LOK SABHA

THE PRIME MINISTER (SHRI ATAL BIHARI VAJPAYEE) : The President of the Russian Federation made a State visit to India from December 3 to 5. The visit continued the recent tradition of annual summit meetings, which we have established since October 2000. President Putin called on our President, who also hosted a banquet in his honour. The Vice President, Deputy Prime Minister, Minister of External Affairs and the Leader of Opposition in the Lok Sabha called on President Putin.

President Putin and I had detailed discussions on bilateral relations and exchanged views on regional and international issues of mutual interest. These discussions reaffirmed the deep community of interests between India and Russia on a whole range of issues of mutual concern.

The wide canvas of our mutual interests is illustrated by the important documents concluded during the visit. These include the Delhi Declaration on further consolidation of strategic partnership, a Joint Declaration on strengthening economic, scientific and technological cooperation and a Memorandum of Understanding on cooperation in combating terrorism. These documents and the Joint Statement on the visit are placed on the Table of the House. Documents were also signed on cooperation in telecommunications and on intellectual property rights in science and technology. A protocol on cooperation was concluded between Karnataka State and the Samara region of the Russian Federation.

We believe that these documents will further strengthen the politico-legal basis of the multi-faceted cooperation between India and Russian Federation.

President Putin and I agreed that our two countries have to take new initiatives to boost our trade and economic ties. WE have to expand trade in high value, hi-tech items, as well as in areas such as oil and gas, diamonds, etc. Diversification of our trade basket assumes greater urgency since the quantum of debt repayment under our bilateral Rupee-Rouble agreement will fall steeply from the year 2005. At present, this repayment funds almost all of India’s exports to Russia. We also agreed on the need to increase mutual investments.

Cooperation in energy has a long-term strategic significance for both our countries. Both sides will hold regular bilateral discussions, through appropriate mechanisms, on global energy production and supplies, which impact on our energy security. Our collaboration in the Sakhalin-I project has made good progress. We have agreed to extend our cooperation to projects in other areas – including the Caspian Sea – and to other aspects of the energy sector.

We noted with satisfaction the progress in the implementation of the Kudanklulam Nuclear Power Project and recognised that further cooperation in this sector would be in the interest of both countries. President Putin confirmed Russia’s interest in continued cooperation with India on civilian applications of nuclear energy. In the joint press interaction after our talks, he expressed the view that the international regime on these matters needs reform. We fully agree with this.

Honourable Members are aware of the wide-ranging defence cooperation between India and Russia. Our cooperation now transcends a buyer-seller relationship and includes joint research, development and production. The state-of-the-art Brahmos missile is a product of our joint research and development efforts. India and Russia are now embarking on the co-production of this missile system for its induction into the armed forces of both countries. President Putin and I agreed that a number of other projects hold promise for our future cooperation.

The Delhi Declaration reaffirms that neither country will take any action, which may threaten or impair the security of the other. We have declared that both countries would be guided by these principles in their security and defence policies and military-technical cooperation with third countries. These important mutual commitments underpin the vibrant India-Russia defence relationship.

In our review of the international situation, we were of the common view that strong and sustained counter-measures need to be taken against international terrorism. The UN Security Council Resolutions against terrorism – and particularly Resolution 1373 – should be strictly implemented. As victims of terrorism having its roots in our common neighbourhood, India and Russia have a strong security interest in meeting this threat through preventive and deterrent measures, nationally and bilaterally. The agreement to set up a Joint Working Group on Combating Terrorism will further strengthen our cooperation in this sphere.

India and Russia shared concern at the continuing threat to Afghanistan’s security from the regrouping of former Al Qaeda and Taliban elements, which continue to have links with their sponsors. We expressed full support to the Government of President Karzai and to its initiatives for national reconciliation, economic reconstruction and rebuilding of Afghan institutions. India and Russia will cooperate in promoting the reconstruction efforts in Afghanistan, which should be driven by Afghan priorities. India will also continue its bilateral engagement with the Afghan leadership and further strengthen its traditional links with the Afghan people.

On the situation in South Asia, the convergence of our views is expressed in our Joint Statement. Russia agrees with our position that we can resume our dialogue with Pakistan only when it stops cross-border infiltration and dismantles the terrorist infrastructure in Pakistan and Pakistan-controlled territory.

To sum up, President Putin’s visit served the important purpose of sustaining our summit-level dialogue on the entire range of issues of interest to India and Russia. It underlined our mutual commitment to constantly strengthen our strategic partnership, to intensify our political consultations and to give a new dimension to our economic relations. It confirmed our meeting of minds on major international issues.

We will continue to attach the highest importance to our relations with Russia. In keeping with our commitment to annual Summits, I have accepted President Putin’s invitation to visit Russia next year.

Problems being faced by Indians going to and working in Gulf countries and steps taken by the Government in regard thereto

SHRI RAMESH CHENNITHALA called the attention of the Minister of External Affairs to the the problems being faced by Indians going to and working in Gulf countries and steps taken by the Government in regard thereto.

THE MINISTER OF STATE IN THE MINISTRY OF EXTERNAL AFFAIRS (SHRI DIGVIJAY SINGH) : The problems generally faced by the Indian nationals living and working in the Gulf countries, particularly unskilled workers, relate mainly to non-payment of wages, long working hours, ill-treatment, denial of leave, cheating by recruiting agents, non-fulfilment of contractual obligations, poor working and living conditions, death and disability compensation, and transportation of dead bodies back to India. The semi-skilled and unskilled workers also suffer from a feeling of insecurity on account of diminishing demand for unskilled and semi-skilled workers, and declining salary levels. There is also concern regarding rehabilitation and resettlement on their return to India in the event of premature termination of employment. Further, Gulf countries have introduced policies of localization and Arabisation which will affect the demand for Indian labour in the years to come. However, these policies are non-discriminatory and not directed at Indians specifically.

The Government of India has been taking the following measures to safeguard the interest of the intending emigrants as also of the workers who have already emigrated to Gulf and other countries for work.

All Indian Missions in the Gulf countries have full-fledged Labour Wings dealing with these problems.

It is being ensured that recruitment of workers for employment abroad is done only through the registered Recruiting Agents. When cases involving recruitment by illegal agents come to the notice of the Ministry, immediate action is taken to refer the matter to the police authorities for taking action under the provisions of the Emigration Act, 1983.

Employment documents in respect of all workers requiring emigration clearance are properly scrutinised in the offices of the Protector of Emigrants with a view to ensuring that the workers are sent abroad against genuine demands. It is also ensured that unskilled workers are allowed to emigrate only after the papers are attested by the Indian Missions abroad.

Immigration authorities have been advised through the Ministry of Home Affairs, to scrutinise the passports and other documents before allowing workers to emigrate.

As and when cases relating to harassment of workers, non-payment of salary etc. are brought to the notice of the Ministry or, our Embassies abroad, the concerned registered Recruiting Agents are advised to settle the grievances of the workers immediately. In the majority of cases, the registered Recruiting Agents see to it that the grievances of the workers are settled expeditiously. In cases where the agents do not act on the directions of the Protector General of Emigrants, their registration is suspended and further action is taken as required.

