"One year ago, the people India reposed their faith in the National Democratic
Alliance. I thank my countrymen for giving my government and me an opportunity to serve Mother India.

    The people voted for stability and good governance. Their mandate was an expression of their collective desire to make India a prosperous and proud nation in the 21^st century. In the past twelve months, we have endeavoured to fulfil their aspirations. Our democracy is steadily growing in maturity to prove that a coalition government at the Centre can be stable and successful. The India at the beginning of the new century is an India that stands stronger, prouder and taller than before. India is now seen as an emerging global player whose voice is being heard with recognition and respect in the capitals of the world.

    We have fulfilled several promises contained in our common manifesto. It shall be our earnest endeavour to fulfil many more that are still unaccomplished.

    Our governance has been free of corruption scandals, and we are determined to further strengthen standards of transparency in Government and probity in public life. Centre-State relations have become harmonious. The situation in Jammu & Kashmir and in the North-East is improving steadily. I am confident that it will improve further in the coming months. Simultaneously, the circle of international support for our stand on Kashmir is expanding rapidly. Our fight against terrorism continues – and shall continue till the terrorist’s gun falls silent.

    Our economy is growing steadily. We are now removing the hurdles for its faster growth, so that we can achieve our ambitious target of doubling the per capita income by the end of this decade. The number of people living below the poverty line has declined. Food security is no longer a distant dream. I want to assure the people that the economic reforms we have initiated have no other aim than to create employment for all and bring the fruits of prosperity for all – especially to those who have so far been deprived of it.

    These are the achievements not of any party or alliance, but of a nation on the move. They have been made possible by the close bond between the people and the Government. I want to urge all my countrymen to further strengthen this bond, so that India can move from success to greater success in the coming years.

    The path of reforms is never easy or straight. Sometimes, the Government has to take hard decisions in the long-term interests of the nation. For example, the unprecedented increase in global oil prices has forced us to pass on some of the burden to the consumers. We have to face such challenges collectively. The haves must bear a greater share of the burden than the have-nots in the transition period.

    As my Government completes one year in office today, I look more to the future than to the past. I urge my countrymen to do the same. India’s greatest asset is her unity in diversity. Let us together strengthen our unity, by creating greater tolerance and respect for our linguistic, ethnic, regional and religious diversity. Today, there is greater social cohesion and communal peace, for which I compliment people belonging to all communities. We must now make it a permanent feature of our national life. I see an atmosphere of self-confidence and hope in the country. Let us make this, too, a permanent feature of our national life.

    Let us remember that the gift of a prosperous and happy future is available only to that nation whose people make themselves deserving of it with their hard work, discipline and mutual cooperation.

    I assure my countrymen that the Government will do its duty in a fair, impartial and determined manner. I urge every Indian to do his or her duty as responsible and aware citizens.

    Together, we shall overcome the challenges facing the country. Together, we shall take India to a better position next year."

'16'

PROJECT EXPORTS UP 10.5 PER CENT DURING 1999-2000; APRIL-JULY 2000 EXPORTS GROW BY 16.5 PER CENT

    I may also be noted that, on the basis of the suggestions given by the Department of Commerce, the Project Export Manual (PEM) brought out by the BBI on Customs & Excise procedures has been simplified. With the aim of giving a greater boost to project exports, the regulatory procedures are being further simplified.

'24'

SHRI B.N. SOM ELECTED CHAIRMAN OF WORLD ASSOCIATION FOR DEVELOPMENT OF PHILATELY

    The WADP is an organisation which functions under the aegis of the Universal Postal Union (UPU) and its member postal administrations. Its Secretariat is managed by the International Bureau of the UPU. It was created in 1997 by the Postal Opoerations Council(POC) of the Universal Postal Union with the aim of providing a strategic forum for the Posts and their partners in the philatelic industry for the development and promotion of philately worldwide.

'24'

PRESIDENT TO RELEASE COMMEMORATIVE POSTAGE STAMP ON DR. SHANKER DAYAL SHARMA

    Dr. Shanker Dayal Sharma(1918-1999), former President of India, was one of the most distinguished and beloved sons of the country, who combined great humility with immense learning. A veteran freedom fighter, noted Gandhian, erudite scholar, distinguished parliamentarian and an able administrator Dr. Sharma devoted his life to the service of the nation, presiding over its destiny at a very crucial time in its history.

    Dr. Shanker Dayal Sharma was actively involved in the Freedom Struggle and suffered brutalities of the British colonial regime. Born in August, 1918, at Bhopal, Dr. Sharma had his early education at St. John’s College, Agra and later went to Allahabad and Lucknow Universities. He studied law, history, politics and culture at reputed western institutions such as the Cambridge University and Harvard Law School. He was a teacher of law at Lucknow University and at Cambridge University. Called to the Bar from Lincoln’s Inn, he was later a Fellow at Harvard Law School. He was elected Honorary Bencher and Master of Lincoln’s Inn and Honorary Fellow, Fitzwilliam College, Cambridge. The University of Cambridge honoured him with the degree of Doctor of Law (Honoris Causa).

    He became Member of the erstwhile Bhopal Legislative Assembly from 1952-56 and went on to hold office as the youngest Chief Minister of that State. He again became member of the Madhya Pradesh Legislative Assembly from 1956-1971 and was Member of the State Cabinet in Madhya Pradesh for several years and held several portfolios.

