Cabinet
expansion today NEW DELHI, Dec 4: The 40-member Union Council of Ministers will be expanded tomorrow with the likely induction of at least Jaswant Singh, Pramod Mahajan and Jagmohan as Ministers of Cabinet rank. The long-delayed expansion, the first since Vajpayee-led Government assumed office in March, takes place after BJP’s poor performance in the Assembly elections in three states and is likely to be a lid exercise. Speculation was rife that two vacancies belonging to AIADMK in the Council of Ministers will also be filled up with nominees from that party — C Srinivasan and Niraikulathan —but there was no confirmation. Sources said the induction of AIADMK nominees depended on the clearance from party supremo J Jayalalitha, who is now in Hyderabad. Prime Minister Atal Bihari Vajpayee met President K R Narayanan this evening for about half-an-hour and discussed the Cabinet expansion. Jaswant Singh, Planning Commission Deputy Chairman and Prime Minister’s special emissary on diplomatic missions, is likely to be the new External Affairs Minister. While high-profile BJP MP Pramod Mahajan is likely to get the Communications portfolio, former Jammu and Kashmir Governor and MP from New Delhi Jagmohan is tipped for Information and Broadcasting. Vacancies in I and B and communications arose after incumbent Sushma Swaraj was shifted as Chief Minister of Delhi on the eve of Assembly elections in which the BJP lost power after faring badly. The external affairs portfolio has been with the Prime Minister for the last eight months. This will be the first expansion of the Council of Ministers after the BJP-led Government assumed office in March this year. The swearing in of the new Ministers is scheduled for 1800 hours at a ceremony in the Ashoka Hall of Rashtrapati Bhawan, according to an official announcement. Earlier moves for expansion of the cabinet ran into rough weather and it was announced that a full-fledged expansion would take place after the winter session of Parliament concluding on Dec 23. Jaswant Singh, who was tipped for the Finance portfolio in March, could not be inducted following opposition from the RSS on the ground that he was defeated in the elections. The same reason kept Mahajan out of the Cabinet. He was later made the Political Advisor to Prime Minister, which he shed subsequently before he was elected to Rajya Sabha. There are two vacancies in the Cabinet which were held by AIADMK nominees who quit the Government on various occasions. Sedapatti Muthiah resigned as Surface Transport Minister following a Chennai city court framing charges against him in a corruption case. Another AIADMK nominee R K Kumar who was Minister of State for Finance resigned on health grounds. Meanwhile, Prime Minister Atal Bihar Vajpayee called on President K R Narayanan this evening. The meeting lasted 30 minutes. This is second time within a week that the Prime Minister had a meeting with Mr Narayanan. The last meeting was after the Assembly election results when the ruling BJP was routed in Delhi, Rajasthan and Madhya Pradesh. Ms Sonia Gandhi’s statement in Chandigarh today gave rise to speculations that the main opposition party, the Congress, which secured a landslide win in the three states, might attempt to form an alternative Government. However, the Congress has been maintaining throughout this week that they will not topple the eight-month-old Vajpayee Government and that the ruling coalition would fall under the weight of its own contradictions. The Prime Minister is understood to have assured the President about the stability of his Government and that all the allies including the AIADMK supremo Jayalalitha have publicly announced their support to the ruling coalition. (PTI) |
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Escapes
embarassment in LS NEW DELHI, Dec 4:Government avoided a major embarassment in Lok Sabha today by managing to prevent a vote on extension of time to a joint committee on essential commodities bill after the entire opposition sought to corner the treasury benches. Opposition’s insistence on a division led to three adjournments of the House by which time Speaker G M C Balayogi held consultations with floor leaders, following which the Government came out with an assurance that it would bring a bill in this session itself to provide for stringent action against black marketers and hoarders. After a request by the Speaker that the joint committee on amendments to the bill be given time till December 8 to submit its report and the assurance by Food and Civil Supplies Minister Surjit Singh Barnala, Congress chief whip P J Kurien relented from pressing for a division. It all started suddenly when BJP MP and chairman of the committee Shyam Bihari Mishra sought leave of the House for extension of time to the committee to submit its report till the end of the