(Interruptions)

[English]

SHRI SOMNATHA CHATTERJEE (Bolpur): Madam,some people have no sense of shame or guilt. They have destroyed the Mosque at Ayodhya.Now they have the temerity to speak here(interruptions) MR. CHAIRMAN: Shri Peter G.Marbaniang.

SHRI PETER G. MARBANIANG(Shillong): Madam Chairperson .the speech of our Finance Minister, Shri Manmohan Singh, on 27th February 1993 while representing the Central Government Budget for 1993-94 was well receive,by a all section of all people and by all our national and regional press. Almost all the news -papers had praised there different aspects of the Budget in their news coverage on Sunday the 28th February993.The Sunday Times of 28th February had don't pages the items as, growth Budget floats rupee freely, and had called the Budgets 'Reform with human face'.

I, too congratulate the Finance Minister for the bold steps he had taken to boost economic growth and employment and to reduce the fiscal and foreign exchange deficits and to curb inflation. He has, further, erased doubts about the further reforms by liberating imports and making the rupee fully convertible on the trade

553 General Budget 1993-94

accounts,.The Union Budget for 1993-94has also been hailed as 'growth- oriented'and'investment . friendly'(substantial increase of 32 percent in plan investment) as the Budget has met most of the demands of trade and industry. The main.

MR. CHAIRMAN: Shri Marbaniang, please wait for a minute.

THE MINISTER OF STATE IN THE MINISTRY OF HUMAN RESOURCE DEVELOP- MENT (DEPARTMENT OF YOUTH AFFAIRS AND SPORTS)AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY ,AFFAIRS(SHRI MUKUL WASNIK): Madam Chairperson,we have already lost lot of time on discussing other issues.Several Members want to participate in the discussion on the General Budget.I would request the cooperation of all the Members here.Because of the importance and the interest of the Members to participate in this discussion, we may continue to sit beyond 6 P.M./today.

[Translation]

[English]

SHRI SRIKANTA JENA(cutack): How long the discussion will continue Monday may plase be fixed as last day(Interruptions)

SHRI MUKAL WASNIK :This discussion will continue till Friday. If possible, the hon. Finance Minister may reply on Friday. Or, as decided in yesterday's BAC, the Finance Minister may reply on Monday.

Therefore, we have to complete the discussion in any circumstances by Friday. The discussion has to be completed by Friday and the Minister may reply on Monday.

SHRI PETER G. MARBANIANG:The main highlights of the Budget are a big boost to development expenditure, a step up in social sector outlay, a reduction in budgetary deficit, a unified exchange rate. a reduction in custom and

General Discussion 554

excise duties ,are forms in banking sector and capital markets, a reduction in interest rates, a measure to stimulate exports as every dolor earned will yield more rupees, a special attention to revitalise the agricultural credit system, The Budget has also taken into account that economic growth alone will not be enough to bring relief to the poor who have been hit hard by inflation and recession in the last two years of 1991 and 1992 and as such the Budget has provided a big push to rural development and employment generation programmes and also to social sectors like health and education. The adjustment programme can no longer be criticised on the ground that it does not have a human face.

17.00 hrs

I welcome para 56 of the Finance Minister's speech at page 19 where here commends to give a stimulus to new investment in these States in which all the Districts are industrially backward. I congratulate the proposal to give a five year tax holiday commencing from the year of production for new industrial undertakings located in all the North eastern states and other States mentioned there in.

Madam, these are few basic assumptions for industrial growth viz normal law and other situation, presence of basic communication services, presence of capital finance market to mobiles large funds for investment presence of industrial culture and foresight, presence of technology, presence of electric power and a strong science and technology)"base. These are few essentials pre-requisites for a modern progressive economy. However, all these prerequisites are not available in the North Eastern Region. We do not have normal law and order situation. We do not have power supply to all the villages. We have very bad communication. We do not have railways and water ways except for Assam All the North Eastern States are landlocked. That is why. the financial market is also very shy and also the bank deposit in the North Eastern States is very small. (Interruptions). It 555 General Budget 1993-94

[Shri Peter G. Marbaniang]

is a shame that since Independence, the railways of broad gauge meter has been able to come only up to Guwahati,and beyond Guwahati, we do not have broadgaige lines. Most of the roads that exist are fair weather roads. Therefore, we can not compare North Eastern states with the rest of the India.

The substantial public sector investment has never come to the North Eastern Region. We are yet tog learn about the culture of industry. We are mostly farmers; farm oriented in our North Eastern States. I will give you on example. The Digboi Refinery is the oldest refinery in India and it is still operating is the oldest and must expensive productive unit. The Guwahati Refinery produces 8 lakh tonnes of oil annually and it is also the most expensive productive unit where as the Mathura Oil Refinery produces only 90 lakh tonnes of oil annually with latest technology in oil.We have a refinery with 8 lakhs annually. No substantial public investment has taken place in the North Eastern States. We are also a part of this great nation of ours.As such, I would request that the policy of liberalisation does not mean that everything will have to depend on private investment in the North Eastern Region.We shall nokmt be able to come forward,we shall not be able to grow along with the rest of India.

