

The Ministry of Disinvestment has laid down guidelines for qualification of merchant bankers etc. for appointment as Advisor and for bidders seeking to acquire stakes in Public Sector Enterprises through the process of disinvestment. The prospective advisors and bidders have to give undertaking at the stage of submission of EOI that they are eligible as per the criteria fixed by the said guidelines and that they have not been facing proceedings by any Regulatory Authority against any “Grave Offence” or “fraud” or have not been convicted by any Court of law. The Government appoints professional Advisor, Asset Valuer and Legal Advisors through a process of competitive bidding to assist Government in the process of disinvestment through strategic sale. All decisions are taken in Inter-Ministerial fora, initially by inter-ministerial Group, then by a Core Group of Secretaries on Disinvestment, followed by Cabinet Committee on Disinvestment. The procedure followed is transparent and has withstood the test of time.

Judicial review of Disinvestment decision

Fifty-one per cent of Government held equity in Bharat Aluminium Company Ltd. (BALCO) was disinvested on March 2, 2001 in favour of Sterlite Industries (India) Ltd. for Rs 551.50 crore. In protest, the workers went on a 67-day strike.

Three writ petitions – two in Delhi High Court and one in Chhattisgarh High Court were filed against disinvestment in BALCO in February, 2001. Since the issues involved in all three cases were similar, a transfer petition was filed by the Ministry of Disinvestment in the Supreme Court. The Court considered the petition, stayed the proceedings in the High Courts and transferred all the three petitions for hearing in the Supreme Court. The case was heard by a three-judge bench in the Supreme Court. The Supreme Court in its unanimous judgement delivered on December 10, 2001 has validated disinvestment by the Government in BALCO. The landmark judgement also defined, amongst others, the parameters of judicial review in Government’s economic policy matters. The Hon’ble Supreme Court, in its order dated December 10, 2001, while validating BALCO-disinvestment and dismissing the petitions, remarked: “Thus, apart from the fact that the policy of disinvestment cannot be questioned as such, the facts herein show that fair, just and equitable procedure has been followed in carrying out this disinvestment.”

In addition, out of 40 cases filed in different High Courts against disinvestment of implementation process, 21 cases have been dismissed by the concerned High Courts. There has been no case so far where any judicial court has decided against the Government with reference to the disinvestment programme.

EDUCATION

86^th Constitutional Amendment Act 2002

A major initiative has been the move to make free and compulsory education a fundamental right for all children in the 6-14 year age group. The Constitution (86th Amendment) Act was enacted by Parliament in 2002 followed by President’s assent to it in January, 2003. With this, every child can demand elementary education from the State as a fundamental right. The act also devolves a duty on the parents to also provide possible opportunities of education to children in this age group.

Sarva Shiksha Abhiyan

The Government has adopted twin-pronged approach for education for all. The scheme of Sarva Shiksha Abhiyan (SSA), launched in November, 2000 by the Department of Education, is a holistic step taken to achieve the goal of universalisation of elementary education through a time bound, integrated approach in partnership with States and local bodies and the community. It aims at sending all children to schools, Education Guarantee Scheme Centres or bridge courses by 2003; all children completing five years of primary schooling by 2007; all children completing 8 years of schooling by 2010 and universal retention by 2010. Special attention is paid to the needs of girls and SC/ST children. Upto 3 January this year, annual district elementary education plans of 576 districts in 28 States / UTs have been approved for an outlay of Rs. 3,081 crore.

National Literacy Mission

To remove adult illiteracy in the age group 15-35 years, 98 per cent of the districts in the country have been covered under adult literacy campaigns. Besides, school dropouts and others outside this age bracket who missed education are covered under the National Literacy Mission programmes.

Out of 599 districts, 587 districts have been covered. Over a hundred Jan Shikshan Sansthans have been set up to provide vocational skills to neo-literates and function as district resource centres. Fifty of them were opened in the last four years.

The Literacy rate in 2001 has been recorded at 65.38 per cent, as against 52.51 per cent in 1991, i.e. an increase of 13.17 percentage points, the highest ever in any decade. Female literacy during this period grew at a higher rate of 14.8 per cent.

NITs: New Centres of Excellence

Seventeen National Institutes of Technology (NITs) have been created by restructuring the Regional Engineering Colleges (RECs). They have been granted ‘deemed to be University’ status. Consequent upon grant of this status, these Institutes have full autonomy in the academic matters in addition to complete administrative freedom to decide their own affairs.

New Institutes for IT

Indian Institute of Information Technology, Allahabad, and Indian Institute of Information Technology and Management, Gwalior were set up in the last five years. The University of Roorkee was upgraded into Indian Institute of Technology and integrated with the IIT system in record time. Besides, IIT at Guwahati established during the 8^th Plan was also fully operationalised.

Mahila Samakhya Programme expanded

Mahila Samakhya Programme, which now covers 9,000 villages in 10 States, was awarded the Honorable Mention of NOMA literacy prize by UNESCO. The prize was given for providing scheme innovations to education of women and adults left out of the education system. Besides, the United Nations has adjudged Jansala Programme as one of the two best practices in the world. The programme is in cooperation between the Government and United Nations system.

Computer Literacy and Studies in Schools (CLASS)

A revised Computer Literacy and Studies in Schools (CLASS) Scheme was introduced in 2001, to create awareness among school students about computer and its usage in teaching-learning process. Kendriya Vidyalaya Sangathan (KVS) and Navodaya Vidyalaya Samiti (NVS) would also convert one school per State/UT into a SMART school.

On Demand Examination System

The National Institute of Open Schooling (NIOS) has initiated the On Demand Examination System (ODES). ODES envisages giving freedom to learners in the subjects of their choice whenever they want to appear for the exams. ODES has been started at the open basic terminal stage equivalent to the grade VIII and steps are under way to extend it to the secondary stage.

National Assessment and Accreditation Council (NAAC)

To ensure better quality of higher education, accreditation with NAAC has been made obligatory for all universities and colleges. A National Board of Accreditation has also been set up in the All India Council of Technical Education (AICTE). Based on the quality of the courses and infrastructure available, the Board issues certificates of ‘A’, ‘B’ and ‘C’ Grades. All approved colleges are slated to be accredited by 2006.

Curriculum updation in the field of higher education has been undertaken on a priority basis. The UGC has announced 45 new courses so that emerging areas can be covered in the tertiary system.

The Government has decided to identify educational institutions that have a potential to be declared as Universities of Excellence. At present, there are 17 universities, which have been declared as universities with potential for excellence.

‘Gyan Darshan’, ‘Gyan Vani’ and ‘Eklavya Technology Channel’ launched

‘Gyan Darshan’ is the first ever 24-hour education TV channel of IGNOU in collaboration with Doordarshan. IGNOU has also set up 7 FM radio stations (the latest being in Bhopal) which are likely to be expanded to 40 stations under ‘Gyan Vani’. A TV channel has been devoted exclusively to technical education, the Eklavya Technology Channel.

Celebration of Sanskrit Year in 1999-2000

Continuing the strive to preserve and promote Indian culture and heritage, the year 1999-2000 was celebrated as Sanskrit Year for the first time. During the year, more than 250 organisations were granted financial assistance for development and promotion of Sanskrit.

In 2000-2001, an International Sanskrit Conference was organised, in which more than 2,000 delegates including some foreign delegates participated.

An amount of Rs. 84 crore have been spent in the last five years on promotion of Sanskrit language.

Thrust on Education for Minorities

The programme ‘IT Education in Minority Institutions’ was started to train minority children in technical skills. A drive has been launched to start computer application diploma in Urdu language.

In order to provide an added thrust, focus and visibility to various programmes for educationally backward minorities, a unified programme, known as Area Intensive and Madarsa Modernisation Programme (AIMMP), has been launched with three components viz. (i) area intensive programme for educationally backward minorities; (ii) financial assistance for modernisation of madarsa education and (iii) appointment of part-time Urdu, Persian and Arabic teachers. Financial allocation has also been raised from Rs.115 crore during the 9^th Plan to Rs.160 crore in the 10^th Plan.

Promotion of Urdu, Persian and Arabic languages has been supported with manifold increase in budget outlays for these languages.

All India Engineering Entrance Examination

An All India Engineering, Architecture, Pharmacy Entrance Examination has been initiated at the national level, in pursuance of the National Policy on Education and in the interest of students and parents as also to ensure transparency and objectivity in admissions. Common exams for admissions to MBA/PGDM and MCA programmes at the national level are also on the anvil.

In view of the high siesmicity of major parts of the country and lack of emphasis on earthquake prone structures, a national programme for earthquake engineering education to give greater thrust to earthquake engineering education, is being launched.

Greater Thrust on Bio-Technology Education

Greater thrust is being given to Biotechnology education, particularly in premier institutions to produce high quality biotechnology manpower. All IITs are to start programmes in biotechnology.

Reforms in IITs

The intake in the IITs has been accelerated so that the benefit of high quality technical education is available to larger sections of students. The computing and networking facilities in IITs have also been upgraded to world standards through special financial assistance. Joint Entrance Examinations for admissions to IITs have been reviewed to bring them in harmony with the school education system and to curb the menace of coaching. Besides, a policy framework for promotion of post-graduate education and research in engineering and technology has been laid down to give special thrust to post-graduate education and thrust in engineering and technology. Performance based funding pattern has been introduced in IITs as a strategic intervention to bring greater focus on outcomes and to steer development of the IIT system in accordance with national priorities.

National Centre for Value Education Established

A National Centre for Value Education in engineering has been established at IIT Delhi. All engineering institutions and professional educational institutions are integrating value education as a part of their curriculum.

National Curriculum Framework for Schools

After an unprecedented national consultative process, the national curriculum framework for school education was evolved by NCERT in the year 2000. It covers the entire span of schooling and meets the long felt need for a standard curriculum as per the National Policy on Education 1986 and the IX Plan document.

Massive Expansion of Technical Education

There has been very large expansion in the setting up of technical institutes with the participation of trusts/societies in the last few years. In 1997-98 there were 562 degree level engineering colleges with an intake capacity of 1.34 lakh. In the year 2002-2003, the total number of AICTE approved engineering colleges has gone up to 1,195 with a total intake capacity of 3.86 lakh students. There has been a major thrust in increasing intake in IT related courses.

Stress on Quality Technical Education

A massive programme for improvement of quality of technical education in the country, named “Technical Education Quality Improvement Programme of Government of India”, has been launched. The first phase will develop about 20 leading engineering institutions as centres of excellence and through them achieve quality upgradation in nearly 60 more institutions at a cost of Rs 1,550 crore. A consortium based system of subscription to electronic resources has been put in place with a view to providing international journals to institutions at a substantially low cost.

ENVIRONMENT AND FORESTS

Charter on Corporate Responsibility for Environmental Protection (CREP), Kanyakumari Declaration on Conservation of Marine Biodiversity, Coimbatore Charter on Protection of Environment, accelerated Participatory Forest Management, launching of National Green Corps to sensitise school children to environmental concerns illustrate the Government’s commitment to protection of environment in a concerted manner with the participation of stakeholders during the last five years. While these initiatives reflect the Government’s philosophy that protection and improvement of the quality of environment is not the exclusive domain of the Government, several legislative and administrative actions highlight the commitment to protect the environment through enforcement of law.

Participatory Approach

The Charter on Corporate Responsibility for Environmental Protection, the culmination of four-month long discussions among the Central and State Governments, pollution control boards and 17 categories of major polluting industries resulted in the voluntary commitment of the industry to go beyond the existing pollution control norms to significantly improve the environment. Sugar industry, pharmaceuticals, distilleries, tanneries, pesticide units, cement industry, fertiliser industry, dyes and dye intermediates, pulp and paper, thermal power plants, petrochemical units, caustic soda industry, oil refineries, aluminium plants, iron and steel sector, copper and zinc industry have come forward to take necessary technological initiatives for modernisation and upgradation of production and processing activities to radically bring down the pollution load in a time bound manner. According to the Government’s approach, the agreed upon pollution control programme based on enlightened commitment of the industry will make a significant difference to improving the quality of environment marking a significant improvement over the command and control based enforcement mechanism. The Charter was released in March, 2003.

The Kanyakumari Charter on Conservation and Management of Marine Biodiversity emphasised that biodiversity could be protected without prejudice to livelihood security and long-term developmental needs of the nation through scientific study of the available resources, carrying capacity and sustainable alternatives. The Charter released in March, 2003 while making several recommendations underscored that all stakeholders should be taken into confidence while taking up conservation measures and the socio-economic and ethnic aspects besides awareness generation shall be built into all conservation projects. The Coimbatore Charter adopted by the Central and State Governments in January, 2001 also highlighted the stakeholder participation in environmental protection. Under the Charter the State Government agreed to bear 30 per cent of the cost of river conservation projects.

Conservation

The National Biodiversity Strategy and Action Plan (NBSAP) Project launched by the Government is the largest participatory exercise ever undertaken in any country. NBSAP, to be announced soon is a multi-layer action plan to conserve biodiversity of the country through 74 action plans at national, regional, State and sub-State levels. In contrast to the usual top-down approach, the Government has preferred the bottom-up approach for meaningful participation of local communities and other stakeholders to conserve the priceless biodiversity of the country. National Wildlife Action Plan: 2002-2016, adopted in January, 2002, aims at strengthening and enhancement of the Protected Areas network and its management on scientific lines. This is based on the recognition that effective eco-system conservation is the foundation of long-term ecological and economic stability. Food security and availability of fodder, fuel and other products required for sustenance of local communities is sought to be ensured while protecting the wildlife.

Conservation of wetlands is reoriented to focus on biological methods rather than on adopting engineering options. Management Action Plans have been prepared for 18 wetlands out of 20. Chilka Development Authority has won the prestigious Ramsar Conservation Award for effective ecological interventions under the guidance of Ministry of Environment and Forests. Eleven new wetlands of international importance in the country, covering an area of more than 4.5 lakh hectares, have been designated as Ramsar sites which is an acknowledgement of the country’s efforts for conservation of rich biological diversity. With this 19 Indian sites covering about 6.5 lakh hectares have so far been identified as Ramsar sites.

Rallying Global Action

India has emerged as a major player in the global action for environmental protection. New Delhi has successfully hosted the 8^th Conference of Parties to the United Nations Framework Convention on Climate Change (COP-8) during October-November, 2002. India has been instrumental in the adoption of Delhi Declaration at this conference, which focussed the international attention on the need to address the concerns of the developing countries in respect of climate change. The Delhi Declaration highlighted the need for enhancing the ability of developing countries to cope up with the consequences of climate change by addressing the adaptation and vulnerability issues. India also played a key role in warding of the efforts of some developed countries to impose ‘voluntary commitments’ on developing countries to bring down greenhouse gas emissions, which have economic implications. India has ratified the Kyoto Protocol on greenhouse gas emissions. India also played an active role at the World Summit on Sustainable Development (WSSD) at Johannesburg during August-September 2002. India’s argument that the developed world has to meet their obligations under Rio Principles has been upheld at the Summit. WSSD has committed the developed world to significantly increase access to clean energy, sanitation and safe drinking water to the people of developing countries.

Meeting the Emerging Challenges

In a significant move the Minister of Environment and Forests has accorded conditional clearance to the commercial introduction into the country of Bt cotton after rigorous field trials and evaluation. While setting up an elaborate institutional mechanism for monitoring the introduction of genetically modified organisms into the country, the Government has ratified the Cartagena Protocol on Biosafety which seeks to regulate the transboundary movement of living modified organisms. The Genetic Engineering Approval Committee under the Ministry of Environment and Forests has taken a firm view in rejecting the proposals for import of corn soya blend when some of the apprehensions were not adequately addressed to by the importing and exporting parties.

Legislative Initiatives

During the last five years, several legislative and administrative initiatives were taken for conservation of biodiversity and protection of environment. The Biological Diversity Bill was passed to regulate access to diverse genetic resources and associated traditional knowledge by foreign individuals and institutions. The Act also seeks to ensure equitable sharing of benefits arising out of the use of these resources and knowledge with the country and the people. India is the first among 12 mega-diversity nations to make such a legislation. The Water Cess Act has been amended to reduce indiscriminate consumption of water by the industries by increasing the water rates. The amended Act also encourages saving of water by providing for special rates for reducing water consumption. The Wildlife Act has been amended providing for stringent punishment for crimes against wildlife and to promote peoples’ participation in management of sanctuaries and national parks.

Fly Ash rules are being modified to make its use mandatory in construction, laying of roads, reclamation of low lying areas etc. Use of fly ash bricks or blocks or tiles is proposed to be made compulsory for all agencies engaged in the construction of buildings within a radius of 100 kms. from coal or lignite based thermal power plants. Asbestos rules have been modified providing for most stringent emission norms. Bio-medical Waste Management and Handling rules have been brought into effect from January, 2000 laying down the procedure for segregation, labelling, transport and disposal of bio-medical wastes. The sale and auction of used lead acid batteries has been regulated and only the registered units are allowed to participate in the auctions from December, 1999. Noise Pollution rules have been notified in the year 2000 for prevention and control of noise pollution. Municipal Solid Wastes Rules were notified in September, 2000.

Vehicular Pollution Control

Efforts to control vehicular pollution have begun to yield the desired results. Rules for mass emission standards known as India-2000, similar to Euro-I for all categories of vehicles manufactured from April 1, 2000 have been notified and made effective throughout the country. Stringent emission standards known as Bharat-II, similar to Euro-II norms have been made effective from April 1, 2000 in the National Capital Region. Compressed Natural Gas (CNG) as cleaner auto fuel has been introduced in some cities. From September 1, 1998, only unleaded petrol is being made available in Delhi. Twenty-four highly polluted areas have been identified in the country for concerted efforts for pollution control. Action Plans have been prepared and are being implemented in these areas. The National Air Quality Monitoring Programme has been expanded to comprise 290 stations covering 90 cities and towns in 24 States and five Union Territories in the country.

Minimum National Standards (MINUS) for 70 categories of polluting industries have been evolved. A special scheme for preparation of Zoning Atlas has been launched under the Environment Management Capacity Building Programme with World Bank assistance. This is to help in siting of industries, industrial estate planning etc. This exercise has been completed for 60 districts and work is in progress for 61 more districts in 18 States and one Union Territory.

People and Forests

The Joint Forest Management Programme is being given momentum since 2000 so as to catapult this as a people’s movement. JFM Committees have been accorded the necessary legal back-up besides extending this concept to dense forest areas. The Ministry has reviewed the implementation of all the national afforestation programmes in the country to strengthen Joint Forest Management. Consequently, by converging all related schemes, a National Afforestation Programme based on Forest Development Agencies (FDA) model has been launched. An outlay of Rs.1,025 crore has been provided for this programme for the 10^th Five Year Plan marking a two-fold increase over that of the 9^th Five Year Plan. FDA constitutes decentralised institutional mechanism at the territorial/wild life forest division level for devolution of Central funds for promoting decentralised management of forests through people’s participation. Twenty States have accepted this model. All the 775 territorial/wildlife forest divisions would eventually be covered under this programme.

Towards the target of bringing one-third of the country’s land area under forest/tree cover, the forest cover in the country has increased by 3,896 sq. km. for the assessment period 1997-99. A sum of Rs.445 crore has been provided for in the 10^th Five Year Plan under Integrated Forest Protection Scheme for prevention and control of forest fire, strengthening forest protection infrastructure, preparation of working plants, etc.

The Joint Forest Management (JFM), which provides for sharing of benefits of the forest conservation with the local communities has doubled from 7 million hectares in 1998 to 14 million hectares in 2002. The Village Forest Protection Committees have also increased from 33,000 to about 64,000 and are managing 19 per cent of the country’s forest cover. All the 1,70,000 forest villages in and around 32 million hectares of degraded forest in the country will be brought under JFM by the year 2007.

Policy Review

The first ever National Forest Commission has been set up to review and assess the existing policy and legal framework and their impact from the ecological, scientific, economic, social and cultural view points. It will also examine the current status of forest administration and the forestry institutions, both at the national and State levels, to meet the emerging need of the civil society. It will recommend specific policy options for achieving sustainable forest and wildlife management. The seven-member commission will be headed by Justice B.N.Kripal.

Awareness and Education

A new programme, National Green Corps has been launched in 2001-2002 to spread environmental awareness among school children. Major thrust is on dissemination of knowledge through activity oriented programmes. Eco Clubs are to be established in 100 schools in each district of the country. So far, more than 40,000 clubs have been established. To infuse ecological concerns into school curriculum, without increasing the burden on school children, a pilot project is initiated in eight States to revise the textbooks. Efforts are on to extend the programme to other States. To encourage hands-on environmental learning of school children, the Ministry has selected 900 schools across the country to implement ‘Global Learning and Observation to Benefit the Environment’ (GLOBE) programme. The Ministry also supported the first-ever environmental film festival ‘Vatavaran 2002’ in which more than 100 films were screened.

FAMILY WELFARE

National Population Policy, 2000

India adopted a comprehensive and holistic National Population Policy (NPP) 2000, with clearly articulated objectives, strategic themes and operational strategies. The Policy enumerates certain socio-demographic goals to be achieved by 2010, which will lead to achieving population stabilisation by 2045.

The National Population Policy, 2000, has identified the immediate objectives as meeting the unmet needs for contraception, health care infrastructure and trained health personnel and to provide integrated service delivery.

National Commission on Population

The National Commission on Population (NCP), presided over by the Prime Minister, with the Chief Ministers of all States and UTs, and the Central Minister in Charge of concerned Central Ministries and Departments, reputed demographers, public health professionals and NGOs as members, has already been constituted.. As per the mandate given to the NCP, it has to promote inter-sectoral co-ordination in planning and implementation across Government agencies of the Central and State Governments, to involve the civil society and the private sector, and to explore the possibilities of international co-operation in support of the goals set out in the National Population Policy, 2000.

Jansankhya Sthirata Kosh

At the first meeting of the National Commission on Population held on July 22, 2000, a decision was taken to set up a National Population Stabilisation Fund (NPSF). It has been decided to register the National Population Stabilisation Fund as an autonomous Society as the “Jansankhya Sthirata Kosh’, to be located in the Department of Family Welfare, with a core corpus of Rs. 100 crore. The objective of the fund is to provide a window for canalising resources from national voluntary organisations, corporate sector, industry, trade, organisations and individuals etc., to aid projects of population stabilisation. The process regarding registration of Jansankhya Sthirata Kosh as society, is being completed

Empowered Action Group (EAG)

In pursuance of the decisions taken at the First Meeting of the National Commission on Population, an Empowered Action Group (EAG) was constituted in the Department of Family Welfare, Ministry of Health and Family Welfare, on March 20, 2001, under the Chairmanship of the Union Minister of Health and Family Welfare. The EAG facilitates the preparation of area specific programmes to address the unmet need for supplies, services, health care providers and health infrastructure, initially in 8 States of UP, MP, Bihar, Rajasthan, Orissa, Uttranchal, Chhatisgarh and Jharkhand.

Involvement of NGO and Community

In the family welfare programme, the Government has involved non-Government organisations and private sector. By now, the Government has recognised Mother non-Government Organisations for 439 districts of the country, through a network of 1,000 field level NGOs. Four Regional Resource Centres at Delhi, Kolkata, Mumbai and Dindigul have been recognised, which will help in capacity building of these NGOs.

Convergence of services through Health Melas

Convergence of health and family welfare services has been attempted through health melas in under-served areas/districts where these services were deficient. Health Melas were organised for integrated services and counselling to all needy, free of cost, with proper survey and publicity.

Involvement of Panchayat Raj Institutions (PRIs)

To encourage promotional/motivational measures in the form of community incentives for involvement of Panchayati Raj Institutions (PRIs) in Family Welfare Programme, the following schemes are being implemented through the PRIs:

The National Maternity Benefit Scheme for providing cash assistance of Rs. 500 to pregnant women in Below Poverty Line (BPL) families; and,

The Referral Transport Scheme for assisting women from indigent families in 25 per cent of the Sub-centres in selected states for transportation to a referral unit during emergency.

Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994

With a view to containing the menace of female feticide, the Government has brought into force the Pre-Natal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994 (PNDT Act) with effect from January 1, 1996.

The Act prohibits determination and disclosure of sex of the foetus lest it should lead to female feticide. The Act also prohibits any advertisements relating to pre-natal determination of sex. The person who contravenes the provisions of the Act is punishable with imprisonment upto 5 years and fine upto Rs.1,00,000.

Central Supervisory Board (CSB) has been constituted under the Chairmanship of Minister for Health and Family Welfare, to review and monitor the progress of the PNDT Act. The Board has already met eight times since its constitution. The last meeting was held on October 8, 2002.

Appropriate Authorities and Advisory Committees have been constituted in all States and UTs at State/UT and district levels and also at sub-district levels in most of the major States.

A National Inspection and Monitoring Committee has been set up on December 3, 2001, to keep a constant watch on all States and UTs for implementation of the PNDT Act and compliance of the directions of the Supreme Court of India. The Committee has already visited Chandigarh, Faridabad (Haryana), Muzaffarnagar (U.P.), Delhi, Mumbai, Aurangabad, Ahmednagar, Beed, Jalgaon (Maharashtra), Ludhiana, Fatehgarh Saheb (Punjab), Mehsana, Khera, Ahmedabad (Gujarat), Jaipur and Alwar (Rajasthan) and the observations of the Committee have been forwarded to the States/UTs for necessary action.

Various activities are undertaken regularly to create public awareness through Government media units, viz. Radio, TV and other media units. Various stations of AIR are broadcasting spots, group discussions, talks and panel discussions on PNDT Act in various languages.

Training programmes are being conducted to sensitise the Appropriate Authorities upto sub-district level in various States/UTs.

Keeping in view the emerging technologies, difficulties encountered in implementation of the Act and directions of the Hon’ble Supreme Court, the Act as well as Rules, have been amended with effect from February 14, 2003.

Area Projects

Area Projects are being implemented with assistance from International donor agencies in selected States and backward districts for strengthening health and family welfare infrastructure and delivery systems in the States.

World Bank assisted in successful completion of Eighth India Population Project (IPP-VIII) covering 11.3 million urban slum/poor population in the 4 metro cities and 94 medium sized towns/cities; Ninth India Population Project (IPP-IX) in the States of Karnataka, Rajasthan & Assam; UNFPA assisted District Reproductive Health Projects in 5 Districts and DFID assisted Health and Family Welfare Project in Orissa.

The DANIDA assisted Health and Family Welfare Project in Tamil Nadu, Madhya Pradesh and Chhatisgarh; German assisted Basic Health Project in Maharashtra and UNFPA assisted Integration Population Development Project in 32 districts of 6 States, viz. Rajasthan, Maharashtra, Madhya Pradesh, Orissa, Gujarat and Kerala are other Area Projects under implementation.

New construction of 3,733 sub-centres/sub-health posts, 530 health centres/health posts, 73 maternity homes/centres, 195 Primary Health Centres and 5 Rural Hospitals have been completed under various Area Projects and RCH Sub-Projects, besides repair, renovation/upgradation of a large number of facilities.

Urban Health

Urban Health is one of the thrust areas under Tenth Five-Year Plan, RCH-II, National Population Policy 2000 and National Health Policy 2002. A tentative allocation of Rs.700 crore is earmarked for this programme under RCH-II. Urban Health Project, with European Commission assistance, are under implementation in Lucknow, Aurangabad, West Bengal and Guwahati. Three new projects for 3 cities of Bhopal, Jabalpur and Indore in MP, have been sanctioned and Rs.50 lakh released for each of the 3 cities.

RCH Sub-Projects

Twenty-four district/city sub-projects are under implementation in 17 States w.e.f. September, 1997, to address the gaps in the delivery of Family Welfare and Health Care Services in selected districts/cities to achieve an overall RCH status equivalent to the average for that State.

INFORMATION, EDUCATION AND COMMUNICATION (IEC)

New Initiatives and Thrusts

For implementation of the National Population Policy goals through the RCH Programme, a National Communication Strategy was adopted in October, 2000. The strategy placed the district as the focal point for all communication programmes, which would have the support of State and Centre. Ideally, the district was the best place to work in the language, dialect of the area.

IEC activities are also being organised on priority basis in the districts of EAG States as per the guidelines on the National Population Policy. To opertationalise the IEC strategy under the RCH Project, additional funds have been given to ten States, i.e., Assam, Uttar Pradesh, Madhya Pradesh, West Bengal, Bihar, Rajasthan, Orissa, Uttranchal, Chattisgarh and Jharkhand, and for local mass media activities and local specific interactive activities.

RCH Programme

The RCH programme, started in 1997-98 covering 178 districts, has been extended to all the districts in the entire country.

The European supported Sector Investment component has been extended from initial 11 States to 24 States.

The programme ensured additional support for the Post Gujarat Earthquake reconstruction activities by providing funds for re-construction and re-development of health facilities in Gujarat.

Donor assistance of about Rs. 2,726 crore. was mobilised from different donors like World Bank, European Commission, DFID and UNICEF etc.

Financial assistance has been provided to improve facilities for essential and emergency obstetric services, by construction of operation theatre/labour room and other facilities of hospitals.

Involvement of Non-Government Organisations (NGOs) in population stabilisation and implementation of RCH programme, was ensured. One hundred and six MNGOs, covering 439 districts, have so far been involved. In addition, 28 SGI Projects and 25 Innovative Projects, have also been sanctioned. The total network of NGOs is in the range of 1,000.

Maternal Health Division

Programmes run in the Maternal Health Division of the Ministry of Health and Family Welfare, aim at reduction in maternal mortality to less than 100 per 1,00,000 live births by 2010, which is one of the important goals of the National Population Policy -2000.

Essential Obstetric Care

Providing Essential Obstetric Care to all pregnant women includes registration of pregnant woman at 12-16 weeks of pregnancy, at least 3 ante natal check up, provision of IFA tablets for anaemia, TT immunisation, safe/institutional deliveries and post natal check up. The programme is being implemented by way of providing drugs and equipment to 54 PHC/CHC/FRU.

Additional ANMs

Many of the services of Essential Obstetric care are provided by ANM. In C Category districts, status of RCH being poor, in all such districts of 18 States, viz. Uttar Pradesh, Bihar, Madhya Pradesh, Orissa, Haryana, Rajasthan, Uttranchal, Jharkhand, Chhatisgarh, Delhi and 8 North Eastern are being supported for improving delivery of services by providing additional ANMs in 30 per cent of sub-centres of these districts. A sum of Rs. 9,280.15 lakh have been released to the States since 1997, against which 5,555 additional ANMs have been appointed on contractual basis.

Safe Motherhood Consultants

To alleviate the shortage of trained manpower in PHCs/CHCs and sub-district hospitals, a scheme of appointing doctors trained in MTP techniques as Safe Motherhood Consultants, are in operation in 22 States.

24-Hours Delivery Services at PHCs/CHCs

Promoting institutional deliveries, which will have impact on maternal mortality and morbidity rate, as well as health of new born, has been one of the important objectives of the Government.

National Benefit Maternity Scheme (NMBS)

The scheme has been introduced to provide for 100 per cent Central Assistance to the States/UTs for extending financial benefit of Rs. 500 per pregnancy for first two live births to women belonging to households below poverty line, who have attained 19 years of age or above. However, in exceptional cases, the benefit can be made even after delivery. During 2002-2003, Rs. 75.34 crore has been disbursed to 547 districts.

Training of MBBS Doctors in anaesthesia for emergency obstetric care

Acute lack of anaesthetists, particularly in sub-district areas, has been one of the concerns and an obstacle in proving emergency obstetric care to pregnant women. With a view to providing services of an anaesthetist at the FRU level, under the Chairmanship of Prof. Rabi Saksena, All India Institute of Medical Sciences, a curriculum in to train MBBS in life saving Anaesthesia skills for Emergency Obstetric Care, has been formulated. The Health and Family Welfare Minister has inaugurated the first Training programme on March 20, 2003. The first batch consists of 10 doctors from the State of Chhatisgarh. The course will be of 18 weeks duration.

Pilot Project on Manual Vacuum Aspiration (MVA)

The Ministry of Health and Family Welfare, under the RCH programme, is expanding and making safe abortion services accessible to all pregnant women with unwanted pregnancies. For improving access and providing quality safe abortion services, skilled-based training on MTP techniques have been imparted to 2,593 MBBS doctors (as on January 2, 2003) under the ongoing RCH programme.

The project of introducing the MVA technique is being piloted in two identified districts of each of the eight selected States initially. The States are Orissa, West Bengal, Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Rajasthan, Uttranchal and Uttar Pradesh.

Child Health Division

The Department of Family Welfare is implementing several interventions to bring down the infant and child morality. The notable amongst these are the interventions for immunisation against six vaccine preventable diseases, control of deaths due to acute respiratory infections (ARI) and diarrhoeal diseases and provision of essential new-born care.

Infant Mortality Rate In States

The National goal of IMR 30 per 1,000 live births by 2010, have already been achieved by 7 States and Union Territories (Kerala IMR 11, Delhi IMR 29, Goa IMR 19, Manipur IMR 20, Mizoram IMR 19, A & N Islands IMR 18, Chandigarh IMR 24, and Pondicherry IMR 22)

NEW INITIATIVES LAUNCHED BY CHD

Essential New-born Care

In order to accelerate the decline of lMR, essential newborn care was been included as an intervention under the RCH programme.

During 2001-02, this scheme has been initiated in 60 districts. It has been further extended to 80 additional districts during 2002-2003, out of which 20 districts have been covered so far. It is proposed to expand the scheme over the next three years to cover all the weak districts.

A total of 2,978 medical officers have been trained in first phase and 848 Medical officers in phase II. A total of 3,826 doctors have been trained.

Hepatitis B Project

The Prime Minister formally launched the Hepatitis B project on June 10, 2002, in the presence of a select group of invitees from national and international partners, and other Departments of the Government. The project will be implemented amongst the children (below 1 year) in slum populations of 15 metropolitan cities (which are at high risk for Hepatitis-B) and 32 districts of the country that have been evaluated to have a high routine immunisation coverage (more than 80 per cent) with currently used vaccines.

The Pilot Project would be conducted over a two-year period. The Hepatitis-B vaccine will be administered along with the three doses of primary DPT vaccination (6 weeks, 10 weeks and 14 weeks).

FERTILISERS

New Urea Pricing Policy

A new pricing policy for urea units is being implemented from April 1, 2003, to promote production efficiency through cost saving measures and efficient economic practices at par with international norms by domestic urea producers. The key objective of the New Policy is to gradually move in the direction of parity with international prices, based on the use of the most efficient feedstock and technology. The New Pricing Policy will be in the form of a group based concession scheme, placing urea units in six groups based on vintage and feed stock. The new scheme will be implemented in three stages. The modalities of Stage –III would be decided before April 1, 2006 after reviewing the implementation of Stage-I and Stage –II, including the prospects of availability of gas and LNG.

A beginning is being made in the realm of decontrol and liberalisation by restricting allocation of urea under the essential commodities Act to 75 per cent of the reassessed capacity of each unit in Kharif 2003, and 50 per cent of the capacity in Rabi 2003-04. The Urea units will be free to sell the remaining Urea at the designated Maximum Retail Price (MRP). During Stage-II, commencing from April 1, 2004, urea distribution will be totally decontrolled after evaluation of the performance in Stage –I.

Concession Scheme for P&K Fertiliser revised

The Government has revised guidelines for implementation of the concession scheme for decontrolled phosphatic and potassic (P&K) Fertilisers on August 5 , 2002. The revised guidelines lay stress on timely certification of sales; restricting eligibility for concession on SSP units that undergo the mandatory inspection by Technical Audit and Inspection Cell (TAC) and use grades of rock phosphate notified by the Department of Fertilisers and allows concession on P&K Fertilisers sold to fertiliser mixture manufacturers that are registered under FCO.

Balanced Consumption of Fertilisers

The consumption of Fertilisers, Nitrogen (N), Phosphates (P) and Potash (K) has been steadily increasing over the years. In nutrient terms, the fertiliser consumption rose by more than three times from 5.5 million tonnes in 1980-81 to 18.07 million tonnes in 1999-2000. However, in 2000-01, the consumption declined to 16.7 million tonnes due to inadequate rainfall in many parts of the country but rose significantly in the next year to 17.36 million tonnes, thereby increasing the per hectare fertiliser consumption to 90.12 Kg. in 2001-02 from 86.71 kg. in 2000-01. Higher increase in consumption of phosphate (3.96 per cent) and potassic fertilisers (5.96 per cent), as compared to nitrogenous fertilisers (3.57 per cent) in 2001-02, is a welcome trend towards balanced use of nutrients.

The fertiliser consumption is now more evenly spread between Kharif (46.6 per cent) and Rabi (53.4 per cent) seasons as against the one-third and two-third share of the total consumption, respectively, during the 1980s, reflecting more assured water availability during the Kharif season at the national level.

Long-term Policy for Joint Ventures in Fertiliser Sector

A long-term policy for setting up overseas joint ventures in the fertiliser sector will soon be in place. The alternative of setting up overseas joint venture projects has assumed critical importance since the availability of natural gas in the country is limited and its supplies to fertiliser units have been on the decline, forcing fertiliser units to opt for the costlier naphta to supplement their feed and fuel requirements.

OMIFCO, a joint venture urea project set up by IFFCO, KRIBHCO and Oman Oil Company in Oman, commenced implementation on August 15, 2002, and will begin commercial production of urea by July, 2005. The joint venture will supply 16.52 lakh tonnes of urea annually to Government of India at fixed long term prices for a period of 15 years and 2.48 lakh tonnes of merchant ammonia to IFFCO on similar terms. The OMIFCO Project would be a test case for future ventures by Indian fertiliser industry outside the country.

In the perspective of declining availability of domestic natural gas and high Naphta/FO/LSHS prices, the Indian companies are also looking at the option of establishing joint venture production facilities in other countries, which have rich reserves of natural gas and rock phosphate. Only joint ventures, with buy back arrangements for intermediates required for manufacture of phosphate fertiliser, have come up during the earlier plan periods. Indian companies have so far set up 3 joint ventures abroad in Senegal, Jordan and Morocco for manufacture of phosphoric acid. Experience indicates that these joint ventures have helped the country in acquiring an advantage in negotiations for import of phosphoric acid through short term/long term contracts.

Self Sufficiency in Urea and DAP Production

The country has attained near self-sufficiency in urea and DAP production as the Government has been consistently pursuing policies conducive to building domestic fertiliser production capacity in the public, cooperative and private sectors. Thirteen major fertiliser projects were commissioned in the country during the 9^th plan period (1997-2002), accounting for a total additional annual production capacity of 66.40 lakh tonnes of major fertilisers varieties. From a humble beginning with 30 thousand tonnes of nitrogen and phosphate production in 1950-51, India is currently the third largest producer of chemical fertilisers in the world after USA and China, with a total annual production capacity of 158 lakh tonnes of nitrogen and phosphate nutrients.

Re-Structuring of sick PSUs

The Government spends annually approximately Rs. 300 crore as non-plan assistance on four sick fertiliser companies viz. HFC, FCI, PDIL and PPCL, which have accumulated losses of more than Rs. 15,000 crore as on March 31, 2002. Considering this, the Government is pursuing closure of non-viable units and revival of viable units through comprehensive restructuring proposals based on unit-wise techno-economic viability with regard to these companies. Accordingly, the Government took the decision to close down the entire Fertiliser Corporation of India Ltd. (FCI) and Hindustan Fertiliser Corporation Ltd. (HFC), excepting its Jodhpur Mining Organisation, as the two public sector undertakings have been making losses since inception and their accumulated losses as on March 31 this year were Rs.7, 921 crore and Rs.6, 726 crore, respectively. The decision to close down the two undertakings will not impact the prices or availability of Urea as none of the units of FCI and HFC were in operation and the Haldia Fertiliser Project of HFC though mechanically completed in 1979, could never be commissioned. The country is almost self sufficient in Urea and its total availability in 2001-2002 was 21.6 million MT and consumption only 19.9 million MT. In addition, from 2005-2006 onwards, 1,652 Million MT of urea would be available from the Oman – India Fertiliser Company (OMIFCO). Also, the Government is considering expanding KRIBHCO at Hazira and the RCF at Thal.

FINANCE AND COMPANY AFFAIRS

Five years ago the Government assumed office with its declared commitment to move ahead with the second-generation reforms in the economic sector. These reforms would focus on strengthening the financial sector, giving greater thrust to development of infrastructure and housing and improving the quality of life for the rural poor and under-privileged. A number of initiatives were undertaken to implement this commitment.

Macro Economic Situation

The economy has gained in strength during the past five years with the current account balance of payments becoming positive after a gap of 23 years. The balance of payments current amount has moved from a negative position of US $ 4.0 billion in the year 1998-99 to a positive of US $ 1.66 billion in the year 2002-2003. Foreign exchange reserves today stand at an all time high of US $75.5 billion in the third week of February. This has led to the Government deciding to prepay US $ 3 billion of its external loans. India is now an exporter of grain to 15 countries and donor of hard currency aid to a dozen, along with rupee aid to another dozen countries. The rupee with foreign assets to currency ratio of 124.8 per cent is stable. Gross domestic savings as a proportion of GDP at market prices, have also improved and stand at around 24 per cent. In the last four years interest rates on Government securities have rapidly gone down from 12 to around 7 per cent , thus setting the stage for growth for investment.

With the sustained growth in the GDP, the ratio of external debt to GDP has been brought down from 24.3 per cent in 1997-98 to 20.1% in September, 2002. The external debt service to current receipt ratio has also declined from 18.9 per cent in 1998-99 to 14.1 per cent in 2002-03.

The Government has been able to curb the rising trend of prices with inflation being brought down from 5.3 per cent in 1998-99 to 4.4 per cent in 2002-2003. The 52-week average went down from 5.9 per cent to 2.6 per cent in the same period.

Employment and Poverty

A number of programmes were taken up to boost employment in both the organised and unorganised sector. Under the Minimum Wages Act in January, 2002, wages were raised for workers of mining and construction sector in the Central spheres. According to the data from the National Sample Survey between July, 1999 and June, 2001, the number of “chronically hungry” household declined from 12 to 6 per thousand in rural areas and 7 to 2 per thousand in urban areas. The unprecedented drought during 2002 adversely affected some States but with an active food management policy the incidents of poverty and deprivation was contained. The offtake of foodgrains under various welfare schemes was 5.48 million tonnes from April to October, 2002 which is considerably higher than 3.15 million tonnes during the previous years. The Government also undertook extensive drought relief measures in the affected states.

Schemes like ANNAPURNA to provide food security to senior citizens and Education Guarantee Scheme to provide an elementary school in every habitation, which doesn’t have a school within one-kilometre radius, have been introduced. The SWARNA JAYANTI GRAM SWAROZGAR YOJANA replaced the plethora of self-employment programmes for the rural poor.

A Task Force on drought was set up under the Chairmanship of Deputy Prime Minister with Finance Minister, Rural Development Minister, Food & Public Distribution Minister and Deputy Chairman, Planning Commission as members to constantly monitor the situation and issue policy directives from time to time to provide timely and adequate attention to the emerging demands of the States.

Fiscal Sector Reforms

A number of initiatives were taken by the Government to reform and strengthen financial sector institutions and systems. The reform and restructuring of the Unit Trust of India (UTI) was a major initiative affecting about 2 crore small investors and pensioners. The Government gave full assurance and guaranteed the repurchase of units under various UTI schemes including US-64. A restructuring programme for IFCI and corporatisation of IDBI was finalised to ensure financial viability.

The Foreign Exchange Management Act and the anti-Money Laundering Act were passed in Parliament.

A Debt Swap Scheme was implemented to improve the fiscal situation of the State governments by swapping high cost debt with low cost debts.

Capital Markets

In order to boost investor confidence and provide a fillip to capital markets a number of initiatives were taken.

The Securities and Exchange Board of India (SEBI) Act was amended to restore investor confidence, make capital market operations transparent, investor friendly and give SEBI more teeth. Some of the major amendments are:

- Number of Board Members in SEBI increased and at least three of them made whole time members.
- Mechanisms of investigation and information strengthened to check malpractices.
- Penalties made more stringent.
- SEBI defines offences such as insider trading, fraudulent, and manipulative trade practices.
- Securities Appellant Tribunal made a three-member body headed by a Supreme Court Judge.

Retail trading in Government securities was launched to enable an ordinary citizen to trade in Government securities and deepen the market.

FIIs have been permitted to trade in all exchange traded derivative products as approved by SEBI subject to trading limits of trading members and their clients in the derivatives market as prescribed by SEBI.

Mutual funds are now allowed to invest in rated securities in countries with fully convertible currencies, within the existing limits, with highest rating (foreign currency credit rating) by accredited/registered credit rating agencies.

Eligibility norms to access the primary market have been tightened.

All the listed Scripps have been put on the list for compulsory settlement of trades in dematerialised form for all investors.

An Investor Grievance Redressal Cell has been created to coordinate efforts of regulatory agencies to redress investor complaints. The Clearing Corporation of India Ltd. has commenced operations in clearing and settlement of transactions in Government securities.

The Budget for 2003-04 proposes that dividends be tax free in the hands of shareholders. It is also proposed to exempt equity-oriented schemes from the purview of the tax for one year. In order to give a further fillip to the capital markets, it is proposed to exempt all listed equities that are acquired on or after March 1, 2003 and sold after a lapse of a year or more from capital gains tax. This proposal is aimed at facilitating investment in equities.

COMPANY AFFAIRS

Modernisation of Regional offices of Registrar of Companies was taken up.

Serious Frauds Investigation Office was set up as a multi disciplinary unit capable of investigating corporate white-collar crime professionally.

Certification of correctness of annual audit accounts by CEOs and CFOs of all listed companies was introduced.

A high level committee was appointed under Shri Naresh Chandra for strengthening regulatory and penal provisions for the corporate sector and liberalising corporate laws for greater freedom and reducing compliance costs.

The Companies Act was amended to incorporate international best practices and to set up a National Companies Law Tribunal.

The Competition Bill was passed by Parliament.

Revenue

Tax administration reform and further rationalisation of tax rates have been the underpinning themes of the initiatives taken during the last five years. Two Task Forces – one on direct taxes and the other on indirect taxes – headed by Dr. Vijay Kelkar, Advisor to the Finance Minister were set up which suggested a roadmap for further reforms in the taxation system and tax administration in the country and to demystify the process of Budget making and to make it transparent in order to facilitate an informed discussion.

Following the recommendations of the Task Force the Government has initiated a whole basket of reforms. Some of these include outsourcing of non-core activities of the income tax department, namely allotment of Permanent Account Number (PAN) and creation of data-bank of high value transactions through tax information network, reducing the compliance cost of the tax payer by halving the number of forms used presently in furnishing of applications, returns etc. for individual tax payers, the Government has introduced a one-page return form which will come into operation from April 1 onwards. A decision has also been taken to abolish tax clearance certificate currently needed by a person leaving India or any person submitting a tender, for a Government contract.

A scheme of “Bulk filing” of returns by employers on behalf of employees has been introduced so that the salaried taxpayers need not have any interface with the department at the time of filing of returns or issue of refunds.

The tax rates in India have been rationalised. At 36.75 per cent for corporate and 31.5 per cent (maximum marginal rate), these are now favourably comparable with the corresponding rates in most of the other advanced countries of the world. The number of basic ad valorem central excise duty rates has been brought down from 11 in 1998 to two now – 16 per cent CENVAT (Central Value Added Tax) for most items and 16 per cent Special Excise Duty (SED).

Discretionary powers of the officers in the matter of penalties and interests have been reduced. A settlement commission for resolution of disputes has been set up. The number of major ad valorem rates has been reduced from 7 in 1998 to 4 at present. The dispersal of rates has also been reduced. The peak rate has been brought down from 150 per cent in 1991 to 30 per cent during the current year and is further proposed to be reduced to 25 per cent, excluding agriculture and dairy products.

Obtaining Permanent Account Number (PAN) and quoting the same on all documents pertaining to specified high-value transactions has been made mandatory. Filing of returns by all companies has been made mandatory.

With a view to enabling the Government realise reasonable dues in time, a unique scheme called SAMADHAN was introduced, which applies to both direct and indirect taxes. Similarly, the Government launched the ‘SAMMAN SCHEME’ to encourage tax compliance among taxpayers.

Infrastructure status was given to the housing sector under Section 80 IA of the IT Act. The corporate, private and cooperative sectors were encouraged to take a lead role in terms of land assembly, construction of houses and development of amenities within the project. An Infrastructure Equity Fund (I.E.F.) of Rs.1,000 crore is being set up to help in providing equity investment for infrastructure projects.

A modern, transparent and uniform system of taxation – Value Added Tax – is proposed to be introduced from April 1, 2003 replacing the plethora of State taxes. This will also lead to the phasing out of the Central Sales Tax giving a boost to industry and making our exports more competitive.

Foreign Tax Division

Double Taxation Avoidance Agreement Treaties have been concluded with a number of countries to check double taxation, tax frauds and laundering of money into undesired activities.

Foreign Investment

New opportunities for growth have attracted increased flow of foreign direct investment, which has increased from US $ 2.46 billion in 1998-99 to US $ 3.9 billion in 2001-2002. Foreign Direct Investment (FDI) was US $ 1.98 billion for April-October, 2002.

The Government, in an innovative step, tapped the investment potential of NRIs by announcing the Resurgent India Bonds, which mopped up US $ 4 billion.

The limit of US$ 20,000 for remittance under the Employees Stock Option Programme Scheme has been removed. General permission has been granted to retain ADR/GDR proceeds abroad for future forex requirements. Individuals have been allowed to invest abroad in companies. The overall cap for investment abroad by the mutual funds has been raised to US $ 1 billion.

Foreign Direct Investment (FDI) in NBFCs has been permitted up to 100 per cent subject to minimum capitalisation norms.

Indian companies making overseas investments by market purchases of foreign exchange under automatic route may now do so without prior approval of RBI up to 50 per cent of their net worth; up from the previous limit of 25 per cent.

Units in the Special Economic Zones in the country have been permitted to make overseas investment up to any amount without restriction of the ceiling of US$ 100 million under the automatic route, subject to funding from Exchange Earners Foreign Currency account balances.

Investment overseas has been allowed to be funded up to 100 per cent of the proceeds of American Depository Receipts/Global Depository Receipts.

Block allocation of foreign exchange from RBI is allowed to Indian companies who have exhausted the limit under the automatic route for investment overseas.

General permission has been granted to the Indian companies to issue ADRs/GDRs without the prior approval of RBI subject to post-issue reporting within 30 days of completion of the ADR/GDR issue.

Indian companies have been permitted to list in foreign stock exchanges, by sponsoring ADR/GDR issues with overseas depository against shares held by its shareholders subject to prescribed conditions.

All companies, which have made an ADR/GDR issue earlier and listed abroad have been permitted the facility of overseas business acquisition through ADR/GDR stock swap under the automatic route subject to certain conditions.

Banking

Foreign Direct Investment in the banking companies presently capped at 49 per cent from all sources under the automatic route, is being raised to 74 per cent to facilitate setting up of subsidiaries by foreign banks as well as for inviting involvement in private banks.

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Bill has been passed to enable banks and Financial Institutions to realise long-term assets, manage problems of liquidity and improve recovery.

Voluntary Retirement Scheme was introduced in, 26 out of 27 public sector banks and above one lakh employees opted for the scheme. The implementation of this scheme has helped the banks in right-sizing their workforce and has enabled them to induct new workforce with adequate knowledge of new skills.

Full functional autonomy and operational flexibility has been provided to Small Industries and Industrial Bank of India (SIDBI) to enable it to discharge its role as apex organisation for promotion, development and financing of SSI sector.

Comprehensive Educational Loan Scheme has been introduced to ensure that no deserving student in the country is deprived of higher education for want of finances.

A Task Force has been set up as a policy initiative to resolve credit related issues and problems of North-East Region have been taken up. An Infrastructure Equity Fund of Rs.100 crore has been set up to help in providing equity investment for infrastructure project.

Rural Credit

NABARD Act, 1981 was amended to impart flexibility to the shareholding pattern, broad based compositions of the Board enlarge credit and non-credit rolls and functions and to empower to its board to appropriate surplus profits. National Housing Bank Act, 1987 amended to provide for new concepts of mortgage debt securitisation and foreclosure of housing loans. A Micro Finance Development Fund was set up with the contribution of Rs.40 crore each from RBI and NABARD.

Flow of institutional credit to agriculture has gone up from Rs.31,956 crore in 1997-98 to Rs.64,000 crore in 2001-02. It is expected to reach Rs.82,073 crore in 2002-03.

The major schemes include Kisan Credit Cards, flow of funds to micro enterprises and self help groups and enhanced allocation for rural Infrastructure Development Fund.

In order to pass on benefits of lower interest rates to farmers, the State Bank of India has announced an interest rate band of 2 per cent above and below prime lending rates for secured advances to agriculture and SSI sector. This will significantly reduce the cost of credit to farmers.

Cooperative Sector

Some select prudential norms have been introduced for commercial banks, which are being extended to the cooperative banks in phased manner with emphasis on an improving their capital base.

Policies were framed to contain systemic risk from the cooperative banking sector.

Scheme for revitalisation of cooperative banks through recapitalisation (financial support from Central and State Governments) has been initiated.

Revitalisation Scheme for Cooperative Credit Structure: Recapitalisation will be shared between Centre and the States in the ratio of 60:40 and 90:10 in the case of North-Eastern States and Jammu & Kashmir. The revitalisation scheme involves financing of Rs.14132 crore over 10 year period. The problem of dual control of RBI and the State governments in the cooperative banking sector is also being addressed to.

Insurance

The insurance sector has been opened up to the private sector, with a view to making available long-term funds for infrastructure, introducing new and innovative products and effecting improvement in quality of service to customers.

It has been decided to promote a separate organisation for implementing agriculture insurance. The capital participation in the new company will be from GIC, four public sector general insurance companies and NABARD. The new organisation will cover other allied/rural risks as well.

