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No. 4 — Friday, February 22 , 1974 /Phalguna 3, 1895 {Saka)

Ordl Answers to Questions: Columns

♦Starred Questions Nos. 41,42,44,47,48,51 and 54 . 1—27

Written Answers to Questions. 43, 45, 46, 49, 50, 52, 53 and 55 to 60 ...... 28—39

Unstarred Questions Nos. 401 to 420, 423 to 426,428 to 430. 39—194 432 to 491,493 to 556,571 to 590 and 59 2 to 600 .

Papers Laid on the T a b l ...... 195—199

Message from Rajya S a b h ...... 199—201

Untouchability (Offences) Amendment and Miscellaneous Pre­ vision Bill - -

Report of the Joint Committee —presented .... 201 Business of the House 201—205

Shri K. Raghu R a m a ia h ...... 201—204

Cinematograph (Second Amendment) Bill .... 206—56

Motion to c o n s i d e i ...... 206

S h ril.it. G u j r a l ...... 206—10 Shri N. Sreekantan N a i r ...... 210—211

ShriN.K.P. Salve *...... 211—18

Shri Manoranjan H a z r a ...... 218—20

Shri M.C. D a g a ...... 220—26

Shri H.N. M u k e r j e e ...... 226-33

Shri R.S. P a n d e y ...... 233—37

*The signf marked above the name of a Member indicates that the ques­ tion was actually asked on the floor of the House by that Member, 62 IJ5S/73—l (ii) Col umns Shr i Hukam Chand K a c h w a i ...... 237-41 Shri Amrit Nahata ...... 241 -4 5

Dr, Karni S i n g h ...... 245 —48 Shri Vasant S a th e ...... 248 -51

Prof. Madhu Dandavate ...... 252—55

Shri N.K. S a n g h i ...... 25 5 -5 6

Bills Introduced — (i) Workmen’s Compensation (Amendment) Bill [Amend­ ment o f Sections 2,3, etc.] by Shri P.M. Mehta . . 256- 57

(ii) Payment of Wages (Amendment) Bill [Amendment of Sections 1,2 etc*] by Shri P.M. Mehta .... 257

(iii) Factories (Amendment) Bill [Amendment o f section 8,9 etc.] by Shri P. M. Mehta 257-58

(iv) Payment of Bonus (Amendment) Bill (Amendment of Sec­ tions 1,2 e'/c.] by Shri P.M. Mehta .... 258

Removal of Disparities and Concentration of Wealth Bill— Withdr­ awn ...... 258-78 Motion to consider ...... 258

Shri M. Ram Gopal R e d d y ...... 259—61 Dr. Ranen S e n ...... 261—64 Shri K.R. G a n e s h ...... 265—73

Shri K. Lakkappa 273 —78

Railways (Abolition of Casual Labour) Bill—

Motion to consider 279—307 Shri Hukam Chand Kachwai ...... 279—83

Shri S.P. Bhattacharyya ...... 283—84 (iii)

Col umns Dr. Ranen S e n ...... 285—88 Shri P.G. M avalankar ...... 288—95 Shri B.V. Naik ...... 295—302

Shri Raghunandan Lai B h a u a ...... 302—304 Shri fnder J. M a l h o t r a ...... 304—305 Shri K. L a k k a p p a ...... 306—307

Statement Re: Fourth Meeting of Tndo-Iran Joint Commission— Shri Swaran Singh ...... 308—10 Re: Recognition of Bangladesh by Pakistan...... 310 LOK SABHA DEBATES

i 2 LOK SABHA to the many financial problems that have arisen in the wake of the oil crisis parti­ cularly in relation to the difficult prob­ Friday, February 22, 1974/P 3, lem facing non-oil producing developing 1895 {Suka) countries. However, as of now it is difficult to predict the practical outcome Thc Lok Sabha met at Eleven of the Clock of studies that are under way in these two organisations on this matter. [Mr. Si’rvkru in the Chair] The Committee also discussed a pro­ ORAL ANSWERS TO QUESTIONS posal designed to impart a greater measure ot certainty and stability to the transac­ rfa qrt»r tion value of SDR. It was agreed that in the interim period, and without pre­ judice to the method of valuation of SDR * 41. vf^w ^ tm r : t o fcnsr to be adopted in the reformed monetary w srai# vft w h srW f, 1974 system, it would! be desirable to base the TflT ocklf^ a r J^T rfft # value of SDR on a basket of currencies. However, there are still many unsettled t o M W ^ ^ srfr Frnfcrt flFr issues such as those relating to the com­ *rmr ^ anfafo M fcr »r? to ironr to position of the basket and the effective in­ 3 ? w ? terest rate which will have to be resolved before the proposal can be voted upon by THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI K. R. members of the IMF. The Committee of 20 invited the Executive Board of the GANESH) : A statement is laid on the Table of the House. IMF to work urgently on all these out­ standing issues. India is in favour of Rome on January 17*18, 1974 are reflected in the Press Communique The Committee also agreed that In issued at the end of the meeting. A copy the reformed system it would be desirable of this communique is laid on the Table to have a permanent council of 20 Go­ of the House, r Placed in Library. See No. vernors with decision-making powers to LT-8185/74] manage and adapt the monetary system, to oversee the continuing operation of The Committee has recognised that the the adjustment process and to deal with steep increase in oil prices has created se­ sudden disturbances which might threaten rious difficulties for many developing the world monetary system. It was also countries whose needs for financial re­ agreed that as an interim step, pending sources will be greatly increased. The the establishment of the Council, a Com* Committee has asked the IMP and IBRD mfttee of the Board of Governors should to cooperate in finding an early solution be created, with an advisory role in the 3 Oral Answers FEBRUARY 22, 1974 Oral A rum en 4 same areas as the Council and with the there. One suggestion which bad been same composition and procedures. This agreed to is that there is to tie an Inter- Committee will come into being when the mediate committee between the Board of present Committee of 20 has completed Governors and the Executive Directors. Its work. These decisions of the Com* This has been agreed to in principle; in mittee are in line with India's thinking the transitional period an advisory council about the further structure of the IMF. will be formed which will look into the ^ * m r : f a vft problems that would come up. q frraf # nrtf q g f w 4 t o j t SHRI RANABAHADUR SINGH : In the context of the agreement reached bet­ \ fr ^TW3rt m w & m ween the Shah of lr,m and thc Interna­ srfa s r t t o " ^ t o tional Monetary fund. I should like to know bow far our problem concerning the f f W n f 3fft v m m m oil crisis will be helped ? tth TO fam ^ $ih m ?ror¥ vt, fW ^ 3R?ft ^ f^rr *pit ? SHRI K. R. GANESH : The position that emerged after the discussions that SHRI K. R. GANHSH : In the recent took place at Rome is that as far as our meeting of the Committee of 20 which problems are concerned, we will have to was held in Rome, the oil crisis naturally enter into bilaterial discussions and bila­ dominated and took most of the time. teral ajgi cement ui'li the oil producing One of the suggestions made there was to have a new lending facility in the IMF to countries. help those countries which will facc a diffi­ SHRI B. V. NAIK : I hope that this cult balance of payment situation as a is also iclevant to thc Ministry oF Finance result of the hike in oil prices. It was also since we find in the course of our energy suggested that assistance from the facility crisis they are dubbing the problem of would be available at rates of interest on fuel with the problem of naptha whether commcrcial terms. No agreement could be with reference to SDR or any other mea­ reached On this, and it was decided to study sure. Would it not be possible to dis­ this Question more in depth. The position sociate these two problems and give fust of India has been that India welcomes priority for naptha because if suffer the proposal for a special lending facility we in fertilisers we will suffer in food produc­ but we arc opposed to the rates of interest tion v h rh will have a disastrous con* being on commercial terms, because it wfll involve various difficulties. Already sequcjce ? we arc facing debt Service difficulties, and MR. SPl’AKFR : Whcic have you gone therefore we wanted this on concessional from thc question ? terms.

^ sronr : t o arfzr$r afc s s r SHRI B. V. N UK : It is a question of Fiance and priority should be accorded question, the issue of Spccial Drawing Rights was discussed. Since it Statr mi nt has come up against various difficulties as a result of fhc floating of the currencies and (a) Yes Sii. An exploratory U.S. Tex­ also a*’ «■ result of the delinking of the tile Machinery Delegation led by Mr. doUer (u>nr» Gold, it was decided that there Carroll K Hopkins, Director, U.S. De­ should be .i basket of currencies for the partment of Commerce and consisting of xaluation of the Special Drawing Rights. Senior Executives of the U.S. Textile This would be further looked into by the Machinery Industry visited India between Fund bxeuilive Director and then a deci­ the 28th January and 10th February, 1974. sion taken, because there are many prob­ lems connected with it which have to be (b) The main purpose of the delegation thrashed out. was to assess the market possibility for sale of U. S. Textile Machinery to India in the As far as countries like India, the context of our Fifth Plan requirements. It Committee of Twenty has recognised was indicated to the Mission that white that they will face quite a lot of difficul­ a ffrfo assessment was yet to be made about 7 Oral Answers FEBRUARY 22. 1974 Oral Answers 8 the likely level of machinery imports into MR. SPEAKER : May 1 point out that India for modernisation as well as expan­ this question relates to the visit by a sion purposes, present estimates were that US Textile T¥ade Mission 7 It is not some imports would be needed. It was a comprehensive qnestion. I hope he will also indicated that such imports may have see the question now. to be financed from special credits. The delegation was informed that Government SHRI M. RAM GOPAL REDDY: As was engaged in assessing the level of imports far as I know, we are in a position to ex­ of textile machinery which might be neces­ port our textile machinery. How does the sary during the Fifth Plan Period, in con­ question of importing textile machinery sultation with the Textile Machinery Manu­ now come in ? How Joes the Minister say facturing Industry in India on one hand and that we have to import textile machinery the textile mills on the other. The question from USA ? of imports if any from USA would be de­ cided on the basis of demand for such mn- MR. SPEAKER : You also seem to be chinery, availability of credits and compe­ lost somewhere. titiveness in tcrmR of price, quality and delivery. PROF. D. P. CHATTOPADHYAYA : It is true that we are exporting some tex­ SHRI BIREN DUTTA : It is mentioned tile machinery abroad. Hut our requno- in the statement that there is some estimate ments are enormous. Kven if the entiie of import of textile machinery. May I quantity that we export is retained in the know whether this process of modernisation country, that will be very inadequate to and the import of high speed machinery meet our own demands. Secondly, our will not come in the way of giving en­ demand is for different types of machinery couragement to the cottage and small scale that we need for modernisation and rep­ industries to meet the increasing demand lacement of our worn-out sections of our and also for export’ textile machinery. Our demand is for PROF. D. P. CHATTOPADHYAYA : different sorts of textile machinery. It is The question of import of v textile machi­ different from the types of textile machinery nery has to be viewed in the context of we are exporting. demand for increased textile production, both f 'r home market and also for export. DR. RANEN SEN : It is well known The increased demand is of such a magnitude that our textile machinery manufacturing that even if we increase the pioduction of units are producing veiy highly sophis­ machinery indigenously there will be a gap. ticated machinery. Their capacity to pro­ The gap has to be met from somewhere, duce textile machinery is much more than preferably from indigenous production if what it is today. In view of this, may possible, and from elsewhere if it is not I know how the Minister can reconcile possible, from indigenous production. So, these two positions? Our textile ma­ the question of harming indigenous produc­ chinery manufacturers want to increase tion capacity or of adversely affecting the production but because of the lack of decentralised sector does not arise at all. demand, they cannot increase their capa­ city whereas the Government is contemp­ SHRl R. S. PANDEY : Since there is lating to import textile machinery from a good demand for textiles in the interna­ outside, namely, U. S. A. How does he tional market and we want to earn foreign reconcile these two positions? Simply exchange, what provision has been made saying that our demand is much more does in the Fifth Plan to meet this demand bear­ not convince us. What is the actual po­ ing in mind that half of the textile machi­ sition ? What is the actual demand ? nery has become obsolete and we have to What is the capacity ? How far can it provide for new machinery, automatic be increased ? What is the answer of the looms, spindles etc. Minister in this respect ? 9 Oral Answers PHALGUNA 3, 1895 (SAKA) Oral Answers 10 PROF. D. P. CHATTOPADHYAYA : squeeze resorted to by the financing insti­ A» I have already said, our textile machi­ tutions on a directive issued by the Re­ nery it good but not good enough for serve Bank of India. The possibility of meeting our sophisticated demands. This increasing financial accommodation by way challenge has been magnificently taken by of working capital advances for the Cor­ the textile industry taskforce consisting of poration is under active consideration of technicians and the Government represen­ the Government. tatives who have gone deep into the matter We have every sympathy for our own in­ dustry of textile machinery manufacture. w f fa qraftfcw aror m But the question is that our projection for rwr f tnfae fasrsnm 1 1 f w t * expansion in the Fifth Plan is enormous. ftro erystr ^ r r f f a We need 5.8 million spindles; we need f i w s i # f i t e w r 85,510 looms. All these huge requirements cannot be met entirely by our indigenous t f a w fr'iqiVqpT w m production. Even if our entire indigenous tf*tf afor f -1 < *w w r) production is retained, as I have said, that n jsrrrar tf" sfaT f i is not enough. Secondly, the type of stfrt ^rprr ^ fa wm w machinery that we need is also impor­ w f k f , $ $ srft Trssf tant. Some of the types are not produced at all. Thirdly, I would like to add that qtf m tf f , apn t f t o simply because the U. S. Mission has come, t * there is no commitment, there is no de­ w r q r a rffa r s *TRtfhr cision taken, that we are going to pur-' w sngf tf tf antf ? chase from the U.S. Mission alone. It depends upon other factors also, the pricc SHRI YAMUNA PRASAD MANDAI.: competitiveness, the time of delivery, the That was by way of an example. Can the the quality, the credit terms, etc. etc. hon. Minister give the purchase figures in respcct of some cotton-growing Statei,— Cotton Corporation in a Financial Haryana and Punjab also; because Punjab difficulty grows a very good variety of cotton.

*44. SHRI YAMUNA PRASAD MAN­ t m v r h w tf DAL : Will the Minister of COMMERCE ^ w m ^ t f vrtm i be pleased to state : PROF. D. P. CHATTOPADHYAYA: 1 (a) whether Cotton Corporation of am very grateful to the hon. Member for India is in financial difficulty; and appreciating the role and function of the Cotton Corporation of India. About his (b) if so, the reasons therefor? query regarding the CCI’s purchase plan during 1973-74, in respect of Gujarat, for THE MINISTER OF COMMERCE example, the c&timated production in Guj- (PROF. D. P. CHATTOPADHYAYA): rat is likely to be 22 lakh bales, and the (a) and (b). So far as the working re­ CCI proposes to purchase 12 lakh bales. sults of the Cotton Corporation of India About Punjab, Haryana and Rajasthan Ltd, are concerned, the Corporation has taken together, the estimated production been consistently making profits since its figure is 18 lakh bales and the CCI pro­ inception. However, in relation to the poses to purchase eight lakh bales. market purchases of cotton, the Corpora­ * wjur tram »hrw s arcm f*ra*rf tion requires substantial credit facilities from the financing institutions and there been some difficulty for the Corpora­ t w t w f f a ** # t o W b r *+ ssiuft tion on account of the recent credit sfar t f aift z w i rs 11 Oral Answers FEBRUARY 22, 1974 Oral Answers 12 s r i k sft £ i M w e ? m * paying handsome dividends to the farmers and it cannot be black-marketed as ground­ nut oil or any other things. If credit ift irsn f fnrfvf ftp 4WcrH squeeze is imposed, 1 would like to know qywftfcq art? 3w $ m fc w artf, whether the hon. Minister will take up wrfas i v w r cHHifiW $t ? with the Reserve Bank not to impose any credit squeeze on such commodities which PROF. D. P. CHATTOPADHYAYA: I will go to help the farmer* and it will have mentioned that. But the Reserve also facilitate monopoly purchase by the Bank of India has its own larger point of Cotton Corporation. view, has its own difficulties. So, in resort­ ing to, and implementing, thc ctcdit PROl. D. P. CHATTOPADHYAYA : squeeze policy, thc Reserve Bank has its As 1 have already said, we have taken up own piiorities. We ha\e taken up thc thc matter with the Reserve Bank of India matter with the RBT. Thev arc sympa­ and their response is sympathetic. thetic. But even otherwise we are trying to sort out thc things and we hope that About thc other questions of alleged we will be able. corruption, 1 can only submit that if there are any specific allegations brought to our tft *Tir*r w w *m : apmr 7-rt notice, wc will he very glad to look into *r Tif arfWrc *fcrm and remedy them. arf? q mri?nrii our notice. Vi£ W fU *PT ^ TTC^WTW 2F7 TT^T m i ^ ^ wNrnr t e n £ h tit marram w& nm : ?r*it ^ ?r^ £ f a f^FPT ^ 3FTT MWd jRS\7 7T3RVR 4 rpTTTTR fclTf srraT £ i ^rr ^ ^rtrnr jf w rvn *rc n r apcTsft 270 r»rRr ariV 300 Tvrf 4 ffrsns’ fcprnr zrf wnqT?fgrT *rr h r? if t[ srN rtf '4, q7-^ *nr frn-nr ix? t§r*M ^ i t *nf f ? o t W -rt h ft 270 m *t 300 71. 300 71 5(t 330 T> ?t IPX, PROF. D. P. CHATTOPADHYAYA: *nr srrffr anfV**: faqfcr Tgrrar sN 4 We have not prevents l thc private trader _____ * ___ j r a . to purchase. But, consistently, with our w o r «t ir>$ stm^‘;it own policy, we are trying to see that thc r ^ r r , m 330 w r r 300 vtf t Cotton Corporation assumes u command­ 300 r> o t? :joo n 330 r> f t rr*rr, ing height in the purchase of cotton so frr, ftp w $ 13 Oral Answers PHALGUNA 3, 1895 (SAKA) Oral Answers 14 srepfeg frm f qnmr artfM 4 *swt PROF. D. P. CHATTOPADHYAYA: The CCI decides its price policy from time 4 srtW £ 3ift amr tNAfie? to time depending upon its own commer­ atf ^ 5 ^ qr*r ^ ^srr^ qfa *h^Wte7 «st cial intelligence and commercial judgment. %m f^ r r £, tertf *pt ^vwr There is no uniform price for all the ^ ff ? States. There are States like Maharashtra. Till a few days back there was monopoly PROF. D. P. CHATTOPADHYAYA: purchase price. So. it all depends upon Thc CCrs policy is to purchase cotton the commercial intelligence and commer­ as for as possible directly from the gro­ cial information available with the Cotton wers. There may be some cases where Corporation. it may be possible that they may have Financial ventures by Banks for Power purchased from thc middlemen. But the Generation and Housing Programmes policy is to purchase as far as possible lrom the growers directly. + ’47. SHRI M. RAM GOPAL REDDY: SHRI S. R. DAMAN1: The hon. Minis­ ter has mentioned about thc quantity that SHRI JK. MALLANNA: the Coiporation is going to purcha.se, or it Will the Minister of FINANCE be pleas­ has decided to purchase. May T know ed to state : fiom thc Minister whether along with thc quantity, any price has also been fixed (a) whether the Governor of Reserve for the purchase of cotton from thc various Bank has told thc States that thc banks St.ites? If so, what are the details in this could not finance ventures like power gene­ icgard? ration programmes and housing because of great pressure on bhnfc resources ; PROF. D. P. CHATTOPADHYAYA: It is a very large question. Sir. ft is a very (b) whether the State Government re­ important question, 1 don't contest that. presentatives have sought further accelera­ Hut 1 am supposed to answer the ques­ tion of credit to priority sectors, faster tion about thc financial difficulties of branch expansion in rural areas and liberal cotton weavers. Jf he writes to me about linancing of industries in backward areas; this thing I will be glad to collect and and supply him thc information. (c) if so, the reaction of Government in this regard? SHRI S. R. DAMANI: He has men­ tioned about the quantity. I would like THE MINISTER OF STATE IN THE to put a question with reference to that MINISTRY OF FINANCE (SHRI K. R. only. At what price they are going to GANESH : (a) to (c). A statement is purchase? That is what 1 asked. Has laid on the Table of the House. that policy decision been taken in the Statement matter? My question is connectcd with the reply which the hon. Minister has al­ Presumably the hon. Members are re­ ready given in this regard on the floor of ferring to the views expressed by the Gov­ the House about the quantity. ernor of thc Reserve Bank and the repre­ sentatives of the State Governments at the MR. SPEAKER: The scope of the Second Meeting of the Regional Consulta­ question was a little expanded by the first tive Committee for nationalised banks for gentleman who put the question Shri Y.P. the Northern Area held at New Delhi on Mundal. He went to Gujarat and other thc 2nd January, 1974 under thc Chair­ places. In spite of the fact that I invited manship of the Union Finance Minister. his attention to relevancy you replied to it and how you are the victim of your reply. At this meeting the Governor referred You can better answer it now. to the increasing commitments of the banks 1$ Oral Answers FEBRUARY 22, 1974 Oral Answers 16 in subscribing to the market borrowings of SHRI K. R. GANESH: It means that the Central and State Governments and the banks have got money to be made their corporate bodies and in meeting the available to various sectors. Electricity as credit requirements of the priority sectors. well as housing are the long gestation Against this background, the Governor felt period projects. The banks would very that it may not be possible for the banks much like to roll their money as early as to lend substantially for power generation possible. The general strategy of thc schemes and housing programmes, many banks has been to finance short-term pro­ of which may not be strictly bankable, jects and to give working capital. The except indirectly though subscription to Reset ve Bank of India's Governor had the market bonds that may be floated by said that for these Jong term gestation these bodies. period projects like housing and electricity funds are available in other sectors, i.e. At this meeting the representatives of in planning and various other things under the* State Governments stressed the need the State Governments. It may not be for opening more bank offices particularly possible for the commeicial banks to do in the rural and unbanked areas and for so. A certain liquidity ratio has also been stepping up flow of credit to priority sec­ fixed for the commercial banks to financc tors and for industries in backward areas. the projects. These are all accepted objectives and it SHRI M. RAM GOPAI RF.DDY: Sii. has been and would continue to be the the Minister has said that the Ministers endeavour of the banking system to from the States have requested the Reserve achieve them. Bank to open more branches in ruial areas. But, while opening the banks in SHRI M. RAM GOPAL REDDY: Thc the rural areas,, arc they also taking am Minister said ‘for power generation precautionary measures to avoid thefts and schemes and housing programmes, many other things. In Andhra Pradesh, recently a of which may not be strictly bankable’ etc. sum of Rs. 6 lakhs had been looted from This is what he says in the statement. May the rural bank. So, I want to know from the I know about thc details of the amounts hon. Minister what is the policy in this which have been advanced to these two regard? While opening the branches in institutions? If so, what is the experience? the nual areas, whether any precaution will be taken to give protection to the SHRI K. R. GANI'SH: Sir, immediately employees in thc rural branches. I do not have thc facts. The question relates to certain discussion which took SHRI K. R. GANESH: This question place in thc zonal Committee of the Nor­ is not understandable because the demand thern Consultative Committee in Delhi. is to open more and more banks for the The question related to certain representa­ improvement of the country’s economy. tives of States demanding credit from the According to that policy, more and more commercial banks for housing, for gene­ banks are opened in the raral areas. And ration of electricity and electricity distri­ commercial banks are also going into the bution purposes. rural areas. A majority of the banks have been opened in the rural areas after na­ He is asking a specific question whether tionalisation. He is raising a specific any advance has been made at all. I do question about thefts and security and not have the figures with me at the mo­ vigil to be given to those branches. They ment. But. I can supply the same to him. would have to be dealt with in that frame­ work. SHRI M. RAM GOPAL REDDY: Yon said that it is not strictly bankable. What sft fT H lR fliwH : arwr$r qrf M . do you mean by this? w e ^ stpt m ’tm 4 sttctA 17 Oral Answers PHALGUNA 3, 1895 (SAKA) Oral Answers 18 y rfq fln tf «pf it o r effect that such restrictions would be re­ snrpf 4 Sen? ^ sfrsf mpd fa m arraT *tt moved. Otherwise it will result in dissatis­ faction in the rural backward areas. ^ m ftprr f , ?*r m *fsrcf «f*T *r? d W # t t f a ^ rrif SHRI K. R. GANESH: There is no 5THP 9rW JTTO* a m p i ^ lestriction as far as the prioiity scctors are concerned. sinf ftft) arrtf ?nfa ^ an tf *R?rr w fr ? srrrf if JTfFr ^ ^ r SHRI K. LAKKAPPA : Restrictions are ?*m?r t i ctffforq ?rfar *re>Fr * r it# ^ there and loans have not been given even for garo-based industries in thc rural parts, f?P3 ^ < w w ^ i ^ t^ t? *ft and all the banks are refusing leant*. ST T ^ ^ ^ ^ fa? W rf ^T f 9 SR1 3TPT?TT 3RTT 3fT^TT MR SPEAKER: I am very much in sympathy with thc hon. Member because f ’ ior such a long question the hon. Minis­ SHRI K. R. GANESH: Whatever re­ ter has given a very summary answer. I sources an* available with commercial think he canot help it. That is all I can b inks those will have to be allocated say. .ucoidinp to ccitain priorities. There are SHRI K. LAKKAPPA : I want answer P'ujutv sectors. Ariculture, small scale foi that question. May I know whether industry road transport, self-employment there are restrictions or not and whether ek are some ot the priority sectors. the testrictions are going to be removed? St me ol the banks have given advances to thm Jvcount4ioldets also for building SHRI K. R. GANESH: I have said houses so that they may be able to main- that there are no restrictions as far as the t.un the surplus available money to them. prioiity sectors are concerned. I tannot indicate any strict policy in re* Paul to this as it would depend upon the SHRI M. SUDARSANAM : The ciedit «i\ ailable resources and the allocation to squeeze has not achieved the expected re­ various sectois. In thc interest of the sults. In fact, the production is seriously o'onomv. it is necessaiy that it goes imme- affected because of the credit squeeze. May ilMtch to the prioiity sectors. 1 know whether Government are prepared to reconsidei thc position ? SHRI K. LAKKAPPA: Mr. Speaker, SHRI K. R. GANESH : Credit regula­ Su, the very purpose of nationalisation of tions do not fall within the purview of banks has been defeated because of thc the mam question. If you desire, I shall rctrn' restriction that has been imposed in try to reply to it. accelerating the process of credit facilities in backward areas. For example, restric­ MR. SPEAKER : As you please. tions have been imposed for agro-based in­ dustries in rural parts of the country. That SHRI K. R. GANESH : The first thing restriction has not been removed. is that it is not chredit squeeze but it is a question of the credit regulation and MR. SPEAKER : Mr. Lakkappa, no in­ planning, and it was very necessary in the troduction please. Please put your ques­ context of the present situation, in the tions. context of controlling the accentuation of thc inflationary spriaJ. As far as the SHRI K, LAKKAPPA: My point is priority sectors are concerned, as far as that such restrictions on agro-based indus­ export is concerned, as far as thc bill tries will create more problems in the market scheme is concerned, and for all already undeveloped areas. So* I would genuine production requirements, it has like to know from the hon. Minister been stipulated that credit will be avail­ whether he would give an assurance to thc able. 19 Oral Answers FEBRUARY 22. 1974 Oral Answers 20

m m v r wbww i said, purchases cotton from the farmeis. tf W tf f a W ^*IT *R| fa*JT 1* \ has not been given credit facilities for increased purchases, though it is running «ri * rt sr$ f fa *r# faw i* tffa r at a profit. How is it that the Reserve V* ift *nft tf* f a 5fW i t TORTT tf « !# Bank does not allow credit to all these 1W 75T if, WVr TOT uwf fr *f* three important sectors which according to ^ i t o w ^ro°r tf* f a w Government are priority sectors? What is «tf w fair i?r w 4 m w sntf tf4 the concept of Government in this regard as also that of the banks? Is there anv fasiW c w tf1 a ft m irwn?

