SUGAR QUOTAS RELEASED

    Government has released 7.25 lakh tonnes of sugar for April and 8 lakh tonnes each for the months of May and June 1999 as quotas of indigenous free sale sugar. With 3.69 lakh tonnes of levy sugar quota released each for these months the total quantity of sugar available for internal consumption would be 10.94 lakh tonnes for April, 11.69 lakh tonnes each for May and June, 1999 respectively.

    The free sale quotas are for internal consumption only and with enough stock of sugar in hand the Government is in a position to release further substantial quantities additionally in case the need arises.
 
 

RAILWAY PSUs SHOW HEALTHY GROWTH

    The performance of the Public Sector Undertakings under the Ministry of Railways was satisfactory during 1997-98. During the year, IRCON International Ltd. (IRCON), increased its profitability to Rs.50.3 crore as against Rs.42.9 crore during 1996-97. Foreign exchange earnings also increased to Rs.43.4 crore against Rs.42.1 crore during 1996-97. The company has completed projects in Malaysia, Bangladesh and Nepal during the year 1997-98.

    Container Corporation of India Limited (CONCOR), showed healthy growth, both in terms of turnover and profit earnings. Company’s turnover increased to Rs.627 crore against Rs.548 crore during 1996-97. The net profit increased to Rs.115 crore against Rs.95 crore during 1996-97.

    Indian Railway Finance Corporation Ltd. (IRFC) earned a net profit of Rs.167 crore against Rs.102 crore during 1996-97. It mobilized total of Rs.2558 crore in domestic & international market in 1997-98.

    Rail India Technical & Economic Services Ltd. (RITES) showed marginal decrease in turnover from Rs.135 crore during 1996-97 to Rs.133 crore during 1997-98. Net profit also declined to Rs.14.55 crore against Rs.17.85 crore during 1997-98. Part of the reduction in the profit is attributable to implementation of the Vth Pay Commission Recommendations.
 
 

HEGDE UNVEILS MAJOR PACKAGE OF TRADE REFORMS
THRUST ON CUTTING TRANSACTION COSTS; ELECTRONIC FILING OF APPLICATIONS ALLOWED
ANNUAL ADVANCE LICENCE SYSTEM INTRODUCED; NEW BEGINNING FOR SERVICES EXPORTS
CONCEPT OF FREE TRADE ZONE WITHOUT CUSTOMS INTERVENTION INCORPORATED; ZERO DUTY EPCG SCHEME EXTENDED TO OTHER SECTORS
SIL FOR EXPORT OF BRANDED PRODUCTS; TRIPLE WEIGHTAGE FOR SSI MANUFACTURER EXPORTERS; OMBUDSMAN TO ADDRESS EXPORTERS PROBLEMS
DEPB TO CONTINUE
FURTHER RATIONALISATION OF EOU/EPZ SCHEME
GREEN CARD FOR EXPORTERS EXPORTING 50% OF
THEIR PRODUCTION; GOLDEN STATUS CERTIFICATE FOR EXPORT HOUSE, TRADING HOUSE ETC
ADDITIONAL FACILITIES FOR GEM AND JEWELLERY EXPORTS
HEGDE SEEKS PLAN ALLOCATION OF Rs.500 CRORES FOR GRANT TO STATES TO STRENGTHEN EXPORT INFRASTRUCTURE

    The Commerce Minister, Shri Ramakrishna Hegde, today unveiled a major package of trade reforms which incorporates a series of measures aimed at cutting transactions costs for exporters including measures allowing -- for the first time -- electronic filing of applications to be started on a pilot basis for issue of advance licences at Delhi; provision for annual advance licence to avoid unnecessary interface between government and exporters; reduction of threshold limit for zero-duty imports under the Export Promotion Capital Goods (EPCG) Scheme for many more sectors; additional facilities for gem and jewellery exports; benefit of special import licence (SIL) to promote branded exports; concept of free trade zones without value-addition, export obligation etc. and setting up of a new institutional mechanism of "Ombudsman" for on-the-spot solutions to problems faced by the exporters. Shri Hegde announced the Exim Policy as revised with effect from 1st April, 1999 at a news conference here today.