session. As the Speaker was in the process of seeking a voice vote on the issue as is done normally, Congress members supported by other opposition parties caught the treasury benches off guard by demanding a vote by division. The treasury benches appeared to be uncomfortable following the opposition demand as members of the BJP and its allies did not seem to be in sufficient strength in the House at that time. Parliamentary Affairs Minister Madan Lal Khurana sought to defuse the situation by expressing readiness at one time to withdraw the motion seeking extension of time but this was not acceptable to the opposition. As the House was locked in a wrangle, the Speaker adjourned it for 45 minutes to enable discussions with floor leaders. Twice later when the House resembled, it had to be adjourned as the talks were inconclusive. Finally when the House met after the third adjournment, Barnala recalled the unanimous decision at the Chief Ministers’ conference last week that the Essential Commodities Act should be amended to also include edible oils and vegetables under its purview. He said the Chief Ministers conference also decided to empower the State Governments to take effective action against black marketers and hoarders. The Government, he said, would take stringent action against hoarders and black marketer. (AGENCIES) Opposition walkout on removal of AMU VC NEW DELHI, Dec 4: Members belonging to the Congress, the Samajwadi Party, the Rashtriya Janata Dal,the Janata Dal and the Muslim League today staged a walk out in the Lok Sabha protesting against the Government not acceding their demand for removing the Aligarh Muslim University Vice Chancellor. After Human Resource Development Minister Murli Manohar Joshi made a statement on the developments in the AMU in the House,they sought clarifications.They demanded immediate removal of the Vice Chancellor alleging that he was acting in a dictatorial manner. Although the chair repeatedly said there was no rule in the House to seek clarification or information after a Minister had made a statement,the members supported the agitating students and alleged that the Government was protectiong the Chief Executive in the AMU. Dr Joshi said the VC had been advised to take suitable and urgent steps to reopen the AMU. He was also asked to institute an inquiry into the whole series of "unsavoury incid-ents"with the help of a retired High Court judge.The Government was also in touch with the district administration and the Uttar Pradesh Government to ensure that necessary environment for restoring normalcy through confidence building measures among the students was created, he added. A junior doctor of the medical college had to be suspended for allegely molesting a woman patient. Thereafter,the junior doctors started agitation and went on strike demanding revocation of the suspension of their colleague. The strike was started on
September 28 and it was called off on October five on an
assurance that the grievance would be looked into. But
the agiatation was resumed on October 14.In view of the
agitation,the faculty of medicine was closed sine die.The
striking doctors thereafter started dharna at the
residence of the provost. There was an ugly clash among
the junior doctors on November four.They alleged that
they were attacked by miscreants at the instance of the
president of the AMU Students Union.The junior doctors
went on rampage, damaged the car of the Rector, gheraoed
the residence of the Pro-Vice Chancellor and set it on
fire.The situation was brought under control with the
help of the police.The university was closed sine die,Dr
Joshi said.(UNI) Black-marketing of
tickets JAMMU, Dec 4: Crime and Railways Police has established a nexus among Railways staff, police and travel agents in black-marketing of railway tickets of different stations especially New Delhi and Mumbai and initiated steps to stem the rot. Sources in the Crime and Railways Police said that an employee working with a travel agent of Udhampur, who was arrested by Railways police sometime back, disclosed during interrogation that his travel agent used to pay a "fixed share of amount" to Railways employees (engaged in reservation of tickets) and police for black-marketing of the tickets. The employee identified as Aiyaz Ahmed, who was working in a travel agency owned by one Ashok Bhandari in Udhampur, has recently been bailed out after remaining in police custody for quite sometime. Bhandari’s son, who was accompanying Aiyaz Ahmed at the time of his arrest, had managed to give a dodge to police under mysterious circumstances. Sources said Aiyaz Ahmed when produced before a senior officer of Crime and Railways had admitted that his travel agency had nexus with Railways employees and police under which the agency owned used to pay "a fixed amount" to both the parties. Police had recovered 