DEVELOPMENT DIGEST

VOL.3                                                     1-31 July 2000                                                     NO.4

The Uttar Pradesh government has taken steps towards IT revolution by announcing optical fibre policy today. It has subsequently opened up the sector for private participation for infrastructure building.

This is the first time that a north-Indian state has formulated such a policy after the southern states of Andhra Pradesh, Karnataka and Maharashtra .

Propelled by resounding exports, the Indian infotech and software services industry grew by more than 53 per cent to Rs. 24,350 crore during 1999-2000 as against Rs. 15,890 crore revenue earned during the previous year.

Software exports posted 51 per cent growth in dollar terms to touch $4 billion as compared to $2.65 billion worth of exports in 1998-99, a National Association of Software and Service Companies (Nasscom) survey said.

The survey projected a robust 57.5 per cent growth in software exports to clock $6.3 billion revenue during the current year. Out of the total revenue of Rs. 24,350 core during 1999-2000, software exports totalled Rs. 17.150 core and the domestic software market fetched a total of Rs. 7,2000 crore.

(The Hindu - 5-07-200)

India and Russia have agreed to extend for another 10 years a unique bilateral cooperation programme in science and technology.

A renewed Integrated Long Term Programme (ILTP) for Indo-Russian cooperation in science and technology would be signed during the Russian President, Mr. Vladimir Putin's visit to India in early October, official sources said after a meeting between the visiting Union Human Resource Development Minster, and the Russian Industry Minister.

An initiative was launched in the capital in early July, with senior foresters, academicians, Government agencies and representatives of the Food and Agriculture Organization and the Centre for International Forestry Research getting together to formulate parameters for improving the management of forests on a sustainable basis.

The "Criteria & Indicators for Sustainable Forest Management" will help NGOs, local population and the Government assess the status and health of forests.

An autonomous organisation under the Ministry, Indian Institute of Forests Management, organised a two-day meet as part of a series of workshops planned across the country to sensitise foresters and other

(Ministry of Information and Broadcasting)

Stakeholders of the national forests to adopt a participatory forest management as a means of attaining the SFM.

Eight national -level criteria were identified for monitoring forest management: increase in forest and tree cover, maintenance and conservation of biodiversity, eco-system function and vitality, soil and water resources, enhancement of forest productivity, optimisation of forest resources utilisation, maintenance and enhancement of social, cultural and spiritual benefits and adequacy of policy, legal and institutional framework.

FOOD FRESH OR STALE, SOON YOU CAN TELL
(The Indian Express - 7-07-2000)

From 1 September , it will be mandatory for manufacturers to display a "best before" date on all packaged food products.

The "best before" date will indicate the time till which the product would be marketable with the qualities claimed by the manufacturer intact.

In a series of customer-friendly measures, the Government has for some time now been attempting to lay down certain benchmarks to maintain the quality of packed foods.

The Centre is expected soon to release Rs. 2,5000 crore to States for maintenance and laying of rural roads. The funds form part of this year's Union Budget outlays for transfer of resources to the States under the "Pradhan Mantri Gramodaya Yojana".

The scheme is aimed at fulfilling the critical needs of the rural people under a time-bound programme. A total provision of Rs. 5,000 crore has been made in this year's Budget out of which Rs. 2,500 crore has been earmarked for launching a nationwide programme of constructing rural roads and

improving rural connectivity. The Central aid would be provided to States for implementing specific projects in these sector.

The Crucial environmental clearance for upgrading the Cuddalore-Tuticorin highway along the coastline has been granted by the Union Government.

The road improvement scheme is a part of the Tamil Nadu road Sector Project (TNRSP) and the Centre's permission sets the stage for posing the scheme to the World Bank for a final scrutiny, after which the lending agency will sanction funds.

Three years ago, the Bank indicated its willingness to provide US $ 3000 million for the scheme, for extension of the East Coast Road.

In a communication to the State government, the Centre imposed a set of conditions to safeguard environment. The alignment of the road to be improved should not pass through forest land or ecologically-fragile areas, as defined under CRZ-I. No mangroves should be removed for implementing the project.

No trees, which are located beyond the edge of the proposed road, should be felled. The ones, which are necessary to be cut, should be identified and the requisite approval from the competent authority obtained prior to felling of such trees. The highways authorities should plant three times the number of trees to be felled. Where the roads pass though low-lying areas, their height should be at least three feet above the high-flood level.

The third component of the Project is the improvement of the stretch between Tiruchi and Kanyakumari.

Though a major part of the scheme cost will be met form the World Bank's funds, the Government will bear the outlay required for rehabilitation and resettlement of the project-affected persons and land acquisition.

The Centre has decided to set up a Bench of the Karnataka High Court in the Hubli-Dharwad region.

It has also decided to establish a permanent Bench of the Guahati High court in Itanagar from 12 August to meet a longstanding demand of Arunachal Pradesh.

The Government has announced the new National Agricultural Policy envisaging more than four per cent annual growth rate. The 'rainbow revolution', it promises, would cover all aspects of the farm sector.

Salient features of the policy are :-

• Over 4 per cent annual growth rate.
• Greater private sector participation through contract farming.
• Price protection for farmers.
• National agricultural insurance scheme to be launched.
• Dismantling of restriction on movement of agricultural commodities throughout the country.

A major highlight of the new policy is promotion of private sector participation through contract farming and land leasing arrangement to allow accelerated technology transfer, capital inflow and assured markets for crop production, especially of oilseeds, cotton and horticultural crops. Lease markets will be developed for increasing the size of holdings, and legal provisions will be made for giving private land on lease for cultivation and agro-business.