    In a major initiative making the Duty Exemption scheme flexible, a provision for annual advance licence has been made to reduce avoidable interface between the exporters and the Office of the Director General of Foreign Trade (DGFT). This facility would provide necessary flexibility in the import of duty-free inputs required for export production, i.e., the exporter will now be able to import any of the prescribed inputs as per the input-output norms right through the year without approaching the government. Further, the licence would be issued without stipulation of minimum value addition. In such cases where input-output norms are not fixed, licences can be obtained from all the Port Offices on the basis of self-declaration. Electronic filing of applications is being started on a pilot basis for issue of advance licence at Delhi, which will enable the exporter to file his application electronically and receive a response through E-mail. This facility will gradually be extended to all other Ports within a prescribed time-frame, Shri Hegde announced.

    The DEPB (Duty Entitlement Pass Book) scheme is being continued. Pre-export DEPB credit entitlement is being increased from 5% to 10% of the previous year’s export performance . A number of Ports have been added for availing facilities under the Duty Exemption Scheme, including DEPB and rationalisation of DEPB rates has been done to account for revisions in customs duty and surcharge thereon. Appreciating the problems of exporters in their inability to fulfil export obligations undertaken in the past, an additional period for fulfilment of past obligations has been granted for both EPCG and advance licence holders.

    To promote export of branded products, a beginning has been made by providing benefit of special import licence (SIL) to all such exports.

    Green cards will be issued to exporters who export 50% of their production with a minimum of Rs.1 crore per year entitling them to various facilities in a move to recognise the national service rendered by exporters. Similarly, all exporters who attain Export House/Trading House/Star Trading House/Super Star Trading House for 3 successive terms or more, will be eligible for Golden Status Certificate which will entitled them to all benefits accruing from such status in perpetuity irrespective of variation in their performance in future. In an attempt to encourage exports from the small scale sector, exports made by small scale sector manufacturer exporters will be given triple weightage for the purpose of recognition as Export House/Trading House/Star Trading House/Super Star Trading House.

    A new chapter has been added in the Policy recognising the importance of export of services and the potential in this sector. Apart from extending all facilities applicable to merchandise exports, the threshold limit for recognition as Service Export House etc. has been pegged at one-third of the level prescribed for merchandise exports.

    Duty free import of consumables upto certain limits has been allowed for the gem & jewellery, handicrafts and leather sectors to enable the exporters to achieve higher unit value realisation.

    Having achieved the leadership position in the cut and polished diamond sector, a new thrust for jewellery and studded jewellery sector has been provided through various relaxations including the permission for import of jewellery for re-export after repairs/remaking.

    There has been further rationalisation in the Export Oriented Units (EOUs)/Export Processing Zones (EPZs) Scheme. Net Foreign Exchange earnings as a percentage (NFEP) of exports requirement for units operating in EPZ & EOUs has been made uniform at 20%. However, for hardware units, bio-technology and toy sectors, this NFE requirement has been reduced to positive NFEP. Procedures for operation of units in EOU/EPZ have been simplified further and a number of operations are to be permitted on the basis of self-certification.

    The concept of Free Trade Zone without Customs intervention and value-addition, export obligation etc. has been mooted in the Policy. Free Trade Zones will become operational from 1.7.1999 and units in the Free Trade Zones will be permitted to carry out any manufacturing or trading activities, the Minister said. They will not be subjected to any pre-determined value-addition, export obligation, input-output or wastage norms. They will be treated as outside the Customs territory of the country, with the Customs manning only the entry and exit points. Sale in the domestic tariff area (DTA) will be permitted for the Free Trade Zones on payment of the full customs duty. The Development Commissioner will provide a single window service and Customs will not interfere in any way. The existing Free Trade Zones will be given the option to go in for the new system which ensures greater operational freedom in export activity.

    A scheme is being evolved to involve state government in the export promotion effort particularly for encouraging agro-exports. In this context, Shri Hegde said that in order to make exports a truly national effort, he was pursuing his proposal for a Plan scheme involving an allocation of Rs.500 crores by way of grants to the states for strengthening their export infrastructure and in particular giving a boost to exports.

    In order to ensure easy access to inputs and to integrate with the global economy, as many as 894 items have been added to the Free List of Imports. 440 additional items have been put in the SIL list of imports.
 
 

VICE PRESIDENT CALLS FOR NEW SAFETY PARADIGM
JATIYA STRESSES FOR COORDINATED SAFETY MEASURES IN MINING
NATIONAL SAFETY AWARDS PRESENTED

    The Vice President Shri Krishan Kant gave away the National Safety Awards for Mines for the years 1995 and 1996 here today. In his address, the Vice-President called for a 'new safety paradigm' in view of increased mechanisation, modern techniques and increased depth of mining. Shri Kant stated that "Two concepts are likely to be vital in the new safety paradigm. First, safety must be fully integrated into production, not simply thrust externally upon employees. It must become "cultural". Second, safety must improve in small steps each day. All this points to the need to evolve participative management and self regulation involving the miners themselves for safety to be truly integrated into the work routine. It is only when there is teamwork and good communication between the management and the workers that creative solutions for achieving better safety standards can emerge". The Vice-President stated that the Mining Industry must take a pledge to improve the working conditions of all those who toil hard in this key sector.