SHRI K. R. CiANLSH : I do not under- As far as the electricity generation anJ stand the hon. Member’s question if he housing arc concerned, because of the fact is referring to the present credit regula­ that for these provisions are also there in tion. other sectors, for example, the Planning Commission makes allotments and it is MR. SPEAKER: His question is under the Plan, and availability of finance whether because the previous loans weie with the commercial banks is affected, and not repaid, this has been done. recently certain liquidity ratio have also been fixed, it was opined by the Reser\c SHRI K. R. GANESH: Thera is no Bank in that particular meeting that be­ restriction of credit because certain loan* cause all these are long-gestation projects, have not been repaid. These arc ail pro­ the commercial banks may not be able to vided for in the balance-sheets, and go into this. various other bad debts are also provided As for the second aspect concerning for. There will continue to be some bad rural electrification, the question of en­ debts. There is no restriction of credit ergising pump sets etc., the Reserve Bank just because certain bad debts may be has indicated that it will continue to gi\c there. assistance. SHRI BHAGWAT JHA AZAD : May Free Trade Zones I know whether the concepts of priority of the Government as well as of the Re­ *48. SHRI P. R. SHENOY: Will the serve Bank are one and the same or they Minister of COMMERCE be pleased to differ? If they do not differ, how is that state : in the case of power which is so essential (a) whether there are any “free /ones” for increased agricultural production* in the country where industries are allowed housing which fe the immediate need of to sell on liberal terms goods meant for the people according to the Government \00 per cent export and if so, which are and the Planning Commission and for those zones and what are the liberalised measures to achieve commanding heights terms; and of the economy, advances are not being made available? For instance, to achieve (b) whether there is any proposal to the commanding heights, the Cotton Cor­ establish some new “free zones” of this poration which as the hon. Minister has type? 21 Oral Answers PHALGUNA 3, 1895 ( SAKA) Oral Answers 22 THE DEPUTY MINISTER IN THE SHRI VASANT SATHE : He should not MINISTRY OF COMMERCE (A. C. have said ‘No’. ‘No’ means there is rao GEORGE) : (a) No, Sir. free zone. The answer will mislead thc nation. (b) Does pot arise. SHRl A. c. GEORGE : I am prepared SHRI P. R. SHENOY: 1 must say to answer all these in supplementaries that the answer is incorrect and evasive and (Interruptions ). r must protest against this type of answer, just because a coma is missing some­ SHRI D. B. CHANDRA GOWDA: where in the question, for which I think Please see the second part of the question, I am not responsible, the MiniMei t.innot whether there is any pioposal to establish brush aside the whole question. The some new free zones’. question is regarding itee zones. The intention is very dear. I asked whether MR. SPEAKER : 1 will look into it. there are any free zones in India. I want a reply to that. There is a fiee /one in SHRl P. G. MAVALANKAR : The Santa Cruz where industries are allowed to heading ‘Free Ttade Zones’ is very clear. function on liberal terms provided they sell only abroad. Then therj is the Kami) i SHRl VASANT SATHK : You Must port free zone. So f say it is an evasive protect us. You cannot allow him to get reply. away like this.

SHRl A. C. GEORG1. : Mv answer, 1 SHRI A. C. GEORGE : May I be humbly submit, is not incorrect. The mem­ permitted to read the second part of the ber asked a specific question. He has not question also ? II is ‘whether there is any confined himself to free tiade /ones in proposal to establish some new free zones the country; he has qualified it by saying of this type’. 'where industircs are allowed to sell on liberal terms’. SHRl VASANT SATHE: Again it is evasive. SHRI P. R. SHFNOY : A coma is miss­ ing there. MR. SPFAKTK : To my knowledge, the Minister is never given to evade or avoid SHRI A. C. GEORGE : It is not a questions. He is sometimes as zealous that question of a coma. He has qualified it he comes out with answers to questions by saying ‘where industries Hie allowed to which are not even asked. There is u sell on liberal terms’. That is not allowed tendency among certain departments to just in the Kandla free trade zone or in the get hold of a coma or full-stop and bring Santa Cruz area. the answer to the Minister. 1 think the Minister was too busy to notice that. SHRI VASANT SATHE : T his is unfair. Otherwise he is not such a person. I He should have said that theie arc free have my views about it. Kindly sit down. trade zones but they are not allowed to You better re-examine this question and sell on liberal terms. To say ‘No* and give the reply to the Member later on. ‘Does not arise’ is not fair at all. SHRI A. C. GEORGE ; Even now I MR, SPEAKER : No. It is very unjust am prepared to answer the supplemen­ to make such observations. If there had taries. heen any misunderstanding about the free zone, the Minister would have easily cor­ MR. SPEAKER: In the light of thc rected Shri Shenoy. But the member has observation, you supply him the informa­ qualified it by saying, where this happens. tion, and do not stick on to this. 23 Oral Answers FEBRUARY 22, 1974 Oral Answers 24 SHRI VASANT SATflE: ?h* Home is THE DEPUTY MINISTER IN THE entitled to have a reply. He is wilting to MINISTRY OF COMMERCE (SHRI reply, and so why don't you allow him to A. C\ GEORGE) : (a) and (b). Pnftgram* do that? me for the development or handicrafts sector during the 5th Five Year Plan has MR. SPEAKER: Where is Vayalar been formulated involving t financial out­ Ravi to protect him! lay of Rs. 8 crores. It is expected that this programme, supplemented by the develop­ SOME HON. MEMBERS : Supplement­ mental programmes of the State Govern­ al ries. ments/Union authorities would provide employment to additional 3 to 4 lakh MR. SPEAKER : 1 am not allowing persons. For the year 1974-75, implemen­ anything. Where the answer is “No, Sir” tation of the developmental programme to and “Does not arK\*’ the Members are the extent of Rs. 1.07 crores has been plan­ clever enough to laise questions even in ned. spite of that. SHRI BIRENDER SINGH RAO : SHRI BHAGWAT JHA AZAD : In the Indian handicrafts have a great export House also he wants a protection /one foi potential. Would the Minister be pleased himself, and he wants protection fioni yon. to state what is the actual turnover from Indian handicrafts during thc last year, SHRI P. R. SHENOY: He has not how he proposes to increase it, whether answered my question. What is wrong any facilities are being provided in the with my question, Sir? 1 would like to handicraft sector to give training to artis­ see my question in thc original form. ans and also to give loans at cheap in­ terest? MR. SPEAKER : You are quite right. SHRI A. C. GEORGE : Our export of I have been defending vou also. handicrafts is steadily increasing. In 1971- 72. our export was of the order of SHRI P. R. SHENOY : Hut defending Rs. 38.8 crores and in J 972-73 it has come without getting any replv. up to Rs. 51.8 crores. Oedit facilities are provided through the State Handicraft MR. SPEAKER : 1 have asked him to Boards and the co-operatives From the give a reply later on. Let me know what Central sector, the All-India Handicraft type of reply will suit you. r can ask him Board is giving them necessaiy facilities to send it to you. Now. next question. to develop new products, new implements and methods of manufacturing. Creation of More Employment Opportuni- SHRI VASANT SATHE : Would thc ties in the Handicrafts Sector hon. Minister be pleased to state what is t the number of persons employed in the ♦SI. SHRI BIRENDER SINGH RAO : handicraft sector today, and by what SHRI MOHINDER SINGH GILL: number have they increased during the last Will the Minister of COMMERCE be two years and what steps are being taken pleased to state : to see that this number increases ? lh at is the main question. (a) whether some measures to increase employment potential in the handicraft SHRI A. C GEORGE : This is a highly sector nave been under the active consi­ decentralised and dispersed sector. In deration of bis Ministry; and 1961-62, it was estimated that handicrafts employed nearly ten lakhs of craftsmen (b) if so, the progress made in this and in 1971-72 it had gone i.p to 14 lakhs. regard ? Our intention is to increase it by another 25 Oral Answen PHALGUNA 3, 1*95 (SAKA) Oral Answers 26 fou r lakhs by developments like provision to raise it as much as possible. There are of marketing facilities, more export pro­ certain sectors where it is less labour inten­ motion, designing more aad more new sive and great skill is needed and the tradi­ products and improving their methods of tional skill is handed down from father production. to son. We have identified them arid we are taking particular care about that also. SHRI D. D. DFSM • In \i<*w of the difficulty of a\ailability of capital lor Procurement of new jute by J.C.I. heavy industries, do the Ministry think of establishing institutions for training pei* 54. DR. RANEN SEN : Will the Minis- sons in handicrafts and thereby reduce tei ot COMMERCE be pleased to state • unemployment in the country ? The per capita investment in the heavy sector is (a) whether the procuienient target of substantial. raw jute by Jute Corporation of India was fixed quite low in 1973 e\en though there SHRI A. C. GEORGE : Handicrafts are was a bumper jute crop; being handled both by the Central sectoi as well as the State Governmental agen­ cies. In the Cential sector we have got (b) whether due to this the raw jute piovision for 8 crores in the Hfth Plan prices fell considerably even below the and in fhe first veai might spend about already Jow fixed price; and Rs. 1.07 crores, apart fiom the fact that (c) if so, the steps taken by Govern­ the State Government have a variety of ment to augment the purchase of law activities and a number of agencies to jute ? take care of this sector. During the Fifth Plan our intention is to increase exports handicrafts to Rs. 110 crores; for this THE MINISTER OF COMMERCE we have chalked out an ambitious pro­ (PROF. D. P. CHATTOPADHYAYA) : gramme. fa) A target of 10—12 lakh bales, which was consistent with the capacity of the SHRI P. G. MAV M.ANKAR : Ihe JCI and the cooperatives, was fixed for Minister in his original reply referred to the season. increase of 3.4 lakhs; subsequently he said employment for four lakhs of people. (b) No, Sir. This is a wide gap. Can he tell us how many more people really he has in view for this employment? Secondly, there are (c) The purchase target of the Jute Corporation of India repiesents n substan­ certain handicrafts wherein the employment tial increase over the last year, and with potential is less because the art is practised by a few people and unless more assistance a view to ensure adequate off-take, besides and funds are given to these specialised enlarging the volume of operations of the handicrafts, they will die out in the next JCI, Government have also utilised the couple of years. What is the Government provisions under the Jute (Licensing and going to do about that also? Control) orders to make the industry pur­ chase substantial quantities of raw jute. SHRI A. C. GEORGE : I pointed out earlier that this was a highly leccntralised DR. RANEN SEN : The reply to part and dispersed activity. When we speak (b) of the question is totally misleading. about employment potential, 1 hope the It is known to everybody that the price hon. Member will appreciate that it will of raw jute has fallen considerably, even be difficult to quantify precisely the in­ below the target figure. Sir, if you will crease in employment. That is why I permit me, I am prepared to lay on the said three to four lakhs. Our intention is Table a statement containing tbe actual «2 LSS/73—2 21 OraI Answers FEBRUARY 22, 1974 2ft prices pr evailing in the Calcutta market. WRITTEN ANSWERS TO QUESTIONS May i know whether it is a fact that the West Bengal Government, as also many Trade ftoMfami bcteftm Italy M il Members of this House, wanted the pricc for raw jute to be increased I li so, mav *43 SHRI 1NDRAJIT GUPTA: I know the reason whv the Government is SHRI RAM PRAKASH : keeping the price of raw jute down ? Will the Minister of COMMrRCP be pleased to state . PROK D. P CHAIT OPA' )HYAYA It is a fact that many hon Me.nbcrs have (a) whethei theie is a largo scope tor laised this question But th; point is that developing trade and economic coopeia- the Agricultural Pi ices Commission has tion between Italy and India, and gone into the matter, the Agriculture Minis­ (b) if so, the main leatuies thereof ° try of both the State Governments and the Central Government have looked into the 3 HF DFlMJTY MINISTTR IN 1HF cost of production of iute and thev have, MINISTRY OF COMMI RCf (SHRl in fact, suggested something less, to Ahich A. C. GEORGE) : (a) Yes, Sir There is we did not agree; we had agreed to some­ considerable scope for do'c!optr*g trade thing mote. So, the pi ice of Rs. 157.58 and economic cooperation between Italv pei quintal is something substantially more and India. than wbat the Agricultural Puces Commis­ sion suggested, namely, Rs. J25 per quintal (b) A promotional C ommei ua! Deve­ So, we have tried oui best to help the lopment programme its proposed to be jute glowers But it is a fact that be­ launched for Developing trade and econo­ cause of the inadequacy of the network mic cooperation between India and Italy. of the purchasing centres, we did not suc­ Such a programme will include identifica­ ceed in all cases. Our endedvoui would be tion of pioducts which have potentials in to do it in the next ' ear, as fai as the markets, the sectoi which offer scope possible. for collaboration, particularly on an expoit- oriented basis, facilities foi cre<*tion/expld- nation of export-pi eduction base, product DR R\N 1N SF N It i, known to the adaptation and modification, packaging and Mimstei that both the West Bcupal and other marketing promotional measures Bihai legislative Assembly woikcJ out a Italy, as a member of the I uropean figure, which is much above Rs. 157. Economic Community, has extended a It is not only the Ccntial Minister and the Ministry which went into the cost of number of tariff concessions «o India s products She has also extended C»SP con­ production. When the West Bengal legis­ lative Assembly fixed Rs 180 for quintal cessions to India Efforts will be made to it also went into the cost of pioduction. utdise such concessions effectively and ex­ May I know whether these factors were peditiously. taken into consideration by the Minister9 Rise in Prices of Essential CommodMe*

PROF. D. P. CHATTOPADHYAYA ■ '45 SHRI S. M. BANERJFh ; In fact, when Rs. 157.58 per quintal price was decided by the lute Corporation of SHRI BHARAT SINGH CHOW- HAN: India, the view of the Agiicultural Minis­ ter of West Bengal was taken into consi­ Will the Minister of FINANCE be deration. In fact, he was present theie and pleased to state ; I too. (a) whether prices of all essential com­ modities have shown further increase during 29 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answer* 30 the last four months, particularly in Decem­ commodities as groundnuts and groundnut ber, 1973 and January, 1974; oil. In the circumstances, the usual sea­ sonal decline associated with the period

53. SHRI H. M. PATEL : Will thc _ ^ M ^ ^ Minister of HNANCF be pleased to state: ^ ^ ™ ^ ‘

(a) whether a large number of importers ^ » cv , . have not been able to clear the imported . afTCFT *f» Jmnrf*T 4 goods from the customs owing to non- *r JPHT 9l°fr 4 ynTVm SITtnnTrtfT availability of finance following freezing 4 *mr TO fanfa fanf »ref ^ ; 3T?V of the credit limits by the banks; (ST) TO w faw faaf- (b) the revised procedure recently in- fr?T fa«ir T O £ ft tH t ^ irodnced by the Reserve Bank regarding grrfcrrf ajft ! » w v h r f n r t 4 the credit hmlt, by the bank,; ^ ^ f ?

(c) whether importers have formally f m r ifA ______« * « — « - (d) if so, thc reaction of Government ^ N f 1!f’SR’ anwhr fw rfrs rf tR fTT®RT7 thereto ? fa^TR ^R7 £ I 35 Written Answers FEBRUARY 22, 1974 Written Answers 36

car) a tr a k 3 M i4 4 oar) «rftr i t f w r f 4 far? 700/- 4 qft ¥ w - 4 srer Jr t W wwvt 4 fm m xx fr*r » tv <1 TO ^rn M m ^rcr ige/- 3Tr ^rapnt, aru ^ 1 c?r) 4%

(b) There in no programme at present w s «rt w r r& 4 ^ under contemplation for expansion of the wi aforesaid Youth Hostels in the Fifth Plan period But the construction of additional *38. ^ w m rsr: \outh Hostels at Htunpi and Pondicherry and possibly a few othei placets is pioposed f . farrf m t e r : duung the Fifth Plan period. TO ^ ^TFt ^ «pTT »rnWt vi^srhft, s n r n w , *r ^rr (?r>) t o swfiW

m t o wrsTR t o 5“ H 4 ^ m , arRTsmr, ^ t - mfenv ihnwv # ^ q. 3R- ^ wfam 4 srfcr w^r ^M ) : (ap) 3rf? («T) h M ^ n o r **>7 c^l^Ul ^ | 3IT ^fTT ^ ?«f> vRTf cHf> ^ 37 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 38 farftr ** s f # f t 9iwt x v m savings in petrol consumption by depart­ mental vehicles and on telephone calls; economies in expenditure on entertainment ^ hr*n 3tht‘mfr? i and foreign travel; economy in expenses in* solved in holding of conferences, seminars Adfevenkent of Economy Measures and meetings; keeping to a minimum in* Announced by Government vitations for holding international gather­ ings; directing the public sector undertakings " 59. SHRI VAYALAR RAVI : Will the to minimise their cash losses by generat­ Minister of FINANCE be pleased to state : ing more internal resources through efficient (a) whether the economy measures functioning, etc. announce*! by Government have been suc­ cessful id curtailing the plan as well as 2. Tn addition, it was found neccssary non-PUn expenditure of Government and to effect economies in Plan expenditure as the figtii e*- relating to the achievements so wdl This was done in such a manner that iai in different sectors; progress of key projects and programmes which are essential and are in an advanced (b) whether Government propose to stage of completion was not affected while further oat down the Government expendi­ pi ojects and schemes which arc not essential ture in cirfferent sectors; and and will require a relatively long period to mature were slowed. A saving of Rs. 100 (c) »f so. the natuic thereof and the ciores was also proposed in General assis­ s’eps taker foi the stiict implementation of tance to State Plans. decision*. taVen in that direction '' 3. It was expected that there would be THF MIN1STFR OF FINANCE (SHRI an agregate saving of about Rs. 400 crorw j Y RSHWANRAO CHAVAN) : (a) to (c). of these measures. \ statement is laid on the Table of the House. 4. These economy measures have been implemented, by and large, bv the diffe­ Statement rent Ministries/Departments. 1. in ordei to control inflationary pres- 5. Assessment of savings so far made siues in the economy, a series of steps were in 1973-74 in the different Ministries/De- introduced this year to effect economies in partments is given in the Statement laid on (he budgets of different Ministries/Depart­ the Table of the House. [Placed in Library . ments with a view to reducing the extent No. I .T-8187/74}. These saving do of defic't financing. In addition to economy not, nor were they intended to take into Pleasures already in force, further econo­ account the additional liabilities devolving mies introduced in the non-Plan expenditure on Government on account of revision of of Government were : pay and allowances of Government servants, food subsidy, additional assistance to States cn account of natural calamaties. etc. and Economy in contingencies and travelling certain additional funds allowed to several allowances; deferment of construction of Ministries/Departments on account of key non-functional buildings which have not projects and schemes. pioceeded beyond the plinth level; defer­ ment of annual repairs and maintenance 6. Many of the economy measures, men* oi Govt. buildings except a few prestigious tioned in paragraph 1 above, are to he building; ban on creation of new posts continued during the next financial year which have remained vacan for more than ul«o. Instructions have already been issued months; deferment of rotational ti ans­ foi strict implementation of the measures wer of officers in various branches of Go­ relating to deferment of construction of non­ vernment to save on transfer allowances; functional buildings, annual repairs and 39 Written Answers FEBRUARY 22, 1974 Written Answers 40

maintenance of Government buildings, ban

on creation of new posts which have re- (b) The matter is under consideration in mained vacant for more than six months, consultation *with the concerned authori- and savings in petrol consumption by de- ties. partment vehicles and on telephone calls. Loan Advanced by H u i Qazi Branch of State Bank of India, Delhi to Mercury Visit by Tirade Delegation from Cable* Bangladesh 402. SHRI Y. ESWARA REDDY : Wil’ *60. SHRI M. SUDARSANAM : Will the Minister of FINANCE be pleased to the Minister of COMMERCE be'pleased state: to state : (a) whether the State Bank of India, (a) whether a Trade Delegation from llauz Qazi branch, Delhi advanced Bangladesh visited our country in Decem­ Rs. 10,000/- to Mercuny Cables, Delhi-6 ber, 1973; and .(gainst bags for raw materials; (b) if so, the nature of discussion held

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(^s> * r w tt^ pt «♦*■ "qM im ^ htfhr «r 3r^r nkwri ^ sife^rt ^ ^rnr t o ^ fcrw ft ^tr ^=r to ^ m w # arr^ fwih# 4 43 Written Answers FEBRUARY 22, W 4 Written Am w en 44 fortf i m ft, ia74 m * m to obtain a copy of thin form on j ayment of a nominal fee of f r m w n f l •3TRTT ^ STRft f H Re 1 /-. a r w # r * m arato 4 vgn Surplus Mots In Indian Airlines ^57 vMI I 40B. SHRI BISWANATH JHUNJHUN- Rejection of Claims by l» I. €. WAIA : Will the Minister of TOURISM 407. SHRI BISHWANATH JHUNJHUN- AND CIVIL AVIATION be pleased to WALA : Will the Minister of FINANCE state : he pleased to state ; (a) whether an apprentice pilot has to (a) whether Govcinment are aware that sign a bond for Rs. 25,000 lor fiive years, L. 1. C. is rejecting thousands of claims no such obligation has to be undergone by and forfeiting the premia paid by policy thc senior pilots in the Indian Airlines; holders for one reason or thc other: (b) if so, the number of claims rejected (b) whether after rationalisation a large during the last two years aftet their inabi­ number of senior pilots will be rendered lity or death of policy holdei with reasons suiplus to the needs of Indian Airlines lor rejection in each and the value of thc and if so, whether these pilots would be policy, and fiee to join any foreign airlines; and

(c) whether Government propose to (c) whether this will lead to 'pilot drain’ consider the desirability of simplifying the and if so m what way Government propose proposal-* form and attach a copy thereof to deal with the situation so that the best with the policy also ? t'dents do not suddenly go out ot i. A. and they are also not to a heavy loss othei- 1 HE MINISTER Ol HNANCl' (SHRI wise? YtSH^ANTRAO CHAVAN) : (a) No, Sii. Government understand that in respect of those policies which become cjaims by THF M1N1STFR OF STATF IN THI death within a short period of 2 to 3 years MINISTRY OF TOURISM AND CIVIL fiom the death ot the commencement of AVIATION (DR SAROJINI MAHISHI) : the risk, a thorough investigation is con­ (a) Yes, Sir ducted and if it is proved to thc Satislac­ tion of the Life lusuumcc Corporation ot (b) and (c). All senior pilots in Indian India that u particular policy \vi>s obtained \irlines are flying on jet aircraft. In the by fraud or by suppression of information light of thc plans under contemplation foi material to thc risk, the cla.in is i ejected. expanding jet operations, it is not expected that any of the jet pilots in thc employ of (b)

(c) ihr f:1ctors that are responsible for THE DEPUTY MINISTER IN THE lite price ri<, e and what steps are being MINISTRY OF COMMERCE (SHRl /\.C. tet k~ n h"., ;::.-rc') t it ? GEORGE) : (a) and (b). Government of Kcrala have proposed extension of the T ::•.' for Decembe r 1973.