The General Insurance Business (Nationalisation) Amendment Act, 2002 passed de-linking the four general insurance companies from the General Insurance Corporation of India Ltd.

In order to provide easy access to good health services and to offer health protection, the public sector general insurance companies have been encouraged to design a community based universal health insurance scheme during 2003-04. Under this scheme an individual can get reimbursement of medical expenses upto Rs.30,000 towards hospitalisation, a cover for death due to accident and compensation for loss of earnings by paying a premium of Rs.365 per year. For families living below the poverty line, the Government has decided to contribute Rs.100 per year towards their annual premium.

A special pension policy for senior citizens is also being launched by the Life Insurance Corporation of India (LIC) Guaranteeing an annual return of 9 per cent in the form of a monthly pension scheme. A restructured pension scheme for new entrants to Government service offering a basket of pension choices has also been finalised.

FOOD PROCESSING INDUSTRIES

The Ministry of Food Processing Industries is concerned with the formulation and implementation of policies and plans for the food processing industries within the overall national priorities and objectives. Food Processing adds value, enhances shelf-life and encourages crop diversification. Food Processing industries create large employment per unit of investment. Food Processing, coupled with marketing has thus the potential of solving the basic problems of agricultural surpluses, wastages, rural jobs and better prices to the growers.

The Food Processing industries sector has been deregulated and no industrial licence is required except in case of alcoholic beverages and for items reserved for small-scale industries. Automatic approval for foreign investment upto 100 per cent (except a few cases) has been allowed. Fully export oriented units are permitted to import raw materials and capital goods free of duty. The Food Processing sector has been included for priority lending. The Ministry has entered into a Memorandum of Understanding (MoU) with Export-Import Bank and ICICI with a view to help the sector to access more funds.

In line with the policy to promote food processing industries, several schemes of financial assistance have been launched covering the entire spectrum of food processing activities, such as post-harvest infrastructure including cold chain, food quality and safety, packaging, research and development and promotion of processed food including training of personnel etc. In the last five years, around Rs. 250 crore has been provided as assistance to several food processing projects. This seed money of Rs. 250 crore has generated projects worth Rs. 2,700 crore.

As a result of the policy of liberalisation, 2,272 Industrial Entrepreneurial Memoranda (IEM) for setting up food processing industries have been filed during April 1998-November 2002 period with an investment of Rs. 1,584 crore and employment to about 4.89 lakh persons. During the same period, 196 approvals for setting up of Food Processing industries with foreign investment of Rs. 1596 crore have been granted.

The public sector undertaking Modern Food Industries (India) Limited has been successfully disinvested. The revival package of North-Eastern Regional Agricultural Marketing Corporation Limited (NERAMAC) has been implemented. The administrative control of NERAMAC now vests with the department of Development of North-Eastern Region.

Besides sanctioning 38 Food Parks, a sum of Rs. 30.86 crore have been provided as assistance to food processing projects in the North-Eastern Region. Under the Technology Mission for Integrated Development of Horticulture in the North-East including Sikkim, 11 food processing projects have been given assistance to the tune of Rs. 5.77 crore. During the 9^th Plan period, 284 food processing units have been assisted. Seventeen food-testing laboratories have also been given assistance. Under the scheme for backward linkage, which provides for purchase of primary produce from farmers at pre-determined prices by the processing units, over 33,000 farmers have been benefited. The Paddy Processing Research Centre (PPRC), Thanjavur has been upgraded for all grain/cereal processing, including pulses and oilseeds.

HEALTH

National Health Policy

The National Health Policy has been approved by the Government. Health sector expenditure is proposed to be increased to 6 per cent of GDP with 2 per cent of GDP as Public Health Investment by the year 2010 as against current 0.9 per cent. State governments have been asked to increase their commitment to the health sector. Primary health sector is to get 55 per cent of public health investment. The Policy envisages to make medical education need based, skill-oriented and research to get top priority.

National Blood Policy

National Blood Policy has been finalised. It stresses the need to promote safe and adequate quality of blood, blood components, blood products and emphasises on voluntary blood donation and blood bank network. Ten state-of-the-art blood banks are being set up in the States of Uttaranchal, Bihar, UP, MP, Rajasthan, Jharkhand, J&K, Assam, Chattisgarh.

Guidelines for Bio-Medical Research

Stringent control on conducting of clinical trials have been imposed. The guidelines have laid down that medical and related research using human beings as subjects, must ensure the purpose of the research, the conditions under which the research are conducted and evaluation of the research at all stage.

Code of Ethics for Doctors

Regulations of Professional Conduct, Ethics, and Etiquette for Allopathic Doctors have been approved after a gap of 30 years. It makes working in Primary Health Centre’s maintenance of clinical records for 3 years and sharing the same with the patient/their authorised agent, compulsory. It prescribes deregistration of doctors found guilty of female feticide.

DISEASE CONTROL PROGRAMMES

AIDS

National AIDS Prevention and Control Policy and National Blood Policy were approved to adopt a more holistic approach towards prevention and control of HIV/AIDS, looking at it as a developmental problem and not as a mere public health issue.

Yearly Sentinel Surveillance to track geographical progression of HIV/AIDS epidemic as well as to assess the burden of the disease in the country is being conducted since 1999.

A policy decision has been taken to dispense with the requirement of mandatory HIV testing of foreigners including foreign students.

Family Health Awareness Campaign was conducted in the entire country to generate awareness in rural areas and urban slums. Over 680 targeted intervention projects have been implemented through NGOs focusing on high-risk population who were provided education and counselling services, free treatment etc.

Modernisation of blood banks in majority of the districts of the country has been taken up to ensure availability of safe blood.

Leprosy

The Prevalence Rate of Leprosy at National Level has been brought down from 5.25 per 10,000 population in March, 1998, to 3.16 per 10,000 in January, 2003. Fourteen States, viz. Arunachal Pradesh, Assam, Haryana, Himachal Pradesh, J&K, Kerala, Manipur, Meghalaya, Mizoram, Nagaland, Rajasthan, Sikkim, Tripura and Punjab have achieved leprosy elimination status.

Five more States – Pondicherry, Daman & Diu, A&N Islands, Madhya Pradesh and Gujarat – are close to achieve elimination.

Modified Leprosy Elimination Campaigns(MLECs) held have helped in detection of new cases apart from creating public awareness, training of all General Health Care Staff and involving the community in the programme. Disability Grade II among newly detected cases has been reduced from 3.74per cent in March, 1998, to 2.1 per cent by January, 2003.

Tuberculosis

The coverage under Revised National Tuberculosis Control Programme (RNTCP) has increased by more than 30 times from about 200 lakh in 1998 to around 6,100 lakh, till date.

In 2000 and 2001, India accounted for over half of the global increase in DOTS coverage. More than 60 per cent of the country has been covered under DOTS and the whole country is envisaged to be covered by 2005.

Nearly 1.6 million cases have been placed on treatment saving more than 2.5 lakh additional lives since 1998.

Malaria

The reported number of malaria cases has been reduced from more than 3 million cases in 1996 to 2.1 million in 2001 and 1.7 million (provisional) in 2002.

Blindness

Successful completion of World Bank assisted Cataract Blindness Control Project (1994-2002) with performance of more than 1.5 crore cataract operations against a target of 1.1 crore operations. World Bank has rated the outcome of the project as highly satisfactory. Five time increase in Intra Ocular Lens implantation in cataract surgery from 12 per cent in 1996-97 to more than 65 per cent in 2002-03.

More than 330 new eye care facilities developed and equipped in Government and Voluntary sector during last 5 years. Nearly one thousand eye surgeons trained in modern technology to implant Intra Ocular Lens during cataract surgery.

Cancer

During the period 1997-98 to 2002-03, 8 Regional Cancer Centres (RCCs) were recognised taking the total to 20 RCCs in the country.

Under the scheme of financial assistance for Cobalt Units, 22 private institutions and 14 Government institutions were given assistance to the tune of Rs.19.27 crore and 17.91 crore, respectively, during the 1X Plan period.

National Surveillance Programme

The Ministry launched in 1997-98, the National Surveillance Programme of Communicable Diseases as a pilot project in 5 districts initially and expanded to 101 districts in all States by 2002-03, with the purpose of strengthening surveillance activities. The programme achieved capacity building at district, regional and State level by enhancing laboratory facilities and manpower development. As a result, the promotion and protection of public health and prevention of control of diseases has been largely achieved.

During the X Plan, an Integrated Disease Surveillance Programme has been formulated to cover all districts in the country. This project with the external assistance is expected to avert sufficient disease outbreaks and epidemics and reduce human suffering and improve the efficiency of all existing programmes.

Mental Health Programme

To mitigate the hardship of mentally ill persons, the District Mental Health Programme was launched in 1996-97 in 4 districts initially and expanded to 27 districts in 22 States/UTs by 2002-03, with a community based approach to the problem.

DRUGS CONTROL AND FOOD ADMINISTRATION

Central Drugs Standard Control Organisation

Good Manufacturing Practices(GMPs) under Schedule M have been amended to make them at par with international standards.

System of registration of foreign manufacturers and the drugs imported into the country has been introduced. Provisions relating to manufacture, sale and approval of new drugs have been streamlines. Computerisation of all Central and State Drug Control organisations/drug testing laboratories and networking has been taken up.

Medical Education, Research, Hospital Services etc.

The Medical Council of India (Professional Conduct, Etiquette and Ethics) Regulations, 2002 were finalised and published in the Gazette of India on April 6, 2002. These Regulations specify the acts of omission and commission on the part of a medical practitioner, which shall constitute professional misconduct.

Amendment to the Indian Medical Council Act was made in 2001 and Regulations were framed thereunder empowering the Medical Council of India to issue Eligibility Certificate to students for admission to an undergraduate medical course abroad and also to conduct a Screening Test for Indian nationals possessing foreign medical qualifications for their registration to practice medicine in India.

A Post-Graduate Institute of Medical Education & Research is being set-up at Dr. RML Hospital, New Delhi with an estimated cost of Rs.42.96 crore. The Institute will provide Post-Graduate and Post Doctoral educational facilities to the MBBS doctors in 15 and 20 super-specialities, respectively, in addition to better medical facilities to the needy patients.

An agreement has been signed between ICMR and International AIDS Vaccine Intiative (IAVI), USA for HIV vaccine development based on Modified Vaccinia Ankara.

ICMR has also achieved an important breakthrough in the management of tuberculosis of spine without paraplegia.

Pasteur Institute of India, Conoor has, for the first time in India, in 2001, developed in-house and released Vero Cell Derived Purified Rabies Vaccine for human use at an affordable price to common man.

Evening OPD has started functioning from 9^th January, 2003, in 4 major Central Government Hospitals in Delhi, viz. All India Institute of Medical Sciences, Dr. RML Hospital, Lady Hardinge Medical College & its Associated Hospitals and Safdarjung Hospital. This facility has also been provided in PGIMEDR, Chandigarh. The evening OPD is being run in the Department of Medicine, Surgery, Paediatrics, Obstetrics & Gynaecology, Psychiatry, Eye and ENT, apart from focusing on early detection and screening for all types of Cancer including cancer of Cervix, Breast, Head and Neck and Oral Cavity. This is also supported by diagnostic services like Laboratory, Radio-diagnosis, Minor OT, Dressing Room and Pharmacy services.

The Vardhman Mahavir Medical College, affiliated to the Guru Gobind Singh Indraprastha University, Delhi has been established at Safdarjung Hospital, New Delhi with a capacity of 100 MBBS seats.

The North Eastern Indira Gandhi Regional Institute of Health & Medical Services, Shillong being set up as a 500-bedded super-speciality hospital and a postgraduate medical institute on the lines of AIIMS, New Delhi and PGIMER, Chandigarh was declared as a National Institute on January 22, 2002, by the Prime Minister when he visited Shillong. The project is to be made fully operational by May, 2005.

Central Government Health Scheme (CGHS) was extended to three new cities, viz. Chandigarh, Bhopal and Shillong during 2002.

NEW INITIATIVES IN BUDGET

Health Insurance Scheme

The proposal pertained to designing a community-based universal health insurance scheme during 2003-04. Under this scheme, a premium equivalent to Rs.1 per day (or Rs.365 per year) for an individual, Rs.1.50 per day for a family of five, and Rs.2 per day for a family of seven, will entitle eligibility to get reimbursement of medical expenses upto Rs.30,000 towards hospitalisation, a cover for death due to accident for Rs.25,000 and compensation due to loss of earning at the rate of Rs.50 per day upto a maximum of 15 days. To make the scheme affordable to BPL families, the Government has decided to contribute of Rs.100 per year towards their annual premium.

In order to encourage private hospitals to either establish new, or to expand existing medical facilities, it is proposed to extend the benefit of Section 10 (23 G) of IT Act to such financial institutions as provide long-term capital to provide hospitals with 100 beds or more.

INDIAN SYSTEMS OF MEDICINE AND HOMOEOPATHY

Policy initiatives

For the first time, a separate National Policy on Indian System of Medicine & Homeopathy – 2002 was formulated. The basic objections of the Policy are to promote good health, expand the outreach and to ensure affordable ISM&H services to our people, as also to integrate ISM&H in health care delivery systems in the national programmes.

Good Manufacturing Practices(GMP) were made effective from June 23, 2002, to ensure improvement of quality in manufacture of drugs of the Indian System of Medicine

In September, 2002, guidelines for Good Laboratory Practices were notified to aim at standardising the laboratories meant to test ISM drugs.

The Indian Medicines Central Council (Amendment) Act, 2002 and the Homeopathy Central Council (Amendment) Act, 2002 were passed to ensure curtailing the mushrooming growth of sub-standard institutions.

To regulate and standardise the education and practice of Yoga & Naturopathy, suitable amendments were carried out in the Memorandum of Associations/rules & regulations of the Central Council for Research in Yoga & Naturopathy (CCRYN).

Schemes and Programmes

A pilot scheme for supply of Home Remedies Kit, containing medicines of Ayurveda, Siddha, Unani and Homeopathy for 15 common ailments, to be supplied to rural population in selected districts of 21 States, has been implemented.

An Extra Mural Research Scheme was implemented to finance collaborative research in Indian Systems of Medicine & Homeopathy and other modern scientific institutes for scientific validation of priority ISM drugs and therapies.

The essential Drugs Lists for Ayurvedic, Unani and Homeopathic medicine were drawn and States advises to make available these drugs in their hospitals and dispensaries.

Schedule ‘K’ of Drugs and Cosmetic Rules was amended to facilitate availability of 49 Homeopathic drugs in all licensed pharmacies (Chemist’s shops).

Ninteen new schemes aimed at developing and promotion ISM&H have been approved for implementation during 10^th Plan.

Development of Medicinal Plant Sector

A National Medicinal Plants Board was set-up and operationalised to coordinate all aspects related to the development of medicinal plant sector.

Thirty-two medicinal plants, which are in great demand both in domestic and international market, were identified for cultivation, conservation and development.

Cultivation practices of 32 commercially important medicinal plants were published by the National Medicinal Plants Board in May, 2002.

Research

Central Council for Research in Ayurveda and Siddha (CCRAS) have patented three drugs and 15 process patents and Central Council for Research in Unani Medicine (CCRUM) have patented eight drugs for Malaria, Epilepsy, Contraception, Rheumatoid Arthritis, Leucoderma, Eczema, Filaria, Bronchial asthma, Sinusitis, Infective hepatitis and cancer.

Efforts for Globalisation of ISM

Concentrated efforts have been made to develop and propagate ISM systems, particularly, Ayurveda in foreign countries. This has resulted in collaboration in education and research and better realisation of strengths of Ayurveda.

Ayurveda was recognised as an official system of Health Care in Hungary, Mauritius and South Africa.

South Africa is keen to start Ayurveda teaching in University of Natal.

Integration of ISM&H in Health Care Delivery System

With a view to making optimum use of vast infrastructure available in ISM&H Sector, efforts were made to integrate ISM&H into over all health care delivery system. A pilot project for Ayurveda, Siddha interventions in the conditions covered under RCH in eight areas was started to be implemented in two districts each of Kerala, Karnataka, Tamil Nadu, and Rajasthan.

A kit containing five Ayurveda drugs was planned to be distributed through the network of PHCs by ANMs in the State of U.P., Uttaranchal, Madhya Pradesh, Chattisgarh, Rajasthan, Himachal Pradesh, Kerala, Karnataka.

Five Unani medicines were also incorporated for distribution in Delhi, Aligarh, Hyderbad and Lucknow.

Other achievements

A joint collaborative project of Council of Scientific and Industrial Research (CSIR) and Department of ISM&H for preparing Traditional Knowledge Digital Library (TKDL) was envisages and Launched on March 26, 2002, to prevent patent claims on medicinal uses of plant described single or in combination with other ingredients described in Ayurvedic texts. TKDL for Unani, Siddha and Yoga were also initiates.

Setting up and restructuring of National Institutes

Project for the establishment of a National Institute of Siddha was finalised and construction work started at Chennai in collaboration with the government of Tamil Nadu.

A state-of-the-art National Ayurvedic Hospital initially for 100 beds with plans to expand gradually, was conceived for construction at Delhi.

A new Yoga and meditation centre at Morarji Desai National Institute of Yoga (MDNIY), New Delhi to emerge as a major landmark for yoga and meditation activities, was planned and the construction started.

The construction of the first phase of National Institute of Unani Medicine (NIUM) Bangalore for post-graduate teaching and research in Unani Medicine was started and is to be commissioned shortly.

Up-gradation of Apex Pharmacopoeia Laboratory of Indian Medicine (PLIM) and Homeopathy Pharmacopoeia Laboratory (HPL), Ghaziabad, was initiated and the construction work for its permanent campus was started.

HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

The Ministry of Heavy Industries and Public Enterprises is responsible for ensuring the development and growth of capital goods and engineering industries, including auto industry. Besides, it also looks after 49 PSUs under its administrative control and a joint sector company, Maruti Udyog Ltd. (MUL) which produces automobiles. The industries covered by this department provide goods and services for almost all sectors of the economy, including those for infrastructure, such as power, rail and road transport. It looks after the machine building industry and caters to the requirements of equipment for basic industries such as steel, non-ferrous metals, fertilisers, refineries, petrochemicals, shipping, textiles and host of industrial machineries including paper, cement, sugar etc. The Ministry is also responsible for the development of a wide range of intermediate engineering products like castings, forgings, diesel engines, industrial gears and gear boxes.

Auto Policy

For the first time, an auto policy was announced in March, 2002 with a vision to establish a globally competitive automotive industry in India and to double its contribution to the economy by the year 2010. It aims to promote integrated, phased, enduring and self-sustained growth of the India automotive industry. Its objectives are: exalt the sector as a lever of industrial growth and employment and to achieve a high degree of value addition in the country; promote a globally competitive automotive industry and emerge as a global source for auto components; establish an international hub for manufacturing small, affordable passenger cars and a key centre for manufacturing tractors and two-wheelers in the world; ensure a balanced transition to open trade at a minimal risk to the Indian economy and local industry; conduce incessant modernisation of the industry and facilitate indigenous design, research and development; steer India’s software industry into automotive technology; assist development of vehicles propelled by alternate energy sources; and development of domestic safety and environmental standards at par with international standards.

Performance of PSEs

As per provisional results, 49 PSEs under the Department of Heavy Industry achieved a production of Rs. 11,670 crore during 2001-2002. Thirteen PSEs have made profits.

Revival/Restructuring of PSEs

Revival plans sanctioned by BIFR in case of 12 PSEs are under implementation. These plans involve fresh infusion of funds by the Government to the extent of Rs. 654 crore and financial restructuring to the tune of Rs. 2,106 crore.

Apart from BIFR cases, the Government on its own has approved financial/business restructuring in case of 7 other PSEs, involving fresh infusion of Rs. 531 crore and financial restructuring of Rs. 1,443 crore.

REVIVAL/RESTRUCTURING PLANS APPROVED

HMT Ltd.

A turnaround plan was approved by Government in July, 2000 for HMT having plants located in nine States. Major elements of financial/organisational restructuring include:

- Fresh infusion of funds by Government of India to the extent of Rs. 295 crore;
- Formation of subsidiaries for machine tools and watch business groups;
- Closing of five unviable units and offering VRS to all employees; and
- Conversion of Rs. 39.70 crore Government loan into equity.

Disinvestment/JV Formation

With the establishment of Department of Disinvestment, the work of Disinvestment of Central PSUs is now being handled by that Department. Cases of 16 PSUs/subsidiaries, namely Jessop, NEPA, HCL, ILK, HSL, BHPV, SSL, BSCL, BCL, TSP, TCIL, EPI, NIL, BOGL, HPC and SIL, have been referred to the Disinvestment Ministry.

Cases of subsidiary PSUs, which have not been sent to Disinvestment Ministry are being dealt in DHI. These PSUs are Hooghly, BWEL, BBJ, R&C, TSL, B&R, HMT(B), HMT(I), HMT Watches, HMT(MT), HMT (Chinar Watches), REIL & HNL.

A Joint Venture for belting division of Andrew Yule & Company and LJMC, and sale of Yerraguntla Unit of CCI has been completed.

Manpower Rationalisation

Manpower rationalisation is a major item in any restructuring exercise for improving the viability of the enterprises. During the last 10 years (from 1992-93 to 2001-02) about 70,000 employees have availed of the facility of VRS, for which the Government has provided an amount of about Rs. 1,600 crore.

Recent Initiatives

The Department is alive to the problems faced by PSUs of DHI and has initiated various pro-active measures to strengthen the functioning of PSUs and capital good industry in general. The Department has constituted an inter-ministerial committee to co-ordinate matters related to development and growth of Capital Goods Industry. A Task Force on export of capital goods has also been set up in the same context. Similarly, inter-ministerial committees have also been set up in the case of auto Sector and the wagon Industry.

Hindustan Newsprint Ltd

The foundation stone was laid on July 14, 2000 for de-inking plant in Hindustan Newsprint Ltd., Kottayam, Kerala at a cost of Rs. 52.20 crore. This would improve the financial health of the company and the dependence on forest resources would come down considerably. The project was commissioned in December, 2002.

Bharat Heavy Electricals Ltd (BHEL)

The Bharat Heavy Electricals Limited (BHEL), a ‘Navratna’ company under DHI, performed exceptionally well during the year 2002-03 and achieved an all time high turnover of Rs. 7,510 crore (provisional) with the profit before tax of Rs. 760 crore. The company also achieved the highest ever inflow of orders worth Rs.11,248 crore, in a single year.

BHEL, for the first time in India, has developed a state-of-the-art package for assessing the remaining life for power transformers and suggesting life-enhancing measures for them.

Thirty-two thermal power stations in the country equipped with generating equipment, built by Bharat Heavy Electricals Limited (BHEL) have been awarded Government of India’s Meritorious Productivity Awards for excellent performance.

The prestigious ISO-14001 Certification from Det Norske Veritas, Netherlands, has been awarded to BHEL’s industry sector headquarters in New Delhi, a first for India.

BHEL has achieved a major landmark with the successful commissioning of the first ever 124 MW ISO rated Gas Turbine based power plant for Bangladesh Power Development Board in Baghabari, Bangladesh on a turn-key basis.

Maruti Udyog Limited

The Government has signed a revised Joint Venture agreement with Suzuki Motor Corporation, Japan, allowing SMC to raise its equity from 50 to 54.2 per cent, after paying the price for rights issue, as well as the control premium amounting to Rs. 1,000 crore.

PUBLIC ENTERPRISES

The Department of Public Enterprises acts as a nodal agency for all PSEs in terms of policy formulation relating to PSEs, issuing guidelines, finalisation of performance MoUs with the Government and its evaluation. The Department strives for professionalisation of PSE boards, providing operational and financial autonomy, making PSEs accountable, infusing transparency in management, achieving managerial excellence and increasing productivity.

Purchase Preference Policy

The purchase preference policy in public sector undertaking and Government departments was extended for two more years up to March 31, 2004 with some modifications. The 10 per cent purchase preference will be available for products and services till March 31, 2004 for tenders/NIT of Rs.5 crore and more instead of Rs.1 crore. Purchase preference will be available to only those privatised CPSEs where specific Government approval has been accorded for a specific period from the date of disinvestment. The respective ministries/departments/autonomous bodies/CPSEs will be responsible for implementing the purchase preference policy. The provisions relating to purchase preference should be specified in the notice inviting tender (NIT) for Rs.5 crore and above. For any deviation, inclusion of the purchase clause from the NIT, it will be obligatory for the concerned Ministries / Department /autonomous bodies to obtain prior exemption from the Cabinet in consultation with the Department of Public Enterprises. More than fifty PSEs have availed the benefits of the policy.

Revised Voluntary Retirement Scheme

The Government had announced a Voluntary Retirement Scheme in 1998 to make it more efficacious, having regard to both the interests of the employees and the need to enable Public Sector Enterprises to rationalise their surplus manpower. The revised guidelines on VRS were issued in May, 2000. Employees of industrial cooperatives, with Government equity participation, and who are not members of the cooperative, will also be covered under the VRS. VRS will be applicable to the permanent employees, badli workers, work charged established and temporary workers, but not to the casual workers. There will be no recruitment against vacancies arising due to VRS.

Financially sound enterprises that can sustain a scheme of VRS on their own surplus resources, may revise and implement variants of the existing VRS. Enterprises that made marginal profits or loss-making enterprises may adopt the revised scheme of VRS based on the Gujarat model. For the sick enterprises also, VRS at Gujarat model or DHI model (45 days salary for each completed year of service or salary adjustment to remaining months of service, whichever is less) are available.

Voluntary Retirement Scheme was further liberalised on November, 2001. It has now been decided that the employees of Public Enterprises will get VR compensation in accordance with the existing scheme but increased by 100 per cent or 50 per cent, as the case may be, for those employees who are with 1987 or 1992 pay scales, respectively.

Counselling, Retraining and Redeployment of VR optees

The Department has started the scheme for counselling, retraining and redeployment of voluntarily retired employees of Central Public Enterprises in a modest way. The scheme aims at reorienting the VR optees through short term training programmes for purpose of rehabilitating them on self-employment activities. The scheme started operating during 2001-2002 with a modest fund allocation of Rs.8 crore, a target of 8,000 was fixed (to be covered under this programme). The target was achieved and covered 8,500 VR optees. For the year 2002-03, a sum of Rs.10 crore has been allocated as plan outlay. This target has also been achieved.

Training is imparted by reputed training institutions in the country, and cover almost the entire geographical territory of the country, particularly those where a large number of VRS optees are likely.

Sixth Round of Wage Negotiation

In pursuance of the representation received on the condition of 10-year periodicity for wage revision in the Central PSUs, the Government has reviewed the matter. It has now been decided, in partial modification of the guidelines on the subject, that the unionised employees governed by IDA pattern, would have the option to opt for either:

- A ten year periodicity of pay revision with 100 per cent neutralisation of DA as set out in the guidelines issued in January, 1999.
- A five year periodicity on the basis of graded neutralisation as did exist previously i.e. from January’92 to December’96.
- The revised guidelines were issued on July 26, 2000.

Professionalisation of Board of Directors

Professionalisation of Board of Public Enterprises is one of the thrust areas of the public sector reforms. Non-official directors can play an important role in formulation of a company’s strategy and in ensure that the Board sets its sights high enough.

The Department has issued guidelines on the composition of board of directors in order to make them professional. The guidelines provide that professionals from outside should be inducted on the Boards of PSUs in the form of part time non-official directors and the number of such directors should be not less than one-third of the actual strength of the Board. In the case of listed companies headed by executive Chairman, the number of non-official directors should be at least 50 per cent of the total. The guidelines also envisage that the number of Government directors on the Board should be not more than two. Apart from this, there should be some functional directors on each Board.

The appointment of non-official directors in ‘Navratna’ and ‘Miniratna’ PSEs is made from the panels prepared by a committee. There are nine ‘Navratnas’ and 42 ‘Miniratnas’. The search committee has selected non-official directors for all the ‘Navratna’ PSEs and appointments have also been made in all of them. In the case of Miniratna PSEs, appointments, have been made in 24 cases. Search Committee has made selections in respect of the remaining Miniratnas and panels are under process.

For drawing up names of eminent persons for selection as part time non-official directors, DPE has built up a databank of professionals and experts drawn from various sources.

Memorandum of Understanding (MoU)

With a view to giving greater autonomy to the Public Sector Enterprises (PSEs) and at the same time to make them accountable for achievement of their specified objectives, MoUs are being signed with PSEs. For the year 2002-03, MoUs have been finalised with 101 PSEs. Fifty PSEs were rated as excellent in overall performance.

HOME AFFAIRS

War against Insurgency

The internal security situation in India continued to be influenced by ‘proxy war’ unleashed by our western neighbour Pakistan in Jammu & Kashmir, insurgency related problems in areas in North-East when the new Government headed by Shri Atal Bihari Vajpayee took over the reigns in 1998. Though the BJP led coalition Government was handling the issues concerning the country for the first time, it rose to the occasion with determination to fight terrorism and insurgency, including left wing terrorism in States like Andhra Pradesh, Orissa, Bihar, and Madhya Pradesh.

The Government stressed upon a four-pronged strategy to deal with the situation. These included deepening of the democratic process; isolating the militants and foreign mercenaries; pro-active actions in the State of Jammu & Kashmir to neutralise the hostile designs of militants and mercenaries and galvanising development programmes. The steps continued even after the BJP-led Government came to power under the same leadership after a brief gap.

The Government’s strategy to counter terrorist and separatist violence in Jammu & Kashmir yielded good results. As a result, the peaceful free and fair elections could be held in the troubled State and a popular Government put in place. Countries including the Western World highly applauded the Government’s achievement despite provocative statements and comments made by Pakistan.

The North-East

The North-East with its plethora of ethnic groups, each asserting its identity obsessed with its history of isolation fostered by the British and the perception prevailing amongst the people that concessions could be extracted from the Union Government by taking to the gun continued to be a source of worry even after five decades of independence. But the new Government tried to address itself to the inherent problems of these States. The notable initiatives taken by the Government was to hold talks with the insurgent groups within the framework of the Constitution. This resulted in ceasefire agreements between the Government and the militant groups.

The ban on NSCN (IM) was lifted as a step to bring peace in the North-East region. Talks were held with the NSCN (IM) in New Delhi as a first step to break the deadlock.

Development of North-Eastern States received a boost with the creation of a separate Ministry – the Ministry for development of North-East Region. Prime Minister’s package of Rs.12,390 crore formed a part of this initiative for the development of the region.

The North-Eastern Council endorsed that Sikkim should be made the 8^th State of the Council. The Home Ministry has initiated steps to this effect.

The Government of India, State government of Assam and the Bodo Liberation Tigers continued talks resulting in a Memorandum of Settlement. The Memorandum of Settlement details the areas for the creation of an autonomous self-governing body to be known as Bodoland Territorial Council (BTC), within the State of Assam. This settlement has ushered in bright hopes for the Bodo people.

The Centre sanctioned the construction of the remaining 797 kms of border roads and 2,429 kms of border fencing on the Indo-Bangladesh border at a cost of Rs.1,334 crore and work is being completed on a war footing.

Prevention of Terrorism Act (POTA)

POTA, 2002 came into being to strengthen the fight against terrorism, while incorporating suitable provisions to prevent the kind of misuse, for which the earlier anti-terrorism law, TADA, was criticised. Passing the POTA Bill at a Joint-Session of Parliament clearly vindicated the Government’s determination to wipe out terrorism from the soil. This was the third time after independence that a Joint Session was convened of Parliament to enact the Bill. Thirty-two terrorist and subversive organisations were banned under POTA. These include, inter alia, Lashkar-e-Taiba, Jaish-e-Mohammand, Harkut-ul-Mujahideen, Hizbul-Mujahideen, ULFA, Student Islamic Movement of India (SIMI), Al Qaida and Dukhtaran-e-Millat.

The Government defeated several covert designs by the Pak-ISI. 161 ISI modules were busted. Major cases detected include the exposure of LeT network in India.

NSS

The NDA Government also took some notable steps to reform the National Security System. It set up a Group of Ministers under the Chairmanship of Home Minister, Shri L.K. Advani to review the National Security System in its entirety in the light of the recommendations of the Kargil Review Committee. Accordingly four task forces were set-up on intelligence apparatus, internal security, border management and defence. The GOM submitted its report to the Government in February, 2001. It recommended several important steps for reforming the National Security System and these recommendations are under implementation.

Creation of new States

The new Government at the Centre sympathetically considered the longstanding demands of some regions of Uttar Pradesh, Madhya Pradesh and Bihar for formation of separate States. As a result, three new States – Uttaranchal, Chhattisgarh and Jharkhand – were formed fulfilling the aspirations of the people of these regions.

Modernisation of para-military forces

The Government drafted a major Five-Year Plan for modernisation of Central Para-military Forces at a cost of Rs.3,740 crore to make these forces more mobile and operational in the field, keeping in view the new strategies adopted by terrorist and militant groups from time to time.

The Padmanabhaiah Committee set up for going into Police Reforms made about 240 recommendations. A majority of the recommendations were referred to the State governments for implementation. With the Police Reforms being accorded top priority, the Government enhanced the annual allocation to States to Rs.1,000 crore, a five-fold increase. Along with the matching contribution from the State governments, Rs.20,000 crore is proposed to be spent for police modernisation during this decade.

National Judicial Pay Commission

The BJP led Government during its first tenure in 1998-99 instituted for the first time a National Judicial Pay Commission with Justice K. Jagannath Shetty as its Chairman and the Commission gave its recommendations in a very brief period. Such a Commission was the first of its kind in Commonwealth countries as well.

Extradition Treaties

India signed extradition treaties and agreements for mutual legal assistance with a number of countries to facilitate deportation of criminals who generally take shelter in those countries after committing heinous crimes here. The Deputy Prime Minister and the Home Minister, Shri LK Advani visited these countries and held wide-ranging discussions before the agreements were arrived at. New Delhi also tried to create an international opinion to fight terrorism untidily and pressed for declaring such States, which sponsor, aid and abet terrorism, as rogue States.

Relations with neighbours

The Government’s effort has been to further improve relations with neighbours like Bangladesh, Myanmar, Nepal, Bhutan and also Pakistan. Several meetings at the level of Home Secretary were held with these countries (barring Pakistan) to discuss modalities and strengthen co-operation in combating terrorism, narco-trafficking and regulate border trade.

The Government further extended the ban on the LTTE.

Census 2003

Back home, the new millennium’s first Census was completed within a record time and the data was computerised for the first time in its history. An interactive website for generating maps on census themes was also launched. As per the latest figures, as on March 1, 2001, India’s population stood at 1,027,015,247 (Male 531,277,078 – Female 495,738,169).

National Identity Cards

The Government has launched a pilot project on the scheme of issuing multi-purpose national identity cards. The project is being taken up in a few selected sub-districts of various districts of 13 States and Union Territories including Jammu & Kashmir. A national register of identity will also be maintained at every level. After the pilot project is completed, the scheme will be implemented throughout the country.

Deportation of Foreign Nationals

The Union Government has asked the States to launch a special drive for detecting and deporting foreign nationals overstaying in India. This has been necessitated because of the large-scale illegal influx of Bangladeshi nationals, who manage to infiltrate into the country, despite checks and controls at the international border due to the long, open and porous nature of the border. The Government is also taking up the issue with the border countries at diplomatic level.

Kumbh Mela at Allahabad

The largest human gathering in the last millennium was the Kumbh Mela in Allahabad. The incident-free was a remarkable achievement and successful conduct of this month long pilgrimage.

INDUSTRY

Foreign Direct Investment

India witnessed record FDI inflow of US $ 4.06 billion (excluding ADRs/GDRs) as against US $ 2.46 billion in 2000-01, indicating a growth of 66 per cent.

First quarter of 2002-03 has also witnessed increased FDI inflows amounting to US $ 1.35 billion compared to US $ 0.63 billion in the previous year showing a growth of 106 per cent.

According to a recent study by the International Finance Corporation (IFC), adoption of international standards for computing FDI would raise India’s net annual FDI inflows from the present level of US $ 3 to 4 billion to about US $ 8 billion. This would amount to 1.7 per cent of GDP not far behind the 2 per cent of GDP level achieved by China. At present, India’s FDI figures do not include reinvested earnings and other direct capital flows which actually form part of FDI as per international reporting practices (IMF BPM 5). Following components have not been included:

- Short-term loans between related entities;
- Long-term loans between related entities;
- Issue of bonus shares;
- Financial leasing;
- Trade credits;
- Grants;
- Bonds;
- Reinvested earnings;
- Non-cash acquisition of equity;
- Investment made by Foreign Venture Capital Investors; and
- Earnings data of indirectly held FDI enterprises.

A Committee has been set up recently by the Government for adoption of the International FDI system.

Factors responsible for current spurt are:

Progressive liberalisation of FDI policy has strengthened investor confidence opening up of new sector (integrated townships, defence industry, tea plantations etc; sectoral reforms/deregulation in telecom sector etc.;

A large number of foreign companies have converted their joint ventures into wholly owned subsidiaries by buying out Indian partners (Escorts, Videocon etc). Many widely held companies made open offers to acquire shares held by Indian public (Philips, Cadbury etc);

Public Sector disinvestment has emerged strongly, e.g., Government of India’s decision to renounce its shares in favour of Suzuki Motor Corporation has brought in $ 300 m; and

Pro-active role played by the Foreign Investment Implementation Authority (FIIA) and other facilitation measures like electronic filling of applications, on line chat facility, dedicated e-mail facility for queries etc..

Inter-Ministerial Committee was set up in September, 2001 to simplify procedures and expedite process for investment approvals and implementation. Part I of report has been submitted.

Patents (Second Amendment) Bill passed

An amendment to the Patents Act, 1970, namely, the Patents (Amendment) Act 2002 has been passed by Parliament and subsequently notified in the Gazette of India on June 25, 2002. This Act makes the Indian Patent Law not only TRIPs compliant but also incorporates safeguards for protection of public interest and public health as provided in the Doha Declaration. It also incorporates provisions for protection of bio-diversity and traditional knowledge.

Apart from legislative changes in relevant IP laws, the Government’s initiatives have included major upgradation and modernisation of the administrative framework covering Patents, Designs, Trade Marks and Geographical Indications. Projects to modernise the Patent Office, the Design Offices, the Trade Marks Registries and the establishment of a new Geographical Indications Registry at a cost of over Rs. 85 crore have been taken up. Comprehensive computerisation has been undertaken in order to improve the functioning of Patent Offices. Two modernised patent offices in Delhi and Chennai were operationisalised in July and August, 2001, respectively, and a modern Geographical Indications Registry (GIR) was inaugurated at Chennai in August, 2001.

Further, appropriate initiatives have been taken and intellectual property related legislations enacted/amended in several other areas viz., The Geographical Indications (Registration & Protection) Act 1999; The Trade Marks Act, 1999; The Designs Act, 2000; The Copyright Act, 1957 as amended upto December 1999; The Semi-conductor Integrated Circuits Layout Designs Act, 2000; and The Protection of Plant Varieties and Farmers’ Right Act, 2001.

New Industrial Policy for Jammu & Kashmir

A comprehensive package of incentives for the State of Jammu & Kashmir was notified on June 14, 2002 as part of a new Industrial Policy for J&K. The package provides major fiscal Incentives to new Industrial Units and substantial expansion of existing units whereby new industrial units and existing industrial units under expansion are entitled to 100 per cent excise duty exemption for a period of 10 years from the date of commencement of commercial production. The financing pattern for development of integrated industrial infrastructure has been changed from 2:3 between Government of India (GoI) and Small Industries Development Bank of India (SIDBI) to 4:1 and the GoI funds would be in the nature of a grant, so as to provide the required infrastructural support.

INFORMATION AND BROADCASTING

The Ministry of Information and Broadcasting is the nodal Ministry for information, broadcasting and entertainment (including films) sectors. The functions of the three sectors are complementary to each other and cannot be strictly compartmentalised. In the last five years, the rapid advances being made globally in the entertainment and broadcasting sectors and a series of bold policy initiatives have transformed the role of the Ministry from an information disseminator to a facilitator of economic growth.

Industry Status to Entertainment Sector

One of the major policy initiatives, which have revolutionised the film production in the country, has been the granting of the ‘Industry Status’ to the Entertainment Sector (which includes the film sector). Institutional finance and other facilities are now available to the Sector. The Industrial Development Bank of India (IDBI) has already started financing film and other entertainment projects. Apart from encouraging corporatisation, the granting of industry status for the entertainment Sector, has helped in providing clean credit for new projects.

Exports

Export of Indian entertainment products including films, music and animation capability have been actively encouraged by the Government. Apart from participation in film festivals and markets abroad, a partnership with the Industry has been established through the aegis of FICCI and CII to make further inroads into the global market. In the last five years, besides the increase in export revenue from Rs. 250 crore to over Rs. 900 crore. There has been recognition of Indian films at Cannes, Locarno and in other parts of the world, apart from nominations for films like Lagaan for Oscar Awards.

Foreign Direct Investment (FDI) in Film and Advertising

Recognising the growth and employment generation potential, 100 per cent FDI has been permitted in the film and advertising sectors through the automatic approval route. It is envisaged that foreign participation would help in setting up of multiplexes, financing and production of films and in other related areas.

Up-linking Policy Liberalised

Till recently the uplinking policy permitted all TV channels irrespective of ownership equity structure or management control to up-link from India. Taking advantage of this Policy 80 channels have received permission for uplinking from India. In addition, India is envisaged to become an up-linking hub. For this purpose 49 per cent foreign equity has been permitted in Indian companies setting up teleports. A total of 21 teleports have been approved already. The Government has reviewed the uplinking policy and has now stipulated that for news & current affairs channels, the foreign investment would be limited upto 26 per cent only.

Direct-to-home Television

The Government has opened up direct-to-home transmission service in the KU band. This will afford a wider choice to the consumer for television content.

Regulation of Cable TV

In order to bring transparency in the cable distribution system and also to protect the TV consumers from the frequent and arbitrary hikes in cable subscription and give them the choice to pay for only those pay channels they wish to view, the Cable Act was amended to introduce the Conditional Access System (CAS) for pay channels. A Set Top Box (STB) would have to be installed at consumer’s place. However, no STB is required for receiving Free to Air channels. Government would fix the minimum number of channels to be shown in the FTA basic service tier of channels and its maximum price. To begin with, the CAS is being introduced in the four metros – Delhi, Mumbai, Chennai and Kolkata.

Radio Broadcasting Opened Up

In order to diversify radio services and provide choice in entertainment to the people, FM broadcasting has been opened up for the private broadcasters. Five private FM Channels at Mumbai and one each at Bangalore, Ahmedabad, Lucknow, Pune, Vishakapatnam, Coimbatore, Thiruvananthapuram and Indore have been operationalised. The private FM services in Delhi, Chennai and Kolkata are likely to be operationalised shortly. The second phase is also likely to be taken up after April. All India Radio has also launched its 2^nd FM Channel, providing both news and entertainment.

Improving Prasar Bharati Infrastructure

A special package of Rs. 430 crore for improvement of AIR/Doordarshan infrastructure in Jammu & Kashmir was approved and is in its last stage of implementation. Another package for improvement of the AIR/Doordarshan infrastructure in the North-East region (including Sikkim and Island territories) has been approved in principle, for implementation during the 10^th Five-Year Plan. In the North-Eastern region, a scheme for establishment of 160 cable head-ends in select villages has been taken up. DD Metro coverage, increased from 13 to 37.7 per cent of the population. The concept of narrowcasting for telecast of special programmes for rural areas will become a reality with the introduction of this service from 9 TV stations. Induction of digital based technology by AIR by launching of digital ‘direct to home’ satellite service, as also digital based programme production facilities and digital storage of Archival Audio material has also commenced.

New Channels on Doordarshan

Twenty-four hour satellite channels have been launched in nine languages – Gujarati, Bangla, Tamil, Telugu, Kannada, Marathi, Malayalam, Punjabi and Oriya. Kashmir Channel, 24 hours North-East channel and DD-India have also been launched. A State network service has been launched in the new States of Chattisgarh and Jharkhand. Coverage of DD India extends to major parts of the world. A special sports channel has also been launched. The DD Bharati channel has been launched to focus on children, health, art and culture.

Foreign Investment in Print Media

A review of the policy on allowing foreign investment in the print media was carried out. Publication of Indian editions of foreign, scientific, technical, speciality journals on a case-by-case basis have been allowed. Foreign investment has been allowed on a case-by-case basis upto 74 per cent in Indian entities publishing scientific, technical, speciality journals. FDI upto 26 per cent has also been allowed on a case-by-case basis in Indian entities publishing newspapers/periodicals dealing with news and current affairs, subject to certain conditions.

Expenditure Reforms Commission

In response to the recommendations of the Expenditure Reforms Commission and after extensive review of the functioning of the various units of the Ministry, a proposal was made to rationalise the structure of the units without adversely impinging on operational efficiency. To this end, 1, 334 posts in the various media units of the Ministry were identified that could be abolished in a phased manner. Out of these, 334 posts have already been abolished.

Journalist Welfare Fund

A Journalist Welfare Fund has been set up with a corpus of Rs. 5 crore, with a view to provide immediate ex-gratia relief to the families of journalists, who suffer loss of life or permanent disability in the course of their duties due to unnatural causes.

Reach of Media in New States

Offices of Press Information Bureau (PIB), Song and Drama Division (S&DD) and DFP have been set up in the State capitals of the newly created states of Uttaranchal, Chhatisgarh and Jharkhand. The AIR and Doordarshan facilities in these States have also been upgraded.

Press Information Bureau

The foundation stone for the National Press Centre was laid by the Prime Minister, Shri Atal Bihari Vajpayee, in New Delhi. The National Press Centre is to be located at a central place and easily accessible from Parliament, Central Secretariat and various media organisations. The Centre will have state-of-the-art facilities for facilitating the work of the media.

The Bureau organised multimedia publicity for Gujarat earthquake relief, women empowerment year, National Film Awards, International Film Festivals, President Clinton’s visit, Indo-Pak summit at Agra, General and Railway Budgets, Kargil war, formation of new States of Chhatisgarh, Jharkhand and Uttaranchal and other major policy initiatives of the Government.

Publications Division

The Publications Division released an interactive CD containing writings of Mahatma Gandhi, film clippings, photographs and a virtual reality tour of Sabarmati Ashram. The Division published books on great lives, great words, empowering the Indian Women and biographies of Dr. C. Rajagopalachari, Dr. Bidhan Chandra Roy, Netaji Subhash Chandra Bose, Loknayak Jai Prakash Narayan, and Pandit Deen Dayal Upadhyaya.

Advertising and Visual Publicity

The Advertising Policy was revised to bring about greater transparency, to simplify the procedure for empanelment and to tighten circulation check of newspapers. A brochure – ‘Government of India’s Welfare Schemes to Meet Your Needs’ – collating welfare schemes of all Ministries/Departments at one place was brought out. DAVP carried out a special campaign immediately after the Gujarat earthquake calling upon the people to donate generously for relief of earthquake victims. A major campaign was also undertaken as a part of celebrations of 50 years of India’s Republic.

Photo Division

The Photo Division undertook extensive photo coverage to visiting dignitaries as also visits of the Prime Minister to various countries including the USA, Italy, Vietnam, Indonesia, Bangladesh, Nepal, South Africa, Mauritius, NAM Conference, UN and Maldives. A number of photographs related to the general election were released to the press for publicity purpose. The Division also organised a photo exhibition titled ‘ A Movement of heroism in Kargil’. The Division is also placing photographs on the Internet through the PIB website and releasing photographs through PIB to the print media.

Song and Drama Division

The Song and Drama Division organised a large number of developmental programmes. These included staging of ‘Shatroopa’ a sound and light programme on Women’s Empowerment Year, campaign on AIDS prevention, anti-terrorism programmes in J&K and Punjab, use of iodized salt, Quit India Movement, 50 years of India’s Republic, Pulse-Polio Immunisation, Sindhu Darshan and ‘Kavita Mein Krishna’.

Research, Reference and Training

The Research, Reference and Training Division prepared several research papers including a catalogue of Indian women writers and an approach paper on communal harmony with focus on India’s multi-religious and multi-cultural society. The Division started organising in-service training for officers of the Indian Information Service.

Field Publicity

The Directorate of Field Publicity, which is responsible for educating the public at the grass-root level about the policies, plans and programmes of the Government, organised publicity campaigns on national integration, communal harmony, women’s empowerment, health and family welfare, AIDS awareness, child rights, literacy and anti-tobacco and anti-drugs themes.

INFORMATION TECHNOLOGY

The Indian Information Technology sector is posed for exponential growth. The growth in export of I.T. software services during the year 2001-2002 was 32.75 per cent as per the Electronics and Computer Software Export Promotion Council (ESC). Software exports of computer software and related services, which were Rs.12, 500 crore in 1998-99, is expected to touch Rs.54,000 crore in the year 2002-03. It is likely to take a quantum jump to Rs.98,000 crore in another two years time (2004-05). The Tenth Five Year Plan document has set the following target for the software exports:-

Year	Rs. In crore
2002-03	54, 000
2003-04	73, 000
2004-05	98, 000
2005-06	1,28, 000

A large number of Indian software companies have acquired international quality certification. India’s expertise in emerging technologies actually helped the country to get new customers. The companies in Europe and Japan are increasing their outsourcing to India.

Larger Indian companies focused on moving up the IT value chain, by offering services, such as system integration, package implementation, IT outsourcing and IT consulting. They are also targeting new verticals, such as utilities, healthcare and retailing, in addition to the traditional financial services, telecom equipment and manufacturing industries.

Indian IT software and services industry is projected to provide employment to 6, 50,000 IT professionals by March, 2003. It is estimated that these knowledge workers, almost 2, 05,000 are working in the IT software and services export industry; nearly 1, 60,000 in IT enabled services; 25,000 in the domestic software market and over 2, 60,000 in user organisations.

Dedication of Community Information Centres to the N-E States and Sikkim

The Department of Information Technology has set-up Community Information Centres (CICs) in 487 blocks in the seven North-Eastern States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura) and Sikkim to provide connectivity at the block level. This will promote application of Information Technology for accelerating socio-economic development of the region. The CICs will help in tackling the digital divide by providing internet access and IT enabled services and also to facilitate citizens interface with the government. The CICs were dedicated to the people of North Eastern States on August 17, 2002.

Media Lab Asia

The Media Lab Asia, a joint collaboration between the Department of Information Technology and the Massachusetts Institute of Technology, USA, has been an important initiative to address the challenge of Digital Divide in India and other developing countries. It would pursue high-end research in four areas germane to the needs of rural India: ‘World Computer’ (low-cost computing devices); ‘Bits for All’ (bringing low-cost connectivity to the doorstep of rural masses; ‘Tools for Tomorrow’ (creation of low-cost learning tools to bring out the spirit of innovation among the rural youth); and ‘Digital Village’ (where the above three research programmes would be demonstrated for palpable impact).

Media Lab Asia was included in the list of ‘fifteen important national initiatives’ for poverty alleviation and development announced by the Prime Minister on August 15, 2002. Media Lab Asia has been designated as an Asian Regional Hub of the United Nations ICT Task Force for coordinating activities of academia and the private sector in the area of IT for the Masses.

Electronic Governance

Information & Communication Technologies (ICTs) and the advent of the Internet, provide an opportunity to transform the relationship between Government on the one hand and citizens and business or industry on the other. E-governance also affords a unique opportunity for the Government to present a unified and integrated interface to citizens or businesses. The Government is drawing up a comprehensive programme to ensure that the benefit of e-governance reaches all sections of the society and economy. Various IT activities such as development of software applications packages, creation of e-governance infrastructure, national ID, citizen databases, GIS/GPS, smart card and digital/educational content, etc., in e-governance domain has been taken up on pilot scale basis.

The Department had implemented the ‘Bhoomi’ project on land records in the State of Karnataka. The project is one of the most successful pilot projects in the e-Governance area in the country. The other successful projects on e-governance are registration, transport, municipalities, gram panchayats, treasuries and integrated citizen services centres, which are running in different States on pilot scale.

Vidya Vahini and Gyan Vahini programmes

To integrate ICT in the learning environment in the Government and Government-aided schools and higher learning institution in the country, the Department of Information Technology has formulated ‘Vidya Vahini’ and ‘Gyan Vahini’ programmes to provide connectivity and IT Infrastructure to schools and higher learning institutions in the country. This will be a step to improve the quality of education and laying a good foundation at the learning institutions, faculty development and exchange of skills. Pilot projects have been taken up to connect about 200 Senior Secondary Schools in the seven districts in the country and campus-wide network at Delhi University.

E-Commerce and Information Security

To provide promotional support for e-commerce and information security to catch up with the rest of the world and achieve accelerated economic growth in the country a programme – ‘E-commerce and Information Security’ was initiated by the Department.

E-Learning

Department of Information Technology has taken an initiative to promote E-learning as a potential methodology, to complement Government’s efforts to generate high quality, high-end manpower in the area of Information Technology.

National Institute for Smart Government

National Institute for Smart Government (NISG) has been incorporated as a section 25 company under the Companies Act 1956 on May 29, 2002. The organisation is expected to play a pivotal role in channelising private resources and competence into the national e-governance effort.

Information Technology Act

The Government has created the necessary legal and administrative framework through the enactment of the Information Technology (IT) Act, 2000. While on the one hand, it seeks to create the public key infrastructure for electronic authentication through digital signatures, on the other hand, it seeks to build confidence among the public that the frauds in the cyber space will not go unpunished. The Controller of Certifying Authorities (CCA), set-up for implementation of the IT Act, has established the National Root infrastructure, which would be used for digitally signing the certificates of all the certifying authorities. Beginning February, 2002, four Certifying Authority Licences have been issued to operate under the Root. These are: Safescrypt Limited, National Informatics Centre (NIC), Institute for Development and Research in Banking Technology (IDRBT) and Tata Consultancy Services (TCS).