    Dr. Sharma became Member of the Fifth and the Seventh Lok Sabha. In 1972 he was elected President of the Indian National Congress. He then served as Minister for Communications between 1974-1977. He also served as Governor of Andhra Pradesh, Punjab and Maharashtra and then as Vice-President of India and Chairman of the Rajya Sabha from 3^rd September 1987. He was elected to the highest office of the President of the Indian Republic in July, 1992.

    As the Vice-President of India, Dr. Sharma also acted as the chairperson of several organisations and, was associated with various other educational, cultural, literary and social organisations. He authored several books and edited several prestigious publications such as the Lucknow Law Journal (1941-43) and Socialist India (1971-74).

    The First Day Cover alongwith the information sheet will be available on sale at all Philatelic Bureaux/Counters and at selected Post Offices.

    The India Hydrocarbon Vision – 2025 Report, which encapsulates Government’s long term policy for this sector, was developed by a Group of Ministers constituted for this purpose, consisting of Ministers of Petroleum, Finance and External Affairs and Deputy Chairman, Planning Commission. The Report was presented to the Prime Minister in March 2000 and also placed on the Table of both Houses of Parliament. It is for the first time that such a long term policy has been enunciated for this sector and it covers exploration, refining, marketing infrastructure, gas and all other related matters in the hydrocarbon sector.

    In a concerted move to increase availability of cooking gas (LPG) to the people, the Government decided to release 1 crore 10 lakh LPG connections during the calendar year 2000 to liquidate the waiting list registered with the LPG distributors of Public Sector Oil Marketing Companies as on 1.12.1999. As against this target, about one crore gas connections have been released so far by the Public Sector Oil Companies. The target figure of 1.10 crore would also compare well with the total number of 4.36 crore LPG connections that existed as on 1.1.2000. LPG connections would soon be available across the counter all over the country.

    The use of LPG for cooking, in place of kerosene is also being encouraged by the Government in the form of allocating additional LPG connections to the States willing to surrender a corresponding kerosene quota. Under this scheme, 15 lakhs LPG connections have been given to Andhra Pradesh, 8 lakhs to Maharashtra, 5 lakhs to Punjab and 1 lakh to Rajasthan.

    As a measure of support to the National cause, 182 Retail Outlets dealerships and 145 LPG Distributorships have been sanctioned for the widows/next of kin of defence personnel killed in action in Kargil. Under the scheme, the retail outlets/LPG distributorships would be handed over to the beneficiaries in a fully functional form. The Oil Companies would be spending upto Rs.40 lakhs per retail outlet and upto Rs.20 lakhs per LPG agency. The Letters of Intent (LOI) in respect of the approved cases have been handed over at a function held on 17^th March 2000. The first Retail Outlet under this special scheme was commissioned on 6^th June 2000 in Gautam Buddha Nagar in Uttar Pradesh which was allotted to Colonel V.N. Thapar, father of Kargil martyr Captain Vijayant Thapar. In respect of other cases also, the concerned State Governments are also being pursued for early allotment of land and sanction of relevant approvals so that the scheme can be implemented expeditiously.

    Presently, the country imports 70% of its petroleum requirements. To increase the indigenous production and to take the country to self-sufficiency, exploration efforts in the country have been given a boost with the approval of the award of 25 exploration blocks under the New Exploration Licensing Policy (NELP). This includes 7 deep water offshore blocks, 16 shallow water offshore blocks and 2 onland blocks (1 each in Uttar Pradesh and Arunachal Pradesh). The award of the deep-water blocks for the first time in the country has opened up a new horizon for oil and gas exploration. The minimum committed investment in the first phase of exploration in these 25 blocks will be around Rs.1000 crore. The investment figures will go up several folds depending upon the size of discoveries in these blocks. The Production Sharing Contracts (PSC) for 22 of these 25 blocks have been finalised in a record time and the Contracts were signed on 12.4.2000 and for one more block PSC, was signed on 3.10.2000 . Out of the remaining 2 NELP blocks, the Production Sharing Contract in respect of one block has been finalised. Contracts in respect of 3 other blocks related to the earlier bidding rounds were also signed on 12.4.2000. In all, 26 exploration contracts have been signed in the last one year alone as compared to only 23 in the preceding 9 years. The contracts for 12 discovered fields are under finalisation.

    ONGC is implementing Improved Oil Recovery (IOR) and Enhanced Oil Recovery (EOR) schemes in 9 different fields to increase production by 10 million tones over the next 5 years. The process of finalising the redevelopment plan for Mumbai High field of ONGC is in an advanced stage.

    The Model Contract in respect of exploration and exploitation of Coal Bed Methane (CBM) reserves has been finalised. The case of M/s. Great Eastern Energy Corporation Ltd. (GEECL) for exploration and exploitation of CBM in Raniganj, West Bengal has also been approved. From an exploration block in Cambay offshore, awarded to M/s. Cairn Energy under the earlier exploration rounds, a sizeable discovery of natural gas has been made in May – June 2000.