1c) -~·,._ r is e . 11hich took rhcc mainly in tt1c ... ,, :; t il o l' ~; ovcmber . \\cis lc1r·gc ly due lf\ • ; :~-- _ l n c rc-~1sc in i...;su e prices of food- -t il . .;r ~ ~ ~: "FFT ~ fr" in':, "- - ": lJ 11 ·2 111 o n hig her rroeuremcnt ~ ~ "~ GR ciT "VTT ~ ~ , I'' :.:c: -, .. , .,·d to pmduccrs. The higher ~ o !'' "(;lln'rr;c-t p rices a re intended to built up ( qi)· 1''1\llf ~8 fl..' I n:Jurc (' owcrloorn~ in the Coopcrafi,·c ~ection err) ~ ~

1< •.) 'uthcr his ivlinistry in consulta- tiun ,.,,,, the Ministry of Finance is cxa- in:ni n ~· . ~,:.. "l ll~·.gcstion of ~ 11lowing: interest 1971-72 i'fm 1972-73 Cli qfnrr ~ ~ ,.. ' . 'L 'bsid y - the financing of po11erlooms in 3!T''c·n and other ~ 1ppropr i ate autho- 4. -c''11 --,- rilic s :1·, :l1i • regard wi ll be completed ., 5. i"'i'i\\fct ~(qi 47 Written Answers FEBRUARY 22, 1974 Written Answers

0. imwfa* sranft to m v r (80 V W : 24.26 w f f T’tttf, 28.00 7. *m w , t o t o t o m r VS. TO 26.06 «prff T). I

8. ster t o f r o r (*0 an^fro qrt factor 9. w f f f f w r r w w r ^ TO M W TO# ^ f?r*f |T*T 10. SPRIT snrwr wqvt f i 11. *RT*n*r 12. NWcTT 3v 3T5tRT W H 1- W 1974-75 ^ ^tTFT **TTW aJT^"- is. * n # f srsfa ??PTr fW * r ^ 35 ^ r f f v>. ^rr ?r^r fy'tlffra foqr TO if I 14. is. W h ^ t o *nr Visit by Indian and Foreign Trade Missions

16. M W r xrenrcfNr 413. SHRI AMBESH : Will thc Minister JTFfr TO of COMMERCE be pleased to state thc 17. qfctoiftra? t o fa^nreinifrwi names of the countries to which thc trade missions of his Ministry went during the last 18. HPnft, q-T: ^ ; - thiee years and the names of the countries sfrr srtfr « which sent their trade missions to India during that period ? w rc fk vt jwqjftwn ^ kr*fcr THE DEPUTY MINISTER IN THB 412. 'W®*? *HPPW : ‘*WT •llWr'S'H MINISTRY OF COM MERC F (SHRI 'H t W 351? fTH fai: A. C. GEORGh) : During the Iasi three years official delegations from tint. («P) qtf 1970-71, 1971*72 arfV 1972-73 Miuistiy visited Republic of Kotea. Nigcuu, ^ % fm 3»*ffiTO <# f^r-faR- Ghana, Senegal, Kenya, Tanzania, Zembia, 2p5T fcniftr to ; West Germany, German Democratic Re­ public, U. K., Italy, France, Hungary, Off) ?3T^rfrT ^ n f ^ 3 n ^T Singapore, Hong Kong, Indonesia, Denmaik w rite r ^ t ^ faro !f ; Thailand, Japan, Belgium, Sweden, Yugo­ slavia, Canada, U. S. A., Rumania, Bulga­ (*n Mrnfar ^arf ^ ^ ria, Czechoslovakia, IJ. S. S. R.. Poland, ^pranr yrnpT? vrpft ^rhRT t o if? Democratic People’s Republic of Kotea, 3rfr Aiab Republic of F.gypt, Sudan, Iraq, Ku­ wait, Netherlands, Austrialia, New Zealand, Afghanistan. Nepal and Bangladesh. Oar) fcnefcr 1974-75 ^ ^ h r - 3f%- *rnT?T: «TR^3rf «BT iW ^T During thc same period Trade Delega­ tions from Tanzania, Mauritius, Zambia, Guinea. France, Yugoslavia, Spain, Turkey, rnWnv ihmnr # gninft («ft t>. *ft Federal Republic of Germany, Sweden, w f ) ; m v z m iW rer nrjr, *raMr Canada, Bulgaria, U. S. S. R., Poland, TO-, TO", TO *TCT*ft TO Rumania, Hungary, German Democratic Republic, Czechoslovakia. Jorden, Arab *ro*r, ^ to ft t o w ife, m i, *Mr Republic of Egypt. Oman, Irak, Sudan, StfW m TO 3Ttf-1^TO5T m \ t o Kuwait, Algeria, Nepal, Bangladesh, Afga- ^r#r, qaf iW nr to to? 1 nistan and Japan visited India. 49 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 50

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Stops to Maintain Steady Flow of Raw THF DEPUTY MINISTER IN THE CashewNuts to Factories MINISTRY OF COMMERCE (SHRI A. C GEORGF) : »va) Cashew prices- 415. SHRl V AY ALAR RAVI : Will sing being a seasonal industry and having thc Minister of COMMERC'D' be pleased capacity in excess of the av.ilability of to slate : nuts, the factories close down for part pciiods in the year. (a) whether Government are aware that hundreds of cashew factories in the country' (b) and (c). Cashew Coipo-ation of remain closed due to non-availability of India has contracted with African countries raw nuts rendering lakhs of people nnem- fir the entire quantity of nut* offered by ployed; them viz. 129,000 tonnes for shipment during January-Hme, 1974. Fven in the (b) whether thc quantity of raw nuts face of acute shipping constraints CC1 has for which the State Trading Corporation entered into an agreement for shipping the has entered into agreements for impoit contracted quantity in a phased mannei from African countries is just sufficient to f

CCI in a phased manner with a view to T fp p r w f W T fw ir maintain supply of raw nuts to the eligible f a w n ihpw f'wiT factories.

Construction of New Aerodromes at Cochin 418. IT. w m n i b h r : TO and Caffe* w ft fin # fa: - 416. SHRI VAYALAR RAVI : m fairer *twt fwr SHRI ( \ H. MOHAM1 D KOYA: r sFK% t* t n w f Jr ifaw Wil thc Ministei of TOURISM AND sjftroretf 4 W fa?RT ^ fro CIVIL AVIATION be pleased to state : *•« ; SliV

(a) whether Government have taken any (8T) TT?srT sri ?TT*r T O final decision regarding the construction of s>t f W r faparr new aerodromes ut Cochin and Calicut during the Hfth Five Year Plan period; "sfRhrr ? and fa w iNfr wvvaflpnw w^rror) : (b) if so, thc broad outline}, thereof and

Ilk. progrevs made in ihis respcct so far ? (^) ' wcr ?37w 4 f a r r q r # q r w*r ^ THF MINISTER OF STATF IN THE wz s n w 4 hw ariV sftenft MINISTRY Of TOURISM AND CIVIL 'r n V r qtrqtsRrerV 4 3F?Ff9r AVIATION (DR. SAROJINI MAHISHI); qtfqnj ^ s^fatrrarf snr t a r (a) and (b). No final decision has been taken by Ciov^i nment >o far for the 4 3 *nf, 1971 ^ 7,3 construction of new aerodromes at Cochin srfr 9 *rsf, 1973 8.5 ^rh|" srsrr and Culicut. The proposals lor conduc­ 4 ^n*rf qr w r fa*f \ tion of these aerodromes during the Fifth Plan period are, however, under considera­ (7T) T * ^ A w v tion. ^PTTvT, d S?^i, f a w , '3’TIT m , ^^aTTTcr TriRT^-, wzfe-n, Abolition of Import Duty on Pearls and Diamonds ariV 4 n r 4 aifr fassfr 4 H fo 417. SHRI M. S. PIJRTY : Will the 7THT

w W iWrtPf w ffW i (Iti m» w* for Central assistance as against the approv­ ed ceiling of Rs. 1.35 crores. The Central *nf) j *nft w r- 423 SHRl D P. JADEJA : Will the ?rW stt xrGrfrr r f r® f , firtf v tf Minister of COMMERCE be pleased to ... tp,, i * ft * — -^-f __ vrw^nrr ^anr ^> twq *th§, ^ m i, TsWf state: rTVT *TOT" *T* 2 ^ k ?TTO7 ^ W ' $Hffar (a) whether Railway wagons arc being Q'w ftw tf* I exported to foreign countries;

(isr) ?re*r*r*T*r t t srrer *rot*r # arrt (b) if so, the number of Railway wa­ SO# qTT-rrM ^ 3TT0T SFTSfT TT^T ^ *tf- gons exported during the last three years, srrfVqT vt VFi^ft ssfar if i year-wise; (c) the names of the countries to which (n ) spfo t r t ? # HrT-tTki’ ^ * p jro they weie exported; and ^ srfa ^PT^t 4 fa ir * p w * p w q r arrar w $ a r w 3rrcfcnq> srnt jtr1 sntf ^ (d) the name of the agency through w vanmforef art *r*r f^rq- which they were exported *> ^ww^T «ptt >mhT fW stm 3“ i THE DEPUTY MINISTER IN THE Central assistance for flood relief pro­ MINIS! RY OF COMMERCE (SHRI A. C. gramme in Kerala GfcORGE): (a) Yes, Sir.

420. SHRI A. K. GOPALAN: Will the (b) and (c). The numbers of wagons ex­ Minister of FINANCE be pleased to state: ported to different countries during the (a) whether the Kerala Government has last three years are as follows:— written to the Central Government regard- irg the inadequacy of Central assistance Name of the 1970-71 1971-72 1972- for flood relief programme in Kerala dur­ Country (Nos.) (Nos.) 73 ing the current year; (Nos.) _ (h) whether Central assistance indicat­ Burma 14 ed to the Kerala is only about Rs. 135 Taiwan 104 lakhs against the State Government’s re­ quest for an amount of Rs. 650 lakhs; Ghana 95 193 and Hungary . 355 493 18 Kenya 51 78 (c) whether in view of serious flood prob­ Poland 4 20 322 lems in Kerala, Government would con­ Sudan 66 . , sider allotment of enhanced Central assis­ tance to Kerala? Iran .. # t 61 Yugoslavia •• •• 43 THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI K. R. 463 739 695 GANESH): (a) Yes, Sir. (b) and (c) The State Government have (d) Export orders were mostly secured requested that relief expenditure to the ex­ through Project and Equipment Corpora­ tent of Rs. 4.50 crores should be eligible tion. 57 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 58

Joining of Iliad Motors Board by L.LC. Govcrnrnent of U.S.A. has expressed itself and Unit Trust Offidab in favour of closer cooperation with India in several fields of economic activity. 424. SHRI DINEN BHATTACHARY* Y A : Will the Minister of FINANCE be (b) No specific proposals have so far pleased to state: been received in this regard.

(a) whether Life Insurance Corporation Ceilings on foreign exchange and value of and Unit Trust officials have joined Hind machinery to be brought by non-resident Motors Board at the invitation of the Indians front abroad Company; 426. SHRI FATESINGHRAO GAEK- fb) whether these persons have received WAD: Will the Minister of FINANCE clearance from appropriate authorities be pleased to state: befoie they joined the Board; and (a) whether Government ha\c received v s, Sit. 23 11-1973. The limit which was Rs. 5 lakhs earlier was raised to Rs. 25 lakhs in (.) The T»'»rs.inecs me expected to exer- October, 1973. Certain fields have been d^e vonirol at key points of management excluded and a list of these has been de­ so that i:itt rests of the financing institutions, tailed in another Public Notice issued on v.b.Ji have Luge holdings in this concern, the 8th Fcbiuary, 1974. A copy of this a»ul the consinncis are safeguarded. Public Notice is laid on the Table of the House. 1 Placed in Libiurv. Sec No. LT- Collaboration with U.S. in economic field MW/74]. 425. SttRI N K. SANGHI: effar # awwi'j fr SHRI K. KODANDA RAMI REDDY: 428. ^ ^ . 4; tnrnr: Will the Minister of FINANCE be plead­ w>srnsR’: ed to state: "rant ^rr f a (a) whether the Government of U.S.A. has recently thrown any hints in terms of Off)1974 n* wforc «ffrrr f a m $ collaborating with India in several impor­ zrm t s t fields of economic activity; and fa r -fa s t TOrrarf sift rtsr fen srft (b) whether any positive proposals have w m m , been received in this regard and if so, what? m w s rrw 4 trrcr «fhr frppr THE MINISTER OF FINANCE (SHRI YESHWANTRAO CHAVAN): (a) The f r , w , ^2 LSS/—3. 59 Written Answers FEBRUARY 22. 1974 Written Answtn 60

m m f* aifr f* r 1 *?r v r 3fN*r f a t : 3T??rhry m$ 4 w m a rfr 0 * ) ? £ T O f 1 r - T ^ rr t o ^*rr vtt Ntt ^ ^vrr cn^ fatr JHnrof 4 w v «fg- * * n f smnfar vrator vt jtpt f m f t aror- ? r f w ^ f^nmr srrr tftf«RT f t rnft ^ W artV ?spT*r ^rl ( 1) vrfvorf 4 ^grrif ^ r *frr# ?r*nr T^rf ^FHT,*iffwsfr,*rcrmwr 9 ’snvft, 1974 3ffr (2) ^?Fr to H p t W # N 9 R W qwfatfrq-T 3TrtT3r m t f ?pi ^ ^ ITflHfm VTTftPTT *FT f*n r w4 1 ^n*fh=r 1 w *t (2) ^ 4 n* htt|;w , efvfhri, 2 ^nE2f ’WrttM 15 VWft, 1971 t o gT^pnri' ^ ^ t o 3 5^ f r ^ 3 frnflTf srwrnft*r vrtrfvryr 17 vwrtlr, 1M7 4 f^rfWr, TO^y)8, an^rfw i', sr^rmr- (*rcrfr fawr * %^tt, g w jfe” 4 ^rsiw T to srsft^f w r t ) stir 4 ^ r ? R R t ^ w i f i r ? r 9rt ?^?fT t o r 1 ( Ssrrfy sfrarrp-, htt- Trf5^ WrftT : sty, f^Tfr, fawft, CFrnvRT, *mr tTtrrnf ^TctTT ^ ^^0^ % 9TT9T ^T«im ^ W ^ n~ 75 5rf?rw f^rrrw p t =9^ 25 vpni^ 1974 ^rr mraw'^ srw a>r ^ «W 5Rtfgifnr1r 4 ^ 100 Trf?nrrf r t t - r&fr *ft I ^mPIT IT ^TRTT r^TTT I i n w k w w w T aram tf wrrvr r— q->*faTfr gtf ^ t

C«r) (*r) epifa^w jr w rr! tR gftar? *rnr ^ n w wsw : «ffrrr fa *T *r t o 4 *nar¥ 4 r ^ fa H t t o ^ M w M h r t f y f *far *mrf %fr artV 24 1074 y f fa ir *r 4 ? 3 ft « W H x m ^ n rr ^ i w ^ O T f^ f «rr * h ^ fh r T r ^ r ^ r w it ^r r f r -■mrtna. ^ ^ -- p A !• A -■ « Jt — -I w n wrr w n w *>t 5rttt 'am> 20 n fltroir ^ ^ «rr vw *kt ?w gftre’^Hf, w rf to # ro # *ut staffer 3TT^»TT I 6) Written A nwers PHALGUNA 3, 1895 (SAKA) Written Answers 62

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3W T «PT?TH iarMsrsW 1972 «5T HW ^ ^ ^ f * 1 ™ fk * & * * " * « ♦ *> 5 ^ " t * 4 tar srrtimnf # h*Rrtf*pr*W * «mr t w i t a r a r # i . tf i «v hj* ^

^ (M r w 430. SHRI M c . d a g a . * ? t t ) « t SHRI TRID1B CHAUDHURI. TT m ^rr^Ri W ftv ^FRT Tt^TT jIFFTT ) Will the Minister of COMMERCE be W ^ rr m ift *tw? w ^srrr, 4 pleased to state: ^ iVft 3T^T ?TTOT rTiJT Mfsp3^ f^f^T 3PTT- (a) whether a separate Department for 3TTT j f a f a f r w q^TT ^ JTRT 3T H f- export production has recently been created, £ q r ^ ftp u r jjftt1 q r and ,f so* lhc funclions thereof; *rn% fM 4 ^nr ^TT1 3rlV (b) whether this Department will take qp? i f f'sRTT q r ^^Ti’rf rsrr if «RT?r 8teps to mtel l^c demands °f ^ e markets w i ^ w ti of ,he oil producin* coumries: and TiT^t ^ 3rf«rm if sriV wN v f # (c) £f so- the ste^s takcn so ff,r and thc «torf «nf 4 4 m* w t r «. ou,come ,hereo£7 # artare h # trf i =5T n-fwfttr 'T* anftr t h e d f p u t y m in is t e r in t h e 1973 it 31 *mf 1977 ?PB ^TT ^ MINISTRY OF COMMERCE (SIIRI A. C. ^ forr HFC r^TT I CiEORGE): (a) Yes, Sir. Thc functions al­ located to the Department of Fvport Pro- , . _____ ,, fc cl uclion under the Government of India *r*Tnf*f ftSTWT W ’nre'VT IT (Allocution of Business) Rules, arc listed in ^ tsrtr vnAmft thc *>t^tement laid on the Tabic of the House. [Placed in Library. See No- LT* 429,j M ^ ^ r y r tt^n*: «rarr «nfe^r ariV 6189/74], ^ww w qrr ^ ^nr (b) Yes> Sir

(c) The Department of Export Produc­ e s ) *m vrrmr » t ^ H f y . %.. V j ___ «___ devise suitable measures in consultation I Z T T ^ ^ y y # % r with the Ministries and DepartmeHs con- ’iiW i *BT 3fH W r f* f 3fTT cerned to expand the production base and 63 Written A IISII'et'S FEBRUARY 22, 1974 Written A nnvers 64 • inc re~s c availability for export of p roducts Target of savi11gs in various Miui~1ries of interest, ~.mong others, to the oil pro- 434. SHR l IN DRAJIT GUPTA: ducing countries. An important outcome of SHR I M. MADHUKAR: recent effo rts to improve bilateral trade K. between J.ndia and the oil producing coun- Will the Minister of FINANCE be tries is the con:lusion of a long-term trade pleased to state : and economic agreement between Jndia and Kuwait which provide inter alia for the (a) whether an interim assessment of sav- setting u p a Joint Committee to identify ings efTectecl in various Central Ministries fields, projects and commodities for ex- indicates that target fixed therefor may pansion of the economic co-operation and not be achieved; and promoting trade exch ange~ between the (b) if so, the reasons therefor? two cour.tries. TH E MIN ISTER OF FfNANCE (SHRI YLSHWANTRAO C HAVAN) : (a) and (b) } of the order of the targeted amount would be achieved in respect of most (a) whether tea exporters of Tripura arc M i nistriesjDepartments. facing serious export difficulties; and /\ssessmcnt or savir.gs so far made in (b) \\·hat steps Government propose to 1973-74 in the different MinistriesjDepart- takc to ease the situation'? mcnts is giYen in the attached Statement. :: These savings do not, nor were they in- THE DEPUTY MINISTER IN THE tended to, take into account substantial MINISTRY OF COMMERCE (SHRI A. C. additional liabilities devolving on Gov- GEORGE) : (a) Most of th~ teas grown in e;Tn:ent on account of revision of pay T ri[1ura are utilised for consumption within and aiiowan..:cs of Government servants, the country. Government are not aware of food subsidy, additional assistance to any difficulties faced by Trioura Tea Ex- Sl :~ tcs on account of natural calamities, etc. porters. • anJ certain additional funds allowed to several Ministries/Departments on account (b) D oes not ari ~ e of key projects and schemes.

S!niC!IIC!ll Consumer Price Index in Tripura (Rs. in crores) 433. SHRI BIREN DUTTA: Will the Minister of FINA.NCE be pleased to state S.No. Ministry/Departmen t Total the extent of increase in Consumer Price Savings reported Index in Tripura State during the last six ------monchs? 2 3 1. Agriculture 13 . 84 THE MINISTER OF FINANCE (SHRI YESHWANTRAO CHA VAN) : The AIL 2. Food 4. 47 India Consumer Price Index is computed on 3. Conununity Development 5.40 the basis of data from 50 centres spread 4. Co-operation 10.13 over the country. As none of the selected 5. Indian Council of Agril. Res. 3. 87 L' er.trcs lies in Tripura State, the informa- 6. Commerce 0. 34 tion is not availabLe. 7. Communication and OCS . 0.02 65 Writteti Answers PHALGUNA i, 1895 {SAKA) Written Answers 66 Eacfttagi o f p n tti by Dm Beafcal duunber j T T l I . . 2/ ! _____ * ...... f 4ji CMUMttt 8. Posts and Telegraph 3.29 9. Education . . . 11.76 435 SHRI INDRAHT GUPTA: WiU 10> Social Welfare . . . 2.43 the Minister of FINANCE be pleased to 1). Fconomic Affairs (Finance). 0.10 12. Banking (Finance) 2 50 state: 13. Expenditure (Finance) 159.45* (a) whether the Bengal Chamber of 14. Health .... 4.60 15. Family Planning 6 25 Commerce and Industry, Calcutta earns 16. Hea'y Industry . 8.54 profits in respect of fees for Certificates of 17. Home Affairs 1.40 Origin, fees for Special C ertificates, Royal­ 18. Industrial Development . 8.76 ty on Publications and subscriptions from 19. Information and Broadcasting 3.68 20. Irrigation and Power 23 98 Calcutta Licensed Measures; and 21. Labour and Employment 0 32 22. Rehabjlitanon . 2 52 tb) if so, the figuics for the last three 23. Petroleum &, Chemicals 15 62 years 24. Shipping & Transport 24 41 25. Steel. . 31 72 26 Miiies 9 71 IHE MINISTER OF STATE IN THE 27. founsrn and Civil Aviation 4 69 MINISTRY OF FIN \NCE (SHRI K. R. 2K Y\ orks Housing 5 30 GANLSH): (a) Bengal Chamber of Com­ 29. Science & Technology 2 25 merce and Industjy is in receipt of fees for H) Pmm Ministers Sire *i . 0 02 t eitiUcates of origin, fees for Special 11 Piesident Seett, 0 02 32 Supreme ( our I 0 01 C ci ulicates, Royalty on Publicatiors and 33 Plannmu Commission 0 06 Jso share of mcomc fiom partnership with Calcutta licensed Measurers. lota I 371 51 (h) Ihe figures ol such receipts for the "includes Rs ‘>3 98 croies savings in last three years as per the audited books Central assistance to State Plan, Rs. 34 ciore> savings in I mplovment Schemes of account of the Bengal Chamber of an 1 Rs 30 <.iok 's savings m Advance action C ommeice and Industry, Calcutta, are as loi I ifih Five >eai Plan, follows :—

1 cvs for 1- ces foi I dinings Partn< tship income from Cal- C.rtihcato Spv't l > 1 from calta I Kuised Measures of origin C\rtili- roy.’Ity cat^s on publi­ cations Rs Rs Rs Rs

1971 73734 11344 2858 221257 (I oss) 1972 86044 16056 369 110420 (I navted Profit) 1973 76762 10608 307 2757b (t mimated Profit) 9 ' I'mde Relations S between Indian *

Brunches by N ifloaM Bn I i hi Warier THE MINISTER OF FINANCE (SHRI Areas of Country YESHWANTRAO CHAVAN); (a) to (f) Central Bank of India has reported that its 437. SHRI YAMUNA PRASAD MAN- building situated at Netaji Subhas Road, D A L: Will the Minister of FINANCE be Calcutta, in which the main branch of (he pleased to state the number of branches set bank was located was gutted by fire on up by nationalised banks in the border areas the night of 3rd-4th January, 1974. The of the country after nationalisation? Government of West Bengal have consti­ tuted a team to investigate the cause of THE MINISTER OF FINANCE (SHRI fire, and its investigation is not yet com­ YESHWANTRAO CHAV AN): It is pre­ pleted. It is therefore not possible to say, sumed that the term ‘border areas' refers at this stage whether any explosives were to the border districts in the States/Union found in the building. Central Bank of Territories of Gujarat, Rajasthan, Punjab, India has, in this connection, reported that Jammu & Kashmir, Himachal Pradesh, it has beer, able to recover the entire cash Uttar Pradesh, Bihar, West Bengal, Assam, in the currency chest, all documents and Meghalaya, Arunachal Pradesh, Nagaland, securities in the strong room and deposit Manipur, Tripura and Mizoram. lockers from its vault. It has howe\er not In these border districts the nationalised yet been possible for the bank to assess banks have opened 411 branches between the loss consequent on the fire, as the July 19, 1969 and December 31, 1973. saltage operations have yet to be completed. The State Bank of India Group and other According to Central Bank of India there Commercial banks also have opened 322 is no big credit advance, which has not and 106 branches respectively in these been recovered, given from this branch of the bank. areas, during the same period. Expansion Plan of Indian Airlines Fire la Central Bank of India Calcutta 439. SHRI YAMUNA PRASAD MAN­ 438. SHRI YAMUNA PRASAD DAL: Will the Minister of TOURISM MANDAL: AND CIVIL AVIATION be pleased to DR. RANEN SEN : state: (a) whether Indian Airlines proposes to Will the Minister of FINANCE be suspend its expansion plun; and pleased to state: (b) if so, the reasons theicfor? (*») whether the building of Central Bank of India in Calcutta was gutted by fire in TI IF MINISTER OF STATE IN THE the month of January, 1974, MINISTRY OF TOURISM AND CIVIL AVIATION (DR. SAROJ1NI MAHISHI): (b) if so, whethei any explosives were (a) and (b) The steep increase in the price found in the building; of aviation fuel and the possibility of a shortage makes it necessary for Indian Air­ (c) whether the branch of the Bank lines to review their Fifth Plan proposals. located there had advanced a big credit which I)ad not been recovered; Representation from Kerala Government against the credit policy of Government (d) the estimated loss including thut of 440. SHRI YAMUNA PRASAD MAN­ documents as a result of this fire; DAL : Will the Minister of FINANCE be pleased to state: (e) whether any enquiry has been insti­ tuted into the causes of the fire; and (a) whether the State Government of Kerala has represented to Centre to reverse Of) if so, the findings thereof? the present credit policy; and 69 W r im Answers PHALGUNA 3, 1895 (SAKA) Written d tm m * 70

(b) if so, the reaction and the decision of The deficit position » being reviewed in Central Government is this regard? connection with the formulation of Revised Estimates 1973-74 and Budget Estimates THE MINISTER OF FINANCE (SHRI 1974-75. YESHWANTRAO CHAVAN): (a) And (bj In a communication addressed to the Negotiations wtth members of the Stand- Union Finance Minister, Kerala Chief ing Committee of JX\M. in regard to im- Minister had urged the need for revising plementation of Pay Om m b MM i Report the current credit policy so that it could have an element of selectivity in it. He had 442. SHRI S. M. BANERJEE: Will the also referred to the broader question of Minister of FINANCE be pleased to state; regional distribution of bank credit in the country. Another point raised by him was (a) whether the anomalies arising out of that bank credit should not be made avail­ implementation of Third Pay Commission's able to those who use it for speculative pur­ Report are being rectified by negotiations poses. He had also made the point that with the members of the Standing Com­ if at all credit restraint was essential, it mittee of the J.C.M. at the national and should be in respect of the credit to mono­ departmental council level; poly houses and to large scale industries. The points made by the Kerala Chief (b) if so, the items under discussions; Miniver aie part of the accepted policy and and to the extent currently feasible are being purMied. (c) when a final decision is likely to be taken in this regard ? Deficit financing THE MlNiSTfcR OF FINANCE (SHRI 441 SHRI S. M. BANF.RJEE: YESHWANTRAO CHAVAN): (a) to (c) II has beer, agreed in the last meeting of SHRI DHAMANKAR: the National Council of the. Joint Consul­ Wii the Minister of FINANCE be tative Machinery held on 24th and 25th pleiis-cd to state : January, 1974 that a committee consisting of representatives of the official and staff sides (;») whether Government are likely to of the National Council may be set up to resort to further deficit financing to tide look into anomalies that might have arisen o\er the present deepening financial crisis; as a result of the implementation of the and Government’s orders on the recommenda­ tions of the Third Pay Commission relat­ (bf d so. to what extent, and if not, the ing to common categories of employees. alternative steps proposed to mobilise re- Jt was, however, clarified that where the sou roe*- n Pay Commission had made definite re­ commendation s on pay scales, it would not 1 HE MINISTER OF FINANCE (SHRIbe feavsible to entertain requests for modi­ Y[.SH\S ANTRAO CHAVAN): (a) and (b) fications on the plea of anomalies based The steps taken this year towards mobili­ upon inter-departmental comparisons. It sation of resources included larger market was also agreed that similar committees borrowing and Small Savings Collections may be set up ir the various Departmental ard improvement in collection of tax ar­ Councils to look into such anomalies in rears. Besides savings have also been effect­ respect of uncommon categories. These ed by economy in Government expenditures, Committees are likely to be set up shortly both plan and non-PIan to keep down the and would consider the matters which may deficit level. Simultaneously, the Reserve be raised by the members therein. The Bank has taken a series of restrictive mea­ reports of the CommlttccCs) will be con­ sures to reduce inflationary pressures on sidered by the Government as and when the economy. they arc received. 71 Written Armvers FEBRUARY 22, 1974 Written Answer* 72

Amount of loss during Lock-out In Indian was 7417. Information regarding number Airlines of man-hours lost is not readily available. 443. SHRI S. M. BANERJEE: Supply of Yam to Haadlooms and Power- SHRI H. K- L. BHAGAT; looms Will the Minister of TOURISM AND 444* SHRI S. M. BANERJEE: Will the CIVIL AVIATION be pleased to state: Mirtistei of COMMERCE be pleased to (a) the total amount of loss suffeied by slate. Indian Airline*, during the current lock-out period; and U) whether position rcgaidtng supply of yarn to the handloom and powerloom (b) thc number of {lights cancelled and weavers has shown an improvement ; and man-days lost duiing the lock-out? (b) it so, how the figuies of 19**3 com- THE MINISTER OF STATE IN THE paic with that of 1972? MINISTRY Oh TOURISM AND CIVIL AVIATION (DR. SAROUN1 MAHISH1): (a) The loss suffered by Indian Airlines 1 HF DhPUTY MINISTER IN THE dunng the period of lock-out, from 24-11-73 MINISTRY OF COM Ml: ROE (SHRI A C to 31-1-74, has been estimated at Rs. 276 CifcORGF): (a) and etc duurg the peiiod of the lock-out from dining 1972 (Jaruaiy/Decembei) and 1973 24th November to end of Januaiy, 1974 (J anua i y /Septembei) is given below —

hoi in of Packing 1972 (Jan/ to 1973 (Jan/ ‘ , f » Dec) (»n total Sept ) (in tusjwiy cones 40 00 9 6 24 00 8 2 4. Beams 23 00 5 4 14 00 4 7 3. Pirns 2 00 0 5 1 50 n 5 6 Others 9 00 2 2 8 50 2 b

Io im 416 00 100 00 296 00 100 00 Decbion on paucngcr fares and freight (b) the additional revenue likely to be rates by Air India collected at the end of the year by An India as a result thereof; 445 SHRI V. MAY AVAN : (c) what are the other steps Aii India SHRI H. M PATFL. is taking to meet its operational cost, and Will the Mmistei of 10URISM AND (d) whether the oil crisis and fuel price CIVll AVIATION be pleased to state ■ mu ease has reduced the margin, of profit of Air India, and if so, to what extent? (a) whether Air India has decided to in­ crease its passcngci fares and freight rales THE MINISTER OF STATE IN THE from January, 1974, and if so, by how MINISTRY OF TOURISM AND CIVIL much and how does it compare with in- AVIATION (DR. SAROJINI MAH1SH1): cionse by other international airlines; (a) As a result of the steep rise in the cost I

73 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 74 of aviation fuel, an agreement was reached THE DJBPUTY MINISTER IN THE in the International Air Transport Associa­ MINISTRY OF COMMERCE (SHRI A. C. tion of which Air India is a member, to GEORGE): (a) No, Sir. Exports of engi­ i net case the world-wide fares and rates of neering goods during April—December, 6 per cent with effect from 1 January 1974. 1973, have been of the order of Rs. 103.69 crores (Provisional) as against Rs. 96.20 (b) Additional revenue likely to accrue crorcs during the corresponding period of as a result of increase in fares and rates 1972. by 6 per cent is estimated at Rs, 6.90 crores, (b) to (d) Do not arise. which would be set off agairst the increased cost of aviation fuel. Ceiling on the export of Groundnut Extraction (c) Air India cannot uniiateially raise 447. SHRI K. MALLANNA: Will the the fares and rates to meet the rising ope­ rational costs. 1ATA is seized of the matter Minister of COMMERCE be pleased to state: and the question of increasing world-wide fares is constantly under review by 1ATA. (a) whether Government have decided It is expected that with other major increase to fix a ceiling of seven lakhs tonnes on in fuel prices, 1ATA will correspondingly the export of groundnut extraction follow­ raise the fares which will take care of the ing fears of domestic shoitages; and rising opeiational costs. (b) if so, the extent of domestic iequtr> Aii India is keeping strict control on mcnts in the counliy and the particulars expenditure and has introduced economy regarding the demand fiom overseas measures such as freeze on staff recruit­ buyers? ment except in very essential and productive categories. sizable leduction in publicity ex­ THb DLPUTY MINISTER IN THE penses, etc. MINISTRY OF COMMERCE (SHRI \.