    Congratulating the Award Winners, Labour Minister, Dr. Satyanarayan Jatiya said that we want to make mining, an accident free activity. Our topmost priority is to ensure fool proof safety of mine workers. This can be achieved only by coordination among management, Labour Unions and Government Agencies. Shri Jatiya said that with this objective, Government is encouraging the concept of self control and participative management. Simultaneously, Government is not only encouraging safety measures but also giving incentives to the Managements for reducing the accidents. In this direction a number of educational programmes including special safety weeks and exhibitions are being organised for this purpose. The National Safety Awards for Mines are one of them.

    Dr. Jatiya informed that these Awards were instituted in 1983 by the Labour Ministry with a view to recognise and encourage excellence in the area of safety. He said that for the year 1995, 254 mines participated under the various categories and 25 mines have won the 32 Awards. For the year 1996, 293 Mines participated and 27 Mines have won 32 Awards. The Awards are given under two schemes and all mines have been divided into seven different groups depending upon the type of mineral and nature of workings. He said not only awards winning mines but also there are many contesting mines which have recorded zero excellence.

    While addressing the Steel and Mines Minister, Shri Navin Patnaik stated that the safety and better working condition should be given paramount importance for reducing dangers of accidents in the mining industry. This is possible if the safety rules are obeyed properly by the managements and the workers, he said.
 

A LIST OF AWARD WINNING MINES FOR THE YEAR 1995 AND 1996 ARE AS FOLLOWS
Type of Mine Name of the Winner Name of the Runner up


SCHEME-II : LOWEST INJURY FREQUENCY RATE
(A) PER LAKH MANSHIFT WORKED


(B) PER MILLION CUBIC METRE OF OUTPUT

AWARD WINNING MINES FOR THE YEAR 1996
SCHEME-I : LONGEST ACCIDENT FREE PERIOD

Type of Mine Name of the Winner Name of the Runner up


SCHEME-II : LOWEST INJURY FREQUENCY RATE
(A) PER LAKH MANSHIFTS WORKED

Type of Mine Name of the Winner Name of the Runner up


(B) PER MILLION CUBIC METRE OF OUTPUT


 

UNION HOME MINISTER ANNOUNCES PIO CARD SCHEME

    Union Home Minister, Shri L.K. Advani while addressing the press Conference on PIO Card Scheme said here today that the understanding the sentiments of persons of Indian origin to be closer to their original country and to reinforce their emotional bonds, as well as respecting their desire to participate in the development of the country of their origin, the Government made an earnest resolve to frame a special scheme. This resolve was translated in the first Budget Speech of FM:-

    "Government have decided to draw up a scheme for issuance of a Persons of Indian Origin (PIO) Card for those living abroad and having foreign passports. The PIO Card, which would be extended to Persons of Indian Origin settled in countries to be specified by Government would besides introducing a visa free regime, also confer some special economic, educational, financial and cultural benefits. The details are being worked out."

    The Government has today launched a comprehensive Scheme for the Persons of Indian Origin – called the "PIO Card Scheme". Under this Scheme, Persons of Indian Origin upto the fourth generation (great grand parents) settled throughout the world, except for a few specified countries, would be eligible. The Card would be issued to eligible applicants through the concerned Indian Embassies/High Commissions/Consulates and for those staying in India on a long term visa, the concerned Foreigners Regional Registration Officer (Delhi, Mumbai, Calcutta, Chennai) would do the same.

    The fee for the card, which will have a validity of 20 years, would be US $1000.

    Besides making their journey back to their roots simpler, easier and smoother, this Scheme entitles the PIOs to a wide range of economic, financial, educational and cultural benefits. The benefits envisaged under the Scheme include:
 

(i) No requirement of visa to visit India;
(ii) No requirement to register with the Foreigners Registration Officer if continuous stay exceeds 180 days, then registration is required to be done within a period of 30 days of the expiry of 180 days:
(iii) Parity with Non-Resident Indians in respect of facilities available to the latter in economic, financial, educational fields etc. These facilities will include:
(a) Acquisition, holding, transfer and disposal of immovable properties in India except of agricultural/plantation properties;
(b) Admission of children in educational institutions in India under the general category quota for NRIs – including medical/engineering colleges, IITs, IIMs etc.
© Various housing schemes of Life Insurance Corporation of India, State Governments and other Government agencies:
(iv) All future benefits that would be extended to NRIs would also be available to the PIO Card holders;
(v) However, they shall not enjoy political rights in India.