84 tickets from Aiyaz Ahmed. Sources said Aiyaz disclosed that he got tickets on fictitious names and without filling the forms and warrants. He was coming out of computer reservation inquiry when he was arrested. Sources said despite repeated letters written to Railways staff by Crime and Railways police, they didn’t produce warrants of forms of 84 tickets sold to a ‘black-marketeer’. Police then secured a Court directive for Railways for production of warrant. However, despite legal order, the Railways hadn’t been able to produce warrant, which is generally obtained by the Railways before giving a ticket to the people. Sources said the investigations revealed that Railways staff used to sale bulk tickets to travel agents in black-market and charge a hefty amount as their share. The travel agents then charge heavy amount from the people for giving them as confirmed tickets. These agents operate in nexus with the police, which also gets its "due share" from both travel agents as well as Railways staff. "This was the main reason that common man couldn’t get a confirmed ticket to New Delhi or other places even after 15 or 20 days of waiting as most of the tickets are sold to black-marketers", the sources said, adding "this was also confirmed by the arrested person". Crime and Railways Police have written to officers of Northern Railways giving them details about the disclosures and urging them to initiate measures to set the things right in the Department. They have also named some employees, whose names were disclosed by Aiyaz Ahmed, for taking strict disciplinary action against them so that their colleagues don’t dare to indulge in such malpractices. SRINAGAR, Dec 4 : Prime Minister Atal Bihari Vajpayee would pay a two-day visit to Jammu and Kashmir on Sunday, State Chief Minister Farooq Abdullah said today. Vajpayee will visit all three regions of Jammu, Ladakh and Kashmir to see how we are facing the Pakistan-sponsored proxy war, Abdullah told reporters at Awantipora airport, 32 Km from here. The Prime Minister will see our state, meet our people and encourage soldiers who are fighting the proxy war, the Chief Minister added. This will be the first visit of the Prime Minister to Jammu and Kashmir since the BJP-led coalition took over at the centre in March this year. Financial difficulties being faced by the state will be taken up, Abdullah said, adding obviously we will put some requests before him relating to release of security-related expenditure and plan funds which are required to continue developmental work and meet the aspirations of the people. Terming the visit as significant, the Chief Minister said the State Government would meet the Planning Co-mmission this month for expediting release of funds to Jammu and Kashmir. Asked whether there was any change in the stand of the national conference towards the BJP-led coalition after the bjp debacle in the recent Assembly elections, Abdullah said the state is totally dependent on the centre’s help. We have to have good relations with the centre irrespective of which party is ruling the country. It is for the people of the country who have to decide who will rule them. He said price rise was the single reason for the debacle of BJP in the elections. (PTI) .School teacher among 2 killed in Kashmir SRINAGAR, Dec 4 : A Government school teacher was among two persons killed in the Kashmir valley since last evening. An official spokesman said unidentified gunmen shot dead a school teacher Mubarak Ahmad Bhat at Kulgam in south Kashmir early this morning. A body of an unidentified person was recovered at Soura, on the outskirts of the Srinagar city this morning. In another incident militants attacked a search party of Special Task Force of Jammu and Kashmir Police at Dardpora Hyatpora in central Kashmir district of Badgam today, STF personnel also retaliated and the exchange continued for some time. No one was hurt in the incident. Two militants identified as Gowhar Ahmad Khan alias Gowhar and Abdul Rashid Bhat were arrested by the special task force at Veer-Chattabal and Kathidarwaz in Srinagar. A pistol, a wireless set, a hand grenade and some ammunition were recovered from the captured militants, the spokesman said, adding while Khan was acting as a self-styled group commander of Hizbul Mujahideen, Bhat was an activist of Al-Umer outfit. The spokesman said security forces unearthed three militant hide-outs at Lilam-Rashanpora, Duniwar and Sogam areas in Kupwara yesterday and seized five AK assault rifles, a .303 rifle, a pistol, 14 electric detonators, two Kg of explosives and some magazines.(AGENCIES) SSB office damaged in