Foreign agencies which do not make the payment of salary in accordance with the agreement or fail to provide the basic minimum facilities to the workers, are included in “Prior Approval Category” (PAC) and any further recruitment for these agencies is stopped till such time as fresh positive recommendation is received from the Indian Mission abroad.

As can be seen from the above, the Government is fully cognisant of the problems being faced by Indians going to and working in Gulf countries and that the necessary steps have been taken by the Government in this regard.

Responding to the points raised by Shri Ramesh Chennithala, Shri Varkala Radhakrishnan, Shri K. Francis George and Shri K. Muraleedharan, the Minister further said : Shri Ramesh made a point that lesser number of workers from India are going to the Gulf countries at present. The fact is that the work on projects has either been completed or is nearing completion. This is why, there is need for lesser number of workers there. The second reason can be attributed to the Arabiation Theory prevalent there nowadays. According to which, priority will be given to accommodate local Arabs in all kinds of employment. Yet, the Indian work force is still in demand in the Gulf countries and is given top priority.

The second concern expressed was regarding bringing back the dead bodies of the people died abroad. In case, the employer fails to make arrangements for sending the dead bodies, the Air India and Indian Airlines jointly undertake to transport the dead bodies along with goods not exceeding 20 kg weight. The Government is, undoubtedly, leaving no stone unturned in this direction. But certain laws in force in Saudi Arabia creates some hurdles. Still, the Government of India is making all possible efforts to ensure that laws relating to this aspect are further simplified so as to facilitate the transportation of dead bodies back to the country.

Shri Muraleedharan raised the issue of maid servants. The laws of the land in vogue in the Gulf countries pose a lot of difficulties in this regard. I would like to say that the Government of India is closely and seriously monitoring the new recruitment of maid servants there. Shri Ramesh Chennithala has suggested the constitution of a welfare fund. I would like to say that the Government of India has seriously initiated action in this direction.

MR. SPEAKER : Dr. Raghuvansh Prasad Singh had given a notice of privilege on 17^th May, 2002 against the Minister of State for Planning and the then Ministers of Finance and Rural Development for allegedly misleading the House regarding financial package to Bihar.

I had called for the comments of the concerned Ministers on the notice of Dr. Raghuvansh Prasad Singh. I have since received the comments from the hon. Ministers.

It is well established that if any statement is made on the floor of the House by a Member or Minister which another Member believes to be untrue, incomplete or incorrect, it does not constitute a breach of privilege. In order to constitute a breach of privilege or contempt of the House, it has to be proved that the statement was not only wrong or misleading but it was made deliberately to mislead the House. A breach of privilege can arise only when the Member or the Minister makes a false statement or an incorrect statement wilfully, deliberately and knowingly.

On a perusal of the comments of the Ministers in the matter, I am satisfied that there has been no misleading of the House by them as alleged by the Member.

I have accordingly disallowed the notice of question of privilege. Copies of the comments of the Ministers have already been made available to Dr. Raghuvansh Prasad Singh.

Re : Reported decision of Tamil Nadu Government to divert water from two major rivers of Kerala

THE MINISTER OF WATER RESOURCES (SHRI ARJUN CHARAN SETHI) responding to the issue raised by several Members, said :

No proposal from the Government of Tamil Nadu is pending with us. So, there is nothing to be worried.

(i) Need to accord approval to gauge conversion of Rewari-Bikaner, Sadulpur-Hissar and Ratangarh-Degana metre-gauge rail lines in Rajasthan

SHRI RAM SINGH KASWAN : There has been a long standing demand for conversion of Rewari-Bikaner, Sadulpur-Hissar and Ratangarh-Degana metre-gauge railway line into a broad-gauge line. But so far this important demand has not been fulfilled due to which the local people have to face a lot of hardships. This is an important area from the strategic as well as commercial point of view. I would like to urge upon the hon. Railway Minister to take up the gauge conversion work of the above said railway lines so as to provide relief to the local populace.

(ii) Need to develop indigenous vaccine to check the menace of Hepatitis-B disease in the country

SHRI SURESH CHANDEL : There has been an increase in the incidence of Hepatitis-B disease in our country which is a matter of great concern. The main reason behind is the contaminated water and other eatables. According to a study, 5000 people fall prey to this disease every year in our country. In order to check the menace of this disease, the multi-national companies are indirectly putting pressure for making use of the costly vaccines to cure this disease. I urge upon the Government to encourage the serum institute of India to carry out research for indigenously producing cheaper version of Hepatitis-B Vaccine to suit the local climatic conditions of our country.

(iii) Need to provide relief to the people affected by drought in Singhbhum district, Jharkhand

SHRI LAXMAN GILUWA : Due to the scarcity of electric supply, my area Singhbhum is totally dependent on rain fall for irrigation purposes. There is also dearth of water for the cattle because the ponds have gone dry. Hence, in order to give relief to the drought affected people, a relief package should be provided to them. Therefore, I urge upon the Central Government to declare Singhbhum area of Jharkhand as a drought prone area and takes steps to protect the interests of its people.

(iv) Need to provide stoppage of important Express trains at Jalgaon railway station, Maharashtra

SHRI Y.G. MAHAJAN : Jalgaon is an important railway station under the Central Railway wherefrom trains run for Mumbai, Surat, Nagpur and Delhi. But the tourists have to face a lot of difficulty due to non-stoppage of many important express trains on this railway station. Therefore, I urge upon the hon. Railway Minister to make arrangements for providing stoppage of different trains at Jalgaon railway station in view of its importance in my Parliamentary constituency, Jalgaon.

(v) Need to review the decision to close Government Text Book Printing Press at Bhubaneshwar, Orissa

SHRI K.P. SINGH DEO : The Government Text Book Printing Press at Bhubaneshwar has been able to cater to the need of the printing of text books and various forms required for Orissa and Andhra Pradesh as well as the entire eastern region, i.e. Assam, West Bengal, Bihar, Arunachal Pradesh and Manipur. Once the press is closed the requirement of printing materials of these states will suffer a great setback. Besides, hundreds of employees working in that Press will be thrown out of employment. I urge upon the Government to revise its decision on the closure of the press.

(vi) Need to sanction the estimate for re-construction of a bridge at Palolipalam on National Highway No.17 in Kerala

PROF. A.K. PREMAJAM : The existing old and narrow slab bridge at Palolipalam on NH-17 is in a very deteriorated condition. Land acquisition estimate amounting to Rs.225.50 lakh for the reconstruction of this bridge had been submitted to the Ministry on 22.8.2001. But sanction has not yet been received. I request the hon. Minister of Surface Transport to examine the matter and give necessary direction to sanction the estimated cost for the work.

(vii) Need to ensure that National Highway-214 passes from Kattipudy to Ongole via Masulipatnam and Penumudi, Andhra Pradesh

SHRI A. BRAHMANAIAH : The National Highways Authority of India has planned such a coastal highway called National Highway-214 which starts at Kattipudy and touches Narasapuram and terminates at Ongole – NH-5 via Machilipatnam. But the original route of NH-214 was diverted which is detrimental to the interests of coastal area people. Hence I request that the Central Government should intervene and see that NH-214 should go through the original route, i.e., from Kattipudy to Ongole 0 NH-5 via Machilipatnam and Penumudi.

