![265 Statutory Resolution Seeking [30 JULY 1992] Trade (Development and 26( Disapproval Oj the Foreign Regulation) Ordinance 1992](http://data.docslib.org/img/1411ee81d80acd2266d399e15cb1e1a8-1.webp)
265 Statutory Resolution seeking [30 JULY 1992] Trade (Development and 26( disapproval oj the Foreign Regulation) Ordinance 1992
port what is needed in the foreign markets. Hence, there is no marked-oriented production. To this end in view, the Bill is silent. Besides another serious complaint has been that the goods exported do not generally STATUTORY RESOLUTION SEEKING match with the samples earlier approved by DISAPPROVAL OF THE FOREIGN the buyer. The Bill does not provide any TRADE (DEVELOPMENT AND REGU- safeguards or punishments against such an LATION) ORDINANCE 1992 AND THE embarass-ing situation. Therefore, I do not FOREIGN TRADE (DEVELOPMENT support the Bill as there are no provisions in it AND REGULATION) BILL, 1992— for the development of exports. Thank Contd. you. DR. NAUNIHAL SINGH (Uttar Pradesh); Since, technology, investment and production are inter-dependent, will the hon. Minister assure that this Foreign Trade (Development and Regulation) Bill, 1992 would be able to bring about these elements together and spur the ', economic growth further? He has ponted out that the Import and Export Control Act, 1947 was made under different circumstances. Although it has been amended from time to time, the Act does not provide an adequate legal framework for the development and promotion of India's foreign trade. Besides, in July 1991 and August 1991, major changes in trade policy were made by policy were made by the Government, But these were not comprehensive measures. The goal of the new trade policy should be to increase productivity and competifivertees to achieve a strong export performance. However, the prominent missing elements in the Bill are; (1) The provision of conducting wholesome international marketing surveys in target markets by professionals. (2) Proper direction of the trade to follow. (3) Reducing the cost of production. (4) Quality control mechanism. (5) Provision for research and development. (6) Intensive and extensive training of exporters which should become a condi- tion precedent for registration of an exporter. (7) Provision for organised export-oriented production activities. (8) International advertising campaign? for India's goods. [The Vice-Chairman (Shri H. Hanumanthappa) in the Chair] In this country, the practice has been to export whatever is being produced and not wilfully manufacture and ex- 267 Statutory Resolution seeking [RAJYA SABHA] Trade (Development and 268 disapproval of the Foreign Regulation) Ordinance 1992
269 Statutory Resolution seeking [30 JULY 1992] Trade (Development end 27t disapproval of the Foreign Regulation) Ordinance 1992 SHRI INDER KUMAR GUJRAL SHRI JAGESH DESAI (Maharashtra); It (Bihar); Mr. Vice-Chairman, the Bill had gone up to 16.5 per cent and at present it as it is presented, is in a way more is eleven per cent. of an administrative Bill than a policy SHRI INDER KUMAR GUJRAL; Bill. Naturally, while talking about That is not may source of information. the exports, one cannot but express In 1990, even last year, it was 9.1 per anxiety about the Way the new econo cent. Therefore, after devaluation, mic policy is reveailng itself. Much you see that inflation has caught up dependence in the new economic policy with us. Naturally when the inflation was placed on the prospects of exports. goes up, all the advantages that the But the figures that are coming out exporters are supposed to get, will get now are really causing us anxiety. I neutralised... It is because the prices am. not going into the long perspective. catch up and the cost of production But let us look at the perspective of goes up and everything that needs raw the last two months alone. In the materials goes up. The end result is last two months, the decline is by 3.97 that imports become liberal and also per cent in dollar terms. But the cause us anxiety. The situation is paradox is very different. The paradox similar, as I said earlier, to that of is, and that is where nation gets de 1966. Devaluation, unfortunately, as ceived that whereass in dollar terms, it we see it—it is very interesting—has is a decline of 3.97 per cent, in terms helped only in bringing in more im of rupees, it is an increase of 36.7 per ports. I just now gave you the figures cent. Therefore, when the Government about exports. In April-May this of India comes out with figures, it year, imports increased by 24.7 per cent emphasises more on rupees than on the in dollar terms and in rupee terms, by foreign exchange earning. What does 77.52 per cent. This is the shape of it mean? It means that the impact things that we are seeing for ourselves. of the inflation is now trying to stran We have to pay for the sins of our gle the nation's economy. It was past, of course. Our industrial growth believed when devaluation was done has been biased mainly on a new type that perhaps as a result of devaluation, of illusion as if we can build this coun the inflation would be controlled. That try, this country's economy, only on was the promise. As far as India's the basis of imports, as if we need experience is concerned, in the recent imports for raw materials, we need past, only twice we have gone into the imports for machinery. Therefore, IMF-World Bank theology of devalua when you talk of electronics or automobiles tion—once in 1966 and now. Every or synthetic fabrics, all " these industrial time, the inflation overtook us. Now bases that we have built up are really those look at the situation today. 13.5 per that keep on surviving only on the basis of cent is the officially released figure of imports. You try to shrink the imports and the inflation. Of course, if you go to industry starves. The other day, the Minister market and find out the prices, then of Finance was telling us that he cannot you sea a different picture altogether. shrink the imports because the industries will But Mr. Vice-Chairman, the interesting suffer. It is because you have taken up a part is that this 13.5 per cent, even model like this. The model we have taken up the official rate, is the highest in the is going to create, as time passes, a situation decade. For the last ten years, the like this. Therefore, if anybody were to come rate of inflation has never been 13.5 up here and tell us that the future will be per cent as it is today and I am putting brighter and better, I can only sympathise the official figures and I am quoting with him. I will only suggest to them that this the official sources also. I am not is the situation and they should try to modify makingi them at my will and if my the model that we have taken. friend wants, I have documents with me to prove that these are figures given by the Government itself. Therefore, in 1990, for example... (Interrup tions).. . 