Indian Computer Emergency Response Team (CERT)

Today, Internet has emerged as the principal medium of communication. The open system to share information needs secure systems prevent prowlers from taking away the digital assets. It is essential to create a confidence-level in the public so that it can begin to use the network with absolute faith in commerce, communication, entertainment, software development and governance and ensure safety of the Government network. The Indian Computer Emergency Response Team (CERT) is being set-up at two locations viz. Delhi and Bangalore to ensure that India’s IT assets are appropriately and adequately protected.

The Semiconductor Integrated Circuits Layout-Design Act, 2000

The Government has enacted the Semiconductor Integrated Circuits Layout-Design Act, 2000 to provide for protection of Semiconductor Integrated Circuits Layout-Design and for matters connected to it.

Indian Languages Technologies

In a multilingual country like India, with only 5 per cent of the population knowing English, it is essential that information processing and exchange software should be developed in local languages and be available at a low cost for wider proliferation of the benefits of ICT. Standardisation of Indian script codes (Unicode), machine translation, speech analysis and synthesis and lexical resource development, are being addressed to by the Department to enable the proliferation of ICT revolution.

Digital Library

Digital Libraries (DL) are a form of Information Technology in which social impact matters as much as technological advancements. Future knowledge networks will rely on scalable semantics, on automatically indexing the community collections, so that users can effectively search within the Intersperse of a billion of repositories. Among a number of major DL initiatives, the Universal Digital Library (UDL) project aims at creating a free-to-read, searchable collection of one million books, primarily in English language, available to everyone over the Internet. India participates in UDL project and makes efforts to put out content in the Indian language, as far as possible. This project involves participation of many countries, including USA, Australia, India and China and envisages the digitalisation of 1 million books (less than 1% of all books in all languages ever published).

Braille in Indian Languages

A computerised Braille transcription and embossing system has been developed under Jai Vigyan National S&T Mission, which can operate in English and all the major Indian languages. The equipment enables a school for blind children to easily generate reading material, class notes, question papers, training material for the blind students. The software and hardware have been developed for transcription of text to Braille and printing of Braille material on the indigenously developed Braille embosser. The equipment also enables the blind to communicate with the sighted, using a specially developed Braille keyboard and the Braille-to- text software. The systems have already been installed and commissioned in 30 blind schools in different parts of the country.

Software Technology Parks of India (STPI)

STPI centres act as ‘single-window’ in providing services to the software exporters and incubation infrastructure to Small and Medium Enterprises (SMEs). STPI is serving the software export industry country-wide with its centres located at Bangalore, Pune, Bhubaneshwar, Hyderabad, Noida, Gandhinagar, Thiruvananthapuram, Chennai, Mohali, Jaipur, Navi Mumbai, Hubli, Coimabatore, Manipal, Mysore, Guwahati, Vizag, Kolkata, Indore, Srinagar, Aurangabad, Shimla, Nagpur, Mangalore, Lucknow, Kanpur and Bhilai. More than 7000 units have been registered with STPI. The export revenue of the STP units is showing consistent growth during the last 5years. The software exports are likely to touch about Rs 37,000 crore during the year 2002-03.

Video Conferencing

Videoconferencing network has been set up in all the districts of Uttar Pradesh, Jharkhand, Himachal Pradesh and Uttranchal through NICNET. Videoconferencing facility has also been set-up at Leh and Neuoma Blocks, the highest point in the world, where on-line videoconferencing facility has been made available.

Disinvestment of CMC Ltd

The CMC Ltd., an undertaking under the Department of Information Technology, has been privatised through sale of 51 per cent of its equity in favour of Tata Sons Ltd., which paid an amount of Rs.152 crore to the Government for acquiring 51 per cent stakes in the company.

Dewang Mehta Award for Innovation in IT

The Department instituted Dewang Mehta Award for innovation in IT to recognise innovations, which have the potential to make a significant impact on national development, or bring fame to the country. The First Dewang Mehta Award for innovation in IT was conferred on the Simputer Team led by Shri Vinay L Deshpande. The Simputer, as a concept tool has the capacity to put computing power in the hands of the masses in the true sense of the term.

Computer Literacy Excellence Awards

In order to encourage schools to achieve excellence in computer literacy, the Department instituted ‘Computer Literacy Excellence Awards’ for Schools. The First Computer Literacy awards to 21 Schools in various States and three National awards were distributed by the Hon’ble President of India, Dr. Abdul Kalam, on August 29, 2002.

ELITEX

The Department organised ELITEX to showcase the technologies/products/services developed with its financial support. The themes of ELITEX during last two years were: convergence and enhancing e-readiness and theme for 2003 is – ‘moving up the value chain: India – a Global Destination for R&D’. Many new products developed by the DIT organisations have been launched for commercialisation during the event.

International Cooperation and Bilateral Trade

The Department regularly interacts with the foreign Governments, agencies and Indian Missions abroad to share our experience and to increase Government-to-Government cooperation in the Information Technology sector. MoUs have been signed with various countries for increasing Government-to-Government interaction.

Atal Bihari Vajpayee Centre of Excellence for Communications and Information Technology was set-up at Ulaan Baator, Mongolia, at a cost of US$1 million. The Institute as well as five Community Information Centres (CICs) at location sites selected by the Government of Mongolia was inaugurated on October 1, 2002.

Ebene Cyber City and Information Technology Education Centre: The Department is helping the Government of Mauritius in setting up of Ebene Cyber City and Information Technology Education Centre at Port Louis, Mauritius. This project is being financed under a credit agreement between the Government of India and the Government of Mauritius for utilisation of a line-of-credit of US$100 million from India. Software Technology Parks of India (STPI) is implementing the project.

Kofi Annan Centre of Excellence in Information Technology: The Department is also setting up Indo-Ghana Kofi Annan Centre of Excellence for Communication and Information Technology at Accra, Ghana, and five Community Information Centres with Indian assistance including training at an estimated cost of US$ 2 million. The project is likely to be completed in 2003.

Online Election Results, Budget and Examination Results

Online transmission of election results for the States were facilitated through NICNET. Doordarshan and other media and Government agencies used the NIC election feedback to provide live transmission of election results to the viewers. Online transmission of Union Railway Budget and General Budget was facilitated through NICNET for the entire country and was widely used by the media, industry and other agencies.

NIC published results of various examinations conducted by the CBSE, State Education Boards, universities, professional entrance examinations, Staff Selection Commission, Institute of Chartered Accountants, etc., (http://results.nic.in). The facility to download admit cards for certain examinations directly from the net was also incorporated.

IT Venture Capital Fund for the Information Technology Industry

The Ministry of Information Technology has been taking various initiatives to promote the Indian IT and Computer Software Industry. To provide finance for start-up ventures, the Department in association with Small Industries Development Bank of India (SIDBI), Industrial Development Bank of India (IDBI) set up a Rs. 100 crore ‘National Venture Fund for Software and Industry’. This fund with a contribution of Rs. 30 crore from DIT was launched by the Prime Minister on January 10, 2000.

National Task Force on Information Technology and Software Development

Special Action Plan (SAP), an initiative of the Prime Minister aims to make India a global information technology superpower and one of the largest generators and exporters of software in the next ten years. The Government constituted a National Task Force on Information Technology and Software Development in May, 1998. The Task Force submitted the reports in three parts in 1998-1999. The First Report of 108 recommendations relate to telecommunication policies and procedures, cyber laws, labour laws for IT industry, fiscal incentives, promotion of IT in schools and rural areas, computer literacy and computer penetration in the country, of which 64 recommendations have been implemented and 37 are in the process of being implemented. Three recommendations have not been accepted and four have not been implemented.

Part II of IT Task Force Report mainly focuses on revival of the hardware industry. This and the Part III of IT Task Force Report relates to Long-term IT policy.

First National Conference of IT Ministers

Some of the other prominent initiatives taken during the period include: The first-ever National Conference of various States IT Ministers for arriving at Common Action Plan to promote IT in India in New Delhi was organised on July 15, 2000. The Prime Minister, Shri Atal Bihari Vajpayee, inaugurated the conference. Some landmark decisions taken during the conference were: Full deregulation of National Long Distance Operations (NLDO), before August 15, 2000, with no restriction on the number of licenses to be issued. NLDO as well as ISD has since been opened with no restriction on the number of players; complete demonopolization of undersea optical fiber connectivity for ISPs by August 15, 2000; private ISPs will be allowed, either singly or jointly, to set up their own landing stations anywhere in India in collaboration with international undersea bandwidth carriers.

Task Force on Human Resource Development in IT

Following the announcement made by the Prime Minister in the First National Conference of IT Ministers on July 15, 2002, a Task Force on Human Resource Development in IT has been set-up.

Y2K Rollover

As the countdown for the year 2000 began, efforts towards preparing the nation for the Y2K problems was strengthened and accelerated by the Government. Reports from all sectors have indicated that India passed the Y2K glitch successfully and without any problems.

Other Initiatives

A project on National Resource Centre for online learning at National Centre for Software Technology (NCST) Mumbai, has been initiated. This Centre will enable to develop a vision and supporting infrastructure for academic and non-formal institutions to understand the opportunity, issues and technology trends relating to “Online Learning” and thus contribute to the emergence of India as an IT super power. A new R&D Centre of NCST at Electronic City, Bangalore was inaugurated on July 12, 2000. This Centre, in addition to imparting advance level training, will also serve as a resource centre to industry, specially, in the area of software engineering and product development.

The working group on Information Technology for masses has set an ambitious target of at least 100 million Internet connections by the year 2008 and 1 million Internet enabled IT Kiosks/Cyber Cafes to be established covering the entire length and breath of the country.

An advisory committee comprising of well-known IT professionals from the industry was set up on January 17, 2000 under the Chairmanship of Minister (IT) for Department of Information Technology. The Advisory Committee will assist Department of Information Technology to identify thrust/emerging technology areas and will suggest measures/policies/actions for making Indian IT industry a Global Superpower.

A select group comprising successful and well known IT professionals based at Silicon Valley was formed under the Chairmanship of Minister (IT). The Group will interact through internet, email, video conferencing and may meet every year to advise the Government on various issues relating to development of IT, telecommunication infrastructure and software export from the country.

LABOUR

During the last five years, social security to the organised and unorganised workforce continued to be the Government’s priority, even in the era of liberalisation.

Revival of Tripartism

The Labour Ministry is one of the important Ministries of the Government and has been striving to have harmonious industrial relations in the country. The present Government, which is committed to the ethos and culture of tripartism, took measures to revitalise it. The biggest initiative in this direction came from the Prime Minister, Shri Atal Bihari Vajpayee. He is the first Prime Minister to attend three successive annual sessions of the national level apex tripartite conference of social partners, the Indian Labour Conference, highlighting the Government’s commitment at the highest level to tripartite consultation process on labour issues.

Review of Labour Laws

The second Labour Commission was constituted to suggest changes in various labour laws in order to achieve the goals of labour welfare, generation of additional employment, higher investment and accelerated industrial growth. The Commission on Labour has given a comprehensive report covering a wide-range of labour issues. Its specific recommendations are being discussed with various stakeholders. Based on these deliberations, a comprehensive umbrella legislation for workers in the unorganised sector is being finalised for introduction in this session of Parliament.

Labour Legislation

The Ministry continues to have consultations with the social partners to obtain a consensus for enacting new laws or bringing about changes in the existing laws necessitated by the changing economic scenario. The Trade Union (Amendment) Bill, 2000, was passed by Parliament during monsoon session of 2001. It aims at reducing the multiplicity of trade unions and making them more democratic and effective.

WELFARE MEASURES FOR WORKERS IN ORGANISED SECTOR

Increase In Compensation Amount to Workers

The Workmen’s Compensation Act has been amended to substantially increase compensation amount to workers in case of death and disability. The compensation due to workers under the Workman’s Compensation Act was raised from Rs. 2.74 lakh to Rs. 5.48 lakh for disability and from Rs. 2.38 lakh to Rs. 4.56 lakh in case of death.

Measures for Employees’ State Insurance (ESI) Beneficiaries

The Employees’ State Insurance Corporation (ESIC) has granted exemption to workers earning less than Rs. 40 a day from payment of contribution to Employees State Insurance Fund. This has benefited about 6.10 lakh low paid workers. The ESIC scheme has been extended to about 2,48,213 establishments covering nearly 3.10 crore beneficiaries including workers and their families.

Eight new ESI hospitals, i.e. one each at Trichy, Okhla, Rohini, Nagda, Durgapur, Shahbad, Rourkela and Belgaum were started under the ESI Scheme. ESI Corporation is contemplating setting up of one Model Hospital in each State. In addition to the already existing Occupational Disease Centres at Delhi, West Bengal, Tamil Nadu and Madhya Pradesh, the ESIC has taken over six Hospitals i.e. one each in Andhra Pradesh, Uttar Pradesh, Rajasthan, Punjab, Chandigarh and Kerala for converting into Model Hospitals. Goa has not given consent. Himachal Pradesh has given conditional consent and revised consent for taking over Hospital at Bhubaneshwar, instead of Rourkela in Orissa, is awaited. Out of the remaining State governments, which have given their consent, dates for taking over the hospitals have yet to be finalised.

The corporation has added four more diseases to the list of 29 chronic diseases for entitlement to extended sickness benefit. The corporation has also undertaken a World Bank funded project for early detection and prevention of HIV/AIDS among industrial workers all over the country.

Measures for EPF Beneficiaries

The wage-ceiling limit for Employees Provident Fund has been enhanced from Rs. 5,000 to Rs. 6,500 per month from June, 2001. This has been done to bring in more workers within the ambit of the Employees Provident Fund.

As on date, there are over 11.68 lakh pensioners getting pensions under Pension Scheme. As per the valuation scheme conducted till date, pension relief @ 4%, 5.5%, 4% and 4% have been granted after 1^st, 2^nd, 3^rd and 4^th valuation respectively.

In the case of death during service of the employees covered under the EPF & MP Act, the ceiling on maximum amount of deposit linked insurance benefit has been enhanced to Rs.60,000 from Rs.35,000.

The Employees’ Provident Fund Organisation (EPFO) has embarked upon a comprehensive modernisation plan to strategically reposition the Employees’ Provident Fund as a frontline provider of provident fund, pension and other old age income security products meeting world-class standards of quality, timeliness and efficiency. In order to reduce the claims settlement time from 30 days to 2-3 days, a nation-wide unique social security number for each worker has been launched on February 25, 2003, on the Golden Jubilee Celebrations of EPFO.

A housing scheme for the EPF beneficiaries, has been introduced, that will add a new dimension to social security of workers.

Pension Through Post Offices also

About ten lakh EPF pensioners from July, 2001 have got the option of receiving pension through 26,000 Post Offices across the country. This has been done to help a large number of workers who after retirement go back to their homes located in rural and far-flung areas where banking facilities are not available.

Manisana Wage Board

The Manisana Wage Board Award for Journalists and non-Journalists employed in the newspaper industry has significantly improved the wage structure and allowances of journalists and non-journalists employed in the newspaper industry. The Government has accepted the award with few minor modifications.

Focus on Workers in Unorganised Sector

As a major policy decision, the Ministry decided to pay greater attention to the problems of workers in the unorganised sector who constitute 93 per cent of over 400 million strong workforce in the country. Majority of them earning very low wages and living below poverty line are not covered by any of the social security schemes. Several initiatives were taken to improve their lot by the Ministry.

Ministry has prepared a Bill to regulate the employment and conditions of service and to provide for health, safety, social security and welfare of workers of unorganised sector. Efforts are being made to introduce this Bill in the current session of the Parliament.

Social Security Scheme for Agricultural Workers

A unique social security scheme for agricultural workers, the “Krishi Shramic Samajik Suraksha Yojana-2001” became operational from July 2001. It will provide insurance protection to cover 10 lakh agricultural workers over a period of three years. Around two lakh agricultural workers have already been registered under the scheme in 50 selected districts in the country. The benefits under the scheme, inter-alia, include life-cum-accident insurance, money back, pension and superannuating benefits to the agricultural workers. In addition to this, the Government has launched the “Janshree Bima Yojana” on August 10, 2000, to provide Life Insurance Protection to the rural and urban poor persons including unorganised workers who are below and marginally above poverty line.

Labour Welfare Funds

The Ministry took several measures to further improve the Welfare schemes formulated for beedi, non-coal mine and cine workers. The main thrust of the Welfare schemes is in the Health sector as target groups are involved in health hazardous occupations. The corpus of Beedi Workers’ Welfare Fund increased from Rs. 21 crore to Rs. 40 crore to undertake more welfare activities.

Beedi and Mine workers

About 3.9 million of the 4.4 million beedi workers have been issued identity cards. There are approximately 1.15 lakh workers engaged in iron-ore, Manganese Ore, Chrome Ore, Limestone and Dolomite mines distributed basically in six States. Projects, for construction of three new 30-beded hospitals have been taken up for beedi workers at Nalanda (Bihar Sharif), Sagar (Madhya Pradesh) and Mukkudar (Tamil Nadu). Review of Group Insurance for beedi workers have been undertaken to make it more effective.

Cine Workers

A major initiative launched was to net in all cine workers within the ambit of the Cine Workers Welfare Fund Act, 1981. The Act was amended to raise the income eligibility ceiling. This empowers the Ministry to notify the income eligibility ceiling through executive decision from time to time so that almost all cine workers can benefit from the Welfare Fund. The income eligibility ceiling has been raised to Rs.8, 000 per month, which enabled the 64.5 thousand cine workers to avail benefits under the Welfare Fund.

The Cine Workers Welfare Fund operated by the Ministry provides health care, financial assistance for treatment of some major ailments to cine workers and their families, children’s education and Group Insurance Scheme for which the Ministry pays Rs. 30 per worker as insurance premium.

Building and Construction Workers

According to latest survey (1999-2000) of National Sample Survey Organisation, there are about 17.62 million building and other construction workers in India. To promote their welfare, the Ministry has been pressing the State governments to constitute State Welfare Boards/Welfare Funds, and State Advisory Committees and frame rules to implement the Building and other Construction Workers Act and the Welfare Cess Act. As a result, the government of Andhra Pradesh, Maharashtra, Uttar Pradesh, Madhya Pradesh, Manipur, Punjab, Goa and West Bengal are in the process of completing the necessary action to implement the Act. Kerala, Tamil Nadu and Delhi have constituted Welfare Boards and have started implementing the Act, while Pondicherry has framed rules under the Act.

National Minimum Wage Increased

The National minimum wage has been revised to Rs. 50 a day with effect from September 1, 2002.

Welfare Fund for Overseas Indian Workers

A move has been initiated to set up Central Manpower Export Promotion Council. The proposed Council would play a role of promoting employment opportunities for emigrants, projection of manpower services from India in major labour markets abroad, liaison with other export promotion agencies and administration of the Indian Overseas Workers’ Welfare Fund. The Welfare Fund would be set up by collecting a fee from each worker leaving the country for overseas employment. It would be utilised for repatriating the workers stranded in foreign countries, providing financial assistance to the kin of workers who die during foreign employment, etc. The Emigration (Amendment) Bill, 2002 has been introduced in the Lok Sabha on September 21, 2002 to provide for the setting up of the council and the fund.

Elimination of Child Labour

Elimination of child labour continues to be an area of great concern. The policy of the Government is to ban employment of children below 14 years in factories, mines and hazardous vocations. As a part of this policy, the Ministry in May, 2001, banned employment of children in six more hazardous processes raising their number to 57. The Government proposes to cover all child labour endemic states with projects for rehabilitation beginning with children employed in hazardous occupations.

Priority to Creation of Skilled Labour Force

The Government has accorded a very high priority to the creation of a skilled labour force in the country by upgrading the skills of labour force to help them take advantage of globalisation process. A draft National Policy on vocational Training has been prepared and reviewed by an Expert National Committee comprising all stakeholders. The draft policy is being put up for consideration by the Committee of Secretaries.

The Craftsmen Training Scheme has been strengthened by opening 1,035 new ITIs. The Ministry has also launched a special drive to set up 1,000 more ITIs, and also has introduced need-based courses.

LAW AND JUSTICE

The Government has taken several milestone steps to improve the lot of people during 1998 to 2003 through adjustment of laws; enactment of new laws intended to simplify laws relating to justice delivery system under a time bound programme; making the institution of Lok Adalats permanent to bring in it public utilities so as to provide time bound and cost effective justice to the people at the pre-litigative and otherwise stage of disputes resolution at the cutting edge of public administration; effecting personal law reforms through amendments in various marriage and other laws by making it mandatory for the courts to provide interim judgements within 60 days in the matter of alimony, maintenance and compensation to women in distress in divorce suits; maintenance of children and old parents, bringing the junior lawyers and advocates in general within the net of social security through Advocates Welfare Fund; adjusting registration; and transfer of property and stamp laws to prevent malpractices in registration of properties.

The legislative department also made available all the Central Acts of All India application on Internet/NICNET on its website http://indiacode.nic.in. In addition, CD ROMs of the Constitution of India and election laws were released. A large number of obsolete laws have been repealed.

JUDICIAL REFORMS

New Initiatives

The scheme of setting up Fast Track Courts was started at the initiative of the Department of Justice from funds allocated by the Eleventh Finance Commission. The Initiative for the introduction of Information Technology in courts was taken by earmarking a portion of Centrally Sponsored Scheme (CSS) funds exclusively for the use of IT.

Plans were finalised for the pilot project of computerisation of courts in the four major metros — Delhi, Mumbai, Kolkata and Chennai to serve as a model for the use of Information Technology in courts.

National Judicial Academy:

The National Judicial Academy at Bhopal was inaugurated in 2002. It will provide in-service training to judicial officers.

National Judicial Pay Commission

The National Judicial Pay Commission has been set up under the Chairmanship of Justice K.J.Shetty, Retd. Judge of the Supreme Court, to examine the minimum qualification, age, method of recruitment, work environment of the judicial officers and their salaries and allowances. The Commission is not only the first commission on judiciary in the country, but also the first of its kind within Commonwealth countries.

Fast Track Courts

The Fast Track Courts have been set up to clear the backlog of pending cases in various session courts of the country. The actions initiated so far include: A total of 1,734 Fast Track Courts fully funded by the Centre at Sessions Court level throughout the country to be set up at a cost of Rs 502.90 crore. As on December 31,.2002, 1,271 courts have been established , out of which 979 Courts have already started functioning and they have disposed off 77,016 cases so far. All the undertrial cases have been given priority for disposal. All Session cases pending for two years or more have been accorded priority for disposal.

The Supreme Court has approved the Constitutional validity of Fast Track Courts and directed the Chief Justices of High Courts and the Chief Ministers of States to fill all the vacancies of presiding judges of Fast Track Courts.

Computerisation of Courts

Execution of pilot project of computerisation and networking of City courts in four metropolitan cities of Delhi, Kolkata, Chennai and Mumbai has started. The project further envisages computerisation of subordinate courts in State Capitals in the second phase. Department of Justice also initiated a pilot project to upgrade the computer network of the four metropolitan High Courts of Delhi, Bombay, Calcutta and Madras to the level of the Supreme Court, so as to bring about the same speed and efficiency in disposal of cases in these High Courts as exists in the Supreme Court, High Courts and High Court Benches

After the reorganisation of Madhya Pradesh, Uttar Pradesh and Bihar, three High Courts were established in the newly created States of Chattisgarh, Uttaranchal and Jharkhand and they have started functioning from November 1, 9 and 15, 2000, respectively. A plan has also been drawn for building/extension in these newly created High Courts and other High Courts.

A Bench of Guwahati High Court has been set up at Itanagar in Arunachal Pradesh on August 12, 2000. A Bench of Madras High Court at Madurai is also proposed to be set up. A Bench of the Calcutta High Court at Jalpaiguri is also being contemplated, subject to the development of infrastructural facilities.

Filling up Vacancies of Judges

An action plan has been drawn up for filling up all the 2,216 vacant posts of judges and magistrates in district/subordinate courts has been drawn up for the year 2002-2003, as per the directions of the Supreme Court in Judges Case in March, 2002.

Family Courts

An action plan has been worked out for new Family Courts and allocation of funds made for setting up of more Family Courts at a 50:50 cost sharing basis as and when demanded by States. Already 105 such Family Courts are functioning in different States. The Centre has urged the State governments to set up Family Courts in each district on cost sharing basis to resolve family and matrimonial disputes.

LEGAL REFORMS

Legal Aid to Poor

Article 39-A of the Constitution provides for free legal aid to the poor and the weaker sections of the Society. The Legal Services Authorities Act, 1987 as amended by the Act of 1944, which came into force on November 9,1995, aims at establishing a nation-wide network for providing free and competent legal services to the weaker sections. National Legal Services Authorities (NALSA) has been set up for implementing and monitoring legal aid programmes in the country. The Supreme Court Legal Services Committee has been constituted under the Act. In every High Court also, the High Court Legal Services Committees are being established to provide free legal aid to eligible persons in legal matters coming up before the High Courts

National Legal Services Authority has introduced the following schemes and programmes, which would ensure equal opportunities of justice even to the poorest of poor and all weaker sections of the society in terms of Articles 39-A of the Constitution of India namely:

Permanent and continuous Lok Adalats in all Districts throughout the country are being set up for conciliatory settlement of disputes;

Legal Aid Counsel have been appointed in all Courts of Magistrates in the country to give timely and free legal assistance to persons in custody who cannot engage an advocate;

Legal aid and advice to prisoners in jails is being provided.

Legal Literacy and Legal Awareness Camps are being organised.

Counselling and conciliation centres in Districts for guiding the public to settle their disputes amicably;

Legal Aid Clinics and Camps even in the remotest areas including tribal areas;

Accreditation of NGOs by the State Legal Services Authorities for implementation of legal aid programmes at the grass-root level; and social justice regarding consumer protection, environmental protection or any other matter of special concern to weaker sections of the society; and,

Sensitisation of judicial officers all over the country regarding legal services and schemes made thereunder;

During the period from October ’99 to March ‘2002 about 24.41 lakh persons received free legal aid and advice in law courts. During the same period about 1,30,800 Lok Adalats were held and about 67.80 lakh cases were settled including 3,49,000 MACT Cases wherein compensation amounting to over Rs.2, 317.84 crore was ordered to be paid by the parties involved.

International Agreements

Three separate agreements were signed between India and UAE, India and Russia, India and Mongolia on Mutual Legal Assistance in civil and commercial matters have been signed during this period. The Agreements would focus on judicial cooperation, legal assistance, legal relations and related subjects.

Law Commission

The 16^th Law Commission of India has been reconstituted with effect from September 1, 2000 for a period of three years with Shri Justice B.P Jeevan Reddy as its Chairman, Shri Justice M Jagannadha Rao as its Vice-President, Dr N.M Ghatate as its Member and Shri T. K Viswanathan as Member-Secretary. The 15^th Law Commission, which ended its term of office on August 31, 2000, submitted 18 reports, all of which have already been laid in Parliament.

Reservations for SCs, STs and Anglo-Indians

The Constitution (Eighty-fourth Amendment) Act, 1999 regarding extension of reservation of seats for SCs/STs and nomination of Anglo-Indians in the Lok Sabha and State Legislatures for a further period of ten years beyond January 25, 2000 has been passed by both the Houses of Parliament and sent to the State Legislatures for ratification. The Constitution (Eighty-fifth Amendment) Bill, 1999 seeking reservation of one-third of the seats in Parliament and Legislative Assemblies for women was also introduced. The Election Laws (Amendment) Bill, 1999 was introduced in the Lok Sabha seeking to provide additional facility for voting through proxy to members of the Armed Forces. The provisions of the Army Act, 1950 have now been made applicable to them.

CD of Constitution and Election Laws

In addition, a CD-ROM on the Constitution of India and Election Laws was released by the Legislative Department.

Freedom of Information Bill

In a historic initiative, the Government received Parliamentary assent for the Freedom of Information Bill 2002, which introduces greater transparency and openness in the functioning of the Government and public bodies.

Constitution in Sindhi

The Prime Minister released the Sindhi Version of the Constitution of India on July 27, 1998. Besides the authorised Hindi text, the Constitution of India has so far been published in 12 languages.

Civil Procedure Code

Not only public, but the Government was also conscious about the problem of delay in disposal of cases. This led to the amendments in the Code of Civil Procedure. The Code of Civil Procedure (Amendment) Act, 1999 and the Code of Civil Procedure (Amendment) Act, 2002, came into being with the aim of curtailing delays and lessening the lengthy procedure to compress the civil cases into one-year timeframe for final disposal. The Act:

Prohibits further appeal in certain cases and prevents second appeal in certain other cases; allows servicing of summons through couriers and other means of modern communication systems; restricts pleading; casts certain obligations on plaintiff; provides for written statement by the defendant; provides for recording of evidence by commissioners; restricts adjournments to three times only; and, binds judges to deliver judgement within 30 days ordinarily after the judgement is reserved.

Compulsory pre-litigative Mechanism in Lok Adalats

The Alternative Dispute Resolution System is one of the important means to reduce the burden on the justice delivery system by encouraging reconciliation and arbitration.

The system of Lok Adalat is an innovative concept, which can provide an effective mechanism for resolving disputes in a spirit of conciliation outside the court. However, the efficacy of the system remained low because in case of failure to reach a settlement, the parties were allowed to invoke the jurisdiction of the courts. It is in this context that the amendments have been brought about to provide a compulsory pre-litigation in respect of a certain class of cases involving the State as one of the parties through the institution of Lok Adalats. The special features of the Legal Services Authorities (Amendment) Act, 2002, are:

It seeks to provide compulsory pre-litigative mechanism for conciliation and settlement of cases relating to public utility services;

The public utility services like transport of passengers or goods by air, road or water; postal, telegraph or telephonic service, supply of power and water to the public, public conservancy or sanitation; hospitals and insurance have been brought within the purview of the Permanent Lok Adalats;

After an application is filed by any party before the Lok Adalat for settlement, no party shall invoke jurisdiction of any court or tribunal;

Award made by the Lok Adalats shall be final, binding and shall not be questioned in any original suit, application or adjudication proceedings;

The award shall be deemed to be a decree of civil court;

Monetary jurisdiction of permanent Lok Adalats has been fixed at Rs. 10 lakh with power conferred on the Government to revise it from time to time; and,

Permanent Lok Adalat will comprise a Chairperson with judicial experience and two other persons having adequate experience in public utility services.

Notaries Rules

The Notaries Rules have been amended to relax the eligibility norms for women and persons belonging to Scheduled Castes, Scheduled Tribes and Other Backward Classes who would now be eligible with 7 years experience as against 10 years for general category. The measures include:

Revised rate of fee for doing notarial acts prescribed under rule 10 of the Notaries Rules, 1956; and

Fixed quota of notaries to be appointed by the State governments and Central Government in each State and Union Territory.

ATFE Starts Functioning

With the repealing of the Foreign Exchange Regulations Act, 1973 and its replacement by the Foreign Exchange Management Act, 1999, Foreign Exchange Appellate Board (FERA Board) was dismantled with effect from June 1, 2000 and in its place Appellate Tribunal for Foreign Exchange has been set up. The Tribunal has since become fully functional.

ITAT New Benches Created

With the 15 newly created additional Benches of Income Tax Appellate Tribunal (ITAT), the number of Benches has gone up from 38 to 53 Benches.

The Code of Criminal Procedure (Amendment) Act, 2002

The applicant after filing application in a court under Section 125 of the Code of Criminal Procedure, 1973 had to wait for several years for getting relief from the court. Therefore, the need was felt for providing an interim maintenance allowance to the aggrieved person under Section 125 of the Cr. PC. Accordingly, the Act has been amended. The Act seeks:

To bind the courts that Magistrate may order payment of interim maintenance allowance and such expenses of the proceedings to the aggrieved person, wife, children and parents, within 60 days from service of notice during the pendency of divorce or maintenance suits;

It also seeks to remove the ceiling on maintenance allowance that has been pegged at Rs. 500 since 1955;

The quantum of maintenance to be decided by the court looking into the income and assets of the party;

It is intended to impart considerable relief to women, children and old parents in distress, who had earlier to wait for years for interim relief; and

Seeks to provide litigation cost in each case.

Marriage Laws Amendment

Reforms in the Personal laws too attracted the attention of the Government, which required changes with the changing times. The Special Marriage Act, 1954, the Hindu Marriage Act, 1955 and the Parsi Marriage and Divorce Act, 1936 have been amended by the Marriage Laws (Amendment) Act, 2001.

The Act provides for disposal of application for alimony or maintenance and education for children, during the pendency of cases within 60 days from the date of service of notice on the respondent;

It also seeks to provide in each case of maintenance, litigation expenses as well; and

The Act intends to bring succour to women in distress, who had earlier to wait for several years to receive maintenance.

By the Indian Divorce (Amendment) Act, 2001, the Indian Divorce Act, 1869 has been amended. The amendments were made after consultations with the leaders of prominent churches in India and Members of Parliament belonging to Christian community, after taking into account Law Commission’s Report and Judgements of Supreme Court and various High Courts. The Act broadly provides for bringing gender equality between Christian spouses in the matters of grounds of divorce; doing away with the procedural delays in obtaining divorce.

The grounds of dissolution of marriage have further been widened for Christian spouses on the line of the Hindu Marriage Act, 1955 and the Special Marriage Act, 1954;

Mutual consents as a ground for divorce has been incorporated;

Certain provisions omitted to simplify the procedure and obviate delay and consequential hardships to estranged couples by doing away with the requirement of confirmation; and,

Remarriage has been simplified.

Amendment to Indian Succession Act

The Indian Succession Act, 1925 was aimed at consolidating the Indian law relating to testamentary and intestate succession.

The Indian Succession (Amendment) Act, 2002 entitles Christian widow to succeed to her distributive share in the property of her deceased husband, notwithstanding any contract to the contrary. This also puts an end to discrimination against Christian widow.

Advocates Welfare Fund Act, 2001

The need was felt to bring about a Central legislation to constitute an Advocates Welfare Fund. Thus, the Advocates Welfare Fund Act, 2001 has been enacted. The Delhi Bar Council has become the first in the country to launch the Welfare Fund under this Act. The Fund proposes:

To provide social security in the form of financial assistance to junior lawyers and welfare scheme for indigent or disabled advocates;

To provide ex-gratia grant to the family members in case of death of a member and for medical and education facilities for the members and their dependants;

To provide money for purchase of books and for common facilities for advocates;

The fund to be composed of contributions by State Bar Councils, voluntary donations or contributions by the Bar Council of India, advocates associations; individuals, grants made by State or Centre and the money collected from sales of Advocates Welfare Fund Stamps; and

The income accrued to the Fund is exempted from income tax.

Registration and Other Related (Amendment) Act, 2000

The Act seeks to amend the Registration Act, 1908, the Transfer of Property Act, 1882 and the India Stamp Act, 1899.

The Act seeks to make affixing of the photographs and fingerprints on the documents compulsory at the time of property registration;

It provides for computerisation of registration of records by the State Governments; and

It also seeks to avert a lot of mischief and malpractices in the enforcement of these laws.

Review of Working of Constitution

The National Commission to Review the Working of the Constitution, which was appointed by the Government on February 22, 2000 under the Chairmanship of Justice M.N. Venkatachalaiah, a retired Chief Justice of India, in keeping with the National Agenda of Governance of the NDA Government, submitted its report to the Government in March 31, 2002. The Commission has suggested enlargement of the scope of Fundamental Rights, Fundamental Duties and amendments in other provisions to accelerate socio-economic development of the people without tampering with the basic structure of the Constitution. The Report is under the active consideration of the Government. Work has already been initiated by calling an all-party meeting for setting up of a National Judicial Commission. Besides, report of the Commission has been forwarded to Ministries/Departments and State governments to implement its recommendations.

Electoral Reforms

The Government has taken various steps to bring about electoral reforms. The steps taken are:

Freeze in the increase of the total number of the Parliamentary (Lok Sabha) and State legislative Assembly Constituencies upto the year 2026. This was achieved by the Constitution (Eighty-fourth Amendment) Act, 2001; and

The freeze in the increase of the total number of Parliamentary and State Legislative Assembly constituencies has been taken as a motivational measure to States to pursue fearlessly the agenda for population stabilisation.

The Delimitation Act, 2002

The Delimitation Act, 2002 has been enacted to constitute a Delimitation Commission to give effect to the Constitution (84^th Amendment) Act, 2001.

The main task of the Commission is to readjust the division of territorial constituencies of the seats in the House of the People allocated to each State and to readjust the division of territorial constituencies of the total number of seats in the Legislative Assembly of each State on the basis of 1971 census; and the seats revised for Scheduled Castes and Scheduled Tribes to be refixed on the basis of census of 1991.

A Delimitation Commission, headed by Shri Justice Kuldeep Singh, a retired judge of the Supreme Court with the Election Commissioner Shri B.B. Tandon and Election Commissioner of the State concerned as Members of the Commission has been constituted. The Commission will finish its tasks within two years before the next general elections to the Lok Sabha in 2004.

The Representation of the People (Amendment) Bill, 2001

This Bill now before the Department related Parliamentary Standing Committee on Home Affairs, seeks to make provisions for doing away with the requirement of residence in a State or Union Territory for contesting elections to the Council of States (Rajya Sabha) from the State or Union Territory; the Bill also provides for introduction of the system of open ballot, instead of secret ballot for elections to the Rajya Sabha; this is intended to evolve transparency and openness in the elections to the Rajya Sabha; and, the Bill seeks to do away with secret ballot in order to stop malpractices inherent in the existing system.

State Funding of Elections

The Elections and Other Laws (Amendment) Bill, 2002, seeks to amend the Representation of the People Act, 1951 for State funding to the political parties.

It intends to eliminate the influence of money power and black money in elections and raising of funds in the name of elections by the parties and their leaders.

It seeks to allow companies, other than Government companies defined under the Companies Act, 1956, to make donations to political parties,

It also permits donations by any person.

It prohibits donations from foreign sources within the meaning of the Foreign Contributions (Regulation) Act, 1976.

It also prohibits donation from the Government company, local authority and every artificial juridical person wholly or partially funded by the Government.

It seeks to raise limit of voluntary contributions in cash taken by a political party from Rs. 10,000 to Rs. 20,000 under Section 13A of the Income Tax Act, 1961.

It seeks to retain the existing provision on donation by a company under Section 293 of the Companies Act, 1956 in any financial year, any amount not exceeding Rs. 50,000 or 5 per cent of its average net profits during the three preceding financial years.

It provides for rebate to companies in income-tax for the amount contributed directly or indirectly to a political party or for political purpose. Similar tax relief is allowed to individuals, Hindu Undivided Families and certain other entities or juridical persons.

It enjoins treasurers of political parties to submit reports of donations to the Election Commission. Failure to do so will render political parties ineligible for tax relief under the Income Tax Act, 1961.

It requires accounts of donations to be audited by an auditor approved by the Comptroller and Auditor General of India once in a financial year to determine the admissible expenditure.

Such accounts, as audited, will be laid on the Table of booth the Houses of Parliament.

The Election Commission will allocate broadcast timings on electronic media and cable TV channels to political parties on the basis of their past performance, which shall be binding.

It provides for free supply of copies of electoral rolls and identity slips of electors to the candidates and such other materials as may be prescribed.

Expenditure incurred by the leaders of political parties on general party campaign on account of travel by air or otherwise will not form part of the expenditure in connection with elections incurred or authorised by candidates of political parties or their election agents.

Respective laws relating to cable operators and other service providers in the private sector are proposed to be amended to make Code of Conduct to be observed by them as part of the licensing conditions.

Electronic Voting Machines

The Government has approved purchase of Electronic Voting Machines (EVMs) under a perspective plan by the end of financial year 2003-2004 to enable the Election Commission of India to have a total of 10 lakh EVMs till then.

At present, the Election Commission has 2,83,000 EVMs.

Its projected target is to procure upto 10 lakh EVMs including the existing ones. This also includes 25 per cent reserves.

The procurement of targeted EVMs will enable the Election Commission to conduct elections hassle-free, check electoral malpractices, effect economy in expenditure and announce results quickly.

In addition, the Election Laws (Amendment) Bill, 1999, providing for proxy voting for members of Armed Forces is before Parliament.

The Representation of the People (Amendment) Ordinance was promulgated on August 24, 2002 to get over the difficulties created by the Supreme Court judgement of May 2, 2002 and to nullify the consequential orders of June 28, 2002 issued by the Election Commission to implement that judgement.

Amendments in nomination forms 2 A and 2E appended to the Conduct of Elections Rules, 1961 were notified on September 3, 2002, requiring contestant to the Union Legislature or State Legislature to furnish information of his conviction, if any, under Section 8 of the Representation of the People Act, 1951.

Under the Ordinance, a candidate will be requested to furnish information of his being accused of any offence punishable for two years or more.

Besides, candidates furnishing false information before the Returning Officer shall be liable for similar consequences for giving false or concealing information.

An elected candidate will declare his assets and liabilities before the Presiding Officer of the House concerned.

After these electoral reform laws are enacted, they would bring about a considerable improvement in the electoral system in the form of transparency and reduction of corrupt practices in the electoral system to make our polity a meaningful one at the very grassroots of Indian democracy. The National Commission to Review the Working of the Constitution has made several recommendations to this effect, which are under the active consideration of the Government.

Proxy Voting Rights to Armed Forces Personnel

Parliament gave its approval to a bill to allow the members of the Armed Forces and Paramilitary Forces to have an additional option to vote by proxy. Earlier, they had option to vote either in person, or through postal ballots.

Reservation for Women in Legislatures

The Constitution (Eighty-fifth Amendment) Bill, 1999, seeking to provide nearly one-third of the seats for women in the House of the People and Legislative Assemblies of States, was introduced in the Lok Sabha on December 23, 1999.

MINES

The functions of the Department of Mines may be broadly categorised as (i) laying down the policy framework and facilitation for development of mining; (ii) survey and exploration of minerals through the Geological Survey of India (GSI) and exploration by Mineral Exploration Corporation Limited (MECL); (iii) regulation of mining activities through the Indian Bureau of Mines (IBM); and (iv) Extraction of non-ferrous metals and their down-stream products. Significant achievements have been recorded in last five years in all these areas. Besides, in line with the Government decision to disinvest control in non-strategic public sector undertakings, the Department has facilitated implementation of the Government Policy in letter and spirit, in respect of the Public Sector Undertakings under its administrative control.

Mining Law and Policy

The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) was amended in December, 1999, and rules framed thereunder were amended thereafter, to make the statutory provisions at par with best international practices, and make them investor friendly.

Mineral Advisory Council Meets

Mineral Advisory Council in its 27^th meeting in September, 2002 discussed at length the issues pertaining mineral policy and legislation, United Nations Framework clarification of Indian Mineral Resources, environment and forest related issues and illegal mining. MCR, 1960 has been amended suitably in line with the decisions taken at the meeting.

State Ministers’ Conference

A Conference of State Ministers of Mining and Geology was held in January, 2003 to discuss issues like mine closure and rehabilitation of mineral area prescribing minimum size of mineral loss, environment and forest clearance, involvement of panchayats in mining approval and other important issues.

Salient Features of the Amendments Since 1999

Salient features of the amendments since 1999 include: introduction of a concept of reconnaissance operations, which primarily involve preliminary prospecting of mineral(s) through regional, aerial, geophysical or geothermal surveys and geological mappings.

Reconnaissance permit holders will enjoy preferential right for grant of prospecting license. Further, area restrictions for all will apply State-wise.

Mineral limestone has been deleted from the first schedule to the Act. For only ten non-fuel and non-atomic minerals, namely asbestos, bauxite, chrome ore, copper, gold, iron ore, lead, manganese ore, precious stone and zinc, permission of the Central Government is required for grant of mining lease.

For all non-fuel and non-atomic minerals, the State governments have been delegated powers to grant mineral concessions even for areas, which are not compact or contiguous, transfer-mining leases, amalgamate mining leases and renew mining leases, without any reference to the Central Government. State governments have been empowered to frame rules to check illegal mining.

A multi-disciplinary Committee was appointed to study in detail the entire taxation regime for the mineral sector and suggest an appropriate tax structure. The Committee submitted its report to the Government in July, 2000. It was accepted and the recommendations were forwarded to the Ministry of Finance.

A study group was set up on May 22, 2002 to revise royalty rates for major minerals (excluding coal lignite and sand for stowing). Royalty rates for these minerals, which were, last notified on September 12, 2000 and may be enhanced on or after September 11, 2003.

A Group on Marble Development was constituted in September, 1999 to suggest appropriate measures to overcome the bottlenecks affecting this industry. This Group is working under the Granite Development Council and has held three meetings.

Granite Conservation and Development Rules were notified on June 1, 1999 to ensure conservation and systematic /scientific mining of granite resources.

Offshore Areas Mineral (Development & Regulation) Act, 2002

Offshore area (Development & Regulation) Act 2002 provides for development and regulation of mineral resources in the territorial waters, continental shelf and the exclusive economic zone.

Geological Survey of India

Geological Survey of India (GSI) continued its programme of survey and mapping.

Incidence of Platinum has been reported for the first time in Sakoli Fold Belt, Maharashtra.

Integrated studies have led to the identification of 32 micro diamonds in stream sediments around Pavagarh area, Tumkur District, Karnataka, indicating possibilities of a good prospect.

Gold and copper mineralised zones have been intersected in Dhani-Barsi area, Dosa District, Rajasthan, warranting further studies.

Micro-seismic and damage surveys have been carried out in areas affected by the devastating Bhuj earthquake.

An expert committee has been set up by the Department of Mines to examine and recommend suitable changes in the charter of GSI through an assessment of the role and functions of GSI in the light of developments in the field of earth sciences over the last 30 years.

Survey and Mapping

GSI has covered 26,422 sq. kilometres under specialised thematic mapping in different parts of the country and 49,993 sq. kms under multisensor/ aerogeophyscial surveys in Andhra Pradesh, Karnataka, Uttar Pradesh and Madhya Pradesh. It covered, under marine surveys, mapping of 26,058 sq. kms in territorial waters and 83,442 sq. kms in exclusive economic zones. GSI has completed integrated national resource surveys on cadastral map level in respect of 486 villages in Assam, Meghalaya and Tripura States. It also covered 50 villages in Beed district, Maharashtra.

Mineral Exploration

Nearly 223,362 tonnes of gold ore in Dugocha main block, Udaipur district, Rajasthan has been explored following GSI investigations. Gold zones have also been detected in Dhani-Basi area of Dausa district, and Delwara block, Banswara district of Rajasthan. Besides, gold reserves have been spotted in Dona Sector, Kurnool district in Andhra Pradesh and in Jharkand. Manganese ore was found in Bolangir and Sundaragarh districts in Orissa. About 440 million tonnes of all grades of limestone was explored in Litang river valley, Jaintia Hills district, Meghalaya. Nearly 23.23 million tonnes of clay was found in Kasargod district, Kerala.

Diamond prospecting has shown good prospect in Pavagada area Tumkur district, Karnataka, indication in Wairagarh area, Godchiroli district, Maharashtra, an olivine lamproite body, located near Sakri village in Bargarh district of Orissa and two small lamproite bodies located in parts of Krishna, Khammam and Nalgonda districts, Andhra Pradesh. Platinum was recently detected for the first time in Sakoli Fold Belt, Maharashtra.

Besides, 1,239 million tonnes of coal was explored in Sohagpur coalfield, M.P.; Mand-Raigarh coalfield and Tatapani-Ramkola coalfields, Chhattisgarh, Talcher coalfield, Orissa and Wardha valley coalfield, Maharashtra. Search for lignite has been established. Sixty four million tonnes of lignite in west coat lignite field and new areas of occurrence of shallow level lignite have been identified in Tamil Nadu.

The GSI undertook specialised investigations in the field of geotechnical studies for providing support to multi-purpose water resource development projects, communication projects involving roads, railway lines, bridges and tunnels (29 projects), Earthquake Geology and Seismology Studies (11 items), environmental studies, public health hazards studies and landslide studies (50 items) in different States. The GSI also participated in the 22nd Antarctica Expedition.

Mineral Exploration Corporation Ltd. (MECL)

The basic aim of MECL is to bridge the gap between preliminary exploration of mineral prospect and its commercial exploitation. The company is expanding and strengthening the diversification programmes for generation of additional revenue to compensate for the reduction from its core activities. It is also trying to obtain Prospecting License (PL) and Mining Lease (ML) for different minerals for value addition. During the last five years, MECL carried out 825 sq.kms. of geological mapping. 140 exploration reports were submitted, which include geophysical, remote sensing and environmental studies. 6,48,879 m of drilling was achieved with 274 m per drill per month productivity. Mining performance stood at 20,275 m. The performance of MECL during last five years has shown a marked improvement and losses have been reduced substantially.

National Aluminium Company Limited (NALCO)

National Aluminium Company Ltd. had launched an ambitious project for the expansion of bauxite mines, alumina refinery and aluminium smelter involving investment of Rs.4,000 crore (approx.). The expansion of bauxite mines and alumina refinery at Damanjodi had been completed. The expansion of Aluminium smelter at Angul, Orissa is at an advance stage of completion.

The Government on September 27, 2001 had approved an open market sale of 30 per cent equity in NALCO, in domestic and international markets followed by strategic sale of 29.15 per cent after reserving 2 per cent equity for employees of NALCO. The Government on July 7, 2002 has also approved the commencement of the process of strategic sale of NALCO. Action has been initiated by the Ministry of Disinvestment for implementing the Government’s decision.

The third stream of alumina refinery of National Aluminium Company Limited (NALCO) was commissioned during December, 2001. As a result, the capacity of alumina refinery increased from 10, 50,000 tonnes per annum (tpa) to 15,75,000 tpa. After expansion, NALCO becomes the largest alumina producer in Asia.

Indian Bureau of Mines (IBM)

Indian Bureau of Mines (IBM), established in 1948, is engaged in promotion of conservation and scientific development of mineral resources. During the last five years it has inspected 9,072 mines for enforcing provisions of MCDR, took up 48 geological and special studies, approved 2,188 mining plans and 723 mining schemes. It has pointed out 10,363 cases of violations in 4,754 mines and rectified 4,003 cases. It has launched 507 prosecution cases and took up 1.6 lakh chemical analysis and 7,975 mineralogical studies.

DISINVESTMENT

Bharat Aluminium Company Limited (BALCO)

The Government decision regarding disinvestment in Bharat Aluminium Company Ltd. (BALCO) has been implemented. The Government has disinvested 51 per cent of its equity in BALCO, along with transfer of management, in favour of M/s Sterlite Industries (India) Ltd. w.e.f. March 2, 2001. The Government received Rs.551.5 crore from the transaction.

Hindustan Zinc Limited (HZL)

The Government’s decision regarding disinvestment in Hindustan Zinc Limited (HZL) has been implemented. The Government has disinvested 26 per cent of its equity in HZL, along with transfer of management in favour of strategic partner i.e. M/s Sterlite opportunities and venture Limited w.e.f. April 11, 2002. The Government received Rs.445 crore from the transaction.

Hindustan Copper Ltd. (HCL)

To mitigate the financial hardships of the Hindustan Copper Ltd. (HCL), the Government has restructured the financial base of the Company. The Government has also decided to support the Voluntary Retirement Scheme of the company to enable it to reduce its surplus manpower. The financial restructuring would result in an outgo of Rs. 190 crore, besides waiver of outstanding loan/interest etc.

Foreign Direct Investment (FDI)

In line with National Mineral Policy, the Government has reviewed the existing FDI Policy and has approved with effect from February 11, 2000, foreign equity holding upto 100 per cent, on the automatic route for all minerals (except diamonds and precious stones). This covers exploration, mining, mineral processing and metallurgy. In the case of diamonds and precious stones, foreign equity upto 74 per cent will be allowed on the automatic route for both exploration and mining operations. For proposals seeking higher than 74 per cent foreign equity, the cases will have to come to the Foreign Investment Promotion Board (FIPB) for approval, which will consider the proposals on case-to-case basis. There will be no requirement of NoC from an existing joint venture partner. The prospective investor will only have to give a declaration that he has no existing joint venture for the same area and/or the particular mineral.

The FIPB has so far approved 72 applications for FDI in the mining sector amounting to about Rs 4,018 crore. These proposals are mainly in the fields of mining, exploration, mineral processing and technical consultancy. The proposals cleared include 13 from Australia, 9 from U.K., 9 from U.S.A., 8 from South Africa, 6 from Canada, 4 from Netherlands, 3 from Mauritius, 2 each from Korea, Malaysia, Norway, Singapore, Sweden, the balance being 1 proposal each from other countries.

Other Events

The Ministry coordinated relief works in super cyclone affected areas in Orissa through HZL and NALCO. It participated in relief work in earthquake affected areas of Gujarat. NALCO, HZL and GSI sent men and material and employees of the PSUs and the Ministry contributed Rs.110 lakh to PM’s National Relief Fund.

NON-CONVENTIONAL ENERGY SOURCES

India is today at the forefront of an international effort to harness renewable energy resources. It has one of the largest and most broad-based programmes. Over 3,600 MW of power generating capacity based on renewable energy sources has already been installed. This is over 3.5 per cent of the total installed capacity in the country. With a wind power capacity of over 17OO MW, India ranks fifth in the world.

New Goals by 2012

The Government has set up following goals to be achieved in the next 10 years:

To electrify 18,000 unelectrified rural and remote villages; and,

To produce additional 10,000 MW grid-quality power through non-conventional energy sources.

Biogas Development Programme

More than 7.50 lakh biogas units have been built. A special incentive package has been announced for the states in North-Eastern Region.

During the last five years, about 1,525 large size biogas plants were installed. A new initiative is aimed to involve Animal Welfare Board of India for promoting institutional biogas plants in cattle based animal welfare organisations.

Rural Energy Entrepreneurship and Institutional Development

A pilot scheme entitled ‘Rural Energy Entrepreneurship and Institutional Development’ was started. The objective is to promote small enterprises for quality installation and servicing of rural energy systems.