(viii) Need to open a post office at Vrindavan in district Ghajipur of Saidpur Parliamentary Constituency, U.P.

SHRI TUFANI SAROJ : There is a Gram Sabha in my Parliamentary Constituency, Saidpur (district Ghajipur, U.P.). Under the development block of Sadat, which has a population of more than 5000. In the absence of a post office in this Gram Sabha, the people have to travel approximately 5 kms. daily and reach Hurmujpur-halt for all the post office related activities. This poses a lot of hardships to them. There has been a long standing demand of the people of this Gram Sabha for setting up a post office there. Therefore, I urge upon the Government that in view of the difficulties being faced by the people of Gram Sabha, Vrindavan (development block-sadat) immediate steps may be taken for setting up a post office there.

(ix) Need for early construction of a road over-bridge on National Highway-31 at Chukti Dhala between Mansi and Maheshkhunt railway station in Khagaria district, Bihar

SHRIMATI RENU KUMARI : The construction work of a road over-bridge at Chukti Dhala (National Highway No.31) between Mansi and Maheshkhunt railway station in district Khagaria has been hindered due to the hurdles created by the bureaucracy as well as their inaction. Since dozens of trains pass through Chukti Dhala every day, the vehicular traffic remains obstructed for hours together and several kilometre long queues of vehicles can be seen on N.H.-31. Therefore, I urge upon the Government to take up the construction work of a road over-bridge (across N.H.-31) at Chukti Dhala between Mansi and Maheshkhunt railway station in district Khagaria without delay.

(x) Need to protect the interest of farming community particularly sugar-cane growers in Western Uttar Pradesh

SHRI CHANDRA VIJAY SINGH : We hear of farmers dying, committing suicide in Southern India. This trend is going to hit the Northern belt if the Government does not formulate a viable agricultural policy soon. Therefore, the Government should ensure all mills pay their dues and arrears to farmers as soon as possible. The price of produce should be increased and measures taken on a war footing to propagate production of new cash crops.

(xi) Need to ensure uninterrupted supply of electricity in Nasik district, Maharashtra

SHRI HARIBHAU SHANKAR MAHALE : A situation of crisis of electricity has emerged in Maharashtra, particularly in district Nasik. As a result of this, the farmers are in a disarray and the industry has also become defunct. Therefore, I urge upon the Central as well as the State Government to take immediate steps to ensure uninterrupted supply of electricity in Nasik district.

THE MINISTER OF DISINVESTMENT, MINISTER OF DEVELOPMENT OF NORTH EASTERN REGION AND MINISTER OF COMMERCE AND INDUSTRY (SHRI ARUN SHOURIE) moving the Motion that the Bill be taken into consideration, said: I request the House to consider and approve the North-Eastern Council Bill which has been passed unanimously by the Rajya Sabha. The Council was set up in 1972. A great effort has been made in the last four years to revive this Council and make it an effective body. This Bill was introduced in November-December, 1998. It was reconsidered in March, 2001 by the Government and it was referred to the Departmental Standing Committee in August, 2001. The purpose of this amendment is to include Sikkim in the North-Eastern Council. The North-Eastern Council should be made into a regional planning body so that the aims and objectives which Shrimati Indira Gandhi and others had at the time of setting up of the Council can be realized in a more effective manner. This Council consists of Governors of seven States. In the Sixth Schedule of the Constitution, in Assam, Meghalaya, Mizoram and Tripura, there are Autonomous Councils in the Constitution. These are all to be looked after by the Governors of the States. There are nine Autonomous Councils in these States. There are ten other Autonomous Councils under the State Acts. In those also, the Governor of the State has a special responsibility. Everybody knows that the security situation in the North-East remains tense. It has been the effort of successive Governments that the persons who are selected and appointed as Governors of the North-Eastern States are not just anybody but persons who have a special background in regard to security affairs. I commend that the House consider and pass this Bill.

SHRI K. A. SANGTAM: The North-East Council, which was formed in 1971, consists of the States of Assam, Meghalaya, Mizoram, Tripura and Manipur. Nagaland was brought under this Council later on. Most of the States being diverse ethnic groups, were taken out of the State of Assam. Therefore, the basic infrastructure had to be provided with whatever resources that were made available by the Central Government. Therefore, most of the funds given by the Centre had to be utilized for the development of basic infrastructure and consequently there was a paucity of funds for economic development, which has consequently resulted in the severe under-development of the economy of all these States. I feel pained to state that there is unprecedented raise in the resource gap during the last few years. The resource base in these states is not only small but also remained almost static. The most important cause for wide spread unrest in the North-Eastern region is the stagnant economy. The Central Government should recognize the resource constraints of the States of the region and adopt a realistic approach to overcome the problem. It is impracticable and unrealistic to expect the small States with the problems of insurgency, low levels of industrialisation, inadequate infrastructure, inhospitable terrain and negligible investment opportunities to raise resources to meet all the plan and non-plan requirements. A special financial pattern based on ground realities should be adopted for these States.

The Prime Minister convened a meeting of the Chief Ministers of the North-Eastern States on 8^th May 1998. He had spelt out a Special Development Fund for the North East. He categorically stated that 10 per cent of the budgeted amount from the other Ministries and Departments should be taken out and kept in the Central Pool for the infrastructural development of the North East. In this regard, I would like to refer to Clause 5 Section 4 relating to Special Development of Hilly and Inaccessible Area. It is often seen that the North-Eastern States, which have been created in 1971, had not been properly developed. Till today, most of the villages and blocks and even some district headquarters are not accessible by transport. Keeping in view all these problems, we have certain roads, which have been connected from Delhi to other parts of the North East. Besides that, the Prime Minister has also made a special pronouncement for linking up the entire North, South, East and West. The construction of proposed super highway announced by the Prime Minister is to be constructed right from Saurashtra in Gujarat and terminate it in Silchar in Assam. The Government of India should extend this super highway right from Guwahati to Moreh and also a branch line connecting the national highway from Moreh should pass through Nagaland. It should connect Mizoram, Tripura and Meghalaya.

Clause 5, Section 5 is regarding to provide adequate rail transport facility. Today, we have the main rail link from Guwahati to Tinsukia. For the whole North East, which consists of eight States, we have got only one rail link. I would like to propose one more rail link. Another proposal I would like to make is about the Trans-Asian Highway and Railway. The project is being considered by the United Nation’s Economic and Social Commission for Asia and the Pacific under the Asian Land Transport Infrastructure Development Project. It is imperative that the NER becomes part of globalisation perspectives. Once it is materialized, it will open up great opportunities for having a flourishing trade and commercial relations with the South East Asian Countries. North East has a tremendous potential for generation of power in the region. It can also produce extremely low-cost power. The source of power in the North East will also be eco-friendly. The cost of constructing the power projects will be much less here.

Clause 5 (vi) of the Bill refers to promotion of tourism. The North Eastern Region has a tremendous potential for eco-friendly tourist destinations. The people from our friendly countries like Thailand and Myanmar can visit the tourist destinations in the North Eastern Region at a lesser cost. The logical procedure of implementing the projects in the North Eastern Region should ensure that the sanction for all the projects are given well ahead and money is distributed before the Monsoon season starts because the North East is a monsoon prone area. There is a lot of land erosion, flooding and also silting. The roads do not last long in the North East due to heavy rain. By doing this, we can avoid cost escalation.