271 Statutory Resolution seeking [RAJYA SABHA] Trade (Development and ill disapproval of the Foreign Regulation) Ordinance 1992 [Shri Inder Kumar Gujral] The new economic We have often talked about the Dunkel Report policy is, unfortunately, working in the and the GATT and that not. Unfortunately, reverse. Two days ago, the Minister the Government has not taken us into announced some new rules. They are now confidence. A Committee was appointed, a permitting the major industries the Committee of the Cabinet, under the multinationals, and are delinking the chairmanship of Mr. Arjun Singh and I had major industries, the multinationals, from also the privilege of appearing before them. export obligations. Now, export obliga- They think that it is too dangerous for them to tions are also not there. Therefore, you come out with the Report and the Chairman felt see a situation whereby those whom you were perhaps that a trap, a political trap, was trying to force in the last one decade, all being laid for him. So, he was saying that he the Governments that came into office, to was not going to give us any report, that we import by emphasising a great deal that if had to discuss it in Parliament and that the they were to import, they must export, you nation should debate it. This is not the way are releasing them. You have now to react to the Dunkel Report. Well, the released them and, therefore, that multinational trade negotiations are unlikely to obligation also is not there. I do not know secure for us a better success in the world who will then export and how much exports market. The rapid and across the board will be there and how we some out of this liberalisation of imports will only compound situation. It is because of the ideology difficulties by imposing severe straining on of liberalism so well quantified by the the BOP situation. Moreover, the promise of World Bank and the IMF and it cannot foreign direct investment is unlikely to be reversed here. We are trying to tell that this is the only way to survive and it also provide a significant relief, and certainly not looks as if it is inevitable. It is a sad in the near future. And we know what is hap- thing for the whole country and for the pendingi. The resources abroad are not Government also. If it is for the available In the last one year, ever since the Government only. I won't mind. But new economic policy hsa come in, we had a since it is sad for the whole nation, I feel massive investment of 300 million dollars. worried about it. In the 'eighties' the And what is happening? And it is coming in same thing was told to us and a big what? You are having Pep-sicola, you are propaganda was there as if the festivals having breakfast foods. What are we taken outside, the high rate of imports of for? And the thing is that tomato—Ketchups goods, high rate of loans and all that would are now being made by the foreign us in a paradise. Now, we have investment. Add to this the Government's seen in the 'nineties' where that paradise is. policy. They have promised that in the next This is the situation now. three years, import of capital goods will be totally liberalised. What will happen? If you look at the economic figures of any Again, Mr. Mann, who spoke just now, was industrialised country today, they are having saying that you are going into new areas. You a glut of these machines. They want to unload have to import wheat also| Edible oils were them and we, like all suckers, are trying now already bothering us and petroleum products to import them. Totally remove all the were already worrying us. And now you are barriers, and you will have a glut of the going in for other items also where you are capital goods. The end result will be that trying to go in the interest of the foreign whatever base we may have built up in the exporter only. I do not know how the World Nehru's era and ar ter that we will be having a Bank will be unhappy if we import wheat or serious di fficulty. The world market is such edible oils. The end result is going to be that tha dancers of dumping are very serious your imports are going to go up and the And I would like to under situation is going to cause us a great deal of stand from the Government tha anxiety as time passes. apart from making platitudinous assui 273 Statutory Resolution seeking [30 JULY 1992] Trade (Development and 274 disapproval of the Foreign Regulation) Ordinance 1992 ances and all those things, are their policies in there was a certain central point in their conformity with this? growth. And that central point was that their export sector was developed without harming Now, we have the experience of the new the domestic sector. As a matter of fact, their economic policies for the last few export sectors have been so conditioned and months. Let us understand now at least tailored that they are helping the domestic that it has been myopic. Let us now ap- sectors.. And ours is the reverse. Everythug preciate that it has been fragile and that it has that we think of export sector is trying to not done inflation control. The gut harm the domestic sector. Therefore, we feel issue of exports, is inflation control. No that a hazardous situation for the domestic exports will catch up unless you are able to sector is. developing. manage the inflationary trend. And for this, now the measures are very strange. For I do not mean to discuss the new economic instance, as I mentioned just now, to policy today. I wish we had the control inflation, you are now importing opportunity to do so. 1 wish we had a consumer good's, so that that you think review done. I wish the Government had the that the prices can come down. Can the courage to tell us that, of course, we prices come down like this? And if they deflected from the past, but let us come come down even, say, in one area or back to the rght course. But I see that the other, at what cost? And in order to courage lacking. Let me suggest all the same reduce the Government expenses, what a few things that can, perhaps, in the short areas are suffering? These are social term, help exports. These are not many. services, education, health and all those One is that some people come and tell me things on which the nation has to stand. that while you have given concessions, to You are now cutting on those in the various industries in the matter of name of cutting down inflation. income tax, on exports, consultancies Regarding inflation, the new economic have not been given that much. They policy relies primarily on fiscal adjust- have been given •only 50 per cent of the ments. And my friend, Mr. Yashwant concessions. I think that is one area Sinha should be able to tell us. better where India has a lareg intellectual capacity about this because he has dealt with today. There are architects; there are designers, and so many people are there this. And he would endorse this idea that who can be encouraged. Now, if an resort to imports of mass consumption architect