    The refining capacity has seen a substantial increase from 69 million tonnes per annum (MMTPA) to 112 MMTPA during the last one year. Apart from the large capacity private sector refinery of Reliance Petroleum Ltd. at Jamnagar and 3 MMTPA capacity refinery by Numaligarh Refinery Limited, the Koyali Refinery of IOC has been expanded by 3 MMTPA, Mangalore Refinery by 6 MMTPA and Vizag Refinery by 3 MMTPA. This addition of 42 MMTPA refining capacity has been the maximum in a year since independence. Further investments in refining have also been approved. The foundation stone in respect of the Paradeep Refinery project of IOC with a capacity of 9 MMTPA was laid on 24.5.2000 by the Prime Minister. This Refinery is expected to be commissioned by 2003-04 and will cost around Rs.8300 crore. The construction work in respect of the Bhatinda Refinery of HPCL with a capacity of 6 MMTPA was launched on 2.6.2000. This Refinery estimated to cost more than Rs.9800 crore, is expected to be commissioned by 2004-05. The Government also approved the Chennai Refinery expansion from 6.5 MMTPA to 9.5 MMTPA on 27.7.2000 at a cost of Rs.2360 crore. Government would shortly be approving the expansion of Kochi Refinery from 9.5 MMTPA to 13.5 MMTPA.

    Emphasis is being given on ensuring supply of quality products to the public. In this regard, a Conference of State Ministers for Food & Civil Supplies was held on 24^th December 1999 and again on 5^th July 2000. These conferences were the first of their kind and have been very fruitful.

    Keeping in view reports received regarding adulteration of motor spirit and diesel by cheaper adulterants like Naphtha, Solvent, Raffinate and Slop, two Control Orders were issued on 5.6.2000 under the provisions of the Essential Commodities Acts, 1955. The Control Orders namely, The Naphtha (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order, 2000 and The Solvent, Raffinate and Slop (Acquisition, Sale, Storage and Prevention of Use in Automobiles) Order 2000, empower the officials of State Governments and of the Oil Marketing Public Sector Undertakings to take firm action against unscrupulous elements indulging in adulteration of automobile fuels.

    The Government vide Notification dated 24.5.2000 has published the LPG (Regulation of Supply and Distribution) Order, 2000, wherein the shortcomings experienced in the earlier Order of 1993 have been taken care of. Besides, to protect the interest of consumers, the prohibited activities leading to malpractice have also been listed in respect of LPG distributors appointed by the Oil Sector PSUs as well as the parallel marketers.

    On the initiative of the Government, IOC has initiated action to set up Fuel Testing Laboratories at Noida and Gurgaon, to evaluate the quality of MS, Kerosene and HSD in line with the specifications of Bureau of Indian Standards. The lab at Noida, inaugurated on 6.6.2000, has been set up at a cost of Rs.11.50 crore. It is the first of its kind in the country, with a capacity of handling 400 samples per month. The state-of-the-art equipment installed in the laboratory consists of computer controlled instruments to conduct both physico-chemical tests and engine tests. A society namely, Society for Petroleum Lab has been registered under the Societies Act 1860 to operate and maintain the Lab, with the day-to-day operations being handled by Indian Institute of Petroleum.

    Measures to produce eco-friendly fuels have also been taken. Low sulphur diesel (0.25% max.) and Unleaded Petrol are being supplied throughout the country with effect from 1.1.2000 and 1.2.2000 respectively. Further, Ultra low sulphur diesel with sulphur content of 0.05% (max) is being supplied from selected retail outlets in National Capital Region (NCR) to non-commercial vehicles conforming to Euro-II norms from 1.4.2000 onwards. Ultra low sulphur unleaded petrol with sulphur content of 0.05% (max) is also being supplied to all types of vehicles in NCR from 1.4.2000. As part of the ongoing process of making available greener fuels, Diesel Hydro De-sulphurisation (DHDS) projects at nine refineries of PSU oil companies were successfully put into operation. The total cost of the projects was about Rs. 5600 crore. These refineries are IOCL Gujarat, IOCL Mathura, IOCL Haldia, IOCL Panipat, BPCL Mumbai, HPCL Mumbai, HPCL Visakh, MRL (CPCL), Chennai and CRL (KRL), Kochi.

    Government has amended the Motor Vehicles Act to allow the use of LPG as an auto fuel in August 2000. This is another measure of increasing availability of eco-friendly fuels in the country. The modalities and guidelines in this regard are under consideration of the Government.

    On 11^th October, 2000, the supply of Natural Gas to industries in Taj Trapezium zone was dedicated to the Nation at Firozabad. The glass industries of Firozabad and foundries in Agra had to be closed down due to the Supreme Court order to reduce pollution in this area. Supply of natural gas by GAIL has provided lifeline for revival of industries in Taj Trapezium area. Presently, 62 industrial units in Firozabad and 28 units in Agra are drawing natural gas from GAIL. The allocation for the area has been increased from 0.6 MMSCMD to 1.1 MMSCMD to fulfill the pending requirement of industries. A concession in transportation charges of Rs. 700/- per thousand standard cubic metre has been given with retrospective effect.