Since most of the States of the North East are dependent on Plan money from the Centre, it would be appropriate that the Deputy Chairman of the Planning Commission should be the Chairman of the North-Eastern Council. I vehemently object that the inclusion of the Governors of each North East State should be the Chairman of the NEC because they are only representatives of the Government of India. Since all elected Chief Ministers of the North East States represented in the Council, they are competent to table the projects and schemes and issues for the expenditure from the NEC to their respective States. Sikkim is an integral part of the North East, it has not yet been included in the NEC. I strongly support that the State of Sikkim be included as the eight Member State of the NEC. All the departments, namely, Telecom, Postal Services and other departments and Central Ministers, which are under the control of the State of West Bengal, should also be transferred to the NEC.

SHRI SONTOSH MOHAN DEV: I congratulate the hon. Minister for bringing this Bill. I think, the Government do not expect the North Eastern Region to continue with the instability and security. It might have to review the situation. The Government has started a small aircraft service from 25^th. But our demand has been that the headquarters of that small aircraft should be Guwahati and not Kolkata. The Lumding-Silchar broad-gauge conversion should be considered as a national project. More funds should be given for it. Rs.20 crore has been sanctioned for Silchar Airport, but there is a tussle going among the Defence Ministry, the Airport Authority and the Ministry of Civil Aviation. But even after nine months, it has not been cleared. If Boeing service is withdrawn and airbus is there, it will be very good. The entire overhead revenue income of Assam Government goes to the salaries of the employees. Even then they cut into these expenses. Asset-oriented schemes should be taken up.

SHRI ANADI SAHU: This Bill mostly hinges around two points that the North-Eastern Council should be re-formed and that Sikkim should be a part of the North-Eastern Council. This Council, after its amendment, will have formulating and implementing work to do. I have been associated with Assam for the last 30 years. But it is rather unfortunate that things have not gone in a proper manner to ameliorate the difficult conditions of the people living there. The non-lapsable fund that has been created has been going a long way in bringing about lots of work for these people.

The Secretariat of the NEC did not seriously undertake the main task of preparing regional plans and that was the difficulty in which the North-Eastern areas had been suffering. The Brahmaputra Board was not able to formulate its policies because of lack of supervisory control and adequate assistance from the Planning Commission. The North-Eastern Council did not develop the required expertise. Then the schemes and projects of two or more States were not clubbed together. North-Eastern States have to be clubbed together for different types of works. Unless they are clubbed together, it would not be possible to get a desired result in any way.

One of the difficulties of the North- East has been that their economic viability has been very weak, particularly in agriculture and industrial activity and this has resulted in rural poverty. Taking all these aspects into consideration, this amending Bill has been brought forward. That is why it has been a re-formed Council with a view to take up the popular sentiments.

I would request the hon. Minister to pay adequate attention to Karbi Anglong and North Cachar Hills district. Particular attention has to be paid to the autonomous councils, which have been founded by the States themselves. The issues of roads and communications need to be paid more attention. We have not harvested the water potential of those areas, which require it.

I find that the North-Eastern Council is being given teeth; but the teeth are not very sharp. The Department itself should have functioned from Shillong instead of functioning from Delhi. The screening committee should sit not only twice a year but as many times as may be possible and then give a thrust to the work that is required in those areas. This is a welcome amendment and it would definitely bring about the overall development of the North-Eastern areas, which includes Sikkim.

SHRI NIKHILANANDA SAR: From 1970s, we have said so much but have done almost nothing. We have miserably failed to develop that area up to the national standard. This region has become a paradise for terrorist activities, anti-national activities. Killing of innocent people has become very common in Assam and also in Tripura. Then, about Nagaland, we do not know whether that area belongs to our country or not because without the help of para-military forces, one cannot travel throughout that State.

There is stagnation of economy in that entire area. It requires immediate help from the Centre because that area is full of natural resources. For that reason, the need of communication should be given priority. The work of gauge conversion requires immediate attention. The number of flights has to be increased. Nine Autonomous Councils are there, but the co-ordination in the North-Eastern Region Council is a total failure. The emotional integration of these regions with other parts of the country is very much desirable. The Government should have taken steps much earlier to curb these separatist forces and to bring North-East into the national mainstream. It is strange that though huge allocations have been made, the expenditure is not done in a transparent manner. If the Central Government is eager to remove the backwardness of that entire area, the loopholes must be plugged in. Inclusion of Sikkim in North-Eastern Council is, no doubt, a good step. We urge the Central Government to connect the entire area with the national development programmes in various forms.

SHRI BHIM DAHAL: In fact, it is a red-letter day for Sikkim. Sikkim shares a number of things with the North East. I am really grateful to the Prime Minister, the Deputy Prime Minister and, specially, the Minister for the North East, Shri Arun Shourie, for bringing this Bill. I thank the Central Government and my friends from the North East, all the Chief Ministers, and the Members of the North-East MP’s Forum. With the establishment of this Ministry of Disinvestment, a majority of the works of our areas are being done now. Inclusion of Sikkim in the North-Eastern Council will greatly benefit the people of Sikkim. Our Chief Minister, Shri Pawan Chamling is trying to develop tourism, power sector and the horticulture sector in the State. He is also trying to improve the roads and bridges in all parts of Sikkim. This Ministry has really helped us in our cause of improvement of these sectors. This Ministry would not only be an ideal and model Ministry but would also be a nodal Ministry for looking after the over all development of the North-Eastern region. If development takes place in a proper way, then other problems would automatically be taken care of.

SHRI RAJMUKAR WANGCHA: I welcome the inclusion of Sikkim in the North-Eastern Council. This Bill was long overdue. As a Member of the Standing Committee that went into the various provisions of the Bill, we have expressed our concerns on certain matters. One of the areas of concern was the security role of the North-Eastern Council. North Eastern Council, since its inception has never played a role in the security matters. This Council has been there since 1971.

In the State of Nagaland, for the last forty-fifty years we have been facing a lot of law and order problems. In Assam, in Tripura and Manipur also we have had a lot of law and order problems as well as insurgency. We felt that the relevant provision in the principal Act has remained dormant for the last thirty years. That is the reason why we have suggested that the Council should be divested of its security role. The executive power is not conferred on the NEC. So, I would strongly feel that we should confer executive powers to the NEC so that proper implementation of those projects and schemes takes place. I would like to see all the Northeasters States as a whole to develop.

We should try and explore possibilities in the field of power. It is not necessary that the North Eastern Council should spend the money equally in all the States. There should be a proper coordination among the various heads of the States to see that those areas are being appropriately explored. We do have the tourism potential. But how many infrastructure have come up in the last 50 years? I feel that the North-Eastern Council has a greater role to play. I feel that the North-Eastern MPs’ inclusion would play a more positive role to bring the North-Eastern States together in the mainstream.