designs a building, say in items is. not the way. The route to fiscal Timbaktoo, then you give him 50 per adjustments has been through constraints cent concesson. But if somebody exports of invesment on social sectors, as I men- tobacco, you give him 100 per cent tioned earlier. The revenue deficit of concession. This is. something which has to tihe Government has, in fact, increased. be looked into and I would suggest that This is another area of anxiety. And the something should be done about it. reduction in the customs duty has been Similarly, software export is still not as offset by the devaluation effect of the much as it should be. That is one area partial convertibility. What is the net which can help us in exports. result? The net result is that costs have been pushed up and are persistently The interesting part of liberalisation is that going up, and the demand is, coming while liberalisation is there on paper, in actual down. Therefore, now you are getting practice it is with the inspectors. I heard today caught up into new dilemmas and new a very interesting complaint and that is that situations. some garments exporter here had imported In the export promotion, we are trying to very delicate laces from Japan and they are think of models that can help us. Often in lying in the Customs godowns. An inspector the media and in the House, we talk of comes to him and asks for money and says Japan, we talk of Korea, and we say that that if you do not pay the money, he will ask they have done very well. But anybody for everything to be who is a student of economics, anybody who understands the Korean model or the Japanese model knows that 275 Statutory Resolution seeking [RAJYA SABHA] Trade (Development and 276 disapproval of the Foreign Regulation) Ordinance 1992 [Shri Inder Kumar Gujral] with 60 per cent convertibility or not because opened. Therefore, all the laces will be seme exporters have met me and told me that opend. You can't reassemble them. Therefore, it does not match. Some papers have also the best way is, to pay money and get out of written about it and I have recently Feen an it. That is the situation that is coming up. article about it. SHRI CHATURANAN MISHRA (Bihar): SHRI JAGESH DESAI: If that is done, then Do they want to liberalise the rate also? where from will they be able to purchase oil and other things? That is the reason why it is SHRI INDER KUMAR GUJRAL: only 60 per cent convertibility. My point is Definitely it could be playing havoc with your basically different. It is that the benefits entire liberalisation. I think you will have to which the exporters were getting otherwise set up a mechanism and a system so that are now equated with partial convertibility. If people can come to you and an exporter is it is not matching,—I am only asking the believed prima facie till he proves, otherwise. Minister to examine it; I am not pleading for I think something will have to be done in this it— kindly have a look into it. context. Similarly, there is another plea, from the Similarly, I talk about the export incentive hundred per cent export units, hundred per that you have given. I am told that various old cent export processing units. They are facing claims of the order of about Rs. 500 crores are problems with the inspectors, more than lying pending in your files for more than one anybody else. Therefore, I would suggest that year and people have not yet been given the you should set up some sort of an enquiry into amount. Similarly, the duty drawback system the whole thnig. I would just give one hap to change. For duty drawback, the example. In the case of the hundred per cent exporter conies to you and then your office untis, they are asked to file a list of their issues something and corruption creeps in, and machinery, building, etc. Then the inspector then he goes to the bank. Why don't you comes and says: 'You have filed the list, but a authorise the banks to do it? You can easily cable of your building is having a light in the ask the banks that as soon as the remittance other building. Therefore, you come again. I comes from abroad, they can give the duty am not saying whether it is right or wrong. drawback straightaway. The end result will be But kindly call the associations and discuss it that it will be a more efficient system. with them because this is something which Partial convertibility was perceived as a needs attention. due compensation for withdrawal of other Having said all this, I will wind up by concessions, for withdrawal of other saying this. Mr. Minister, I know your incentives. But now the interesting thing is difficulties. You are not the architect of the that partial convertibility is not helping. It economic policy. But whatever voice you does not adequately match the incentives that have, even if it is feeble, please tell the you were giving in the past. For trade Finance Minister and the Prime Minister that purposes, you might examine the prospects of the myopia must and because the new giving 100 per cent convertibility. That is my economic policy is taking us to hell and not to view. I am not pleading for total convertibility development. Thank you. in the broad sense. I am only saying that at the moment you are giving 60 per cent THE VICE-CHAIRMAN (SHRI H. convertibility to an exporter. Kindly examine HANUMANTHAPPA): Dr. Jain to reply. the implications of giving 100 per cent convertibility. I am not pleading for it. I am DR. JINENDRA KUMAR JAIN only saying that a case study may be (Madhya Pradesh): Mr. Vice-Chairman, conducted whether incentives given in the past Sir, yesterday, I moved the Resolution match of Disapproval and initiated the debate. My disapproval was not total. I had quali-
277 Statutory Resolution seeking [30 JULY 1992] Trade (Development and 278 disapproval of the Foreign Regulation) Ordinance 1992 fied it by mentioning the points on which I is very crucial today. We must earn foreign supported the Bill. There is no need for me to exchange. The hon. Minister should also repeat the points for which I moved the have a similar attitude towards the Resolution of Disapproval'. Most of the constructive criticism of suggestions coming Members who spoke from this side pointed from the opposition parties. out why this should be disapproved. One of the things which has been Sir, it has been a very interesting ex- mentioned, to which I would like to make a perience for me while sitting throughout the reference, is corruption. This corruption in debate. I belong to the main opposition party. our administration of foreign trade is ruining I formally moved the Motion of Disapproval. our efforts I am not talking of the personal Even then, I supported the good points in the greed and corruption. I am talknig of the Bill and I complimented the hon. Minister. procedures which breed corruption. There is For example, they have shifted the trade delay. When an application is made there is regulations from