Road communications are yet to be developed in many areas of the North-Eastem region. You know that we have struck oil in Meghalaya in the Mawsynram Develop-ment Block area. But till today, there is only a fair weather road to go to area where oil is struck.

Then, Sir, as you know, uranium deposits have been found in the western sector of khasi hills in Meghalaya. There again, unfortunately, we have only a fair weather road which goes there, How shall we develop, how shall we generate resources and how shall we invest then? We are lacking the infrastructure. Therefore, the extension of a five-year tax holiday in. the North Eastern region does not and will not

General Discussion 556

bring extensive and immediate investment in the North-Eastern region.

Take Arunachal Pradesh, take Assam, take Tripura, take Mizoram, take any State, you will find that they are all lacking in the essential infrastructure.

We have in the North-Eastern region what is know as the North- Eastern council where common projects of Big investment are being taken up, be it in roads, be it in power supply, be it in other things of life. Unfortunately, in the 1993 -94 Budget of the North-Eastern council, the Government of India have cut away about Rs.800 crores and they have allowed only Rs.600 crores as plan budget. As such, many of the roads which are now under construction, cannot be completed and many of the power projects also can not be completed. We need a special attention. Most of the States, except Assam, are Special Category States where special attention should be paid by the Government in India , If we go in only for privatisation, I am afraid, that we will have no investment, no growth, and nothing from the budget will be flowing into the States of the North-Eastern region.

The North-eastem region deserves to have a substantial expansion of public investment and we can foresee that private sector's involve- ment and participation is only a drm in that area. However, there is a crying need of the local people of the North-Eastern region to get bank loans so that they can start their own small scale private investment The bank -deposit ration the North-Eastern region is very low and as such, many of the commercial banks are not willing to finance private investment. Dynamic, enterprising young men and women are running from pillar to post of the commercial banks to get finance, but without any success. The bankdeposit ration is very small.

Then, we come to one very important aspect where the North-East can be opened up, and that is tourism. Many of the governments have included tourism as an industry. But here again, though we have scenic beauty, we have waterfalls, we have hot water springs and many other

557 General Budget 1993-94

things, we have the Damocles' sword of restricted area permit where by only four and above foreign tourists can go to Meghalaya and Assam.

It is very unfortunate. We need the tourists.But like beggars we have to see that only 4 and above can go at a time. Why not allow one or two or three persons?

Please allow them please remove the Restricted Area Permit for M.E. Region. Right from 1989 I have been pleading for this. You do away with it. If you want us to be in the national mainstream, do not try to segregate us. It you segregate us, we will be like animals put in a zoo and we do not know how to respect one another. Many of the terrorist activities have sprung up from this.

The Ministry of Food Processing has a great scope to develop small scale canning and food processing industries in the North East region. We find that the farmers producing cash crops, like ginger, tamarind, cotton, black pepper etc. and other crops, have to depend on the whims of the unscrupulous traders to buy their crops as a throw- away price. But if the Government of India, through this Ministry of food processing can go and start small and marginal industrial units, I am sure, this will help very much to the farmers of that area so that they can preserve their products, refine their products and make them processed food.

In Meghalaya, in the years 1987,1988 and 1989, the monsoon has been very unkind to the farmers.

Many crops were either destroyed by late arrival of monsoon or too early arrival of monsoon or bad monsoon. The farmers have taken bank loans and could not repay their loans. Appeals were made to the Central Government to waive off their loans on the specific ground of the destruction by the monsoon. However, till today, neither State Government has done anything's to waive off the loans nor the Central Government of the Janata Dal in 1989 which

General Discussion 558

promised waiving of the loans of Rs.10,000 has done anything in this regard. Our farmers cannot get any more agricultural loans from the banks.The North East States require adequate availability of Bank credit at reasonable rates of interest to start industrial for agricultural growth.

The Central Government will have to make concessions in the statutory liquidity ratio. The lending rate of 17 per cent is too high to attract private investment.

The progressive work of NABARD is not known to the North East States. I am happy to note that through in the Budget the rate of NABARD re-financing of agricultural bank loans is being increased to 90 percent,in the case of North East States proper monitoring must be undertaken immediately to sel that the benefits accrue to the people of these areas.

I would also like to draw right attention of the Union Government to the most important shilling bye-pass and Jowai bye-pass in National Highway number 44. The State Government has requested the Centre to allot funds so that those two bye-passes can be taken up and the work can state. However, till today noting has been done. The National Highway Number 44 is a very heavy highway with thousands of trucks coming from Tripura, Mizoram, Assam, Manipuri etc. Which ply to come to Assam and to Bengal. The State Government of Meghalaya have got a timing restriction. The vehicles cannot ply through the shillong city from six in the morning till six in the evening.