SHRI SANSUMA KHUNGGUR BWISWMUTHIARY: I would like to thank the hon. Minister and the Government of India for bringing forward this Bill to get it passed in this august House. However, I have seen some weaknesses, lacunae and shortcomings in this Bill. The MPs from North-Eastern states have been left out in this Bill. This is a very serious lacunae and shortcoming in the Bill. Until and unless the Members from the Bodoland Territory Council and the North Cachar Hill Autonomous Council, and Karbi Anglong Hill Autonomous Council are included, the problems of those regions can never be dealt with in a proper way. Bodoland region, particularly, the entire Northern Brahmaputra valley and some other tribal dominated areas have been very badly discriminated against in all the spheres of development activities. Because of that reason, the Bodoland demand has come up and vigorous movement is still going on.

Coming to my Bodoland Territory, there is no good road communication, no infrastructure, in fact nothing has been done. Two major irrigation schemes were undertaken by the Government of India. These schemes have not been completed as yet, even after a lapse of more than 25 years.

I would appeal to the Government of India to revoke the earlier decision which was adopted in regard to Kokilabari Central State Firm and to restore it without further delay. I would like to request the Government of India to sanction a Central university for the Bodoland territory. My humble and strong request to the Government of India is to take a concrete policy decision to bring about a lasting and honourable political solution to the burning Bodoland imbroglio without further delay.

DR. RAGHUVANSH PRASAD SINGH : I would like to draw the attention of hon. Minister towards the words `Person or Persons’ mentioned in sub section (1) of section 1 of Clause 3. The word `Persons’ seems to be irrelevant here. Earlier, an amendment was brought in the Bill that the Governor shall not be a member in the Council but now an amendment that the Governor shall be a member to the Council has been brought. Not only that the Chief Minister was not a member earlier but now he has been included. I want to know as to why MPs have been excluded from the Council. There are 25 Members of Lok Sabha and 11 Members of Rajya Sabha from the North Eastern State. All the 36 Members reached on a consensus that the Governor should not be made a member in the Council. They also demanded to include 8 Members in the Council i.e. one Member from each State. I want to ask the Government as to why they have neglected the demand of elected representatives.

Sikkim is number one state in the matter of maintenance of law and order. There is only one N.H. for Gangtok. In case of landslides it gets completely cut off from other parts of the country. Why not the Government bring a proposal to construct an alternative highway. There is a long pending demand for construction of an airport there. The country is endowed with vast potentiality of power. All the eight States of North Eastern region have a total potential of 1.5 lakh MW. They also have schemes of 2.5 thousand MW. Why these projects are not being given priority? I would like to draw the attention of the Government that if the potential of hydro-electricity and tourism is not tapped there, the pace of development of North Eastern States would recede. There should be proper monitoring so that the North East Council works properly. There are approximately 45,000 villages in the area. If the villages are not developed properly and the heritage and the culture of the villages are not maintained properly, the objectives of this Bill will not be fulfilled.

SHRI VANLAL ZAWMA : While supporting the Bill, I would like to point out only two or three aspects. The first point is that no MP is included in this Council. I would like to request the hon. Minister to include one MP from each State of that region. That would solve the problem. As we all know, the final decision is taken in Delhi. In order to represent the North-Eastern States, inclusion of MPs in this Council is very important.

Mizoram is a small State. Most of the North-Eastern States are having three or four international borders as their boundaries. So, I would like to say that in order to develop the North-East, especially Mizoram, three things are very important. The first is road communication. It is a hilly area. It is difficult to lay rail-roads. So, the road communication is very important. My other point is about the electric power. We have enough rivers and enough potential to generate electricity. So, steps should be taken to see that electricity is generated in this area. In order to sell all our products especially the agricultural products to other parts of India and other markets, we have to carry to the northern corner of our State. At present, we have to depend on the other States. Since we are a landlocked State, in order to develop Mizoram, we have to open up our border trade with our neighbouring countries.

SHRI P.H. PANDIAN : The Government has ignored the recommendation of the Standing Committee of Home Affairs by not accepting to nominate Members of Parliament from each of the North-Eastern States to be members of the North-Eastern Council. So, I would request that the Standing Committee’s recommendation should be incorporated in the Bill at least in a future amendment. This Bill is meant for the development of the North-Eastern Region. So, why should the Governor be included as a member of the North-Eastern Council? The Governor is the overall constitutional head of the State. The Government can bring forward an amendment saying that MPs also be included in the Council.

SHRI ARUN SHOURIE replying to the discussion, said : All Members have supported the Bill. I will quickly reply to all points. The Chairman of the Standing Committee, Shri Pranab Mukherjee also supported the Bill warmly.

A point that has been made is that security should be deleted. Governors should not be included. I have already explained why we had led to the conclusion that Governors should continue as they have done since Shrimati Gandhi set up the Council.

The second point which was made very effectively was on the Chairmanship of the Council that the Chairmanship should be with the Deputy-Chairman of the Planning Commission or with the Minister concerned and so on. But actually, a person who is there on the spot is very necessary. I have seen that one of the most effective ingredients in reviving the Council has been that Gen. Sinha, posted there, has been able to devote his time frequently to affairs of North-East Council and thereby we have been able to resurrect. The Headquarters of the North-East Council being in Shillong and the Deputy-Chairman being in Delhi, files travelling here even for postings and so on will become a great problem. Our common objective is to expedite implementation and decision making. I can say with great pride that your Chief Ministers today appreciate this work that there is not a project which is loitering around among different Ministries in Delhi. The Finance Minister, in the First Supplementary Grants, gave us Rs.200 crore and within one week of the money being available, it was all not just sanctioned but disbursed to the North-Eastern States. I share with you the anxiety that we must get clearances made more expeditiously, but the remedy was not to appoint one person rather than the other as the chairperson. The Standing Committee endorsed the official amendment given notice of by the hon. Home Minister, which provided that the Chairman of the Council was to be nominated by the President. In this regard, the Committee considered the suggestion that Deputy-Chairman, Planning Commission or Union Finance Minsiter or Union Home Minsiter or Union Minister for North-Eastern Region should be nominated as the ex-officio Chairman of the Council. The Committee was of the considered view that the nomination of the Chairman of the Council should also be left to the wisdom and discretion of the President.

Another point that was made by distinguished Members from that region and also others was that the executive powers should be given to the North-East Council for implementation. I would say that the kinds of projects that are being taken up are diverse. In Mizoram alone, probably 25,000 MW potential is there. It is a regret that only 1.5 per cent of that potential is being utilised. There is allocation for power, roads, railways and various such things. Power project has to be taken if the executive or the implementation responsibility is to be given to the North-East Council. The North-Eastern Power Corporation is then set up for this purpose. The National Hydel Corporation is better equipped. For that reason, it should remain as it is, and it should work through the best possible implementation agencies.

The Member from Mizoram was just telling about the importance of roads and linking the district headquarters with the State capital and the difficult terrain. Work is being done under very difficult circumstances today by the Border Roads Organisation.

Shri Santosh Mohan Dev spoke about air links. It has been a crying need there. I have found that there are more airstrips and aerodromes than airplanes in the North-East. For that reason, from the North-Eastern Council, we have given a subsidy of Rs.35 crore every year to Indian Airlines so that four 50-seater planes could be hired as a taxi service, which would operate only in the North-East. I hope, all of us would raise our voice against violence. You would see that the kind of attention being paid to the North-East now has never been paid.