criminal jurisdiction to civil no effort on the part of the Government to jurisdiction. This sort of an attitude would dispose of the application within the send the ri^ht signal' to our traders and it is to stipulated time. be welcomed. On the other hand, I have come across instances where even if it is a straight request Now, all the Members from the ruling whcih can be granted, the officer concerned party except saying one sentence in the says that if it is agreed to, somebody may beginning that they support the Bill, were accuse him of having had some corrupt critical of the Bill. If you kindly read their dealing. speeches, you would find that they were In a nutshell, there is a premium on severely critical of the Bill, in toto. inefficiency. If there is delay, THE VICE-CHAIRMAN (SHRI H. no explanation is called for. Sir, HANUMANTHAPPA): They were sug- in a dynamic process like trade, delay gestions. inspires traders to corruption. You should have procedures and rules to eliminate SHRI/ V. NARAYANASAMY (Pondi- delays. cherry): They were suggestions. It was not criticism. There is one more thing about inspection SHRIMATI JAYANTHI NATARAJAN agency. We have our own inspection (Tamil' Nadu): We are not bonded labour. agencies for our exports. I am talking only on We are a democratic party. Not like you. exports now. I fully support the view-point that we must have quality control to maintain SHRI V. NARAYANASAMY: We are the standards of our export goods, but not for not like the BJP. (Interruptions) all the items. J give one specific example just THE VICE-CHAIRMAN (SHRI H. to illustrate the point how our inspection pro- HANUMANTHAPPA): Don't answer the cedures are defeating our own efforts. It is interruptions, Dr. Jain. You go on. not an exhaustive list. Take the area of electronic software, like computer software DR JINENDRA KUMAR JAIN: I am not and video software. There is a sti-pulation commenting on the internal functioning of that everything of video software intended to the ruling party. The point I am trying to be exported should have a censorship make is this The hon. Ministers in charge of certificate. Now there is a tremendous this Bill, namely, Shri Kurien and Shri demand in the world market for video Salman Khursheed, owe me a favour. It is software from India, but we are not doing because I did not speak from a partisan point anything. There are a number of producers all of view. This is the spirit we should have in over the country. If Doordarshan is not able Parliament when we are dealing with to exploit and utilise their entire production important subjects like this, i.e. foreign they should be allowed to sell in the trade, which international market. Nobody will question if anything goes through satellite, but video software 279 Statutory Resolution seeking [RAJYA SABHA] Trade (Development and 280 disapproval of the Foreign Regulation) Ordinance 1992 [Dr. Jinendra Kumar Jain] have got one more minute to complel which can bring you substantial money, has to your reply. be given a crtificate by the Censor Board. DR. JINENDRA KUMAR JAIN: you And the Censor Boards are non-existent. want to debate these points. . . Right in the capital city of Delhi I do not know whether the Minister knows that there THE VICE-CHAIRMAN (SHRI 1 is no Censor Board, Only an officer of the HANUMANTHAPPA): This is parli ministry of Defence has been designated to be mentary debate. You cannot go on spea ing the Censor Board. He is a full time officer of for hours together. the Ministry of Defence, with no mechanism. SHRIMATI JAYANTHI NATA'Ri If you have such part-time people trying to JAN: You should confine yourself to. give inspection certificates, how can you find a break-through in export market? This is just THE VICE-CHAIRMAN (SHRI an example or an illustration. The sum and HANUMANTHAPPA): Youhave gone substance of exports is to earn foreign Censor Board unnecessarily. exchange. We should encourage everything that brings us foreign exchange. A point was DR. JINENDR KUMAR JAIN: C( sor made about lack of coordination. There is a Board is the inspection agency. lack of coordination between the Ministry of Commerce and the Ministry of Finance or the THE VICE-CHAIRMAN (SHRI HANUMANTHAPPA): Now do not a wer. Ministry of Textiles or the Ministry of You will further lose your tin Agriculture. I would like to plead here that the hon. Minister should consider a 'single DR. JINENDRA KUMAR JAIN: i Mr. window agency' concept. For industrial Jagesh Desai has asked a question whether development a number of State Governments the Minister would reply... are already following this concept to help entrepreneurs. The hon. Minister should THE VICE-CHAIRMAN (SHRI declare that the Ministry of Commerce will HANUMANTHAPPA): That quest the set up a 'single window agency' which will Minister will reply. comprise all the officers of concerned Ministries should be put together so that all SHRI VITHALBHAI M. PAT the problems pertaining to exporters will be (Gujarat): It is for the Minister... ( taken care of at one time. This concept of a terruptions) . . . 'single window agency' will go a long way in DR. JINENDRA KUMAR JAIN: dealing wtih the problems of exporters. moved the Resolution and I have a ri to {Time Bell rings) reply to the debate. Is it not the of this House? . . . (Interruptions) . . are trying to Sir, I need to take notice of the points drown my voice like Sir, I want your raised during the debate. I do not know ruling. As a Mem who moved the whether you will give me another oppor- Resolution for disapj val—please give tunity. your ruling—do I have light to reply to the debate or not? will' speak after you THE VICE-CHAIRMAN (SHRI H. give your ruling. HANUMANTHAPPA): No, your time is over. That is why I rang the bell. THE VICE-CHAIRMAN (SHRI HANUMANTHAPPA): I have given an DR. JINENDRA KUMAR JAIN: I have opportunity to reply. moved the Resolution. I am replying to the debate. I have to react to some of the points... SHRIMATI JAYANTHI NATA] THE VICE-CHAIRMAN (SHRI H. JAN: Why are you getting angry? HANUMANTHAPPA): That is why an DR. JINENDRA KUMAR JAIN: am opportunity was given to you. Mr. Jain, you not getting angry. I request you to have exhausted all your time. You throttle me. THE VICE CHAIRMAN (SHRI HANUMANTHAPPA): Dr. Jain, have asked for a ruling and I have gir 281 Statutory Resolution seeking [30 JULY 1992] Trade (Development and 282 disapproval of the Foreign Regulation) Ordinance 1992 my ruing. Why are you arguing? That is the should agree to a minimum of 75 per cent time given to you to reply. instead of 60 per cent. DR. JINENDRA KUMAR JAIN: Sir. I Now, Mr. Jagesh Desai asked, where will would sit down and would even agree to - the foreign exchange come from? withdraw my Resolution of disapproval, THE VICE-CHAIRMAN (SHRI H. provided the hon. Minister gives me an HANUMANTHAPPA): The Minister will assurance or a promise to do three things: answer that. (1) To set up a single-window agency for helping the exporters to take care of DR. JINENDRA KUMAR JAIN: My their problems at one point. (2) As I had last sentence, my last sentence. explained yesterday, there should be a THE VICE-CHAIRMAN (SHRI H. cell in the Ministry to react to and HANUMANTHAPPA): This is the process the suggestions of the fourth "last." Members of Parliament who can chan- nelize the problems of importers and DR. JINENDRA KUMAR JAIN: exporters. Democratically elected represen- This is the last. Sir, it is not a question of tatives of the people should do this to foreign exchange. 