Women’s Empowerment

The ‘Women and Renewable Energy Development’ programme was started to train and empower women in the promotion, marketing, utilisation and management of renewable energy system and devices. In all, 125 sales and servicing outlets and 150 renewable energy women self-help groups have been sanctioned.

Solar Photovoltaic Demonstration and Utilisation Programme

Out of an estimated 18,000 unelectrified remote and difficult villages in the country, a majority of villages are likely to be electrified with solar photovoltaic systems and power plants.

More than 1,77,000 solar lanterns, more than 1,10,000 home lighting systems, over 5,500 street lighting systems and nearly 300 KW capacity power plants have been set up.

Solar Cooker and Aditya Solar Shop Programmes

The solar cooker programme has been expanded by introducing new designs for community use. Three solar steam cooking systems based on automatic tracking concentrating collective technology for cooking food for 600-3,000 people per day, and one system based on ‘Solar Bowl’ technology, have been installed. World’s largest solar steam cooking system has been installed at Tirumala Tirupati. The system is designed to cook two meals for 15,000 persons in one day. Another system for 2,000 people was erected at Brahmakumaris Ashram in Gurgaon in July, 2002. Three community cookers for indoor cooking have been installed at a training hostel and an NGO’s establishment in Leh. In all, six such systems have been installed under the MNES demonstration scheme. A total of 500 dish solar cookers and 60 community solar cookers have been installed so far.

Solar Thermal Energy Programme

A number of solar buildings have been constructed in different climatic zones of the country. These include West Bengal Rural Energy Development agency building at Kolkata, first phase of the Energy Centre Building of Devi Ahilya University, Indore and State Bank of Patiala Building at Shimla.

Wind Power

Wind power capacity, which stood at 66.8 MW during 1997-98, has been enhanced to 1,702.3 MW now.

Around five billion units of electricity were generated from wind power projects taking the cumulative generation to over 10.5 billion units.

The wind turbine test station at Kayathar was dedicated to the nation by the Prime Minister and the Centre for Wind Energy Technology (C-WET) was also dedicated to the nation.

The testing of wind turbines started for the first time not only in India but too in Asia. Two wind turbines were tested at Kayathar in Tamil Nadu.

The first phase (100 KW) of Wind Diesel Hybrid Demonstration project of 500 KW for Sagar Islands in West Bengal has been commissioned. The second phase of the project is now in progress.

Solar Power

Fourteen grid interactive Solar Photo Voltaic power projects, aggregating to 1,100 KW capacity, have been installed in Andhra Pradesh, Chandigarh, Kerala, Lakshadweep, Punjab, Uttar Pradesh, West Bengal and Andaman & Nicobar Islands.

The Cabinet Committee on Economic Affairs has given approval for undertaking a 140 MW Integrated Solar Combined Cycle Power Project at Mathania, Jodhpur, Rajasthan, as a Centrally assisted project.

The Ministry has prepared a Draft renewable energy policy.

Biomass Power/Cogeneration

Biomass Power/cogeneration which stood at 41.50 MW during 1997-98 stands at 86.63 MW.

Small Hydro Power

The mandate of Ministry to deal with small hydro power projects was increased from up to 3 MW station capacity to 25 MW. A capacity addition of about 253 MW was achieved.

National Programme on Energy Recovery from Urban and Industrial Wastes

The programme is being implemented through State nodal agencies, Government Departments, and urban local bodies. The scheme is applicable to both private and public sector entrepreneurs. The projects are allotted on the basis of Build, Own, Operate and Transfer, Build Operate and Transfer, Build, Own and Operate and Build Operate Lease and Transfer. Waste from slaughterhouses, sugar distilleries, paper industry, starch & sago Industry are converted in to energy. From inception in 1996-97 twenty projects producing 24.50 MW equivalent have been set up. During the past five years, 15 projects producing 19.70 MW equivalent have been set up.

Website Launched

The Ministry of Non-Conventional Energy Sources launched its website, which provides information on fiscal and financial incentives and implementation details of various programmes of the Ministry.

NORTH EAST REGION

The development of North East Region is one of the priority areas for the Government. The Prime Minister announced a 28-point agenda on January 22, 2000 at Shillong for the all-round development of the area. The agenda covers 28 programmes/schemes relating to the development of the power sector; border trade; horticulture; rural infrastructure; roads and air links; medical and health services; industrial training institutes; information technology; border fencing; and upgradation of police infrastructure.

The Government of India launched a major initiative in this area in September 2001 when the Department of Development of North Eastern Region (DONER) was established. A provision of 10 per cent of the budget of each Ministry, except the exempted ones, has been earmarked every year, for expenditure in the region. The Department acts as a catalyst in stimulating the development process and focus on increasing opportunities for productive employment, strengthening infrastructure, particularly connectivity and communication, together with ensuring accountability in the implementation of projects. It is also envisaged to create synergy and ensure convergence of programmes by coordinating the efforts of both Central agencies and State governments.

Important Initiatives for Development of the Region

Following important initiatives for development of the region were taken:

Funding for augmentation of facilities at 12 existing airports to improve region’s air connectivity;

Provisioning for four 50-seater aircrafts in the region;

487 block level Community Information Centres (CICs) have been planned to connect the region via v-sat with the rest of the world. Of these CICs, 475 are functional;

The towns and cities of Itanagar, Tinsukhia, Dimapur, Shillong, Silchar and Guwahati have been connected to Kolkata by Optical Fibre Cable network. Out of 450 kms extension planned this year, 300 kms has already been completed;

Conversion work to broad gauge has been taken up from December 2002 in New Jalpaiguri to New Bongaigaon section;

The Prime Minister laid the foundation stone for Bogibeel Bridge over river Brahmaputra near Dibrugarh on April 21, 2002 (Project cost Rs. 1,771.26 crore);

Rail link between Kumarghat and Manu in Tripura has been made operational;

Work at Naga hospital resumed at the intervention of DONER;

Negotiations have been started with private hospitals for operationalisation of Dimapur referral hospital; and

Environmental clearance has been expedited for Myntdu-Leshka HEP Meghalaya.

Initiatives in Capacity Building

Training programme has been arranged through Tata Energy Research Institute (TERI) on energy efficient buildings, solid waste disposal, plant tissue culture, environment-related health hazards and sustainable development of power sector.

Indian Institute of Management (IIM), Kolkata has been focusing on project planning and evaluation.

National Informatics Centres (NIC) on Information Technology are being arranged for all the North-Eastern States.

Arrangements have been put in place, whereby officers from North East can attend the standard training courses in the following institutes. DONER will reimburse all costs:

National Institute of Training for Highway Engineers, Noida;

Central Institute of Road Transport, Pune;

Indian Institute of Tourism and Travel, Guwahati/Bhubaneshwar; and

National Institute of Health & Family Welfare, New Delhi.

Creating conducive business environment

A workshop of international aid agencies has been organised to facilitate external fund mobilisation in February, 2002.

In May, 2002, a regional conference on business opportunities in North-East was organised through North Eastern Development Finance Corporation (NEDFI).

The first North-East Business Summit was organised at Mumbai in July, 2002 to facilitate an interface with industry and to attract investment. This summit is to become an annual feature.

Several Entrepreneurship Development Programmes were organised through NEDFI in North-East States.

CII has already opened its regional offices in the region.

Project Monitoring

Rigorous monitoring is being done through Quarterly Progress Reports and funds are released only after certified utilisation of earlier releases.

Each State’s projects are reviewed with the State authorities periodically. Quarterly review is being done with Development Commissioners. Priorities have been clarified.

States have been advised to monitor the projects on ground and submit reports.

To increase transparency, States have been advised to publicise details of projects.

Officials of DONER have commenced field inspections of projects. Over 100 projects have been inspected during the last nine months and corrective measures have been suggested to the States.

States are being visited at least once in two months.

Area Officers have been earmarked for each State.

CAG has been requested to undertake audit of 25 flood control projects and four other major projects during the course of implementation itself.

Steps have been initiated to engage independent agencies for evaluating the projects and their implementation under Non Lapsable Central Pool of Resources (NLCPR).

Inspection of NEC road projects by outside agencies has been initiated.

OCEAN DEVELOPMENT

The world’s first 1-MW floating ocean thermal energy conversion plant is awaiting a trial run. To become operational soon at Tuticorin, off the coast of Tamil Nadu, this demonstration project will help in perfecting such a plant on a bigger scale to tap India’s vast potential in ocean thermal energy.

The vision document on Ocean Development, 2015 envisages to reap socio-economic benefits to the coastal population on a sustainable basis. Understanding the influence of the ocean on our monsoon, enhancing our weather forecasting capacity, developing reliable and environmentally safe deep-sea technology are other objectives

World’s first mobile seabed mining system has been developed and perfected. This will help in extracting ploy-metallic nodules from the seabed, which are rich in high value metals like cobalt, nickel, copper and manganese.

A massive one-time exercise has been taken up, to have India’s seabed boundary established under the delimitation of the continental shelf. Under it, India can stake claim to lakhs of square miles of more seabed area, which can be used for oil exploration, seabed mining and fishing.

The national project on drugs from sea has made considerable progress with promising leads relating to development of anti-diabetic, anti-diahorreal, anti-cholesterol, larvicidal and anti-anxiety drugs.

PARLIAMENTARY AFFAIRS

Bills passed by Both Houses of Parliament during April 1 to December 12, 1998

The National Institute of Pharmaceutical Education and Research Act, 1998.

The Export-Import Bank of India (Amendment) Act, 1998.
The Customs (Amendment) Act, 1998.
The Lotteries (Regulation) Act, 1998.
The Interest on Delayed Payment to Small Scale and Ancilliary Industrial Undertakings (Amendment) Act, 1998.
The Employees Provident Fund and Miscellaneous Provisions (Amendment) Act, 1998.
The Payment of Gratuity (Amendment) Act, 1998.
The Beedi Workers Welfare Cess (Amendment) Act, 1998.
The Representation of the People (Amendment) Act, 1998.
The Leaders and Chief Whips of Recognised Parties and Groups in Parliament (Facilities) Act, 1998.
The Oilfields (Regulation and Development) (Amendment) Act, 1998
The Electricity Regulatory Commissions Act, 1998.
The Electricity Laws (Amendment) Act, 1998.
The Merchant Shipping (Amendment) Act, 1998.
The Cotton Ginning and Pressing Factories (Repeal) Act, 1998.

Bills passed by both Houses of Parliament during 1999

The Constitution (Eighty fourth Amendment) Bill, 1999.
The Income Tax (Amendment) Bill, 1999.
The Contingency Fund of India (Amendment) Bill, 1999.
The Representation of the People (Amendment) Bill, 1999.

Winter Session – 1999

The Securities Laws (Amd.) Bill, 1999.
The Securities Laws (2^nd Amd.) Bill, 1999.
The Insurance Regulatory land Development Authority Bill, 1999.
The Foreign Exchange Management Bill, 1999.
The Mines & Minerals (Regulation & Development) Amendment Bill, 1999.
The Indian Majority (Amd.) Bill, 1999.
The Administrators General (Amd.) Bill, 1999.
The Notaries (Amd.), Bill, 1999.
The Special Protection Group (Amd.), Bill, 1999.
The Appropriation (No. 4) Bill, 1999.
The Central Industrial Security Force (Amendment and Validation Bill, 1999.
The Marriage Laws (Amd.), Bill, 1999.
The Appropriation (Railways), No. 4 Bill, 1999.
The Code of Civil Procedure (Amd.), Bill, 1999.
The Copyright (Amd.), Bill, 1999.
The Trade Marks Bill, 1999.
The Geographical Indications of Goods (Registration & Protection), Bill, 1999.
The Vice President’s Pension (Amd.) Bill, 1999.
The National Trust for Welfare of Persons with Autism Cerebral Palsy, Mental Retardation and Multiple Disabilities Bill, 1999.

Bills passed by both Houses of Parliament during Budget Session, 2000

The Small Industries Development Bank of India (Amendment) Bill, 2000.
The Telecom Regulatory Authority of India (Amendment), Bill, 2000.
The Recovery of Debts due to Banks and Financial Institutions (Amendment) Bill, 2000.
The Appropriation (Railways) Vote on Account Bill, 2000.
The Appropriations (Railways), Bill, 2000.
The Appropriation (Vote on Account) Bill, 2000.
The Appropriation Bill, 2000.
The Mizoram University Bill, 2000.
The Designs Bill, 2000.
The Appropriation (Railways) No. 2 Bill, 2000.
The Appropriation (No. 2), Bill, 2000.
The Food Corporations (Amendment) Bill, 2000.
The Sugarcane Controls (Additional Powers) Repeal Bill, 2000.
The Finance Bill, 2000.
The National Housing bank (Amendment ) Bill, 2000.
The President’s Emoluments and Pension (Amd.) Bill, 2000.
The Constitution (89^th Amendment) Bill, 2000.
The Constitution (90^th Amendment) Bill, 2000.
The Information Technology Bill, 2000.
The Salary, Allowances and Pension of Members of Parliament (Amd.) Bill, 2000.
The Leaders and Chief Whips of Recognised Parties and Groups (Facilities) Amendment Bill, 2000.

*22. The Cotton Textiles Cess (Repeal) Bill, 2000.*23. The Direct Tax Laws (Miscellaneous) Repeal Bill, 2000.24. The Major Port Trusts (Amendment) Bill, 2000.*Being Money Bills, they will be deemed to have been passed by Houses of Parliament on expiry of 14 days from the date of receipt of their messages in Rajya Sabha in terms of Article 109(5) of the Constitution.Bills passed by both Houses during Monsoon Session, 2000

The Cotton Cloth (Repeal) Bill, 2000.
The Insecticides (Amendment Bill, 2000.
The Indian Companies (Foreign Interests) and the Companies (Temporary Restrictions on Dividends) Repeal Bill, 2000.
The Motor Vehicles (Amendment) Bill, 2000.
The Iron and Steel Companies (Amalgamation and Takeover laws) Repeal Bill, 2000.
The Madhya Pradesh Reorganisation Bill, 2000.
The Uttar Pradesh Reorganisation Bill, 2000.
The Bihar Reorganisation Bill, 2000.
The AIIMS (Amd.) Bill, 2000.
The Army & Air Force (Disposal of Private Property) Amd. Bill, 2000.
The Indian Power Alcohol (Repeal) Bill, 2000.
The Chemical Weapons Convention Bill, 2000.
The Semiconductor Integrated Circuits Layout Design Bill, 2000.
The Border Security Force (Amd.) Bill, 2000.
The Cable Television Networks (Regulation) Amd. Bill, 2000.
The State Financial Corporations (Amd.) Bill, 2000.
The Constitution (86^th Amendment) Bill 2000.
The Constitution (88^th Amendment) Bill, 2000.
The Appropriation No. 3 Bill, 2000.
The Appropriation No.4 Bill, 2000.
The Rehabilitation Council of India (Amd.) Bill, 2000.
The Appropriation (Railways) No. 3 Bill, 2000.
The Appropriation (Railways) No. 4 Bill, 2000.

Bills passed by both Houses of Parliament during Winter Session – 2000

The Protection of Human Rights (Amendment) Bill, 2000.
The Punjab Municipal Corporation Law (Extension to Chandigarh) Amendment Bill, 2000.
The Multi-Model Transportation of Goods (Amendment)Bill, 2000.
The Workmen’s Compensation (Amendment) Bill, 2000.
The Forfeiture (Repeal) Bill, 2000.
The Passport (Entry into India) (Amendment) Bill, 2000.
The Aircraft (Amendment) Bill, 2000.
The Coal India (Regulation of Transfers & Validation), Bill 2000.
The Immigration (Carriers Liability) Bill, 2000.
The Companies (Amendment) Bill, 2000.
The Central Road Funds Bill, 2000.
The National Bank for Agriculture and Rural Development (Amendment) Bill, 2000.
The Juvenile Justice (Care and Protection of Children) Bill, 2000.
The Appropriation (No. 5) Bill, 2000.
The Taxation Laws (Amendment) Bill, 2000.
The Appropriation (Railways) No. 5 Bill, 2000.

Bills passed by both Houses during Budget Session, 2001

The Chit Funds (Amendment) Bill, 2001
The Narcotic Drugs and Psychotropic Substances (Amendment) Bill, 2001
The Taxation Laws (Amendment) Bill, 2001.
The Appropriation (Railways) Vote on Account Bill, 2001.
The Appropriation (Railways) Bill, 2001.
The Appropriation (Vote on Account) Bill, 2001.
The Appropriation Bill, 2001.
The Appropriation (Railways) No. 2 Bill, 2001.
The Colonial Prisoners Removal (Repeal) Bill, 2001.
The Insurance Laws (Transfer of Business and Emergency Provisions) Repeal Bill, 2001.
The Appropriation (No. 2) Bill, 2001.
The Finance Bill, 2001.

Bills passed by both Houses of Parliament during Monsoon Session, 2001

The Vaccination (Repeal) Bill, 2001.
The Post-Graduate Institute of Medical Education & Research, Chandigarh (Amendment) Bill, 2001.
The Industrial Disputes (Banking Companies) Decision (Repeal) Bill, 2001.
The Uttar Pradesh Sugarcane Cess (Validation) Repeal Bill, 2001.
The Hyderabad Exports Duties (Validation) Repeal Bill, 2001.
The Advocates Welfare Fund Bill, 2001.
The Food Corporations (Amendment) Bill, 2001.
The Live-Stock Importation (Amendment) Bill, 2001.
The Indian Universities (Repeal) Bill, 2001.
The Judicial Administration Laws Repeal Bill, 2001.
The Constitution (Ninety-first) Amendment Bill, 2001.
The Indian Railway Companies (Repeal) Bill, 2001.
The Railway Companies (Substitution of Parties in Civil Proceedings) (Repeal) Bill, 2001.
The Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Amendment Bill, 2001.
The Indian Medical Council (Amendment) Bill, 2001.
The Influx from Pakistan (Control) Repealing (Repeal) Bill, 2001.
The Warehousing Corporations (Amendment) Bill, 2001.
The Repealing and Amending Bill, 2001.
The Sugarcane Cess (Validation) Repeal Bill, 2001.
The Auroville (Emergency Provisions) Repeal Bill, 2001.
The Electricity Regulatory Commission (Amendment) Bill, 2001.
The Banking Companies (Legal Practitioners’ Clients Accounts) Repeal Bill, 2001.
The Trade Unions (Amendment) Bill, 2001.
The Government of Union Territories and the Government of National Capital Territory of Delhi (Amendment) Bill, 2001.
The Energy Conservation Bill, 2001.
The Protection of Plant Varieties and Farmer’s Rights Bill, 2001.
The Salary, Allowances and Pension of Members of Parliament (Amendment) Bill, 2001.
The Motor Vehicles (Amendment) Bill, 2001.
The Inland Waterways Authority of India (Amendment) Bill, 2001.
The Marriage Laws (Amendment) Bill, 2001.
The Indian Divorce (Amendment) Bill, 2001.
The Code of Criminal Procedure (Amendment) Bill, 2001.
The Indian Council of World Affairs Bill, 2001.
The Two-Member Constituencies (Abolition) and other Laws Repeal Bill, 2001.
The Registration and Other Related Laws (Amendment) Bill, 2001.
The Salaries and Allowances of Ministers (Amendment) Bill, 2001.
The Central Sales Tax (Amendment) Bill, 2001.
The Manipur Appropriation (Vote on Account) Bill, 2001.
The Appropriation (No. 3) Bill, 2001.

Bills passed by both Houses of Parliament during Winter Session, 20011. The Companies (Amendment) Bill, 2001.

The National Commission for Safai Karamcharis (Amendment) Bill, 2001.
The Explosive Substances (Amendment) Bill, 2001.
The Cine Workers Welfare Fund (Amendment) Bill, 2001.
The Constitution (92^nd Amendment) Bill, 2001.
The Essential Services (Maintenance) Ordinance Repeal Bill, 2001.
The Appropriation (Railways) No.3 Bill, 2001.
The Appropriation (Railways) No.4 Bill, 2001.
The Appropriation (No.4) Bill, 2001.
The Manipur Appropriation Bill, 2001.

Bills passed by both Houses of Parliament during Budget Session, 2002

The Jute Manufacturers Cess (Amendment) Bill, 2002.
The Institutes of Technology (Amendment) Bill, 2002 .
The Passports (Amendment) Bill, 2002.
The Appropriation (Vote on Account) Bill, 2002.
The Appropriation Bill, 2002.
The Appropriation (No.2) Bill, 2002.
The Uttar Pradesh Appropriation (Vote on Account) Bill, 2002.
The Uttar Pradesh Appropriation Bill, 2002.
The Appropriation (Railways) Vote on Account Bill, 2002.
The Appropriation (Railways) Bill, 2002.
The Prevention of Terrorism Bill, 2002 passed in Joint Sitting of Parliament held on March 26, 2002.
The Finance Bill, 2002.
The Appropriation (No.2) Bill, 2002.
The Appropriation (No.3) Bill, 2002.
The Constitution (Scheduled Castes and Scheduled Tribes) Orders (Amendment) Bill, 2002.
The Constitution (Scheduled Castes) Orders (Amendment) Bill, 2002.
The Multi-State Water Disputes (Amendment) Bill, 2002.
The Inter-State Water Disputes (Amendment) Bill, 2002 .
The Tea Districts Emigrant Labour (Repeal) Bill, 2002 .
The Indian Succession (Amendment) Bill, 2002.
The St. John Ambulance Association (India) Transfer of Funds (Repeal) Bill, 2002.
The All India Institute of Medical Sciences (Amendment) Bill, 2002.
The Patents (Amendment) Bill, 2002.
The Vice-President’s Pension (Amendment) Bill, 2002.
The Salaries and Allowances of Officers of Parliament and Leaders of Opposition in Parliament (Amendment) Bill, 2002.
The Salaries and Allowances of Officers of Parliament (Second Amendment) Bill, 2002.
The Constitution (Ninety-third Amendment) Bill, 2001.
The Delimitation Bill, 2002.
The Sugar Development Fund (Amendment) Bill, 2002.
The Legal Services Authorities (Amendment) Bill, 2002.
The Foreign Aircraft (Exemption from Taxes and Duties on Fuel and Lubricants) Bill, 2002.
The Haj Committee Bill, 2002.
The Code of Civil Procedure (Amendment) Bill, 2002.
The Salary, Allowances and Pension of Members of Parliament (Amendment) Bill, 2002.

Bills passed by both Houses of Parliament during Monsoon Session, 2002

The Delhi Municipal Corporation (Validation of Electricity Tax) Act and Other Laws (Repeal) Bill, 2002.
The Delhi University (Amendment) Bill, 2002.
The Coast Guard (Amendment) Bill, 2002.
The National Cooperative Development Corporation (Amendment) Bill, 2002.
The General Insurance Business (Nationalisation) Amendment Bill, 2002.
The Insurance (Amendment) Bill, 2002.
The Appropriation (No.4) Bill, 2002.
The Appropriation (No.5) Bill, 2002.
The Appropriation (Railways) No.3 Bill, 2002.
The Appropriation (Railways) No.4 Bill, 2002.

Bills passed by Both Houses of Parliament alongwith purport during Winter Session of 2002

The Petroleum (Berar Extension) Repeal Bill, 2002.
The Imperial Library (Indenture Validation) Repeal Bill, 2002.
The Constitution (Scheduled Castes) Order (Second Amendment) Bill, 2002.
The Consumer Protection (Amendment) Bill, 2002.
The Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Bill, 2002.
The Homeopathy Central Council (Amendment) Bill, 2002.
The Indian Medicine Central Council (Amendment) Bill, 2002.
The Salaries and Allowances of Officers Parliament and Leaders of Opposition in Parliament (Second Amendment) Bill, 2002.
The Negotiable Instruments (Amendment and Miscellaneous Provisions) Bill, 2002.
The Constitution (Ninety-third Amendment) Bill, 2002.
The Prevention of Money Laundering Bill, 2002.
The Delhi Metro Railway (Operation and Maintenance Bill, 2002).
The Securities and Exchange Board of India (Amendment) Bill, 2002.
The Unit Trust of India (Transfer of Undertaking and Repeal) Bill, 2002.
The Merchant Shipping (Amendment ) Bill, 2002.
The Mysore State Legislature (Delegation of Powers) Repeal Bill, 2002.
The Prevention of Food Adulteration (Extension to Kohima and Mokokchung Districts) Repeal Bill, 2002.
The Countess of Dufferin’s Fund (Repeal) Bill, 2002.
The Medical Termination of Pregnancy (Amendment) Bill, 2002.
The Refugee Relief Taxes (Abolition) Repeal Bill, 2002.
The Offshore Areas Mineral (Development & Regulation) Bill, 2002.
The Cable Television Networks (Regulation) Amendment Bill, 2002.
The Suppression of Unlawful Acts Against the Safety of Maritime Navigation and Fixed Platforms on Continental Shelf Bill, 2002.
The Biological Diversity Bill, 2002.
The Supreme Court Judges (Salaries and Conditions of Service) Amendment Bill, 2002.
The High Court Judges (Salaries and Conditions of Service) Amendment Bill, 2002.
The North Eastern Council (Amendment) Bill, 2002.
The Appropriation Railways (No.5) Bill, 2002.
The Freedom of Information Bill, 2002.
The Transfer of Property (Amendment) Bill, 2002.
The Indian Evidence (Amendment) Bill, 2002.
The Representation of People (Amendment) Bill, 2002.
The Companies (Amendment) Bill, 2002.
The Companies (Second Amendment) Bill, 2002.
The Appropriation (No.6) Bill, 2002.
The Control of National Highways (Land & Traffic) Bill, 2002.
The Representation of People (Second Amendment) Bill, 2002.
The Scheduled Castes and Scheduled Tribes Orders (Amendment) Bill, 2002
The Competition Bill, 2002.
The Wild-life (Protection) Amendment Bill, 2002).
The Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Amendment Bill, 2002.
The Representation of People (Third amendment) Bill, 2002.

Joint Sitting of the Houses of ParliamentDuring Budget Session, 2002, a Joint Sitting of both Houses of Parliament was convened on March 26, 2002, in Central Hall of Parliament House for the purpose of deliberating and voting on Prevention of Terrorism Bill, 2002. In the joint sitting held on March 26, 2002, the Home Minister moved for consideration of the Prevention of Terrorism Bill, 2002 as passed by Lok Sabha on March 18, 2002 and rejected by Rajya Sabha on March 21, 2002. Members took part in the debate. The Home Minister replied to the debate. The Bill was passed by Division (Ayes: 425, Noes:294)Election of Speaker, Lok SabhaDuring Budget Session, 2002, on May 10, 2002, Shri Manohar Joshi, was elected as “Speaker”. Bills passes by Both Houses of Parliament during first part of Budget Session, 2003

The Banking Service Commission (Repeal) Bill, 2003.
The Water (Prevention and Control of Pollution) Cess (Amendment) Bill, 2003.
The Election Laws (Amendment) Bill, 2003.
The Special Protection Group (Amendment) Bill, 2003.
The Appropriation (Railways) Vote on Account Bill, 2003.
The Appropriation (Railways) Bill, 2003.
The Appropriation (Railways) No.2 Bill, 2003.
The Customs Tariff (Amendment) Bill, 2003.
The Appropriation (Vote on Account) Bill, 2003.
The Appropriation Bill, 2003.
The Appropriation (No.2) Bill, 2003.

PERSONNEL, PUBLIC GRIEVANCES AND PENSIONS

The Ministry of Personnel, Public Grievances and Pensions is the coordinating agency of the Central Government in personnel matters, especially issues concerning recruitment, training, career development, staff welfare as well as post-retirement dispensation The Ministry of Personnel, Public Grievances and Pensions is the coordinating agency of the Central Government in personnel matters especially issues concerning recruitment, training, career development, staff welfare as well as post-retirement dispensation. The Ministry with its three Departments namely, Department of Personnel & Training, Department of Pension and Pensioners’ Welfare and Department of Administrative Reforms and Public Grievances, is also concerned with the process of a responsive people-oriented modern administration. The new Government took several initiatives to streamline the system.

Central Vigilance Commission Bill 1999

The Government had introduced the Central Vigilance Commission Bill, 1999 in the Lok Sabha on December 12, 1999. This Bill was referred to the Joint Committee of Parliament for examination and report. The Joint Committee of Parliament presented its Report to the Parliament on November 22, 2000. In its report, the Joint Parliamentary Committee made certain recommendations and the Government had considered the various recommendations and also the Central Vigilance Commission Bill, 1999. The matter is now before the Lok Sabha for its consideration and passing of the Central Vigilance Commission Bill, 1999.

The Lokpal Bill 2001

The Government introduced the Lokpal Bill in the Lok Sabha on August 14, 2001. This Bill inter alia seeks to bring the Prime Minister within the purview of the Lokpal. However, this Bill stands referred to the Department-related Parliamentary Committee on Home Affairs for examination and report.

Freedom of Information Bill 2000

In order to make the Government more transparent, and accountable to the public, the Government appointed a Working Group on Right to Information and Promotion of Open and Transparent Government under the Chairmanship of Shri H.D. Shourie. The Working Group was asked to examine the feasibility and need for either full fledged Right to Information Act, or its introduction in a phased manner to meet the needs of open and responsive governance. The Working Group submitted its report in May, 1997, along with a draft Freedom of Information Bill, to the Government. The draft Bill submitted by the Working Group was subsequently deliberated upon by the Group of Ministers constituted by the Central Government to ensure that free flow of information was available to the public, while inter-alia protecting the national interest, sovereignty and integrity of India, and friendly relations with foreign States. Based on the recommendations of the Group of Ministers, the “Freedom of Information Bill, 2000” has been finalised by the Government and introduced in the Lok Sabha on July 25, 2000. The Bill, as introduced in the Lok Sabha and pending therein, was referred to the Department-related Parliamentary Standing Committee on Home Affairs for examination and report thereon. The Standing Committee has since presented its report to both the Houses of Parliament on July 25, 2001. The Bill has since been passed.

Assured Career Progression Scheme

On the recommendations of the Fifth Central Pay Commission and consultation with the Staff Side (National Council), JCM, the Government introduced an Assured Career Progression (ACP) scheme effective from August, 9, 1999 as a `Safety Net’ for stagnating Central Government civilian employees, who could not be promoted for long periods due to non-availability of vacancies in the promotional grades in the hierarchy. The ACP Scheme provides for grant of two financial upgradations in the hierarchical grades on completion of 12/24 years of regular service, respectively, to an employee purely on a personal basis, where he has not been offered one/two regular promotions before completion of these periods. This upgradation is, however, subject to certain conditions as specified in the scheme, including fulfilment of all promotional norms. The Scheme is applicable to all employees who are directly recruited to Group B, Group C and Group D, posts/services. It is not applicable to employees directly recruited to Group A posts/services. However, holders of all isolated posts, including Gr. A isolated posts, are also covered under the Scheme. Scale of Rs. 14,300-18,300 is the highest scale available under the scheme.

Amendment to Constitution

The article 16(4A) of the Constitution has been amended to provide for consequential seniority to the Government servants belonging to Scheduled Castes and Scheduled Tribes in case of promotion by virtue of rule of reservation.

States’ Reorganisation

Three new States of Jharkhand, Uttaranchal and Chhattisgarh have been carved out of the States of Bihar, Uttar Pradesh and Madhya Pradesh respectively as the 26^th, 27^th and 28^th State under the Union of India. The creation of the new States required allocation of service personnel between the mother and successor States. The provisional allocation orders of nearly 40,000 State Service Personnel other than AII-India Services have been issued by the Central Government. The final allocation is being decided by three State Advisory Committees, one each for Bihar, Madhya Pradesh and Uttar Pradesh. The State Advisory Committee, headed by a senior retired Civil Servant of the rank of Chief Secretary or equivalent, will finalise the list for final allocation to the successor States and would also consider representations from State government employees.

Centre for Public Policy

A UNDP supported project for setting up a Centre for Public Policy, as a part of IIM, Bangalore, has been started. The objective is to provide high-quality academic training in the area of public policy and also Indianise many of the long-term foreign training programmes being conducted at prestigious institutes like Harvard University. This project is estimated to cost Rs. 30.40 crore out of which Rs. 9.13 crore (US$2.15 million) would be met from UNDP grant assistance and Rs. 8.82 crore will be met from budgetary support of the Government of India. The remaining contribution is from IIM, Bangalore in terms of land, faculty resources, etc.

Regional Seminars on Citizen’s Charter

Regional seminars on Citizen’s Charter were organised at various parts of the country. The main objective of the seminar was to share experiences with the State governments in the area of implementation of Citizen’s Charter, develop consensus for future action to make the initiative more effective and motivate State organisations which have not yet issued Citizen’s Charters.

New Pension Scheme

The High Level Expert Group on Government Pensions has recommended a restructured two-tier pension scheme. The first tier will be the mandatory tier and the second an optional tier. The first tier pension will be a defined benefit at 50 per cent of the average emoluments for the last 36 months prior to superannuation. The Government servant may make a contribution to the second tier, but this will be matched by the Government by an equal contribution only upto 5 per cent of basic pay and DA. As regards the second tier, the amount on retirement can be either taken as a lump sum or converted into annuities at the choice of the individual. However, a decision on when the New Pension Scheme is likely to be in place is under examination.

PETROLEUM AND NATURAL GAS

India Hydro Carbon Vision 2025

The long-term policy for the hydrocarbon Sector was formulated by a Group of Ministers comprising the Finance Minister, the Minister of Petroleum and Natural Gas, the Deputy Chairman of Planning Commission and the External Affairs Minister. This policy called “India Hydro Carbon Vision 2025” was finalised in March, 2000. It focuses on oil security, improved delivery of products and services to consumers throughout the country by fostering competition, impetus to exploration, acquisition of oil equity abroad.

LPG Connections

During the tenure of the NDA Government, 3.5 crore new LPG connections have been released in the last five years which is more than 3.37 crore LPG connections released in the previous 40 years. There are now over 6.8 crore LPG consumers in the country covering approximately 30 per cent of the country’s population. LPG connections were made available across the counter throughout the country since October, 2000, achieving a major milestone, as earlier it used to take 3-4 years to get a new connection.

To expand use of LPG into new markets, thrust is being given to reach LPG to remote, rural and poor customers by introduction of 5 kg. LPG cylinder on August 16, 2002. Besides lower deposit on the smaller cylinders, the cost of refill is only about Rs. 90 as compared to around Rs. 250 for a conventional 14.2 kg. cylinder to suit the budget of lower income group and the convenience of transportation to longer distances and in difficult terrain.

Tender system for procurement of LPG cylinder was introduced leading to a saving of about Rs. 500 crore per year. Consequently the security deposit of cylinder was reduced from Rs. 900 to Rs. 650 thereby passing on this benefit to the consumers. The objective of special emphasis to encourage use of LPG in households is to improve the quality of life of women by making the kitchen smoke-free.

Enhancing Country’s Hydrocarbon Resource

India imports 70 per cent of its crude oil requirement of about 105 million tonnes per year at a cost of Rs. 78,000 crore. To boost the self-sufficiency in crude oil and promote indigenous sources, bold steps have been taken.

Use of Ethanol in Petrol

The previous Governments waited more than 20 years in evaluating the benefits of a proven technology, which has been operating successfully in Brazil for 70 years. The Government started three pilot projects in Maharashtra and Uttar Pradesh in the year 2001 and based on the successful results, the Government has now made mandatory, use of 5 per cent ethanol-blended petrol in nine States of Uttar Pradesh, Punjab, Haryana, Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, and Goa and the Union Territories of Chandigarh, Dadra & Nagar Haveli, Daman & Diu and Pondicherry from January 1, 2003 in phases. All areas of these States and UTs would be covered by June 30, 2003. Nearly 32 crore litres of ethanol would be required for blending with petrol every year. The blended fuel would be supplied through 11,538 retail outlets in these States and Union Territories. This will benefit the sugarcane cultivators by providing avenue for use of molasses, which are wasted, increase employment in distilleries, improve the environment and increase self sufficiency based on an indigenous renewable source of fuel. It will also save valuable foreign exchange.

The Government opened another avenue for utilisation of bio-fuels to supplement availability of Hydrocarbons in the country. In this context an MOU was signed in February, 2003, between oil sector ‘Navaratna’ PSU Indian Oil Corporation and Indian Railways to launch a Pilot Project for producing bio-diesel from non-edible oil seed plants like Jatropa (Ratan Jyot).

New Exploration Licensing Policy (NELP)

To boost exploration of crude oil in the country, 70 blocks have been awarded in the first three rounds of NELP including the signing of contracts for 23 blocks on February 4, 2003, under the third round of NELP. As compared to these 70 blocks in 3 years, only 22 blocks were awarded in the previous 10 years. Contract signing was accomplished in seven months during the first round of NELP and three-and-a-half months in the next two rounds against earlier 2-3 years giving a boost to investor confidence. The NELP has started showing results ever since invitation of bids for the first time in January, 1999, with as many as seven discoveries made from NELP blocks so far. These include the biggest gas discovery in the world in 2002, by Reliance in deep-sea waters of Krishna-Godavari basin in a NELP-I block and a gas discovery by Niko Resources of Canada in an NELP-II block near Surat. Outside NELP, a significant oil discovery in Rajasthan by Cairn Energy of U.K. has put the State on the oil map of India.

Coal Bed Methane (CBM)

To augment the natural gas availability in the country, eight blocks have been awarded to join a select group of countries including USA, China and Australia to harness the Coal Bed Methane (CBM) gas in the country. Of these blocks, five were awarded in the first ever-bidding round under the investor-friendly National CBM Policy. The contracts of five blocks, two in Jharkhand, two in Madhya Pradesh and one in West Bengal were signed in July, 2002, while contracts for two more awarded through nomination were signed on February 6, 2003. Apart from providing natural gas, safety in coal mining would be improved by removal of combustible gas from the coal seams.

Equity Oil Abroad

India recorded a major success by completing the acquisition of 25 per cent equity in an oil producing field in Sudan in March, 2003. The Indian partner ONGC-Videsh Limited (OVL) thus has its share of 3 million tonnes of crude oil from the total annual production of about 12 million tonnes in the field on an investment of about Rs. 3,600 crore. The largest ever investment by India abroad was also made by OVL acquiring 20 per cent stake in Sakhalin Oil Fields in Russia at a cost of Rs.8,000 crore. The country would get 4 to 8 million tonnes of crude oil from 2005 onwards apart from 5-8 million cubic metres of gas, which would be available from 2008 onwards.

The Vietnam gas project commenced commercial production in December 2002 with India’s share of 3.5 MMSCMD of gas at an investment of about Rs. 900 crore. OVL also acquired interests in attractive exploration blocks in US, Myanmar, Iraq and Libya.

Redevelopment of Mumbai High

The Mumbai High Fields of ONGC produce about 50 per cent of the crude oil in the country. The fields have entered a declining phase as they have been in production for over 25 years. Redevelopment of these fields have been undertaken at a cost of Rs. 8,100 crore to arrest the decline and increase crude production over next 10 years. This has led to 9 percent increase in production of crude oil and 4 per cent increase in natural gas.

Royalty revised to benefit States

Rationalising the system of royalty leviable on crude oil production, the Government decided to revise the rates of royalty on February 4, 2003, making it payable on the basis of wellhead price of crude oil w.e.f. April 1, 1998. The royalty payable on crude oil from onland blocks will be 20 per cent and for offshore blocks 20 per cent upto April 1, 2002, and 10 per cent thereafter. Concessional rates will be applicable for crude produced in deep seas and for heavy crudes. As a result of this decision Gujarat (Rs.221.5 crore), Assam (Rs.184.7 crore), Tamil Nadu (Rs.17 crore), Andhra Pradesh (Rs.10.8 crore) and Arunachal Pradesh (Rs.2.3 crore) will receive arrears of Rs. 436.4 crore for the period 1998-2002. The States will also get extra revenue of Rs. 419 crore every year from April 1, 2002, estimated at crude price of US$ 22 per barrel. The royalty being paid to the States at Rs. 850/MT on ad-hoc basis will increase to about Rs. 1, 250/MT on an average, at crude oil price of US$ 22 per barrel.

Self Sufficiency in Refining Crude Oil

The country attained self-sufficiency in refining capacity, which now stands at 116.5 Million Tonnes Per Annum (MMTPA) almost doubled from about 62.2 MMTPA as on April 1, 1998. The country benefits by not importing expensive products like petrol and diesel and local value addition to crude by converting to more expensive products within the country. Two new grassroot refineries were commissioned at Jamnagar, Gujarat by Reliance Industries Limited and at Numaligarh, Assam by Numaligarh Refineries Limited. In addition, three new refineries are being constructed at Paradip (Orissa) by Indian Oil Corporation Limited (9 million tonne), Bhatinda (Punjab) by Hindustan Petroleum Corporation Ltd. (9 million tonne) and Bina (Madhya Pradesh) by Bharat Petroleum Corporation Limited (6 million tonne). The total investment in these three new Refineries would be about Rs. 25,000 crore.

In line with Government’s policy to provide special dispensation for the development of North-Eastern Region, the Government allocated 1.5 million tonnes of Ravva Crude to Bongaigaon Refinery and Petrochemical Limited (BRPL), Assam. This would make additional crude available to the four North-East Refineries at Bongaigaon, Guwahati, Digboi and Numaligarh, which were facing capacity under-utilisation due to shortage of crude oil.

Introduction of Clean Fuels

Low sulphur diesel (0.25% Max) and unleaded petrol are being supplied throughout the country with effect from January 1, 2000. Ultra low sulphur petrol and diesel (0.05% max), conforming to Euro-II norms, are being supplied in four metros and Hyderabad. These fuels would be supplied soon in Ahmedabad, Bangalore, Kanpur and Pune, which also have high incidents of vehicular air pollution. Fuels conforming to Euro III norms to be supplied in the four Metros, Bangalore, Hyderabad and Ahmedabad and fuel conforming to Euro II standard all over the country from the year 2005. An investment of Rs. 10,000 crore has been made in refineries to upgrade the fuel quality being supplied at present. An additional investment of Rs. 18,000 crore will be incurred by the year 2005 to upgrade the fuel quality to Euro-II norms throughout the country and Euro-III norm in the seven major cities.

The supply of CNG was augmented in Delhi ending the times of long queues following Supreme Court directions in March, 2001. With recent commissioning of 23 km CNG pipeline a circular loop of pipeline, is in place for convenient supply of gas to CNG stations. Present 101 CNG stations against 68 in March, 2001 cater to the largest CNG bus fleet in the world of about 7, 200 buses and 4, 000 mini buses forming part of about 75,000 CNG vehicles in the city. Next comes Beijing with 1, 600 and Seoul with 1000 buses. CNG supply is also being augmented in Mumbai with plans for increasing CNG dispensing points.

LPG as Auto Fuel

With a view to reducing pollution, Government has permitted use of Liquefied Petroleum Gas (LPG), being a cleaner and environment friendly fuel as an auto-fuel. For this purpose, the Government has formulated necessary legislative and regulatory framework for safe use of LPG as an automotive fuel. The Ministry has published LPG (Regulation of use in Motor Vehicles) Order, 2001 on August 1, 2001. Public sector oil marketing companies have identified 228 locations for setting up of auto LPG dispensing stations (ALDS) in Metros, i.e., Delhi, Mumbai, Kolkata and Chennai and some other major cities in the country in the initial stage. Other cities include are Jaipur, Lucknow, Kanpur, Agra, Chandigarh, Jalandhar, Ludhiana, Amritsar, Patna, Pune, Nagpur, Ahmedabad, Vadodara, Hyderabad, Bangalore and Kochi. So far 54 stations have been commissioned in different cities and 97 are in different stages of commissioning.

Auto Fuel Policy

An expert Committee headed by eminent scientist and DG, CSIR, Dr.R.A. Mashelkar has recommended an auto fuel policy for the country focussing an improvement in air quality through a mix of better quality fuels, making pollution checking system more effective for both new and in-use vehicles, including two-wheelers, and recommending a phased road map for introduction of new fuels and vehicles for the whole country. The Mashelkar Committee was set up with eminent experts drawn from the fields of environment, automobile, technology, petroleum, economic and consumer affairs to recommend to the Government, inter-alia, an auto fuel policy for the country and suitable auto fuel for improving the ambient air quality.

Measures to Curb Adulteration

An Anti Adulteration Cell (AAC) was set up in March, 2001, with Regional Offices in the four Metros. The cell would draw officers from the police, revenue services, sales tax as well as administration to give a multi disciplinary approach with focus on curbing adulteration. AAC launched its website (www.antiadulterationcell.com or www.aacindia.org) dedicated for receiving complaints/suggestions from general public all over the country against adulteration and other malpractices seen or suspected in distribution of petroleum products. A state-of-the-art fuel-testing laboratory has been set up at Noida (U.P.) at a cost of Rs. 15 crore. The number of mobile laboratories, which conduct surprise inspection at petrol pumps has been increased from 22 to 50 throughout the country. Control orders were issued under the Essential Commodities Act in the year 2000, to check diversion of solvents and naphtha for adulteration.

Rehabilitation of the Families of Martyrs

Retail Outlet (RO) dealerships and LPG distributorships were allotted to 439 widows/next of kin of martyrs killed in action in Kargil. Oil companies would be spending Rs. 40 lakh per RO and Rs.20 lakh per LPG distributorships. In addition, nine RO dealerships were allotted on December 13, 2002, to the families of security personnel and other officers also who were killed in terrorists’ attack on Parliament a year before. These are the first allotments by the present Government under discretionary quota scheme. This Scheme was formulated for discretionary allotment of retail outlets/LPG distributorships to the wives/next of kin of armed forces/para military forces/Government servants killed in action in the course of performance of duty.

Dismantling of Administered Price Mechanism (APM)

The Administered Price Mechanism (APM), which governed the price of transportation fuel, LPG and kerosene since 1975 has been dismantled with effect from April 1, 2002, to foster competition by allowing private entities in the field of marketing. The price of petrol, diesel, kerosene, LPG and Aviation Turbine Fuel (ATF) will move in line with international price trend of crude oil. LPG and kerosene would continue to be subsidised with a fixed subsidy from the Government for another three to five years. As a consequence of the policy of dismantling the APM and allowing private entities, marketing rights have been granted to Reliance Industries (5,849 pumps), Essar Oil (1,700 Pumps), ONGC (600 pumps) and Numaligarh Refinery (510 Pumps). This will lead to addition of 40 per cent to the existing strength of about 19,000 retail outlets. Of these, ONGC and Numaligarh Refinery are Public Sector Undertakings while Reliance Industries and Essar Oil are private companies.

The Petroleum Regulatory Board Bill 2002 was introduced in the Lok Sabha for setting up a Petroleum Regulatory Board. This is aimed at ensuring protection of consumer interests, encouraging healthy competition and optimum utilisation of infrastructure in hydrocarbon sector.

Market Expansion

To augment the marketing network of oil companies for making available services and petroleum products at the doorstep of consumers, 3,760 petrol-diesel, LPG and SKO-LDO dealers were selected by the Dealer Selection Boards (DSB) since January 2000. Following a controversy, the Government cancelled all the selections of dealers since January 1, 2000, and decided to auction them through competitive bidding. However, the cancellation was not upheld by the Supreme Court and the apex court set up a Committee to inquire into 417 cases out of the total 3,760. While the directions of the Supreme Court are being complied with, the remaining dealerships could be operated/commissioned in accordance with the laid-down guidelines.

Restructuring and Disinvestment

Recognising the strategic importance of oil sector from the standpoint of national security, supplies to all parts of the country and the importance to economy, Government decided to keep a minimum equity of 51 per cent in the flagship companies, ONGC, GAIL and IOC. Strategic disinvestment of IBP – a stand alone marketing company – was carried out through international competitive bidding for Government equity of 33.58 per cent fetching the Government Rs.1,153 crore. Government also decided to disinvest its shares in HPCL through strategic sale and BPCL through Initial Public Offering. Employees would be offered a certain percentage of shares at one-third price.

To strengthen the stand-alone refineries, Chennai Petroleum Corporation Limited (CPCL) and Bongaigaon Refinery & Petrochemicals Ltd. (BRPL) were transferred to Indian Oil Corporation Ltd. (IOC) and Kochi Refineries Ltd. (KRL) to Bharat Petroleum Corporation Ltd. (BPCL) for a total consideration of around Rs.1,317 Crore. Similarly, Numaligarh Refineries Ltd. (NRL) was restructured by transferring 19 per cent of IBP’s equity to BPCL. The restructuring was done keeping in mind the synergy of operations and infrastructure between these companies. In keeping with the Government policy of disinvestment, a small part of Government’s share in GAIL was sold in the international GDR market, which brought Rs.945 crore to the national exchequer.

The Government approved acquisition of 37 per cent equity held by Aditya Birla Group in Mangalore Refinery and Petrochemicals Limited (MRPL) by ONGC for Rs. 2 per share (Total Rs. 60 crore). Having one of the latest refineries with nine, MMTPA capacity, MRPL had been incurring losses and would have turned sick without go-ahead given to ONGC. The company would also invest additional Rs. 600 crore to take their holdings in MRPL to 51 per cent. This will add value to ONGC and make it an integrated company in hydrocarbon sector.

Liquefied Natural Gas

Import of Liquified Natural Gas (LNG) initiated through Petronet LNG Limited by setting up 5 Million Tonne Plant (MPT) at Dahej (Gujarat) and another plant of 2.5 million tonne capacity proposed at Kochi (Kerala). About 40 per cent work has already been completed in Dahej. By 2003, LNG will start flowing in HBJ pipeline, which will benefit States of Gujarat, Madhya Pradesh, Rajasthan, Haryana, Delhi and Uttar Pradesh.

LPG Pipeline

The world’s longest LPG pipeline from Hazira (Gujarat) to Loni (Uttar Pradesh) was commissioned by Gas Authority of India Limited (GAIL) in the year 2001. This pipeline, which is about 1,150 km. long, passes through the States of Gujarat, Rajasthan, Haryana, Delhi and Uttar Pradesh and has been built at a cost of Rs. 1,100 crore. This pipeline will benefit these States as the transport of LPG will be assured and more bottling plants will be set up along the way. The pollution as well as the cost due to transportation of LPG by trucks will be reduced.

Contribution to Social Causes

The Oil industry as a whole has contributed to the Prime Minister’s Relief Fund substantial amount of Rs.40 crore for the Gujarat earthquake and Rs.40 crore for the cyclone relief in Orissa. The oil companies supplied diesel free of cost to Rajasthan and Gujarat in the year 2001 for supplying water by tankers in drought affected villages.

The Indian Oil Foundation was set up with a corpus of Rs. 25 crore and an annual contribution of Rs. 10 crore for preserving the national archaeological heritage. The first five locations selected initially for maintenance and management are Qutub Minar (Delhi), Konark (Orissa), Kanheri Caves (Maharashtra), Hampi (Karnataka) and Khajuraho (MP)

Performance of Oil PSUs

There are 12 oil PSUs under the administrative control of the Ministry of Petroleum and Natural Gas. Out of these 12, there are five ‘Navratnas’ and six ‘Miniratnas’ and one i.e. Numaligarh Refinery Limited (NRL) has commenced production recently in the year 2000. The oil PSUs recorded profit after tax of Rs. 12,749.53 crore as against the paid up capital of Rs. 5,204 crore during the year 2001-2002. The Profit after tax was substantially higher than that recorded in the previous year. The first six PSUs listed below are among top 10 PSUs in the country in terms of turnover and the first five are among top ten profit making PSUs in the country:-

(Figures in crore)

Name of PSUs	Paid up capital	Turnover (Gross)	Profit after tax	Dividend as % of paid up Capital
Oil and Natural Gas Corporation	1,425.93	23,857.40	6,197.90	140
Indian Oil Corporation	778.67	1,14,864.00	2,885.00	110
Gas Authority of India Ltd.	845.65	10,572.95	1,185.84	45
Hindustan Petroleum Corporation Ltd.	339.00	45,287.00	788.00	100
Bharat Petroleum Corporation Ltd.	300.00	40,094.88	835.72	110
IBP Co.	22.15	8,456.00	196.00	100
Oil India Ltd.	214.00	1,949.36	525.22	75
Bongaigaon Refinery & Petrochemicals Ltd.	199.82	1,195.00	(-) 199.00	–
Engineers India Ltd.	56.16	536.99	24.71	27.5
Chennai Petroleum Corporation Ltd.	149.00	6,080.28	63.71	20
Kochi Refineries Ltd.	138.17	6,758.25	123.45	22
Numaligarh Refineries Ltd.	735.63	2,261.28	122.98	5.1
GRAND TOTAL	5,204.18	2,61,913.39	12,749.53

PLANNING COMMISSION

50^th Meeting of the National Development Council (NDC)

The Tenth Plan (2002-07) has been approved by the National Development Council (NDC). It envisages an ambitious average growth rate of eight per cent per annum in GDP and doubling the per capita income in ten years. It aims to harness the benefits of growth to improve the quality of life by reduction in poverty ratio to 21 per cent, providing potable water in all villages, enrolling all children in school by 2003, and increasing literacy rate to 75 per cent by 2007. It also aims at creating 50 million jobs during the Tenth Plan and providing shelter to all by the end of the Eleventh Plan. This will require tremendous efforts for resource mobilisation, large investment in infrastructure and social sectors, improved allocative efficiency of resources, eliminating inter-State trade barriers, investor friendly environment, labour law reforms, efficient delivery system, and peoples’ participation.

In a path-breaking development, following the initiatives taken by the Prime Minister, the National Development Council (NDC) has also approved constitution of four empowered sub-committees of the NDC consisting of Union Cabinet Ministers and State Chief Ministers in the areas of governance of reforms, removal of internal trade, creation of an investor-friendly environment, and empowerment of Panchayati Raj Institutions. These sub-committees have since been set up with the approval of the Prime Minister.