The question of inclusion of MPs is an important one. We had deliberated over it for a long time. If we have sixteen members as at present, plus eight MPs and three members nominated by the President, it would become a 27-member Council. As an executive body, it becomes very difficult for the body to function. We are trying to make it function more efficiently. The Chief Ministers themselves are also equally representative of the people.

SHRI K.P. SINGH DEO : This is the second batch of Supplementary Demands for Grants (General) for 2002-03, which includes 37 Grants, an amount of expenditure where the approval of the Parliament is sought is for Rs.9,045.05 crore. We do not have a credible, a deterrent defence. The atmosphere is such at the moment that whatever we are passing in the Parliament is not fully spent. Last year, we passed Rs.72,000 crore. An amount of Rs.8,000 crore out of it could not be spent by the Ministry of Defence. So, what is going to happen to our defence? If our national security is at stake, I do not know how are we going to have national development or economic development.

Only recently, the Standing Committee has brought out a report on the accidents of IAF aircrafts. Only day before yesterday, we were debating it in the Standing Committee. The Ministry of Defence tell us that in the last ten years, 109 MiG aircrafts have crashed and 39 pilots died. The figures with the Standing Committee are much higher than what has been given to us in the meeting. The fact is that people are dying; Jaguars are crashing, MiGs are crashing and Committees are being appointed. But the accidents have not stopped. We are yet to induct the state-of-the-art advanced jet trainers for our pilots and we keep on losing both aeroplanes – machine and men at considerable cost to the exchequer as well as human life and as well as human training. Today, the Alliance Air is flying those moth-eaten Boeing-737 aircraft which are 22 years old. In the last one month there have been six incidents/accidents. Now we are playing with the lives of the passengers as well as the youngsters who are flying them. The Kelkar Committee had given Rs.325 crore. I do not know why the Government is not inducting the modern fleet.

Even in the airlines sector, this time when the troop mobilisation was effected by the Government consequent to the attack on Parliament, it is these motheaten aircraft which took bulk of our forces to the borders. So are we being fair to them? In Vayudoot and in Pawan Hans, we know engines used to fall out, doors used to fall out. Therefore, are we going to repeat that?

Former hon. Finance Minister, Shri Yashwant Sinha in one of his Budget Speeches had spoken about bringing a Fiscal Responsibility Bill. So, I would like to know what happened to that because fiscal deficit has gone up to more than 10 per cent and subsidies have gone up to 63 per cent.

Orissa is surplus as far as rice is concerned, but for the last three years, there have been drought, flood and cyclone. In 1999, there was a super-cyclone but because our Relief Code does not have the word ‘national’, we could not declare it a national calamity. Therefore, Orissa lost out. Had it been declared a national calamity, State would have got 90 per cent grant and 10 per cent loan. For the last 30 years every Government of Orissa is raising the vexatious problem of declaring Orissa a special category State. But the definition cannot be changed by this great Parliament. I appeal to the hon. Finance Minister to declare Orissa a special category State. About KBK districts, late Shri Rajiv Gandhi first made announcements and these were reiterated by Shri P.V. Narasimha Rao, and now it has been re-reiterated by Prime Minister Shri Atal Bihari Vajpayee. The core of this KBK concept is monitoring, implementation as well as investment. However, in the last one year, all the meetings were cancelled by the Government of Orissa. Today, in Kashipur, Kalahandi and Keonjhar districts, there are piles of foodgrains, but yet, there are piles of dead bodies a few hundreds metres away. But still we are not admitting the starvation deaths.

I complement Shri Shanta Kumar for his new innovative scheme ‘swajaldhara’ where the community pays ten per cent, and the rest of the money is given by the State Government. I hope, it becomes a success.

Economic development can take place only in an atmosphere of safety. The people who give us safety are the Service people and the Ex-Servicemen. So far as the Ex-Servicemen are concerned, they are still agitating on ‘One Rank, One Pension’ and it will cost the exchequer only Rs.531 crore. As far as the medi-care and Ex-Servicemen Commission are concerned, let me inform the hon. Minister that today an Ex-Serviceman has to pawn his pension papers to get a loan.

Last time, the hon. Minister was kind enough to say that the custom tariff that was applicable to sports organisations, would be restored for water sports. But I am sorry to say that the orders for this have not yet reached the concerned organisations.

Further, domestic bad governance cannot be controlled by giving a free hand to market forces and selling off the public sector undertakings. The Indian Express says that in Orissa only 34 per cent of the cyclone relief fund has been utilised by the Government. Therefore, while making reforms, we should not know only the prices of goods but we must know the value of human lives.

SHRI THAWAR CHAND GEHLOT : The Government have made many efforts to improve the economy of the country and to some extent it has succeeded on this front and investment has also been made in the basic infrastructure of the country. A provision for seeking funds for the development of North-East Sector has also been made in the Supplementary Demands for Grants. Of course there is a need for the proper development of North-East States. Councils have been constituted there and Centre provide funds to them for this purpose but the funds are not utilised properly. The Government have made efforts in this regard also. Movements have also been launched for the development of North-East States. Keeping in view all these things, the provision for providing funds has been made. Further many Central schemes are being implemented for the rural development. Centre provide funds for this purpose.

Today, many schemes like Pradhan Mantri Gram Sadak Yojana, Pradhan Mantri Gramin Rojgar Yojana, Food for work etc. are being implemented in the rural areas. Additional funds are required for the proper utilisation of these schemes. Moreover, there is a provision for providing funds to strengthen the security arrangements around Parliament House Complex. Funds have also been sought for the empowerment of women and to solve their problems. In addition , provision has also been made to propagate the informal education. There is a need to propagate the education in the country. Provision has also been made for this purpose in the Supplementary Demands. It has been clearly mentioned in the Article 45 of the Constitution of India that free and compulsory education be provided by the Government to the children up to the age of 14 years. Therefore, the Government have made arrangements for this purpose by making amendments in the Constitution. The Parliament has passed this Bill and it would be implemented from the next academic session.

There is acute shortage of electricity in the country and today there is a big gap between demand and supply. The Union Government have made provision to provide financial assistance to the thermal power for the electricity generation so as to mitigate this gap. Urban development scheme is also being implemented in the entire country. I request the House that Supplementary Budget, prepared with good intention be passed.

SHRI MOINUL HASSAN : There are 37 Grants belonging to different Ministries. But I would straightaway go to Demand No.67 pertaining to the Department of Rural Development. On drought, we have already discussed at length in this very House. Everybody knows that there are mainly 14 States which have been very badly affected by droughts. In West Bengal also, there are three districts, namely, Bankura, Purlia and Midnapore which have been affected by droughts. Requirement of sufficient food grain is very necessary. In the same way, potable drinking water for the common people is also very much required throughout the country. There is very insufficient potable drinking water in the country. Arsenic-free and manganese-free water is required. So, sufficient funds should be allocated to the State Governments.