1 am asking for conversion help our traders exporters and importers of foreign exchange earned by the exporter in and the Government should invite terms of rupees at a particular rate. So there is their suggestions and they can be given no question of where he will get the money provided there is a cell which will from for the import of oil. You will get honour such suggestions coming from money which has been earned by our Parliamentarians. (3) My last request to exporters and you can buy oil or anything. the Minister is, to consider the setting The only question is the rate at which you up of a special cell in the Ministry to •will allow them to convert their dollars into deal with the complaints of corruption, rupees. Mr. Gujral has asked for 100 per cent and this special cell should monitor the at the same rate as they buy. I support that procedures and instances which breed demand. But I say, please be kind and let the corruption. minimum be net 60 per cent but 75 per cent. Thank you, Sir. Sir, if you allow me just one more sen- tence. I would like to end my statement by THE VICE-CHAIRMAN (SHRI H. making two recommendations: (1) It is HANUMANTHAPPA): If the House reasonable that the export of traded goods agrees, we can complete the reply by the and the earning of foreign; exchange by Minister and the voting. providing services should be trenterl at par SOME HON, MEMBERS: Yes, Sir. with manufactured exports for purposes of sertion HXC of the Income-Tax Act. I SHRIMATI JAYANTHI NATARAJAN: know, it does not strictly come under your We will sit and complete it, Sir. purview: it is to be decided by the Ministry THE VTCE-CHATRMAN (SHRI H. of Finance. But I have alrendv pleased the HANUMANTHAPPA): I hope the Minister need for coordination and cooperation. also will be brief. . . . (Interruptions) Let us The last suggestion that I am giving finish this. today on the subject is about the point that THE MINISTER OF STATE IN THE was raised by my hon, senior colleague, MINISTRY OF INDUSTRY (DEPART- Shri 'I. K. Gujral and the point that was MENT OF SMALL SCALE INDUSTRIES made by Shri Jagesh Desai opposing this. It AND AGRO AND RURAL INDUSTRIES is only reasonable that when the AND THE MINISTER OF TATE IN THE entrepreneur has to buy 100 per cent of his MINISTRY OF COMMERCE (SHRI P. J. foreign exchange needs-—for imports—at KURIEN): Thank you, Sir, I will try to be as the market rate, why should he not he brief as possible. However, if I try to react to allowed to convcrL that at the market rate?, the points raised by Members, I think, it needs Mr. Gujral wanted the Government to con- more than an hour. sider 100 per cent. I say that they 283 Statutory Resolution seeking [RAJYA SABHA] Trade {Development and 284 disapproved of the Foreign Regulation) Ordinance 1992 [Shri P. J. Kurien] licences are required, and today exports or I will try to be as brief as possible. imports are all free except for the items in the negative list. That negative list has been SHRI V. NARAYANASAMY: Specific drawn on considerations of health, security replies you sent to the Members. and environment. SHRI P. J. KURIEN: First of all, I think Therefore, the whole attempt is to allow the every hon Member who took part in this fade sufficient freedom so that if car be debate which was of a high level and performed in an atmosphere in which the standard. All the criticisms and suggestions exports can grow. Then we have taken care to have been noted for positive consideration see that the items, imports of which do not and possible action. generate exports, do not promote exports, are brought in the restricted list. Sir, the purpose of this Bill itself is Yesterday a question was raised by an development of trade and promotion of hon. Member, whether we are allowing exports. Everyone knows that last year our BOP position was such that we were in a imports of consumer goods. It is very clear in financial crunch. The credibility of the nation the Policy itself. We are not allowing imports was about to be lost. But for the timely of consumer goods. It is in the negative list. It is not allowed like that. measures taken by Government at that time, our position, Sir, would have been very Hon. Members have criticised us. for unenviable. On the criticism on those allowing imports to be made freely. What we measures which one or two hon. Members have allowed is only duty exemption for raw have made, I have only one reply, I ask them: materials and capital goods. Please imagine what would have happened if Sir, there was a criticism here on the Government had not taken those measures, Capital Goods Export Promotion Scheme. what our position would have been today if The Export promotion Capital Goods Srheme this Government had not taken those radical is with the stipulation that they should export. measures. Today, looking back, we can say, A question was raised as to what is the "No. We have this problem, we have that guarantee that export obligations will be problem." But we would have been in a much complied with. I would like to inform, the worse position if Government had not taken House that these imports are allowed with these steps. sufficient legal undertaking or on the basis of a bank guarantee and the Office of the CCIE Sir, for any country, for the growth of its is closely monitoring it. So, compliance. with economy, exports are most im-^ortirrt. That export obligations is ensured and taken care we have understood. Therefore, we have of. announced a trade policy in which the total Again with regard to advance licensing emphasis is on exports. But export cannot just scheme also, a bank guarantee or a legal flourish as one entitv. 