    Substantial progress has also been achieved in respect of supplying piped gas to households in Delhi and Mumbai. The Indraprastha Gas Limited (IGL) has increased the piped gas supply from 1000 to 3500 households in Delhi. Piped gas supply has been extended to the East and West Nizamuddin area in Delhi from 1.4.2000 onwards. The total number of vehicles in Delhi running on Compressed Natural Gas (CNG) which is an environment friendly fuel has increased to around 9600. A dedicated CNG facility for the buses of Delhi Transport Corporation has been provided. The total number of CNG dispensing stations has been increased from 9 to 46 during the past one year. In Mumbai, the Mahanagar Gas Limited (MGL) has increased the piped gas supply to over 38,000 housing units which will be further expanded to another 50,000 domestic customers in 2001-02. Another CNG outlet has been added thereby increasing the total CNG outlets in Mumbai to 21. The total number of vehicles currently plying in Mumbai on CNG has increased to 13,800. The gas is also being taken from Andheri towards Dahisar area.

    A pilot project on Ethanol has been conceived to examine all the aspects related to the use of this fuel with the trials to be taken up in selected locations in Maharashtra and Uttar Pradesh. The sale of the product from the Miraj/ Hazarwadi depot in Sangli district in Maharashtra to the entire supply zone is expected to commence from December 2000. The supply of ethanol would be sourced through Open Tender Bidding. On successful completion of the field trials and the R&D studies in the pilot project, the prospects for commercialisation of the ethanol blend would be considered. Being eco-friendly, this may prove to be a boon to sugarcane growing farmers besides supplementing the limited domestic resources.

    The Government has approved the proposal for use of High Speed Diesel (HSD) as the primary fuel for generation of power. The use of another alternate fuel namely di-methyl ether (DME) as fuel for power generation has also been agreed to on a trial basis.

    During this year, the Government constituted a Group of Officers consisting of Secretaries of various Ministries to make recommendations for an integrated Liquefied Natural Gas (LNG) policy for the country to facilitate growth of LNG import infrastructure for bridging large gap between indigenous demand and supply. The recommendations of the Group of Officers are under consideration of the Government.

    In order to expedite the implementation of the LNG import projects of Petronet LNG Ltd., action has been taken for restructuring of equity in this company thereby paving the way for induction of NTPC as a partner. In the new structure 50% of the equity in this joint venture company will be shared equally between GAIL, ONGC, IOC, BPCL and NTPC. Substantial progress has been made by Petronet LNG Ltd. and the EPC contract for the LNG terminal is expected to be awarded shortly.

    A high level inter-Ministerial Working Group has been constituted under the Chairmanship of Additional Secretary (P&NG) to study and examine the regulatory structure and processes in other parts of the world and suggest suitable regulatory mechanisms for the Indian upstream petroleum industry. The deliberations of the above Working Group have been completed and its report is expected shortly.

    Government has also decided on the integration of stand-alone refineries in the public sector. Kochi Refinery Ltd. and Numaligarh Refinery Ltd. would be made subsidiaries of Bharat Petroleum Corporation Ltd. while the Bongaigaon Refinery & Petrochemical Ltd. and the Chennai Petroleum Corporation Ltd. would become subsidiaries of Indian Oil Corporation. This arrangement will strengthen the stand-alone refineries to face the challenges of the deregulation and enhance the supply of petroleum products to IOC and BPCL in the Southern and North Eastern regions.

    In keeping with the Government policy of disinvestment, GAIL shares were sold in the international GDR market, which brought Rs.945 crore to the National Exchequer.

    Government have decided to disinvest its holding in IBP to a strategic buyer through a process of open international competitive bidding. Divestment of the holding of IBP in the Balmer Lawrie group of companies would be dealt with separately and not linked to disinvestment of Government equity in IBP.

    It has also been decided that ONGC, IOC and GAIL would be the flagship companies of the Government and the Government would continue to hold minimum of 51% equity in these companies. This has been done, keeping in view the importance of maintaining continuous and uninterrupted supplies of petroleum products to the strategic sectors like defence forces and to the inaccessible and the far-flung areas.

    The dividend paid by the oil sector PSUs to the Government for the year 1999-2000 was Rs.1883.39 crore as against the dividend of Rs.1736.25 crore during the previous year.

    With the objective of addressing the pending issues relating to the North-Eastern States and reviewing the investments being made by the oil sector companies in these States, the Minister (P&NG) accompanied by the Ministers of State (P&NG) visited Assam, Meghalaya and Arunachal Pradesh and held fruitful discussions with the Chief Ministers of the concerned States and their colleagues. Site visits were undertaken in respect of installations and projects of the oil sector companies at Guwahati, Numaligarh, Digboi, Duliajan, Lakwa and Nazira. As against the Government’s policy of each Central Ministry spending at least 10% of the Budget in the North-Eastern States, the upstream oil companies namely, ONGC and OIL are spending more than Rs.1000 crore annually. Further, the downstream oil companies have committed around Rs.1200 crore for modernisation of various installations and facilities in these States.

    There has been a long-standing demand from the oil producing States for revising the royalty on crude oil. The rate of royalty has been revised twice from Rs.578/MT to Rs.750/MT and thereafter to Rs.800/MT or 20% of the well head value whichever is lower. The first revision approved in December 1999 was effective from 1^st June 1999 and the second approved in May 2000 from 1^st January 2000. These revisions in the royalty rates will benefit Gujarat, Assam, Andhra Pradesh, Tamil Nadu and Arunachal Pradesh. A Committee has also been constituted to give recommendations in respect of the royalty regime after 1.4.1998.