Rajouri blast RAJOURI, Dec 4: Office of SSB was damaged in a powerful explosion at Manjakote last evening while security forces foiled an infiltration attempt on the LoC. A police spokesman said a powerful blast rocked a BSF camp at roadside on Manjakote last evening. While there was no casualty or damage to the BSF camp, window panes of adjoining SSB office were smashed. Security forces and police sealed the area and launched searches. No arrest has been made. Meanwhile, security forces foiled an infiltration attempt by a group of four-five militants on the LoC at village Begla in Chingas area. Militants fled back to Pakistan after security forces opened firing leaving behind two AK-47 rifles, which have been seized. Cong prepared for fresh general election: Sonia CHANDIGARH, Dec 4: Congress president Sonia Gandhi today said her party was prepared for a fresh general election if such a situation arose as she was not sure how long the Vajpayee Government would last. Sonia told reporters here while Congress would do nothing to bring down the BJP-led coalition, her party would be prepared to face fresh elections if the situation demanded so. I cannot say anything about the life of the BJP-led coalition but if the situation demands Congress is prepared to face a fresh general election, she said soon after meeting party workers from Haryana, Punjab and Chandigarh. Asked if the policy of not toppling the Government at the Centre would apply to the states also, she said decision regarding the states would be taken on a state to state basis. Sonia Gandhi said the Congress victory in recent Assembly elections was creditable, especially in Madhya Pradesh where the party had come to power again. She said the victory in Madhya Pradesh was the reward for the hard work done by the Congress Government there. Asked if she would bring Priyanka and Rahul Gandhi into politics to assist her, Sonia described the question as hypothetical. On reports that Haryana Vikas Congress leader and state Chief Minister Bansi Lal was planning to join Congress, she said it is a story. We do not know the truth. She said the
Haryana Youth Congress president would be appointed soon.
Sonia reiterated her decision to visit Punjab but
declined to give the date of her visit. (PTI)
ISLAMABAD, Dec 4:In a move to give a major push to her ‘remove Nawaz Sharif’ campaign, former Pakistani premier Benazir Bhutto has tied up with grand old man of Pukhtoon community Khan Abdul Wali Khan to launch a grand alliance. Benazir, chief of the Pakistani People’s Party (PPP), travelled to Wali Khan’s residence in Frontier province yesterday to have a luncheon meeting with him and later announced they had agreed on the formation of an alliance to ‘remove the (present) Government and rescue the country’. Both Benazir and Wali Khan, known as Rahbar (leader) of the Awami National Party (ANP), agreed that the two existing alliances led by PPP and ANP respectively, will join hands to demand the removal of Prime Minister Sharif on formation of an interim Government. As per the arrangements discussed between the two leaders the PPP led 15-party alliance Pakistan Awami Ittehad (PAI) will work with the ANP led Pakistan Oppressed Nations Movement (PONM) for forming coalition against the present Government. The two sides also agreed to work on a common minimum programme, ANP leader Ajmal Khattak said, adding that they will be further holding talks for launching a strong movement to save the country. (PTI) Army directed to be more
Vigilant to tackle ISI designs NEW DELHI, Dec 4 : With Pakistani agencies, particularly the Inter-Services Intelligence (ISI), continuing to aid and abet terrorists and subversive elements in India, including Jammu and Kashmir and the southern States, all formation headquarters of the Indian Army and Military Intelligence (MT) have been directed to be extra vigilant to enable various agencies to take timely action to ''tackle the ISI problem''. This information was given to Parliament by the Union Home Minister, Mr L K Advani. Justifying what he termed as ''sustained operations'' against terrorists and subversive elements, Mr Advani pointed out that the Government had taken several steps such as gearing up the intelligence machinery, intensification of border patrolling, modernisation of police forces and sensitising and alerting State Governments regarding movement of Pakistani ISI agents, anti-national elements and insurgents. Mr Advani said that apart from adequate surveillance on infiltration and other anti-national activities in coastal areas of India, additional battalions of the Border Security Force (BSF) had been posted in Gujarat. While patrolling in sea and land area in Kutch sector had been intensified, Naval detachments had been set up along the coast in Tamil Nadu, he added. According to the Home Minister, 48 ISI suspects- 19 in Delhi, 7 in Punjab, 1 in Rajasthan, 2 in Gujarat, 3 in Haryana and 12 in Andhra Pradesh- were arrested from January to November 20 this year. Indian citizens arrested during the period, Mr Advani divulged, were 29-6 