Compendium on “Successful Governance Initiatives and Best Practices–Experiences from Indian States”

To encourage best practices in governance and implementation, and disseminate information relevant to raising standards of implementation across States, the Planning Commission, in cooperation with the United Nations Development Programme (UNDP), has prepared a compendium on “successful governance initiatives & best practices – experiences from Indian States”. The compendium has since been released.

State Development Reports

Planning Commission initiated an exercise to prepare State Development reports to provide a qualitative reference document on the development profile and strategies to accelerate the growth rate of the States. Assam State Development Report is first of its kind in the series of State Development Reports. It has been prepared by the Indira Gandhi Institute of Development Research, Mumbai, in cooperation with the State government.

Accelerated Irrigation Benefit Programme (AIBP)

The Accelerated Irrigation Benefit Programme, under irrigation sector, is being used as a tool of reform and accordingly the initiative has started receiving response from the States. Four States, viz. Rajasthan, Madhya Pradesh, Orissa and Maharashtra have already signed the MoU with Government for progressively raising the irrigation water rates. The Government presumes that other States shall also come forward to reform the water rates and to use the funds so raised to maintain the water resource projects.

Accelerated Power Development Programme (APDP)

The Accelerated Power Development Programme (APDP) scheme was initiated in 2000-01, with the objective of giving a fillip to reforms in the distribution segment. The scheme is now proposed to be modified as the Accelerated Power Development and Reform Programme (APDRP). Under the modified scheme, there would be an element of incentive linked to achievement of certain reform-based parameters besides provision for investment in the distribution sector.

Rashtriya Sam Vikas Yojana (Development and Reform Facility)

Rashtriya Sam Vikas Yojana is a new initiative in the Tenth Plan. The main aim is to tackle the development problems of those areas, which despite existing efforts continue to be characterised by high poverty, low growth and poor governance. The Rashtriya Sam Vikas Yojana has three components in the current year, namely, (i) Special plan for Bihar; (ii) Special plan for the KBK districts; and (iii) Backward Districts Initiative. Under the Special Plan for Bihar, additionality will be provided for identified thrust areas, such as power, irrigation, roads, horticulture, watershed development and afforestation. Through innovative delivery systems, so that the prevailing bottlenecks in these sectors can be overcome and basic infrastructure for the future development of the State, are provided.

The Special Plan for the KBK districts aims at ameliorating the continuing poverty in these districts through concerted action in identified critical areas, which would ensure drought proofing, livelihood support, better health facilities and assistance to disadvantaged groups. Under the Backward Districts Initiative, 25 districts have been identified for providing assistance in the current year, which is to be used for schemes which fulfil the main objectives of the Development and Reform Facility, to address the problems of low agricultural productivity, unemployment and to fill up critical gaps in physical and social infrastructure.

Vision 2020

The Planning Commission constituted a Committee on Vision 2020 for crystallising the country’s vision for the future, in the year 2020.

India Vision 2020 envisages that by 2020, the people of India will be more in numbers, better educated, healthier and more prosperous than at any time in our long history. India’s per capita income will quadruple by the year 2020, with GDP growing at an annual rate of 9 per cent and population growth slowing down to 1.6 per cent, per annum. It will be people oriented development providing equal opportunities for all and removing the existing inequalities. There will be almost no unemployment, no poor and 100 per cent literacy. India’s claim to the title Silicon valley of Asia will be followed by the diversification from IT to biotechnology, medical sciences and other emerging fields of technology, enhancing India’s international competitiveness and generating large employment opportunities for the educated youth. These developments, coupled with a quantum expansion of vocational training programmes, will ensure jobs for all by the year 2020.

Inequalities between different age groups, sexes, income groups, communities and regions, will come down dramatically. India 2020 must be one, in which all levels and sections of the population and all parts of the country march forward together towards a more secure and prosperous future. However, Environmental issues will remain a serious concern, requiring strict enforcement of standards, use of water harvesting techniques and renewable energy sources like biomass, and massive afforestation.

By the year 2020, India will be much more integrated with the global economy and become a major player in terms of trade, technology and investment. Rising levels of education, employment and income will help stabilise India’s internal security and social environment. A united and prosperous India will be far less vulnerable to external security threats. A more prosperous India in the year 2020 will be characterised by a better educated electorate and a more transparent, accountable, efficient and decentralised Government.

MAJOR RURAL POVERTY ALLEVIATION PROGRAMMES

Due to the various initiatives taken by the Government, the percentage of population living Below Poverty Line (BPL) has been significantly reduced from 37.30 in 1993-94 to 27.09 in 1999-2000 in rural areas.

The major self-employment and wage employment programmes for alleviation of poverty have been reformulated during this period.

The Swaranjayanti Gram Swarozgar Yojana (SGSY) was launched in April, 1999, following the restructuring of the erstwhile Integrated Rural Development Programme (IRDP) and its allied programmes along with Million Wells Scheme (MWS). The objective of the SGSY is to bring the assisted poor families (Swarozgaris) above the poverty line by organising them into Self Help Groups (SHGs) through the process of social mobilisation, their training and capacity building and provision of income generating assets through a mix of Bank credit and Government subsidy. The SGSY has been conceived as a process-oriented programme for the poor with group formation as the focus. There are four stages in this process – social mobilisation and formation of groups (initial phase), generation of savings and internal lending amongst the members of the group on their own, augmented by revolving fund grants (second phase), obtaining micro finance (third phase) and setting up of micro enterprises (fourth phase).

The Sampoorna Grameen Rozgar Yojana (SGRY) announced by the Prime Minister on August 15, 2001, was launched in September, 2001. The schemes of Jawahar Gram Samridhi Yojana (JGSY) and Employment Assurance Scheme (EAS) have been merged under this programme w.e.f. April 1, 2002. The primary objective of the scheme is to provide additional wage employment in all rural areas and thereby provide food security and improve nutritional levels. The secondary objective is the creation of durable community, social and economic assets and infrastructural development in rural areas. The SGRY is open to all rural poor who are in need of wage employment and desire to do manual and unskilled work in and around the village/habitat. The programme is self-targeting in nature. The programme is implemented through the Panchayati Raj Institutions (PRIs), which empowers the rural poor in getting the benefits of the programme.

Rural Housing – Indira Awaas Yojana (IAY)

The composite multi pronged strategy for housing has been operationalised w.e.f. 1999-2000. The Indira Awaas Yojana (IAY) is the major scheme for construction of houses to be given to the poor, free of cost. It has an additional component, namely, conversion of unserviceable kutcha houses to semi pucca houses. Further, a credit-cum-subsidy scheme for rural housing was launched from April 1, 1999 targeting rural families having annual income up to Rs.32,000. The equity support by the Ministry of Rural Development (MORD) to Housing and Urban Development Corporation (HUDCO) has been also been increased to improve the outreach of housing finance in rural areas.

In addition, the innovative stream for rural housing and habitat development and Rural Building Centres (RBCs) was introduced to encourage innovative, cost effective and environment friendly solutions in building/housing sectors in rural areas. Samagra Awaas Yojana, a comprehensive housing scheme, was also launched in 1999-2000, on pilot project basis in one block in each of 25 districts of 24 States and in one Union Territory with a view to ensuring integrated provision of shelter, sanitation and drinking water. A National Mission for Rural Housing and Habitat has also been set up to address the critical issues of ‘housing gap’ and induction of science and technology inputs into the housing/construction sector in rural areas.

Development of degraded and wastelands

The restoration of degraded and wasteland has been accorded a very high priority by the Planning Commission. Specific programmes that address issues of development of degraded land and enhance the carrying capacity of land, have been strengthened and provided increased allocation in the last five years. Special focus on these areas has been given in the Tenth Five Year Plan. The allocation for area development programmes, viz. Drought Prone Areas Programme (DPAP), Desert Development Programme (DDP) and Integrated Wasteland Development Programme (IWDP) were increased considerably during the Ninth Plan period. The guidelines for implementation of the schemes have been revised to internalize issues of equity and social inclusion. Elaborate monitoring mechanism has been put in place to ensure that projects are completed on time and with in the approved cost. Post projects arrangements for long-term sustainability of the watershed projects have also been emphasised.

Panchayati Raj Institutions(PRI)

The Panchayati Raj Institutions(PRI) were conferred a Constitutional status by the 73^rd Constitutional Amendment Act in 1993. The Constitution enjoins the State governments to empower Panchayats by devolving functions, finances and administrative control over the government functionaries of departments which fall with in the purview of PRIs. The last Five Year Plan has seen a greater empowerment of the PRIs in many States. However, in many other States the process of strengthening Panchayats needs greater impetus. The Government of India has taken steps to enable Panchayats to emerge as institutions of self-governance. Instructions have been issued to the States to bestow powers and responsibilities on the Panchayats in consonance with the Constitutional Amendment Act.

The Government has also attempted to promote a greater role for Gram Sabhas to further transparency and accountability in functioning of the Panchayats. The year 1999-2000 was declared as the year of Gram Sabha by the Government. Many national level conventions were also held to discuss the issue of deepening grass root democracy. The Government of India has also decided to set up an empowered committee of the National Development Council (NDC) to look into the issue of empowerment of Panchayats.

Pradhan Mantri Gramodaya Yojana (PMGY)

Pradhan Mantri Gramodaya Yojana (PMGY) was launched in the Annual Plan 2000-2001 in all the States and the UTs in order to achieve the objective of sustainable human development at the village level.

PMGY envisaged allocation of Additional Central Assistance (ACA) to the States and UTs for selected basic minimum services in order to focus on certain priority areas of the Government. The PMGY programme strives to mobilise efforts and resources only for selected basic services. The programme initially had five components, viz., primary health, primary education, rural shelter, rural drinking water and nutrition. Rural electrification was added as an additional component (sixth) to the programme in the Annual Plan 2001-02. The programme complements the efforts of the States and UTs to ensure access of the rural population to the basic services thereby improving the level of human development in the country.

State Human Development Reports

Since July, 1999, Planning Commission has been executing a small UNDP project on capacity building for preparation of State Human Development Reports (SDRs). The project aims at providing technical and professional assistance to the State governments, which embark on the preparation of their State HDRs. With the assistance offered through the project, a number of State governments have benefited in their endeavour to prepare their SHDRs. The State governments of Maharashtra, Rajasthan and Sikkim have already prepared and launched their Reports. The State governments, which are at present preparing these reports, are Himachal Pradesh, Tamil Nadu, Assam, Arunachal Pradesh, West Bengal, Nagaland, Manipur, Mizoram, Orissa, Uttar Pradesh, Chhattisgarh, Punjab, Haryana and Andhra Pradesh.

Environment and Forests Sector

In the environment sector, India hosted the Eighth Conference of Parties (COP-8) to the UN Framework Convention on Climate Change (UNFCCC) at New Delhi in October-November, 2002, through which the international community recognised India as a leader working with a defined mandate and commitment in mitigating adverse effects of climate change and also became aware of India’s capabilities in the fields of environment management and technology in industry, power, renewable energy, agriculture and forestry sectors. In Delhi, CNG was introduced as a fuel for public transport buses and diesel was phased out in 2002. Consequently the levels of Suspended Particulate Matter (SPM), SO2, etc. have been considerably reduced.

In respect of conservation of rivers and lakes, the following programmes/measures have been undertaken:

Ganga Action Plan Phase –I (GAP-I)

The first river action plan taken up under the National River Conservation Directorate was the Ganga Action Plan (GAP) Phase I. This scheme was closed w.e.f. April 1, 2000. The objective of the GAP Phase-I was to improve the water quality of the river Ganga as per the following standards:

Bio-chemical Oxygen Demand (BOD) – 3mg/l (maximum)

Dissolved Oxygen (DO) – 5mg/l (minimum)

Total Coliform Count – 10,000MPN per 100ml

Faecal Coliform Count – 2,500 MPN per 100 ml

Pollution abatement works under this plan have been taken up in 25 class I towns (population above one lakh in 1985) of which six are in U.P. four in Bihar and 15 in West Bengal. The action plan primarily addressed itself to the interception and diversion for treatment of 873 million litres per day (mld) of municipal sewage. To accomplish the task, 261 schemes of pollution abatement concerning municipal activities were sanctioned under the GAP. These include 88 schemes of interception and diversion, 35 of sewage treatment plants, 43 of low cost toilets, 28 of electric crematoria, 35 of river front development and another 32 of miscellaneous category. Of these, 258 schemes have been completed.

A sewage treatment capacity of 835 mld has been created and an amount of about Rs. 452 crore has been spent on the GAP Phase I. The entire funding has been provided by the Central Government. About 35 per cent of the present pollution load of Ganga has been tackled under this phase and the river water quality has shown improvement over the pre-GAP period.

National River Conservation Plan (NRCP)

The National River Conservation Plan (NRCP) was launched in 1995 to cover 23 major rivers in 10 States of the country. Ganga Action Plan, Phase II was merged with NRCP in 1996. NRCP at present includes works in 155 towns along 29 polluted stretches of rivers spread over 17 States including Andhra Pradesh. Bihar, Delhi, Goa, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Punjab, Rajasthan, Tamilnadu, Uttar Pradesh, Uttranchal and West Bengal.

Out of 754 schemes of pollution abatement sanctioned under this action plan so far, 351 schemes have been completed. About 2,455 million litres per day (mld) of sewage is targeted to be intercepted, diverted and treated. Out of the approved cost of Rs. 3,438 crore, the projects worth Rs. 2,395 crore have been sanctioned. The funds released by Government till December, 2002, are to the tune of Rs. 1,160 crore.

NRCP was approved on 50:50 cost sharing basis between Centre and the State Governments in 1995. The funding pattern was changed to 100 per cent by Centre in the beginning of the IX Plan. However, effective April 1, 2001, the cost of all new works approved is being shared between Centre and States on 70:30 basis. The major works under NRCP include: Yamuna Action Plan, Gomti Action Plan, Damodar Action Plan, Musi River Conservation Project etc.

National Lake Conservation Plan (NLCP)

The National Lake Conservation Plan (NLCP) was initiated in 1994 for cleaning important urban lakes with high levels of silting and pollution. Initially, ten lakes were identified for coverage – Ooty, Kodaikanal, Powai, Dal, Sukhna, Sagar, Nainital, Udaipur, Rabindra Sagar and Hussain Sagar. It was approved in 1997 as a 100 per cent Centrally-sponsored scheme, but the funding pattern was revised to 70:30 between Centre and State w.e.f January, 2002.

The allocation for NLCP during the IX Plan was Rs. 25 crore, out of which Rs. 10.20 crore was spent. A provision of Rs. 220 crore has been made for the X plan. The major ongoing and approved works include conservation of lakes, namely, Powai (Maharashtra), Ooty (Tamilnadu), Kodaikanal (Tamilnadu) , Mansagar (Rajasthan), Nainital Lakes (Uttranchal), Bangalore lakes (Karnataka) etc. In view of the several competing proposals being received from the various State governments for other polluted lakes, it has been decided to take up such lakes depending on pollution status and availability of funds.

In respect of the forests sector, two task forces were formed during the relevant period, which deliberated upon the topics allocated and submitted their reports.

Task Force on Conservation and Sustainable use of Medicinal Plants

The Task Force was constituted on June 14, 1999, with representatives of all related fields. The brief of the Task Force was to deliberate and suggest appropriate measure to take up assessment and conservation including sustainable use of the medicinal plant resources of the country. The report of the Task Force was released on February 29, 2002. The report has been circulated to the related departments of the Government for follow up action.

Task Force on Development of Agro-forestry

The Task Force was constituted on September 16, 1999, with the aim to provide policy directives, legal support, equitable marketing systems to agro-forestry for sustainable agriculture, diversified production, thriving of forest based industries along with improving bio-drainage of the land and rural economy. The Task force had 17 members. It was renamed as the Task Force on Greening India, subsequently. The report of the Task Force was released on July 2, 2001. The report has been made available to the concerned agencies for follow up action.

National Mission on Bamboo Technology and Trade Development

Considering the vast scope for expanding bamboo in the areas outside forest, its enduring versatility as a highly renewable resource and tolerance of diverse soil and moisture regimes, its ability to survive in degraded areas as a means of conserving soil and moisture, it has been proposed to launch a National Mission on Bamboo Technology and Trade Development for taking up several initiatives with the objectives of using bamboo as a means to reclaim degraded land, conserve soil, improve environment, aiming at raising of the forest cover to 25 per cent by 2007 and 33 per cent by 2012, organising harvesting of bamboo from gregarious flowering areas, expanding area under bamboo plantation by 6M ha. in the Tenth and Eleventh Plan, improving yield, stabilising the existing bamboo plantation and promoting plantations of quality species needed by the Industry, diversification, modernisation and expansion of the bamboo based industries and handicrafts.

The Bamboo Mission Programme will enable about 5 million families of artisans and farmers to cross the poverty line.

National Mission on Bio-diesel

Plant species like ‘Jatropha curcas’ have been found to be quite useful for blending of seed oil in diesel, apart from being suitable for reforestation of degraded forestlands of arid regions. The potential of this species in bringing about economic development of communities involved in JFM and agro-forestry in degraded lands, besides fulfilling greening commitments of the country has been realized by the Planning Commission and it is proposed to launch a National Mission on Bio-diesel from the year 2003-04.

The National mission envisages plantation of ‘Jatropha curcas’ as a component of agro-forestry/ JFM programmes under Greening India campaign and promote use of seeds of this species for blending with diesel. It is expected that with the integration of the available technology in rural areas for processing of seeds and blending of the oil products in the petro-fuels, there will be a positive impact on the rural economy as well as national initiatives for environmental conservation.

Health

In the Health Sector, the most important initiative has been initiated in July, 2002, to operationalise the PM’s announcement to provide food grains to pregnant and lactating women and adolescent girls. The project has been taken up in two of the backward districts in some of the major States and most populous districts. In the current financial year an allocation of Rs.133.33 crore has been made for the budget.

Family Welfare

Centre has been taking over the funding of all the 1.34 lakh ANMs in sub centres to facilitate filling gaps in the critical posts and improving coverage and quality of FW services.

With States taking over the funding of the staff in PPC and RFWC, adjusting these persons against existing vacancy will improve functional status of the PHC and CHC. As these persons are adjusted against vacant posts these States may not face any major financial hardship.

Nutrition

Adequate attention is being given for:

Focusing the attention on the need for changed strategies for combating under-nutrition;
Prevention of under nutrition through nutrition education;
improving infant and child feeding practices;
appropriate intra familial distribution of food;
Achieving significant reduction in the current high under -nutrition rates through universal screening of persons belonging to vulnerable groups to identify undernourished persons; Identification of under-nourished infants, children, and targeting food supplementation to them; Fulfilling the PMs announcement on August 15, 2001, of providing foodgrains to undernourished adolescent and pregnant and lactating women by providing ACA to the States for this purpose; and
Operatinalisation of the convergence between nutrition, health, and family welfare services at Centre, State and field levels.

Urban Development Sector

In the aforesaid sector, the following priority areas have been identified in the Tenth Plan and major initiatives as given below have been set in motion:

Focus on urban reform agenda;
Reduction of urban poverty ratio by five percentage points by 2007;
Focus on provision of basic civic amenities in the urban areas; and
Decentralization and empowerment of Urban Local Bodies (ULBs) as envisaged in the 74^th Constitutional Amendment.

Urban Reform Incentive Fund (URIF):

The new initiative with an allocation of Rs.500 crore for reform-linked incentive to State Governments was proposed by the Finance Minister in his Budget Speech 2002. The HUD Division formalised this initiative and in consultation with the Ministry of UD&PA, the guidelines were finalised. The allocation of funds to the State governments under URIF is made as additional Central assistance to annual plans of States based on the share of each State in the total urban population of the country. The process of release of funds is initiated by the States individually entering into a Memorandum of Agreement with the Ministry addressing the Reform in the following areas:

- Repeal of the Urban Land Ceiling and Regulation Act;
- Rationalization of stamp duty in phases to bring it down to no more than 5 per cent by end of Tenth Plan period;
- Reform of Rent Control Laws to remove rent control at lease prospectively;
- Introduction of computerized process of registration;
- Reform of Property Tax so that it may become a major source of urban local bodies, and arrangements for its effective implementation with collection efficiency of 85 per cent by the end of Tenth Plan period;

- Levy of reasonable user charges, with full cost of O&M being collected by end of Tenth Plan period; and
- Introduction of double entry system of accounting.

Study on Problems of Slums in Delhi

The Committee to study the problems of slums in Delhi was constituted by the Planning Commission under the Chairmanship of Shri Charti Lal Goel. The Committee brought out its report in June, 2002. The report suggested both short and long term programmes, which involve a number of agencies, and most importantly, pinpoints the decisions which need to be taken with regard to land, financing of housing, project co-ordination and the time horizon within which these are to be achieved. The clear objective should be that the targeted clusters should no longer share slum characteristics.

The other important recommendations of the Committee are, a sane land policy, decision on in-situ upgradation, creation of structures such as social housing corporation and slum board, credit support, and coordinated action by all civic agencies. The Committee also recommended for conducting a comprehensive survey, a bigger role for DDA, reasonable limits to the growth of the present Delhi, integration of Delhi & NCR plans, protection of public and cleared lands, law enforcement, land acquisition for relocation, obtaining external assistance and credibility of resettlement programmes etc.

Eradication of Manual Scavenging

As desired by the Prime Minister’s Office, Planning Commission had prepared ‘The National Action Plan for Total Eradication of Manual Scavenging by 2007’. In this action plan, the manner for achieving convergence of the legal, financial, technical provision of the programme with support from Non-Government organisations, for total conversion of dry latrines and economic rehabilitation of manual scavengers, has been worked out. The Action Plan is currently under consideration by the Government of India.

POSTS

The Department of Posts has taken a number of initiatives in the last couple of years with a view to upgrading the quality of services and products by optimising usage of modern technology. Various new services have been introduced for faster transmission of funds such as electronic funds transfer, warrant payment and international money transfer. The e-post services, in particular, introduced by harnessing the potential of Information Technology, has enabled the customers to receive and send e-mail messages through postal counters, thus bridging the digital divide between citizens having access to computers and those who do not have the facility.

Electronic Fund Transfer

Electronic Fund Transfer Scheme was launched with a pilot project in October, 2001. This service leverages the VSAT network of the Department to facilitate end-to-end fund transfers by banks such as UTI, IDBI, HDFC and ICICI on behalf of the corporate sector as well as the capital market. The early success of the service in moving funds more rapidly than any existing system in the country has prompted the RBI to consider leveraging it for the entire banking sector. The service is presently available in all State/UT capitals and more than 70 other locations.

International Money Transfer Service

This service, operated in association with Eastern Union, provides the customers the facility of receiving remittances from more than 190 countries on a real time basis. The service is currently available in nearly 400 post offices and has delivered remittances in excess of US dollars 40 million since April, 2001. The Western Union platform has the capability of providing a series of domestic as well as international remittance services.

Distribution of Mutual Funds & Bonds

Since February 2001, a growing network of nearly 200 post offices is distributing select mutual funds and bonds such as IDBI, Principal/Prudential, ICICI, SBI, ICICI Capital and RBI Bonds. The service while extending the reach of the capital market of the country, also provides the common man easy access to market based investment options. As structural changes take place and banking and small saving options decline, this service has the potential of allying the department with a sunrise sector of the Indian economy.

Warrant Payment

The post office provides a single window facility to issue and pay out warrants across the country, thereby using national resource for furthering economic development. At present, the service is available in all State/UT capitals and other locations covering more than 600 post offices across the country.

E-Bill Post

Introduced as a pilot project on January 31,2002, through 20 post offices in Bangalore and 10 in Kolkata, the project aims at providing better services to its customers by harnessing full potential of information technology through the network of postal counters all over the country. With its initial success at Bangalore, this service will be extended to the other parts of the country shortly.

E-Post Service

In an effort to bridge the digital divide between people who have access to computer and internet and those who do not have these facilities, the internet based e-post service was launched as pilot project covering 200 post offices in 5 States – Andhra Pradesh, Kerala, Goa, Maharashtra and Gujarat. The service provides delivery of hard copy of e-mail messages received over Internet through designated post offices in these States and also enables customers not having such a facility to send e-post/e-mail messages using e-post facility. This service is expected to be extended all over the country shortly.

Multi-purpose Counter Machines

Considering the need for providing the benefit of technology to customers, high priority was accorded to the computerisation of counter services. As on March 31, 2002, 8, 361 PC-based multipurpose counter machines have been installed all over the country facilitating various counter operations through a single window system.

Postal Life Insurance

A new insurance scheme has been introduced to give protective cover maximum limit of Rs.20,000 to physically handicapped persons in the age group of 19 to 45 years in rural areas.

‘Mukhya Dak Ghar’ Scheme

‘Mukhya Dak Ghars’ (MDGs) have been set up in 106 districts without Head Post Offices, thus providing postal facilities in a self-contained manner at district headquarters. Action is now underway to extend the concept of MDGs to other post offices, which have large volume of counter transactions, particularly in savings bank, so that they too can function independently and provide speedier service to their customers.

Data Post 2001

Data Post 2001″ – a new product service, was introduced by the Business Development Directorate of the Department of Posts (DoP) as part of the revenue generating activity. The product envisages collecting and maintaining comprehensive data on households and business houses, which would be of interest to direct marketing companies.

Greeting Post – A Premium Product for All Festivals

The Department launched a scheme – ‘Greeting Post’ comprising a series of greeting cards for all occasions. The entire range of attractive greeting cards with prepaid postage envelopes is a unique concept first time ever in India.

Postal Facilities in Villages

It was decided that letterboxes would be installed in villages all over the country with a population of 300 or more, if no post office has been provided so far. To increase the availability of the stamps and stationery in the rural areas, the scheme of Panchayat Sanchar Sewa Kendras (PSSKs) has been made more attractive by increasing the fixed allowance, permissible to PSSK agents. All Gram Panchayat villages where opening of branch post office is justified on distance and population norms, will be given immediate preference for provision of PSSK. So far, 677 PSSKs have been opened in the country. The target is to open another 5, 000 PSSKs during the 10^th Plan period.

‘Grameen Sanchar Sewak’ Scheme

In a major initiative to ensure that the benefits of the ongoing telecom revolution percolate down to everyone citizen of rural India, the Prime Minister launched a pilot project, namely the ‘Grameen Sanchar Sewak’ (GSS). This project has been conceptualised to provide accessibility to public telephone to the rural population at their doorsteps by using the latest Wireless in Local Loop (WLL) technology. The scheme is being implemented through the ‘Grameen Dak Sewak’ (GDS,) delivery agents of the department, to be called the ‘Grameen Sanchar Sewaks’. These employees will work as the franchisees for the Bharat Sanchar Nigam Limited (BSNL) in the rural areas. This initiative of the Government is expected to strengthen the rural telecom network of the country, where currently about 30.3 per cent of the total telephones in the country are in operation.

National Philatelic Museum

The Department has set up a National Philatelic Museum, which has a record of all Indian stamps issued so far, in addition to a large collection of foreign stamps. The museum provides information with regard to the postal history of India, as well as that of India’s philatelic heritage.

Computerised Multi-Counter Service at Leh

A fully computerised multi-counter service centre has been set up at Leh head post office.

Public Grievance Cell and Citizen’s Charter

A scheme has also been started for handling of complaints on the website – www.indiapost.org/ccclongin.asp. This has also been started in December, 2002. The public grievance cell of the DoP was inaugurated and a Citizen’s Charter has been released. The charter reaffirms the commitment of the Department towards improving its services and making it more efficient and responsive to the needs of the customers.

Agreements with Financial Institutions

India Post has entered into agreements with various financial institutions such as Prudential ICICI, the IDBI, the Western Union, the SBI Mutual Fund, the UTI Bank and Master Card International for marketing and distribution of value added financial products and services to the customers. Venturing into new services will benefit the department as well as public at large.

Speed Post Passport Service

Speed Post Passport Service have been launched and extended to all national speed post centres. The Ministry of External Affairs has evolved a partnership with DoP for accepting passport applications through speed post offices. The step is one of the key initiatives of the DoP to develop business opportunities and customer focus.

POWER

Power for All by 2012

The Ministry of Power has set an ambitious goal for itself – ‘Mission 2012: Power for All’, to provide reliable, affordable and quality power. In order to provide power to all by 2012, additional capacity of 1,00,000 MW will have to be set up in the next decade. Following initiatives have been taken in this regard:

- A blueprint for power sector development has been prepared, which is an integrated strategy for the sector till the year 2012.

- Capacity addition plans for 41,110 MW have been finalised for the Tenth Plan Period (2002-07).

- Outlay for power sector for the Tenth Plan period has been enhanced to Rs.1,43,000 crore, an increase of approximately 214 per cent over the Ninth Plan outlay.

The Ministry has taken a comprehensive and realistic review of power projects and prioritised, those which can be commissioned in the Tenth and Eleventh Plans.

Major Legislative Initiatives

Electricity Regulatory Commission Act, 1998 has been promulgated.

Central Electricity Regulatory Commission (CERC) has been constituted and operationalised since July 1998.

Regulatory mechanism is being progressively adopted in the States.

Enacted on October 1, 2001, the Energy Conservation Act came into effect on March 1, 2002. The Act provides for efficient use of energy and its conservation.

Bureau of Energy Efficiency has been set up in March, 2002, to effectively coordinate with designated consumers and agencies.

Electricity Bill 2001 was introduced in Parliament in August, 2001. The Bill seeks to replace the three existing Acts, viz. The Indian Electricity Act, 1910, The Electricity (Supply) Act, 1948 and The Electricity Regulatory Commission Act, 1998. The salient features of the Electricity Bill 2001 are: National Electricity Policy; rural electrification; open access in transmission; mandatory State Electricity Regulatory Commissions (SERCs); phasing out of subsidies and stringent penalties for theft of electricity etc. The amendments approved by the Standing Committee would be moved in Parliament in the current session.

Reforms in the Power Sector

The toughest roadblock in power sector development was the poor financial health of the State Electricity Boards (SEBs), which in turn, are mainly due to poor performance on the distribution front. The major factors responsible for financial sickness of SEBs are: skewed tariff structure leading to unsustainable cross subsidies; huge transmission/distribution losses, largely due to outright theft and unmetered supply. It has been estimated that thefts alone cause a loss of about Rs.20,000 crore annually and the lack of accounting and accountability in distribution.

MoUs/MoAs have been signed with 25 States. 22 States have set up SERCs and 13 SERCs have issued tariff orders; as per recommendations of high-powered committee, the outstanding dues of States payable to CPSUs amounting more than Rs.41,000 crore have been securitised as one time settlement with the clear understanding that they will pay their current dues. Tripartite agreements have been signed with 24 States as a follow-up to the Chief Ministers’ Conference in 2001. This would help the States to clean up their books and enable them to raise resources to fund their developmental schemes. In addition, the central utilities would also be able to meet the equity requirements and leverage them for their expansion schemes.

The Government has notified the limit for techno-economic clearances at Rs. 5,000 crore, to cut down administrative delays and to decentralise power to approve schemes. To introduce transparency, efforts have been made to post all information relating to tenders and documents on the website of the Ministry. A Special Purpose Vehicle is being set up by the Central Public Sector Units of the Ministry to take up afforestation and environment measures. Captive power policy of the Government has been drafted and circulated to the States. It is planned to utilise their surplus capacity of captive power plants by channelising this power into the grid. A Committee has been set up for financing of power projects to raise funds for an additional capacity of one lakh MW over the next 12 years. Demand side management has been introduced to flatten the demand curves (introducing time of day tariffs and metering). A new system of matching time and load profiles for different zones in the country has been introduced. A new system of matching time and load profiles for different zones in the country has also been introduced.

Accelerated Power Development Reform Programme

For enhancing the commercial viability of the distribution system, a nation-wide Accelerated Power Development Programme was launched by the Ministry in February, 2001. The scheme was formulated to finance specific projects relating to:

- Renovation and modernisation/life extension/uprating of old power plants (thermal & hydel); and

- Upgradation & strengthening of sub-transmission and distribution network (below 33 kV of 66 kV) including energy accounting and metering in the distribution circles in a phased manner.

For a quick turnaround of the power sector, a need was felt to restructure the concept from merely an investment window to also being a mechanism for supporting power sector reforms in the States linked to the fulfilment of certain performance criteria by way of benchmarks. Accordingly, a new programme called Accelerated Power Development Reform Programme has been introduced.

A six-level interconnection strategy was evolved with thrust being provided at each level of operations. Financial incentives in the nature of grant matching with reduction in gap between cost of supply and revenue; sanction of projects totalling Rs.16,600 crore, for which Rs.1,956 crore has been released. An action plan has been formulated for renovation and modernisation of old thermal and hydro units and funds under AG&SP available with subsidy of 3 per cent on interest rate from PFC and REC for R&M of old plants. Nearly, Rs.9, 000 crore of loan would be made available.

Rural Electrification

Large pockets of the country still do not have access to electricity. There are 80,000 villages, which are still unelectrified, out of which 18,000 are situated in remote and inaccessible areas. The Ministry has decided to electrify all villages by the end of the Tenth Plan and all households by the end of the Eleventh Plan. Village electrification has been included under the Prime Minister’s Gramodaya Yojana. Under this programme the process of release of funds has been simplified and Rs.502 crore annual allocation for loan assistance by REC has been made.

For villages and hamlets electrification at 3 per cent and tribal and Dalit ‘bastis’ electrification at one per cent, which will be waived off on successful project implementation; States have been allowed to access ‘Rural Infrastructure Development Fund’; Village electrification has been speeded up with 5,000 villages likely to be electrified during current year; ‘Accelerated Rural Electrification Programme’ for Tenth Plan with 4 per cent interest subsidy – Rs.594 crore provided for the Tenth Plan; Allocation enhanced from Rs.175 crore to Rs.600 crore under Minimum Needs Programme; Implementation of ‘Kutir Jyoti’ programme has been intensified – Budget provision of Rs.100 crore (for about 5,66,000 single point connections).

Renovation and Modernisation

Immense potential is available for achieving additional generation through R&M works. Many units have completed their normal design life and these units could be given a fresh lease of life by carrying out R&M/life extension works. Keeping this in view, the Government has accorded a high priority to the R&M programme in the country and has taken major initiatives in this regard. A perspective plan has been formulated for R&M of the existing generating capacities.

In order to help the SEBs/power utilities in the process of R&M programme, the Government is providing loan assistance at concessional interest rates through Power Finance Corporation under Accelerated Generation & Supply Programme for R&M works. The Government is also providing grants for carrying out Residual Life Assessment studies. Under programme for generation, evacuation and refurbishment scheme, loan assistance for O&M of the power station is also being provided through PFC.

In order to improve the overall performance of existing generating stations, the Government is advising SEBs for improvement in O&M practices and introduction of modern management systems.

The Power Trading Corporation was set up in 1999 and identified as the nodal agency to deal with exchange of power between India and Nepal. Modified Payment Security Mechanism for PTC has been finalised.

The Crisis Resolution Group was set up in January 1999 to resolve the ‘last mile’ problems of the independent power producers, leading to financial closure of projects with total investment of Rs.10, 097 crore.

Improved performance in fresh additions with 18,000 MW of new generating capacity and 35,000 ckm of H.T.transmission lines have been added during the current five years block against 16,000 MW and 26,000 ckm in previous five year block period; enhanced generation performance during current five year block period of 2, 470 BUs compared to 1, 850 BUs during the previous block; yearly generation at beginning of the five years block of 422 BUs has improved to about 530 BUs (average yearly growth rate of more than 5 per cent); PLF of thermal stations has increased in the country from 64.7 per cent to 71.9 per cent and in Central stations from 70.4 per cent to 76.9 per cent; Inter-regional power exchange capability of 2630 MW at beginning of the five years block period has more than tripled with capability now at 8000 MW; Central Electricity Authority (CEA) has accorded techno-economic clearance to 39,000 MW of generating projects and 9000 ckm of transmission schemes during the period.

Awareness Campaign

In order to focus public attention on the need to shed the ‘business-as-usual’ approach and undertake speedy reforms in the power sector, and enlisting public participation, the Ministry of Power launched a countrywide ‘Awareness Campaign’ in 2001. More than 2,000 public interaction/road shows were conducted in every district of the country for sharing with the citizens the plans that have been drawn up for transformation of the power sector. Efforts are being made to cover the wide spectrum of stakeholders.

In addition, five international conference-cum-business-meets have been organised on the themes of (i) Transmission, energy management and convergence, (ii) Distribution, (iii) Non-Fossil fuel generation, (iv) Fossil fuel generation and (v) Optimising existing capacity to optimise investment in the power sector.

Bureau of Energy Efficiency has prepared an action plan covering ten thrust areas for implementation of Energy Conservation Act. Energy Audit is being undertaken in several office buildings, hospitals etc. indicating a saving potential of 20 to 30 per cent. The Government is committed to set an example by implementing the provisions of the Energy Conservation Act in all its establishments as a first initiative. To begin with, the Bureau has begun to conduct energy audit in Rashtrapati Bhawan, Parliament House, South and North Blocks, Shram Shakti Bhawan, AIIMS, Safdarjung Hospital, Delhi Airport, Sanchar Bhawan and Rail Bhawan. Energy Audit in Rashtrapati Bhawan, Prime Minister’s Office, Shram Shakti Bhawan, Sanchar Bhawan and Rail Bhawan has already been completed.

Hydro Power Development

A hydel Policy has been introduced, which lays down mechanism for increasing investment in the sector to harness untapped potential. With untapped hydro potential of more than 1,50,000 MW the following efforts have been made to identify and prioritise hydro development:

- Ranking study completed by CEA identifies 399 hydro schemes with an aggregate capacity of 1,07,000 MW, which is to be developed. The study has been conducted basin wise and category wise.

- Three-stage clearance system for expediting hydro schemes have been taken up in central sector, with a potential of more than 20,000 MW under stage I & II development.

National Training Policy for the Power Sector

The Standing Committee on Training & Development has submitted its final report devising a training strategy and time-bound action plan for its implementation. The Government has accepted the recommendations made by the Committee and resolves to adopt the same through active involvement of all organisations in the power sector.

Perspective Research & Development Plan for Next 15 Years

The Standing Committee on Research & Development has submitted a perspective plan for the next 15 years. The draft action plan is presently under consideration.

NTPC commissioned 500 MW units at Talcher and Simhadri projects, nine and four months ahead of schedule.

Baspa hydro electric project, 200 MW being constructed in private sector also commissioned ahead of schedule.

AT&C losses in majority of identified circles have started exhibiting reduction.

Anti-theft legislation has been enacted in six States.

High voltage distribution system and distribution automation up to transformer level through SCADA have been introduced in Andhra Pradesh.

Acceleration in feeder metering has been brought about.

NTPC has ventured into distribution.

RAILWAYS

Indian Railways, the premier transport organisation of the country and the second largest network of its kind in the world under single management. It has initiated a number of passenger-friendly steps during the last five years that have brought about considerable improvement in safety, punctuality of trains, passenger amenities, hassle-free and fast movement of passenger and freight trains. During the 150^th year of its operation this year, Indian Railways has undertaken a number of reforms and administrative restructuring aimed at furthering its inherent strength as the lifeline of the nation.

Some of the noteworthy achievements of Indian Railways, during the period. Include: Constitution of the non-lapsable Special Railway Safety Fund (SRSF) of Rs.17,000 crore to replace the ageing assets of Railways; territorial re-adjustments of zones by creating seven new zones to step up efficiency; new efforts to mobilise funds from within the country and multi-lateral agencies for modernisation of the network; announcement of the National Rail Vikas Yojana by the Prime Minister; enhanced financial and administrative powers to General Managers; rationalisation of both passenger fare and freight structure; constitution of RailTel Corporation and Indian Railway Catering and Tourism Corporation; introduction of computer based Unreserved Ticketing System; releasing of the status paper on Indian Railways; putting out tender notice on internet to achieve greater transparency; and, above all, making General Managers and Divisional Railway Managers accountable for safety.

The strategic importance of Railways, in times of national emergency and natural calamities, has gone up during the last five years. The behemoth, which entered the 150th year of its operation in April, 2002, has announced introduction of sixteen Jan Shatabdi trains, which are almost similar to the prestigious Shatabdi trains, in speed and comfort, and at the same time most affordable to the common man.

Territorial Readjustment of Zones and In-House Reforms

In order to bring about greater efficiency in administration, speedy implementation of on-going projects, better customer care, reduction of work load on General Managers, Indian Railways has decided to create seven new zones by a territorial re-adjustment of existing zones. The Ministry has recently initiated steps to implement the decisions of the Union Government, taken in 1996 and 1998, to create new zones based on the recommendations of the Railway Reforms Committee -1981. The new zones, having limited financial burden on Railways, will have a thinner, leaner, efficient and modern administrative set up. All the new zones would be functional from April 1, 2003.

Since it was felt for a long time that enhanced financial and administrative powers of the General Managers of zonal railways and production units will translate into better management and customer care, as per the orders of the Ministry, General Managers can now finalise contracts worth upto Rs.15 crore of works and stores of sanctioned projects as against the earlier limit of Rs.8 crore. They have also been given rate-reducing powers, to quote station to station rates, to attract and retain traffic on commercial considerations. Forty five out of nearly sixty store items, which were till now being centrally procured by the Railway Board, have been decentralised for procurement by Zonal Railways.

National Rail Vikas Yojana

With a view to accomplishing strategically important projects within a stipulated period of time, Prime Minister, Shri Atal Bihari Vajpayee has announced the National Rail Vikas Yojana on the Independence Day. This non-budgetary investment initiative for the development of Railways is a tribute to Indian Railways, which is celebrating its 150^th anniversary. Under the scheme, which is being drawn up at present, all the capacity bottlenecks in the critical sections of the Railway network will be removed at an investment of Rs.15,000 crore over the next five years. These projects would include:

Strengthening of the golden Quadrilateral to run more
long-distance mail/express and freight trains at a higher speed of 100 kmph.

Strengthening of rail connectivity to ports and development of multi-modal corridors to hinterland.

Construction of four mega bridges – two over river Ganga, one over River Brahmaputra, and one over river Kosi.

Accelerated completion of last mile and other important projects.

New steps towards safety and security

Safety of 13 million passengers that Indian Railways serve every day is of paramount importance to the system. Over the years, apart from the regular safety norms followed, the network has taken a number of steps through innovative use of technology and stepped up training to its manpower to enhance safety standards. Constitution of Rs.17,000 crore non-lapsable Special Railway Safety Fund (SRSF) to replace the arrears of ageing assets of Railways over the next six years, has been a historical move in this direction. A number of distressed bridges, old tracks, signalling system and other safety enhancement devices will be replaced during this period. As far as budget for safety is concerned, Rs.1,400 crore were allocated in the revised estimate for the year 2001-02 and Rs.2,210 crore for the year 2002-2003. Extensive field trials of the Anti-Collision Device (ACD), indigenously developed by Konkan Railways, is going on and once deployed across the Zonal Railways. This innovative technology will help Railways reduce accidents due to collision between trains.

Security of Railway passengers is at present a responsibility shared between the Railway Protection Force (RPF) and the Government Railway Police (GRP). Efforts are on to amend the Railway Act to give more powers to the RPF in ensuring security of passengers on trains and within railway premises. Deployment of Women Police Force has been made for security and assistance of women passengers.

Improving Financial Health

The financial position of Indian Railways has been improving slowly but steadily over the last two years. Some of the highlights of the financial performance during 2001-02 include: improved operating ratio from
98.8 per cent to 96.6 per cent, savings in ordinary working expenses of Rs.1,487 crore; and, Depreciation Reserve Fund (DRF) balance up from 78.04 crore during March last year to Rs.632.99 crore this year.

Railways has established a new milestone in incremental freight loading during July this year by carrying 5.70 million tonnes of goods in excess of target. Freight loading for the last financial year crossed the target and attained 492.31 million tonnes. The revised freight target of 515 million tones in 2002-2003 has been achieved.

New Trends in Passenger Amenities

During the Budget speech this year, the Railway Minister has announced introduction of 24 new express/mail and sixteen Jan Shatabdi trains as a tribute to the travelling public of Railways, which is celebrating its 150^th year. In all, 329 new express/mail trains have been introduced, routes of 244 trains extended and frequency of another 68 trains increased during the last three years to cope up with demand. Besides, 50 new trains would be introduced in 2003-2004.

To take care of the unreserved segment of the passengers, a new pilot project on computer based unreserved ticketing has been launched this year. Of the 13 million passengers served by the network everyday, nearly 12 million are unreserved passengers. To cater to this huge segment, computer based ticketing systems have been launched for Delhi area and will be extended to all stations in Delhi very soon and in due course extended throughout the country. With this, unreserved tickets can be issued even from locations other than the boarding station and will reduce crowds at booking offices and stations.

Indian Railway Catering and Tourism Corporation with the assistance of Centre for Railway Information Systems has launched an online ticketing facility, which can be accessed through website www.irctc.co.in.

The period witnessed revolutionary changes in the use of IT in Railways and computerised reservation facilities were added at 455 new locations. At present, these facilities are available at 758 locations in the country covering about 96 per cent of the total workload of passenger reservation. Computerised reservation related enquiries about accommodation availability, passenger status, train schedule, train between pair of stations have been made web-enabled.

A pilot project for issuing monthly and quarterly season tickets through Automated Teller Machines (ATMs) has been launched in Mumbai and has been found to very successful. Another pilot project for purchasing tickets including monthly and quarterly season tickets through Smart Card has also been launched.

A ‘National Train Enquiry System’ has been started in order to provide upgraded passenger information and enquiries. This system provides the train running position on a current basis through various output devices such as terminals in the station enquiries and Interactive Voice Response System (IVRS) at important railway stations. So far, the project has been implemented at 98 stations. The Railways has also launched website, www.indianrail.gov.in through which information regarding reservation status of booked passengers, rules, fares etc. is available.

Freight Operations Information System (FOIS)

Computerisation of freight operations by Railways has been achieved by implementing Rake Management System (RMS). Such FOIS terminals are available at 235 locations spread across different Zonal Railways. RMS application is providing the facility of rake based consignment tracking and pipe-line, train/rake operations, stock holding, train and stock inter-change, terminal handling performance, loco holding etc.

Railways have established their own intra-net ‘Railnet’. It envisages networking between Railway Board, zonal headquarters, divisional headquarters, production units, and training centres.

Sterling Performance by PSUs

The public sector undertakings of the Railways, especially IRCON and RITES, scored commendable achievements during the period. IRCON International has achieved a record turnover of Rs.900 crore during 2001-02 and the foreign exchange earnings of this prestigious organisation have increased six-fold over the years. At the international level, IRCON is at present executing different projects in Malaysia, Bangladesh and Indonesia. The PSU has registered a strong presence in the international scenario by its sterling track record.

RITES, another prestigious PSU under the Ministry of Railways, has scaled new heights in performance, profit and dividend to the shareholders. Its turnover increased from Rs.172 crore in 1999 to Rs.283 crore in 2002. For its sterling performance, RITES secured the prestigious ISO-9001 Certification this year. The company has also entered into export/leasing of locomotives in different countries in Asia and Africa. RITES is operating all over the world, including Columbia, UK, Iran, Malayasia, Myanmar, Bangladesh, Sri Lanka, Tanzania , Uganda , Ethiopia, Turkmenistan and Uzbekistan .

Excellent Performance by Railway Finance Corporation

Indian Railways Finance Corporation Limited secured excellent rating for fourth year in succession by the Department of Public Enterprises on the basis of the performance targets. Besides, Standards and Poors’, the international credit rating agency, also reaffirmed the sovereign ratings to IRFC. The Corporation has been making profits and paying dividends.

New Corporation for Tourism and Catering

Internet based ticket booking has been launched by IRCTC in Delhi, Chennai, Bangalore, Mumbai and Calcutta this year. Hygienic and air-conditioned food plazas having consumer-friendly ambience have been opened at Pune and Chennai and license for similar plazas have been awarded for 17 more locations. In all, 50 such plazas have been opened by the end of this financial year across the zonal Railways. Railneer – packaged drinking water – is to be made available from December this year. More than 50,000 tourists have availed the value added tour package programme launched by the Corporation this year.

Innovative Technologies by Konkan Railway

Konkan Railway Corporation (KRC), the technological marvel of Indian Railways, has invented quite a few new technologies. Anti Collision Device (ACD), state-of-the-art indigenous technology of KRC is currently undergoing intensive field trials and is capable of avoiding collision between trains .

Sky bus metro is another innovative, economic and eco-friendly mass rapid transportation solution devised by Konkan Railways. Self Stabilising Track (SST) devised by KRC, which is undergoing trials at present, will help Railways run the fastest train in the near future and will make tracks much more safe and sustainable.

Private Sector Participation

The participation of both private and public sectors in developing rail infrastructure has gone up during the last three years. A joint venture company was formed with Pipava Port authorities to provide broad gauge connectivity to Pipava port. MoUs have been signed between Ministry of Railways and the State governments of Andhra Pradesh, Karnataka, Maharashtra, West Bengal, Tamil Nadu and Jharkhand in developing rail infrastructure in these States.

Telecommunication – New Trends

To give improved telecommunication systems on Railways, Optical Fibre based communication systems has been adopted and laying OFC has increased from 1,730 route kilometre in 1999 to 7,700 route kilometre this year. RailTel Corporation has been created to make a nation-wide broadband multimedia network by laying optical fibre cable along the Railway tracks. This system will provide better operational and passenger amenities and additional revenue to Railways.

New Technologies

India became the first developing country and the 5^th country in the world to roll out the first indigenously built “state-of-the-art” high horse power three phase electric locomotive when the first such loco was flagged off from Chittranjan Locomotive Works(CLW). CLW has been achieving progressive indigenisation and the cost of locomotives has come down to the level of Rs.13.65 crore.

Diesel Locomotives Works, Varanasi has produced state-of-the-art 4000 HP AC/AC diesel locomotive in April this year. These locos are capable of hauling 4,800 tonne freight trains at a speed of 100 kmph and can run continuously up to 90 days at a stretch without any major maintenance.

Exhibition on Wheels

The Railway Minister flagged off a special exhibition on wheels as part of the 150^th year celebrations recently. This special train, which depicts the strength and dynamism of Railways, will be touching almost all places in the country including the Metros before reaching Delhi in April this year. Railways organised a glittering function in Mumbai when the system re-enacted the historical moment of the first train run in India between Mumbai and Thane. In the capital, the Prime Minister released a special logo and mascot to launch the yearlong celebrations, which will help bring Railways further close to the people and strengthen its glittering glory.

Heritage Status

Darjeeling Himalayan Railways attained the World Heritage Status from UNESCO and the tableau based on the Railways has bagged second prize during the Republic Day parade-2001. Fairy Queen, the oldest functioning steam engine in the world, which finds a place in the Book of World Records got the Heritage Award at the International Tourist Bureau, Berlin in March, 2000. On the operational front, Delhi Main station entered the Guinness book for having the world’s largest route relay interlocking system.

Social Obligations and Care for Weaker Sections

The services offered by Railways, both on freight and passenger segment, is highly subsidised. During the devastating cyclone in Orissa and the earthquake in Gujarat, Railways assisted in rescue and relief operations to the praise of one and all.

Senior citizens, students and disabled persons enjoy concessional benefits from Railways. New initiatives in this area include reduction of age limits for special concession to senior citizens from 65 to 60 years; blind and mentally challenged persons can now travel in AC classes on concessional rates. Free second class Monthly Season Tickets (MSTs) for school-going children upto tenth standard for travel between home and school was also introduced.

Tie-up with Foreign Railways

Indian Railways is in constant touch with Railways across the world to introduce state-of-the-art facilities in its system. Towards this, a Memorandum of Understanding was signed during 2002, during the Eighth Session of the Indo-Austria Joint Economic Commission held in Vienna. This seeks to promote and deepen long-term infrastructure-specific cooperation between Indian and Austrian Railways to their mutual benefit.

A three-day International Conference of Union of Railways was organised by Indian Railways in New Delhi in 2002, in which hundreds of delegates from various industries and Railways around the world participated.

ROAD TRANSPORT AND HIGHWAYS

Since Independence, road transport, the very backbone of trade and commerce and, consequently, the economic growth of the country, has been under-utilised. However, in a span of five years, under the able leadership of Shri Atal Bihari Vajpayee, the Government has taken far-reaching infrastructural development initiatives, with special focus on the road transport sector.

National Highways Development Project (NHDP)

The NHDP is a major initiative towards qualitative and quantitative enhancement of National Highways, involving development and four by six laning of about 13,150 km of roads at a cost of over Rs. 54,000 crore (at 1998-99 prices). In the words of Hon’ble Prime Minister, “The Project envisages a Golden Quadrilateral linking the Delhi-Kolkata-Chennai-Mumbai-Delhi circuit, a North-South Corridor connecting Kashmir to Kanyakumari and a similar East-West Corridor connecting Silchar to Saurashtra. It is indeed the largest and the most ambitious infrastructure project undertaken in independent India – a highway to prosperity. The project will not only further integrate our great land through a network of world-class highways, it will also place India on the fast lane to socio-economic development”.

The programme set by the Prime Minister includes:

The Golden Quadrilateral (GQ) or Phase-I of NHDP: Delhi-Kolkata-Chennai-Mumbai-Delhi circuit, involving 5846 km of road and costing over Rs. 25,050 crore. The date of completion of GQ project is December 2004. The Government would ensure that it is completed within the specified time frame.
North-South & East-West Corridors or Phase-II of NHDP: From Srinagar to Kanayakumari and Silchar to Porbandar, involving a distance of 7,300 km and costing Rs. 30,000 crore. The date of completion of this project, earlier given as December 2009 has now been advanced to December, 2007.
Other works include port connectivity to major ports: The major ports (Haldia, Paradip, Vishkapatanam, Chennai, Tuticorin, Cochin, Mangalore, Mormugoa, Jawahar Lal Nehru Port Trust, Kandla) are also to be connected by about 400 km of roads. Other projects involve about 600 km of road development.
No railway level crossing on NHDP: On the GQ alone, a total of 75 railway over bridges are being constructed.