    The above steps would go a long way in renewing and strengthening the emotional bond amongst PIOs with the land of their origin. The attractive features of the Scheme will further exhort them to play an increasingly constructive role in the socio-economic and cultural development of the country of their origin.
 
 

GOVERNMENT ANNOUNCES REVISED TELECOM TARIFF STRUCTURE

    Government are keen to help the weaker sections of society particularly the persons living in villages and belonging to the low income group in urban areas. Government are also committed to increase tele-density in India, extend telecommunications facilities in villages and penetrate deeply in the rural areas and bring about information revolution in this country in the coming few years. In this context, fixation of appropriate tariff is of paramount importance. On account of the aforesaid consideration, the Government have decided as under:     The highlights of decision taken by the Government are as under:     With the above changes, the Deptt. of Telecom and MTNL as operators of service will have the following tariff structure (rental and local call charges) for basic services in rural and urban areas: RURAL SUBSCRIBERS - No increase either in rental or call charges.
URBAN LOW CALLING SUBSCRIBERS - No increase either in
(Upto 200 calls per month) rental or call charges.
OTHER URBAN SUBSCRIBERS
(i) RENTAL (Monthly in Rs.)
    As notified by the TRAI except for exchange system upto 100 line as against TRAI’s notified rate of Rs.120 per month. The DOT proposes Rs.70 per month.

(ii) CALL CHARGES (No. of calls monthly)

                                                 Existing                           TRAI’s notifiedTariff                           DOT’s Tariff

Free                                             75                                         60                                                     75

Re.0.80                                     76-250                                     --                                                 76-200
Re.1.00                                     251-500                                 61-500                                           201-500
Rs.1.20                                         ---                                       501 & above                                 501 & above
Rs.1.25                                     501-1000                                     ---                                                     ---
Rs.1.40                                     1001 & above                               ---                                                     ---

    Since the tariff order of 9th March, 1999 was announced by the TRAI, there have been significant developments by way of the announcement of a new Telecom Policy etc. which significantly alter the economics of the telecom sector as a whole. Therefore, the following other decisions have been taken and conveyed to TRAI:-

ANNEXURE
RURAL SUBSCRIBERS - No increase either in rental or call charges.
URBAN LOW CALLING SUBSCRIBERS - No increase either in
(Upto 200 calls per month) rental or call charges
OTHER URBAN SUBSCRIBERS

(i) RENTAL (Monthly in Rs.)                   DOT’s Tariff
Existing           TRAI’s notified                 for Urban High Callers
Slab Rate               Rate

 Exchange
System
Capacity
Less than                    50                             120                                     70
100 lines
100 to 999 lines           75                             120                                     120
1000 to 29999 lines     100                           120                                     120
30000-99999 lines       137.5                        180                                     180
1 lakh to
3 lakh lines                   180                            250                                     250
3 lakh lines
& above                      190                             250                                     250

(ii) CALL CHARGES (No. of calls monthly)

                        Existing                 TRAI’s notified                 DOT’s Tariff
                                                            Tariff

Free                     75                              60                                 75
Re.0.80             76-250                           --                             76-200
Re.1.00             251-500                      61-500                        201-500
Rs.1.20                 ---                            501 & above             501 & above
Rs.1.25             501-                             1000 ---                             ---
Rs.1.40             1001 & above                  ---                                 ---
 
 

A NEW SAFETY PARADIGM CALLED FOR
VICE PRESIDENT PRESENTS NATIONAL SAFETY AWARDS

    Shri Krishan Kant, Vice President of India has said that the need to maintain constant vigilance on the safety-front has increased today, now that the mining sector has been made more open to private and foreign investment. With increased mechanisation, modern techniques and increased depth of mining, a new safety paradigm must emerge in our industry.     Engineering and enforcement will still be needed, but attention must finally be focussed on education. Safety will then be an equally integral procedural component, alongwith quality. Because employees will be educated, not simply trained, they will be empowered to modify or shut down any process due to safety and quality concerns. Instead of "inspecting in" safety, practitioners will design it into the process, he said.