The Union Power Ministry and the Jammu

and Kashmir Government have signed a Memorandum of Understanding (MoU) for implementation of seven hydroelectric power projects in that State. The total generating capacity of these seven projects would be 2,798 MW.

The J&K Government will get 12 per cent free power form these project as per the existing guidelines and would also get an additional 15 per cent Central share of unallocated power at bus bar rates to meet its needs for winter peak requirement. Employment opportunities for local people, particularly in group C and D posts would be an additional benefit for the State.

Union Health and Family Welfare Minister has announced the setting up of a special Technology mission for the six States, having an appalling record in population control, Uttar Pradesh, Madhya Pradesh, Bihar, Rajasthan, Orissa and Assam.

Special efforts have to be made in these States since the population control record here will determine the pace at which India achieves population stabilisation.

The Department of Telecommunication (DoT) in India is planning to auction the third generation (3-G) license in the country.

Third generation licenses ride on higher frequencies for providing high quality broadband access to the consumer through mobile phones.

For anyone wanting to learn the Laws of the land the website India Code at

http://caselaw.delhi.nic.in/incodis/ has it all. The site contains central acts of general importance in 60 volumes. The website of the legislative department of the Union Law Ministry has been awarded the first ranking Key Resource in the Indian Law topic at : http://www.links2go.com/topic/ Indian Law by a US-based Internet organisation links2go.com.

The Government has approved the Semi- Automatic Loom for decentalised powerloom sector. The following important decisions were also taken at a meeting of the Inter-Ministerial Steering Committee (IMSC) to review the Technology Upgradation Fund Scheme launched on 1 April 1999:

1. Certain machinery for the garment exporters (NIE quota system) were approved under TUFS.
2. For setting of compact spinning machine under TUFS, additional downstream value addition processors equal to 50% of production capacity was approved.
3. To cover partly disbursed cases before 1.4.1999, re-submission of fresh proposals will be now at the discretion of the financial institution.
4. Certain machinery as recommended by the Technical-cum-Monitoring Advisory Committee, have been included in the TUFS.

(The Hindu - 22-07-2000)

The deadline for the implementation of a value-added tax (VAT) in all the states has been pushed back by a year to 1 April 2002. The earlier deadline set by a Committee of State Finance Ministers was

1 April 2001.

The decision on a new deadline was taken at a meeting of the Empowered Committee of State Finance Ministers to monitor sales tax reforms in view of the complexities involved in moving over to a full-fledged VAT system in all the States.

The board of the Asian Development Bank (ADB) cleared a $180 million (Rs. 765 crore) loan for funding the highway stretch between Surat and Manor on NH-8 in Gujarat and Maharashtra.

A Rs. 12-crore 1 mw project to generate power from cattle/dairy waste on a pilot bais is to be put up at the Haebowal diary complex in Ludhiana. The Haebowal complex which boasts of 1.5 lakh cattle heads generates over 2,500 tonnes of cattle waste daily which can be used for generating over 10 MW power.

Indian social activists Aruna Roy and Jockin Arputham have won this year's Ramon Magsaysay award along with a former Philippine Town Mayor, a Chinese environmentalist and a former Indonesian journalist, the award body said. Roy and Arputham won the award for community leadership and international understanding, respectively. Roy heads a peasant workers' group while Arputham founded a slum dweller's association.

The Union Cabinet cleared the uplinking policy and the establishment of a Broadband telecom Multi-media Corporation of India railways under the Indian Companies Act, 1956. This will be a Delhi-based Government company with a seed capital of Rs 15 crore and an authorized capital of Rs. 1000 crore.

Oil and Natural gas Commission (ONGC) has registered a growth of 55 per cent in its net profit for the first quarter of the current fiscal. Net profit of the company for the first quarter of 2000-01 stood at Rs 938 crore.

The Union Government launched a nationwide scheme to provide 11 essential items including pulses, salt and edible oils through its public distribution network at a price lower than the market price.

Under the scheme called 'Sarvapriya', 11 items of day-to-day use such as pulses, salt, edible oils and soap will be supplied through 4.5 lakh fair price outlets across the country at a cost lower than the current market price.

The small-scale sector production is expected to grow at the rate of 8.5-9.5 per cent in the current fiscal, according to a forecast made by the Small Industries Development Bank of India.

Exports may similarly witness 8-9 per cent growth during the year 2000-2001. The report forecasts production of the SSI sector

will be in the vicinity of Rs. 662,500-668,500 crore in absolute terms this year while export would be the region of $ 14.22 billion to $ 14.35 billion.

The sector had reported around 8 per cent growth in last year as against Sidbi projection of 7.5-8.5 per cent.

Sidbi has further projected that employment in the sector will reach the level of 18.38-18.56 million people by the end of March 2001, recording a growth rate of 3-4 per cent.

India offered its expertise in information technology (IT) and research and development sectors to Asean nations and underscored the need of 'infinite' cooperation in the area of trade and investments with the 10-member group.

India's expertise in the IT and research and development sectors provides ample opportunites for Asean members to strengthen their partnership with New Delhi.

India and Syria agreed to cooperate in a wide range of areas including chemicals, small-industries, railways and telecom. They have also agreed to make concerted efforts to increase bilateral trade to a level commensurate with the potential of the two countries.

The Lok Sabha has passed the Motor Vehicles (Amendment) Bill, 2000, to provide for more effective steps both to check corruption in the transport departments as well as road accidents in addition to permitted lawful use of LPG as an environment-friendly auto-fuel.