The work on NHDP is proceeding as per plan and till February 28, 2003, out of the total GQ length of 5,846 km, work has been completed on 1,327 km and is under implementation on 4,383 km. Work on the remaining 136 km will soon be awarded. Out of the total North-South and East-West Corridor length of 7,300 km, work has already been completed on 639 km and is under implementation on 407 km. Civil work contracts of about 3,314 km would be awarded in the year 2003 followed by award of balance works of around 3,055 km in the year 2004 so as to complete the entire Phase-II work by December, 2007.

NHDP’s prime focus is on developing international standard roads with (i) enhanced safety features like better riding surface, better road geometry, better traffic management and noticeable signages, (ii) divided carriageways and service roads, (iii) grade separators, over bridges and underpasses for uninterrupted traffic flow, (iv) bypasses, and (v) wayside amenities alongwith ambulances and cranes.

Another striking feature of NHDP is that Indian firms have won a majority of contracts. Out of the 121 ongoing contracts worth Rs. 17,943 crore, as many as 78 contracts worth Rs.10,163 crore have gone to Indian firms, 32 contracts worth Rs.5,940 crore to joint ventures while only 11 contracts worth Rs.1,840 crore have gone to foreign firms.

NHDP: Immense Benefits

According to a World Bank study, the completion of GQ alone will result in an annual saving of approximately Rs. 8,000 crore (at 1999 prices) on account of fuel savings, reduced wear and tear of vehicles and faster transportation.

Tremendous Boost to Cement and Steel Industries

An annual average consumption of 25 to 40 lakh metric tonne of cement and 2.5 to 3.0 lakh metric tonne of steel during 2001-04 have been estimated on just the GQ, thereby providing thrust to cement and steel industries. In fact, the impact is already being felt.

Huge Employment Generation

The Project will provide direct employment to 2,50,000 workers (skilled and unskilled) per day and 10,000 supervisory staff per day, resulting in employment generation of 18 crore man-days for Phase-I.

Incentives to Road Construction Industry

In order to encourage road construction industry within the country, the Central Government has offered many incentives, some of which are:

Total custom duty exemption on road building equipment not being produced in the country. Twenty-one such items have been identified;
Income- tax-exemption for 10 years from NHDP earnings;
In the Build-Operate-Transfer (BOT) schemes, grant upto 40 per cent can be given;
The NHAI Bonds have been exempted from Capital Gains;

Encouraging Private Sector Participation

The Government has already announced several incentives to encourage private sector participation in road development. Twenty-seven projects valued at about Rs. 4,300 crore have already taken up on a Build, Operate and Transfer (BOT) basis, out of which collection of user fee in 18 projects is in progress. Construction work in remaining 9 projects is in progress and user fee would be collected after completion of the projects. To address the concerns of private entrepreneurs, apart from giving several incentives, the Government has decided to offer some projects on annuity basis. Eight projects valued at about Rs 2,400 crore have already been awarded on annuity basis. Works in all these projects are in different stages of progress. Eleven more projects have been identified for taking up under BOT. Two model concession agreements, one for project costing upto Rs.100 crore and the other for projects costing more than Rs.100 crore have been prepared.

Central Road Fund revamped

The present Government has taken a number of notable steps to arrange finances for the nation’s roads. In a historic decision, a nominal cess has been introduced on both petrol and diesel. The funds thus collected are to be put aside in a non-lapsable Central Road Fund (CRF) for the development of a modern road network. This has resulted in an allocation of Rs. 1,192 crore, Rs. 5,590 crore, Rs. 5,962 crore and Rs.5,880 crore from the revamped CRF during 1999-2000, 2000-01, 2001-02 and 2002-03, respectively, as per details given below:

(Rs. in crore)

Year	National Highways	State Roads	Roads of inter-State connectivity & of Economic Importance	Rural Roads	Rail – ways	Total
1999-2000	1192	–	–	–	–	–
2000-2001	1800	985	5	2500	300	5590
2001-2002	2100	962	100	2500	300	5962
2002-2003	2000	980	100	2500	300	5880

It is for the first time that such large funds are being mobilised for the development of State roads and rural roads all over the country.

Improvement of Riding Quality Programme (IRQP)

At the end of the Eighth Plan, the total length of National Highways in the country was only 34,298 km. Renewed focus on the road sector during the Ninth Plan period has resulted in a length of 23,814 km. being added to the National Highway network. The total length of National Highways as on date is 58,112 km. The Government’s emphasis has been on improvement of riding quality of National Highways for the comfort of the road users. In addition to the National Highways covered under NHDP and other highway development projects, there are about 44,000 km of National Highways, whose maintenance is being carried out from the funds available from Budget. IRQP was initiated in 1999 to improve the riding quality of National Highways other then NHDP. Riding quality of about 29,000 km length has been improved from plan and non-plan funds under IRQP. Riding quality of about 6,000 km is being targeted for improvement during 2003-04.

New Road Development Initiatives

Apart from NHDP, the Government has proposed to take up 48 projects involving a length of about 10,000 km of National Highways for widening to four lanes on BOT basis. The cost of the projects is estimated at Rs.40,000 crore and work will be awarded in 4-5 years. During 2003-04, it is proposed to award contracts for 3,000 km length. To ensure a reasonable return to the BOT operators, the Government will provide grants for meeting the shortfall in the revenue on case to case basis.

The tremendous thrust to road development under the present Government can be gauged from the fact that whereas in the last 50 years, only 556 km of national highways were four-laned, but in just 9 years between 1999-2007, nearly 15,000 km are being four-laned.

Control of National Highways (Land and Traffic) Act, 2003

A legislation on Control of National Highways (land and traffic) for prevention of encroachment, traffic regulation etc. on National Highways has been enacted. The salient features of the Act are as follows:

Appointment of Highway Administration and its authorised officers for enforcing the provisions of the proposed legislation and establishment of Tribunal for hearing appeals against the orders of the Highway Administration and its authorised officers;

Prevention of unauthorised occupation of highway land and their removal;

Control of access points to the National Highways;

Regulation of different types of traffic permitted on the National Highways;
Control of use of road land for public utilities, drains, etc.; and

Issue of licenses or lease deeds for temporary use of the National Highways land.

Exemption for Gallantry Award winners

It has been decided recently that vehicles of Gallantry awardees, viz. Param Vir Chakra, Ashok Charkra, Mahavir Chakra, Vir Chakra and Shaurya Chakra will not have to pay users’ fees for use of tolled National Highways and bridges.

Road Transport Initiatives

In view of the large number of road accidents taking place in the country, a number of road safety measures have been initiated by the Government, which encompass the educative aspect for generating road safety awareness on one hand and on the other, relate to a better enforcement as also to improvement in road conditions based upon various engineering-based solutions. As a result, despite the increasing number of high performance motor vehicles coming on public roads and higher speeds on roads owing to improvement in road conditions, the number of accidents per 1,000 vehicles has come down from about 10 accidents per 1,000 vehicles in the year 1997 to about 8.09 by the year 2000.

Between 1996-97 and 2002-03, more than 36,000 drivers of heavy motor vehicles in the unorganised sector have been provided refresher training. A large number of NGOs have been associated in the road safety programme. An expenditure of about Rs. 65 crore has been incurred in the five years period on various aspects of road safety related.

A number of measures have been taken to tighten emission norms and safety standards for motor vehicles:

Bharat Stage – I emission norms which are akin to Euro –I norms have been extended thought the country from 1.4.2000;

The emission standards for agricultural tractors were notified on 8.9.1999. The next generation norms for tractor are to come into force from 1.6.2003;

Bharat stage –II norms, which are akin to Euro-II norms were introduced for the first time in the country in Delhi from 1.4.2000 in respect of light motor vehicle. These norms have been extended to all categories of motor vehicles in the year 2001 to the four Metros namely Delhi, Mumbai, Chennai and Kolkata. From 1.4.2003, these norms are in force in Agra, Ahmedabad, Bangalore,Hyderabad, Kanpur, Pune and Surat; and

Fitment of catalytic converter has been made mandatory for all four-wheeled petrol driven vehicles for registration in four Metro cities from April 1, 1995 and in other 45 cities of the country from August, 1998.

While in developed countries, the phasing out of lead was done over a period of more than 10 years, the same was done over a period of 6 years only in our country.

Through an amendment of the Motor Vehicles Act, 1988 in August, 2000 use of environment friendly fuels like Compressed Natural Gas, Liquefied Petroleum Gas, Solar Power Electric Batteries etc. as automotive fuel have been legislated.

Through the Motor Vehicles (Amendment) Act, 2001, transport vehicles running on CNG have been brought under the permit and fare purview of the State governments.

The Central Motor Vehicles Rules have been amended in March, 2001 to tighten fitness norms for commercial vehicles.

Emission and safety norms for vehicles operating on CNG as also on LPG have been notified in the year 2001, which included testing, type approval and safety related aspects also.

Wearing of seat belts in motor vehicles fitted with seat belts has been mandated.

With a view to facilitating the victims/heirs of road accident victims in obtaining compensation, the Solatium Scheme, 1989 has been amended in the year 2000 to waive of the requirement for filing claims within a period of six months.

In May 2002, comprehensive amendments have been made to the Central Motor Vehicles Rules, which include prescribing of norms relating to issue of driving licence and registration certificate in Smart Card mode, use of red, white or blue light, use of watermark security paper for receipt of national permits etc.

Various road development projects and road transport initiatives of the Government during the last five years will result in immense economic and social benefits for our country, like:

- Employment generation;
- Thrust to road construction, cement and steel industries;
- Benefits to trade especially in movement of perishable goods such as agricultural produce from hinterland;
- Savings in vehicle operating costs;
- Faster, comfortable journeys;
- Reduced fuel consumption;
- Reduced vehicular pollution;
- Reduced maintenance costs;
- Safer travel; and,
- All-round development of areas.

RURAL DEVELOPMENT

Rural Development is the main pillar of nation’s development. The thrust of programmes is on all the round economic and social transformation in rural areas, through a multi-pronged strategy, aiming in the process, to reach out to the most disadvantaged sections of the society. In order to catalyse development in rural areas, during the last five years, top priority has been accorded to Rural Development, not only in terms of allocation of additional funds and resources, but also through introduction of new Programmes and restructuring the existing ones.

Swajaldhara – Potable Water to All

The Ministry has been mandated to make provision of safe drinking water to all habitations by 2004. To achieve this goal, in October, 1999, a new Department i.e. Department of Drinking Water Supply has been created in the Ministry.

A programme named “Sector Reform” based on demand responsive strategy and community participatory approach to rural drinking water sector was launched in 1999. So far, Sector Reform Projects for 67 districts of 26 States have been sanctioned with a total cost of Rs.2,060 crore and Rs.580.31 crore have been released, out of which Rs,156 crore have been utilised.

Encouraged by the success of Sector Reform Projects, a new initiative in rural drinking water named Swajaldhara has been launched by the Prime Minister on December 25, 2002. Under this initiative, as against the districts under Sector Reforms, panchayats, blocks and other beneficiary groups have been empowered to formulate, implement, operate and maintain drinking water projects. Ninety per cent of funds towards the project cost are provided by the Government and the beneficiary group has to contribute 10 per cent of the cost (5 per cent in case of gram panchayat/villages where at least 50 per cent of the population is SC and ST).

Considerable success has been achieved in meeting drinking water needs of the rural population over the years. Out of a total number of 14.22 lakh rural habitations in the country, 12.95 lakh habitations are fully covered. 1.12 lakh habitations have been partially covered and only 14,356 habitations are not covered.

Haryali – Key to Wastelands Development

To improve productivity of wastelands and improve the living standard of the rural poor, the Prime Minister has launched a new scheme called “Haryali” on January 27, 2003. Its aim is to strengthen and involved Panchayati Raj Institutions for the implementation of Watershed Development Programmes viz. Integrated Wastelands Development Programme (IWDP), Drought Prone Areas Programme (DPAP) and Desert Development Programme (DDP). Under this initiative, the Gram Panchayats would execute watershed projects with technical support from the Block Panchayat/ Zilla Panchayat who would act as Project Implementation Agency (PIA) for all watershed projects in a particular block.

The budget provision for the Department of Land Reforms which was pegged at about Rs.300 crore in 1997-2000 was enhanced to Rs. 900 crore in the last two years (2000-2002). It has been further enhanced to Rs.1,000 crore for the year 2002-03. A Pattadar Pass Book containing details of land owned by farmers has been released for adoption by the States.

In all, 17,579 watershed projects under DPAP and DDP, and 365 under IWDP have been sanctioned during the five years. The cost norms for the watershed development projects under the three watershed programmes namely IWDP, DPAP and DDP have been enhanced to a rate of Rs. 6,000 per hectare.

Pradhan Mantri Gram Sadak Yojana

The Prime Minister launched the Pradhan Mantri Gram Sadak Yojana (PMGSY) on December 25, 2000, with the objective of providing road connectivity through good all-weather roads to all unconnected habitations having a population of more than 1,000 persons by the year 2003 and those with a population of more than 500 persons by the end of the Tenth Plan period (2007). For the years 2000-01 and 2001-02 road works worth Rs.7,553.28 crore have been cleared.

Over 37,000 habitations are likely to be benefited and over 56,000 km of roads will be constructed upon completion of the road works already cleared under the PMGSY.

Eighty five percent of the road works cleared in the year 2000-2001 have been completed and 82.50 per cent of the funds released have been spent up to December, 2002.

Sampoorna Grameen Rozgar Yojana (SGRY)

The Prime Minister launched a new ambitious scheme on September 25, 2001 to provide additional employment in rural areas under the Sampoorna Grameen Rozgar Yojana (SGRY), with an annual outlay of Rs.10,000 crore. Fifty lakh tonnes of foodgrains amounting to Rs 5,000 crore will be provided every year free of cost to the State governments and Union Territories under the scheme. The remaining outlay of Rs 5,000 crore will be utilised to meet the cash component of wages and the material costs. Nearly 100 crore mandays of employment are envisaged to be generated through this scheme every year in the rural areas.

The Panchayati Raj Institutions are fully involved with this programme. The works to be taken up under SGRY are labour-intensive, leading to the creation of durable community assets.

Swarnjayanti Gram Swarozgar Yojana (SGSY)

The Swarnjayanti Gram Swarozgar Yojana (SGSY) is a new and holistic self-employment programme launched during the year 1999-2000. The SGSY aims at bringing all assisted swarozgari (beneficiary) above the poverty line by providing them income generating assets through a mix of bank credit and Government subsidy. A Self Help Group (SHG) consists of 10-20 persons belonging to families below the poverty line. In self help Group, they participate fully and directly take decisions on all issues that will help them in coming above the poverty line. Since inception, a total of 11.45 lakh self-help groups have been formed and 31.69 lakh Swarojgaris have been assisted. About 1 lakh groups have taken up economic activity.

Pradhan Mantri Gramodaya Yojana – Gramin Awaas

The Government has recognised shelter as a basic human requirement, which needs to be met on a priority basis. ‘Housing for All’ is the goal. Efforts are being made to end the shelterlessness by the end of the Tenth Plan period. Pradhan Mantri Gramodaya Yojana – Gramin Awaas was launched during 2000-2001. The objective of Indira Awas Yojana is primarily to facilitate construction of dwelling units and upgradation of existing unserviceable kutcha houses into pucca/semi-pucca houses by members of Scheduled Castes/Scheduled Tribes, freed bonded labourers and also non SC/ST below the poverty line in rural areas. Under Indira Awaas Yojana, the flagship rural housing programme of the Ministry, about 52 lakh houses have been constructed during the last five years.

Empowering the Panchayati Raj Institutions

Panchayats have been recognised as the backbone for the development of Indian villages. The year 1999-2000 was observed as the ‘Year of Gram Sabha’. During the years (1998-2002) panchayat elections held in the following States and Union Territories:

Andhra Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Orissa, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, West Bengal, Andaman &Nicobar islands, Dadara &Nagar Haveli, Daman and Diu and Chandigarh

An All-India Panchayat Adhyaksha’s Sammelan was held on April 5-6, 2002, in New Delhi to get a feedback from the Adhyakshas in order to revitalise and strengthen Panchayati Raj Institutions (PRI) in a time bound manner. It was resolved that State governments will ensure the implementation of the provisions of Constitution (73^rd Amendment) Act, 1992 and the provisions of Panchayats (Extension to the Scheduled Areas) Act, 1996 in its true spirit.

Restructured Central Rural Sanitation Programme

The Restructured Central Rural Sanitation Programme (RCRSP) was launched on April 1, 1999. The restructured programme is community-led and people-centric. Rural school sanitation has been introduced as a major component of the programme as an entry point, encouraging wider acceptance of sanitation by the rural masses.

A total Sanitation campaign has been launched to suit district specific requirements. The campaign is now being implemented in 185 districts with an outlay of Rs.2,032 crore. Under the Total Sanitation Campaign, 10,55,365 household latrines, 597 sanitary complexes for women, 15,267 toilets for schools and 1,117 ‘Balwadis’ toilet have been constructed so far.

Monitoring

In order to ensure that the allocations made for Rural Development Programmes are properly utilised and the poor beneficiaries receive the benefits intended for them in full measures, the Ministry has reconstituted a vigilance and monitoring committee

The Ministry has nominated Members of Lok Sabha as the Chairman/Vice Chairman of the distt. level vigilance & monitoring Committee in their respective constituencies. Members of Rajya Sabha are also nominated to states level vigilance & monitoring committee.

CAPART

Council for Advancement of People’s Action and Rural Technology (CAPART) has sanctioned 3,524 projects and released Rs.191.99 crore during the last five years.

The Council organised a large exhibition – SARAS-2001 – during the India International Trade Fair. The pavilion has been awarded gold medal by ITPO. SARAS-2002 bagged gold medal for the best display from ITPO.

SCIENCE AND TECHNOLOGY

The new Science and Technology Policy – 2003 was unveiled at the Indian Science Congress in Bangalore. It will provide the much-needed boost to scientific growth and research. It will strive to build a new and resurgent India that remains secure not only militarily but also socially and economically. It will also endeavour to ensure that science and technology truly uplifts the Indian people and indeed, humanity as a whole.

The allocation for scientific departments is being enhanced considerably, to garner a share of 2 per cent of GDP by 2007. Since 1998-99, the allocation for these departments has been going up considerably.

Indo-US Science Forum

The Indo-US Science forum was set up during President Clinton’s visit. It has taken up joint research in frontier areas of science, i.e. hydrogen energy and fuel cells, as alternative sources of energy. An Indo-US Meteorological Data Centre was also set up at the India Meteorological Department in New Delhi. All US and Indian satellite-based meteorological data will be available for research and analysis by scientists from both the sides.

The India Meteorological Centre, New Delhi will now serve as a global regional centre for climate change study because of the readily available infrastructure and expertise.

Cooperation with Russia

The Integrated Long-term Programme (ILTP) of Cooperation with Russia in Science and Technology has been extended for another ten-years. The focus this time is on joint commercialisation of Russian technology. So far, 146 joint projects have been identified for implementation. India proposes to procure from Russia two seismographs, one stationary and the other portable to evaluate the functionality of these instruments under Indian weather conditions for monitoring earthquake activity.

SARAS

‘SARAS’, a 14-seater light-transport aircraft poised for first test-flight in June, 2003. It was unveiled (Roll-out) at the air-show in Bangalore in February, 2003. More than 200 SARAS transport aircrafts would be in demand in its primary and secondary roles upto 2015. Even the Indian Air Force has expressed its interest in acquiring the plane. The SARAS is expected to usher in an era of vibrant civilian aircraft industry in India.

Jai Vigyan Mission

Twenty-one Jai Vigyan Mission projects, with the basic aim “Science in the service of common man”, are under successful implementation. The projects cover diverse fields like space, atomic, genetic engineering, electronics, science and technology, ocean development and Food Security. These programmes were taken up under the 10-point directive of the Prime Minister.

National Innovation Foundation

A National Innovation Foundation set up to encourage and support grassroot inventions with an initial corpus of Rs. 50 crore. From about 1,000 applicants in 2000, it is poised to cross 40,000 applications in 2003. Most of these innovators are either school dropouts or who have never gone to school. Many of these innovations are under the process of commercialisation.

Encouragement to Young Scientists

To encourage young scientists, the Government started Swarnjayanthi Fellowships from 1999. The fellowships fetch an attractive amount of Rs 25,000 per month and other support for research. Two special awards were also announced in the field of science for women. More technology parks for women are to be set up. They will have on display various kinds of tools and implements useful to the rural women folk.

Fuel Pellets from Municipal Wastes

Under the green technology programme, fuel pellets from Municipal wastes have been developed, as also an aspirated 4-cylinder engine for LCVs, meeting India-2000 emission norms and a battery powered electric car for pollution free driving. Steps have already been initiated for the development of green technologies, i.e. environment-friendly technologies.

New Innovations

A cheap simple hand-held computer ‘Simputer’ has been developed. It provides Internet and e-mail access in local languages with touch screen functions and micro-banking applications. Its future versions promise speech recognition and text-to-speech software for illiterate users.

An optical infra-red telescope of two-meter aperture has been installed at Hanle in Ladakh. This is the highest astronomical observatory in the world. The telescope is capable of remote operation. The satellite communication and control station of the telescope is located at Hoskote near Bangalore.

Under Technology Vision 2020, a new millennium technology leadership initiative has been launched. Missions for increasing agricultural productivity, health services, infrastructure and enhancing the capability of the Indian engineering industry are envisaged. A number of missions have already been launched and these include fly-ash mission, sugar technology mission and so on.

Another scheme envisages the setting up of “Technology Business Incubators” in and around academic and research institutions. This is to catalyse the growth of technology-based start-up units. The TBI provides a conducive environment and offers professional services during the start-up phase of the tenant companies (incubatees) for their sustenance and growth.

BIOTECHNOLOGY

A highly cheap, globally competitive diagnostic kit for HIV/AIDS costing Rs. 20 only, (compared to several dollars in the United States) has been developed and commercialised. This is most essential for identifying HIV carriers. India is one of the countries of the world, which has a high incidence of AIDS cases.

The strain of HIV-1 sub-type C, the most prevalent genotype in India identified. This has facilitated the development of an AIDS vaccine. Work on the vaccine is in advanced stage of development.

A cost-effective vaccine and diagnostic-kit for leprosy developed and fully commercialised. This is in great demand in the global market. This therapeutic vaccine is the first of its kind in the World.

India’s contribution in a ten-nation international effort to sequence rice genome has secured worldwide acclaim. The draft sequence of the rice genome is now complete. India and Switzerland have taken up joint research on Golden Rice i.e. a pro-vitamin A rich rice variety.

“Asmon”, a boon for asthma patients, has been developed and commercialised. It is a cheap, effective herbal remedy. With no-side effects, it is proving to be having high export potential.

Genetically modified (GM) Bt cotton has been introduced. Commercial production has been highly successful. So far no other crop has been allowed commercial production. However, GM tobacco, tomato, potato, brinjal, mustard, cauliflower and cabbage are under field trial.

The Indo-Russian Biotech Centre, set up at Allahabad, will deal specially with bio-informatics. This has come up at the IIIT Allahabad. Lucknow is being developed into a biotech city.

A surgical technique to regenerate organs in mammals, developed by an Indian doctor, has got a US patent. Cow urine distillate developed for enhancing anti-microbial effect of the antibiotic has also secured US patent.

BT Vision 2010

The Department of Biotechnology (DBT) has unveiled a document “Biotechnology” – A Vision (Ten-year perspective). It was released by the Prime Minister in September, 2001. The document outlines time-bound mission oriented inter-agency, inter-disciplinary projects to achieve the objectives as envisaged in it. The mission would be a well-directed effort for the generation of products, processes and technologies to provide food, environment, health and nutritional security.

SHIPPING

A new Ministry of Shipping was constituted in November, 2001, for a rapid and overall development of shipping and ports. The NDA Government, in the last five years, has brought out requisite amendments to the existing Acts to extend fiscal support and has sanctioned a number of projects in the Shipping segments, which have benefited the country for its overall growth and to sail in progressive path.

Shipping sector activities cover various segments, viz. shipping lines, ship- building, inland water transportation and port sector. In all these areas, it has impressed with successful strides, namely acquiring new vessels, entering into new joint ventures and new joint container services, building up of oil tankers and passenger vessels against inland and export orders, and formulation of six new waterways to transport inland cargo.

As for major ports, due to enhanced capacity of handling cargo, now berths wait for ships and not vice-versa. Commencement of Sethu Samudram canal project is on the cards early next year to provide better connectivity between eastern and western coasts without going around Sri Lanka. An inter-government agreement on international North-South transport corridor agreement amongst India, Russia and Iran signed in May, 2002, will heap huge financial gains to India. Recently, a Maritime Shipping Agreement was also signed between India and Ukraine to increase cooperation between the two countries in the field of shipping.

Shipping Corporation of India (SCI)

The Government has decided to bring down its equity in SCI through the strategic sale of 51 per cent, from the present level of 80 per cent, and this will be completed this year.

Acquisition of New Vessels

Approval has been accorded to Shipping Corporation of India on December 14, 2001, to acquire two LR size crude oil tankers of 1,40,000 DWT each at a price of US $ 48.70 million per vessel. These will be engaged in transportation of import of crude oil, in place of foreign vessels and save substantial amount of foreign exchange.

New Joint Ventures

Approval was also accorded to SCI to invest equity in joint venture for the construction of two LNG vessels.

Joint Container Services

In January, 2002, SCI merged with other lines forming a new consortium and offering to trade a weekly container service in the Indian sub-continent/UK continent sector. SCI also launched another joint container service, viz. India Far East Express Two Services (INDFEX-2), at Chennai on June 16, 2002, linking the east coast of India to the northern Ports of China.

Outstanding Performance

SCI has been rated as an excellent performer under MoU rating for the 10^th Year a in row and its profit after tax for the year 2001-02 is Rs 242 crore and it has been declared a “Mini Ratna” Company.

Ship Building

Cochin Shipyard Limited (CSL) has delivered 5 tugs to port trusts and two passenger-cum-cargo vessels to Lakshadweep, apart from repairing 63 crafts and ships. CSL has received a letter of intent for construction of two Aframax tankers from Shipping Corporation of India on November 7, 2001. CSL has delivered 93,000 DWT oil tankers Maharishi Parshuram to SCI on October 8, 2002. CSL also secured an export order for construction of a pilot launch vessel from National Petroleum Construction Corporation (NPCC) UAE at US $ 8.2 million. It also secured an order to build an Air Defence Ship. It is a profit- making shipyard and has made a good profit during 2002-2003.

Hindustan Shipyard Limited, Visakhapatnam

HSL built a 1,200 passenger cum 1,500 million tonnes cargo vessel for Andaman and Nicobar Islands and delivered the same in December, 1999. HSL also delivered two 100 passenger capacity vessels to Andaman and Nicobar Administration and a 50 tonne Bollard Pull Tug to the New Mangalore Port Trust. HSL also delivered one product carrier to SCI and secured order for 11 passenger vessels including one 700-passenger vessel and 3 dredgers/tugs. HSL has been nominated as the Yard for repair of EKM submarine by Ministry of Defence. Such indigenous repairs of submarine will be carried out in the country for the first time.

Hooghly Dock & Port Engineers Ltd. delivered 2 Hydraulic Surface Dredgers to Inland Waterways Authority of India (IWAI).

Fiscal Support for Indian Shipping

Section 33AC of the Income Tax Act has been restored for the shipping business in order to allow appropriation of profits for creation of reserves. This will allow shipping companies to build up reserves for acquisition of new ships. The procedure for import of ships has been liberalised in the new EXIM Policy with effect from June 15, 2001. The depreciation rates for ships have been enhanced from 20 to 25 per cent with effect from April 1, 2001.

The Expert Committee (headed by Rakesh Mohan) recommendations of January, 2002, viz. tonnage tax for shipping companies and rationalisation of taxation regime for Indian seafarers sailing on Indian ships, vis-à-vis foreign ships, have been taken up with the Ministry of Finance. Shipbuilding subsidy policy has been modified to include private sector shipyards and to increase the number of vessels covered. Procedure for import of ships including second hand ships has been liberalised. The Ministry has also taken steps for the participation of Indian Shipping Companies in the transportation of LNG. Approval has been given for the construction of one 400 and one 700-passenger vessel to cater to passenger service in Andaman and Lakshadweep Islands. A large number of amendments to the Merchant Shipping Act have been carried out to bring it at par with the Global Maritime Law. To counter the ongoing menace of terrorism and stress on global security system, a new Act namely, Suppression of unlawful Acts Against Safety of Maritime Navigation and Fixed Platforms on continental Shelf Act enacted. Multimodal Transportation of Goods Act, 1993 has been amended thereby simplifying and rationalising procedures. Continuous Discharge Certificate (CDC) cum Seafarer Identity Documents Rules have been liberalised and age limit enhanced to give more opportunity to candidates from rural areas to join Merchant Navy.

Adoption of International Rules

India adopted nine international rules relating to maritime shipping under the aegis of the International Maritime Organisation (IMO). These are (1) Convention for the suppression of Unlawful Acts against the safety of maritime navigation (SUA 1988); (2) International convention relating to intervention of the high-seas in cases of oil pollution casualties 1969 (intervention 1969); (3) Protocol for suppression of Unlawful Acts against the safety of a fixed platforms located on the continental shelf; (4) Protocol of 1992 to amend convention of civil liability of oil pollution damage 1969; (5) Protocol of 1992 to amend the international convention on the establishment of an international fund for compensation of oil pollution damage; (6) Protocol of 1988 relating to International convention of the safety of life at sea 1974; (7) Protocol of 1988 relating to international convention on load lines; (8) And, the International convention on research and rescue 1979 convention came into force in India with effect from July 17, 2001. Subsequently, National Research and Rescue Board were constituted under the Director General Coast Guard on January 28, 2002 and (9) Accession of International convention on limitation of liability for maritime claims 1976.

An inter-Government agreement on International North-South Transport Corridor Agreement between India, Russia and Iran was signed and in its first coordination Council meeting held on May 21, 2002, at St. Petersburg in Russia, the modality for transport of goods through new land and sea route between India and St. Petersburg via Iran has been worked out. India will reap huge financial gains by becoming signatory to the NSCA as it is open to other countries also. The new corridor could compete well with the Suez Canal route, since it is expected to cut the travel time by 10-12 days against 35 days as also operational costs by about 20 per cent.

Navigation

Work on the coastal Vessel Traffic Management Services (VTMS) with 9 radar stations along the coastline of the Gulf of Kutch, at an estimated cost of Rs 165 crore, has begun.

A scheme of remote control monitoring of lighthouses at an estimated cost of Rs. 6.5 crore is under implementation. Two remote control stations have been established at Okha and Vodarevu in Gujarat.

A new light house station at Pir Sinai creak is proposed, while a new light house at Roser Point in Andaman Nicobar Island to be commissioned shortly.

Maritime Training

Indian Institute of Maritime Studies (IIMS) at Mumbai, on the pattern of the IITs is established to give a qualitative boost to maritime training in India..

Inland Water Transport

The Government has announced a comprehensive new Inland Water Transport Policy to accelerate growth of Inland Water Transport Sector and encourage private sector investment and participation. Accordingly, necessary amendments were made in the Inland Waterways Authority of India (IWAI) Act – 1985 in 2001 to authorise it to raise bonds in the open market. With effect from April 1, 2002 Inland Vessel Building Subsidy Scheme has been introduced that provides 30 per cent subsidy. Enhancing dredging capacity and the construction of permanent terminals on National Waterways 1 and 2 are in progress. National Inland Transport Development Council was set up to work jointly with the States for promotion of IWT. The Ministry has taken decision to reorganise Central Inland Water Transportation Corporation Ltd. to operate more efficiently. Centrally sponsored scheme for State governments has been revised to provide 100 per cent grant assistance to North-Eastern States including Sikkim and 90 per cent grant to other States for development of their waterways.

IWAI have convinced industrial houses and PSUs to transport inland cargo through national waterways. Over dimensional cargo of M/s Power Grid Corporation Ltd. was transported from Kolkata to Buxar in record time in June, 2002. Six new waterways have been formulated. The Asian Development Bank has agreed for a technical assistance grant of US $1 million for updating studies of various waterways proposed by IWAI for external funding. The Planning Commission has made a provision of Rs. 668 crore for the 10^th Plan for the development of this sector as against Rs. 308 crore in the 9th Plan.

Port Sector

India has 12 major ports administered by the Central Government and 148 minor ports administrated by State governments. The 12^th major port at Ennore, north of Chennai, for handling thermal coals was dedicated to the nation by the Prime Minister in April, 2001 and it became operational with unloading facilities of 16 million tonnes of coal and the harbour is capable of accommodating facility for 60 million tonnes of imports and exports. As a result of the ongoing thrust on development of additional capacity of these 12 major ports, the traffic handled during the last five years has succeeded a growth rate of 6 per cent. The ports of Mumbai, Marmugao, New Mangalore and Cochin have also attracted record number of tourists on cruise ships.

Jawahar Lal Nehru Port Trust (JNPT) became the first port in India to join the Million club and is ranked as the 3^rd fastest growing container port in the world. Container traffic at Jawaharlal Nehru Port would exceed 1.8 million TEUs during 2002-2003. Operational improvements and opening of private container terminal has facilitated direct sailing of vessels carrying 3,000-4,000 containers from Jawaharlal Nehru Port. Action has been initiated for widening and deepening of shipping channel to accommodate larger vessels. Container volumes increased by over 50 per cent. In 2000-2001 for the first time cargo-handling capacity at major ports exceeded the actual traffic, resulting in de-congestion and reduction in demurrage etc. Average pre-berthing detention of vessels at major ports during 2001-02 was reduced to 12 hours from the earlier figure of 29 hours in 1997-98. Cargo traffic at major port at the end of 2002-2003 is likely to exceed a record level of 300 million tonnes per annum. Mechanised facilities for loading 20 million tonnes of coal became operational at Paradip Port. Overall, addition of 122 million tonnes of port handling capacity was created during the last five years. Due to effective handling of port operations pre-berthing detention is almost negligible at the ports and now berths wait for ships.

The total capacity in the major ports exceeded the cargo handled and the capacity created in the ports as on March, 2002 was around 344 million tonnes against the traffic of 288 million tonnes.

The implementation of the Bongirwar Committee recommendations have resulted in quick dispersal of duty drawbacks after loading of containers, removal of bond and bank guarantee from coastal trans-shipment operators at Kandla and round the clock working regime at entry gate by customs at other ports.

A new depth-based dredging control system has been introduced at Cochin port for reduction in maintenance dredging costs over the years, which will be introduced at other ports shortly.

A trans-shipment hub is proposed to be set up at Vallarpadam near Cochin Port to enable mainline vessels to come in, for avoiding trans-shipment. This would reduce transaction costs of containerised cargo substantially.

For improving efficiency and removing procedural bottlenecks electronic data interchange has been made operative at the ports of JNPT, Mumbai, Cochin and Chennai and would be operational at Kolkata and Tuticorin shortly.

As a part of private participation in infrastructure initiated by the Shipping Ministry, container terminals have been handed over to Port of Singapore Authority (PSA) at Tuticorin and P&O ports at Chennai, and a consortium consisting Dubai Ports Authority at Visakhapatnam. Further twenty-nine projects amounting to Rs 6,554 crore for adding to port capacity of 94.05 million tonnes have been identified, of which 17 projects have already been approved by the Government. Road connectivity has improved dramatically with financial participation of ports like Kandla, JNPT, Mormugao, Chennai and Vizag in the road building exercise.

The work on Sethu Samudram Canal Project would commence soon and would be completed in a time bound manner. The project would provide better connectivity between our eastern and western coasts without going around Sri Lanka, thereby reducing the travel distance by about 400 nautical miles and 36 hours of shiptime. The Ministry has also given its approval for the first port based Special Economic Zone at Cochin.

There has been a considerable improvement in the labour related issues at ports. Industrial relations have been cordial and the mandays lost have been almost negligible. For the first time, a national tribunal has been set up to adjudicate on certain issues relating to rationalisation and reduction in manning scales in cargo handling and manning of crafts.

With the lowering of retirement age to 58 and the introduction of VRS scheme, the manpower at major ports and dock labour board has come down to 79,950 from 1,02,055. Merger of Chennai DLB (Dock Labour Board) with the Chennai port resulted in reduction in handling cost by approximately Rs. 25 crore annually. The DLBs of Mumbai, Cochin, Goa had earlier merged with respective port trust.

SMALL SCALE INDUSTRIES

Ministry of Small Scale Industries is the nodal Ministry for the formulation of policy, promotion, development and protection of Small Scale Industries in India. The Ministry of Small Scale Industries and Agro and Rural Industries (SSI&ARI) was created on October 14, 1999 and was bifurcated into two separate Ministries namely, Ministry of Small Scale Industries and Ministry of Agro and Rural Industries on September 1, 2001. The Ministry of SSI designs and implements the policies through its field organisations for the promotion and growth of small-scale industries.

While development of SSIs is primarily the responsibility of the State/UT governments, the Central Government has taken several steps to improve their performance by implementing various schemes, such as integrated infrastructure development, technology upgradation, marketing and entrepreneurial development.

On August 30, 2000 the Prime Minister announced a comprehensive Policy Package for the promotion and development of small-scale sector to enhance its competitiveness, both domestically and globally. The policy package consists of enhanced fiscal and credit supports, better infrastructure and marketing facilities and incentives for technology upgradation.

Technology Upgradation

In the changing scenario of economic liberalisation, National Small Industries Corporation Limited (NSIC) has increased its training capabilities by entering into high-tech areas such as computer application, electronics. It has set up Software Technology Parks (STPs) for the SSI units to facilitate software export. NSIC also provides concessional terms in its lending for development of rural and backward areas and also extends this facility to units promoted by entrepreneurs from the weaker sections of the society.

Credit Guarantee Fund

The Credit Guarantee Fund Scheme for Small Industries is being implemented by the Government through the Credit Guarantee Fund Trust for small industries with the corpus fund shared by the Government of India and the Small Industries Development Bank of India in the ratio of 4:1. The objective is to extend guarantee cover for mitigating credit risk upto 75 per cent of the collateral free credits subject to a maximum credit of Rs. 25 lakh per unit. The scheme is being operated all over the country.

Rehabilitation of Sick Units

The Government has taken various measures to facilitate timely identification and rehabilitation of potentially viable sick units, which inter-alia include institutional mechanism in the form of State-level Inter-Institutional Committees (SLIICs), special rehabilitation cells in banks and state financial institutions and elaborate guidelines issued by the RBI for extending rehabilitation assistance to eligible units.

Khadi Package

The Prime Minister announced the Khadi Package on May 14, 2001 involving an outlay of Rs. 1,215.85 crore for the accelerated development of Khadi and Village Industries (KVI) programmes. The package components include long-term rebate policy, insurance for artisans and working capital assistance.

Initiatives for North Eastern Region

The Government has announced a number of initiatives for the development of SSIs in the North Eastern region at the national convention on SSIs on August 30, 2001. A task force comprising all North-Eastern State Ministers in-charge of SSIs has been set up specifically for that region.

Marketing Assistance Scheme

SSIs face problems in marketing of their products. To help small-scale industries in marketing their products, NSIC has been acting as facilitator to promote marketing of SSI products. NSIC has, over a period, devised a number of innovative programmes for the support of SSIs in the field of marketing, both in and outside the country. These include raw material assistance, internal marketing, and consortia approach for small units producing the same products.

Export Marketing

The NSIC has adopted a ‘single window’ assistance approach for the export of products of small-scale industries. The Corporation has concerned itself with development of small units, which have gradually acquired the capability to independently handle exports of their products. Many small units, which had started their export business with the assistance of the NSIC, have now acquired sufficient experience so as to be able to export directly.

Loans for SSIs

With a view to providing loans in time to SSIs, the Reserve Bank of India (RBI) has advised the banks that all loan applications upto Rs. 25,000 should be disposed off within two weeks and upto Rs. 5 lakh should be disposed off within a period of four weeks provided the loan applications are complete in all respects.

Access to SSI Information

Steps have been taken to improve access to SSI information included comprehensive knowledge portal launched for SSIs on August 30, 2001 (www.smallindustryindia.com) and (www.laghu-udyog.com) .

SOCIAL JUSTICE AND EMPOWERMENT

The Ministry is committed to ensure social justice and empowerment of the disadvantaged and marginalized sections of society such as Scheduled Castes, religious and linguistic minorities, socially and educationally backward classes, persons with disabilities, victims of alcoholism, drug addiction, juvenile social maladjustment, welfare of prisoners, children in need of care and protection and welfare of the aged.

Welfare of Scheduled Castes (SCs)

A major revision of list of Scheduled Castes covering over 100 communities since 1976 has been effected through constitutional amendments. The Constitution has been amended to restore reservation for SCs in promotion and to restore the benefit of seniority to SCs/STs promoted by virtue of rule of reservation. Special cells have been set up in 19 States and one Union Territory for effective implementation of the Protection of Civil Rights Acts, 1955 and the Prevention of Atrocities (SCs & STs) Act 1989.

National Scheme of Liberation and Rehabilitation of Scavengers implemented in Mission Mode as announced by the Prime Minister. Under the scheme, Andhra Pradesh, Assam, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu and Uttar Pradesh governments have come forward to set up sanitary marts in their areas.

Economic Development

Under the Central scheme of Special Central Assistance (SCA), which was introduced in 1979-1980 to support SC families to enhance their productivity and income, 100 per cent Central assistance is extended to supplement the efforts of the States/Union Territories (UTs) for ensuring rapid socio-economic development of the Scheduled Castes. Central assistance of Rs.2072.52 crore was released to the States/UTs for Special Component Plan for SCs.

The net of Special Component Plan (SCP) for SCs has been widened to ameliorate the economic condition of more than 28 lakh SC families in 27 States and UTs. The State governments and UT Administrations have been instructed to set up projects for utilisation of Special Central Assistance for SC population who constitute 16.73 per cent of the country’s population (1991 Census).

The loans given by the National Scheduled Castes and Scheduled Tribes Finance and Development Corporation (NSFDC) have been dovetailed along with subsidy provided under SCA for giving a single window, full package of assistance to SC families living below the poverty line.

The National Safai Karamcharis Finance and Development Corporation (NSKFDC) have introduced two new schemes for empowerment of scavengers and safai karmacharis. These are Micro Credit Finance Scheme at 5 per cent rate of interest and interest free loan scheme to NGOs for promotion of self-help groups. Rs.175.80 crore have been provided in the last five years for rehabilitation of scavengers in dignified occupations.

Scheduled Castes Development Corporations (SCDCs) are functioning in 25 States/UTs, of which 9 SCDCs serve the needs of the both SCs and STs. The SCDCs finance employment-oriented schemes covering (i) agriculture and allied activities including minor irrigation; (ii) small scale industry; (iii) transport and (iv) trade and service sector.

Educational Development

An amount of Rs.117.73 crore was released to 1,857 voluntary organisations for educational and vocational development of Scheduled Castes covering 2,44,790 beneficiaries.

Under post-matric Scholarship scheme for SC students, Central assistance of Rs.493.18 crore was released to States/UTs in last five years. The scheme, which has emerged as the biggest educational scholarship scheme of the Government, has been amended to link scholarship rates with Consumer Price Index of Industrial Workers by increasing the income ceiling for eligibility.

The Ministry also implements a scheme to provide textbooks and other books as a support in pursuing higher education to Scheduled Caste students. Rs.9.11 crore were released to States/UTs for establishment of book banks in educational institutions for the benefit of 95,476 SC students.

The coaching and allied scheme provides assistance to Scheduled Caste youth for getting admission into educational institutions as well as for employment in Group ‘A’ and Group ‘B’ category of posts. This facility is provided through Government institutions, universities as well as commercial organisations imparting coaching. So far an assistance of Rs.11.97 crore has been provided for 39,614 students belonging to Scheduled Castes under the scheme. Another Rs.5.99 crore were released to States/UTs for providing special coaching to 3512 students of Scheduled Castes.

To provide hostel facilities to Scheduled Caste students — both boys and girls residing in remote and rural areas, the Ministry gives grants to State governments for construction of hostels in their States. The Ministry supported State governments for construction of 660 hostels for SC boys and girls in the last five years by releasing Rs.118.70 crore.

Under pre-matric scholarship scheme, Rs. 36.18 crore were released as Central assistance to benefit the students. The scheme assists the children of scavengers, flayers and tanners to pursue education upto matriculation level.

The National Overseas Scholarship Scheme for SC/ST students has been revised with modifications providing for financial assistance to meritorious students for pursuing higher studies abroad in specified fields of Masters Level Course and above.

Dr. Ambedkar National Scholarships, a scheme initiated by Dr. Ambedkar Foundation, was launched on February 20, 2003, aims to assist meritorious students belonging to Scheduled Castes and Scheduled Tribes in pursuing higher and technical education.

Backward Classes

The National Backward Classes Finance and Development Corporation has launched a “New Swarnima” Scheme for women belonging to Backward Classes living below the poverty line.

About 12.50 lakh students awarded pre-matric scholarship to continue their education. About 4.50 lakh students awarded post-matric scholarship for pursuing higher education and Ph.D level. Under the scheme of Hostels for OBCs over 12 thousand students have been provided facilities in the last five years. OBC candidates are given pre-examination coaching to enable them to compete on equal terms in various competitive and entrance examinations.

Under the scheme of Assistance to Voluntary Organisations working for the OBCs, an amount of Rs.5.44 crore has been provided to various NGOs from April, 1999, to March, 2002.

Minorities

The Government has launched several schemes for educational and socio-economic upliftment for minorities. The main focus of National Minorities Development and Finance Corporation (NMDFC) is on providing loans for self-employment to the poorer sections among the minorities at concessional rates of interest. During 1999-2000 to 2001-02, the Corporation disbursed Rs.225.28 crore to more than 64,273 beneficiaries to support their income-generating activities.

With a view to reach out to the poorest sections among the minorities the Corporation has taken up micro financing. It has launched a scheme known as “Mahila Samiridhi Yojana” for providing micro financing for imparting training to woman belonging to minority communities in tailoring, knitting, embroidery and allied trades.

The Maulana Azad Education Foundation has been set up as an autonomous non-political social service organisation to promote education among educationally backward sections of the society, particularly minorities. The foundation provides funds to NGOs for construction/expansion of schools, residential schools/colleges and upgrading facilities in educational institutions run by them. The Foundation has also launched two schemes, namely remedial coaching scheme and pre-examination coaching scheme.

With a view to protecting vacant Wakf properties from encroachers and to develop the same on commercial lines for generating more income for welfare activities, the Ministry provides Central assistance to the Central Wakf Council (CWC).

Welfare of Persons with Disabilities

It is estimated that India has about 5 crore disabled persons who need holistic rehabilitation. It involves a multi-sectoral approach and creation of conditions in which persons with disabilities can fully realise their potentials and live as independently and productively as possible. The Ministry is running various schemes for this purpose.

Over a hundred districts have been identified for providing comprehensive rehabilitation services at the doorsteps of persons with disabilities. Services identified for the District Disability Rehabilitation Centres (DDRCs) include setting up of composite rehabilitation and facilitation centres in collaboration with district authorities and utilising existing resources. Eighty-two such centres have been set up across the country and more to come up.

Also five Composite Regional Centres (CRCs) and four Regional Rehabilitation Centres (RRCs) for persons with spinal injuries have been set up. CRCs are for providing rehabilitation services for different kinds of disabilities and for creating infrastructure for training and manpower development. All the five Centres have become functional in Srinagar (Jammu & Kashmir), Bhopal (Madhya Pradesh Lucknow), (Uttar Pradesh), Guwahati (Assam) and Sunder Nagar (Himachal Pradesh). Four RRCs at Jabalpur, Mohali, Cuttack and Bareilly have started functioning for persons with spinal injuries and orthopaedic disabilities.

The national programme for rehabilitation of persons with disabilities has been launched in 82 districts for creating infrastructure at state/district/block and gram panchayat levels to provide comprehensive rehabilitation services to the disabled. From Tenth Plan, the scheme has been transferred to the States.

A scheme has also been approved for setting up of four Auxiliary Production Centres of Artificial Limbs Manufacturing Corporation of India (ALIMCO) to expand the production capacity and for easy availability of quality aids and appliances. ALIMCO started producing new items such as hearing aids. One auxiliary production centre has become functional at Bhubaneswar and work is underway for setting up the Jabalpur and Bangalore units.

The Scheme of Assistance to Disabled Persons for purchase/ fitting of aids and appliances aims to assist the needy disabled persons in procuring durable, sophisticated and scientifically manufactured standard aids and appliances that can promote their physical, economic, social and psychological rehabilitation. The scheme is implemented through voluntary organisations, national institutes under the Ministry, ALIMCO, Zila Panchayats, DRDA.

The National Trust for Welfare of Persons with autism, cerebral palsy, mental retardation and multiple disabilities operationalised with a corpus of Rs.100 crore from the Government. Under their reach and relief scheme 33-day care centres, 12 respite care centres and 32 residential centres have been funded through NGOs. This will benefit about 5000 persons with disabilities. Under the care giver’s Scheme 12,000 persons have been trained.

The Committee of experts including representatives from the corporate and voluntary sectors has identified 120 occupations at executive/management/supervisory levels and 945 occupations at skilled/semi-skilled/unskilled levels for employing disabled persons without compromising on the quality of work. The Ministry has notified a new list of posts suitable for employment of disabled persons after a review of about 1,500 posts by an expert committee. The earlier review was done in 1986. A pilot scheme has also been taken up in collaboration with Ministry of Rural Development for providing training and self-employment to persons with disabilities in the rural areas.

The office of the Chief Commissioner of Disabilities (CCD) set up. Out of 6, 394 petitions filed before the CCD, 6, 004 petitions disposed of. Recognising the difficulties faced by persons with disabilities in getting the disability certificate and availing concessions/benefits meant for them, all States have been asked to constitute medical boards and issue certificates through camp approach. Over 400 boards have been constituted and about 28 lakh certificates have been issued as per reports received by CCD. Uniform guidelines for issue of identity cards to the persons with disabilities by respective States/UTs have been issued in August, 2000.

To support entrepreneurial activity by the persons with disability, the National Handicapped Finance & Development Corporation (NHFDC) has been financing soft loans through State Channelising Agencies (SCAs). The NHFDC also implements a micro financing scheme, under which financial assistance is provided to disabled entrepreneurs for starting or augmenting income generation activities. Under the scheme, Rs.10, 000 per beneficiary is available.

Rehabilitation Council of India (RCI) has developed 69 courses during the year 2000-01 to enforce uniform standards in training of professionals in the field of rehabilitation of persons with disabilities. RCI has also started new schemes such as bridge courses for special teachers and paramedical staff, and training of primary health centre doctors.

A new scheme of national scholarships for persons with disabilities has been launched. 500 students will be covered every year under the Scheme who will be given scholarship for pursuing professional and technical courses.

Custom duty on hearing aid, crutches, wheel chairs and other appliances proposed to be reduced in Union Budget 2003-04. More concessions and exemptions of excise and customs duties proposed for disabled in budget 2003-04.

Social Defence Programme

The social defence programme aims at providing care and protection to victims of destitution, neglect and abandonment such as children and the aged.

Welfare of Children in Need

The Ministry under an Integrated Programme for Street Children has initiated ‘CHILDLINE’, a 24-hour phone service with toll free telephone no. 1098 for children in distress. The Ministry envisages CHILDLINE as a national Service in each city. It has expanded its services to 44 cities so far.

The national initiative for child protection is a campaign initiated through National Institute of Social Defence and Childline India Foundation. The aim is to establish links with the allied systems of child protection and rehabilitation. The allied systems include the police, health-care providers, judiciary, schools, transport system managers, the labour machinery, media, telecom, corporate sector and the community at large.

The guidelines for in-country adoption are being revised for facilitating common procedures on adoption in all States. Over 17,600 children have been adopted during the last six years through recognised agencies. Of these more than 10,000 children were placed in in-country adoption. Seventy placement agencies have been recognised by CARA.

The Juvenile Justice Act 1986 has been replaced by the Juvenile Justice (Care and Protection of Children) Act 2000, which makes a clear distinction between the juvenile offender and the neglected child. It provides for speedier justice and proper rehabilitation of children in need of care and protection.

Welfare of Older Persons

The National Policy for Older Persons (NPOP) was announced in January 1999 to meet their health, financial and emotional needs and to promote research and training facilities in geriatric care. A National Council for Older Persons was also constituted and operationalised.

A National Project on Old Age Social and Income Security (OASIS) has been drawn up to provide mechanism for life-long savings towards old age security and is under consideration by Group of Ministers (GoM) for implementation. This was the result of the need felt to enable workers in the unorganised sector to provide for their old age.

Tax concessions have been proposed for senior citizens in Budget 2003-04. ‘Varistha Pension Yojana’ for any citizen of above 55 years of age proposed to be introduced through the budget 2003-04 to ensure benefits at the rate of 9 per cent per annum on payment of a lump-sum amount.

Drug Abuse Prevention

Eight Regional Research and Training Centres have been established in different zones of the country, in order to de-centralise training, research and documentation on substance abuse in the country. Over 4 lakh beneficiaries are provided services at the counselling and de-addiction _enters every year.

The Ministry has taken up formulation of National Strategy on alcohol and drug demand reduction. A project seeking networking and convergence among various programmes of the Government of India and the States has also been undertaken in order to support rehabilitation of drug addicts. HIV/AIDS prevention programme was introduced in 100 treatment-cum-rehabilitation centres in collaboration with National AIDS Control Organisation (NACO).

SPACE

Vision 2025

A 25-year space vision has been unveiled. Having already achieved self-sufficiency in the fabrication of satellites, India is now nearing full self-reliance in launching capabilities. Having exclusive satellites for different services is the primary objective of the vision.