'It can only be inter- undertaking is required. Therefore, as far as linked with imports and trade. So, what is we arc concerned there is no question of needed is freedom of trade, so this Go- going back from the export obligation that has vernment has announced that it is going to been stipulated into these two schemes— allow a regime of freedom of trade, in which EPOG and advance licensing. restrictions will be less, that licensing and SHRI YASHWANT SINHA (Bihar): Mr. licence raj will be abolished as fair as possible "Minister, would you yield for a moment? I and minimised, that maximum transparency would like to ask a question relating to this. will be there. That is why a new Import- Otherwise, 1 would ask liter. Export Policy has been announced, and that new Imnort-Export Policy has made it The Minister is referring to export obli- sufficiently clear that trade hereafter would be gation. Yesterday, this was the point which subjected to minimum controls. Therefore, we Mr. Jagesh Desai referred to. I am quoting The Hindustan Times: have brought out a list of iteme for from which 285 Statutory Resolution seeking [30 JULY 1992] Trade (Development and 286 disapproved of the Foreign Regulation) Ordinance 1992 "In a major extension of its libera- etc. etc. So, the Notification was issued. ralisstion policy in the industrial ' The Foreign Trade Development and Regulation sector, the Government today Ordinance 1992 was. promulgated by the withdrew imposition of export President on 19th June. Parliament was not in obligation with regard to issuance session at that time. So, we have not of letters of intent and industrial committed any breach or impropriety. licences." SHRI ASHIS SEN (West Bengal): I would I don't know whether the Minister is. aware of like to ask. I have not understood . . . this. But, if the Government has taken such a (Interruptions) I should be given an decision, then how is he saying with such opportunity. (Interruptions) I have not confidence that this will be enforced in understood what he meant by bureaucratic future? notifications and orders, not ordinance. (Interruptions) SHRI P. J. KUR1EN: What I was replying SHRI P. J. KURIEN: It has been said that was about the question referred to here there is no major difference between the Act yesterday. With regard to export obligation of 1947 and the present Bill. If you go through under EPCG scheme and advance licensing them carefully, you will. notice that the Act of scheme, which the Commerce Ministry is 1947 is one which regulates and controls. We. administering, that is the reply that I have want a law in the Statute Book which given. 1 did not react to that newspaper promotes and encourages, which de-regulates report. and facilitates the basic changes. Sir, in that SHRI YASHWANT SINHA. Are you Act there is no mention of the import and aware of this. export policy. This is the most important SHRI P. J. KURIEN: Let me see that. 1 instrument which governs Or helps the import can't say oif-hand here. I will have to see and export policy. After we have announced that. the import and export policy,-we have made it A criticism was raised why this Bill' was a part of this Bill. So all the liberalisation brought as an ordinance and why we did not measures which have been taken by the wait for the Parliament session. I would Government are being legalised. That is a very like to make it clear that this Bill was important and substantial change we have introduced in the Lok Sabha during the effected. Budget Session as such. We did not want There are a number of points which 1 to go in for an ordinance. We wanted have to mention but due to lack of time I to come to Parliament and get it passed am unable to do so However, another But, since the Lok Sabha was already engaged important point is—Dr. Jain has also in so many other equally important or mentioned it—in the earlier Act, more important issues, this could not be contravention or violation of the Act taken up. But, then, Sir we were stuck amounted to a criminal offence. Here with a problem, be-cpuse we hive made taking the overall view of the trade and in certain radical changes in the export- order to encourage the trade, we have made it a import policy. Those changes have a case of only civil offence. That is a major bearing on our international contracts change to facilitate foreign trade These are relating to exports and imports. Those the two important things. Thero are so many radical changes should have a legal status. points which I would like to mention but Therefore, if we had not gone for an ordinance unfortunately I am short of time. . . at that time, that would have adversely (Interruptions'). . . Mr. Yashwant Sinhraji affected our trade. We had no mentioned yesterday about ETCT scheme, other go. Therefore, we went advance licensing and export obligation. for an ordinance But a case was made out . . . (Interruptions) . . . here that we lave don- siome improptfety. Neither impropriety nor violation THE VTCECHAIRMAN (SHRI H. is there, because Article 123 of the HANUMANTHAPPA): Mr. Desai, you Constitution is very clear that "except when should know that we are sitting during both Houses of Parliament are in session, the President is empowered, if he is satisfied' 287 Statutory Resolution seeking [RAJYA SABHA] Trade (Development and 288 disapproval of the Foreign Regulation) Ordinance 1992 [Shri H. Hanumanthappa] With regard to the import policy on lunch time. Let us not try the patience of consumer goods, I have already mentioned the Minister. the policy on consumer goods. We have not decided to import consumer goods. I would SHRI P. J. KURIEN: Sir, I would like to like to assure the House that consumer goods make it very clear that I am replying (here as, will continue to be in the restricted list: the Minister of State in the Ministry of Members from Andhra Pradesh on that side, Commerce and not as the Minister of State in as well as some hon. Members on this side, the Ministry of Industry. Therefore, I am not mentioned the problem of tobacco growers. bound to answer any questions relating to the They asked why more credit should not be Ministry of Industry. given to Russia for buying tobacco. Sir, I Some Members mentioned about excess of would like to inform the House that our trade powers, being given to the Director—. plan already provides for 25,000 tonnes of General. I would like to remind the Members unmanufactured tobacco being purchased by that the Bill is very clear because any the Soviet Union. Out of that, they have decision of the Director-General can be entered into a contract for 15.000 tonnes. But reviewed by the Government. Therefore, LCs have been opened only for 9.600 tonnes there is no question of giving excess of for which technical credit has already been powers to the Director-General. sanctioned. There is another 5,400 tonne: for which, if there is a request from the Soviet The hon. Member, Shri Gujralji and some Union, we would consider the question of other Members have mentioned about the giving technical credit fa yourably. 