Thousands of trucks from a queue because they cannot go. For the two bye-passes road, gardly Rs. 50 crores have been given and for the so many years nothing has been done.

Madam, before I sit down I would like to drink to the notice of the hon. Minister that in the last Plan allocation Meghalaya has been given Rs. 284 crores. Out of this, about Rs. 94 crores had to be raised by the Meghalaya Government through public subscriptions i.e.

Rs. 50 crores

559 General Budget 1993-94

[Shri Peter G. Marbaniang]

through banks and other agencies and about Rs. 44 crores through foreign investment. Now, if foreigners are not allowed to come to Meghalaya, which foreign country will come and invest there? Now, Meghalaya being a special category State, I would request that the Central Government should again reallocate the Plan allotment for Meghalaya doing away with Rs. 94 crores meant only to be raised through public Contribution and foreign investment.

So. with these few words I support the Budget.

[Translation]

SHRI BHOGENDRA JHA(Madhubani): Madam, I rise to oppose the Budget presented by the hon. Finance Minister in the House. The aim of the Budget is to boost imports, as stated by the hon. Finance minister on page 2 of the Budget. Imports have to be boosted to boost exports.

The main point is-import for export and export for import. It means we will boost exports to make good the deficit of foreign exchange and then we will import, It means we would have already spent foreign exchange on imports just to earn foreign exchange by boosting exports.

That is why, the main purpose of the Budget that it will prove helpful in raising the standard of living of the people in the country and raising the production, has been defeated.

I will come to the point of capital investment later. You are opening the doors for foreigners. Anyone can establish industry here.

Will it do any good to the country? We were under the rule of Britisher's for 2000 years, had they done and industrilisation in India? At that time none was there to stop them. Even now when we have set up industries in the country after Independence, we have done so with the collaboration of the then U.S.S.R. There is not even a single heavy industry in the country for which we might have not gone to U.S.S.R. without getting disappointed in the world, whether in the U.S.A. or in the U.K.

General Discussion 560

I am talking of all the industries whether it is Bhilai or Hatia or Bokaro or Bhopal or Haridwar, Therefore, these who are having false notion today have got greatly disappointed. Madam, the false notion that any heavy industry or basic industries which had been called the capital of industries sy Jawahar lalji ... (Interruptions) Do you hope that any multinational company will establish big industries in our country?

Madam, newspapers in our country have made much publicity about it. Recently when I visited China, I wanted to know seriously whether there was any basic industry in China, established with foreign capital? One branch of bank, industries of some luxurious goods, and electronics industries have been established by non-resident Chinese only. Hong Kong is going to be unified with China sooner or later.

This Budget relies upon a false notion that industrially developed countries will establish heaving the problem of market. The number of unemployed has gone up in the U S.A. They need market.When the farmer U.S. president Bush had gone to Japan to explore market and when he did not get a satisfactory reply, he fainted at the dining table.

Later, the American voters made him fully unconscious. This is the problem of market for them. That is why they need market like that of India and Russia so that can market their products. This is a new type of investment competition. And through this Budget the Finance Minister is opened there door for their free entry into this country. So, we should not have this false notion that foreigners will invest capital in our country and thus make us self reliant. Rather, it will prove more dangerous and our indigenous industries will be paralysed.

17.24 hrs.

(SHRI PETER G. MARBANIANG in the Chair)

Mr. Chairman Sir, we can make progress, further by providing protection to our industries, which are quite competent and which are already making exports. The new arrangement will hit these industries hard. It will stop our

561 General Budget 1993-94

industrial development. This danger I has been overlooked in this Budget.

This is the third Budget of this Government and the third Budget of the hon. Finance Minister. He is hoping, not claiming, an increase in the industrial production. Agricultural production has in creased due to good monsoon.. Apart from that, the Government has given figures about many parts of the country. Some States like Bihar and Orissa are facing drought this year but on the whole,good rains have increasec :Production. if we take credit of such good prod- uction in tghe Budget,then it is a great folly. Our Finance Minister has been silent over the role, of the Budget in last two years and its role in the year.He is not showing any hope about increase in production.

Kit is being hoped that our industries will compcte with outside industries. The Government is going against our established industrial policy. They are sassing that they are following that policy.but, in fact " are going against it. Our policy is to set set up heavy industry in public sector. The medium industries should meet the requirements of the country and small scale industries should be developed by using electrically operated machines .Only then vast country like ours can make progress in production .But all the three consecutive Budgets have frustrated the basic concept of our industrial policy.

In the name of public sector,industries are being made sick.Our colleague Amttamal Date was just making a reference to Bhopal. That, is the biggest heavy industry in Asia. Heavy industry at Hetia and Ranchi have also been made sick. These industries are not getting order for ' expansion of units. in the country. If Hatia, is closed down, do you think any other establishment can be built-up here with foreign capital I would like to ask this country will progress when, we are creating dangers for our own industries . Circumstances are being created to close down hatia bhopal, Haridwar.the industries, that are


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