We are very much aware about the fiscal positions of different States of our country. We are very much concerned about the dismal performance of the State Governments throughout the country. They are not in a position to face the natural calamity. Every year, they have to bear with either drought or flood. Adequate fund is not being provided to the States out of the National Calamity Fund. In the year 2000, there was flood in West Bengal, which was considered as a national disaster. We demanded from the Centre Rs.1487 crore for relief and restoration work and we were provided with only Rs.103 crore. The State Government was forced to take loan of Rs.1,173 crore from HUDCO at high rate of interest. We have been regularly raising in this House the erosion problem being faced by the State of West Bengal, particularly in three districts of Murshidabad, Malda and Nadia and other seven to eight districts. No additional provision has been made to face this problem. I demand additional Central Assistance to face the riverbank erosion problem caused due to rivers Ganga and Padma. The Government of West Bengal will do its best to solve the problem but without the help of the Government of India, we will not be in a position to solve this problem. I would like to say something about the financial position of our country.

There is still recession. This year, GDP growth will be 5.5 per cent. The Tenth Plan has projected the GDP growth rate to be eight per cent with the inspiration of the hon. Prime Minister. There is no sign of improvement in the investment. The same recession is going on in the domestic capital market. The Foreign Direct Investment is not good as compared to the previous year. The expenditure is growing. This is not a sign of good governance.

SHRI ARUN KUMAR : Even after many years of Independence the condition of villages is deteriorating day by day. Schemes are being chalked out for the rural areas and agricultural labourers. But they are not being implemented properly. That is why, there is a great difference between the prices of agriculture produce and factory produce. Under the able leadership of Prime Minister, Pradhan Mantri Gram Sadak Yojana has been formulated. Central schemes like Education For All are not being implemented at all. Even after a lapse of three years, the tender has not been floated for the first phase of the Pradhan Mantri Sadak Yojana in Bihar and the Government are not taking any action.

Northern Bihar has been devastated by flood and this issue is discussed every year in this House. Thousands of farmers came here to project their condition but they got ill-treatment in Delhi. The education is the backbone of democracy but no concrete effort has been made in that direction. Therefore, we would like to submit that if the Government take tangible steps in the field of education, health and roads, it would be in the interest of the people of the country. Funds are spent under the schemes but the people do not get benefit as there is no monitoring system. Utilisation certificate is sought but monitoring is not conducted whether or not these funds have been utilised properly. Even after 50 years of Independence a poor cannot construct a house.

Poor people from all over the country go to All India Institute of Medical Sciences but they are being exploited in the name of pathology tax. They are not treated at all there. Moreover, they do not get benefit of the costly testing machines like Endoscopy, X-ray, etc. Private agencies are functioning in AIIMS. Therefore, the Government should seriously consider about the health, education and basic problems like electricity and water etc. of the farmers. Monitoring system be developed for the schemes which are being implemented by the Government. Poor labourers are being exploited through the liberalisation. Farmers are not getting fertilisers electricity and water and they are being grossly neglected. The Government should pay special attention towards it. Sugarcane growers are forced to burn their produce which results in acute resentment among the farmers. With these words, I support this Budget and submit that the Government should reconsider it.

KUNWAR AKHILESH SINGH : Uttar Pradesh is the biggest State and Poorvanchal is its heart. Gorakhpur fertiliser factory is lying closed for many years but there is no provision in this budget to revive it. Prime Minister had promised in his election meetings that this factory would be revived. In the same way, Barauni and Sindhri factories are lying closed. But the Government have not made any efforts for their revival. The Government have sought Rs.438 crore to offset the scam in UTI. But there is no provision in this Budget for the protection of paddy and sugarcane growers.

Joint Parliamentary Committee has been constituted to probe these share scam. The Government have given additional powers to SEBI and despite that home trade scam has occurred. The Government have sought Rs.7319 crore for the computerisation of Income Tax Department. This department can recover thousand of crores of rupees, outstanding against the industrial houses. But they have nexus with corrupt income tax officer and these officers are giving them protection. There is a proposal of Rs.260 crore for Food for Work programme and Rs.3546 crore for Sampooran Gramin Rojgar Yojana. It is a welcome step. But the 50 per cent of the funds provided for this purpose in Bihar and Uttar Pradesh is not being utilised on these schemes. It is the responsibility of the Government to ensure that whether or not the funds provided by the Government are being utilised properly. The States are not following the directives issued by the Government of India regarding Pradhan Mantri Gram Sadak Yojana.

I would like to remind one thing that in 1998, when Eastern Uttar Pradesh and Bihar were facing the problem of flood, at that time Shri Atal Bihari Vajpayeeji visited Gorakhpur and assured that a lasting solution would be found out for this problem. Even after passing four years, this promise has not been fulfilled. There is a regional imbalance in the country today. The Government should take effective steps to remove it. If it is not done, the youth of other parts of the country would stray away like the youths of North-East States and Kashmir. To give incentives to agriculture is the only alternate to provide employment.

BJP had made promise to provide employment to one crore people every year in its manifesto but that assurance has not been fulfilled. If the Government intend to bring prosperity in the country, it would have to remove regional imbalance and for that purpose, it would have to accord top priority to the villages. There is no provision for the farmers in this budget. The farmers have been overlooked grossly. Hence, I oppose these Supplementary Demands.

SHRI K.H. MUNIYAPPA : The rural banks were started by Shrimati Indira Gandhi to protect the interests of farmers and agricultural labourers. These have been converted into commercial banks and shifted to the towns. Shrimati Gandhi had made it clear that the rate of interest should not be more than 10 per cent. Now, the prevailing lending rate of the rural banks is between 15 to 18 per cent. In such a situation, how can you expect these banks to protect the interests of farmers and the agricultural labourers. The dream of Mahatma Gandhi was to make the villages of our country self-sufficient. Mahatma Gandhi had clearly said that until and unless you give freedom in a real sense to the villages, getting the freedom by us would have no meaning in this country. The first Prime Minister of India, Pandit Jawaharlal Nehru also took care especially of the farming community, that is, those who lived in the villages.

Today, because of the liberalisation policy, the farmers in the villages and the people working in the cottage industries have not been able to get remunerative prices. They have not been able to get even what they have invested in such industries. The reason is that other countries like China are dumping goods at much cheaper rates. Our producers are not able to sell their products. The disinvestment would ruin the country. They are selling away the whole property built after the sacrifices made by the people in this country. This type of situation has been created by the NDA Government. As far as our products are concerned, we are producing silk in Karnataka and other parts of the country. There is a requirement of 16,000 metric tonnes of silk in this country. We are producing 10,000 metric tonnes. More than 15,000 metric tonnes of silk is being smuggled into our country. There are more than one crore people involved in producing silk in various parts of the country, like Assam, West Bengal, Tamil Nadu, Karnataka and Andhra Pradesh, and because of this smuggling they are suffering. I would, therefore, request the Government to stop this dumping and smuggling of silk into our country. Otherwise, the silk farming community will be ruined. This is a very bad situation in the country. Therefore, I would request the Government to take immediate steps to improve the situation of the silk producing farmers.

With regard to the drought situation in the country, I would like to state that linking of Cauvery and Ganga will solve the drought and flood situation in the country. Today, we have to very seriously thing about this. There are more than 20 States, which have been affected by drought. I would like to know from the Government what is its programme for controlling the drought situation. We have also to think of providing food to the poor people. I would like to know what measures this Government proposes to take to solve this problem. We would like to caution this Government that unless corrective measures are taken, there will be serious problems in the future. The drinking water problem is the most important problem and we have to think about it seriously. The State of Karnataka has asked for 20 lakh tonnes of foodgrains, but only 2 lakh tonnes have been given to us. I do not mind for giving more 20 to 40 lakh tonnes of foodgrains to Andhra Pradesh, but there should be no discrimination between the States. I would also request the hon. Minister to make a comprehensive programme to face the drought situation in the country before the next rainy season so that we do not have to face that problem again.