1 can give special licensing scheme under clause 8, sub- you this much as surance. clause (2). There we have mentioned that these powers will be exercised under the With regard to the Dunkal proposals ...... (Interruptions,). prescribed rules. So when rules are Prescribed, we w-ili ensure that there is more THE VICE-CHAIRMAN (SHRI I transparency and less discretion for the HANUMANTHAPPA): Hon. Member Director-General. please allow him to complete. Then, Sir, a point regarding appeal to the ' SHRI P. J. KURIEN: Sir, (Inte Supreme Court was mentioned. Sir, no Bill niptions). If the Chair wants me ' can take away the right of a citizen to go in for finish, I can finish. appeal to the Sunreme Court. Under article 32 of the Constitution he can go to the court. THE VICE-CHAIRMAN (SHRI 1 Under arti-. cle 136 of the Constitution he can HANUMANTHAPPA): No you comple go to the Supreme Court. In addition to these, your reply. under article 226 any aggrieved party can go SHRI P. J. KURIEN: Then you pie se to the High Court with a with petition. ask them to keep quite. (Intern tions). This Therefore, it is not neces-sary to bring that is not the way. I do I agree with this. I want provision here. to reply to wh ever is relevant. Those who SHRI ANANTRAY DEVSH ANKER want to for lunch can go. '' have no objectii DAVE (Gujarat): Why have you taken away (Interruptions). the powers from the civil court? With regard to the Dunkel propos' it has SHRI P. J. KURIEN: 1 am not yielding already been announced that th will be a Sir. detailed discussion in Par ment. We have already taken steps. I have already written Therefore, it is not necessary to bring that to the Secreta that we are ready to have a provision in the body of this Bill because discus; at any time. After taking into accc there is an inherent right to any citizen to go the view expresssed by hon. Members in for appeal to the court. Not only that, in the Parliament, we will take a decision. previous Act also, there was no such provision. 289 Statutory Resolution seeking [30 JULY 1992] Trade (Development and 290 disapproval of the Foreign Regulation) Ordinance 1992 Then, Sir, I would like to react to some taken accordingly, since every hon. Mem. ber other points mentioned by Gujralji. The is anxious and the time is short I would like points are about the export of consultancy, to cut short my reply. I thank Dr. Jain for the export of software, clearance of the giving some valuable suggestions. I assure pending Rs. 500 crore CCS 100 per cent him that those suggestions will be specially export-oriented units. I would like to tell him noted. Therefore, 1 would request him to that all his suggestions will be consideied. withdraw his motion of disapproval and I also With regard to the Rs. 500 crore pending commend the Bill to the House for its appro- CCS, certainly, I would take it up with the val. Finance Minister—who is also sitting here— and we will try to see that it is solved as THE VICE-CHAIRMAN (SHRI H. early as possible. HANUMANTHAPPA): Dr. Jain, are you withdrawing? Mr. Jain also made certain important DR. JINENDRA KUMAR JAIN: I thank points. First of all, he wanted a cell for the hon. Minister for giving me this looking into complaints of corruption. I can assurance. I am willing to withdraw my assure the hon. Member that no cell is needed resolution only after seeking a very brief for it. You bring to us any charge of clarification. corruption against anybody. I can assure you that it will be investigated and action, as per THE VICE-CHAIRMAN (SHRI H. the Jaw, will be taken. No cell is needed for HANUMANTHAPPA); No, no. He will that. T. can assure you that we will take write to you. (Interruptions) action. If you have any other suggestion with regard to reduction of corruption, we will SHRI BHUPINDER SINGH MANN: Sir, consider that too. But, so far, I have not got about the agricultural imports and any complaint about any officer engaging agricultural produce, a separate Bill will himself in such corrupt practices. I would like come into force. (Interruptions) that much to go on record. With regard to the THE VICE-CHAIRMAN (SHRI H. single window clearance scheme, I will assure HANUMANTHAPPA): He will write to you. you, the whole effort is to reduce the (Interruptions) Dr. Jain, he has agreed to all procedural formalities and to eliminate your suggestions. controls to facilitate export trade. That is our whole effort. Our effort is not only confined DR. JINENDRA KUMAR JAIN: Sir. I am to the single window clearance scheme, but seeking a very brief clarification. The whatever suggestions you have, you please Minister has not said anything about the write to us and we will consider them import of consumer goods. I want to bring to favourably. his notice that recently, the definition of the consumer goods has included the components Then the third condition for withdrawal of of the consumer goods. Now, the effect of this is that a cell of MPs should be created to enlarging the definition is that a number of look into the trade aspects. ( Interruptions) industries which are manufacturing consumer goods in the country have been adversely THE VICE-CHAIRMAN (SHRI affected, their exports have been affected. H| HANUMANTHAPPA): He does not mean Fortunately, you are the Minister of Industry a cell of MPs. What he meant by this is that also. I want one clarificaiton from you. We do there should be a cell in your Ministry to not want consumer goods to be imported consider the suggestions of our MPs. freely into this country but those industrial units which are manufacturing consumer SRI P. J. KURIEN: I can assure you even goods, they should be allowed to import without a cell, the suggestions of every MP components. This should be clarified. will be considered and action THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): That he will consider. 291 Statutory Resolution seeking [RAJYA SABHA] Trade (.Development and 292 disapproved of the Foreign Regulation) Ordinance 1992 DR. JINENDRA KUMAR JAIN': Let him The question is : reply. (Interruptions) "That the Bill to provide for the SHRI BHUPINDER SINGH MANN: development and regulation of foreign Sir let the Minister answer my question. Let trade by facilitating imports into and him clarify. Let him accept or deny it. augmenting exports from, India and for (Interruptions). Why should he write to me ? matters connected therewith or You allow him to clarify. incidental thereto, as passed by the Lok Sabha, be taken into consideration." THE VICE-CHAIRMAN (SHRI The motion was adopted. H. HANUMANTHAPPA): I cannot force the Minister. You cannot convert this discussion THE VICE-CHAIRMAN (SHRI H. into a question-answer session. HANUMANTHAPPA): We shall now take up clause-by-clause consideration of the Bill. The Chair cannot ask the Minister to stand up. Clauses 2 to 7 were added to the Bill. DR. JINENDRA KUMAR JAIN: Sir, if Clause 8 he clarifies, I will withdraw. Suspension and cancellation of Importer- exporter Code Number. THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): Are you pressing THE VICE-CHAIRMAN (SHRI your motion of disapproval? H. HANUMANTHAPPA): There are two amendments, 1 and 2 by Shri Anantray DR. JINENDRA KUMAR JAIN: Are you Devshanker Dave. Are you moving your asking the Minister to clarify, Sir? amnedments, Mr. Dave? SHRI P. J. KURIEN: Sir, as the import of SHRI ANANTRAY DEVSHANKER components of consumer goods helps DAVE: Sir ; I want to seek a very small production, we would allow. clarification. 2.00 P.M. DR. JINENDRA KUMAR JAIN: Sir, I withdraw my; resolution.