each in Punjab and Andhra Pradesh, one each in Rajasthan, Gujarat and Uttar Pradesh, 11 in Delhi and 3 in Haryana. Mr Advani stated that in Jammu and Kashmir where the militancy ''is aided and abetted by Pak agencies including ISI'', 1306 militants were arrested during the period. Even as Mr Advani admitted that Pakistan continued to aid and abet terrorists and subversive elements on this side of the borders, he let it be known that Pakistan had not set up any training camps for terrorists in India. Denying reports that the ISI agents are inducted into India in the garb of Afghans, the Home Minister stated that a large number of Afghan mercenaries were inducted in Kashmir Valley at the behest of Pakistani ISI for terrorist activities. The number of Afghans identified between 1991 and 1998 was 85, he said, adding that ISI agents and Afghan mercenaries arrested were dealt with under the relevant laws. Mr Advani informed the BJP member from Jammu parliamentary constituency, Mr Vishnu Datt Vaidya, that 1694 security personnel were killed between January 1990 and October 1998. Mr Vaidya, who also wanted to know the number of Army and other security personnel missing or untraced in J&K, was told by Mr Advani that information in this regard ''is being collected and will be laid on the table of the House.'' Referring to the recent recovery of bodies of two remote controlled airborneaerodynamic modules (RCAAM) and components of one engine from a forest area in Rajouri district of Jammu region, the Home Minister said that the Government was aware of the efforts of terrorists in Jammu and Kashmir to obtain sophisticated weapons with active assistance from across the border. He added that while the Government of India had on various occasions strongly urged Pakistan to cease its support to tranborder terrorism in J&K, Indian authorities were ''carefully monitoring'' the situation and taking ''all steps necessary to safeguard the security and territorial integrity of the country''. Regretting that Pakistan has not ceased its attempts to interfere in India's internal affairs, Mr Advani pointed out that in view of the continuing official Pakistani support to terrorist organisations operating in various parts of India, New Delhi remained firm in its resolve to take all measures necessary to safeguard the country's security and territorial integrity. Reiterating that adequate funds had been made available to the Farooq Abdullah Government in Jammu and Kashmir for taking up anti-militancy operations, the Home Minister divulged that the Centre had suggested to the State Government to consider strengthening the village defence committees and integrating them into the existing counter insurgency grid. Stating that there are no reports of large scale migration of people from Jammu and Kashmir during the last six months, the Home Minister informed Parliament that the number of incidents of terrorist violence in the State has been on the decline since 1995 when there were 5939 incidents, which declined to 5014 in 1996, to 3420 in 1997 and to 2537 in the first ten-and-a-half months of 1998. BJP, NC Govts have failed on
all fronts' JAMMU, Dec 4: Former Union Home Minister and Congress (I) leader Mufti Mohd Sayeed today charged BJP led coalition Government at Centre and National Conference Government in State for all round failure and reiterated his demand for an unconditional dialogue with Kashmiri leaders including militant outfits. Addressing a press conference here, Mr Sayeed said the debacle of BJP in the just concluded Assembly elections in four States clearly showed that BJP led coalition has failed on all fronts. "This was first election since 1989 general poll which was not fought on communal or casteist issues", he said, adding the election was held purely on performance basis. The election results showed that BJP has failed to perform anywhere, he asserted. Saying that this was opportune time for the Congress (I) to go to the people, Mr Sayeed said :"if a snap poll is held at this stage the Congress (I) has a best chance to form the Government. Nation-wide, the political situation was in favour of Congress (I), he averred. The former Home Minister said the 10 month working of Atal Behari Vajpayee Government has belied that BJP has a tendency to solve Kashmir problem. BJP’s self-created hysteria that it was capable of solving Kashmir problem and dealing with Pakistan has also been badly exposed, he alleged. "Situation in Jammu and Kashmir has not only deteriorated but militancy is getting revived in several areas, where it had been diminished", the Mufti observed and said that alienation was increasing among the people. "Not only Kashmiri Pandits, but political workers of other community have also started migration from some areas of Kashmir valley", Mr Mufti, who extensively toured his Parliamentary constituency