THE MINISTER OF FINANCE (&HKI (c) The installed capacity for cashew VASH WANTRAO CHAVAN) ; (a) and processing in the country is far (b) The U.S. Government has given in excess of what can be justified on the a grant of Rs. 1,664 crores to the Gov­ basis of availability of raw cashew nuts ernment of India from their PL 480 funds from imports and indigenous production. to be attributed to projects of economic The Government, after consulting rele­ development chosen by thc Government vant interests and State Governments con­ of India from among those alieady includ­ cerned, have evolved certain principles for ed in the Fifth Five Year Plan. These equitable distribution of limited raw nuts and other details of the agreement between available Complaints received are being the two Governments have been given in examined and where warranted are being the Statements laid on the Table of thc tedressed. One complaint fiom a Manga­ House by the Finance Ministei on the lore paity regarding short allocation of 13th Decembei, 1973 and the 19th Febru­ quota had been looked into and additional ary, 1974. allocation was made in December, 1973. Sustained cffoits to import as much raw Complaint from Manufacturers regarding cashew as available from traditional and shortage of imported ran cashew nuts. now overseas sources aie being taken through Cashew Corporation of India. 449. SHRI P. R. SHLNOY: Will the Minister of COMMER( F be pleased to state: Opening of Branches by Scheduled Com­ mercial Banks fan Rural Areas. (u) whether the manufacturers of cashew kernels have complained that sufficient 450. SHRI P. R SHENOY: Will thc quantity of raw cashew has not been im­ Minister of FIN \NC'H be pleased to state: ported ; (a) thc total number of bumches opened (b) whether there is a further complaint by the Scheduled commercial banks in that equitable allocation of impoited raw uual aieas aftei the nationalisation of cashew has not been made to the manu­ banks: facturers from Karnataka and

(c) if so, the action taken by Govern­ (b) the total deposits and advances made ment? in these branches as on 31st December. 1973; and THF. DEPUTY MINISTER IN THlJ MINISTRY OF COMMERCF (SHRI A. (c) what portion of the advances made in C. GEORGE): (a) There have been com­ these branches has gone for (i) agriculture plaints of processing units not gettting and (ii) self-employment? enough raw cashew nuts for thc year lound woiking. THE MINISTER OF FINANCE (SHRI YASHWANT RAO CHAVAN) : (b) Two complaints have been received (a) Between July 1969 and December 31. from processing units in Karnataka; one 1973 scheduled commercial banks opened challenging the validity of the revised dis- 4608 offices at rural centres. 77 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 78

Deposits and advances of new rural branches opened after July 19, 1969

Position a& on the last Friday of December, 1972 Deposits Advances No. of repo Amount No. of report- Amount ing ofRccs Rs. in crores ing offices. Rs.in crores.

Rural Branches . 3576 220.09 3558 102.99

(c) Piecise information relating to the Plan* to Improve Bajpe Abport ioctond distribution of tte advMCes rf 4J2 SHR] p R SHHN0V . wiu |he these branches is not available. However Minii>ter of lonR|(>M AND c in vew of the economicse t.n* in which AViA1(ON be p!t.„scd 8l!rte uhclf,cr these brunches operate, most either ^ aK ns \anccs uic likely to be only to small boi- ... . / ' . *. in the priority sectors like agricul- (M'mg,ll°":) Air*’" " '» ' ,' w, ot » ' . , , , i WOi-r ci easing importance anJ u> order to make „„c, small industry. road and water ^ q( c;|vicr? ti .in-port etc. THE MINISTER OF STATE IN THE

r s s s s . . m™ ! 1; 4M SHRI P. R. SHENOY: Will the BocinS 737 ^ jviccj . aie already operate Minister of TOURISM AND CIVIL A VIA- through M«inS THF MINISTER OP STATE IN TH1 countncs: and ^ J 2 S v if ^ the two sides will set ^ v SAROJINI MAH1SHI). u ventures in the two countries ? (a) ^ cs. Sir.

. eMensfon to the building. The reference of llie hon< mCmbeis is perhaps to the discussions which took (c) The work is expected to be complet- Ptyce in January last in the Indo-Irai? ed hy 1976. Joint Commission for Economic, '1 rade 1$ Written Answers FEBRUARY 2X W * Wrtfteto Awwtrs

w d Tec^Ojteai Cooptation. A copy of the («) whether amy steps to&e been taken Vxm Statement tamed on the conclusion or aie proposed to be lo improve aI the discussions k laid on ihe Table of the drawbacks and maintain the mono- the House {PUn*d in Ltfoary. She Mo. tT - poly in (tie opium trade and New Delhi anil Colombo mcnts of opium are determined by the siave identified three Industrial projects to International Narcotics Con'iol Board of promote a better balance in trade; and the United Nations.

(b) if so, whether each project is in­ India is the principal opium producing tended to meet their needs for products country in the world and Indian opmm now imported ftom a inird country? accounts for more than 75% of the world’s total production The other mnjoi THE MINISTER OF STATb IN THE opium producing eountnes at present MINISTRY OF COMMERCE (SHRI are U SSR , and Iian, but the> do not ex A* C. GEORGE) . (a) and (b). port opium Turkey, which was the othei Feasibility studies have been conductcd principal exporting count!v has suspended for the establishment, tn Sn la n la of in­ opium production iiom 1^73 dustries based on grnpmte. pi ass and rubber. These 'ue undu consideration Df the two governments. Witn its proxi­ Steps to Check Smuggling on Indo*Pak mity to India, Sri Larka will enjoy a com­ Border petitive advantage o\et othci souic.es of 456 SHRI MUkHIIAR SINGH supply for products which Ind a MALIk : would need to impoit from abroad. It is in the spirit of economic cooperation bet­ SHRI BlRfNDhR SINGH RM) ween the two countries that they develop Will the Mimstei of F lN \N < r be and divctsify their mutual tiade pleased to state

Cultivation and Export of Opium (n) whethei Government arc aware of smuggling on large »cale on the Hunana 455 SHRI MUKHTIAR S>INtiH and Punjab borders with Pakistan ♦ and MAI IK : (b) if so, the steps taken or proposed to SHRI BIRENDF-R SINGH R^O * be taken bv Government to check the same and the v ttue of eoods tevoveied Will the Minister of FINANCE be plead­ by Government from the smugglers dur injs ed to state*. the last one year? (a) whether India is in dangei of losing its monopoly in cultivation and ex­ THF MINISTER OF STATE IN THE port of opium in the world market; MINISTRY OF FINANCE (SHRI K. R. GANESH) : (a) and (b) (b) if so, the reasons therefor, and Intelligence reports reports received by the SI Written Answers PHA10UNA 3, UM'iSAKA) Written Amwen 82 UomttmesBt 4o not indicate that there is W- & large*e*ii<* wawgfUng between India and a m * / ^ t ■ Pakistan on thc Haryana or* Punjab faoftkr. However, following steps have ». ^ « * « . * i been taken to check smuggling on this WHWW w'Jfc w it T5TOT IT TfW w •IW border:

I. Frequent meetings arc held at high 458. SfNw 'jc on the bolder. I ist of suspected ^ ^ ^ ® *‘ muggier* me prepared and ambushes aic ^ K.id at \ulneiable points with a view to theii ’ * 41, , , interception. The value of snuggled goods *r*nfWh WT J,() 1,13,160 V* si’^Kd dining the vcmi 1973 from the smugglers in thu aicfi is IK H lalchs ^ ^ . 8,4<»,7i,224 V* approximately. ------——--- . . 51,33,14,151** v f 1 9 7 3 toW**P»Hf w i* ? m w ' * ~~~ ------

457. * fc ft i TO fcnr *rtf ^4 ° * ** ^ m ^ fRT nfiAt fa * rtewr if i»73 4 *?m* « tk arir w a r

W «nf 1m «»mr «mrrU* m f “ »• * * * r T***

«pr»r f p t

' t m ’if r a f , * f t < y ^ fiersrt 1073 ^ faro-faarar «rr (n ) ^ i f , «} ®rfnr *wr £ ? ^ , aift

f«wr w ) * (V) t& ) t o t o t ? «rt f r o w w # (*T). f'war iw w x trr nsr m s f i # w b«p< ip r urrf to rf*1 r W Written Answers FEBRUARY t t , 1174 Written Answer* **

* * r w d f r m r J w n w *m m n * The baggage of out-going passengers has a ways been subjected to a wr dr. wfhnfr wfmt) selective check at Delhi Air-port. How­ 1972-73 *8 ?SR} ?f!PIT JTOT tffr— ever) with a view to expediting the cus­ toms clearance of out-going passengers it ftew vr m*r wr* ( *f ) is proposed to introduce a system under which instead of routing baggage of all ______* > * ( — ) out-going passengers through the customs (« w w f r ^ ) examination hall* the baggage to be exa­ mined on a selective basis will be mark­ W f o f p m ( + )27 Ob ed by the Customs Officers immediately v m K iU M ( { ) 6 79 after the check-in formalities have been W ff ( f ) 10 48 completed by the Airlines. $*arr«rstar (— ) i g j Review of the working of nationaiteed (— ) 0 07 banks 461. SHRI H. M. PATEL- Will the Minister of FINANCE be pleased to j»tate *iTwr ear; r f r t * w # h s t c *?rr ^ trt^tst (b) if so, whethei Government arc satis­ ^

THE MINISTER OF STATE IK THE Min is t r y o f f in a n c e

m w W wT fUnv w»RW WW*T *T fT3V (c) whether any plait to form an orga­ nisation of manganese exporting countries *Ht (it. w#sr^ : gfgtre r®: gf*yfgrr^?gfV tr$r tf *ft fcrerW same and policy for export is kept under 4 i eview. srgf srnx ?t. 4 snRf wf ?w 3TT®q^r 3T# srtf (c) No. Sir. ^r^tArqi # ^ tf mrowf 4 *m Surplus Staff In Indian Airlines Tnrgrhnr ^ ^ ff i iftrm w m , 14-2-1974 ^ 35 077 nft ^5T 464. SHRI B. V. NAIK: tfOT tf tf 15,504 aRrfapft ^ *T7 3tf Tjn %f SHRI SAMAR. GUHA: atft p r ir^n? f r r m * t grraisreft tf srvr- foer ^afartroi ^ tt^tt ^ it 473 tf i 21 Will the Minister of TOURISM AND 1974 # HmfNr qfTftiT^q^ fW ^r- CIVIL AVIATION be pleased to state: ww«b tfer 4 8T*r t&> wswfar $i *t*it if (a) what is the extent of surplus staff fm 4 vfcmmm ht^t- fcpjreqTffqtf 4 in Indian Airlines, category-wise; m tf, art f^r m 4 ^t^rt f 1, ?tfu- (b) the circumstances under which staff sr ^ nf ^ i wvrprhVr was working overtime in the past in spite of WfTf^r ^ r ^ r ^ m»r an# w nr^r w being surplus; and i (c) the basis on which surplus staff is computed?

Export of Manganese nod Iron Ore In THE MINISTER OF STATE IN THE Crude and PaQestM Form MINISTRY OF TOURISM AND CIVIL AVIATION (DR. SAROJINI MAH1SHI) i 463. SHRI B. V. NAIK; WUl thft(a) to (c). The high incidence of overtime Minister of COMMERCE be pleased to has largely been due to* certain wasteful trnt: work practices prevalent in ihe Indian Air­ 87 Writren Answers FEBRUAR'l' 22. 1974 Written Answers 88

Jines. Steps have already been taken to eli- un cr<.IT m'l1"f ~ ctl ~'U" >f minate them. The extent of ~, 1rplu s staff in ~~ rr &f 9i ctmUr ;f;sq; cf, ~ the various categories has not yet been tf( tr..qr~ ~ assessed. However, by the very nature of un1'1rr w cr B-crl ; th:ngs some measure of work on over-time () \T ('CT). 'l'IT("q ~ ;:ftmr . cf, 465. '.ft tit~ -m:i<'lm : <:fr- 'IFH ~m;rvr +:f;(t ~ ~ ;:Pl" 'f'IT q;-fTf w i f3i : ;:ft,r B"~ cr;t ~rrq ~ P.r. ~ ~m qf1<:nrrr <.:th.r 1971 Off[ ~ ctl ~ ~ (q:;) cp:rr ~T tf"f "Jql-:.<-T '1.1T rhr- ~mr ~~ ~ q 1~P,h ~- ~T ?•ITifurr- 467. ~Jt m~Mr 3FFITVr : GRIT onTt:;~ m>r f{", ~~IT i:1lf~:t 'UWi i ~, '>[1:f ;:~~ ~rrr- < ~?;T ~ crft '{)QT ~~r ?CfJ : 3fC!hT CJi qTir"f <~ Cfi-:<:f >ffF-1·1 f;"f;f Grf 11?-Q~ ~Tmf 3rl'~ -.itrn7r o l~ airr~r «~r~ GJTaf i1~~r. ~~ ; 3m (Tf) CfiTrr cffiFrT CJi C'1.1TtfR +f- 4GG. 'liT ~~wr -31!r : ((Sf) 26 ~Rrmr I

(q>) <'F IT "iR\T--tTTH cf, ~ ~m r-1~ (Tf) 3T>fu-0T"TmT, 1973 cf, qffi;:r, :sr/Tq; Tj Tif~f'U" Cflf q;( er.-R c;l T~r ~ ell QlJf 3Rrw1 0Rhr ~ f,"'(lc;i ~·n· ~rrt • y ~ 11~ ~ rt 1 rf "[,~ ;~-]' qi Rmm +f- ....l ..s::...... v ~ .s. ~,0. ~·r ~' ""\I -r' ""\!"_ _D. q, "ll"i Q"fi "'OC!i <:?o'< "'I ; "1'? 1 1.''-ic '0'< Q c Q <'ii

Cl. I Officers of L.I.C. C. I. Officers of Central Govt.* Managing Director . Rs. 3250 (fixed) Secretary/Spl. Secretary Rs. 3500 Zonal Manager Rs. 2000-125- Additional Secretary . Rs. 3000 2500 (Ordinary scale) Rs. 2500-125- 3000 (Selection scale) Jt. Secretary Rs. 2500-125/2- 2750 Dy. Zonal Manager Rs. 1600-100- Director Rs. 1800-100- 2000-125-2250 2000 Dtvl. Manager Rs. 1250-50-1300 Dy. Secretary Rs. 1100-50- 75-1600-100- 1300-60-1600- 2000 100-1800 Asst. Divl. Manager/Sr. Rs. 1000-50- Under Secretary Rs. 900-50-1250 Branch Manager. 1300-75-1675. 62 LSS/73—4 91 Written Answers FEBRUARY 22, 1974 Written Answers 92 CL I Officers rfL L C (contd,) C, I Officers of Central Govt, (contd.) £ . Manager/Admn. Officer Rs. 770-40-1050- 50-1300 ♦Revised scales of pay recommended by the Third Fay Commission under con­ sideration of Government. Asstt. Admn. Officer Asstt. Branch Manager Rs. 530-40-1050 (Dev.) } £CLU Officers of L.I.C. Cl. II Officers of Central Govt.(g Development Officer Or. It Rs. 170-10-220 Section Officer . Rs. 650-30-740- Or. I Rs. 230-15-320- 35-810-EB-35- 20-360-EB-20- 880-40-1000- 400-25-550-EB- LB-40-1200 30-760. Stenographers Grade 1 Rs. 650-30-740- of CSSS. 35-880-EB-40- 1040. Assistant Stenographers Rs. 425-15-500- PA Grade II. fcB-15-560-20- 700-25-800 Cl. U3 employees of LXC,£ Cl. Ill Officers of Central Govt.(a> Superintendents Rs. 370-25-470- UDC. Rs. 330-10-380- 30-830 EB-12-500- EB-15-560 Higher Grade Assistants Rs 265-20-385- L.D C. Rs. 260-6-290- FB-25-735. EB-6-326-8- 366-rB-8-390- 10-400 Stenographers Rs 210-15-225- Stcnogiaphcrs> Grade 111 Rs 330-10-380 20-405-25-430- EB-12-5Q0-FB- EB-25-630 15-560 Assistants Rs 175-10-215- 15-290-20-410- bB-25-585. Section Heads Rs. 225-15-255- 20-395-25-670 Record Clerks. Rs 150-6-162-8- 218-10-238-LB- 10-258-12-270- 15-390. Cl. IV employees of L.I.CJE Cl. IV Officers of Central Govt.<£ Drivers Rs. 166-5-181-6- Selection Gr. Daftry . Rs. 210-4-250- 199-7-234-8- IB-5-270 274-9-310 Sepoy Rs. 125-5-165-6- Record sorter , 201-7-229-8-245 Swenpers & Cleaners Rs. 120-5-160-6- Gestetncr Operator 196-7-224-8-240 Daftry Rs. 200-3-206- 4-234-1 B-4- 250 EAccordmg to the recent agreement signed by L I.C. Jamadar Head Chowkidar Head Sweeper Peon Rs. 196-3-220- EB-3-232. (ojAs fixed by government after considering recommendations of the Third Pay Commission. 93 Written A n vers PHAIXJUNA 3, 1895 {SAKA) Written Answers 94

(b) Comparison between the pay scalesFall in Yam prices after November, 1973 of employees of Central Government and 471. SHRI D. B. CHANDRA GOWDA: LIC is not generally possible as responsibi­ Will the Minister of COMMERCE bo lities and requirements of various posts pleased to state : even with similar nomenclature differ in certain respects. Further in case of Cential (a) whether the yam prices have now Goscrnment employees (upto and includ­ crashed by about 50% from the peak ing class II Officers), the new pay scales prices ruling in November last owing to the are related to the twelve monthly avejagc cumulative effect of a number of factors of the consumer price index of 200 points, like ban on export of yam, rejection of (1960=100 as base year) whereas the export by Bangladesh and Japan in view of scales of pay of employees of L IC. indifferent quality and the Supreme C ouit (class 111 and class IV) are based on con- ruling upholding the Central Government sumer price index =-100 as base year). Directives; and

(b) if so, the main features of the pro­ Advertisement for Post of Pilots during posed policy of Government in this re­ LoiL-out in Indian Airlines gard ? THE DEPUTY MINISTER IN THE 470. SHRI D. B. CHANDRA GOWDA : MINISTRY OF COMMERCE (SHRI A. SHRI RANABAIJADUR SINCII . C. GEORGE) : (a) The prices of cotton Will the Minister of TOURISM AND yarn between November, 1973 and mid- CIVII AVIATION be pleased to state : February, 1974 show a mixed trend from a decrease of 17 per cent in some counts O') whether taking the advantage of the to an increase of 15 per cent in some other Indian An lines lock-out, some foreign counts. companies, yvrticulaily those from deve­ loping toimtrics are scouting for Indian (b) Keeping in view the fact that the production of cotton yam, which is now flying talents ■ generally above normal levels, has been (b) if so, the names of such countries picked up progressively as a result of the who have advertised in Indian newspapers restoration of powercuts and prospects of their demands for pilots; adequate cotton crop the following measures have been taken :— (t) the number of Indian Airlines pilots who have aplied for posts in foreign air­ (i) Price Control on cotton yarn of lines; and counts upto 80s has been withdrawn with effect from 14th January, 1974. (d) the reaction of Government thereon 7 distribution control on the type of yarn had been withdrawn gradually by 21st THE MINISTER OF STATE IN THE October, 1973). MINISTRY OF TOURISM AND CIVIL (li) The scheme of control on pioduc- AVIATION (DR. SAROJINI MAHISHI): tion of cotton yarn upto counts 80s has (a) Government have leceived to infor­ been modified. Under the revised scheme mation to this effect. every producer of yarn is required to pack yarn for civil consumption in hank (b) Singapore Airlines has advertized for form, in February, 1974 and in every Boeing captains. subsequent month, in proportion not less (c) None have applied through the cor­ than 110% of the monthly average poration so far. proportion of yarn, in hank form, packed by him duiing the year 197?, for civil (d) Does not arise. consumption. 15 Written Answers FEBRUARY 22, 1974 Written Answers 96 (iii) Price control on cotton yam of (b) and (c). The Board of the International counts above 80s has been lifted with Airports Authority Of India had considered effect from 12th February, 1974. the need for air-conditioning of the public concourses in all its aspects before approv­ Exemption allowed to foreign companies ing the scheme. 472 SHRI D. B, CHANDRA GOWDA : Will the Minister of FINANCE be pleased Goods to be im p o rte d from USSR under to state whether Government have granted Indo-Soviet Trade Protocol for 1974 exemption to foietgn companies operating 474. SHRI R. P. ULAGANAMBI : Will in India in matters like making of security the Ministei of COMMERCE be pleased deposit by employees of firms or companies to state . or acccptance of such deposits by firms or companies and if so. the broad features (a) the number of items together with thereof ? quantity and value thereof to be imported from USSR under the Indo-Soviet trade THE MINISTER OF FINANCE (SHRI protocol for 1974; YESHWANTRAO CHAVAN) : In pur­ suance of Section 26(7) of the Foreign Ex­ (b) whethei the price of these commodi­ change Regulation Act, 1973 the Reserve ties is higher than that prevailing elsewcre Bank, of India has granted general per­ in othei countries, if so, by how much in mission with respect to firms or companies the case of each commodity; and (other than hanking companies) referred to in the said Section for the making of se­ (c) the extent of Soviet assistance curity deposits by their employees and the sought by India for Implementation of acceptance of such deposit by them. projects during the 5th Five Yeai Plan0

Air-conditioning of Bombay Airport Lounge THE DEPUTY MINISTER IN THL MINISTRY OF COMMERCE (SHRI 473. SHRI R. P. ULAGANAMBI : Will A. C GEORGE) : (a) The 1974 Tiade the Minister of TOURTSM AND CIVIl Protocol with USSR envisages import of AVIATION be pleased to state : goods worth approximately Rs. 353 Crores fa) whether about 27.4 lakhs have from USSR The major items to be im­ ported arc keiosene, diese* oil, asbestos, to be spent on the air-conditioning of Bom­ rolled steel products, zinc, copper, nickel, bay \irpoit Tx)unge at a time when the country is facing acute shortage of powei; palladium, urea, ammonium sulphate, muriate of potash, sulphur, newsprint, sun- (b) ubethct there has been any sugges­ flowei seed oil, ships, power and electro­ tion that this money should be utilised for technical equipment, mining and geologi­ increasing productivity and generating more cal prospecting equipment, printing machi­ employment; and nery, components and spares for Soviet assisted projects, construction and earth- (c) if so. the reaction of Government to moving equipment, etc. this suggestion ? (b) No, Sir, In accordance with the Tndo- Soviet TradeAgreement, imports and ex­ THE MINISTER OF STATE IN THE ports will be effected by the two parties MINISTRY OF TOURISM AND CIVIL piovided that the said goods are competi­ AVIATION (DR. SAROJINI MAH1SH1) : tive in relation to world prices (a) Taking info consideration the foreign tourist traffic passing through the airport, (c) At this stage, it cannot be stated it was considered necessary by the Autho* what the precisc extent of Soviet assis­ rity to ait-condition the lounge. tance will be during Fifth Five Year Plan 97 Written Answers PHALGUNA 3> 1895 (SAKA) Written Answers 98

Import of Nempriat from Foreign Checks lor illegal Export of Silver Countries 476. SHRI R. P. ULAGANAMBI : Will 475. SHRl fc. P. ULAGANAMBI : the Minister of COMMERCE be pleased to state : SHRI ARVIND M. PATEL : (a) the measures Government have taken to check illegal export of silver from Will the Minister of COMMERCE be the country; pleased to state ; (b) whether some of the Indian funis (a) the total newsprint which would be have exported silver to countries to which made available during the cuncnt year export of silver is completely banned through imports under firm and definite through ostensible sale to countries to contracts and through indigenous produc­ which such ban does not apply; tion : and (c) whether any penal action has been (b) the quantity and value of the news- taken; and punt imported last >car, countrywhe? (d) if so, the nature thereof?