The resolution was, by leave, withdrawn.
SHRI BHUPINDER SINGH MANN: Sir, let the Minister answer my question.
THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): I cannot force the Minister.
SHRI BHUPINDER SINGH MANN: Since the Minister is not answering my point, I walk out in protest.
(At this stage, the hon. Member left the Chamber)
THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): I shall now put the motion mover by Shri P. J. Purien to vote. 293 Statutory Resolution seeking [30 JULY 1992] Trade {Development and 294 disapproved oj the Foreign Regulation) Ordinance 1992
The questions were proposed.
THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): He has assured. SHRI ANANTRAY DEVSHANKER DAVE: Sir, he has not replied. THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): He said he will consider it. He said it will be considered.
The amendment (No. 3) was, by leave, withdrawn. THE VICE-CHAIRMAN (SHRI H. SHRI P. J. KURIEN: That is not needed HANUMANTHAPPA): The question to be incorporated into the body i of the Act, is: but in the Rules we will try . to take care of T his point. hat clause 9 stand part of the Bill. The amendments (Nos. 1 and 2) were, by The motion was adopted. leave, withdrawn. Clause 9 was added to the Bill. THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): Now the question Clauses 10 to 14 were added to the Bill. is: Clause 15: Appeal That clause 8 stand part of the Bill. THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): There is one The motion was adopted. amendment No. 4 by Shri Dave. Clause 8 was added to the Bill. Clause 9 : Issue, suspension and cancel- lation of licence
THE VICE-CHAIRMAN (SHRI H. HANUMANTHAPPA): There is one amendment by Shri Dave.
The question was proposed.
The question was proposed.
295 The Plantations Labour [RAJYA SABHA] (A dmdt.) Bill, 1992 296
THE PLANTATIONS LABOUR (AMENDMENT) BILL, 1992 THE DEPUTY MINISTER IN THE MINISTRY OF LABOUR (SHRI PABAN SINGH GHATOWAR): Mr. Vice-Chairman, Sir, I beg to move: "That the Bill further to amend the Plantations Labour Act, 1951, be taken into consideration."
The Bill inter alia seeks to provide better welfare facilities, safety provisions to plantation workers and deterrent penal provisions for non-implementation of the welfare provisions of the Plantations Labour Act, 1951. As hon. Members are aware, the Plan- tations Labour Act, 1951, whcih provides for the welfare of plantation labour and regulates the conditions of work in plantations was last amended in 1981 with a view to removing 'The amendment {No. 4) was, by leave, certain difficulties that were experienced in with drwan. its working and for enlarging its scope.
THE VICE-CHAIRMAN (SHRI After the aforesaid amendment, we re- H. HANUMANTHAPPA): The question is: ceived a number of suggestions from diffe- That clause 15 stand part oj the Bill. The rent State Governments for further amend- motion was adopted. ment of the Plantations Labour Act, 1951. The difficultes in proper implementation of Clause 15 was added to the Bill. the welfare provisions of the Plantations Clauses 16 to 20 were added to the Bill. Labour Act, 1951, were considered by the Clause 1, the Enacting Formula and the reconstituted Tripartite Industrial Committee Title were added to the Bill. on Plantation n March, 1983i which felt that the Act should be reviewed to ensure better SHRI P. J. KURIEN: Sir, I beg to medical facilities, hous ing facilities, move: protective clothing etc., as well as adequate safeguard against the use of toxic chemicals That the Bill be passed. which are being increasingly used in plantations. The.question was put and the motion was adopted. In the light of the recommendations o the Tripartite Industrial Committee or Plantations and the provisions made it the THE VICE-CHAIRMAN (SHRI Chlid Labour (Prohibition & Regula tion) H. HANUMANTHAPPA): The House stands Act, 1986, we have brought forwan this Bill adjourned for one hour for lunch. The major proposals in thr Amendment Bill include making provi sions relating to safety The House then adjourned for lunch at five of workers am occupational health problems minutes past two of the clock. arising ou of work in plantations, prescribing tim limits within which garden hospitals am group hospitals should be establishec . The House reassembled after lunch at five amendment of definition of 'Family't also minutes past three of the clock, THE VICE- include dependants of female wot CHAIRMAN (SHRI M. A. BABY) in the 'Chair.