    Giving away the National Safety Awards (Mines) here today, Shri Krishan Kant said that two concepts are likely to be vital in the new safety paradigm. First, safety must be fully integrated into production, not simply thrust externally upon employees. It must become "cultural". Second, safety must improve in small steps each day. All this points to the need to evolve participative management and self regulation involving the miners themselves for safety to be truly integrated into the work routine. It is only when there is teamwork and good communication between the management and the workers that creative solutions for achieving better safety standards can emerge. We must all realise that safety in the modern age is multi-dimensional. It affects not only the mine worker, the owners of the mines and the management, it also affects the public as well, he added.

    Shri Krishan Kant said that implementation of codes of safe practices, application of scientific techniques and modern technology, and improvement in safety consciousness have helped improve safety in working conditions which is reflected in the gradually declining rate of fatal and serious accidents in mines. The year 1998 witnessed an all time low rate of fatal and serious accidents. However, there has been no remarkable breakthrough in the trend of accidents in mines which almost reached a plateau in the last two decades. This is indeed a matter of concern and calls for path finding new initiatives, he said.
 
 

NEW NATIONAL WATER POLICY BEING FINALISED : SOMPAL

    The Union Minister of State for Water Resources, Shri Sompal has said that a new National Water Policy is on the anvil in pursuance of the National Agenda for Governance and in keeping with the wishes of the Prime Minister so that no water goes waste and we clean up our sacred rivers. This will ensure adequate availability of water for our peoploe in all spheres of life. Shri Sompal said this while presiding over the 15th Annual General Meeting of the National Water Development Agency Society of the Ministry of Water Resources, here today.

    Addressing the meeting, the Minister also stated that keeping in view the long-term national perspectives, some major aspects of the new water policy are likely to include multi-sectoral perspectives and participatory approach towards resource planning and management, interstate river water disputes, water-sharing amongst States, private sector participation, environmental aspects in the water resources management , funding and related policies for revenue generation, reforms related to legislation and incentives/disincentives etc. under the Water Resources Sector.

    The Minister further informed that the National Water Development Agency has completed all the 17 pre-feasibility reports of Peninsular component and all 14 pre-feasibility reports of the Himalayan component. Also, feasibility reports of the five links five links under Peninsular component have been completed by 31st December, 1998. Survey & investigations for preparation of feasibility reports for eight links in Peninsular component and six links in Himalayan component are in progress.

    Shri Sompal also disclosed that the Government of India has set up a National Commission for Integrated Water Resources Development Plan. The objectives of the commission are to prepare an integrated water plan covering drinking, irrigation, industrial, flood control and other uses, suggest modalities for transfer of surplus water to water deficit basins by inter-linking of rivers, prioritise important ongoing and new projects and to suggest physical and financial resource generation strategies for the water sector. The report of the National Commission is scheduled to be submitted to the Government by the end of June, 1989.

    The Minister solicited the cooperation and consensus of the State Governments and people in fulfilling the objectives of the National Commissions's Plan.

    Among others, the meeting was also addressed by the representatives and experts from the various State Governments and the Centre.
 
 

SHRI R.N.GOYAL TAKES OVER AS MEMBER, TELECOM COMMISSION

    Shri R.N.Goyal has taken over as Member (Production), Telecom Commission. An Indian Telecom Service (ITS) Officer, Shri Goyal has worked in various wings of Department of Telecommunications (DoT). He was associated with Post and Telegraph Training of Lagos, Nigeria from 1981-84. His services were also requisitioned by International Telecommunication Union (ITU) as senior rural telecom expert to Madagaskar in 1993.
 
 

CUSTOMERS CAUTIONED AGAINST CIRCULATION  OF FAKE POSTAGE STAMPS

    Some instances of circulation of fake postage stamps and revenue stamps have been noticed by the Department recently. As this is illegal, all postal customers are hereby cautioned to guard against the same. They are also requested to purchase postal stamps and stationery and revenue stamps from Post Offices or the authorised agents and not from any other source.
 
 

SETTING UP OF MUTUAL FUNDS DEDICATED TO INVESTMENT IN GOVERNMENT SECURITIES MARKET

    Reserve Bank of India is helping to set up Mutual Funds dedicated to investment in Government Securities. This will help in broad basing the holding of Government Securities. Keeping this objective in view, Government has decided to permit from 1st April, 1999 non-Government Provident Funds, Superannuation Funds and Gratuity Funds to invest in the units of such Mutual Funds which have been set up as dedicated Funds for investment in Government Securities and which have been approved by the Securities and Exchange Board of India. There will however be no change in the percentages to be invested under various categories.