THE DPPUrY MINISTER IN TilL THE DEPUTY MINFSTLR IN THE MINISTRY OF COMMERCF (SHRI MINISTRY OF COMMERCE (SHRI \. C. GfORC.H • (a) 1,46.000 metiic A. C. GEORGE : (a) to (d). According tonnes of newspiint from imports against to a recent decision of the Go\einment, contiacts alieady concluded as well as cxpoit of silver bullion, silver sheets and which are being concluded by the S.T.C. plates which have undergone anj. pocess and about 40,000 tonnes from indigenous of manufacture subsequently to idling, is production now allowed.

Th** quantity and value of newspiint im­ (a) whether Government of India ha\e ported in 1973 from various countries is made any move to pursuade the Govern­ as follows ment of Sri J anka to enter into an agree­ ment with the Government of India to get Countrv from where Quantity Value in bettei prices for the export of tea in ouler imported in metric Lakhs of to offset the rise in oil prices; and tonnes Rs. (b) if so, the reaction of Sii 1 anka Government thereto 7 (i) U.S.S.R. 38,359 636.36 (ti) Canada 34,767 417.81 THE DEPUTY MINISTER IN IHf: (iii) Poland 2,745 41.08 MINISTRY OF COMMERCE (SHRI (iv) Bangladesh 14,531 203.40 A. C. GEORGE) : (a) and (b) (v) Scandinavia 5,363 79.18 During the visit of the Indian Delegation (vi) Finland 1,000 15.20 to Sri Lanka from 2nd to 7th February, 1974, there was recognition by the Govern­ (vii) Czechoslovakia 2,400 32 40 ments of India and Sri Lanka of the need to ensure remunerative prices for tea in the T o t a l 99,165 1425.43 international market and thereby impiove 99 Written Answers FEBRUARY 22, 1974 Wtltten Answer* 100 the vitally needed foreign exchange earn* Amount of currency notes la circulation ings of the tea producting countries. 480. SHRI BIRENDER SINGH RAO: Will the Minister of FINANCE be pleas­ Increasing Jute Prices for Export Purposes ed to state: 478. SHRI H. X. L. BHAGAT : Will the (a) the total amount of currency notes Minister of COMMERCE be pleased to at present in circulation in the country; state whether Government are considering an increase in Jute prices for export pur* (b) whether the currency in circulation poses ? has risen further as compared to the cur­ rency in January, 1973; and THE DEPUTY MINISTER IN THE (c) the steps taken or proposed to be MINISTRY OF COMMERCE (SHRI taken to bring down the currency in circu­ A. C. GEORGE : Government lation in the country ? have already increased the fixed price for carpet backing from Rs. 4550 to Rs5000 THE M1NISTFR Ob STATE IN THE per ton. The price of other jute goods is MINIS'! RY Ob FINANCE (SHRI K. R. governed by market conditions. (JANFSH): (a) The cuirency notes in cii- dilation as on 1st Ftbiuary, 1974 amounted Aid prospects of Internationa] develop- to Rs. 6.010 ci ores. ment Association (b) As compiucd to cuirency circulation 479. SHRI BIRENDER SINGH RAO: in January, 197T theie has been 18.2 per Will the Minister of FINANCE be pleased cent rise in cuncncv ciiculation in January. to slate : 1974. (c) The cunency in circulation foims a (a) whether World Bank Pi esident has part ot the money supply with the public made a statement recently that International and sc\eral appropriate monetary measures Development Association will be bankrupt have been adopted fiom time to time to on 1st July, 1974 unless House of Repre­ regulate the expansion in money supply con­ sentatives resorted America’s $ 1.5 billion sistent with the requirements of the eco­ contribution representing one third of total nomy. The quantum of currcncy in circu­ replacement package; and lation depends upor various factors impor­ (b) if so, (lovemment’s reaction thereto? tant among which are the variations in the income of the community, and spread of banking habit. The ratio of currency in THE MINISTER OF FINANCE (SHRI money supply has declined from 72.3 per YKSHWANTRAO CHAVAN (a) : Yes, cent in 1961-62 to 61.4 per cent in 1970-71 Sir. ard further to 57.8 per cent in 1972-73* Ch) The World Bank President has stated indicating impiovement in the banking that IDA would be left with no resources habit and shift in assets preference. to commit for asistance to developing Increase in Fares by Indian Airlines countries if the Fourth Replenishment arrangements do not become effective, and 481. SHRI JAGANNAT1I MISHRA : for the Fourth Replenishment to become SHRI KRISHNA CHANDRA effective, the U.S. Congress should restore HA1.DER: America's contribution amounting to one- Will the Minister of TOURISM AND third of the total replenishment package. CIVIL AVIATION be pleased to state: Government of India believe that reple­ (a) whether Indian Airlines fares have been raised; ard nishment of IDA’s resources is vitally needed to permit IDA contribute to the (b) if so, by how much, from which date development of developing countries. and why? 101 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 102

THE MINISTER OF STATE IN TUB as long term basis so that the industry does MINISTRY OF TOURISM AND CIVIL not starve for want of newsprint; and AVIATION (DR. SAROJINI MAHISHD: (c) whether Government concluded any (a) Yes, Sir. agreement both on short term and long (b) The fares have been increased by 25 term basis with any foreign suppliers and per cent from 1*2-1974 on account Of rise if so, with what results? in fuel cost, insurance charges, landing fees and other airport charges, etc. THE DEPUTY MINISTER IN THB MINISTRY OF COMMERCE (SHRI A. C Financial assistance to Bihar GEORGE): (a) The piesent shortage of newsprint is expected to last for another 482 SHRI JAGANNATH MISHRA: yenr or two. SHRI M. S. SIVASWAMY: (b) All possible efforts are being made W'll the Minister of 1INANOE be pleas­ to secure supplies of newsprint for imme­ ed to stale : diate i equipments. Long term contracts for 3 to 5 years are also being concluded (a) whether the Cential Government are with the foreign suppliers. avvuie of the present critical financial posi­ tion of Bihai; and (c) The STC has entered into contracts for supply of 1,26,700 tonnes of newsprint

Newsprint Crisis (c) whether the Reserve Bank of India had elucidated the reasons for the influx of 483. SHRl DHAMANKAR : Will the soiled Notes ? Minister of COMMERCE be pleased to state: THE MINISTER OF STATE IN THB MINISTRY OF FINANCE (SHRI K. R. (a) how long the present alarming news­ GANESH): (a) There has been some in­ print situation is expected to persist; crease in the circulation, rather than an in­ (b) what immediate steps are being taken flux of soiled notes. In and around areas or have been taken to ensure regular sup­ of Bangalore, Calcutta. Madras, Hydera­ plies of newsprint on short term as well bad, Nagpur, Ahemdabad and Delhi. 1OJ Wrilfen A I!Swers FEBRUARY 22, 1974 Written Amll'crs 104 ·r. (b) There has been r.o complaint from (b) if so, the steps taken to arrest the any Commercial Bank in Delhi about decline which has assumed an alarming their customer's unwillingness to receive proportion? payment in reissuable notes fit for further handling. THE DEPUTY MINISTER JN THE (c) Owing to an inadequate supply of MINISTRY OF COMMERCE (SHRI A. C. fresh notes from Currency Note, Pres~, GEORGE) : (a) and (b). ln accordance Nasik, the Reserve Bm~k's offices have been with the statistics published by the United supplementing their stocks of fresh notes Nations in their Monthly Bulletin of Stu· by salvaging maximum quantities of re- ti s tics (w hich excludes trade of Centrally issuable notes. The probkm was aggt ,t- plan ned economies) the declining trend vated by the strike for about a month noticed in previous years in the India's [rom September. 1973 at the Security share in world 's exports has been :tand fwther handling. duction base, generate adequate export sur- Price and Production of Standard Cloth pluses, remove various bottlenecks in the way of exports by providing c;,,e'!tial ra w 4~5. SHRI N . SHIY:\PPA: materials. both domestic a1~d imported, market in telligence, export finance etc. In SHRl SJ\ ROJ iVlUKHERJEE: se lected cases compensatory cash support Will the '\linistcr of COMMERCE be is also extended. ln order to make the pleased to state : fndian products competitive in world mar- kets, in addition. export duties are kept (a) whet her Government propose to constantly under review and suitable acl- raise the price of stand ard cloth manu- j ustment are made from time to time as factured by the mill s; and circumstances warrar.t. (b) whether Government have asked the mills to double the production of the star..d- Hotel projects undertaken in Bibar ard cloth ? 487. SHRI HARl KISHORE SINGH : THE DEPUTY MINISTER IN THE Will the Minister of TOURISM AND MINISTRY OF COMMERCE (SHRI A. C. CLYfL A VJJ\ TION be pleased to state: GEORGE) : (a) and (b). The question of revision of the existing policy regarding (a) the number of hotel projects under- price, product ion and distribution of con- taken in the Central Sector in Bihar dur- trolled cloth is under consideration. ing 1972-73; and

Decline in India's share in world export (b) the reasons for delay in fina lising trade these projects? 486. SHRI J-IARl KISHORE SINGH: THE MlNiSTER OF STATE lN THE Will the Minister of COMMERCE be J\liNlSTRY OF TOURISM A~D ClVlL pleased to state : AVJATION (DR. SAROJINI l\1:\HISl-11): (a) No hotel project was undertaken ir.. the (a) whether the attentiOt: of Government Central Sector in Bihar during 1972-73. has been drawn to the problem of progres- sive decline in India's share in world ex- port trade; and (b) Does not arise. 105 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 106

Trade tallu between India and Yugoslavia (c) if so, its impact on the rising trend of prices? 488. SHRI P. UNN1KR1SHNAN: Will the Minister of COMMERCE be pleased THE MINISTER OF FINANCE (SHRI to state: YESHWANTRAO CHAVAN): (a) the (a) whether he led the Indian delegation available data reveal that between end to Yugoslavia for talks on economic co­ March. 1968 and end December, 1972, the operation between the two countries in the scheduled commercial banks* advances to large and medium scale industries, expressed first week of January, 1974; as a proportion of their total advances, (b) if so, the outcome of the talks held; came down from *0.6 per cent to 52.4 and pci ceni, while the proportion of their advances to whole-sale trade (other than for (e) the nature of agreements arrived at, tVod piocuremenf) came down from 14.2 if any ? per cent to 8.9 per ccnt. During this period the proportion of advances to the various THE DEPUIY MINISTER IN THE puority sectors icgislered significant gains. MINIS'! RY OJ- ('OMMF.RCl, (SHRI A. C\ Under agriculture, the proportion went up liFO RG F): (a) Yes, Sir. fiom 0.3 per ccnt to 7.0 per cent, under sjimII scale industries from 6.9 per cent (b) anti (c). \s a lesult of the discussions to 11.9 per cent and under other priority held at *he meeting of the Indo-Yugoslav Joint Committee the two sides agreed to si'ctois from less than 2 per ccnt to 4.8 per cent. adopt \.\iious measures and punide all po-sible facilities for promoting tiade and (b) No, Sir: at the end of December, industrial and economic coopeiation which 1*^72 the advances to the retail trade, as a include pci iodic exchange of trade dele­ pioportion of the total advances of the gations. participation in international fairs, scheduled commercial banks was only 2.9 collaboi.ition in industrial ventures in India pei ccnt. and in thiid countries etc. To achieve the objectives and to ensure effective solution (c) Does not arise. of problems relating to the expansion of mutual economic cooperation, the two Sale of coarse cloth in black market sides also agiced to set up three Sub-Com­ mittees :— 490. SHRI ISHAQIJE SAMBHALT: Will the Minister of COMMERCE be (a) Sub-Committee for Trade. pleased to slate: (b) Sub-Committee for Industrial Co­ (a) whether between 400 and 500 mil­ operation. lion metres of coarse cloth, meant for dis­ tribution through fair-price shops have been (c) Sub-Committee foi Economic Co­ recently sold at prices three times higher; operation in the third countries. (b) if so, the facts thereof; and Credit policy and its impact on rfeing prices (c) the steps taken to check the mal­ 489. SHRI KRISHNA CHANDRA HAL* practices and to ensure that the coarse DER: Will the Minister of FINANCE be cloth is sold through fair-price shops ? pleased to state: (a) whether a survey of credit policy has THE DEPUTY MINISTER IN THE shown that there has been “a sectoral MINISTRY OF COMMERCE (SHRI A, C. shift” in the distribution of credit; GEORGE) : (a) No such allegation has comc to the notice of (he Governmert. (b) whether a major part of credit went to retail dealers; and (b) and (c). Do not arise. 107 Written Answers FEBRUARY 22, *974 Written Answers 108 Operation ot private air services In Eastern (a) whether Indo-Bangladesh talks were sector held in Delhi on Jute trade in December, 1973; and 491. SHRI DASARATHA DEB : Will (b) if so, the salient features thereof? the Minister of TOURISM AND CIVIL AVIATION be pleased to state: THE DEPUTY MINISTER IN THE MINISTRY OF COMMERCE (SHRI A. C (a) whether Government proposed to in­ GEORGE) : (a) Yes, Sir. crease the operation of private air services (b) The delegation discussed matters re­ (both passenger and ft eight services) in the lating to long tcmt Co-opeiation between Eastern sector; the two countiie'; on production and export (b) if so, the names of private companies of iutc as well as import of raw jute by that aie going to be allowed to operate India undoi the Balanced Trade and Pay- more services ir the said sector; and menis Ari.mgement between the two coun­ tries An agi cement to import two lakh (c) whether Government propose to re­ bales of jaw jute was reached during the duce the number of flights of Indian Air­ discussions lines in that sector and if so, to what ex­ tent ? Effect of lock-out in Indian airlines on tourism THE MINISTER OF STATE IN THE 494. SHRl M. S. SANJEEVI RAO: MINISTRY OF TOURISM AND CIVIL AVIATION (DR SAROTIN1 MAHISHI): SHRl P. A. SAMINATHAN : (a) and (b). There is no such proposal Will the Mmistei of TOURISM AND However, Jamair Company was permitted CIVIL AVIATION be pleased to state* to operate on the basts of daily permits on the following sectois in the eastern region (a) whethc ’ock-out in Indian Airlines vt here Indian Airlires were not operating h is completed upset the tourism tar­ due to lock-out: get foi the year 1974: eai’s import-export policy; and demand in view of thc many imponderables ir thc situation. While Government are (d) what arc the main features of the contemplating an in depth study of the pioposed plan? long term implications of thc energy crisis, with a view to exploit the situation, steps THE DEPUTY MINISTER IN THF to improve the unit realisation for exploit MINISTRY OF COMMERCE (SHRI A. C and to increase the volume of exports, by GEORGE) : (a) and (b). Obviously, the re­ concentrating on the production of export cent meeting of thc Advisory Council on varieties have been already taken. Ttade has been referred to. The meetings of the Council ate a forum for reviewing Fall in profitability of nationalised banks the performance of the country’s economy 498. SHRI BUTA SINGH: in its commercial aspects and for consider­ SHRI M. KATHAMUTHU: ing the problems relating to expansion of exports, j emulation of imports, operation of Will the Minister of FINANCE be Tmport A Export Trade Controls, the pleased to state: working of commercial services with parti­ (a) whether there has been a steep fall cular reference to export marketing and in the profitability of Nationalised Banks; I l l Written Answers FEBRUARY 22, 1974 Written Answers 112 (b) if so, the reasons therefor; and of the 14 rationalised banks after making adjustments for payment of bonus, the (c> the steps taken by Government to im­ working funds, and the profits expressed prove the situation ? as a percentage of working funds> la res* THE MINISTER OF FINANCE (SHRI pect of the three complete years ended YESHWANTRAO CHAVAN): (a) and 31st December, 1970, 1971 and 1972 are (b) The details of the aggregate net Profits given below:— (Rs. id lakhs)

Year ended Working funds N x profits Perccu

31-12-1970 402878 690 0 .P 31-12-1971 468488 860 0.1 ■ 31-12-1972 554761 752 0.13

The audited accounts of the nationalised are issued from time to time in order to bunks for the year ended 31-12-1973 are economise expenditure and improve opera­ n d yet available. tiomtl efficicncy by rhe banks with .i view to improve their profitability. Though the aggregate profits of 1972 are less than the profits of 1971, they are Kflict on industrial growth in India as a higher than the profits of 1970. result of credit squeeze by Reserve Bank

There has, however, been a decline in 499. SHRI BUTA SINGH : the net profits expressed as a percentage of the working funds. This may be attributed SHRI BHOGF.NDRA JH A : to various factors. There has been a gene­ Will the Minister of FINANCE be ral decline in the credit-deposil ratio of pleased to state: banks owing to the adverse conditions in the economy prevailing during 1972 which (a) whether the recent credit squeeze by went to reduce the aggregate earnings of the Reserve Bank on the resources of Com­ the Nationalised Banks, Besides this, the mercial Banks have seriously affected the steps taken to realise the objectives of na­ industrial growth in India; tionalisation namely, extension of banking (b) if so, what steps Government have facilities to the hitherto unbanked and rural taken to meet the situation created by this centres in the interior and backward areas squeeze; of the country, progressive expansion of credit to the priority and hitherto neglected (c) the reaction of the State Governments sectors involving higher servicing costs, and or. this step of the Reserve Bank of India; the building up of a development oriented and banking system, have inevitably led to an increase in expenditure in terms of more (d) whether Government are considering branches, increased staff and higher inci­ to review its credit policy ? dental and operational costs of the banks. Tbe newly opened branches will take some THE MINISTER OF FINANCE (SHRI more time to stabilise themselves and earn YESHWANTRAO CHAVAN) : (a) and (b). In implementing the various credit po­ licy instructions, the banks are required to (c) Government as well as the Reserve ensure that genuine needs of production Bank of India are constantly reviewing the and movement of goods are met through situation regarding the working of Natio­ a faster turn-over of credit limits already nalised Banks. Suitable advice and guidelines sanctioned. Further, effective from 24th 113 Written Answers PHALGUNA 3, 1*95 (SAJCA) Written Answers 114 Decemb er, 1973, small scale industrial units (ii) A simplified Procedure has been covered under the Credit Guarantee Scheme introduced for clearance of appli­ have been exempted from the requirements cations for import replenishment of increased margins stipulated earlier. licences received from Registered More recently in order that the credit ie- Exporters. quirements of the export sector is not (iii) More powers have been delegated affected, Reserve Bank of India has decid­ ed to exempt increase in credit to this sec­ to the regional licensing authori­ tor from the quantitative ceiling on credit ties for issuing advance licences restriction during the current busy season to Registered Exporters. and also provide somewhat increased re­ (iv) The procedure for submitting appli­ finance facilities to this sector. Thus, the cations for import of capital flow of bank credit to industrial units is Goods has been further stream­ not likely to be affected by the current lined with effect from 1st January, credit restrictions. 1974, with a view to cut down (c) Some State Governments have stress­ delays in the disposal of applica­ ed the need for ensuring that the genuine tions within the prescribed period credit requirements, particularly of the of 60 days. Under the revised pro­ small borrowers, in the priority sectors and cedure, applications will be receiv­ export*, are not affected. ed directly by the licensing autho­ rities and not through the spon­ (d) T he position is being kept under cons­ soring authorities. tant review and suitable measures taken from time to time in the light of the emerg- (v) Powers have been delegated to the irg situation. subordinate authorities to revali­ date all categories of import licences for raw materials, compo­ Simplification of Import Rules nents and Capital Goods issued 500. SHRI RAGHUNANDAN LAL under free foreign exchange and BHATIA: Will the Minister of COM- rupee payment area and the re­ MBRC E be pleased to state: gional licensing authorities are not required to make a reference to

(b) if so, whether ELC has also temov- THE MINISTER or FINANCE ed many obstacles hampering trade deve­ (SHRI YESHWANTRAO CHAVAN): (a) lopment; and and (b). Notes were exchanged between thc Governments of India and Japan on 10th (c) the additional foreign exchange earn­ Januaiv, 1974 under which the Govern­ ings therefrom? ment of Japan would pio\ide thc Govern­ ment of India, as part of Japanese econo­ THE DEPUTY MINISTER IN THE mic aid to India for 1973-74, a sum uf MINISTRY OF COMMERCE (SHRI A. C. Yen 22,000 million (equivalent to about GEORGE) : (a) to (c). I he European Eco­ Rs. 52.80 crores) comprising of Debt Re­ nomic Community had established a duty lief Loan of about Yen 14,977.91 million free annual quota of $ 1 million each for (equivalent to about Rs. 35.95 crores) and handloom cotton fabrics and hardloom silk a Commodity Loan of Yen 7,022 million fabrics since 1969. Following the enlaige- (equivalent to about Rs. 16 85 crores). ment of the Community by the accession The loan agreement with the Txptil of three more countries, the Community has decided to double these quotas for the Import Bank of Japan, the agency through year 1974. It may be clarified that these which the Japanese aid to India is chan­ nelled, was also signed on 30th January, quotas are available for being utilised not 1974 for the Debt Relief Loan. The loan only by India but also by certain other developing countries. is for rescheduling of principal repayments due during 1973-74 in respect of past Yen Credits. The terms of the loan are : re­ Z. The Government of India is conti­ payment over a period of 25 years inclu­ nuously in touch with the authorities in the sive of a grace period of 10 years and Community for removal of the remaining interest payment at the rate of 4.0 per administrative and other obstacles hamper­ cent per annum. ing the tmde of handloom goods. The agreement with the Export Import Bank ot Japan for the Commodity Loan 3. It is not possible to give a precise is yet to be signed. The loan will be figure of the additional foreign exchange for the purchase from Japan of compo­ cammgs that would accrue to India as a nents, spare parts, raw materials, etc. re* result of these measures. quired for the maintenance of the Indian JI7 Written Answers PHALGUNA 3* 1895 (SAKA) Written Answers 118 economy. The terms of the loan will be: the normal requirements, arising from es­ repayment over a period of 25 years inc­ calation of international crude oil and fer­ lusive of a grace period of 7 years and tiliser prices, is possible at this stage. Ad­ interest payment at the rate of 4.0 per ditional foreign exchange needs would de­ cent per annum. pend on the levels at which prices stabilise over a period and the extent to which (c) The Government of Japan have also economies can be made in consumption. agreed to finance the foreign exchange cost upto the extent of Yen 32.9 billion (equi­ (b) and (c). Steps have been taken to curb valent to about Rs. 78.96 crores) of three consumption of petroleum products to the fertilizer plants to be set up in the public extent possible. Efforts are also being sector in the Fifth Plan period. While the made to boost country's expqrts to increase Japanese Government would make a firm our export earnings. The problem of es­ commitment in the current fiscal year 1973- calation of oil prices is being studied in 74 for one plant, they would make similar international forums and Government are commitments for one plant each in the keeping in touch with these developments. subsequent two fiscal years 1974-75 and Suitable measures will be taken as and 1975-76. The loan agreement for the when necessary. first plant specifying the quantum and the terms and conditions is expected to be Schcme of suggestions/incentives launched signed during the current fiscal year. by Central Board of Direct Taxes 505. SHRI K. M. MADHUKAR: Will (N.B. The rupee equivalents of the Ysn the Minister of FINANCE be pleased to amounts have been arrived at the Central state; rate of exchange of 1 Yen = Rs 0.024) (a) whether the Central Board of Direct India’s requirements for foreign exchange Taxes have initiated a scheme of sugges­ 504. SHRI TRIDIB CHAUDHURT: Will tion/incentive; the Minister of FINANCE be pleased to (b) whether Government have directed Slate: Commissioners and Assistant Commissioners (a) whether any fiscaf estimate of addi­ to encourage the members of the staff of tional foreign exchange requirements for the Income-tax Department to avail them­ the current financial »tar (1973-74) and selves of the opportunities available; and the coming year (1974 /5) over and above the country’s normal foreign exchange (c) if so, the salient features thereof? needs due to the escalation of international crude oil prices and fertiliser prices has T1IE MINISTER OF STATE IN THE lion/incentive; MINISTRY OF FINANCE (SHRI R. K. GANESH) : (a) The Depart­ (b) the measures taken to meet these ment of Administrative Reforms had for­ additional demands on foreign exchange; mulated a Suggestions Scheme of cash re­ and wards for sugycsuuns emanating from Gov­ (c) whether any contacts have been made ernment servants for improvement® in with the World Bank, IMF* IDA and other office and administrative procedures and organisation with a view to ascertain the this scheme has been in force since 1964. likelihood of receiving additional foreign The Direct Taxes Enquiry Committee have exchange assistance to meet these addi­ recommended, inter alia, thul the scheme tional demands? needs to be reactivated. Accordingly, the instructions on the subject were reiterated THE MINISTER OF FINANCE (SHRI by the Central Board of Direct Taxes in YESHWANTRAO CHAVAN) : (a) No May, 1973. estimate of additional foreign exchange needs in 1973-74, over and! above (b) Yes, Sir. 119 Written Answers FEBRUARY 22, 1974 Written Answers 120 THE DEPUTY MINISTER IN THE (c) The salient features of the Scheme MINISTRY OF COMMERCE (SHRI A. are as follows:— C GEORGE) : (a) and (b) Yea, Sir.

Suggestions for improvement in organi­ (c) The two Prime Ministers felt that sation or job methods and procedures and there was scope for substantial increase in for maintenance of integrity in adminis­ trade to the benefit of both countries and tration are eligible for reward. also agreed on the desirability of an ex* change of trade and economic missions between the two countries. Rewards may be by way of cash and (d) It is not possible, at this stage, to merit certificates/letters of commendation quantify what might be the additional fore­ Cash rewards should not exceed the ceiling ign exchange earning on account of in* of Rtt. 1,500 in each case. The reward creases which might come about in trade. can also take the foim of cash payments, advance increments, national savings certi­ Helipads and airstrips constructed hi ficates or even gifts of useful articles, such Orissa as fountain pens, watches, etc. The grant of every reward is to be mentioned in the 507. SHRI R. R. STNGH DEO : Will the Minister of TOURISM AND CIVIL AVIA­ character roll of the author. The reward, TION be pleased to state: however, cannot take the form of out-of- turn promotion. (a) the number of helipads and airstrips consti ucted m various parts of Orissa during the last three years; The reward is to be made only foi (b) the number of these helipads and suggestions which are accepted for imple­ airstrips which were specially put up for mentation. Suggestions which in the Prime Minister’s visit to various parts of opinion of the appropriate Com­ Orissa, mittee are prima facie good bur (c) whether these helipads and airstrips would require to be tested for workability were subsequently used for any other pur­ arc first to be tried out before a final poses; and decision regarding their fitness for rewaid (d) the amount spent in constructing in taken. these helipads and aiistrips?