of Anantnag recently, said. "There is no sign of normalcy", he opined. Referring to Union Home Minister Mr L K Advani’s achievement that Amarnath yatra had been successful this year, Mr Sayeed said "the yatra had never failed in all the years of militancy". Replying to a question, Mr Sayeed demanded that Prime Minister Mr Atal Behari Vajpayee should convene an all party meeting to work out a policy on Kashmir. "Talks with Nawaz Sharif only were not enough", he remarked. Reiterating his demand for an unconditional dialogue with Kashmiri leaders including militants, he said the gun on both the sides has failed to solve any problem. He wondered why the Centre was hesitant in talking to Kashmiri leaders when it had dialogue in Mizoram and Assam and even with Sheikh Abdullah when he used to call for plebiscite. Dialogue is the best option in a democratic nation, he asserted. Referring to a question, he said the dialogue should be unconditional on both the sides. "Dialogue has no meaning if conditions are imposed", he added. About opposition to dialogue from his own party leader Mr Maninderjit Singh Bitta, he said "there can be differences within a party on certain issues. It’s no surprise". Lambasting the National Conference Government, he said the Government was entirely dependent on security forces. The Government has no role of its own. Even in the areas where the militancy has been controlled to an extent, the Government has failed to deliver goods, he alleged. Alleging that corruption and favoritism was at its peak in the State, the Congress (I) leader alleged that about 10,000 youths have been employed as Class IV employees in different Departments on adhoc basis and then regularised by Ministers and other functionaries of the Government. "These postings have again created 1986-87 like situation when youth alienated with favouritism in postings, had taken to gun", he said Charging the Government and MLAs with trying to sabotage the Panchayat elections, Mr Sayeed said J&K is the only State where Panchayat elections hadn’t been held for last 20 years. He alleged that MLAs with "vested interests’ were sabotaging the elections as their powers will be delegated to Panchayats once the elections are held. He said the Jyoti Basu Government in West Bengal was surviving for last several years only because it has strengthened the Panchayats. To a question whether he favoured mid-term elections in Jammu and Kashmir, Mr Sayeed said "this won’t serve any purpose as election has been held recently". .Sunil, Saini, Farooq among 14 SPs
promoted as SSPs JAMMU, Dec 4: The State Government today ordered promotions of 14 Superintendents of Police (SPs) as Senior Superintendents of Police (SSPs). Postings of the promoted officers were expected to be made within the next few days. Official sources said the promotions of SPs were ordered on the basis of recommendations made by the Selection Committee. The order was issued by the Home Department today. The promoted officers include Mr Sunil Sharma, presently posted as Commandant sixth battalion JKP, headquartered at Baramulla. He had served as SP Traffic Jammu and SP Srinagar (East) before joining sixth battalion. SP Border Dr Kamal Saini is also among the promotees. Dr Saini had also served as SP Doda and SP Jammu City (South) before joining the specially created Border Police in Jammu. Sardar Surinder Singh, posted as SP CID (CI) Jammu has also been promoted to the rank of SSP. Mr Surinder Singh has also served police in different capacities including SP Rural (Jammu). Mr Farooq Khan, SP Anantnag, who had the credit of reviving police force during the peak of militancy and establishing the authority of Special Task Force (STF) in Srinagar, has also been promoted as SSP. He had recently been transferred to Anantnag from militancy-infested Doda district. Promoted officers include Mr Makhan Lal Sharma, who was posted as SP Kot Bhalwal jail after suspension of Mr Bachan Lal Chowdhary following escape of three ISI agents from the jail, Mr Bashir Ahmed Rafiqi, who was Commandant in second battalion of Indian Reserve Police (IRP) and Mr Gulzar Singh Salathia, who was transferred as SP Jammu (North) and posted as SP Badgam sometime back. Other promoted officers include Mr Ruful Hussain, SP Ramban, Mr M A Salaria, SP PTC Udhampur, Mr B A Malla, Commandant First battalion IRP, Mr Avtar Singh Bali, SP Kulgam, Mr G A Dar, Commandant 12th battalion JKAP, Mr Sham Lal Sharma, SP APTC Kathua and Mr Prithvi Raj Manhas, SP Chief Minister’s Security. ISI smuggling fake currency