    In order to ensure better consumer service, quality product supply and improved safety measures at the retail outlets/LPG distributorships, the dealer commission has been revised w.e.f. 5.1.2000. The commission for petrol has been revised from Rs.413 to Rs.462 per KL, for diesel from Rs.224 to Rs.257per KL and for LPG from Rs.11.10 to Rs.13.83 per cylinder. The slab rates of commission for diesel have also been done away with.

    The international prices of crude oil increased from around $11 per barrel in March 1999 (Rs.3,600 per tonne) to over $30 per barrel in September 2000 (Rs.11,000 per tonne). As India imports nearly 70% of its crude oil requirement, the oil import bill which was around Rs.54,000 crores in 1999-2000 is expected to increase to over Rs.80,000 crores in 2000-2001. These steep increases in crude oil prices have had a negative impact on the oil pool account and the deficit in the oil pool account was expected to touch Rs.23,600 crores by the end of March 2001. On 22 March, 2000, increases in the prices of PDS kerosene and LPG were effected to correct for increases in international crude prices. Even thereafter when international prices kept increasing it was necessary to increase the prices of diesel, petrol, aviation turbine fuel, PDS kerosene and domestic LPG on 29.9.2000. However, for the first time a package whereby only 1/3^rd of the cost increase was passed on to the consumers and the balance absorbed by Government through reduction in taxes and other financial instruments, was adopted.

    To clear the backlog of Retail Outlet Dealerships, LPG Distributorship and SKO/LDO Dealerships pending for selection, 57 Dealer Selection Boards (DSBs) have been appointed to select dealers for 2101 Retail Outlets, 2873 LPG and 392 Kerosene Agencies all over the country. With this, the process of dealer selection, which was stayed at the time of announcement of General Election last year, will now commence. A conference of the chairpersons of the DSBs was held on 25.8.2000 to impress upon the need for speedy selection of the dealers and distributors. While adhering to the reservation policy for Scheduled Castes and Scheduled Tribes, defence forces, handicapped persons, etc., women shall be given 33 per cent over-all quota.

    It has been decided that in respect of SC/ST Dealers/Distributors meeting all the conditions applicable under the Corpus Fund Scheme, the Oil Marketing PSUs may consider development of the new site/grant of working capital loan for the second time in case of resitement. This would be subject to the first site being taken over by the Oil Marketing PSUs in proper condition and without any encumbrance and the first working capital loan given to the Dealer/Distributor being repaid in full along with interest.

    Approval given to ONGC Videsh Limited (OVL) to invest about $ 230 million representing 45 per cent share holding of OVL in the gas field in Vietnam which has gas reserves of 2 trillion cubic feet (about 57 billion cubic metre). Efforts are also on to explore/acquire oil fields abroad for ensuring security of oil supplies to India. Currently, the focus for such ventures is towards countries like Iran, Iraq, Russia and Northern African countries.

    The efforts made by the Government of India to establish long term cooperation with Nigeria in crude oil supplies to India have resulted in the signing of a term contract between IOC and the Nigerian National Corporation on 1.9.2000 for supply of 2 million metric tonne for the first year commencing October 2000 at the Official Selling Price. The direct term contract with Nigeria for import of low sulphur crude oil is in line with the efforts of the Government to enhance supply security by maximising term supplies and diversifying supply sources, besides reducing dependence on the spot market.

    The Government has signed an MOU with the Government of Mauritius, which would enable Indian Oil Corporation to set up oil tankage facility in Mauritius and to market petroleum products under its brand name alongside other multinational companies. IOC has also launched the "Servo" brand lubricants in Malaysia.

    As a part of the reforms in the hydrocarbon sector, Government, in February 2000, reduced customs duty on crude oil from 20% to 15% and on the transport fuels (MS, HSD, ATF) from 30% to 25%. Duties of customs were further reduced to 10% on crude oil and to 20% on transport fuels in September 2000, when excise duty on MS and HSD were also reduced by from 32% to 16% and from 16% to 12% respectively.

    The Oil Sector PSUs were among the first to take up relief measures during Orissa super cyclone. A contribution of Rs.39.50 crore has been made by these companies to the Prime Minister’s Relief Fund for providing relief to the cyclone affected people. Six blocks in the affected areas were entrusted, one each to ONGC, IOC, BPCL, HPCL, GAIL and IBP for taking up the relief and rehabilitation operations. These companies were also engaged in construction/ repairs of public utility buildings like schools, drilling wells for drinking water and in construction of houses.

    To combat the problem of shortage of drinking water in drought affected villages of Andhra Pradesh, Rajasthan and Gujarat, the Oil Sector PSUs have agreed to reimburse the cost of diesel used for transportation of drinking water in these States. An amount of Rs.5.92 crore was reimbursed on this account.

    The Oil Sector had a smooth rollover into the year 2000 by ensuring Y2K compliance by all its plants, machinery and equipment. The Petroleum Website was launched on 26^th January 2000.

    The Government has also successfully faced the transporters’ strike in the wake of hike in diesel prices. Similarly, it was ensured that the strike by the Officers in the Oil Sector on 11.1.2000 did not go beyond few hours and the detrimental consequences of a prolonged strike were avoided.

    In order to protect and nurture our National heritage, Indian Oil Corporation (IOC) has formed a non-profitable trust called Indian Oil Foundation with an initial corpus of Rs.25 crore. IOC will also be making an annual contribution of Rs.10 crore to this Trust. In the first phase, projects at 5 national heritage sites namely, Qutub Minar, Khajuraho, Hampi, Konarak and Kanheri Caves will be taken up by the Indian Oil Foundation in collaboration with the Archaeological Survey of India and the National Culture Fund.