THE MINISTER OF STATE IN THE Visit by New Zealand Prime Minister to MINISTRY OF TOURISM AND CIVIL New Delhi AVIATION (DR SAROJINI MAHISHI) : (a) Neither the Civil Aviation Department 506. SHRI R. R. SINGH DEO: Will the nor the Ministry of Defence has construct­ Minister of COMMERCE be pleased to ed any helipad or airstrip in Orissa during state: the last three years.

(a) whether the Prime Minister of New (a) to (d) Do not arise. Zealand recently visited New Delhi; Lufthansa Boeing crash near PaUun Airport (b) whether discussions were held for 508. SHRI R. R. SINGH DEO : increasing economic collaboration between SHRI B. S. BHAURA : the two conntties; Will the Minister of TOURISM AND CIVIL AVIATION be pleased to state : (c) if so, the broad outlines thereof; and (a) whethei investigation has been made (U) the anticipated additional foreign ex­ in regard to the causes of the recent Luf­ change earning consequent upon decisions thansa Boeing crash near Palam Airport, taken during these discussions? Delhi; 121 Written. Amwer* PHALGUNA 3, 1895 (SAKA) Written Answers 122 (b) (he important observations made in Amount toured wffh the Life Insurance the enquiry report and action taken there­ Corporation o f India on ; apd 510. SHRI R. R. SINGH DEO : Will (c) whethei a copy of the report will be the Minister of FINANCE be pleased to laid on the Table? state : (a) thc amount insured with the Life THE MINISTER OF STATE IN THF Insurance Corporation of India in 1971-72, MINISTRY OF TOURISM AND CIVIL 1972-73 and 1973-74; AVIATION (DR. SAROJINI MAHISHI) : (a) Investigation by a Court of Inquiry is fb) percentage of increase in thc Life in progress. Insurance Corporation business during the last three years; and (b) ami tc). Do not aiise. (c) whether the increased business is as per Government’s expectations and if not, the reasons for the failure of the Life In­ surance Corporation in achieving the tar­ Recovery of cancelled notes gets earlier laid down in this regard ? 50«*. SHRI R. R. SINGH DEO : THF MINISTER OF FINANCE (SHRI SHRI PRABODH CHANDRA: YESHWANTRAO CHAVAN) : (a) and (b) The total new business written by Will the Minister of HNANCE be the ITC during the last three years and pleased to state : the current year upto November, 1973 and thc percentage increase over the previous (.0 whether the Delhi Police recently year are as under : recoveitd a bundle of one rupee cancelled notes; Year Total new Percent­ business age in­ sum as­ crease (b) whcthei any investigation has been sured over thc made as to hast the cancelled notes happen­ (crores of previous ed to be in circulation; and Rs.) year „ — _ — - (c) thc action, if any. taken against the 1970-71 . . 1303.08 25,8 Reserve Bank officials who are suspected 1971-72 . 1639.89 25.8 to be involved in this racket? 1972-73 . . 2075.20 26.5 1973-74 . 971.72 16 8 THE MINISTER OF STATE IN THE (upto 30-11-1973) MINISTRY OF FINANCE (SHRI K. R. GANESH) : (a) The Reserve Bank of India made over a packet of cancelled one (c) Yes, Sir. rupee notes to the Delhi Police for inves­ Foreign Exchange Regulation Act. 1973 tigation. The packet was presented for ex­ change over the Bank’s counter on 511. SHRI RAJA KULKARNI : Will 3rd December, 1971. the Minister of FINANCE be pleased to state:

(b) The matter is under investigation. (a) whether Government have, under guidelines for administering Section 290F (c) The Bank will consider appropriate of the Foreign Exchange Regulation Act. action on receipt of the investigation report. 1973 asked Foreign Companies in India to 62 LSS/73 —5 123 Written Answer* FEBRUARY 22, 1974 Written Answers 124 reduce equity holdings to less than 40 per (a) whether a committee consisting of cent or to convert them into Indian Com- Shri Mohd. Yunus & Shri K. Kishore, panies if they are branches; Officers of the Ministry of Commerce, was (h) whether Government will lay on the ‘" V 1* Table of the House a statement as to WOrkm* of ,he S,ate Trad,ng Corporate; which companies have been asked to follow (b) if so, the terms of reference of the the guidelines and what period has been said committee; given to each of them; and (c) whether the said committee has sub- (c) what is the response of the Foreign mitted its report and if so. what are its Companies to Government Directives? findings; and

THE MINISTER OF FINANCE (SHRI h.(f\ ^ * '11 YESHWANTRAO CHAVAN) : (a) and b' U d °" ““ Table? (b) In accordance with the guidelines for THE DEPUTY MINISTER IN THE administering Section 29 of the Foreign MiN)st RY OF COMMERCE (SHRI Exchange Regulation Act, 1973, a copy of A c GEORGE): (a) to (d). A Committee which was laid on the Table of the Lok of officen, was ear|ier set up withln the Sabha on the 20th December, 1973, Indian Min,stry to sUldy the wolVing of the Slale companies havmg more than 40 per cent Trading Corporation Subsequently, this foreign shareholding will be required to was tc.comlituted by an jntc,-Ministerial have, within a specified period, Indian par- Actio„ 0rm)p to go into it, w0lUng and ticipation ranging fiom 26 per cent to 60 Jn , measur^ t0 in,p,ove ope,.,- per cent depending upon the nature of (ions and strenBthen its organisational set their activities. Similaily, branches of up t o , Group has now submitted its foreign companies in India will be required to convert themselves, within a specified period, into Indian companies with Indian Financial Assistance to Bihar for drought participation ranging fiom 26 per ccnt to relief works 60 per cent depending upon the natuie of „ 3 S H R | SUKHDLO PRASAD their activities VCRMA . Will the Mimstei of f INANCF Such Indian companies/biinthes aie re be pleased to state quircd to submit then applications to the (j) * helhcr the S|Jtc (iov«.,nmCTt of Reserve Bank of India fo. pel mission to B l|w hav(J rei;em(y apploached ,he carry on t o r activities in India withm a rcntre reimburse the expenditure mcu.- penod of six months from 1st January, 1974, reJ b ^ ^ Cl0vcmmcnt on drought the date on whtch the Fo,e.,m Exchange works dnr, the 1973.74 ,ind Regulation Act came into force The ques­ tion of the Reserve Bank of Tndia asking ^ ^ s0’ t^le tota* air>ol|nt sPeT>t by the such Indian companies/branches to reduce State Government under this head and how their foreign holdings etc. will come up for t|ie Central Government have agreed consideration while taking decisions on to reimburse the expenses ? the applications of such companies. THE MINISTER OF STATE IN THE - . _ , , . . ... MINISTRY OF FINANCE (SHRI K R (c) It is not possible to furnish this GANFSH) . (a) and (b) A ccilmg of information at this stage. expenditure of Rs 1 76 crores on various in. Report of Yunus Committee on the fbeen ou*ht approved relicf. as mea^ eligible r« for Central ,92 3 J4 assis- . ' tance. The Government of Bihar have not 512 SHRT RATA KULKARN1 : Will so far reported the progress of expenditure the Minister of COMMFRCE be pleased as against this ceiling for purposes of to state : Central assistance. 12,5 Written Answers PHALGUNA 3, 1895 (SAKA) Wri/fen Answers 126 Dearness Allowance to Central Government : Reserve Bank. In January, 1074 Reserve Employees Bank decided i/o exempt credit to the export sector from the quantitative ceiling 514. SHRl SUKHDEO PRASAD and provide refinance facilities on a bank- VERMA : Will the Minister of FINANCE by-bank basis on a review of each bank’s be pleased to state : performance in export sector and the sec­ (a) whether dearnes allowance rise to toral deployment of its credit. The facili­ Central Government employees is due since ties which are provided by the Reserve December, 1973 as the All India average Bank are intended to ensure that exports consumer price index has registered requi­ are not hampered due to any financial site increase in the thcee months period bottlenecks. As export performance is de­ i.e. September-November, 1973 ; and pendant upon a number of factors besides availability of credit, it is not possible to

THE MINISTER OF STATE IN 'I Hli Proposal to re-introduce system of serving MINISTRY OF FINANCE (SHRI k. R. breakfast and lunch to Air passengers by GANKSH) : (a) and (b). The 12 monthly Indian Airlines average of the All India working class con­ 516. SHRl SARO! MUKHFRIEE : sumer price index for the month ending December, 1973 having gone beyond the SHRI SHYAM SUNDER MOHA- 232 rnaik. a further instalment of dearness PATRA • allowance would be due, in terms of the Will the Minister o! TOURISM AND formula of the Third Pay Commission, to CIVIL AVIATION be pleased to >he C ential Government employees draw­ state : ing pay upto Rs. 900 in the revised scales of pay with efTect from 1st January, 1974. (a) whether scrinp of btoakfd«t pnd The matter is teceiving attention. lunch to passengers has been discontinued by the Indian Aiilines ; Relaxation of credit facility for the export (b) whether the svMc«n of giviriK fra­ sector grance paper, lo/.en:vi, good dishes of 515. SHRI SUKHDEO PRASAD breakfast and cold dunks lo the passengers VERMA : Will the Minister of FINANCE earned a very good name for the Indian be pleased to state : domestic air service throughout the world; and (a) whether Government have further relaxed the credit facility for the CAport (c) whether Government propose to sector; and direct the Indian AiiUnes authorities to re­ introduce that s>stem, eun by raising the (b) if so, to what extent the exports freight by a few rupees to make up the are likely to be stepped tip during the vear losses ? 1974? THE MINISTER OF ST ATE IN THr THE MINISTER OF FINANCE (SHRI MINISTRY OF TOURISM AND CIVIL YESHWANTRAO CHAVAN) : (a) and AVIATION (DR. SAROJINI MAHI- (b). In November, 1973 Reserve Bank had SHI) : (a) and (b) Yes Sir. The decision imposed on the scheduled commercial of Indan Airlines to discontinue mea‘> banks, as part of the package of measures on board is in line with the practice fol­ to restrain credit, quantitative ceiling on lowed by comparable domestic carriers in* credit expansion and refinance from the other countries. 127 Written Answers FEBRUARY 22, 1974 Written Answers 128 (c) No, Sir. It is understood Indian tdtno-econotnk survey of Tea Industry Airlines are in touch with catering esta­ by Tea Board blishments at the majoi airports to preside packed snacks for sale to passengers. 518. SHRI SAROJ MUKHERJEE : SHRI M. K. KRISHNAN : Payment to the depositors of Central Bank Will thc Minister of COMMERCE be of India pleased to state : 517. SHRI SAROJ MUKHERJFE . (a) whether le a Board has decided to Will the Minister of FINANCE be pleased conduct a techno-economic survey oi the to state : Tea Industry in the various regions of the country on a regular basis, (a) the measures taken to pay back tne (b) it so, the agency which has been en­ deposits of Centiat Bunk of India, Calcutta, trusted with the above work; and the entire building of which was com­ pletely gutted in the beginning of the year (c) whether special emphasis is being 1974: and given in the above study to the need lor nationalising all thc foieign tea plantations (b) the steps vrgt»osted to see that such in India ’’ horrible situation mav not iccur at least in THl DEPUTY MINISTER IN T1JL case of such concerns with immense pro­ MINISTRY OH COM MERCF (SHRI A C perty and which deal with so manv poisons' GI ORC.W : (a) Yes. Sir. deposited money and valuables V (b) A techno-economic survey of tea THE MINISTER OF FINANCl (SHKI industiy in Darjeeling during 1973-74 has YFHWANTRAO CHAVAN) : (a) Cent been entiusted bv the le a Board to the ral Bank of India has reported thai National Council of Applted Economic it has been making intenm payments Research, New Delhi. upto Rs. 500 from J 1th January, 1974 to It) The objcct of the survey is to its Home Savings Depositors. Huthci, identify the specific problems of the indus­ with a view to avoiding dislocation in the try in a particular tea growing area so as day to day tian«act:ons in business ol oihor to enable the Board to initiate suitable customers, bank is p*rmittinj h.igei with remedial measures. drawals subject to verification in due course. Thc Bank has further reported that it has Financial Assistance from World Bank for started a special reconstruction cell, undei development of Calcutta the charge of in Assistant Cieneial 519 SHRI DINhN BHAITACHARYYA: M anager specially deputed by the Central Will the Minister of FINANCE be pleased Office, Bombay. Thc Bank expects no to state- difficulty in being able to meet the c!i ims of its depositors and allow normal opera­ (a) whether the World Bank team which tions in theii acctnmU as the clients mav visited India in October, 1973 has given desire. jj * the cleaiance for drawing the loan of about Rs. 25 crores from the World Bank for thc development projects of the Cal­ (b) The West Bengal Government have cutta Metropolitan Development Authority; constituted a team to investigate into the causes of fne and its investigation is not (b) whether the financial participation in yet completed. Sntcial mcasutes. it anv. the CMDA projects by the Government of to be taken to prexent such lire hazards India is a necessary prerequisite for the can be considered o*i‘y after the findings sanctioning of the loan by the World Bank; of thc team become available. and 129 'Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 130 (c) if so, whether the Government of be increasingly unsatisfactory. In particu­ India has taken any decision on this lar, when major currencies are floating, the matter ? transaction value of the SDR is likely to vary from day to day depending on fluc­ THE MINISTER OF FINANCE (SHRl tuations in exchange rate of a currency vis- YESHWANTRAO CHAVAN) : (a) Gov­ a-vis the dollar. This has affected the use ernment of India have signed an agreement of SDR in settlement of international pay­ with the Internationa) Development Asso­ ments. In recognition of this fact, the ciation, the soft lending affiliate of the Managing Director of the IMF has pro­ World Bank, on September 12, 1973 for a posed the valuation of SDR in terms of credit of US Dollars 35 million (about a standard basket of currencies during the Rs. 26.25 crores) for Calcutta Urban transactional period, piior to the reform Development Project to be executed of the international monetary system. This through Calcutta Metropolitan Develop­ proposal was considered by the Committee ment Authority. of Twenty at its fifth meeting held in Rome on January 17-18, 1974. The Committee ; Committee of Twenty has (a) whether the financial e\peits fiom asked the Executive Directors of the IMF major world trading nations have proposed to expedite their studies of these matters using 14 ke> paper currencies to replace with a view to early adoption by the Fund gold as the basis for commerce : of this method of valuation. India is in favour of defining the value of Special (b) whether the above scheme has been Drawing Rights in terms of a standard accepted by the International Monetary basket of world currencies provided the l;und; and rate of interest on Special Drawing Rights (c) the reaction of the Gpvermncnt of is kept at a low level. India to the above proposal ? Disposal of small aircraft in the Fleet of Indian Airlines THE MINISTER OF FINANCE (SHRl YESHWANTRAO CHAVAN) : (a) to

S. Party to whom sold Type of Number Disposal Condition/Remarks aircraft value

(Rs in lakhs) 1972-73: 1. Oman Investment Co Dakota 0 60 C ci Ulicatc of air- (on 2-11-72) woiihiness expi­ red lime expucd engines. 2. M P. Government Dakota 0 50 -do- (on 1-3-73) 3 Viscount 1 26 Sold by auction as scrap after remo­ ving engines, pro­ pellers and acces- SOMcS 1973-74-

1— Airborne India Dakota J 4S torhfiealc ot Au (In February, 1974) worthiness c\- pued. Paihal In- gine hrs availa­ ble .2 Dakota. 0 32 Sold bv auction as sciap, without en­ gines and pi ope l- lers 3. Viscount 1 01 Sold by auction as scrap after remo­ ving engines, pro­ pellers and acce­ ssories.

Increase tn Tourists daring 1973 (c) the names of the countries f o il where maximum tourists came to visit 522. SHRl FATESINGHRAO GAEK- India** WAD; THE MINISTER OF STATE IN THF SHRI VEkARIA : MINISTRY OF TOURISM AND CIVIL AVIATION (DR. SAROJINT MAHISHI) : Will the Minister of TOURISM AND (a) Yes, Sit. CIVIL AVIATION be pleased to state: (b) Foreign tourist arrivals in India re­ corded an increase of 19.5 per cent in (a) whether theie was any increase in the 1973 over the preceding '^ai. The foreign number of tourists to India during 197?; exchange earning during 1973 are estimat­ ed at Rs. 67 5 crores. (b) if so, the percentage of increase and the total amount of foreign exchange earn­ (c) USA, U.K., Franc*, West Germany, ed dunng the above period; and Sri Lanka, Japan, Malaysia, Italy, Australia, 133 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 134 and Canada are the first ten countries from considering such proposals, Government where above 68 per cent of total tourists endeavour to bring about the maximum came to India. rationality in wage policies.

Trade deficit during 1973 Proposal to retrench staff fai Indian Airlines 523. SHRI PRABODH CHANDRA : 525. SHRI PRABODH CHANDRA ; Will thc Minister of COMMERCE be Will the Minister of TOURISM AND pleased to state: CIVIL AVIATION be pleased to state: (a) whether our country had trade de­ (a) whether there is any proposal to re ficit with foreign countries during 1973; trench some staff in Indian Airlines; and (b) if so, the number of persons in each (b) if so, thc reasons thereof? category; and (c) the reasons therefor? THE DEPUTY MINISTER IN THU MINISTRY OF COMMERCE (SHRI A. THE MINTSTFR OF STATE IN THE C. GEORG F) : (a) Yes, Sir. MINISTRY OF TOURISM AND CIVIL (b) The trade deficit was on account jf AVIATION (DR. SAROJINI MAHISHI): faster increase in the rate of growth >f (a) No, Sir.' imports of ifems like food grains, fertili­ sers, POL, etc., as compared to exports (b) and (c) Do not arise. (including re-exports.) Success Achieved by Indo-British Hot Air Balloon Team Demand for Rationalised Wage Pattern In Public Sector 526. SHRI NAWAL KISHORE SHARMA: Will the Minister of TOURISM AND 524. SHRI PRABODH CHANDRA : CIVIL AVIATION be pleased to state: Will the Minister of FINANCE be pleas­ ed to state: (a; whether Indo-firitish Hot Air BaUoo* Team which launched a balloon recently (a) whether some of the administratois has achieved success in its mission; of public scctor undertakings have callcd for a rationalised wage pattern in the pub­ (b) if so, thc extent to which the experi­ lic sector; and ment has been helpful in forecasting thc weather conditions; and (b) if so, the reaction of Government thereto? (c) thc extent to which such balloons would be cheaper than the present balloon THF MINISTER OF STATE IN THE system of observatories in the country? MINISTRY OF FINANCE (SHRI K. R. THF MINISTER OF STATE IN THE GANESH): (a) Yes, Sir. MINISTRY OF TOURISM AND CIVIL AVIATION (DR. SAROJINI MAHISHI): (b) Government are of the view that (a) A hot air balloon, launched jointly by rationality in wage policies should be the Ballooning Club of India and the Bri­ achieved to the extent possible. Govern­ tish Balloon and Air Ship Club of the ment have issued certain general guidelines U.K. is reported to have reached a height on important aspects of wage policies in of 44,500 feet at Bhopal on 25 January, order to avoid undue differences. At pre­ 1974. sent, there is a restraint on public enter­ prises effecting any general revisions of (b) The balloon flights were undertaken wages and fringe benefits without obtain­ for sport and not for the purpose of wea­ ing prior approval of Government. While ther forecasting. 135 Written Answers FEBRUARY 22, 1974 Written Answers 136 (c) Do cs not arise. not to hurt production, export* and other priority sectors. Development of I M c il Foid of Nahv* farh and Jaigarfa In Jaipur Financial benefits to Policy Holden 327. SHRI NAWAL JKISHORE 529. SHRI N. K. SANGHI: SHARMA: Will the Minister of TOURISM AND CIVIL AVIATION be pleased to SHRI BISHWANATH JHUN- JHUNWALA: state: (a) whether Rajasthan Government have Will the Minister of FINANCE le sent a proposal for development of famous pleased to state: historical forts of Nahargarh and Jaigarh (a) whether the LIC management had in Jaipur; proposed to give additional financial bene­ (b) if so* whether Government of In­ fits to its employees to a tune of Rs. 6 dia have accepted the proposal; and crores; (c) if so, when the work is likely to (b) whether correspondingly Govern­ start? ment have considered the desirability :>f giving additional financial benefits to the THE MINISTER OF STATE IN THE policyholders either by raising the rates MINISTRY OF TOURISM AND CIVIL of bonus or by linking the value of lbs AVIATION (DR. SAROJIN1 MAHISHI): matured policy to the price inde.\ as is the (a) No specific proposal has been received practice in the foreign countries; and from the Government of Rajasthan. (c) if not, the reasons therefor? (b) and (c). Do not arise. THE MINISTER OF FINANCE (SHRI Reviewing of Credit Policy with Governor YESHWANTRAO CHAVAN): (a) Yes. of R.B.I. Sir. 52K. SHRI K. LAKKAPPA: (b) and (c). No. Sir. Any increa.se in the rates of bonuses for the participating SHRI P. M. MEHTA: policyholders will depend on the amount Will the Minister of FINANCE be pleas­ of surplus which is disclosed as a result ed to state : of the actuarial valuation once in two years. fa) whether Government reviewed the credit policy with the Governor of the The suggestion to link the amount of the Reserve Bank of India on 2nd January, matured policy to the price index is not 1974; and a feasible one for this country when the Life Insurance Corporation is required to (b) if so, the conclusions arrived at? invest 75 per cent of its investible funds in Government and “approved” securities. THE MINISTER OF FINANCE (SHRI Further the equity market which forms the YESWANTRAO CHAVAN) : (a) and basis of such Schemes in foreign count­ (b) The Union Fiance Minister had ries would not sustain such a Scheme discussions with the Governor, Reserve here. Bank, and Heads of a few major banks on 2nd January, 1974 on the credit policy. Disparity In Wages The consensus at the meeting was that the 530. SHRI N. K. SANGHI : Will the present policy of monetary restraint should Minister of FINANCE be pleased to continue in view of the current economic state: situation. It was also agreed that the situa­ tion would be kept under constant review (a) whether for every rise of four points for such actiofc as might be necessary, so as in the cost of living index, an employee 137 Written Answers PHALGUNA 3, 139 5 {SAKA) Written Answers 138 in tbe L.LC. gets a neutralisation of 6 per vol ved in accidents at or near Delhi ait* cent whereas the rate of neutralisation is port. A Court of Inquiry headed by a much less for a Central Government emp­ Judge of the Delhi High Court is investi­ loyee; gating into the recent accident to Lufthansa Boeing 707 aircraft in 20th December (b) if so, the percentage of neutralisation 1973. Causes of the other five accidents of cost of living index now applicable to are given in the statement laid on the table Bank employees. Food Corporation, Indian of the House which will show that all these Oil Corporation and other public sector accidents were due to human error, and that undertakings and the Central Government there has been nothing wrong either with employees; the facilities available at the airport or its (c) if the rates are not uniform, th<‘ topography. {Placed in Library. See No, different principles that have been adopted LT-6192/74]. for the different rates and whether this is one of the sources of disparities in wages; and Having regaid to the apprehensions in thc public mind, as reflected through the (d) if so, what steps are being contemp­ press reports, the Director General of lated uniformity on this one issue which Civil Aviation took immediate steps to en­ affects all uuge earners equally ? quire into the functioning of the Instru­ ment Landing System at Delhi airport. All THF MINIS! I,R OF STATE IN THF thc experiments and tests conducted so far, MINISTRY OF FINANCE (SHRI K. R. including tests carried out by thc suppli­ CiANFSH) : (a) to (d). The material is ers of the ILS equipment, have indicated being collected and will be laid on the that there is no flow in thc functioning of Table of the House as soon as posible. the equipment. Ahr Accidents at Palam Airport 531. SHRI N. K. SANGHl : Will the Profit on Export of Basmati Rice by S.T.C. Minister of TOURISM AND CIVIL AVI­ ATION be pleased to state: 532. SHRI N. k. SANGHl : Will the Minister of COMMFRCE be pleased to (a) whether almost all air accidents at state : Palam Airport in thc past had occurred between the outer marker and the middle- (a) whether the State Trading Corpora­ marker; tion has made a record profit on the export of basmati rice during the last year and if (b) whether Government have considered so, the extent thereof; and thc desirability of instituting a thorough probe into this peculiar phenomenon either by Indian experts or in collaboration with (b) the names of items in which the Cor­ foreign experts; and poration could achieve such good results and those where the exports have gone down with reasons therefor during the (c) whether any detailed investigation into the matttr has already been made and pame peiiod? if so, the findings thereof? THE DEPUTY MINISTER IN THE MINISTRY OF COMMERCE (SHRI A. THE MINISTER OF STATE IN THF. C. GEORGE): (a) The STC has made MINISTRY OF TOURISM AND CIVIL a profit of Rs. 49.62 lakhs on export of AVIATION (DR. SAROJINI MAHISHI): (a) to (c). During the last eight years rice shipped upto December 1973. commencing from January 1966, six air­ craft operating scheduled services were in­ (b) A statement is attached. 139 iVritten Answers FEBRUARY 22, 1974 Written Answers- 140 Statement (b) if so, the gist of the demands of Central Government Employees and the The STC has achieved increases in the reaction of Government thereon? exports of the following items:— THE MINISTER OF FINANCE (SHRI Rupees in Lakhs YESHWANTRAO CHAVAN): (a) and Items 1973-74 1972-73 (b) The Third Pay Commission has made April April its recommendations on all the matters in­ 73— 72— cluded within its terms of reference like ■ ■ Jan­ Jan­ pay scales, allowances, benefits and facilities uary uary and conditions of service of the employees, 1974 1973 it has, however, interpreted the term ’‘conditions of service” in a limited sense Army software 61 25 and has excluded matters relating to Pro­ Benzene 47 motion Procedures. Character Rolls. Gov­ Paraffin wax . 17 — ernment Servant Conduct Rules, Political Gum rosin 19 — Rights, Right of Association, Machinery Drugs/chemicals 6 2 for negotiation and settlement of disputes and Disciplinary Proceedings, from its pur- Gramophone records 10 .... v'ew. also because all these matters had Dried fish . % 41 been examined only some time back by a Spices . 8 number of high-powered Commissions like Cement. 159 136 the Administrative Reforms Commission. Natural rubber 112 ... No representation has been made either Footwear 520 454 orally or in writing aguinst any of Finished leather 78 71 these matters. On the points raised by the Staff Side of the Nation­ Leather goods & com­ ponents 96 45 al Council of l.C.M. on the Commission’s recommendations, discussions were held Caster oil 1352 1043 with their representatives in September last, Opium . 221 218 and their views were also taken into ac­ Lemongrass oil 187 65 count while taking decisions on the Com­ Myroblans 8 — mission's recommendations relating to em­ Art silk fabrics 884 529 ployees in Classes IT, HI and IV. At the instance of the Staff side, it l>as also beer* agreed to set up committees of the Nation­ The STC expects a decline in exports of al and Departmental Councils to look in­ some items, the production of which is to cases of certain anomalies arising out co-related to the availability of crude oil of the implementation of the Government and vegctable/edible oils or whose export orders on the recommendations of the is facing competition from substitutes or is Commission relating to the common and affected by other constraints. uncommon categories of employees respec­ tively. Settlement of Issues Left Unsettled by Third Pay Commission Directions issued by Reserve Bank of India to Foreign Companies for Acquiring or 533. SHRI RANABAHADUR SINGH: Transfer of Immovable Properties by Will the Minister of FINANCE be pleas­ them ed to state: 534. SHRI RANABAHADUR SINGH: (a) whether any representation has been SHRI G. Y. KRISHNAN: submitted to his Ministry or any deputa­ Will the Minister of FINANCE be pleas­ tion met him personally about settlement ed to state: of all issues left unsettled by the Third Pay (a) whether the Reserve Bank of India Commission Report; and has issued directions to the persons who are 141 Written Answers PHALGUNA 3, 189 5 {SAKA) Written Answers 142 not citizens of India and companies other Economy effected in Government Ex- than banking companies to obtain permis­ penditure sion for acquiring, holding, transferring or disposing of any immovable property in 536. SHRI P. G. MAVALANKAR: Will India; and the Minister of FINANCE be pleased to state: (b) if so, a gist thereof and the results achieved? (a) whether any economies in Govern­ ment expenditure have been effected during THE MINISTER OF FINANCE (SHRI the last four months; and YFSHWANTRAO CHAVAN) : (a) and nk cluding the amount saved against each head of India a>c laid on the Table of the of expenditure? House }AW<

Fuel uplift from Indian Airports by 537. SHRI P. G. MAVALANKAR: Foreign Airlines Will the Minister of COMMERCE be pleased to state : 535. SHRI RANABAHADUR SINGH : Will tbe Minister of TOURISM AND (a) whether groundnuts arc expotted; CI\1I \\ I V1TON be pleased to state: hi) wbesher the Union Government have (b) if so. the quality and quantum of recently >i*qitested the foreign airlines groundnut exported and the countries to to icduet their fuel uplift from Indian air­ which they are exported; and ports or reviewed their policy in this re- gaid; and (c) the details of foreign exchange earned on this account during the first (b) if the broad features thereof? nine months of the current financial year ?