The indigenous cryogenic engine undergoing successful trials at the Liquid Propulsion Centre, Mahendragiri in Tamil Nadu, would be ready in another two years to help India attain full self-sufficiency in launching heavy satellites like the INSAT. However, India has been launching satellites like the IRS with the help of its own time-tested PSLV.

The EDUSAT, exclusive satellite for enhancing the literacy level, is programmed for launch by the indigenously built GSLV with cryogenic engine, from our own soil in 2005-06. This will provide a big boost to our ambitious distant education programme.

INSAT-3A and INSAT 3E are scheduled to be launched before middle of 2003. Nine satellites and six launch vehicle missions are programmed for the next two years. INSAT-3B, 3C are already in orbit. INSAT-3D is in advanced stage of development. Work on INSAT-4 series is currently underway.

The modified PSLV-C4 (Polar Satellite Launch Vehicle) was successfully flight-tested with METSAT in September 2002. Meant for exclusive meteorological services, it weighed nearly 1, 200 kg and this is the first time the PSLV designed for launching less than 1, 000 kg IRS satellites in sun synchronous orbit, placed the heavier METSAT in Geo-synchronous Transfer Orbit (GTO). PSLV-C-5 and PSLV-C-6 have been slated for launch during 2003-04.

GSLV in Two Years

The GSLV (Geosynchronous Satellite Launch Vehicle) is being readied for its second developmental flight shortly. When fully commissioned by 2006-07, it will launch INSATs from our own soil saving precious foreign exchange. Meanwhile, the Government has approved three GSLV operational flights during the Tenth Plan at a cost of Rs.945 crore.

Commercialisation

India is already into space commercialisation in a small way with the launch of Belgian, German and Korean satellites in polar orbit with PSLV. So far, it has launched five foreign satellites and the sixth one from Singapore is on the anvil.

STATISTICS AND PROGRAMME IMPLEMENTATION

The Ministry of Statistics and Programme Implementation is responsible for collection, compilation and release of various statistics, which are used as vital inputs for national planning, macro-economic analysis and policy formulation.

A biennial international award in statistics has been instituted recently in the memory of Prof. P. C. Mahalanobis to recognise the lifetime contribution of eminent statisticians from developing countries. The first Mahalanobis Award will be conferred on a statistician to be selected by a special committee at the 54^th Session of the International Statistical Institute, the Netherlands, to be held at Berlin in August, 2003.

National Sample Survey Organisation (NSSO)

Consumer expenditure surveys, under National Sample Survey (NSS), constitute the source data for the Planning Commission to estimate the people below the poverty line in the country. Based on the results of NSS 55^th round (1999-2000), the poverty ratio was estimated at 27.09 per cent in rural areas, 23.62 per cent in urban areas and 26.10 per cent for the country as a whole. During the golden jubilee celebrations of NSS in May, 2001, Prime Minister, Shri Atal Bihari Vajpayee observed: “I was reminded of the power of NSSO surveys, when it was revealed recently that there has been a reduction of as much as ten percentage points in the poverty ratio from 36 per cent in 1993-94 to 26.1 per cent in 1999-2000”.

Using the NSS 55^th round (1999-2000) data, the Planning Commission estimated that the overall employment grew by about one per cent per annum during 1993-94 to 1999-2000. The first ever survey on informal non-agricultural enterprises conducted under NSS 55^th round, revealed that this sector provided employment to about 94 million people in the country.

A series of reports, based on the 56th Round of NSS, have been released recently which was devoted to manufacturing sector, besides regular consumption-expenditure and employment–unemployment. The fieldwork of the survey was done during July, 2000 to June 2001. The 57th Round of the NSS was over in June, 2002 in which data on economic and operational characteristics of unorganised enterprises in the service sector (excluding trade and finance) was collected. The 58th Round of the NSS (July, 2002 – December, 2002) was earmarked for collection of data on disability, housing condition, village facilities and slum particulars besides household consumer expenditure and employment and unemployment. The yearlong survey of 59th Round, that started in January, 2003, is covering subjects like land and livestock holdings and debt & investment. The situation assessment survey – ‘A Millennium Study of Indian Farmers’ is also being conducted along with the 59th Round.

The working class family income and expenditure survey was conducted during 1999-2000 for a revision of the weighing diagram for Consumer Price Index number for industrial workers, on the basis of which dearness allowance to the Central Government employees is regulated.

NSSO has also started compiling literacy rates based on the data on educational status collected in the consumer expenditure schedule, so as to give the estimates of literacy rates for the intervening period of two population censuses. Pilot studies are also undertaken from time to time, in order to improve the quality of the estimates.

An international seminar on ‘Understanding socio-economic changes through national surveys’ was held in May, 2001 as a part of NSS golden jubilee celebrations, which was attended by eminent statisticians and economists from India and abroad.

The field operations division updated the Indian Crop Calendar, prepared by the Ministry of Agriculture on a priority basis, in consultation with the State Agricultural Statistics Authorities. The calendar provides useful information on agricultural practices prevalent in the country.

In view of a special request from Ministry of Social Justice and Empowerment to have latest information on disabled persons, NSSO included disability in its 58^th round survey during July-December, 2002 along with the subjects of housing condition and slums.

An expert Group on informal sector (Delhi Group) evolved a framework for capturing informal employment in the economy.

For revamping the Indian Statistical System, the National Statistical Commission was set up under the Chairmanship of Dr. C. Rangarajan January 19, 2000. In its report submitted in September, 2001, the Commission made far-reaching recommendations, which will result in improvement in credibility, timeliness and adequacy of various statistics in the statistical system.

Concerted efforts are on to modernise the functioning of NSSO as way back in 1998-99, an attempt was made for on-line transmission of survey data to processing centres. National Advisory Board on Statistics was reconstituted on February 27,1998, to strengthen the entire statistical system.

After a review of alternative data sources and methodology the base year of National Accounts Statistics was changed from 1980-81 to 1993-94.

A national policy on dissemination of statistical data was approved in 1998-99 with provisions like pricing of data, nodal agency for dissemination of statistical data.

Central Statistical Organisation (CSO)

A schedule called ‘Short Schedule’ was introduced for the first time during Annual Survey of Industries (ASI), 1999-2000 for collecting information on some important parameters for compilation of quick estimates of national income. A comprehensive and detailed classification of industrial activities, called as National Industrial Classification – 1998 (NIC-98), was evolved and released.

The CSO released time series data on ASI from 1959 to 1997-98 in five independent volumes on various vital aspects of registered manufacturing sector, which is very useful for data users, researchers and various Government departments.

The latest results of Annual Survey of Industries (ASI) 1999-2000 have been released, which contain detailed information on important characteristics of the universe surveyed.

The CSO also releases an annual publication – ‘Energy Statistics’, based on the data supplied by various agencies with regard to conventional and non-conventional energy sources.

The Fourth Economic Census was conducted during 1998-99, which covered all agricultural and non-agricultural establishments in the country, which was implemented by the State governments through grants-in-aid from CSO.

For a comparison of industrial performance of different States/UTs and to enable remedial action to minimise regional imbalances in the growth of industrial sector of economy, the CSO has evolved a common methodology for compilation of comparable Industrial Indices Production by State/UT governments.

It is well known that non-market economic activities within the household are generally not recorded properly. Due to this, the contribution of men, women and children within the households in the economy is not valued properly. This affects women more as they are mostly involved in such activity. One of the possible ways of getting the information is to conduct Time Use Survey. The CSO conducted a Pilot Survey on Time Use covering about 18,600 households, which is first of its kind among all developing countries. The Survey was conducted in six selected States of Gujarat, Haryana, Madhya Pradesh, Meghalaya, Orissa and Tamil Nadu during July, 1998 to June, 1999.

According to existing practice, the GDP does not take into account the assessment of the cost of the negative environmental impact of the development. In this regard, the CSO has launched a pilot project on Natural Resource Accounting in Goa. The first phase of this project was launched in April, 1999, which was based on secondary sources of data. The report of the first phase was submitted by TERI, which is under study. Meanwhile, an action plan for preparation of natural resource accounting and estimation of green accounting in the country has been prepared by an expert group.

The CSO is running a scheme of ‘payment of professional services in respect of research studies/sample surveys and related activities’ to generate official statistics, develop methodologies for collection, analysis and processing of data and other research studies on subjects related to the Ministry. About 275 proposals have been received till date. They have been screened by the Standing Research Advisory Committee and 25 proposals have been funded.

PROGRAMME IMPLEMENTATION

Member of Parliament Local Area Development Scheme (MPLAD)

The Member of Parliament Local Area Development Scheme (MPLADS) is in operation since December 23, 1993, under which the MPs recommend developmental works based on locally felt needs. The allocation under MP Local Area Development Scheme was doubled from the original rupees one crore to rupees two crore per year in1998-99. The amount is released to the head of the nodal district concerned, on the recommendation of the concerned MP. An aggregate amount of Rs. 10, 251.80 crore has been released, as on December 13, 2002, against which, as on November 29, 2002, Rs.9,596.02 crore (76.3 per cent) has been spent. A total of 6,27,717 works have been sanctioned by the district authorities. Of these 4,88,266 works have been completed, which is about 77.8 per cent of the works sanctioned.

In order to expand the scope of MPLADS for people’s benefit and to streamline the execution of works under the Scheme, some important decisions were taken:

To speed up the pace of utilisation of MPLADS funds, its release is now being made in two instalments of Rs.1 crore each as against four instalments of Rs. 50 lakh each released earlier. The next instalment of Rs. one crore is released when the unsanctioned balance comes below Rs. 50 lakh;

Provision has also been made for MPs to recommend works outside their constituencies as rehabilitation measures in the event of natural calamity of rare severity in any part of the country, for an amount not exceeding Rs.10 lakh for each calamity. In case of earthquake-affected areas of Gujarat, this amount was allowed to even go up to the annual entitlement of an MP;

- The limit of Rs.10 lakh per work has been enhanced to Rs.25 lakh;
- Works belonging to registered societies and trusts have been included within the purview of MPLADS;
- Nominated MPs have been allowed to select works for implementation in one or more districts anywhere in the country;
- Purchase of motor boats for flood and cyclone affected areas allowed;
- Purchase of drinking water tankers allowed; and
- Training programmes for district officials at the State level are being taken up to streamline implementation of the scheme.

Twenty Point Programme Division

Under TPP, during 1999-2002, 7,458.4 lakh mandays of employment were generated under Jawahar Gram Samridhi Yojana (JGSY), 1.94 lakh villages/habitations were provided drinking water facility; 718.8 lakh infants were immunised; 23.53 lakh houses were provided under Indira Awaas Yojana; 181.61 lakh people living in slum areas were provided with essential facilities and services; 30,656.4 lakh trees were planted; 44.11 lakh of improved ‘chulhas’ and 3.84 lakh biogas plants were installed; and, 63.27 lakh Scheduled Caste families and 29.52 lakh Scheduled Tribe families were assisted under various programmes. A restructuring of the programme in order to make it more effective and meaningful is under way.

Project Monitoring Division

During the last three years, 259 projects costing Rs. 74,571 crore have been completed The pro-active measures observed in recent times have brought about an improvement in the project implementation scenario. A study shows that the cost overruns in projects, even with respect to original costs, have come down from 62 per cent in March, 1988, to 26 per cent in March, 2002. This trend has been maintained over the last two years. The trend shows a continuous decline in cost overruns. On an average, 460 projects, costing Rs. 1,60,000 crore, have been on the monitor. Assuming six to seven years as an average period of completion of a project, the direct saving as a result of decrease in cost overruns is more than Rs. 80,640 crore. This is a commendable achievement.

As on January 1, 2003, out of 271 major and mega projects costing Rs. 100 crore and above, 74 are ahead, 73 are on schedule and 56 are delayed as per their latest approved schedule.

The Ministry has taken up a plan scheme on institution development and capacity building with the objective of strengthening the project management systems and procedures, implementation and monitoring. An online computerised monitoring system is being introduced to improve the quality of monitoring, which will have ability to forecast delays and help in resolving problems.

Special emphasis has been laid on project management in the North-Eastern States. Four workshops were organised to train the officers and executives of the Public Enterprises in the North Eastern States. Three global symposia on project management, to boost the development of project management provision in the country, were also organised.

STEEL

The iron and steel industry contributes about Rs.8,000 crore to the national exchequer in the form of excise and custom duties apart from earning foreign exchange of approximately Rs.3,000 crore through exports. Approximately 15 per cent of railway revenue comes from the iron and steel industry. Today, India is the 10^th largest producer of steel in the world with an installed capacity of nearly 33 million tonnes, employing over five lakh people directly, and with a cumulative capital investment of about Rs.90, 000 crore. It is a core sector, essential for the economic and social development of the country and crucial for its defence. The steel industry in India was passing through a critical period near the end of the last century. During the last five years, the Government has taken a number of initiatives to revive the steel sector and make it vibrant.

Hike in Production and Export of Iron and Steel

On account of the intensive efforts made during the last five years, the industry is poised for recovery and has been looking towards an upsurge of activity. Inspite of a sluggish global market and stagnation in domestic demand, steel production in India has recorded continuous growth since 1998. In 1997-98, the total production was 23.37 million tonnes, which rose to 23.82 million tonnes in 1998-99 and 27.17 million tonnes in 1999-2000. During the year 2001-02, the total steel production has touched 30.63 million tonnes, recording a growth of 4.6 per cent over 29.27 million tonnes in 2000-01. The imports of steel at 1.37 million tonnes showed a decline of 3 per cent compared to 1.42 million tonnes in the previous year. The export of steel at 2.77 million tonnes was higher by 4 per cent compared to 2.66 million tonnes last year. The apparent consumption of steel has grown by 2.6 per cent and reached 27.21 million tonnes. Now that the national and international markets are firming up, there is enough scope for the steel industry to flourish. The total production of finished steel during April, 2002 to February, 2003 has been estimated at 29.4 million tonnes and pig iron at 4.74 million tonnes (provisional).

Performance of Public Sector Plants

Production of saleable steel from the main integrated steel plants of SAIL has gone up from 8.33 million tones to 9.46 million tones in 2001-02. SAIL has fixed a target to increase production by one million tonnes over the last year. The performance of SAIL in the first three quarters of 2002-03 reveal that it has reduced its borrowing by Rs.371 crore over March, 2002. The consumption of coal and energy has been brought down substantially during the last five years and modernisation has helped increase production. SAIL is poised to achieve its targets of 2002-03 and stage a turn around in next fiscal.

During this period, Visakhapatnam Steel Plant (VSP), the only shore-based integrated steel plant in India, has achieved full ISO-9002 certification, the first for any integrated steel plant in India. The company has surpassed the targets set in the production of hot metal, liquid metal and saleable steel.

VSP has reduced the cumulative net loss from Rs.562 crore in 1999-2000 to Rs.125 crore in 2001-02. It has exceeded its rated capacity in almost all parameters and received a number of national awards to its credit. The company has achieved a net profit of Rs. 207 crore during April-December, 2002-03.

National Mineral Development Corporation (NMDC) has shown credible growth during the last five years and during 2001-02 has produced 15.54 million tonnes of iron ore and 81,040 carats of diamond, representing 104 per cent and 113 per cent of targets, respectively. It has achieved record iron ore and diamond production during these years. It has made inroads into China, the most potential emerging market for iron ore export. It has achieved record iron ore and diamond production during these years and looks forward to getting a ‘Navaratna’ Status.

During 2001-02, Kudremukh Iron Ore Company Ltd. (KIOCL) produced 5.4 million tonnes of concentrate and 3.2 million tonnes of pellets and exported 2.3 million tonnes of concentrate and 3.2 million tonnes of pellets. Total sales were of the order of Rs.722 crore, which is the highest since inception. Manganese Ore India Ltd. (MOIL), the single largest producer of high-grade manganese ore, achieved a turnover of Rs.167.92 crore in 2001-02. The company gave 27 per cent dividend during 2000-01. It achieved a sales turn over of 123.5 crore against a target of 113.3 crore during the first three quarters of 2002-03.

KIOCL and National Mineral Development Corporation Ltd. (NMDC), two of the public sector undertakings of the Ministry, have received PM’s MoU (annual target) award for the year 1999-00 and 2000-01, respectively. These are for the top performance among the PSUs for which around 250 participants vie for the coveted recognition every year.

Indian Sponge Iron Industry

The Ministry is playing an effective role in facilitating the growth of the sponge iron industry in India. With a production of 5.7 million tonnes of sponge iron in 2001, India has emerged as the largest producer of sponge iron in the world. During the first 3 quarters of 2002-03 Sponge Irons India Limited has produced 52, 000 tonnes of sponge iron against a target of 49,000 tonnes achieving 111 per cent of its capacity.

Revival Measures

A business and financial restructuring package for Steel Authority of India Ltd. (SAIL) was approved by the Government in the year 2002, which includes waiver of loan from the Steel Development Fund and the Government of India, provision of Government guarantees to raise loan to enable the implementation of the Voluntary Retirement Scheme and repayment of past obligations, disinvestment of its non-core assets and protecting jobs of the existing employees. A detailed MoU was signed between the Ministry and SAIL incorporating milestones for the implementation of the package.

This is a landmark decision in the history of Indian PSU restructuring and has provided SAIL a long-term solution for its rejuvenation. While the financial restructuring package for SAIL has been implemented, the assets restructuring is at various stages of implementation. Disinvestment of captive power plants at Rourkela, Durgapur and Bhilai steel plants has been completed as per schedule. SAIL is pursuing the matter for an early finalisation of the divestment process so that full benefits of the restructuring are achieved.

The Government has approved a revival package for Indian Iron & Steel Company (IISCO) and another for Bharat Refractories Ltd. (BRL) to revive the ailing companies.

Vision 2020

The Ministry has initiated steps to frame a National Steel Policy to give the industry a national perspective and to prepare a roadmap for the steel sector. It has brought out Vision-2020 to make the steel sector vibrant in the coming two decades. It has planned to set up a national campaign committee to penetrate rural marketing with an aim to triple steel demand by 2020.

Round Table on Steel

A round table conference was organised on Steel in October, 1999 with a view to holding wide-ranging discussions with the captains of the steel industry in the public and private sectors, financial institutions, industry associations and experts. Actions on important recommendations of the Round Table have been initiated and matters have been taken up with the concerned ministries and agencies.

Project Co-ordination Group

A Project Co-ordination Group (PCG) has been constituted. Regular meetings of the PCG have facilitated personal interface between the entrepreneurs and members of the PCG. It discussed issues relating to demand generation, duty matters, exim policy and rising cost of inputs. The problems of ongoing and new iron and steel projects were also taken up.

Research and Development

An empowered committee constituted by the Government has approved 24 research projects worth Rs 167.77 crore. The approved research projects cover areas such as improvement in mining methods, improvement of properties in coal, reduction in refractory consumption, improvement in productivity, utilisation and treatment of wastes and containment of pollution. A few projects have been completed. The outcome of research is being used for the improvement of energy consumption and for increasing the use of steel in structural purposes.

For energy efficiency improvement in the steel re-rolling sector in India, the Ministry has obtained approval for US $ 3,40,000 out of which UNDP/GEF contribution will be US $ 280,000 and the share of the Government will be US $ 60,000 (in kind).

Foreign Direct Investment

Hundred per cent Foreign Direct Investments through automatic route in the iron and steel sector has been allowed by the Government.

Raw Material and Transport Promotion

To provide raw materials and transport linkages to sponge iron, pig iron, steel and coke oven units during the last three years, a linkage committee has met regularly and assured supply of main raw materials and committed transport linkages to iron and steel units in the country.

Remedial Measures to Rejuvenate the Steel Sector

Anomalies in import duty on refractories and their raw materials have been removed. For infrastructure projects higher allocation has been made and tax holiday has been allowed. The Development Commissioner for Iron and Steel has launched a national campaign for increasing the demand for steel, especially in non-traditional sectors such as rural and agro-based industrial sectors. The Ministry is also advocating ban of asbestos sheets in construction, compulsory usage of steel scaffolding in place of bamboo scaffolding, development of welding centres in rural areas, truck bodies made of steel and use of more steel in Indira Awas Yojana Scheme and roofing railway platforms. Duty Entitlement Pass Book (DEPB) rates for steel exports have been rationalised.

National Steel Institute

A national steel institute has been established at Puri to cater to the needs of training, service, consultancy and research and development of the steel-producing belt of southern and eastern region.

Issues Concerning Railways

The Ministry of Railways has agreed to rationalise freight classification of steel and its raw materials with a view to reducing financial burden on the steel industry. It has also agreed to consider issues relating to minimum chargeable distance. An important outcome is that in future, the Railways, would take all rails in the 52 and 60 kgs. category produced by the Bhilai steel plant. Bhilai steel plant has signed MoU with Railways to supply its total requirement of long rails of international standard.

Fighting Anti-Dumping Measures

The Department of Commerce of the United States imposed a very high anti-dumping duty on import of CTL steel plates from SAIL. Government of India challenged this in the WTO and requested for the setting up of a panel in June, 2002. The WTO panel concluded that the United States acted inconsistently with the WTO anti-dumping agreement in refusing to take into account US sales price information submitted by SAIL. The dispute settlement body of WTO has considered and adopted the panel report in August, 2002. High-level steel teams headed by the Steel Secretary visited the US and discussed the issue at the Government level. The exchanges have contributed to a better appreciation of India’s concerns by the US administration. The US Government has granted exemption to India from the recently imposed safeguard measures, except for the category of exports of carbon flanges.

In Search of New Markets

India is in search of new markets in South-East Asian countries, which are showing signs of economic revival. Attempts to explore additional markets in the Middle East, Bangladesh, Myanmar, South Africa, Mexico, Taiwan and some other countries have been successful.

Rationalisation of Duty Structure

Excise duty on freight and handling charges were waived and anomaly corrected in duty structure of ferro-nickle oxide sinters/charged nickel in the last three years’ budgets following the initiatives taken by the Steel Ministry. The pragmatic provisions in the 2003-04 Rail Budget and General Budget benefit the steel industry.

TELECOMMUNICATION

Telecommunication has emerged as one of the leading infrastructure sectors. Several policy initiatives were taken towards making the country a leading telecom and IT Superpower. Priority areas were identified under the New Telecom Policy (NTP’99) for the establishment of a world-class telecom infrastructure and services. Modernisation was given high priority. Today, India’s 51.1 million telephone network as on January 31, 2003 including mobile, is one of the largest in the world and second largest among emerging economies (after China). India is one of the fastest growing basic telephone services with an average growth of about 22 per cent and over 100 per cent for cellular and Internet services. Telephone lines added to the basic services network over the last 5 years have been one and a half times over the preceding five decades.

The New Telecom Policy (NTP’99) laid special emphasis on providing telecommunication services to rural areas and providing reliable media to all exchanges by 2002. The targets set were to make available telephone on demand by 2002 and to achieve a tele-density of 7 by 2005, and 15 by 2010. It also envisaged transformation of telecom sector to greater competitive environment by providing equal opportunities and level playing field for all the players. Present tele-density is approximately 4.88 per cent as on January 31, 2003. Out of 6.07 lakh villages in the country, the number of villages provided with telephone facility which stood at 3.94 lakh as on January 31, 2001 has gone up to 5,11,089 as on January 31,2003.

There has been rapid growth in the number of subscribers being served by the private basic service operators. The number has risen from 0.57 lakh as on September 30, 1999 to 9.65 lakh as on December 31, 2002. The number of cellular subscribers in the country has grown from 13.36 lakh as on September 30, 1999 to about 111.63 lakh as on January 31, 2003.

Reduction in Tariffs

There has also been a massive reduction in national and international long distance tariffs since 1999. The reduction was upto 80 per cent in the national long distance tariffs from a maximum of Rs.24 per minute to Rs.4.80 per minute, the highest ever decrease in tariff. The reduction in the international long distance tariffs has been by nearly 50 per cent from Rs.48 per minute to Rs.24 per minute. The basic rental for limited mobile telephony has been reduced by more than half from Rs.450 per month to Rs.200 per month.

Public Grievance Cell

The Public Grievance Redressal system has been further strengthened. The PG Cell has been computerised using Public Grievances Redressal and Monitoring System (PGRAMS) software for better and effective monitoring of PG complaints.

Private Sector Participation

All the sectors – basic, cellular and Internet service etc. have been opened for private participation and competition is being encouraged. The Department of Telecommunications (DoT) has also opened services like national and international long distance for free competition and the process of granting license is underway.

VALUE ADDED SERVICES

Cellular Mobile Telephone Services

Seventeen fresh licenses for cellular mobile telephone services were granted during September-October, 2001. Nearly, Rs. 1, 633.57 crore was received towards entry fee. As a result of this, the cellular mobile telephone service sector is open up for full competition; the number of service providers per service area is only restricted due to spectrum constraint. There has also been rapid growth in the number of cellular subscribers in the country from 47,98,508 as on September 30, 2001 to 1,17,56,047 as on February 28, 2003.

Voice Mail/Audiotex Service

A new policy for voice mail, audiotex Service in terms of NTP’99 was announced in July, 2001 by incorporating a new service, namely, Unified Messaging Service (UMS). UMS is a system by which voice mails, fax and e-mails (all the three) can be received from one mailbox using telephone instrument, fax machine, mobile phones, Internet browsers, etc. Presently seven companies have 28 licences to provide these services in 15 cities.

Public Mobile Radio Trunk Service (PMRTS)

A policy for Public Mobile Radio Trunk Service (PMRTS) in terms of NTP’99 has been announced on November 1, 2001. The new PMRTS licences shall be granted in digital technology only and it has also been decided to provide PSTN connectivity to PMRT service. Presently 16 companies have 50 licences to provide this service in 25 cities.

Global Mobile Personal Communication by Satellite (GMPCS)

A policy for grant of license for Global Mobile Personal Communication by Satellite service in terms of NTP’99 has been announced on November 2, 2001.

LICENSING REGULATION

Internet Service Providers

A simplified exit policy for Internet Service Providers (ISPs) was announced in the month of February, 2002. Internet Telephony has been opened up w.e.f. April 1, 2002, and about 102 ISPs have been permitted to offer Internet Telephony Service as on February 28, 2003.

Very Small Aperture Terminal (VSAT)

As envisaged in the New Telecom Policy 1999 (NTP’99) the Government has decided to award licenses to VSAT services for operations in Ku band. This service provides data (or voice) connectivity in Closed User Group (CUG) between various sites scattered throughout India using VSATs and a central hub.

Based on the broad guidelines issued on May 10, 2001 for issue of VSAT licences, eight out of ten VSAT service providers have already migrated to revenue sharing regime under NTP-99. Broad guidelines of INSAT MSS reporting service have been announced and two LOIs have already been issued.

Communication Convergence Bill

In terms of NTP’99, a new comprehensive statute to replace the Indian Telegraph Act 1885 called the Communication Convergence Bill 2001 for the rapid convergence of telecom, computers, television and electronics was introduced in Lok Sabha on August 31, 2001. The Parliamentary Standing Committee on Information Technology has recently submitted its report and the observations and recommendations made by it are under the consideration of the Government.

Universal Service Obligation (USO)

The NTP ‘99 seeks to achieve the Universal Service Objectives, such as provision of voice and low speed data services to the uncovered villages in the country, achieve Internet access to all district headquarters and telephone on demand in urban and rural areas. Accordingly, recommendations of TRAI were sought on issues relating to Universal Service Obligation. Subsequently, an Administrator, Universal Service Fund was appointed with effect from June, 2002 in order to ensure fair and transparent implementation of Universal Service Obligation.

National Frequency Allocation Plan (NFAP)

The National Frequency Allocation Plan (NFAP), an important planning tool for the efficient management of the scarce natural resource of radio frequency spectrum, has been revised and the new National Frequency Allocation Plan-2002 (NFAP-2002) has been evolved within the framework of the radio regulations of the International Telecommunication Union (ITU), with a view to cater to the conflicting demands on the spectrum, including those of new emerging technologies without unduly constraining the existing usages.

C-DoT

Keeping the importance of indigenous developments in the field of telecommunications in view, the first indigenously developed mobile system by C-DoT has been installed as a pilot project in about a dozen important cities and towns. The system is based on GSM technology. Some of the important places, where the mobile system is implemented are Kolkata, Patna, Ranchi, Jamshedpur, Madurai and Coimbatore. Along with the system, the first indigenously developed billing centre by C-DoT has also been installed and commissioned at Kolkata.

Private Investment Promotion (PIP)

A Private Investment Promotion (PIP) Cell was established to act as friend of the investors and to facilitate investment proposals in the telecom sector.

Fiscal Incentives

Telecom service operators to pay a reduced uniform sales tax of 4 per cent, Reduction in customs duty on Cellular Phones from 26.67 per cent to 14.4 per cent, telecom services companies allowed the benefit of carry forward losses on merger under Section 72A of the Income Tax Act. Basic telephone including WLL has been exempted from 1/6 Scheme of Income Tax and EHTP Scheme modified to encourage Telecom / IT manufacturing sector

Record FDI Inflow

Foreign Direct Investment (FDI) to the tune of Rs. 4,842 crore was received between August, 2001 and December, 2002. This formed about 50 per cent of the Total FDI received in the telecom sector.

Growth and Development of the Call centre industry

Growth in the telecom infrastructure, coupled with availability of trained/qualified manpower made India a preferred destination for setting up of call centres. It has helped the country in earning valuable foreign exchange. The call centre registration process has been simplified and over one lakh new jobs have been created in the call centres alone.

Disinvestment of PSUs

Twenty five per cent equity with management control of VSNL has been given to Tata’s for a total consideration of Rs. 1,439.25 crore and 74 per cent equity of HTL Ltd has been given to HFCL for a total consideration of Rs.55 crore.

Sanchar Dhabas

A scheme of ‘Sanchar Dhabas’ has been launched. These public-tele-info centres would fulfil communication needs at the very doorsteps along with variety of carried services in the villages.

Corporatisation

From October 1, 2000, the service providing functions of DoT were divested to a newly created corporate entity – Bharat Sanchar Nigam Limited (BSNL) in order to provide functional autonomy and decision-making powers to the incumbent operator in the emerging competitive environment.

Strengthening the Regulator

The Telecom Regulatory Authority of India (TRAI) Act was amended to reorganise and strengthen the regulator by giving additional functions and making it mandatory to seek its recommendations in several fields. Further, a separate high-powered body, Telecom Disputes Settlement and Appellate Tribunal (TDSAT) has been set up for expeditious disposal of telecom disputes under the Chairmanship of a retired Supreme Court judge for expeditious disposal of telecom disputes. Appeals against the order of the Appellate Tribunal can be made in to the Supreme Court.

Internet

Under Internet service, there are 400 existing licensees as on December 31, 2002, out of which 186 have commenced service. The number of internet subscribers has also witnessed exponential growth, which stands at approximately 37 lakh all over the country as on December 31, 2002.

Internet Telephony

New avenues have been created by allowing Internet telephony, which has enabled communications from the PC to telephone abroad and from PC to PC anywhere in the country. With a view to facilitate customers, the Government announced 50 per cent reduction in night-time access charges of internet. This measure was broadly to promote internet/computer awareness. Total number of Internet Service Providers who have been permitted to offer Internet Telephony Services from April 1, 2002 are 93. Another 24 ISPs have been given provisional clearance for commissioning of international gateways for internet using satellite medium till November, 2002. During the year, the Government also delicensed indoor wireless LAN in 2.4 GHz to boost the IT sector through wireless connectivity for computers and internet services for their use in buildings and campuses.

Bandwidth

The Government has taken a number of steps to ensure that adequate bandwidth – both national and international, is available on demand. A Standing Committee on Bandwidth has been constituted to look after for overseeing the requirements of bandwidth and leased circuits for Industry. Private ISPs have been allowed to set up own landing stations for submarine cables. Instructions have been issued to the field units to expedite the provisioning of domestic part of bandwidth and leased circuits.

Migration Package

A migration package from fixed licence fee to revenue sharing was offered to the existing cellular and basic service providers, moving from a regime of duopoly to multipoly. The airtime charges and rentals for cellular mobile service also revised downwards. The Government has also approved a migration package for radio paging operators.

Sanchar Sagar Project

The project was conceived to provide national information infrastructure, connectivity for the National Internet Backbone and bandwidth on demand. Phase-I of the Sanchar Sagar Project was completed in August, 2000. The Phase-II project has also been completed in the year 2002. Sanchar Sagar Project connects many cities and towns. The bandwidth capacity has been increased several times by the introduction of state-of-art technology in the optical fibre network.

Development Council for Telecom Sector

A Development Council for Telecom Sector has been set up under the Chairmanship of the Chairman, Telecom Commission, with representatives from the Government and the industry. The Development Council will recommend measures for the growth of telecom manufacturing sector and the service sector.

Procurement of Telecom Equipment

As part of the rationalisation process in the procurement of telecom equipment, the DoT has decided to decentralise the powers to its field units in a phased manner. The period between the date of notice for Inviting the Tenders (NIT) and opening of tender, which was earlier two months, has been to one month in respect of all tenders.

Customer Care

The Government owned PSUs namely the BSNL and the MTNL are providing computerised directory service in major cities and towns of the country. Further computerised billing, repair service etc. have been introduced to enhance customer satisfaction. These companies have also launched several new services like cellular mobile telephones, wireless in local loop (WLL) telephone services, Internet service etc. by providing a whole range of choices to customers.

Grievances Cell

Two Telecom Groups and a Grievances Cell have been set up to improve the functioning of telecom services in rural as well as urban areas of the country.

Direct-To-Home Television Broadcasting

As a measure to help in the introduction of Direct-to-Home(DTH) Television broadcasting in India. The Government removed prohibition on establishment, maintenance, possessing or dealing of equipment capable of receiving Ku band television broadcast signals directly from satellites.

North Eastern Telecom Circle

The newly created North-Eastern telecom circle inaugurated at its headquarters at Dimapur in Nagaland will cater to Nagaland, Manipur and Mizoram. The other North-Eastern telecom circle with its headquarters at Shillong will cover the States of Arunachal Pradesh, Meghalaya and Tripura.

Cellular Mobile Service of MTNL and BSNL

Dolphin Cellular Mobile Service of MTNL is operational in Delhi and Mumbai. The Prime Minister launched BSNL’s countrywide ‘Cellone’ Mobile Service in October, 2002. BSNL also launched the brand name for its pre-paid cellular service ‘Ex-Cell’ and Internet telephony service ‘WebFone’. Plans are also afoot to start mobile telephone services in Jammu and other parts of Kashmir very soon.

WLL Service launched

Wireless in Local Loop (WLL) has been introduced for providing telephone connections in urban, semi-urban and rural areas promptly. The BSNL’s first of country-wide WLL service has been launched at Gurgaon. The service is being extended to other places in a phased manner.

TEXTILES

Policy Initiatives

The National Textile Policy – 2000 (NTxP-2000) was announced in November 2000. Several steps for modernisation and investment in the sector have been taken in order to achieve the objectives of the Policy. These are aimed at developing a strong and vibrant textile industry capable of producing quality cloth at an acceptable price, contributing increasingly to the provision of sustainable employment and economic growth of the country and competing with confidence for an increased share of the global market.

A textile package for faster development of textile industry was announced as a follow up measure for the implementation of NTxP 2000. Woven segments of readymade garments have been de-reserved from SSI sector. SSI investment limit for hosiery and knitwear sectors has been enhanced from Rs. one crore to Rs. five crore.

Thrust has been given to development of decentralised industry, with central assistance to North Eastern region, Sikkim, J&K and hilly States enhanced to 90 per cent under sericulture, handloom and handicrafts sectors.

A Steering Group on Investment and Growth in Textile Industry has been constituted. An Inter-Ministerial Task Force was constituted to suggest measures for ensuring adequate flow of funds to the textile industry.

SCHEMES LAUNCHED

Apparel Parks for Exports

In March, 2002, the Government launched a new scheme, viz. ‘Apparel Parks for Exports’ for imparting focused thrust for setting up of apparel manufacturing units of international standards at potential growth centres. Till date, the Government has sanctioned nine apparel park projects in different States.

Textile Upgradation Fund Scheme

One of the important targets of the NTxP-2000 is vigorous implementation of Technology Upgradation Fund Scheme (TUFS). Launched on April 1, 1999, it aims to provide an impetus to the modernisation of textile and jute industry. A 22- member inter-ministerial steering committee monitors and reviews the scheme on a regular basis. On the basis of feedback from the technical advisory-cum-monitoring committee and industry associations, necessary modifications have been made in the scheme to improve the access of the scheme. To make more and more textile SSI units avail of the benefits under TUFS the option to avail of upfront 12 per cent credit link capital subsidy has also been provided. The regional offices of textile commissioners have been holding facilitation camps so that more industrial units, including powerlooms, can make use of the scheme. A total of 1,778 applications were received under the scheme and an amount of Rs. 5,505 crore was sanctioned.

Technology Mission on Cotton

Considering the importance of cotton crop in the national economy, the Government has launched a Technology Mission on Cotton (TMC) from February, 2000 to address the issues of low productivity and contamination. The Mission consists of four mini missions, which are being jointly implemented by the Ministry of Agriculture and Ministry of Textiles with the following objectives:

Mini-Mission I: Cotton research and technology generation; Mini-Mission II: Transfer of technology and development; Mini-Mission III: Improvement of marketing infrastructure; and Mini-Mission IV: Modernisation/Upgradation of ginning and pressing factories.

Mini Missions I&II are being implemented by the Indian Council of Agricultural Research (ICAR) and Ministry of Agriculture, respectively, while Ministry of Textiles is the nodal agency for implementation of Mini Missions III & IV.

Up to July, 2002, under Mini Mission-III, 44 project proposals sanctioned. The total estimated cost is Rs. 159 crore, out of which Government share would be Rs. 80 crore. Under Mini Mission-IV, modernisation of 187 ginning and pressing factories has been sanctioned at an estimated cost of Rs. 223 crore out of which Government share would be Rs. 38 crore.

Modernisation of the Weaving Sector

Pursuant to the textile package, a programme for modernisation of the decentralised powerloom sector by 2004 has been drawn up. The main instrument in the implementation of this programme is the TUFS, which has been modified to allow the beneficiary the option of taking a 5 per cent reimbursement of loan rate, or, a 12 per cent subsidy upfront linked to credit. The lead implementation agency is the Powerloom Service Centres (PSCs), which are being modernised and will be strengthened to carry out a facilitation role. A cluster approach is being followed and 16 major powerloom clusters have been identified to make a focused effort for modernisation. The coordination of the State governments has been emphasised; Small Industries Development Bank of India (SIDBI) and the banks are being drawn into the programme. The office of the textile commissioner is the managing organisation. Funds for modernisation programme for 2.5 lakh looms are provided in the budget as part of the provision for TUFS. Funds in the powerloom head of the budget have been provided for modernising the PSCs and for welfare schemes of group insurance and work-sheds.

Textile Centre Infrastructure Development Scheme

The Government launched in March, 2002, a new scheme titled ‘Textile Centre Infrastructure Development Scheme (TCIDS)’ for modernising infrastructure facilities at major textile centres of the country. The scheme is not location-specific and all the States and Union Territories have been requested to formulate and furnish project reports for bridging critical gaps in infrastructure of major centres in their respective States/UTs, which would be considered for assistance under the Scheme.

Introduction of New Package for High Quality Silk

Development of a sericulture package for gradeable quality of bivoltine mulberry silk has added to the prospects of the industry, which is hoped to bring a significant rise in production and quality of silk. The high tensile strength of bivoltine silk adds to its other advantages by making possible the use of multi-end reeling machines and modern fast powerlooms, thus promising an increase in quality and productivity along the entire value-chain.

A strategy for growth has been put into the field for development of bivoltine sericulture. This is expected to spur the yields from the current level of about 750 Kg of cocoons from a hectare of mulberry plantation to over 1,600 Kg by the end of Tenth Plan. Bivoltine silk production has increased from 370 tonne in 1999-2000 to 750 tonne (provisional).

Baba Saheb Ambedkar Hastshilp Vikas Yojana

A new scheme ‘Baba Saheb Ambedkar Hastshilp Vikas Yojana’ has been formulated which has adopted an essentially people-centric approach and involves mobilisation of the artisan community in important craft clusters all over the country into self help groups and thrift & credit societies. Symposia on AHVY for the crystallisation of critical issues and adoption of implementation module for the scheme were organised at Jaipur, Bhopal, Lucknow and Kolkata. DRDA, SIDBI, NABARD, Planning Commission, prominent NGOs and experts in the field of handicrafts anchored the symposia. About 1,25,000 artisans are expected to be benefited under the scheme over the coming three years.

Deen Dayal Hathkargha Protsahan Yojana

The Government launched an integrated and comprehensive scheme, ‘Deen Dayal Hathkargha Protsahan Yojana’ in April, 2000, to provide assistance to the entire gamut of handloom sector activities, like product development, infrastructure and institutional support, training to weavers, supply of equipment and marketing support etc., for weavers within or outside the cooperative fold, both at the micro as well as the macro level. The scheme will be in operation by the end of the 10^th Five Year Plan. The outlay envisaged is Rs. 690 crore, involving a Central share of Rs. 360 crore to be given to State governments on submission of project proposals. Deen Dayal Hathkargha Protsahan Yojana to be in operation in the Tenth five year plan also.

Jute

For ensuring the percentage of mandatory packaging in jute bags for sugar and foodgrains to 100 per cent each, the Government issued an order on September 1, 2001 under the Jute Packaging Materials (compulsory use in packing commodities) Act 1987(JPM). Urea had been excluded from the purview of the JPM Act. In October, 2001, the Government directed all manufacturers of jute textiles to mark the country of manufacture/origin of specified items of jute textiles. The Government has also constituted an inter-ministerial committee for formulating a road map for progressive dilution of compulsory packaging norms for food grains and sugar under the JPM Act.

Special Incentives for Textile Sector in North Eastern Region

Following the adoption of Prime Minister’s Package for development of the North-Eastern region, special focus is being given to implementation of textiles and textile-based activities, like handicrafts, handlooms, sericulture and jute in the North-Eastern Region. The important follow-up actions taken in this regard include raising the share of Central assistance (excluding for marketing) from 75 per cent to 90 per cent for all Centrally-sponsored plan schemes, as well as strengthening the North-Eastern Handicrafts and Handlooms Development Corporation (NEHHDC). It is now under the administrative control of the newly created Department of Development of North Eastern Region (DONER). During the Ninth Plan, a provision of Rs. 42 crore was made and an amount of Rs. 41 crore spent on the development schemes being implemented in the North-Eastern Region.

Future Plans

A special package for Jammu & Kashmir has been announced with an investment of Rs. 70 crore in 5 years on schemes for development of handlooms, handicrafts, sericulture, wool and pashmina.

A Wool Technology Mission and a Jute Technology Mission are on the anvil.

Action has been initiated on following three points relating to Prime Minister’s 15 important initiatives announced on Independence Day 2002:

Rs. 100 crore for a one-time special rebate on handloom fabrics to kick-start the employment intensive industry and revive its production cycle.
An additional Rs. 125 crore for skill upgradation of one lakh handloom weavers.
A special contributory insurance scheme for one million weavers and artisans, which will combine the Jan Shree Bima Yojana with group insurance.

Besides, an allocation of Rs. 500 crore for Workshed-cum-Housing Scheme, has been made.

Last but not the least, brand image building is to be taken up as a part of international market strategy during current year.

TOURISM AND CULTURE

New Tourism Policy

A new National Tourism policy was announced by the Government in May, 2002, to position tourism as a major engine of economic growth and to harness its multiplier effects for employment generation and economic development. The new policy attempts to position India as a global brand to take advantage of the burgeoning global travel and tourism trade and the vast untapped potential of India as a destination. It acknowledges the critical role of private sector with Government working as a pro-active facilitator and catalyst. The policy creates and develops integrated tourism circuits based on India’s unique civilisation, heritage, and culture in partnership with States, private sector and other agencies. It also ensure that the tourist to India gets physically invigorated, mentally rejuvenated, culturally enriched, spiritually elevated and “feel India from within”.

Tourism and Cultural hubs in each State

In order to synthesis elements of tourism and culture the Centre has decided to set up 35 hubs, at least one in each State which will work as centres to project art and cultural heritage of India. Places of tourism interest and cultural heritage will be linked at the hub with improved infrastructure. Documentation centre and interpretation centre, handicrafts emporium and other similar facilities will be crated at these hubs to familiarise with rich heritage and civilisation values. Tourists visiting these hubs will be physically invigorated, mentally rejuvenated, culturally enriched and spiritually elevated. The first of this kind of hub, has already been set up at Ajanta in Maharashtra.

New style of Governance for improving tourism infrastructure

A new style of governance has been introduced which yields maximum results with minimum cost in the shortest possible time for upgradation of tourism infrastructure at different destinations. In the style of governance, which involves decisions making at the spot during the visit of high level team headed by Minister himself, all the stake are involved in consultation with the Ministers of the concerned State governments and senior officers. Projects relating to promotion of tourism are sanctioned at the spot. This is followed up with constant review and monitoring at the level of minister. Massive developmental work has been undertaken adopting the phenomenon at the places: 1) Ajanta, 2) Red Fort, 3) Kurukshetra, 4) Lal Kot, 5) Raj Ghat, 6) Chote Khan-Bade Khan, 7) Tughlakabad Fort, 8) New Greens (Vivekananda Park, Ajay Ahuja Memorial Park, Deen Dayal Upadhyaya Park, etc.) and Sapru House.

Six tourism circuits identified for integrated development

Six tourism circuits have been identified for integrated development of tourism infrastructure. These are:

1. 1. Buddhist Circuit: Bodhgaya-Rajgir-Nalanda-Varanasi.
  2. Himalayan Circuit: Route I – Chandigarh-Bilaspur-Kullu-Manali-Rohtang La-Key Long-Sarchu-Upshi-Leh.

Route II – Shimla-Sangla-Kaza-Chatru-Keylong-Sarchu-Yashi-Leh.

1. Central Circuit – (Heritage, Nature & Wildlife Circuit): Gwalior-Shivpuri-Chanderi-Orcha-Khajuraho-Jhansi-Bhopal-Sanchi and surrounding Buddhist areas–Bimbetka–Panchamari-Kanha Jabalpur (Bhedaghat).
2. Western Circuit – (Konkan Riviera circuit): Bombay-Alibagh (Mandva) – Muradjanjira–Ganapatipule–Vijaydurg–Mithibad– Kunkeshwar–Mochetmad–Singdhudurg–Tarkarli–Shiroda–Savantwadi – Amboli–Goa–Coastal Karnataka–Bekal.
3. Southern Circuit – (Backwater and Beach Circuit): Cochin– Kumarakom(Backwater)–Kottayam–Quilon–Trivandrum (Kovalam).
4. Eco–Tourism circuit : Shillong–Guwahati–Kaziranga–Tezpur– Bhalakpung–Tawang(Arunachal Pradesh)–Majuli- Sibsagar- Kohima.

Integrated development of Hampi and Mahabalipuram has also been started. Foundation stone for Uday Shankar Academy for dance and music at Almorah, Uttaranchal has been laid to develop it as cultural tourism centre.

National Manuscripts Mission launched

The Prime Minister launched National Manuscripts Mission in January, 2003 to unlock the precious treasure of scientific, intellectual, literary and spiritual knowledge in Indian manuscripts. With the cost of 35 crore rupees the mission will locate and identify manuscript in different Indian languages not only in India but abroad also for exclusive surveys. After that national database will be prepared to promote ready access to common man through digitalisation and publication.

Look East Policy initiated to tap vast tourism market

A special initiative has been taken up to obtain ‘Approved Destination Status’ from China. This will allow Chinese to visit India in larger groups. China has also agreed to open up its tourist office in India for bilateral cooperation in tourism.

Five-fold increase in tourism allocation

Realising the importance of tourism in the all round development of economy and job generation, allocation for the sector in the 10^th Plan has been increased five fold, from Rs. 595 crore in 9^th Plan to Rs. 2,900 crore. Annual allocation for 2003-04 has also been enhanced from Rs. 100 crore in 1997-98 to Rs. 325 crore.

Preservation of Jain Cultural Heritage

As a part of “2600 Janma Kalyanak celebrations of Thirthankar Mahavira”, an amount of Rs. 100 crore has been sanctioned and 88 Jain-related monuments have been taken up for improvement and preservation.

Development of Buddhist Art and Culture

Preservation and upgradation of Leh, Tawang, Bomdilla etc. monasteries have been taken up with the cost of Rs. 27 crore.

Incentives to Travel and hospitality Industry to promote tourism

Several incentives for tourism and travel industry have been announced by the Government in order to provide boost to infrastructure development which include interest subsidy to the hospitality industry, exemption of air travel tax for north-east, abolition of hotel expenditure tax levied by the Centre and significant reduction of duties on items being imported by tourism and travel industry.

Collaboration with technological institute for conservation of monuments

The engineering/scientific departments of universities and specialised institutes have been involved in scientific studies of preservation work for Centrally protected monuments. The Taj Mahal will be taken care of by Central Building Research Institute, Rurkee, Structural Engineering Research Institute, Ghaziabad, Earthquake Engineering Department, Rurkee and National Geographical Research Institute, Hyderabad. The IIT, Khargpur will conserve the Jagannath Temple, Puri. National Geographical Research Institute, Hyderabad, will maintain Char Minar, Hyderabad. The Ajanta and Ellora Caves have been handed over to Geological Survey of India for Geo-technical Studies of Rocks.

The IIT, Chennai has been roped in to study the earthquake-affected monuments of Gujarat.

National Cultural Fund

In order to encourage private sector participation for the preservation, restoration and upgradation of infrastructure of the historical monuments, a new scheme has been initiated which enables institutions and the public at large to contribute to the culture related activities for mobilising funds. Work at Humayun’s Tomb, Jantar Mantar, Qutub Minar, Taj Mahal, Khajuraho, Konark and Hampi have already been initiated under the scheme.

Digital documentation of important objects at museums completed

In all the Central museums the digital documentation of ‘AA’ and ‘A’ category objects has been completed. This will ensure security and accountability objects and build a historic archive which will be useful for public, especially the students and researchers.

Nizam’s Jewellery and Picasso : metamorphoses 1900 to 1972 at display

The exhibition of ‘Nizam’s Jewellery, the rarest cultural treasure of the country, was displayed at National Museum, New Delhi during August 30, 2001 to October 30, 2001. It attracted a large number of visitors from abroad also. Picasso : Metamorphoses 1900 – 1972 was also organised at National Museum, New Delhi and Modern Art Gallery, Mumbai during December 14, 2001 to February 3, 2002 to apprise of the work of legendary painter.

TRIBAL AFFAIRS

The Ministry of Tribal Affairs was constituted in October 1999 to pay a focused attention to the development of Scheduled Tribes which, works as the nodal Ministry for the overall policy, planning and coordination of programmes and schemes for the development of Scheduled Tribes. To give a further thrust to the welfare and development of Scheduled Tribes, a Scheduled Area and Scheduled Tribes Commission has been set up under Article 339(1). The last such Commission was set up in 1960. Funds for various schemes/programmes for tribal increased by about 69.05 per cent over the years 1999 to 2003.

Scheduled Tribes comprise 67.76 million, i.e. 8.08 per cent of the country’s population, spread over the country mainly in forest and hilly regions. The essential characteristics of these communities are primitive traits, geographical isolation, distinctive culture, and shyness of contact with outsiders, and educational and economic backwardness. The ST population suffers from illiteracy, poverty and ill health. To ameliorate their social condition, the Constitution of India incorporates several special provisions for the promotion of educational and economic interest of Scheduled Tribes and their protection from social injustice and all forms of exploitation.

The Tribal Sub-Plan strategy, adopted at the beginning of the Fifth Five Year Plan, seeks to ensure adequate flow of funds for tribal development from the State Plan allocations, schemes/programmes of Central Ministries/Departments, Financial and Developmental Institutions, in proportion to their population. The Ministry is also implementing several schemes and programmes for the benefits of STs. Level of Special Central Assistance (SCA) to Tribal Sub Plan (TSP) increased from Rs. 400 crore in 1999-2000 to Rs. 500 crore in 2001-2002.

SCHEMES AND PROGRAMMES

Special Central assistance and grants under Article 275(1) of the Constitution

Special Central Assistance (SCA) is given to States/UTs to supplement their efforts in tribal development through Tribal Sub-Plan (TSP), basically meant for family-oriented, income-generating schemes in various sectors. Grants are also given to States/UTs, under the first proviso to Article 275(1) of the Constitution to meet the costs of projects for tribal development and for raising the level of administration of Scheduled Area therein at par with the rest of the State/UT. Part of the funds is utilised for setting up of residential schools for providing quality education to tribal students. Funds to the tune of Rs 500 crore in 1999-2000, Rs. 600 crore in 2000-01 and Rs. 830.3 crore in 2001-02 were released under the two schemes. Special assistance of Rs. 110 crore for development of infrastructure in newly formed Chhattisgarh, Jharkhand and Uttranchal States has been provided.

Scheme for Primitive Tribal Groups

Based on the pre-agricultural level of technology, low level of literacy, declining or stagnant population, 75 tribal communities in 17 States/UTs, have been identified and categorised as primitive tribal groups. A new central sector scheme has been introduced for all round development of these groups from 1998-99 under which financial assistance is made available to Integrated Tribal Development Projects, Tribal Research Institutes and Non-Governmental Organisations for undertaking projects/activities not covered by any of the existing schemes. Funds amounting to Rs 6.63 crore in 1999-2000, Rs. 10.71 crore in 2000-01 and Rs. 14.18 crore in 2001-02 were released under the scheme.