to promote terrorist NEW DELHI, Dec 4: Finance Minister Yashwant Sinha today said the Government was aware that Pakistan’s Inter Services Intelligence (ISI) is patronising smugglers operating in the border areas to smuggle fake currency in order to promote terrorist activities in India. As a measure to check the menace of counterfeit currencies, the Reserve Bank of India has already issued instructions to all the banks in the country to exercise caution while examining the currency notes, he said in a written reply in the Lok Sabha. Besides, to make counterfeiting the Indian currency difficult job, the Government has now introduced new design of notes with additional security features, which were considered to be the best available in the note-printing field. Another written reply, Minister of State for Finance K M R Janarthanan said there was no proposal under the consideration of the Government to waive off the loans provided to farmers and unemployed youths. He said it has been the stand of the Government and the Reserve Bank of India that loan waiver schemes tend to vitiate the loan recovery and credit extension environment. It has been observed that such schemes frustrate the efforts of banks in realising normal recoveries and defeats the initiatives for promoting rural banking. Mr Janarthanan said a study group had been constituted by the RBI with representatives from the Institute of Chartered Accountants of India to design a separate form of balance-sheet and profit and loss account for Non-Banking Finance Companies to make their financial statements more transparent. Mr Janarthanan said there had been an increase in Non-Performing Assets (NPA’s) both in public and private sector banks during the last three years. The gross NPAs of public sector bank increased from Rs 41,660 crore at end of March, 1996 to 45,653 crore at the end of March, 1998. In case of private banks, the gross NPAs increased from Rs 1474 crore to Rs 4067 crore during the same period. The RBI does not fix any specific targets for reduction of NPAs of the individual banks, he said. He said around 3383 public sector banks branches have been fully computerised as on March 31, 1998 where as 6506 branches and 204 offices have been partially computerised. Mr Janarthanan said the Life Insurance Corporation of India (LIC) reported that it had set up an internal committee of three senior officers to examine the feasibility of LIC entering into the field of commercial banking. The Corporation will take a view in the matter, after recommendations of the committee are submitted to the Corporation. He said around 508.26 tonnes of gold was imported in the ten months of the current year on payment of duty by passengers, trade or nominated bank/agencies under different schemes. Mr Janarthanan said the total amount of Income Tax outstanding as on March 31, 1998 was Rs 21,168 crore against individuals, hufs, firms and other non-corporate assesses and Rs 20,062 crore against companies. The reasons for accumulation of arrears mainly include, the tax demands are disputed in appeal and demands are stayed under the orders of courts, tribunals and departmental authorities. The recovery of tax is a continuous process involving detailed statutory procedures. These include charging of interest, levy of penalty, attachment of bank accounts, attachment and sale of movable and immovable properties etc. Periodical review and monitoring of cases involving high demands are made by higher authorities on a continuous basis and necessary instructions are issued from time to time for effecting the recovery of taxes. Mr Sinha said the Government was aware of the shortage of coins in the country and has already taken steps to augment production and supply of coins. The mints at Calcutta, Hyderabad and Mumbai were being modernised to upgrade their capacity. As a short-term measure Government imported 700 million pieces of rupee one and 300 million pieces of rupees two last year. The same quantity is being imported during the current year and supply position will improve further. Notes in the denomination of Rs. One, two and five have been coinised. The old notes will get replaced by coins in due course, he added. Cement: The actual production of cement during 1997-98 was 83.16 million tonnes, significantly higher than the 79 million tonnes output projection made by the task force on cement industry, Industry Minister Sikhander Bakht informed the Lower House in a written reply. He added that the cement availability at present was more than sufficient to meet the demand. Foreign investments: The Government approved 989 foreign investment proposals worth Rs 24453.85 crore during the current year (upto October 98), Mr Bhakt said. This would bring in Foreign Direct Investment (FDI) of Rs 11820.89 crore, he added. Textiles: The Government proposed to set up a textiles technology upgradation fund to make available loans with interest incentives to deserving units, Textiles Minister Kanshiram Rana said. He added that textile exporters can also access imported machinery and other inputs on concessional duty terms to manufacture quality products for exports. (UNI) |