THE MINISTER OF STATE IN THE THE DEPUTY MINISTER IN THE MINISTRY OF TOURISM AND CIVIL MINISTRY OF COMMERCE (SHRI A. AVIATION (DR. SAROJtNl MAH1SH1): C. GFORGF): (a) Yes, Sir. (a) and (b). In view of the difficult fuel situation, the Director General of Civil (b) and

Statement Deficit Financing Statemet showing country-wise export of 538. SHRI P. G. MAVALANKAR: groundnuts during the year 1973-74 upto will the Minister of FINANCE be pleased August, 1973 t0 stale; Qty. in Tonns/ (a) the total amount of deficit financing Value in ’000t resorted to so far during the eleven months of Rs. 1973-74 (upto August, of the current financial year; and 1973) (b) the concrete results, if any, of ...... ------...... Government plans to effectively curb thc S. Country/Commodity Qty. Value additional deficit financing? No. THE MINISTER OF FINANCE (SHRI 1. Groundnut a, Kernels, H.P.S. YfcSHWANTRAO CHAVAN): (a) and Bulgaria 105 275 (b). Additional commitments had to be Czechoslovakia 56 201 undertaken by Government on account of revision of pay and allowances of Govern­ German Dem. Rep. 235 1077 ment employees, food subsidy, drought 50 224 Japan . relief assistance to States and larger funds Netherlands . — — had also to be provided for some key Nepal . — projects and schemes. Though economy Iran ...... —— measures taken this year to keep down, the Rumania 291 1122 deficit have by and large been implement­ Poland , — — ed, these savings would not otf-set the U.K...... additional expenditure. U.S.S.R. 8322 32853 There is no month to month synchroni­ Yugoslavia . 1816 6524 sation in the receipts and expenditures of Other countries 15 63 Government and therefore, month-wise figures would not be a correct indicator To t a l : . 10890 42339 of the likely year-end deficit.

2. Groundnut Kernels, n.e.s. Hotel Management Training Programme 3. Groundnut in shall, H.P.S. 539. SHRI P. G. MAVALANKAR : Czechoslovakia 279 718 Will the Minister of TOURISM AND German Dem. Rep. 392 1224 CIVIL AVIATION be pleased to state : Japan . — __ (a) whether Government propose to Nepal . . . 4 6 start a regular and systematic Hotel U.S.S.R. 59 185 Management Training Programme in the Yugoslavia 388 1313 country; and Poland . — — (b) if so, the main features of the pro­ U.K...... N.A. Neg. posal ? Romania ______Other Countries ___ THE MINISTER OF STATE IN THE MiMSTRY OF TOURISM AND CIVIL AVIATION (DR. SAROJINI MAHISHI): T o ta i ...... 1122 3446 (a) and (b). Management training for hotels is available with the India Tourism 4. Groundnut in shell, n.e.s. Development Corporation, as well as with Notes: n.e.s. denotes “not elsewhere two major hotel chains in the private sector. specified.” I.T.D.C. will expand its training facilities 145 Written Answers PHALCiUNA 3, 1895 ( SAKA) Written Answers 146

in th e Fifth Plan period, which will mainly Statement cater for its own growing need of trained The quantity and value of newsprint personnel. The Department of Tourism imported in 1973 from various countries is also propose to set up an Institute of as follows Tourism to provide professional training in Tourism and Travel Industiy Manage­ Country from where Quan- Value ment for the different segments of the imported tily in in la- travel industry, including hotels. The main metric khs of programme of the Institute will be a two tonnes Rs. year post-graduate course for those who have completed 3/4 years of under-gra­ (i) U.A.S.R. . 38,359 636.36 duate education. The Institute will also (ii) Canada 34,767 417.81 offer an in-service training ptogramme or (iii) Poland 2,745 41.08 F\ccufne Development Programme for the (iv) Bangladesh 14,531 203.40 travel and hotel industry at the senior, middle and junior management levels. (v) Scandinavia 5,363 79.18 (vr) Finland 1,000 15 20 (vii) Czechoslovakia 2,400 32.40 Newsprint Contracted and Imported by S.T.C. T o tal 99,165 1425.43

540 SHRl RAMKANWAR: Will the Minister ot COMMERCE be pleased to pa^ibiiHy of Increase in Trade with South sle;>? : and 1 . . countries;

(O whether the newspiint position has (b) the particulars of items being im­ now e.ts'ed and if not, what other efforts ported from South American countries by are being made b> the Government of India ; India to import moie newsprint to tide over thc existing shortage ? (c) whethei Government have examined possibilities ot increasing trade with South THE DFPUTV MINISTER IN THE American countries; MINISTRY OF COMMERCE (SHRI A. C. GEORGF): (a) Yes, Sir. (d) whether studies on the subject have recently been conducted and surveys under­ (b) A statement is attached. taken by Government and private orga­ nisations ; and (e) Theie is acute world shortage of newsprint on account of abnormal increase (e) if so, the salient features thereof? in production cost and strikes in news- pi inf mills in Canada. Government is THE DEPUTY MINISTER IN THE providing all possible assistance to thc MINISTRY OF COMMERCE (SHRI A. STC in securing maximum quantity of C. GFORGF) : (a) to (e). A statement is newsprint at competitive prices. attached. W Written Answers FEBRUARY 22, 1974 Written Answers 148

Statement f a m t f s i #

(a) Major items of export from India 542. ^ Wfl *n4e«* to South African countries are Jute Manu­ art? fan re* itft m t f f ^ r factures, Shellac and Tea, though non- qnftf f a : traditional items like hand tools, bicycle spare parts, steel wire cables, diesel engines, rails.; textile machinery, chemicals, paper m arm 30 s m f i , 1974 t f etc. are also now being exported to some farmer ^ fcar of these countries. ?rr4 4 M y&ftferr fcvr m ;

( m ^ w, t f iTFf (b) India's imports from South American countries are confined mainly to non- ferrous metals, cotton and wheat. m ^ rr ^ arcfor r r $ ar7 rpft . arft (c) to (e). Yes, Sir. A number of pro­ motional steps such as exchange of dele­ gations including business visits, participa­ (*t) trrarrc t f irfafanrr tion in fairs/exhibitions, conclusions of f ? Agreements etc. have been taken to in­ crease our trade with South American countries. Trade Agreements have already been signed with Peru, Chile, Brazile and TT& r w f t(5T. m v fo Colombia. A wholly Indian Industrial ( w . ^Trr?fNr fanH W **1 sra- ^ Exhibition is also being organised by the Hlf ^ •TFT Indian Council of Trade Fairs and Exhi­ 4 4 bitions at Venezuela (Caracas) shortly to hr- 3F^r wm 4 *rr4**mr project the industrial image of India. JTFf- rgft cf :

(1) 4 W&F*r # rlTcTP- Two delegations sponsored by Projects t f rf!4TT ^ r t jtht Equipment Corporation and Engineering Export Promotion Council also visited some of the Latin'American countries in February-March 1972 and May-June 1973, (2) yfftthV r «Ft respectively to explore the possibilities of t f vr 9rr ^rr sfcpr increasing our exports of non-traditional ^ 3 r^ p fr w f 1 items to these countries. The two dele­ gations have identified several fields in which India has an export potential. Some (3) 4 of the non-traditional products - identified gqfanrer «r? by the two delegations include railway equipment, bicycles, hand tools, bulk qpr: 37% W m t , cTTclK^ t f handling and mining equipment, cotton textiles machinery, cement machinery, arartsr ^rr arft *r?f snrr sugar mill machinery, power distribution f a tf 3TT# I equipment, transport equipment, consul­ tancy services etc. The two delegations (*r) arfV (sr) inF«r^pf $ Wcfcr have also indicated the fields in which qtforiWff fa*im rflgE t f t f t m fa^rr India can assist some of the Latin Ameri­ can countries in setting up of joint ven­ tf f a ^ q ffa 4 w tures. sfa £ttt epvmiT -qwrere ^ 149 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 150

$ *nr fcnTTmffo (7) Granting Financial Assistance as Share Capital and Working Capital to ^ 3T?T: ITT h w ?R ^ R T Marketing Societies Undertaking marketing ^anr ftnr i of rubber;

Production, Manufacture and Marketing of (8) Free Technical Advice to the grow­ Natural Rubber ers on all aspects of rubber cultivation and processing; 543. SHRI C. K. CHANDRAPPAN: Will the Minister of COMMERCE be (9) Setting up of a Pilot Project in pleased to state: Andamans to establish technical feasibility (a) in view of thc global crisis in the of rubber cultivation; production of synthetic rubber what steps Government have taken so far to promote (10) Setting up of a Plantation Corpo­ the production, manufacturing and mar­ ration in Kerala as a Centrally Sponsored keting of natural rubber; Project for planting rubber. (b) whether there is any schcme to pro­ (b) State Trading Corporation of India vide better price to the small growers of and the Government of Kerala (with rubber ; and Central loan assistance) are in the rubber market to ensure that the small grower (c) if so, the steps taken to increase the of rubber gets the minimum notified overall production of rubber ? pi ice. l'HE DEPUTY MINISTER IN THb MINISTRY OF COMMERCE (SHRI A. Development of Dhannashastha Temple at C. GEORGE) : (a) and (c) The following Sabarimala and Gtiruvayur Temple measures aie in operation for promoting (Kerala) the production, manufacturing and mar­ keting of rubber :— 544. SHRI C. K. CHANDRAPPAN: M) Granting subsidy for replanting old Will the Minister of TOURISM AND low yielding rubber trees with high yield­ CIVIL AVIATION be pleased to state: ing planting materials; (a) whether Government have spent a (2) Granting loans for expanding thc large amount of money to develop some existing holdings to economic units and of the very prominent icligious places of their maintenance; worships and temple* as centre of tourist attraction; (3) Distributing high >ielding planting m aterial; (b) if so, the reason why thc temple of Dharmashastha at Sabaiimala in Kerala, where three million pilgrims visited from (4) Distributing fertilisers and fungicides several States of India during January, at concessional rates; 1974 only has not been developed ;

(5) Granting loans to Co-operative So­ (c) whether Government propose to cieties for purchasing and distributing develop Guruvayur temple in Kerala which rubber rollers to members or to grant attracts thousands of people from several loans to members for purchasing rollers States every day throughout thc year; for processing rubber; and

(6) Granting subsidy to Co-operative (d) whether Government have received Societies/Small Growers for construction of any proposal in this regard and if so, its Smoke Houses for processing rubber; salient features and the decision thereon ? 151 Written Answers FEBRUARY 22, 1974 Written Answers 132 THF MINISTER OF STATE TN THH (c) the basis on which the Government MINISTRY OF TOURISM AND CIVIL had taken its decision? AVIATION (DR. SAROJINI MAHISHI): THE MINISTER OF STATE IN THE (a) No, Sir. The development of facilities MINISTRY OF TOURISM AND CIVIL centres is mainly the responsi­ at pilgrim AVIATION (DR. SAROI1N1 MAHISHI): bility of the State Governments. The (a) to (c). The survey repot is on various Central Department of Tourism is, how­ sites are still under evaluation in the Civil ever, constructing Tourist Bungalows at Aviation Department. Rameshwaram and Mantrallaya, and a youth hostel at Puri, but these facilitiet ^ ?**T7T arts* are not primarily mended for pilgrim w r it traffic. 546. artwr? a w b m (b) to (d). The pioposals relating topio- vision of facilities for pilgrims in the form w ft ^ srertf ^ ^ Sfr^ f a * of accommodation, water supply, electri­ city. toilet facilities, mcdical facilitic. (^> ^rr ftrsraf ^ 3rf^ 4 fcnr construction of approach roads etc. at srrnfa; H w*£ Sabarimala, Pampa, Aranmula, Varkala. sr- api £ ; Thirmallam, Alwa>e, Ettnmanooi, Vdikom and Nevjattinkara at an estimated cost of (?§■) ^ S t m w w £ " , Rs. 7.55 crores were icceived from the 3fiV Travancorc Devaswom Board, which is a statutory body. In \iew of the constraint (*T) fan tt ^tht on resources and other priorities, the Cen­ tral Government is not in a position to piovide funds to the Devaswom Board foi thc comprehensive scheme proposed by fa n H i : w them. (*t > vnrfffNr 4 egrcrrft-cri' spi fa $ r tf epf ^TT^T The Government of Kerala have, how­ mrrf $ fay, jfari grr tr ^ ? w ever, included the schemes for provision of tourist facilities at Sabarimala and f e W t , m fc r Guruvayaur temples in the State Plan. % sfrroft TV-perr? arft <$?hc»T w> Jr sptr- m zr $ *rftr*r ^ New Aerodrome near Cochin tffa epT ^ q? arfwcTiT srftnrar ?ptr4 qft 545. SHRI C. k. CHANDRAPPAN : £ I f i r ^ WF SHRI C H. MOHAMMFD W sren? ^ KOYA : £ fa srafq- r w *rrar Will the Ministei of TOURISM AND wti ^ mzftm snwmrr vt ^tt far?t CIVIL AVIATION be pleased to state: * trt *it ^ # irsr 0i¥ Civil Aviation regarding the location of ?rfV # 25 Hrar m new aerodrome near Cochin; srefr n r w f ^ tr& rv & arft ^ I T fa W f *n$ *TRTT f a (b) the names of the places examined by the team and the broad outlines of ?n^ i^ arayqw srf 4 vftm rwtir their findings; and £" ?rf v* £ m w m m i I 153 Written Answers PHALGUNA 3, 1895 (SAKA) Written Amwers 154 THE MINISTER OF FINANCE (SHRI fyw frAnf fawfr # ift YESHWANTRAO CHAVAN): Steps have v n * r^ been taken to curb the consumption of petroleum products to the extent possible. 547. « r* tar: w frnwr ^ Efforts are also being made to boost the counti y’s exports. Government is keeping the situation under constant review and <«fi) ftf^/sT^ Jf for-for suitable measures will be taken as neces­ r i ^ n f r r afStf TOT«f f sary. trr ? w r ^ 5 arft Foreign Exchange for Import of Capro- (30 s w a W 5 ^ snft snrarratf ladum ^rer-*{*rer f^rfa; 6 ^fw <, 1973 qrf t e p f srftrw arfaWt, # w , ^?tw r 4 ? 549. SHRI GAJADHAR MAJHI: Will the Minister of COMMERCE be pleased toff JTsft (%ft W*WTT* V^FT) : (9>) to state: srft rar>. ^ 5 W o r *rm q??r t? r a r 1 1 (a) whether Government have sanctioned ^ [*?»ircnr ngrr ffosnr some foreign exchange in the form of t^T. ^-6195/743 letters of authority to nylon spinners for Steps to conserve Foreign Exchange due to thc import of caprolactum; and increase in Crude Oil Import Bill (b) if so, the particulars thereof? M8. SHRI GAIADHAR MAJHI: Will the Minister of FINANCE be pleased to state thc steps taken by Government to THE DEPUTY MINISTER IN THE MINISTRY OF COMMERCE (SHRI SA. conserve foreign exchange resources in \jew of the heavy increase in Crude Oil C. GEORGE): (a) Yes, Sir. Import Bill ? (b) A statement is attached.

Statement

Name of the Unit Item Against Free Against Rupees Foreign Exchange Exchange Qty. Value Qty. , Value (Metric (Rs. (Metric. (Rs. tonnes) lakhs) tonnes) lakhs) M/s J.K. Synthetics Caprolactum 900 90 00 — M/s J K. Synthetics Nylon Chips/ 280 21 00 —— Nylon Waste M/s. Nirlon Synthetics Caprolactum 700 58 69 50 9.27 M/s. Garwarc Nylon Caprolactum 400 38.00 100 18.54 M/s. Garware Nylon Nylon Chips 50 3.72 — M/s. Century Enka Caprolactum 100 6 65 50 9.27 M/s. Modipon Caprolactum 664 74.84 — M/s. Modipon Nylon Chips 33 3.46 — M/s. Shree Synthetics Caprolactum 185 22.37 — — M/s. Gujrat Polymides Caprolactum 400 46 50 50 9.27

T o t a l 3712.00 365.23 250 46.35

62 LSS/73—6. 155 Written Answers FEBRUARY 22, 1974 Written Answers 156

Effect if shortage of Shipping Span and (c) if so, whethu thc State Government Congestion at Porta on oor Gxpwti has been assured of support by bankets in implementing the Stale's plan for develop­ 550. SHRI GAJADHAR MAJHI: Will ment of agriculture by constructing 60,000 Minister of COMMERCE be pleased shallow tubewells over the next thtee to state: vears; and (a) whether shortage of shipping space (d) if so, the broad outlines thcieut? and congestion at ports is seriously ham­ pering export of our country; THE MINISTER OT* I INANCl (SHRI (b) whether there was any delay ic ex­ YESHWANTRAO C H \V \N ): a) On ecution of orders because of lack of ship­ the 24th Januaiy, 1074 the Orissa Stile ping space duiing 1972-73; and Government had convened a meeting of the State Level Co-oi dination Coiunuliee (c) if so, the broad outlines thereof and at which representatives ficm contractual the reaction of Government theieto ? banks were also picsont THE DEPUTY MINISTER IN 1H£ MINISTRY OF COMMERCE (5HRI (b) to (d) Information to thc extent A. C. GEORGE) : fa) It is tiue that at possible is being collected and will be laid times exporters are experiencing difficulty on the table of the House. in obtaining timely shipping space due to global shortage of shipping and port con­ Implementation of agreement reached be- gestion. tween Accountant General of Kerala and N.G.Os. Association (b) No case of delay in execution of export orders during 1972-73 only because 552. SHRI M. K. kRIbllNAN : of lack of shipping space had been brought SHRI A. K. GOPALAN : to the notice of Government Will the Minister of FIN VNCE be pleased to state . (c) Government is fully sei/cd of the situation and measuies are afoot to im­ (a) whether GovernMent sue itwaie that prove the ship supnly position. Action the agreement reachc I bi (ween thc Ac­ has also been initiated to bring ; bout better countant Genet al of u:ra!j and Non- rapport between shippers and shipowners Gazetted OfTLets' Assuuatu n is not fully with the object of ensuring full utilisation implemented so far; and of available shipping space. (b) if so, the reasons therefor and when Discussion held by Team of Officers of it is likely to be implemented? Orissa Government with Representative* of Commercial Banks THE MINISTER OF STATE IN THE MINISTRY OF HNANCF (SHRI K. R. 551. SHRI GA1 \DHAR MAJHI: Will GANESH) : (a) and (b). All the terms the Minister of FINANCE be pleased to of the understanding reached between the state : Deputy Accountant General (Administra­ tion) of the Office of the \ccountant (a) whether any team of officers of the General, Kerala and the Vice-President of Orissa Government has recently held dis­ the N.G.Os. Awocitttion of that Office cussions with the representatives of Com­ on 24th February, 1973 hare been imple­ mercial banks; mented, except one. In accordance with that item, the Accountant General was to (b) if so ,, whether State Government’s make favourable recommendation to the plan covering 13 Districts has been trim­ Comptroller and Auditor General and the med down from Rs. 150 crores to 35 crores; Government of India for relaxation of the 157 Written Answers PHALGUNA .1, 1895 (SAKA) Written Atvtwrs 158 lute regarding payment of salary for the (b) Air France Jumbo aircraft was in­ period of pen-down strike fiom 7-1-73 to volved in tyre burst incident at Palam 19-2-73, provided the arrears of work were while landing on run-way 28. This incident cleared by the staff according to the pro­ occurrcd on 25th December 1973 (and gramme agreed to by the Association. not December 27). Since the Accountant General’s making the (c) The run-way was visited by the favourable recommendation was contingent Civil Aviation officers and tbe Director, upon the clearance of areuis as agiced to International Airports Authority. There and since that condition had not been satis­ were indications that during the landing, fied, the Accountant General could not the under-carriage of Air France aircraft make the recommendation. struck the Lufthansa wreckage. Burst of Tyres of Air India Jumbo Jet at (d) The debris of the Lufthansa aiiciaft Palain Airport on 23-12-1973 at the beginning of runway 28 did not con­ 551. SHRI PUOO MODY: Will the stitute an ‘obstnictiim’ as defined inter­ Minister of TOURISM \N P CIV) I AVIA­ nationally for aircraft operations. However, TION be pleased to stale : as a matter of caution, ihe fact relating to the existence of this wreckage to a re (.i) whethei two tvie> vf an Air India duced height of 11 feet had been duly Jumbo let burst ^hile landing on run-way notified by Director General of Civil Avia­ 28 at Palam Viport on the 23rd Dcccm- tion through a notice to Airmen issued on ber, 1973; 24th December 1973. the wreckage of the Lufthansa airetaft was finally removed (b) whether an Air Fiance Ji.mbo Jet from its site on 2nd January, 1974. was in c h e d m a similai incident when its I Vies buist while land ins on uin way 28 This incident was due to an excessively at Palam Airport on the 27th December, low approach by the pilot of the Air : (>7i, France aircraft. (o') whether investigations have been made into these incidents; and Alleged Harassment to Passengers of Crash- ed Lufthansa Boeing (d) if so, the outcome thereof n 554. SHRI PILOO MODY : Will the Minister of TOURISM AND CIVIL AVIA- T1IF MINISTI R OF STVTF IN THE 11 ON be pleased to state : MINISTRY OF TOURISM AND CIVIL AVIATION (DR. SAROUNI MAHISH1): (a) whether some passengers ol Lufthan­ (a) Air India Boeing 747 VT CBN was sa Boeing which crashed at Palam on the operating a scheduled service from Keifut 20th December, 1973, wete put on a to Delhi on 23 December, 1973. On land­ London bound Kuwait Airways plane; ing at Delhi, two tyres were found burst, with the complete tread missing. Investiga­ (b) whether the plane was directed by tion into the incident revealed that the Kuwait to return to Delhi and drop the inboard wheel tyre tread separated from passengers bound for London and to take the main body of the tyre on take o(f at only those who had Kuwait as their desti* Beirut prior to landing at Delhi. On land­ nation; ing at Delhi, the other outboaid tyre had burst. (c) whether a number of passengers took exception to this behaviour of the The basic cause of the incident is due Kuwait Airways; and to tread failure on the inboard wheel tyre which has been sent to the retreaders for (d) the reaction of Government of detailed examination. India in this regard ? 15s> Written Answers FEBRUARY 22, 1974 Written Answers 160 THE MINISTER OF STATE IN 1HE sectors. Adequate steps weie, however, MINISTRY OF TOURISM AND CIVIL taken by all banks to ensure that flow of AVIATION (DR. SAROJINI MAHISHI) : funds to priontv sector and for productive (a) After making necessary enquiries from purposes was not directed Further, in both Kuwait Airways and Lufthansa, it terms of Reserve Bank, of India’s instdic­ has been confirmed by the Director General tions banks are also endeavouring to meet of Civil Aviation that no passenger of thc all genuine credit needs toi production and Lufthansa Boeing which crashed at Palam movement of goods, thiouji a faster turn­ on 20th December 1973, was carried by over of limits alieady sanctioned. More­ Kuwait Airways. over, in order to ensure adequate flow of funds for the export bcclot, Reserve Bank (b) to (d) Do not arise. has decided to exempt this scctoi from the quantitates e ceiling on credit expansion Acceptance of rah proposals for advances during the current busy season and also to by Nationalised Banks provide somewhat increased iclinanct 555, SHRI PILOO MODY : Will the facilities in this sector Small Scale indus­ Minister of FINANCE be pleased to state trial units covered nndei thc cicdit guaian- tee scheme have also been cvempte 1 from (a) whether a number of nationalised thc icquircments ot increased m it pins banks, including some commercial banks, stipulated earlier The availability of the have virtually stopped accepting fresh pro­ genuine credit requirements of industiy fcnd posals for advances from any sector, of thc small borroweis m the priority sec­ tors, including exports i*« thus not liktlv (b) whether it also includes the priority to be affected by the cicdit restrictions sector units; (c) the reasons lor thc nationalised Mobilisation of resources of Indian settlers banks and commercial banks Indulging in Abroad such methods of credit squeeze; SHRI PILOO MODY Will the (d) the extent to which industry is suffer­ Minister of 1 INANCl be please J to state. ing consequently, and (a) whether any natiati\<: has been (e) the reaction of Government m this taken by the Government of India to mobi regard ? lise resources of Indian settlers abroad to India’s benefit, THE MINISTER OF FINANCI (SHRI (b) if so, the nature of initiatives, rnd YESHWANTRAO CHAVAN) : (a) to (e). In the context of the significant increase in (c) whether as a result of these initia­ money supply and pressure on prices, the tives Indian settlei3 have comc forward to Reserve Bank of India's current busy invest money for developmental activities season credit policy is oriented towards in India ? tightening ciedit control measures. These include, inter alia, a ceiling on scheduled THE MINISTFR OF FINANCE (SHRI commercial banks, non-food credit expan­ YESHWANTRAO CHAVAN) * (a) to sion duirng the busy seas>n, limiting the (c). The problems relating to mobilisa­ scheduled commencal banks* borrowing tion of resources of Indian settlers abroad from Reserve Bank, and increase in statu­ to meet the developmental requirements of tory liquidity ratio requirements. The im­ the country are constantly under the review mediate compliance v\ tih these measures of the Government Currently operations necessitated placing of restrictions on of non-resident accounts have been sim­ their advances by some banks even as they plified Further, persona may send amounts look stock of the situation and suitably to non-resident (external) accounts to be regulated the How of credit to the various opened in their own names. These accounts 161 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 162 are free from all restrictions and are also arcfar sW ^>r jttcst qrr*f repatriable. Interest earned on external # qrfl 9foRTg*rr ^ j accounts is exempt from income tax. Re- sponse to this facility has been encourag- osr) t o Twrn- fe f ^ Wkr^rcrantf ing. Attention is nlso invited to the replies ^ ^ ^ w r to Unstarred Questions No. 426 and 573 being answeied separately. Further, as in- Unstarred dicated in reply to Question (*t> t o xjrz^w ?rw T7 No. 426 the limit on import of machinery has been mised from Rr. 5 liiHv- to Rs. 25 ^mfrw M ^ ^ war ^ , lakhs. orf? («r) ^ f f f rrf ^rrspH ^ f r r ^ s ^ j f *p?T W m ^rf ^7 sfrr^ ^ ?5n? t o ^ ? 557. st. fw ft'irrtm trfehr s iN m v 3^ rn«r («fr 4. m r f a : »toNd : (^) aift w ^ 1973 srefrr ^TT fa w ^ ^cTR 3# ftTT f a 4 ftW H t ^ ^ 5=W?r