    The Minister of State for Information and Broadcasting, Shri Ramesh Bais has said that the shortcomings in our sports can be overcome through the practice of yoga. He called upon the Indian sportspersons to adopt yoga for achieving higher standards of excellence. Yoga is capable of making a person a complete human being through physical and mental improvement, he said.

    Shri Bais was flagging off the first National Yoga March, organized by the Indian Yoga Federation, here today. Students and sportspersons from 17 States, besides Delhi participated in the March, which began from National Stadium and passed through the city before terminating at the Red Fort.

    Shri Bais said that India had been a laboratory of yoga and its relevance has increased manifold in today’s life of stress and strain. He said, people in all walks of life, especially the sportspersons all over the world are adopting yoga. He particularly mentioned the top US athlete Carl Lewis who attributes his success to yoga.

    Disclosing this to the members of Consultative Committee of Department of Tourism, Minister of Tourism and Culture Shri Anant Kumar said that a Hospitality Education Grid comprises of the National Culinary Institute, Hotel Management Institute, an Institute of Tourism and Travel Management was being set up at Noida, which would work as an advance Research and Training Centre for Hospitality Industry.

    Shri Anant Kumar said that National council for Hotel Management and Catering Technology has projected a shortage of 36,000 trained manpower in hospitality and catering sector by the year 2000. Out of which 22,000 will be operational/skill/craft labour. To fulfill this requirement, the Government has asked the council to explore all the ways to provide adequate and qualified trained manpower as it plays vital role in promotion of tourism. The National Council has also been asked to upgrade the Diploma level Course to Degree level, which is being done in collaboration with IGNOU, he added.

    The Minister said that keeping in view the economic policies of the Government, all the Hotel Management institutes affiliated to National Council of Hotel Management had been advised for raising their own sources and moving towards self-sufficiency on revenue accounts. Out of 20 institutes, 13 have already achieved this and remaining institutes are expected to become self-sufficient in near future. The Institutes have managed this by conducting more craft level courses for local requirements, which ultimately has created more employment opportunities in rural and backward areas.

    Replying the queries of the Members of the Consultative Committee about Human Resource Development Infrastructure in the Himalayan states, Shri Anant Kumar disclosed that besides an existing Hotel Management Institute at Guwahati, the Centre has already approved an Institute at Shillong from this Academic Session itself. Steps would also be taken for setting up such institutes in Uttranchal State. Besides this, National Council of Hotel Management has also initiated an affiliation Scheme for private Hotel Management Institutes and State Government institutes to provide a standardized training in hospitality industry. Replying the demands by the members for setting up more Institutes in particular states, the Minister said if private sector comes forward, the Government may consider opening up institutes in joint sector also.

    Participating in the discussion, members of the Consultative Committee said that lot was of desired to improve the services in the hospitality industry. They said that Government should ensure private participation also in this area. Efforts should be made to encourage small hotels and restaurants to employ trained manpower, especially at the tourists' spots higher standards of hospitality should be ensured. Some members suggested that regular courses in Tourism should be introduced at university level. One member was of the opinion that the Government should still explore possibilities to enhance possibility of ITDC.

    The modalities of working of this proposed inspectorate are presently being worked out. This was disclosed by the Minister of State for Social Justice & Empowerment, Smt. Maneka Gandhi at the Parliamentary Consultative Committee Meeting of her Ministry held here today.

    The Minister said that the decision to set up this Inspectorate has been taken as part of the ongoing efforts of the Ministry for better monitoring of the NGOs. In this regard, Smt. Gandhi also sought the cooperation of the Members of the Parliament and informed that a District-wise list of NGOs has already been provided to the MPs and the District Magistrates.

    The Minister emphasised that her main concern behind all these efforts was to ensure that the benefits of the schemes of her Ministry reach the persons most in need of assistance and also to facilitate genuine social and economic empowerment of those we seek to help. This is also to ensure that public funds available are not misutilised, she added. The Ministry has also laid down the guidelines to ensure quality assurance for the functioning of the NGOs

    Smt. Gandhi said that Officials of her Ministry and the Designated Inspection Teams have been on a drive to carry out inspections of NGOs all over the country for the past few months and 353 NGOs have been inspected. She informed that action as being taken against almost 30 errant organisations and hoped that this would create a sense of alertness and accountability among the organisations working in the field. Smt. Gandhi said that publicising the names of blacklisted NGOs on the official website of the Ministry should prevent these organisations from securing grants from elsewhere also.

    Emphasising the vital role NGOs can play in the delivery of services and community mobilisation, the Minister said that NGOs are in a better position to perform these tasks due to their proximity to the community. NGOs are also uniquely positioned to innovate and be flexible in their approach, she added.

    Lauding the role of NGOs in the social development of the country, the Minister said that they are more in tune with the needs and sensibilities of the people they have been working with, and they can use this relationship and their knowledge to improve the delivery of services in new ways. Smt. Gandhi observed that the potential benefits of maintaining and further developing the existing relationship between the government and NGOs are substantial.