DR. RAGHUVANSH PRASAD SINGH : Today the States are facing grave financial crisis. I would like to know from the hon. Minister as to what steps have been taken to improve the financial condition of the states. The states had to implement the revised recommendations of the Fifth Pay Commission which led to the further deterioration of financial condition of the states. The Bihar is worst hit on account of the bifurcation of state. The people of Bihar are being treated with as the enemies. The Bihar has not got its dues amounting to Rs. 625 crore for four years i.e. 1997-98, 1998-99, 1999-2000 and 2000-2001.

We have received the amount for one year only, as part of the recommendations of Tenth Finance Commission and the amount for three years have been withheld. It is quite strange that Jharkhand did not hold any election in the state still it was allocated funds, while the Bihar was deprived of its due share. We demand that the outstanding amount should immediately be paid to the state. Power Grid Corporation has formulated a scheme, however in absence of transmission facilities, the electricity supply cannot be ensured. I would like to ask the hon. Finance Minister as to when this work would be taken up as any delay in the work is an injustice to us. Likewise, Thermal Power Project at Nabi Nagar is also not being implemented. Bihar is not getting funds for the rehabilitation of slum dwellers. Project for Patna city amounting to Rs. 1600 crore is also pending with the Government which need to be cleared. I demand that all outstanding amount should be released to the state at the earliest. The bridge at NH-77 is in a dilapidated condition, hence the Government should allocate funds for its construction as well as for the maintenance of roads.

There are five factors for a state to be declared as special category state: that the state is in financial crisis, it is a border state, its geographical conditions are adverse, it is a hilly and mountainous region and it is inhabited by Scheduled Caste people. Since Bihar qualifies all these conditions, it should be declared a special category state. It is unfortunate that it has been deprived of Rs. 1500 crore under Centrally Sponsored Schemes on technical grounds. Bihar should get its share of Rs. 500 crore under agriculture head.

THE MINISTER OF FINANCE AND COMPANY AFFAIRS (SHRI JASWANT SINGH) replying to the discussion, said : I am grateful to the hon. Members for their contributions. I must make it very clear that these are Supplementary Demands and this is not a Supplementary Budget, and these Demands for Grants are for just over Rs. 9,000 crore. But of this amount of Rs. 9,000 crore, the cash outgo aggregate, in effect, really would be just about Rs. 5,000 crore because the balance has been met from savings within the already approved Demands and through the recoveries and receipts.

The Supplementary Demands for Grants is not an unusual methodology being adopted by this Ministry or by this Government. It is a methodology that is adopted by every Government. There are normally three Supplementary Demands to meet the budgetary cycle. Shri K.P. Singh Deo spent a lot of time on Defence and national security and the Defence budget. We will have enough opportunity to discuss the Defence budget at the appropriate time. As regards the question of Fiscal Responsibility Bill, as soon as we have the Fiscal Responsibility Bill fully commented on by the Ministry of Finance, this too shall come here. On the Customs Duty exemption, we had a discussion. The customs duty exemption to water sports equipment has already been provided for canoeing, kayaking, roving, yatching and water polo. I did give an assurance and the assurance was fulfilled. He knows very well and we know that to a large extent, the Government has already accepted and implemented the principle of one-rank-one-pension. The Fifth Pay Commission also adopted the whole principle. In about 260 districts of the country, we will be having facilities for medical treatment of all Ex-Servicemen. So far as providing tax exemption to the Services Sports Control Board is concerned, I see no difficulty at all, if any such request comes to me from the Services Sports Control Board.

We are facing the ills or the problems on account of the recommendations made by the Fifth Pay Commission. The consequences of the recommendations of the Fifth Pay Commission, much more than the Centre, the States are having to face. I would like to appeal to the hon. Member, Shri Moinul Hassan not to charge dereliction of duty on the part of the Central Government for the financial difficulties that the States are currently facing on account of the recommendations of the Fifth Pay Commission. He also spoke about need for water. We have announced a scheme for purification of water, for water de-fluorisation, for treatment of water and for de-salination. Anybody setting up a plant shall have cent per cent tax exemption and he will also have cent per cent depreciation on machinery. There will be no customs duty on whatever machinery is required to be imported and there shall also be no excise duty. It is not any one person who can resolve the water issue.

The question of differential interest was raised. This differential is there to meet the currency fluctuation liability, particularly in foreign loans that are obtained. Central Government also meets the requirements of the special category States where 90 per cent is grant and only ten per cent is loan. The differential rate is not ever more than three per cent in loan. By and large, this scheme has worked satisfactorily.

About calamity, there is CRF and the NCCF which is really for calamity. The hon. Member said that there was a slow down. How can any political party say that it is not for economic development or growth? In this federal structure, it is not possible for the Finance Ministry to function as if the interests of the States of the Union are not of very much concern of the Ministry of Finance.

I think the whole question of plantation industry, including the tea industry in Assam and in Cachar, is a matter of concern at the moment. So, in the plantation industry which covers coffee, rubber, tea, arecanut – we took various steps in that regard including on silk. Silk already attracts a peak rate of basic customs duty at 30 per cent. The cumulative duty, at the moment, in fact is between 35 per cent to 36 per cent. Silk is not being imported. About tea, Rs. 500 crore Plantation Modernisation Fund has already been announced.

So far as the question of steps taken to improve the financial condition of states, is concerned, I have been holding meeting with the Finance Minister of the States wherein, we have chalked out a five point programme. We should see to it that those are implemented. However, the cooperation from states is also desirable in that regard. So far as payment of outstanding amount to Bihar is concerned, we have made payments of outstanding amount to Bihar. No amount whatsoever would be withheld. We would certainly like the power grid proposal to be implemented. I would like to assure Shri Raghuvansh Babu that no discrimination would be made against any project in respect of Patna.

So far drought situation is concerned, in the country fourteen States have been declared as drought-affected States. All steps have been taken. Further steps would be taken. On the question of drinking water, we are very mindful. The water shortage is due to over withdrawal from ground water sources, drying up of resources, inter-State difficulties in regard to sharing of water. I know that the Prime Minister is examining the total question. He is shortly going to share it with the country. The Government have announced a scheme for encouraging purification, desalination and defloridisation of water. This is the difficulty that we currently face throughout the country. So far as addressing ourselves to this issue is concerned, we have been doing that consistently.

There was a mention here of banks not giving loan or not implementing what has been said. I will look into it. The issue relating to pension has also been raised. I will try to find a solution to it. On the question of the bifurcation of Bihar and the consequent difficulties that have arisen in Bihar, it is yet again a subject that has to be initiated by the State Government.

Note : It is the verbatim Debates of the Lok Sabha and not the Synopsis that should be considered authoritative.

LOK SABHA

(vii) Need to ensure that National Highway-214 passes from Kattipudy to Ongole via Masulipatnam and Penumudi, Andhra Pradesh