Tribal Research Institutes

14 Tribal Research Institutes (TRIs) have been set up in Andhra Pradesh, Assam, Bihar, Gujarat, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu, West Bengal, Uttar Pradesh, Manipur and Tripura, and are engaged in providing planning inputs to the State governments, conducting research and evaluation studies, collection of data, codification of customary laws and the conduct of training, seminars and workshops. Some of these institutes also run museums exhibiting tribal artefacts. Funds to the tune of Rs. 1.78 crore in 1999-2000, Rs. 97 lakh in 2000-01 and Rs. 2.70 crore in 2001-02 were released under the scheme.

Girls’/Boys’ Hostels for STs

The Girls’ hostels scheme was started in the Third Five Year Plan with the aim of providing residential facilities to tribal girls in pursuit of education. Central assistance of 50 per cent of cost of construction to the States, and cent percent to the Union Territories is provided under the scheme. The boys’ hostels scheme was started in 1989-90 on the same pattern as the girls Hostels. Funds to the tune of Rs 10.91 lakh in 1999-2000, Rs. 4.84 crore in 2000-01 and Rs. 16.075 crore in 2001-02 were provided for the purpose.

Grants for construction of 82 model residential schools have been released. Construction of 92 boys’ and 42 girls’ hostels have also been sanctioned.

Ashram Schools in Tribal Sub-Plan (TSP) Area

This Centrally sponsored scheme was started in 1990-91 to provide Central assistance to the States and Union Territories on 50 per cent and 100 per cent basis, respectively. Funds to the tune of Rs. 532.00 lakh in 1999-2000, and Rs. 997.80 lakh in 2001-02 were provided. Construction of 36 Ashram schools was sanctioned.

Vocational Training in Tribal Areas

This scheme under the Central sector introduced in 1992-93 aims at developing the skills of the tribal youths in order to give employment/self-employment opportunities by setting up of Vocational Training Centres (VTCs). An amount of Rs. 3.75 lakh in 1999-2000, Rs. 253.67 lakh in 2000-01 and Rs. 4 crore in 2001-02 was given for the purpose.

Education of ST Girls in Low Literacy Pockets

This scheme was launched in 1993-94 with the objective of raising the literacy level of tribal females in 48 identified tribal districts in eight States with female literacy below two per cent. This scheme was revised in July, 1998 and now covers 134 districts having ST women literacy rate of less than 10 per cent in 14 States. The scheme envisages setting up of residential educational complex from first to fifth standard. The scheme is implemented through the voluntary organisations and State governments/UTs. Funds to the tune of Rs.183 lakh in 1999-2000, Rs.147.01 lakh in 2000-01 and Rs. 398.97 lakh in 2001-02 were made available for establishing and running educational complexes, respectively. Sanction was also given for 130 residential educational complexes to improve female literacy in identified districts with low tribal female literacy.

Tribal Cooperative Marketing Development Federation of India

The Tribal Cooperative Marketing Development Federation of India (TRIFED) was set up by the Government of India in 1987, with the prime objective of providing marketing assistance and remunerative prices to ST communities for their minor forest produce and surplus agricultural produce and to wean them away from exploitative private traders and middlemen. Procurement to the tune of Rs. 76.67 crore in 1999-2000, Rs. 86.75 crore in 2000-01 and Rs.14.29 crore up to December 31, 2001 in 2001-02 was made.

Grant-in-Aid for Minor Forest Produce Operations

This is a Central sector scheme with cent percent grant available to the State Tribal Development Cooperative Corporations (STDCCs), Forest Development Corporations (FDCs), and Minor Forest Product (Trading and Development) Federations (MFPTDFs) for taking up minor forest produce (MFP) operations. Under this scheme grants can be utilised by the States for (i) strengthening the share capital base of STDCCs for increasing the volume of procurement of MFPs; (ii) construction of scientific warehouses; (iii) establishing process industries for value addition to MFP items; and (iv) research and development activities. An amount of Rs. 9.05 crore in 1999-2000 was released followed by Rs. 8.42 crore in 2000-01 and Rs. 1,280.67 lakh in 2001-02.

Village Grain Bank Scheme

A Central sector scheme of grain banks in tribal villages was launched in 1996-97. The scheme provides for food security to prevent starvation in remote and backward tribal areas. Funds are channelised through the Tribal Cooperative Marketing Development Federation of India (TRIFED). So far 534 grain banks have been set up in the country till 2000-01. The scheme of setting up of more grain banks was expanded. Against a mere sum of Rs. 1 crore in 1999-2000, Rs. 20 crore were provided in 2002-2003.

Aid to Voluntary Organisations working for STs

The Ministry gives grant-in-aid to voluntary organisations working for the welfare of the Scheduled Tribes for projects like residential schools, hostels, medical units, computer training units, shorthand and typing training units, balwadis/crèches (in areas not covered by ICDS programmes), libraries and audio-visual units. Sanctions to the tune of Rs. 17.84 crore in 1999-2000 for 225 NGOs, Rs. 23.86 crore for 275 NGOs in 2000-01 and Rs. 28 crore and 97.6 lakh for 155 NGOs in 2001-02 were issued.

Post-Matric Scholarships

The scheme provides financial assistance to students of Scheduled Castes and Scheduled Tribes pursuing recognised post–matriculation courses including professional, technical as well as non-professional and non-technical courses at various levels, correspondence courses and distance/continuing education. The scheme is implemented by State governments and UT administrations, which receive 100 per cent financial assistance over and above the committed liability. An amount of Rs. 76.81 crore was sanctioned in 1999-2000, followed by Rs. 63.1 crore in 2000-01 and Rs. 67.78 crore in 2001-02.

Other Educational Schemes

The Ministry of Tribal Affairs provides National Overseas Scholarship for higher studies abroad, book banks, coaching and allied and upgradation of merit for the benefit of ST students.

During 1999-2000, 225 NGOs funded Rs.17.84 crore; in 2000-01, 275 NGOs and Rs.23.86 crore, and in 2001-02, 155 NGOs funded Rs.28.976 crore. A website of the Ministry was launched on August 21, 2002. The total amount released so far is to the tune of Rs.56, 072 lakh in 1999-2000, Rs.71, 507 lakh in 2000-01 and Rs.99, 662 lakh during 2001-02 under various welfare schemes.

Remarkable achievements

Under the Scheduled Castes and Scheduled Tribes Legislative Amendment Act, 2002, where 42 new tribal communities of different States have been included and 14 tribal communities from the existing list have been deleted and proposal for inclusion for another 86 communities has been taken up.

The national network of Doordarshan (DD1) has started telecasting 52 episodes on different aspects of tribal life on each Friday at 3 PM with effect from January 31, 2003 under the banner ‘Janjatiya Darpan’. The programme has been sponsored at the cost of Rs. 21.84 lakh.

URBAN DEVELOPMENT AND POVERTY ALLEVIATION

Housing

The National Agenda for Governance has identified Housing For All as a priority area with particular stress on the needs of the vulnerable groups. In order to facilitate construction of adequate housing facilities, the Government launched the 2 million housing programme in 1998 with the mission of constructing 20 lakh additional dwelling units every year for the poor and the deprived. Under this programme, HUDCO has sanctioned 40,71,130 units since March 19, 1998 to February, 2003.

The Prime Minister launched Valmiki Ambedkar Awas Yojana (VAMBAY) formally on December 2, 2001 for providing shelter/upgraded shelter to the urban slum dwellers living below poverty line, including those belonging to economically weaker sections. It also has a component on sanitation, water supply and community toilets known as Nirmal Bharat Abhiyan. Over one lakh slum houses would be constructed this year with an allocation of Rs. 256.85 crore. So far, Central subsidy to the extent of Rs. 138.31 crore has been released for construction of 78,767 dwelling units and 16,212 toilet seats. In addition a sum of Rs. 73.43 crore has already been approved in principle for release as Central subsidy for construction of 30,936 dwelling units and 3,590 toilet seats.

HUDCO has been upgraded as Schedule “A” company and its authorised capital has been increased from Rs.1, 250 crore to Rs 2,500 crore. HUDCO sanctioned Rs. 10,390 crore for housing construction from 1970 to March 18, 1998 whereas from March 19, 1998 to February 26, 2003 alone the sanctioned amount is Rs. 14,047 crore. What was sanctioned since 19^th March, 1998 exceeded the sanctioned amount of last 28 years. Similarly, HUDCO’s sanctions for urban infrastructure in the first 28 years were Rs. 4,049 crore; in contrast, since March 19, 1998 its sanctions under this head were Rs. 23,820 crore. HUDCO’s assistance has helped in construction of 136 lakh residential units, 49 lakh sanitation units and 985 urban infrastructure schemes, thus improving the living condition of people in 1,778 towns and thousands of villages.

Fiscal Incentives for the Housing Sector

The Government has provided various concessions to Housing Sector during the past few years. This include increasing exemption under Section 88 of IT Act from Rs. 10,000 to Rs. 20,000, exemption of Capital Gain Tax on sale of immovable property for purchase of more than one house; dispensing of interest tax on loans given by Housing Finance Institutions; tax free status to limited municipal bonds; tax holidays for approved Housing Projects upto 1500 sq. ft. (1000 sq. ft. in Delhi and Mumbai); continuing the concession given for cost effective and environment friendly building material and concessions for rental houses by way of exemption on interest paid on housing loans.

Urban Water Supply and Sanitation

Accelerated urban water supply programme intends to solve the drinking water problem in towns having population of less than 20,000 as per 1991 census. As on December 15, 2002, water supply schemes for 726 towns have been approved at an estimated cost of Rs. 937.61 crore. Outs of these 281 schemes are reported to have been completed till December, 2002.

In case of Low Cost Sanitation Scheme for liberation of Scavengers meant for the conversion of dry latrines into water seal pour flush type and new sanitary type, 860 schemes costing Rs 1,468.72 crore have been sanctioned covering 1,496 towns for liberating 11.792 lakh scavengers from this menial job. Till December 2002 15.45 lakh conversion/construction has been completed and 37,532 scavengers have been liberated thus making 387 towns scavengers free.

Initiatives in the wake of Gujarat earthquake

A series of initiatives were taken in the wake of Gujarat earthquake to create public awareness about the norms of safety and to establish a firm and comprehensive techno-legal regime in all the States and Union Territories, which are vulnerable to natural disasters. Firstly, all the States were asked to make effective use of the Vulnerability Atlas prepared by the Ministry and amend their Municipal bylaws to incorporate the norms prescribed by the National Building Code and Bureau of Indian Standards. For Delhi, which falls in seismic zone IV, the Ministry itself amended the bylaws.

The Building Materials & Technology Promotion Council is constructing jointly with Gujarat Disaster Management Authority nearly 500 model houses to demonstrate disaster resistant technologies. A Landslide Atlas to guide proactive actions in landslide prone areas has also been prepared.

Housing and Urban Development Corporation (HUDCO) was permitted, during the year 2001-2002 to raise tax-free bonds of Rs 1,500 crore as Gujarat Punarnirman Bonds for the reconstruction of houses and infrastructure in Gujarat, post-earthquake.

Urban Transport

A grant of 40 per cent of the cost is being given to the State governments for preparing Comprehensive Traffic System Management plans, feasibility studies and detailed project report for mass urban transport . So far feasibility studies for improvement of traffic and transportation scenario at Delhi, Kolkata, Chennai, Hyderabad, Bangalore, Jaipur, Ahmedabad, Noida, Jammu, Cuttack, Bhubaneswar, Simla, Lucknow, Kanpur, Agra city, and Agra-Mathura, Ferozabad-Fatehpur Sikri-Taj Trapezium areas have already been completed. Feasibility studies for comprehensive traffic and transportation plan are almost complete in Bhopal, Kochi and Thane and are in progress in Indore, Gwalior and Thirvananthapuram urban areas. Studies for short term improvements of traffic and transportation in Rajkot, Jamnagar, Bhavnagar, Raipur and Jabalpur are also in progress.

A Detailed Project Report for Electric Trolley Buses for Chandigarh and MRTS in Bangalore are under examination and a demonstration project for modernisation of Kolkata tramways and preparation of project report for Metro Rail in Jaipur is likely to be taken up shortly.

Delhi Metro Rail Project

The Prime Minister flagged off the services of Delhi Metro Rail on December 24, 2002. The total length of phase I of Delhi Metro is 62.16 kms and the total cost is Rs. 10,571 crore. It is scheduled to be completed by September, 2005 and would help in commuting 21.82 lakh people per day.

Fiscal concession for Urban Infrastructure Development

Many fiscal concessions to activities related to urban infrastructure have been announced, they include; and

The definition of infrastructure has been broadened to include solid waste management and water treatment plants.

The criteria for companies that could avail benefits under the Income Tax Act has been broadened from those maintaining, operating and developing (i.e. all activities were to be done by one company) to now those companies that could be doing either, Developing, Operating and Maintaining or Developing, Maintaining and Operating.

Investment in public companies providing long-term finance for urban infrastructure are now to be considered as eligible investment for charitable trusts thereby enabling more investment in projects related to urban infrastructure.

Tax Free Municipal Bonds

Guidelines have been issued for floating the tax free Municipal Bonds. The income by way of interest up to 10.5 per cent on bonds has been exempted from Income Tax without limit. The funds raised from tax free bonds are to be used only for capital investment for setting up of new projects of expansion, augmentation or improvement of the existing systems relating to urban infrastructure services such as water supply, sewerage, drainage, solid waste management, roads, bridges, fly-over and urban transport. This will motivate the urban local bodies and development agencies to develop and structure commercially viable projects, which will instil the confidence of the investors in the projects. So far Municipal Corporations of Ahmedabad and Hyderabad have been allowed to raise Tax Free Municipal Bonds for Rs.100 and Rs.82.50 crore, respectively.

FDI Allowed for Integrated Development of Township

A decision has been taken to support Foreign Direct Investment (FDI) only “if a city or a sizeable segment of a city or a region is proposed to be developed as an integrated unit with all urban infrastructure facilities along with housing. There would be no automatic approval in such cases. Each case would be examined on merit”. Guidelines for the same have been issued. Government has approved setting up of an integrated residential township in Gurgaon.

Urban Sector Reforms

In order to encourage reforms in urban sector, a reform-linked fund with an initial outlay of Rs.500 crore titled “Urban Reform Incentive Fund” has been launched. The following areas of reform would be encouraged through financial assistance: Rent control laws, Urban Land Ceiling Act, Rationalisation of stamp duty, revision of Municipal laws as per model legislation, levying of user charges. Several States have shown interest for signing MoU with some modification and some States have already carried reforms like repeal of Urban Land Ceiling Act, modification of Rent Control Laws, reforms of Property Tax.

To support one million plus cities (cities with population greater than one million) in meeting transitional costs while moving towards sustainable and creditworthy institutional system of Municipal management and service delivery and sectoral reforms, City Challenge Fund has been constituted. The fund would work as a catalyst for economic reform programmes in cities with population of 5 lakh and above. Central assistance would be restricted to 75 per cent of total cost and remaining 25 per cent will have to be met by the concerned State government/Municipal Corporation. Rupees 500 crore has been allocated for this scheme during the 10^th Plan Period.

A State-level Pooled Finance Development Scheme has been launched to facilitate access to market by a group of small and medium size urban local bodies through a State level intermediary. Tentatively, Rs. 400 crore has been earmarked for that in the10^th Plan Period.

Public-Private Partnership by way of privatisation and by contracting out service delivery to private operators is being contemplated and guidelines are under formulation.

Mortgage Credit Guarantee scheme has been started to protect housing finance institutions from major default.

Swarna Jayanti Shahri Rojgar Yojana (SJSRY)

The Yojana seeks to provide gainful employment to urban unemployed or under employed poor through encouraging the setting up of self-employment ventures or through the provision of wage employment. The Scheme is funded on a 75:25 basis between the Centre and the States. The scheme consists of two major components namely; Urban Self-Employment Programme and Urban Wage Employment Programme.

Under Urban Wage Employment Programme 416.57 lakh man days of work have been generated and 298.63 lakh beneficiaries have been covered under community structure component of this programme with a total expenditure of Rs 605 crore till December 2002.

Under the Urban Self Employment Programme 4,09,468 beneficiaries have been assisted in setting up of micro enterprises, 25,067 DWCUA groups have been formed and 50,802 women have been assisted and 86,220 thrift and credit societies have been formed with an expenditure of nearly Rs 215 crore.

Development of National Capital

Initiatives have been taken for permanent resettlement of squatters with basic civic amenities, action against illegal construction in posh colonies, stopping proliferation of farm houses, checking illegal construction and conversions in DDA flats, regulating the use of Government bungalows by political parties, action against sub-letting of Government houses and garages, saving monuments and buildings of historical importance, heritage.

Delhi Development Authority cleared the entire backlog in case of conversion from leasehold to freehold plots/flats to the tune of 69,000 and 36,600, respectively.

The Prime Minister dedicated Vijayveer Awas Housing Complex of 414 houses for the Kargil heroes to the nation.

Water Harvesting made Mandatory in Delhi

Water harvesting through storing of water runoff including rain water in all new buildings on plots of 100 sq. mts and above has been made mandatory in the National Capital Territory of Delhi by a notification seeking to amend the Building By-laws, 1983, issued by the Ministry. The notification further stipulates that all buildings in the National Capital Territory of Delhi, having a minimum discharge of 10,000 litres and above per day, shall incorporate wastewater re-cycling system. The recycled water should be used for horticultural purposes.

Transparency and e-governance

A comprehensive database of all land allotments made by the Land and Development office since 1930 to July, 2002 have been posted on the following websites http://urbanindia.nic.in and http://ldo.nic.in. Interactive Voice Response System and website for the CPWD was launched and E-Governance project in 3,658 urban local bodies were started. The Government of India and Netherlands have signed a consortium for capacity building programme that includes both conventional training and E-Learning. All the 73,000 elected representatives and half a million officials of local bodies would be trained in municipal administration, accounting, best practices, etc.

Rejuvenation of culturally significant cities

A scheme has been drawn up for rejuvenation of culturally significant cities. Its basic objective is to ensure that these culturally significant cities become vibrant centres, not only of civic life, but also of economic, social and cultural advancement. The cities to be covered by the scheme would be decided in consultation with the State governments, but it is proposed as a general preposition to select at least one culturally significant town in each small State and two in the large State. In this connection, Minister for Urban Development and Poverty Alleviation visited Varanasi, Madurai, Trichy, Indore, Ujjain, Amritsar, Hardwar and Hyderabad.

Good Urban Governance Campaign

The Good Urban Governance Campaign, the first sub-regional launch of the United Nations Centre for Human Settlements (UNCHS) global campaign, has been launched in India. The India launch is a part of the Global Campaign for Good Urban Governance spearheaded by UNCHS of the United Nations. The goal of this campaign is to improve the quality of life in cities, especially for the poor and women, through improved local governance. The vision is to allow full flow of women’s thoughts and initiatives, since women are one of the biggest levers of positive change in the society. The strategy for achieving the goal and vision is to advocate the norms of good urban governance and promote inclusive decision-making processes.

SPECIAL INITIATIVES

Scheme for prevention of Air Crash due to bird hit

A new centrally sponsored scheme for solid waste management and drainage in 10 selected IAF airfield towns has been approved. This, Rs. 99.34 crore project, is expected to be completed in three years with 100 per cent grant from Government of India. These 10 cities which have witnessed major air crashes due to bird hits are Gwalior, Sirsa, Ambala, Pune, Dundigal, Jodhpur, Tezpur, Bareilly, Hindon and Adampur.

Development of North-East and Sikkim

Ten per cent of the Annual Plan Budget is earmarked for implementation of Projects/Schemes for the North Eastern States including Sikkim. The unspent balance is transferred to Non-Lapsable Central Pool of Resources (NLCPR) for North East. Till December 31, 2002, 12 new schemes worth Rs. 116.45 crore were sanctioned and Rs. 67.35 crore released for this purpose.

Sky Bus Metro

Technical Committee is being constituted to examine the feasibility of introducing the Sky Bus Metro in cities as an alternate transport system. Proposals from governments of Goa, Maharashtra and Kerala are under consideration of the Ministry for further action.

Augmenting the size of Lady Officers’ Pool

It has been decided to augment the size of lady officers pool in a phased manner for a period of 3 years by increasing the number of units in each type of general pool residential accommodation by almost three times. As of now 4,750 units in various types of general pool residential accommodation have been reserved for ladies.

National Slum Policy

A draft national slum policy with the objective to strengthen the legal and policy framework to facilitate the process of slum development and improvement on sustainable basis has been formulated. After receiving suggestions and comments from all interested parties the policy will be finalised.

Ganga Barrage Project

The Rs 263.40 crore Ganga Barrage Project envisages rectifying gradual shifting of river Ganga from its right bank at Kanpur and also solving the drinking water problem.

Improving quality of life for jawans of Indo-Tibetan Border Police

Green houses are being setup at the border posts of ITBP for improving quality of life of jawans and officers living in border areas where extremely hard climatic condition prevails and even vegetables cannot be grown. Ninety-seven such houses would be setup in the States of J&K, Himachal Pradesh, and Uttaranchal.

WATER RESOURCES

National Water Policy – 2002

The (Revised) National Water Policy was approved by the National Water Resources Council (NWRC) in its 5^th meeting held on April 1, 2002. National Water Resources Council adopted revised National Water Policy, 2002, emphasising integrated water resources development and management for optimal and sustainable utilisation of available surface and ground water. Action Plan for Implementation of National Water Policy-2002 was placed before the Irrigation/Water Resources Ministers of State governments and Union Territories for adoption and considered the rationalisation of water rates, completion of ongoing major and medium irrigation projects and the river basin organisations.

Accelerated Irrigation Benefits Programmes (AIBP)

Central Loan Assistance to States for completion of ongoing projects is being given under the AIBP, which was started in 1996-97, so that benefits could start flowing early with preference to projects benefiting Tribal/Drought Prone areas. The projects covered under AIBP are monitored by Central Water Commission with the help of its regional offices situated all over the country, to ensure quality and obviate time and cost over runs. Fast Track Programme has been launched fully funded by the Centre by providing 100 per cent loan, w.e.f. February 1, 2002 to provide further impetus for completion of major and medium irrigation projects, within one year (two working seasons). Under this AIBP, Rs. 5,738 crore have been released and additional irrigation potential of 8.5 lakh has been created by projects benefiting tribal/drought prone areas.

Solving Water disputes among the River Basin States

Inter-state Water Disputes (Amendment) Act 2002 has been enacted on March 28,2002 which provides for Constitution of Inter-state Water Disputes Tribunal and also prescribes time limit for the tribunals to give awards. The Central Government has to constitute Tribunal within a period of one year from date of receipt of request from State government. The Tribunal has to give report with in a period of three years extendable by Central Government for a period not exceeding two years. This will help in solving the Inter-State Water Disputes in a time-bound manner. Realising the criticality of the situation, the Supreme Court on February 6, 2003 has directed that the matter of distress sharing of water should be decided by the Cauvery Water Authority chaired by the Prime Minister. In the mean time, Karnataka was required to release sufficient water from its reservoirs so as to ensure an average inflow of 4,500 cusecs of water per day at Mettur amounting to about 0.4 TMC per day as par direction of the 6^th meeting of CRA held on February 10, 2003.

Sharing of Ganga Water

Joint measurements during lean seasons (January-May) is being conducted to the satisfaction of both India and Bangladesh as per the Indo-Bangladesh-Treaty, on sharing of Ganga waters.

Indus Water Treaty

Indus Water Treaty, which stood the test of time as on today, was maintained despite high-level officials and water experts in Pakistan unnecessarily suspecting India of plans to scrap the Indus water treaty of 1960. However, regular meeting of permanent Indus Commission was convened to resolve pending issues.

Treaty with Nepal

An agreement has been reached with Nepal to supply real time data in respect of five hydrometric station located in Nepal on river Narayani, Kosi, Rapti, Bagmati and Kankai for enabling the flood forecast with increased warning time on Indian side. Joint Inception Report for Sapta Kosi High Dam Multipurpose Project and Sun Kosi Storage cum Diversion Scheme to provide for flood control benefits in North Bihar have been finalised and the process for conducting field investigations and preparation of DPR has been initiated. Detailed Project Report (DPR) for 5600 MW Pancheshwar Multipurpose Project is nearing completion.

Cooperation with the Neighbouring countries

Exchange of Data from the Flood Forecasting Network, consisting of 35 hydro meteorological/meteorological stations on rivers common to India and Bhutan in operation with funding from India, continued. A breakthrough in the India-China relations was made with the signing of a Memorandum of Understanding (MoU) for provision of hydrological information on Brahmaputra river in respect of 3 stations, namely, Nugesha, Yangcun and Nuxia in flood season by China to India for improving the flood forecasting in the North Eastern Region, which has been started since June 1, 2002. Discussions have been initiated for extending similar facilities on the Sutlej. Transmission of flood forecasting data on major rivers like Ganga, Teesta, Brahmaputra and Barak during the monsoon season from India to Bangladesh also continued.

OTHER PROJECTS

Sardar Sarovar Project

The Sardar Sarovar Project (SSP) is an inter-State multi-purpose project on the river Narmada in Gujarat. It is a joint venture between the States of Gujarat, Madhya Pradesh, Maharashtra and Rajasthan. The Narmada Water Disputes Tribunal, considering the development of the water resources of the basin as a whole, passed its award in 1979 allocating sharing of Water of Narmada and Power of SSP. The construction of SSP, which was stopped earlier due to petition of Narmada Bachao Andolan in 1994, was again started after the directions of the Supreme Court, an Action Plan for the completion of the Sardar Sarovar Dam was finalised by a Committee (Review Committee for Narmada Control Authority) consisting of the Union Minister of Water Resources and the Chief Ministers of the participating States of Madhya Pradesh, Gujarat and Maharashtra in August, 2001. The finalised Action Plan envisaged completion of Dam by 2005 also included time frame for Rehabilitation Resettlement (R&R) of the remaining project affected families for the various stages of the construction of the dam. Accordingly, the NCA after careful consideration of clearance given by Environment Sub-Group and RR Sub-Group and fulfilment of the requirements as per directions of the Supreme Court permitted raising of the Sardar Sarovar Dam height further from existing EL 90 m to EL 95 m. The dam height has since been raised to EL 95m with 3 m humps during July, 2002 for ensuring smooth flow of flood waters over the dam blocks. Subsequent to the approval by the Narmada Control Authority (NCA), the dam height was raised, and this has mitigated the problem of drinking water and irrigation in arid areas of Saurashtra and North Gujarat.

Tapping Ground Water Resources

One hundred and fifty six artificial recharge pilot projects are on under the Central Sector Scheme, with a total outlay of Rs. 22.69 crore in the areas where there has been decline in ground water level and where there has been ground water quality deterioration. Computer Data Centres at 26 offices have been established and 14 water quality laboratories having linkages with the State departments and data integration of surface water domain have been upgraded. Notified 11 areas throughout the country for regulation of ground water development. A Web-site on roof top rain-water harvesting has also been launched. More than 100 mass awareness campaigns throughout the country and about 40 training courses on rainwater harvesting have been organised. Identified vulnerable areas, which are affected with ground water quality problems with respect to fluoride, nitrate, arsenic, etc. Also a number of technical documents on the problems of ground water quality in the country have been published. So far 1,344 tube wells under the Accelerated Ground Water Exploration in the five drought affected States of Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh and Orissa have been constructed.

Command Area Development Programme

Command Area Development Programme has been restructured to include improvement of system deficiencies, drainage works, remodelling of tanks, reclamation of waterlogged areas in irrigated commands, and on farm development in hilly areas. The restructured CAD Programme seeks active involvement of the farmers in the development works under the programme. Involvement of farmers in the management of irrigation under the Command Area Development Programme is an important component of the programme. So far about 40,000 Water Users’ Associations covering an area of 8 million hectares have been formed. Adaptive trials, demonstrations and training of farmers and functionaries of implementing departments are encouraged to disseminate the technical know-how among the farmers for establishing suitable cropping patterns and improving farm practices without deteriorating soil health.

National Commission for Integrated Water Resources Development

The National Commission for Integrated Water Resources Development, has come out with projections for availability and requirement of water in India by the years 2010, 2025 and 2050 outlining development and management strategies concerning various sectors and recommendations on local and regional water resources development and management issues. The recommendations of the Commission are being processed for acceptance and many of them have been incorporated in the Action Plan. The Nuclear Hydrology Laboratory under the National Institute of Hydrology, Roorkee, has been accredited as one of the top three institutes of the world by the International Atomic Energy Agency. The National Institute of Hydrology has been pursuing glacial melt studies to understand the impact of Climate Change on the Water Resources of the country.

Long Term Vision document for Integrated Water Resources Development and Management was released by the Prime Minister on February 5, 2003 marking the curtain raiser for ‘Freshwater year 2003’ as per UN’s guidelines envisaging optimal sustainable development, maintenance of quality and efficient use of country’s water resources to match the growing demands on this precious natural resource with active involvement of all stakeholders. Review of Performance of 9^th Plan and approach and strategy for 10^th Plan discussed at the 12th National Conference of Water Resources and Irrigation Ministers convened at New Delhi on the same day at the same venue.

Setting up of Third Irrigation Commission was mooted out in the 12^th National Conference of Water Resources and Irrigation Ministers of States and Union Territories.

Inter-Linking of Rivers

The Interlinking of Rivers comprises of two components – the Himalayan Components-14 links and the peninsular components-16 links. A Task Force headed by Shri Suresh Prabhu has been constituted for bringing about consensus among States. Prioritise the links suggesting suitable mechanism for project funding. The Interlinking of Rivers will not only solve the drinking, industrial and irrigation needs of deficit States, but it will also help in mitigating the flood problems of many States.

Central Water Commission (CWC)

The CWC continued to provide valuable assistance to the State governments in flood management by making on an average, 6,000 timely flood forecasts with high degree of accuracy.

The Nuclear Hydrology Laboratory under the National Institute of Hydrology, Roorkee was accredited as one of top three institutes of the world, by the International Atomic Energy Agency.

WOMEN AND CHILD DEVELOPMENT

National Nutrition Mission

The Prime Minister, in his Independence Day Speech on August 15, 2001, had announced that a National Nutrition Mission would be set up and that foodgrains at subsidised rates would be made available to adolescent girls and expectant and nursing mothers belonging to below poverty line families. To begin with, and to give effect to the Prime Minister’s announcement, a limited, focused intervention has been initiated. This is a pilot project, initially for two years. It is to be implemented in the two most backward districts in each of the major States, identified on the basis of ranking developed by Planning Commission, and in the most populous districts in smaller States and Union Territories.

Women’s Empowerment Year

The year 2001 was declared as Women’s Empowerment Year. As part of the Women’s Empowerment Year, the Department of Women and Child Development (WCD) and its associated bodies were involved in a number of initiatives to improve the status of women in the country. The National policy for the empowerment of women with the objective of bringing about advancement, development and empowerment of women was formulated. Five Stree Shakti Puruskars to honour and recognise the achievements of individual women were presented, for the first time, by the Prime Minister at the launch of the Women’s Empowerment Year. The Government has also decided to give annual awards to selected ‘anganwadi’ workers on the basis of exemplary performance.

Domestic Violence (Prevention) Bill

The Department drafted a Domestic Violence Against Women (Prevention) Bill-2002 through an elaborate process of consultation at different levels involving various women’s groups, activists, lawyers, national institutions, State governments and all concerned ministries and Departments of Government of India. The Bill was introduced in the Lok Sabha on the occasion of International Women’s Day on March 8, 2002.

Review of Laws

As part of the activities for the Women’s Empowerment Year, laws concerning women, which are under the Department, are being reviewed. This is being done to ensure that provisions in existing laws that are discriminatory towards women are removed and to ensure that their rights and interests are protected. The laws to be reviewed include Indecent Representation of Women’s Act, Sati Act, National Commission of Women Act, Immoral Traffic (Prevention) Act and Dowry Prohibition Act. Besides, two sub-groups constituted under the Task Force on Women and Children have submitted to DWCD a report involving a comprehensive review of the 22 laws concerning women which include the Minimum Wages Act, 1948, Maternity Benefit Act, 1961, and Factories Act, 1948(as amended in 1976). The DWCD has circulated the report to the concerned Ministries and also written to them to expedite their efforts in this regard.

Gender Budgeting

During 2001, the Department initiated the gender budgeting exercise. For the first time, a chapter on Gender Inequality was incorporated in the Annual Economic Survey. A gender analysis of the Budget 2001-02 was carried out. It also initiated measures for preparing Gender Development Index for the States and the District.

Swayamsiddha

Two schemes were launched for women during 2001. The first scheme, known as Swayamsidha, is an integrated programme for the empowerment of women through the network of self-help Groups of women. It seeks to achieve convergence of all women-related schemes of State and Central Governments at the block level. The programme shall be implemented through the State government in 650 blocks throughout the country, but the State governments will be at liberty to choose the implementing authority, which could be either a department of the government, or a corporation or an autonomous body or even a voluntary organisation. The scheme was formally launched in November, 2001.

Swadhar

The second scheme, known as Swadhar, provides for holistic rehabilitation of women in difficult circumstances, like destitute widows deserted by their families in religious places like Vrindavan, Kashi etc; women prisoners released from jail and without family support; trafficked women forced in prostitution; HIV/AIDS affected women etc. This will be a Central scheme, which will be implemented by the department through the State government or its agencies, voluntary Organisations or Trusts. The scheme has provisions for grants for construction or renting of shelter homes, food, medical-care, counselling, training of the inmates etc.

ICDS

The Integrated Child Development Services Scheme (ICDS) is to be universalised by the second year of the 10^th Five Year Plan. In all, 4, 761 projects became operational till the end of September, 2002. The 10^th Plan has proposed full operationalisation of 563 projects in the first year itself (i.e. in 2002-03), and the last 481 odd by 2003-04. Certain expansion activities (new urban ICDS projects, additional ‘Anganwadi centres’ and expansion of “Kishori Shakti” Yojana) have also been proposed. The Adolescent Girls Development Scheme called the “Kishori Shakti Yojana”, is being extended to cover 2,000 blocks in the country. Under this initiative about 13 lakh adolescent girls will benefit. Honorarium to ‘Anganwadi workers has been almost doubled from April, 2002, and they will now be getting Rs. 1, 000 per month.

Balika Samridhi Yojana

The Balika Samridhi Yojana has been revised to provide for a post delivery grant of Rs. 500 to be deposited in a bank in the name of the girl child. In addition, the girl child will become eligible for annual scholarships for each successfully completed year of schooling.

Swa-Shakti Project

Swa-Shakti Project, a World Bank and International Fund for Agricultural Development supported project, is being implemented in 57 districts of nine States. According to the latest reports, 231 NGOs have already formed 17,527 Women’s self-help groups in 7, 288 villages.

Teleconferencing with Women at the grassroots

Teleconferences involving interaction between legislators and policy makers and women at the grassroot levels have been organised regularly. The main objective of these teleconferences has been to provide fora for grassroot level women to share their problems regarding delivery of services and also to get information about their rights and about WCD programmes and policies.

National Commission for Children

A National Commission for Children is to be set up, which will be headed by a Chairperson who has been a Judge of the Supreme Court. It is to be constituted on the pattern of the National Human Rights Commission. The Commission would be adequately empowered to go into all aspects of development and problems of children. A proposed charter for children is also being brought out, which would be a document for protection of rights for children.

Campaign against Female Foeticide

Serious concern has been expressed over the incidence of female foeticide, strikingly brought out by the latest census figures. In order to broad base the appeal against such evil practices, the Government has sought to mobilise the cross-section of society including the leaders of all religions. WCD organised a conference of religious leaders to evolve a strategy/consensus to combat female foeticide. During the conference, the leaders of various religions while stating that no religion sanctioned such a heinous crime, called for effective steps including punitive and legal action against such practices.

YOUTH AFFAIRS AND SPORTS

YOUTH AFFAIRS

National Commission for Youth

Pursuant to the announcement made by the Hon’ble Prime Minister at Agra while addressing a public meeting on October 14, 2001, the Cabinet in its meeting held on December 4, 2001, approved the setting up of the National Commission for Youth with its headquarters at New Delhi. Accordingly, the National Commission for Youth was set up vide this Ministry’s Resolution dated March 15, 2002 for a period of six months, i.e. up to September 15, 2002. The terms of reference of the Commission are as follow:

To construct and recommend an action oriented strategy and approach for the development of youth and suggest new policy measures and programmes;

To review existing youth related schemes and programmes implemented by the Ministry of Youth Affairs and Sports, as well as by other Ministries/Departments of the Government of India;

To conceptualise a framework for coordination of youth related activities of State Governments, Ministries/Departments of Government of India, NGOs and the private sector and to recommend measures for convergence;

To look into the recommendations of the Working Group on Adolescents set up by the Planning Commission and suggest specific intervention strategies for catering to the needs of the group; and

To suggest measures for the implementation of the Plan of Action of the new National Youth Policy.

The Commission, comprising a Chairman, five Members and a Member-Secretary, will study the areas of concern for the youth of the country. The focus will be on the problem of youth unemployment, to suggest better implementation and coordination of the existing youth- related schemes by various agencies while recommending new programmes and policies, and, finally suggest measures for the implementation of the Plan of Action of the new National Youth Policy. The Commission was expected to submit its report in six month’s time i.e. by September 15, 2002. Its tenure has now been extended by a period of one year beyond September 15, 2002, i.e. upto September 15, 2003.

National Reconstruction Corps (NRC)

The National Reconstruction Corps was formally launched in 80 selected districts of the country in the month of June 2000 as a pilot project in the Central Sector. The recruitment of project officers and volunteers was completed by the month of June 2001 followed by induction training. Various centrally sponsored schemes were identified in the implementation of which NRC volunteers were to be involved. The schemes were Swarn Jayanti Gram Swarozgar Yojana, Swarn Jayant Shahri Swarozgar Yojana. National Disease Control Programmes with particular focus on Enhanced Malaria Control Program (EMCP), Watershed Development Schemes of the Ministry of Rural Development and the Ministry of Agriculture, Non-Conventional Energy Sources, Afforestation, and Promotion of Literacy. During the current financial year, as was approved by the Ministry of Finance and the Planning Commission, the NRC scheme was extended to 40 more districts.

Since the pilot scheme was approved for a period of two years only, the Planning Commission is getting an Evaluation Study of the Scheme done for deciding further continuance of the scheme. The initial reports about the implementation of the scheme have been positive.

National Service Scheme

National Service Scheme, popularly known as NSS, is a Centrally Sponsored Scheme, being run by the Ministry. It was launched on September 24, 1969, during Mahatma Gandhiji’s birth centenary year, with its primary focus on the development of personality of the students through community service.

The following two types of programmes are conducted encompassing a variety of constructive activities:

Regular Activities

Students are expected to work as volunteers for two years, rendering community service for a minimum of 120 hours per annum. The activities include constructive work in adopted villages and slums, blood donation, adult and non-formal education, health, nutrition, family welfare, AIDS awareness campaigns, tree plantation and improvement of campuses.

Special Camping Programme

Under Special Camping Programme, a camp of 10 days duration is conducted every year in the adopted villages on a specific theme like “Youth for Mass Literacy”, “Youth for Social Harmony”, “Youth for Healthy Society”, “Youth for Hariyali” and “Youth for Jal Samvardhan”. The theme for the year 2003-2004 is “Youth for Swachhta”.

During 2002-03, a target enrolment of 19.37 lakh volunteers has been set for undertaking various constructive activities under the scheme. Up to December 31, a total of 8,588 Special camps were organised and 11, 293 villages were adopted under the scheme against a target respectively of 9000 each.

NEW SCHEMES

Scheme for Development and Empowerment of Adolescents.

The draft National Youth Policy has recognised adolescents as a distinct segment of Youth population and has highlighted some of their problems. The Planning Commission while recognising the distinct problems faced by the segment of the youth, constituted a working group on welfare and development of adolescents, which recommended that the subject of Adolescents should be dealt with in the Ministry of Youth Affairs and Sports as the Nodal Ministry. The working group had also projected the financial requirements in the Central sector amounting to Rs. 112 crore for implementation of various schemes concerning the welfare of the adolescents by the Nodal Ministry.

The Ministry has prepared a draft for a new scheme called scheme of ‘Financial Assistance for Development and Empowerment of Adolescents’ which includes inter-alia the new intervention strategies like career counselling, vocational guidance, emotional counselling, camps and workshops for the adolescents to educate them about problems of education, health and nutrition. The draft scheme has been posed before the competent authority for approval.

Establishment of National/State Youth Centres

The main objective of the scheme is to provide a common platform to the youth of the country to showcase their abundant creative talents, foster better understanding among them and to provide a hub of information on development and trends in various matters of national and international importance.

Deen Dayal Upadhyay Swavlamban Yojana

Deen Dayal Upadhyay Swavlamban Yojana has been undertaken with a view to organise rural youth in the form of Self-Help Groups (SHGs) and to develop in them skills so that they may start income generating self-employment ventures.

The strategy of project implementation includes selection and training of key project implementers and selection of coverage villages. As a part of second phase, activities such as capacity building, formation of SHGs and collaboration with district administration are being undertaken. So far 100 SHGs have been formed under this project. These youth have already started various self-employment ventures, which are ideal for local consumption, e.g. packing of daal (pulses) grinding and packing of local spices, poultry, bee keeping and various other agro based and handicraft items.

As part of the pilot initiative, the project has been started in 12 identified districts of the country. These include: Karvi Anglong, Dakhin Kamrup (Assam), Gumla, Simdega (Jharkhand), Bhopal, Sehore, Tikamgarh and Chatarpur (M.P), Jhansi, Lalitpur and Mathura (U.P) and Phulbani (Orissa).

North East School Students Youth Cultural Exchange Programme

This is a significant programme to acquaint the youth of North-East with the rich cultural heritage and diversity of this country. The youth are provided with an opportunity to interact with their peers in other parts of the country.

Whereas, in the earlier programmes, the main emphasis was laid on the school children of North-East states visiting other parts of the country but this year it has been made a true exchange programme by taking people from rest of the country to North Eastern States also. Programmes such as workshops, seminar, cultural and adventure events are also organised on this occasion.

North-East Musical Fest

To discover the known and lesser-known cultural aspects of North-Eastern part of the country, this programme is being undertaken to provide opportunities to young men and women so that they may exhibit their talents in fullest manner.

It is primarily a festival of western music (solo as well as band form). As part of this programme, two levels of competitions are organised among the identified musical bands. The preliminary level competitions were organised in the capitals of all eight North-Eastern States from February 5-19, 2003. In each of this State level competition, a minimum of 10-15 musical bands (representative of various districts of the states). Two winners of the state level competitions have qualified for the Final or National level competition to be held in April, 2003.

SPORTS.

Afro-Asian Games

India enjoys the distinction of hosting the First Asian Games in 1951 at New Delhi. Thereafter, the IX Asian Games were also held here. Now India will soon be hosting the First Afro-Asian Games. Slowly and steadily, there is resurgence in Indian sports – both in terms of conducting mega-sports events and performance of Indian teams in these sports events.

The First Afro-Asian Games, which were earlier scheduled to be held from November 3-11, 2001, in New Delhi in eight disciplines – athletics, boxing, football, hockey, shooting, swimming, tennis and weightlifting. The Games were postponed due to the international security scenario. The Games will now be held from October 24, 2003 to November 1, 2003, in the above-mentioned disciplines.

Sports Infrastructure creation for first Afro Asian Games

In order to prepare the venues for the Games, the Sports Authority of India (SAI) was given the responsibility to carry out the necessary up-gradation of SAI Stadia. The civil works at various stadia were entrusted to CPWD and construction agencies under the Delhi Government i.e. DDA, NDMC and MCD.

Repair/renovation works undertaken in SAI stadia:

Jawaharlal Nehru Stadium

Replacement of eight-lane synthetic athletic track in the main arena, .Replacement of four-lane synthetic athletic Track in warm-up area outside the Stadium, Repair of concourse/seating area and repair/replacement of seats and Installation of a colour videomatic electronic score board.

Indira Gandhi Stadium

Repair/replacement of arena lights, Repair/replacement of A.C.plant chillers. Repair/replacement of partition wall and Repair of leakage in roof of structural repairs.

National Stadium

Installation of new synthetic hockey turf in main arena and Installation of new synthetic hockey turf outside stadium for practice.

Talkatora Swimming Pool

Replacement of water boiler and Installation of electronic score board.

Dr. Karni Singh Shooting Ranges

Wind -breakers for all ranges, Upgradation of 10 Mt. Range and Replacement of overhead baffles.

Setting up of All India Council for Sports

The Ministry has set up an All India Council of Sports to advise the Ministry on policy issues regarding promotion and development of sports in the country. The President of this advisory body is Shri Vijay Kumar Malhotra, MP, with the rank of a Cabinet Minister.

The aims and objectives of the Council include advising the Ministry on the implementation of policies for promotion of sports and games, including indigenous games in the country; steps to implement plan of action of National Sports Policy, ways and means to maximise medal prospects of the Indian contingent at the Olympic Games and other major international events and issues/matters pertaining to functioning of national sports federations and prevention of drug abuse and match fixing etc.

Two new schemes – namely State Sports Academy and Scheme for Dope Test are being introduced during the 10^th Plan.

National Sports Policy, 2001

The Government approved National Sports Policy on September 11, 2001. The salient features of the policy are:

Broad-basing of sports and achievement of excellence;
Upgradation and development of infrastructure;
Support to the National Sports Federations and other appropriate bodies;
Strengthening of scientific and coaching supports to sports;
Incentives to sports-persons;
Enhanced participation of women, tribal and rural youth;
Involvement of the Corporate Sector in sports promotion; and
Creation of greater awareness to promote sports.

Support of Industrial and Corporate Sector for Promotion of Sports

A Memorandum of Understanding was signed between Sports Authority of India (SAI) and FICCI in April, 2002, to promote sports and achieve excellence at the international level.

The Confederation of Indian Industries has agreed, in principle, to support four sports disciplines of their choice, till Athens Olympic – 2004. The disciplines include: athletics, boxing, wrestling and yachting.

CII is also working in the field of sports through its Golden Hopes Scheme. Under this scheme, four exceptionally talented sports-persons have been selected for support till Beijing Olympics – 2008. A small beginning in this regard has been made, as Tata Steel has already taken Diwakar Prasad, one of CII Golden Hopes for support till Beijing Olympics –2008.

Cash Awards to Olympic Medalists

Olympic medallists are proposed to be given cash awards, Rs.1 crore for Gold, Rs.75 lakh for Silver and Rs.50 lakh for Bronze medals, respectively. Cash awards to winners in other International sports events are proposed to be enhanced substantially.

Arjuna Awards

The Arjuna Awards were instituted in 1961. The Government has recently revised the Scheme for Arjuna Award for outstanding performance in sports and games. As per the revised scheme, to be eligible for the award, a sportsperson should have had not only good performance consistently for the previous three years at the international level with excellence for the year for which the Award is recommended, but also have shown qualities of leadership, sportsmanship and a sense of discipline. The awardee is given a statuette, a scroll of honour, ceremonial dress and a cash award of Rs.3.00 lakh. A major departure from the earlier scheme is that the Committee for selection of awardees is now headed by a sportsperson of eminence and other members of the Committee will be : Olympians of eminence (5 members); Arjuna Awardees from different disciplines (4 members); Sports Administrators ( 2 members) and Director/Deputy Secretary (Sports), Ministry of Youth Affairs and Sports, is a Member Secretary.

Dhyan Chand Award for Life Time Achievement in Sports and Games

A new Dhyan Chand award for Life Time Achievement in Sports and Games has been instituted from the year 2002, to honour those sports-persons who have contributed to sports by their performance and continue to contribute to promotion of sports even after their retirement from active sporting career. The award carries a cash prize of Rs.1.50 lakh, a plaque and a scroll of honour. The awards for the year 2002 were given to three sports-persons, namely Smt. Aparna Ghosh (Basketball), Shri Shahuraj V. Birajdar (Boxing) and Shri Ashok Diwan (Hockey).

The award is given only in disciplines falling under the following categories:-

a) Olympic Games/Asian Games/Commonwealth Games/World Cup/World Championship disciplines and cricket;

b) Indigenous Games; and

c) Sports for the physically challenged

Performance of Indian Sports-persons in International Competitions

XVI Commonwealth Games, 1998

The XVI Commonwealth Games were held at Kuala Lumpur from September 11-21, 1998. India participated only in six disciplines, viz. shooting, weightlifting, badminton, hockey (Men & Women), boxing and cricket.

At these Games, India won 7 Gold, 10 Silver and 8 Bronze medals (25) in 4 disciplines out of the 6 disciplines participated. This medal tally was better than that of the last Commonwealth Games.

XVIII Asian Games, 1998

XVIII Asian Games, 1998 were held at Bangkok, Thailand from December 5 to 20, 1998. The performance of Indian sportspersons was much better in comparison to the last Asian Games, 1994. Performance of Hockey team (Men) deserves special mention as the team won the Gold Medal after a gap of 32 years. In athletics, Ms. Jyotirmoyee Sikdar had a brilliant performance, winning two gold medals. Similarly, in Boxing, Shri Dingko Singh and in Billiards, Shri Geet Sethi and Shri Ashok Shandilya performed extremely well.

Sydney Olympic Games, 2000

The XXVII Olympics were held in Sydney (Australia) from September 15, 2000 to October 2, 2000. These are highly competitive Games and many new world records were created during the Sydney Olympics. Competition was held in 28 events. India participated in 13 disciplines at the Sydney Olympics. Karnam Malleswari won a Bronze medal in weightlifting.

XVII Commonwealth Games, 2002

The XVII Commonwealth Games, 2002 were held at Manchester, England, from August 25 to September 4, 2002. At these Games, 895 medals (282 Gold, 279 Silver and 334 Bronze) were won by different countries. India secured fourth position (rank by total) by winning 69 medals (30 gold, 22 silver and 17 bronze).

XIV Asian Games, 2002

The XIV Asian Games were held at Busan, South Korea from September 29 to October 14, 2002. Our sportspersons won 36 medals (11 Gold, 12 Silver and 13 Bronze Medals).

The Ministry also assists sportspersons under a number of schemes, such as, Sports Scholarship Scheme, Sports Fund for pension to meritorious sportspersons, Special cash awards, assisting promising sportspersons and supporting personnel, national welfare fund for sportspersons etc.

India’s Performace in Major International Events

8^th SAF Games –September 25 to October 4,1999, at Kathmandu. Indian Contingent had won total 192 Medals including 102 Gold, 57 Silver and 33 Bronze.

3^rd Commonwealth Shooting Championship –November 16 to 25, 1999, at Auckland. Indian Rifle & Pistol Shooters had won 25 medals including 10 Gold, 8 Silver and 7 Bronze medals and topped the medal tally follwed by England and Australia. In the 2^nd Commonwealth Shooting Championship held at Langkawi in 1997, our medal tally was 5 Gold & 3 Silver medals only.

ATP World Doubles Tennis Championship – November,1999, at USA. Leander Paes and Mahesh Bhupathi secured 2^nd place.

Asian Hockey Championship for Women –December 1 to 9^, 1999, at Delhi. Indian team won Silver medal.

9^th Asian Shooting Championship –January 22 to 31^, 2000. at Malaysia. Indian Shooters won 6 Medals including 2 Gold, 2 Silver and 2 Bronze.

Commonwealth Table Tennis Championship –February 11 to 17, 2000, at Singapore. Indian team won 1 Gold and 2 Bronze medals.

Asian Weightlifting Championship –May 2 to 8, 2000 at Osaka. Indian Women Weightlifters won 1 Gold, 1 Silver and 1 Bronze medal.

FIDE World Chess Championship –November 26 to December 26, 2000, at Delhi and Tehran. Grand Master Vishwanathan Anand became World Champion after defeating Alexi Shirov of Spain in the finals.

All England Badminton Championship –March 6 to 11, 2001 at Birmingham, UK. Shri P. Gopi Chand won the Championship.

French Open Badminton Championship –March 15 to 18, 2001 at Paris. Shri Abhin Shyam Gupta won the Championship.

15^th Commonwealth Table Tennis Championship –April 14 to 20, 2001 at New Delhi. Indian team won 3 Silver and a bronze medal.

Indian Jr. Athletic Team participated in Jr. Asian Championship held in Brunnai from July 16 to 18, 2001 and won 1 Gold, 6 Silver and 3 Bronze medals.

Indian Shooting Team participated in IV Common Wealth Championship and won total of 27 medals – 13 Gold, 6 Silver and 8 Bronze, winning the overall championship from August 21 to September 1, 2001 at Bisley (England).

9^th Asian Rowing Championship held at Yangling, China from September 22 to 29 , 2001. Indian Rowers won 4 Bronze medal & 1 Silver medal in Senior category & 1 Silver medal in Junior category.

Indian Jr. Hockey (Men U’21) team won the 7^th Junior World Cup Hocky tournament held at Hobart Australia from October. 9 to 21, 2001.

Indian Hockey Team won the 1^st Men’s Champions Challenge Trophy held from December 7 to 15, 2001 at Kuala Lumpur, Malaysia.

35^th Chess Olympiad held in Bled, Slovania from October 25 to November 11, 2002 and WGM Vijayalakshmi Subbaraman won the Silver medal in Top Board. IM Surya Sekhar Ganguly earned his 3^rd GM norm with a 6/9 score.

Hockey (Men) Champions Trophy was held in Germany from August 31 to September 8, 2002 and Indian team secured 4^th position.

ISSF World Cup was held at Atlanta from May 18 to 26, 2002 and Ms. Anjali Vedpathak won Silver Medal(Quota) in Air Rifle women and also qualified for 2004 – Olympic Games.

Asian Clay Shooting championship was held at Bangkok (Thailand) from August 12 to 20, 2002 and Sh. Anwar Sultan won Gold medal Trap and in double Trap and Indian team won Bronze medal.

Yachting World Championship 420 class was held in Germany from June 20 to July 19, 2002 and India won Gold medal.

DeshGujarat

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From archive: Achievements of Atal Bihari Vajpayee led NDA government

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