    The Minister informed the Members that her Ministry was currently supporting 2339 NGOs and the total funds distributed in 1999-2000 was Rs. 154.69 crores. The total budget for the current year is Rs. 181.89 crores.

    The Members who attended the meeting were : S/Shri Ramji Lal Suman, Padmanava Behera, K.H. Muniyappa, K.H. Javare Gowda and Prof. A. Lakshmi Sagar.

'26'

MINISTRY OF CIVIL AVIATION – AN OVERVIEW

          of Hotel Corporation of India is now in its advanced stage.

• Leasing Out of four major international airports at Delhi, Mumbai, Chennai and Calcutta on long-term basis is in progress. Further, as part of private sector participation, three new international airports at Bangalore, Hyderabad and Goa are being constructed with private participation.
• Bilateral agreements with different countries is another key area in the process of liberalisation. During the last one year, 15 Bilateral air service agreements have been signed providing for a total of 13129 seats per week for each side in each direction.

    II Airports Modernisation – With a view to modernise/upgrade the Airports, a number of initiatives have been taken. One major decision taken is to declare 7 domestic airports at Bangalore, Hyderabad, Ahmedabad, Goa, Amritsar, Guwahati and Cochin as international Airports. This, will no doubt, boost the international traffic through these airports.

• Introduction of Modern air traffic systems and a new international terminal at Mumbai airport; a new terminal building at Bagdogra; upgradation work at Gaya & Jammu airports are some of the important developmental activities taken-up by Airports Authority of India.

    III CNS/ATM System – Satellite based Communication, Navigation, Surveillance (CNS) and modern Air Traffic Management (ATM) systems are being introduced as part of automation of Air Traffic control facilities.

    IV Domestic air traffic during the last eight months of the current year has shown growth rate of more than 10%. Thus, after stagnation of air traffic for some years the domestic air transport is now poised for a healthy growth. The international passenger traffic to/from India which had grown at an average rate of 6% during the 1990s has been maintained even during the year 2000.

    V Civil Aviation Policy – The Government is formulating a comprehensive Civil Aviation Policy covering all aspects of Civil Aviation. The draft is available on the Ministry of website (http://www.civilaviation.nic.in.). The emphasis in the policy will be on increasing the role of private sector and to bring-in greater efficiency in management of aviation infrastructure. The policy also envisages setting up of an "Economic Regulatory Authority" to oversee the financial practices of the airports and other aspects related to inter service providers.

    VI Air India has had a turn-around in its performance by showing a significant reduction of net loss from Rs. 297 crores in 1996-97 to Rs. 38 crores in 1999-2000. There has also been a steady improvement in operating results as there has been an operating profit of Rs. 76 crores in 1999-2000 compared to operating losses of Rs. 413 crores in 1996-97.

• Air India is also in the process of procuring some aircraft on dry-lease basis to meet the present short fall.

    VI Indian Airlines has earned a profit of Rs. 39.25 crores during 1999-2000 as against a profit of Rs. 13.12 crores during 1998-1999.

• The Company has finalised proposals to acquire 5 B-737 aircraft and 2 A-320 aircraft on dry-lease basis to augment its fleet strength.
• Pawan Hans Helicopters Ltd. have introduced helicopter services to Mata Vaishnodevi Shrine. Other tourist/Religious places are also proposed to be linked with helicopter services.
• Special steps have been taken to improve facilities to Haz pilgrims.

'26'

WORKSHOP ON GLOBAL NAVIGATION SATELLITE SYSTEM INAUGURATED

    Highlighting the various initiatives taken by the Government to boost the Civil Aviation activities in the country, Prof. Gupta said that the decision of privatisation of airlines and long term leasing of four international airports are the right method of attracting private investment into the infrastructure sector. He said if we have to create a bigger base and tap the latent demand of air travel particularly in the smaller cities, the Government has to invest in expanding the airport infrastructure and building new airports. He also told the gathering that the Government is in process of finalising Civil Aviation Policy. Among the many issues, a creation of Civil Aviation Economic Regulatory Authority to oversee financial practices of the airports would find place in it.

    Speaking on the occasion, Secretary, Civil Aviation, Shri A.H. Jung said that India is gearing itself for implementation of various elements of satellite based CNS/ATM (Communication, Navigation Surveillance/Air Traffic Management). GNSS is one of the key elements of the new satellite based system. Indian Space Research Organisation (ISRO) have come forward to support Airports Authority of India ( AAI) in development and implementation of an appropriate system to serve the needs of the Indian air space. After extensive co-ordination between Department of Space and Airports Authority of India, a project report for a Technology Demonstration System for Satellite Navigation over Indian air space has been prepared by Department of Space. This is under consideration of the Government. With over 28 million square nautical miles air space to serve, India is keen to provide quality Air Navigation Service infrastructure to support Air Traffic Management in the designated air space, he said.

    Dwelling on various programmes initiated by AAI, Shri Jung said that a programme for implementation of ADS to provide surveillance coverage over the oceanic air space has been initiated in mid 90s. Trail operations of this system has already begun. This new facility has helped establish new routes for international flights that would give considerable saving to appropriately equipped aircraft using this route. AAI has also initiated action to join the Aeronautical Telecommunication Network. VSAT based Satellite Communication Network being implemented by AAI would strengthen the communication between airports. He pointed out that while AAI is gearing up and putting various elements of the new system in place in a phased manner actual benefit of this would accrue only when airline operators take up aircraft equipage in consonance with the plans of the Air Traffic Service provider.

    GNSS is a concept of Future Air Navigation System (FANS) and conceived by ICAO, the aviation agency of the United Nations. FANS is also known as the CNS/ATM.GNSS will universalise the landing procedure/standards and availability of the category airport to any corner of the globe and it will solve the navigation problem of flying aircraft over ocean where other installation is an impossible task.

'9'

SHRI S.S. DHINDSA TO GIVE AWAY INDIRA GANDHI NSS AWARDS

    The Ministry this year, has selected two Universities – Dayal Bagh Education Institute, Agra (1997-98) and Swami Ramanand Teerth Marathawada University, Nanded, Maharashtra (1998-99), 12 NSS Units, 12 Programme Officers (NSS) and 26 Volunteers for the Indira Gandhi NSS Awards. Besides cash, all the awardees will be presented with a trophy and a scroll/certificate in the National Awards Ceremony. It is expected that these awards will encourage the awardees to work with more dedication in the community development in future.

    NSS was launched during Mahatma Gandhi Birth Centenary Year (1969) with the aim of development of the personality of students through community service. In order to fulfil this objective, student volunteers and programme functionaries are engaged in constructive and productive programmes involving students in various awareness drives. These include Shramdan, social reforms, communal harmony, creation of community assets, blood donation etc. Under the scheme, each volunteer contributes 240 hours of community work during a period of two years.

'13'

DEVELOPMENT OF SUSTAINABLE TECHNOLOGIES/ R&D – ACADEMIA – INDUSTRY PARTNERSHIP

    The other major initiatives were : launching of the Jai Vigyan Mission; Technology Vision 2020; strengthening co-operation with U.S., Russia, Germany, France and Japan; young scientist awards; development of new vaccines for Malaria, HIV, and Hepatitis; collaboration with Japan in brain research, setting up of National Bio-Resource Development Board, perfection of World’s first sea-bed mining system; de-limitation of the Continental Shelf to claim more sea-bed areas; demonstration plant for the conversion of ocean thermal energy into electricity; heralding of Civilian Aircraft Industry by developing Hansa (two-seater) and Saras (14-seater) aircraft; setting up the world’s highest observatory at 15,000 feet in Ladakh, etc.

    The 3-day conference will be formally opened by the Union Finance Minister, Shri Yashwant Sinha on the 16^th. After the inauguration, there will be various sessions in which participants and Ministers will share their ideas. The conference will also enable participants to get a comprehensive view of the economic scenario in the country besides the policy direction of the Government of India.

    Press Information Bureau has deployed over 70 officers and staff to organise and conduct this conference.

    The Minister also pointed out the need for ensuring healthy environment for our future generations. To achieve sustainable development the standards on environmental management system should be strictly followed and if required, our regulations for pollution control could be aligned with International Standards for Environment; Shri Prasad said. Enumerating the recent initiatives taken by the Bureau of Indian Standards in upgrading its service for consumer as well as in industry, the minister said that one of the important measures in this direction was the introduction of hologram on some BIS certified products. Initially, 5 safety products such as LPG stoves, LPG cylinders, and regulators, Safety helmets and Storage water heaters will be bearing hologram.

    Striking a note of caution, Shri S. Bandopadhyay, Secretary, Department of Consumer Affairs underlined the urgency of formulating standards by the Bureau of Indian Standards at a faster pace for meeting the challenges of globalisation of trade by 2002. The Bureau has to change itself to the new situation arising out of the removal of trade barriers in the post- WTO scenario, he said and emphasised the need to have the services of more technical persons in the organisation.

    World Standards Day is celebrated on October 14 every year to mark the foundation of the International Organisation for Standardisation. The theme of this year's celebrations is International Standards for Peace and Prosperity.

'17'

    The feedback session was attended by a large number of leading German investors in India, besides Mr. Heimo Richter, Ambassador of Germany in India and Dr. Gunter Kruger, Executive Director, Indo-German Chamber of Commerce. Dr. Kruger expressed appreciation of the many policy initiatives already taken by the government to promote FDI and mentioned that out of the 25 largest Indo-German joint ventures, majority of them medium-sized companies, more than 20 had improved their performance over the previous year, underlining the fact that "there are not only difficulties but also many success stories of foreign investment in India". The meeting was attended by: BASF India Ltd.; Lurgi India Co. Ltd.; BHF Bank; Dr. Wilmar Schwabe India Pvt. Ltd.; Mercedes Benz India Ltd.; Krupp Industries India Ltd.; Lufthansa German Airlines; Asea Brown Boveri Ltd.; Siemens Ltd.; Weiler International Electronics Pvt. Ltd.; and Alstom LHB GMBH Working Office. Issues raised by the German investors related to the need for upgrading infrastructure to global standards; drastic simplification of bureaucratic procedures; single window clearance; long-term perspective on FDI policies avoiding frequent policy changes; proper alignment between central government policies and their implementation by the states; and lowering input costs. Investors from the auto sector emphasised that there should be the level-playing field for all in an age of global sourcing and concentration of activities. A suggestion was also made by a German investor that India should promote its image not only as a premier IT country but also as a country with wide ranging industrial capabilities as it would facilitate investment cooperation with the German SMEs.