4 arrow ^ ^r?r 4 s n r A ^ ^pt ^i* ul H 1970-71 3$ r(^Frr V s 1973- ? W w «it, W 7 ^ 74 4 tttft jprr ^ farpft p m a H W n r t o fro w i nrsmr 3rf? ^r?rf ^ farnf ^ nferif x f ^ srarsf 4 3r?f t o »Tf8r fa "rT v r ft (*fr *TW * 1TR1 ^rtfFT) : ?rspf ^ tt 3mr-«rrEr ^ ^riMr ^ ^ n i f ^ r faM ^ #T ^ 1973 4 fcrtf ^ i «rf t W w «it fa s i? ^ n r i f 376,02 ^nrtf rrctf ^ f W r , attq ^ ih^rir ^ « w arm r^ ^ p t ^ *^t 8 qrrrtf, 1974 <*rt t o f t ? 356.18 F^nfepr epr? I r i f e , ^ 7? ^ FTRvTir 77T^ TT*ft I 43.58 77 1$ ^ q /f v p m w ^ _ A <\ 1 M -^ 1* A . _■ K_ __ Ri ^ H ?fnr *mfan?r ^ ®rr^ ^TFrr «fr, 'Tfw q t r *=r f t «n^%rrr ^rwr ttm 4 w fo V1 1973-74 'STT -BT^ I snfr ^ fafoft ^ ^ r qr^( ^r, 1973 ^ « r I f 116.13 ^nh| 9# er*ft H T lf $ 1 sft, ^FT 5FT ^ 3Tft J^TrT: aRRfsfc *p?r faftr 3r^r?w (cr) ^ p t t ^"5 cn 1 ^ vnrw m 1 i w vtfvr ^ aw fa m mrt m r n ra n r t o torcrf ** a n ftr 559. «r. W ^ TfWm qf^r J TO t^nw bMI 4 m i 'l l #s^ ^ ^ fqr fa :

558. i t . w N ’ : h m c«F) to sfhm (mar xr^r) ^ W k ^ vnnsrFi fa^rn farr sir £ ;

(*) to nrarar to fcrart ^ c m t o i f f «n trv ^ w iw fTs vmsrRT w rt

(»o »t, *rwwfr» <6Wrt ihnw ** wwhft (A : c w t*»nr 3 « n f ’ tf«rr wte; fl. n ., u , , ..... -, ^frR- ttfaruilW ^ tr f # r f 1 ^ ftnrfcr W )^rTT^r?«Rr«nr«^? ^ ^ f

hm wmnr tm (*fr 4. m. « R tf *. ? (? ) fasnsror •fNw yn^hr ^r?* 1970-71 5.29 i fas*s 1971-72 6.54 itRPRr?, 1972 *?* sfhR^r q> arofrr v ta st! 1972-73 5.40 * 1* tf anw faqr w C{H ^STCJ ^ *. «IT I 1. vsftfir fsrzrh^t 4 ^ a r r m f^ cm it, ft 1 »n?r ^r ^ ^ rtt , 2. amnr tt spptrt (»T) SPTV*T 1974 tPB t m ST^TFRT %ft ^1 5TPt *RT3RT t f i m * ^ ?nft anrnr w i t xRr^ ^ u'/h^ur ^ ?rfV T7 3 f W r T i% W #2fTT Zfivt 4 waaiHfo wr fcm srr^, fa W ~ 3 tf w r o ^Nr ^ ttt ^fa- ?hr? 6 5PT ir$tf ^ 1 t t ^ r *m 4 fa ^ fr qfr m a r ^ anwr ^ ^rwvyrr ^ n rr ; («r) an* qfonN-tt _1 4 . ___ P . f ft. _t «V - — art*? fa^W

Incre ased attention is also paid to com­ (c) the reaction of Government there* bating tax avoidance and surreptitious re­ to? moval of exciseable goods. THE DEPUTY MINISTER IN THE It is also pioposed to bring before Par­ MINISTRY OF COMMERCE (SHRI A. liament a comprehensive Bill codifying, C. GEORGE) : (a) to (c). The export stream-lining and simplifying the Central of “Writing and printing paper, all sorts” Excise Law and Procedures keeping in has only been banned with effect from view the need to inspire confidence in the 30th November, 1973. This is likely to manufacturers who are liable to pay affect the foreign exchange earnings only cxcise duties and at the same time making marginally. stringent provisions for coubating surrepti­ tious removal of exciseable goods without to w n ' . payment of duty.

III. INCOME TAX DF.o IRTMFWT 585. arenft v x f : forra* The levy of Income-lax, Wealth Tax — * — fS ...— - and Fstate Duty at progressive rates, put­ ^cTTn 3>T «♦> Oi : ting of limits on deductible salaries and (30 9RJT 4 1974 perquisites to Directives and senior Execu­ tives, tightening the provisions regarding sfscrw 4 ^ 4 w r a m o t Trusts, increased attention to combating srT# a rfW sr w n m srarasr tax evasion and avoidance through legisla­ ^ST # 4 } tive and administrative measures—giving incentives for savings and life insurance, (30 *RTT q m ? fTT STcT'TT ^ etc., as also for industrialisation in requir­ ed directions are some of the relevant f a w s f w r z k 4 m n r vr f a r o m features. Mass communication programmes , * for contacting the smaller tax payers and inspiring confidence in them and accept­ (*T) ^ , trf STRfTT IQ& r ing bulk of the returns in the lower in­ wm ? come cases are also designed to serve the same objective. h m (*& v s u r ) : The Taxation Laws (Amendment) Bill 1973, based on the report of the Wanchoo S W f a asft arft Committee for strengthening the law was * 1 ^ , ^ W ft WTTWRT introduced in the Parliament some time gfaqfrrar arfV m e t h mfa d error back and is now before the Select Com­ mittee. t e r air? f* 1 (®r acft (*n. m r Ban on Export Paper w^Tcr ^ r 564. SHRI NARENDRA SINGH: t m m f atf *n?^t trc f r a ? Will the Minister of COMMERCE be r^T ifr 1 f o w l ^ wt «TV9r pleased to state: S W oiaft qnr- (a) whether the decision taken by Gov­ snrar aifa wfaitfw f 3rt arnr ^ spnaw ernment to ban the export of paper in or­ s i # t o m w m 1 *£?*> ft _At_ A 15 ft- t» ...... A der to meet the shortage at home will have l w w *rr * r w r iflpn i r adverse affect on foreign exchange earnings; (b) if so, the total loss involved; and ^ w g ih 'M> TRfhr s i # f k r i 171 Written Animvn FEBRUARY 22, 1*74 Written Answers 172

<(hrw 4 # W W lW W # * *>. «*• arrived or • » « p« w <»«««« «*i (c) whether there is any proposal to in- 566. m f : the import* of newsprint from Bamdadesh? WWn VWff *3HTt : THE DEPUTY MINISTER IN THE *r»rr v ftrsr mh k i w ? MINISTRY OF COMMERCE (SHRI A. C Gfc.ORG F) . (a) Yes, Sir wwfr ^ ^ ; (b) 3543 melrii. tonnes of newsprint W m m * 4 w r sift iJfagifW have already been supplied by the Bangla­ mw mfcr f- fcwt &ffo w*m qnrft desh Paper and Board Corporation. The vwft^r ^srt 4 f f tR *} balance quantity will be supplied by the *nr fW W ^rt wft f ? arft end of June, 1974. (c) There is possibility of supply of a osr) 'jw srcfar TPifT^rPT ^ far* further quantity of 7000 tonnes of news wiraf tr? *refgq>l ^ stenerf arft print from Bangladesh in 1974 $r fcroorfar *rrerrc ^tt ^ 9 Effect of Fuel price bike on Tourist traffic mWWT m «IPT? TVhRW vitopv i t to India t o t *r«ft 68 SHRI E V VIKHE PAUL : ^ SHRI C K JAhJHt R SHARIFF tpfersr weh»'*r ^ HTcr^, z m # ? m i W k & ^rurart ^ a r o Will the Minister of TOURISM AND 4 fay vfom mfv ^ r&m CIVIL AVIATION be pleased to state: f 1 (a) whether fuel price hike is likely to cfleet adversely the tourist traffic to India* («■) MTRT T ^ T SVPT ^ and qTsnft # s r t *f" ^ 100 W f^/200 ^T®*nr'3TT TTcf ^ 3 -^ rr *rtesr (b) what steps Government have taken ci piopose to take to offset the effect of ^ hrrj 135 rar ^ «bt ottst^t *rfwr- fuel price use on the volume of tourist ^renf f 1 ^ ser^nfm wro* ^ traffic? V7 r^T ^3Rf ^ 1974-75 $ ^fF T flTTH m 5Tpf ^ 9TWT f I TH1 MTNISTFR OF STATE IN THE MINISTRY OF TOURISM AND OVIL vcrv# if- q^; twr sJWfo *r AVIATION (DR SAROHNI MAHI­ ^ w nd w f W w ssrcf H SHI) (a) Tourist figuies for 1973 in­ dicate that so far the rise in fuel prices «rhRT ^ ^ trt o t farzir mrr «rr has not affected tourist traffic to India. *ft ^ fascir snwir 1 4,09,895 tourists came to India during 1973 against the target of 4 lakhs 45,295 Import of Newsprint from Bangladesh tourists came in December 1973 against 40 563 in December 1972 showing An in­ 567. SHRI SAMAR MUKHERJEE :crease of 11.7 per cent However, H re­ Will the Minister of COMMERCF be mains to be seen what affect the increase pleased to State* m international air fares will have on (a) whether Government of Bangladesh tourism to this country and much will had agreed to supply 10,000 tonnes of depend on the level at which worid oil newsprint to India; prices settle during 1974. 173 Written Answers PHALGUNA 3, 1895 {SAKA) Written Answers M

Submission of Memorandum by Federation the export sector. The Reserve Bank has of Indian Chambers of Commerce and been operating its credit policy flexibly Industry regarding Adverse effect of without impairing in any way the credit Credit Squeeze on Industry needs of genuine productive sectors.

572. SHRI D. D. DESAI : Will thePermission to Indians residing abroad for Minister of FINANCE be pleased to holding accounts la Indian Banks in Foreign state: Exchange (a) whether the Federation of Indian Chambers of Commerce and Industry has 573. SHRI D. D. DESAI : Will the submitted a memoiandum to Government Minister of FINANCE be pleased to about the advene effect of the recent cre­ state: dit squeeze on industry; and (a) whether Government are consider­ (b) if so, the broad features thereof ing a lequest by Indians residing abroad <.md action taken by Government to avert to allow them to hold accounts in Indian any danger to industrial progress? Banks in foreign exchange; and

IHk MINISTER OF FINANCE (b) if so, the salient features thereof? (SHRI YFSHW \NTRAO CHAVAN) : (a) Yes, Sir. THF MINISTFR OF FINANCE (SHRI YISHWANTRAO CHAVAN) : (b) While broadly agreeing with the (a) and (b) The matter is under con­ restrictive credit policy of the Reserve sideration. Bank is so far as it is intended to curb trading activities of a speculative nature, I oan advanced bj Nationalised Banks in the Federation of Indian Chambers of Gujarat to unemployed Engineering to start Commerce and Industry has contended that, this policy is unintentionally hurting their Business manufacturing and export operations. It has also contended that in wew of the 574. SHRI ARV1ND M PATFL* price rise, the credit ceilings put by tbe SHRI VEKARI \: Reserve Bank are hurting a number of industries like textiles, jute, sugar and Will the Minihtei of FINANCr be engineering industries. pleased to state:

In view of the prevailing inflationary (a) the number of unemployed engi­ pressures in the economy which called for neers who were advanced loans by the maximum possible monetaiy ristiaint the Nationalised Banks in Gujaiat to start their Reserve Bank announced certain credit factories or business during the last three ceilings and increase in interest rates for years, and the 1973-74 busy season after a careful (b) the amount of loan advanced to examination of the genuine needs of the them, District-wise? productive sectors of the economy. In order to ensure that credit needs of the THE MINISTER OF FINANCE (SHRI export sector and small scale industncs YESHWANTRAO CHAVAN) : (a) and were met adequately, the Reserve (b). Public Sector Banks do not main­ Bank subsequently relaxed its restric­ tain separate statistics regarding the tions in respect of credit to these sectors. number of unemployed engineers who are Thus, bank credit to the export sector advanced loans to start factories/business. was kept out of the ceiling on credit ex­ The advances to such persons would gene­ pansion stipulated earlier and banks were rally find a place in the priority sector also promised increased refinancing facili­ categories of “small scale industry" and ties on the basis of their performance in “professional and self-employed". Avail­ 177 Written Answers PHALGUNA 3, 1895 {SAKA) Written Answers 178 able information in regard to public sector (w ) ®RTr 3??r q&rft ^ h ippp 4 bank’s advances to these two categories in nrm w r % anrvr *r rsrar ir, ^rrr *rr§ Gujarat as at the end of June, 73 is set out below: ft, st fir ^ 3 iw w rNr# ^ f W TO ^ J As on 30-6-1973 (it) ^ tnftratf t o «mfr* Category No. of Amount atf t o -rppr I?*1, t o q tf' borrowal outstan- accounts ding Rs. tfr arft ^t'wwt £ f sfft in crorcs on vRwrf^qrqrTO Small Scale Industries 13676 67.70 ^ onV # ap^f ^ ? (units) Professional & self- employed persons 14240 1.70 fVRT ihlTFPV # rnzt («ft 4. m .*T®hr) : m tf on. ttf * *rr to Dishonouring of contract by East European ^ptftcth ^ «myft i Countries for supply of Fertilizers to India a n w ? $ w r w r *$ 575. SHRI ARVIND M. PATEL : «IT SHRI D. P. JADEJA :

Will the Minister of COMMERCE be 577. VRf : TO faNT pleased to state: ^ 3TPT5R qfaqMftwf fOTT tf? q? OTf ^ ^ ^ 14 faflWR, 1973 (a) whether some East European coun- ti ies have dishnouied the conti act of sup­ ^ ar^nrff^Rr *re*rr 4845 ^ 3"c?rc plying fertilizers to India; 5ETnpV *T? TO# tf? f a : (b) if so, which are these countries; and (^)TO O T?7T#q'^ft^lf‘, art*? (c) the reasons for dishonouring the con­ ti acts? (so cf, t f t o < r f m ? THE DEPUTY MINISTER IN THE MINISTRY OF COMMERCE (SHRI f a t r t f t t h t (%ft 4 . m A. C. GEORGE) : (a) to (c). Some of : (s?) 3rn osr). srnr these countries have approached us for tf, qr^; aiTW? arfyiN^r tf^ «rm 332(5) renegotiating the outstanding contracts for 4 <3mnfcr ?riV ^ fqr«rf?or ? r o supply of fertilizers on account of abnormal increase in ocean freight rates and prices t o f 3jf? faw r # 4,49,022 7i. ^ ^ of raw materials. tf} w $ , sriV 4 ftiW 3Ttpf ^dWr? ^ tot ^ 1 knotty* •mfwhr tf**renftf orefa tptrrr <8isnpr vr *r fawr sirt Plan to Import Raw Material for export purposes 570. VPQ w m v : TO 578. SHRI R. S. PANDEY : Will the "L&, - -_ - A - ■ _ _ ♦» I fV -- Minister of COMMERCE be pleased to state; 05) f a 'wfor* snprhr tf'efeYf, (a) whether Government have been urged to chalk-out a long term plan for the im­ srw ^arf tfi iWft port of raw material for goods to be ex> *BT H ?T9H fa?TT 1? ; ported; and 179 Written Answers FEBRUARY 22, 1974 Written Answers 180 (b) if so, the decision of Government (a) the total amount of profits earned by thereon? the Cotton Textile Industry during 1971-72 and 1972-73 and THB DEPUTY MINISTER IN THE MINISTRY O t COMMFRCE (SHRI (b) what steps Government propose to A. C. GEORGF) : (a) Yes, Sir. take to reduce the price of Cotton Textiles?

(b) All possible steps are being taken to THE DFPUTY MINISTIR IN THE meet the requiiements on a Ions tenn MINISTRY OF COMMERCE (SHRi basis. A C. GEORGE) : (a) A study of balance sheets of 228 cotton textile mill companies in the private sector for the ot Enquiry into the destruction of Bales year 1972-73 ieveah their gross piofit Jute in a Godown at Kidderpore Dock (after depreciation but before interest, development rebate and taxation) as Rs. 579. SHRl R. N. BARMAN: Will the 8 664,73 lakhs in 1972-73 as compared to Mimstci of COMMERCE be pleased to Rs. 5,171.33 lakhs in 1971-72. state: (b) There is a scheme of Conti oiled Cloth (a) whelher Government hive instituted covering 400 million metres of cloth in the an inquiry into the destruction of 10.000 five categoiies of Dhoties, Sarees, Long bales of jute in a godown at IKidderpore cloth, Drill and shirting. The prices were Dock due to tire; fived m May 1968 and have not been re­ vised. In addition a Voluntaty Price Res­ (b) if so, the findings thereof, traint Scheme was brought into effect from 20 7-73 accoiding to which all composite (c) whether this jute was purchiscd from cotton textile mills agreed to maintain ex- some foreign countiy; and mill prices of wearable varieties of non- (d) if so, thc names of the umntiv and contioiled cloth upto higher medium cate­ the puipo^e of purchasing the jute'’ gory ct November, 1972 levels plus 10 per cent. The distribution margin of non­ THF DEPUTY M1MSTFR IN 1 ML controlled cloth under the scheme was MINISTRY OF COMMFRU (SHRI limited to 20 per cent over the ex-mill A. C. G hO R U l): (a) to (d). 10.000 prices inclusive of excise duty. The scheme bales of iaw jute aie repjrtol to ha\c stands extended upto 28th February, 1974. been burnt in one of the soiowns in the Calcutta port. The godown was hired Central assistance lor mating facilities for by the National Trading Co., a Nepal Gov­ Foreign Tourists ernment undertaking. The jute is reported to be of Nepalese origin belonging to the 581. SHRI VEKARIA: Nepal Government undertaking meant for exports. The iaw jute does not appear SHRI D. P. JADEJA: to have been purchased by any Indian con­ cern, Thc Port Commissioner is under­ Will the Minister of TOURISM AND stood to have ordered an enquiry which CIVIL AVIATION be pleased to state: is in progress. (a) The total amount of Central assis­ Profits earned by Cotton Textile Industry tance provided for creating facilities for during 1971-73 foreign tourists to states, state-wise during thc years 1971-72, 1972-73 and 1973-74. 580. SHRI R. N. BARMAN: Will the Minister of COMMERCE be pleased to (b) the total amount spent by these state: States during that period? 181 Written Answers PHALGUNA 3, 1895 (SAKa ) Written Answers 182 THE MINISTER OF STATE IN THE (Rs. in lakhs) MINISTRY OF TOURISM AND CIVJL AVIATION (DR. SAROJINI MAHISHI): 1969-70 to 1971-72 (Actuals) 1098.69 'a ) Development of facilities for foreign 1972-73 (Actuals) . 719.49 tourists is mainly the responsibility of the Central Government. Most such schemes 1973-74 (Anticipated) 745.00 are included in the Central Plan. No financial assistance is given to State Gov­ ernments for these schemes, but they are T o t a l : 2563.18 executed with the cooperation of State Governments who are expected to provide (b) A statement showing the expenditure power and water supplies, road links and incurred by State Governments on tourism so on. The expenditure incurred by the schemes during 1971-72, 1972-73 and Central Government during the last five years is as follows : 1973-74 is appended. Statement

Name of thc States and Union Territories 1971-72 1972-73 1973-74 Actual Actual anticipa­ hxpnc*. JLxpnd. ted 1. Andhra Pradesh...... 4 61 — — 2. Assam ..... 4.08 5 00 15.88 3. ttihar ..... 3.90 3.00 5.00 4. G u j r a t ...... 13.00 20.08 21.00 5. Haryana ..... 80 57 44.00 45.00 6. Himachal Pradesh .... 14.69 40.00 25.00 7. Jammu & Kashmir .... 113.53 69.75 70.00 8. K e r a l a ...... 14.20 10.30 * 9. Madhya Pradesh .... 11 37 24.30 26.94 10. M aharashtra ...... 26.49 29.11 45.00 11. M y s o r e ...... 3.90 12.00 12.00 J2. M a n ip u r...... 1.00 2.00 4.00 13. M e g h a l a y a ...... 1.25 6.25 10.00 14. N agaland...... 3.14 5.00 8.00 15. O r i s s a ...... 12.44 7.00 9.65 16. P u n j a b ...... 5.07 14.00 18-97 17. Rajasthan...... 25.73 15.50 12.00 18. Tamil N a d u ...... 10.00 12.00 + 19. T r i p u r a ...... 0.24 0.50 2.88 20. Uttar Pradesh (excluding Uttar Khand) 7.00 16.00 21. West B e n g a l ...... 10.00 13.00 13.00 «• 366.19 348.79 844.32 22. Andaman & Nicobar Islands . , 1.02 1.00 0.50 — — — * 24. Goa, Daman & Diu .... • 8.66 7.90 8.00 25. P o n d ic h e r r y ...... 2.94 3.52 6.74 12.62 12.42 15.24 *Figure3 are awaited from thc States concerned. 183 Written Answers FEBRUARY 22, 1974 Written Answeri 184 Foreign exchange required as a result of (b) whether any adjustments have been Increase fet prices of crude oil made or are being made to offset the differences in value of the sterling and 582. SHRl S. C. SAMANTA: Will the other foreign currencies including the dollar Minister of FINANCE be pleased to state: in so far as rupee is concerned; and (a) how much more foreign exchange (c) what arc the actual effects, in terms shall be needed for importing all the oil of loss or gain in rupee value of the fluc­ India needs in the year 1974-75 as a result tuations in the prices or value of foreign of increase in prices of crude oil by oil currencies in world markets? producing countries; THE MINISTFR OF FINANCE (SHRI (b) how the gap is contemplated to be YESHWANTRAO CHAVAN) : (a) The filled up; and exchange rate of the Indian rupee is de­ signated in terras of pound sterling. (c) whether any success is likely to be Variations in the exchange rate of pound achieved in persuading the oil producing sterling with other currencies lead to simi­ countries to buy more and more Indian lar variations in the exchange rate of rupee goods partly to compensate the exchange wVa-vfe other currencies. The recent dec­ deficit being affected by purchase of oil? line in the value of the pound sterling may well have improved the competitive posi­ THE MINISTER OF FINANCT (SHRI tion of our exports. There do not see YESHWANTRAO CHAVAN) : (a) No to have been any other significant effects estimate of additional foreign exchange on the economy. needs in 1973-74, over and above the normal requirements, arising from es­ (b) No, Sir. calation of international crude oil prices, is possible at this stage. Additional foreign (c) The rupee has depreciated significantly exchange needs would depend on the levels against the doller, but has improved against at which prices stabilize over a period and DM and has remained more or less steady the extent to which economics can be made in respect of yen. in consumption. Import of Newsprint by S.T.C. d urine (b) and (c). Measures to restrict the use 1974 of POL to meet the bare essential require­ ments have been initiated. Export drive 584. SHRI C. JANARDtf ANAN: Will has been intensified and special emphasis the Minister of COMMERCE be pleased is being laid on the need to increase our to slate: exports particularly to West Asian countries. 00 the steps taken by the State Trading Efforts are also being made to obtain larger Corporat on for timely import of newsprint assistance from foreign governments and during 1974; and institutions by way of debt relief and for (b) the broad outlines of the contracts imports of maintenance requirements entered into with various countries for supply of newsprint? Impact of fall in value of sterling on Indian rupee THE DEPUTY MINISTER IN THE 583. SHRI S. C. SAMANTA: MINISTRY OF COMMERCE (SHRI A. C. GEORGE): (a) As** a result SHRI VAYALAR RAVI: of firm contracting during ’74 as well as Will the Minister of FINANCE be contracts entered into earlier, a supply of pleased to state: 1,46,000 tons of newsprint is expected dur­ ing the year. Besides there is an option (a) the effects on Indian currency and for purchase of further 30.000 tons oi economy due to the fall in the value of newsprint from Canada subject to confir­ the pound sterling recently; mation by the suppliers. 183 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 186 i (b) Th e following quantities of newsprint would be available for import from various countries during 1974:— Name o f the suppliers Quantit 1. Canada New contracts 38,000 MjT Old contracts 28,860 " 2. USSR 45,000 " 3. Bangladesh 12.500 ” 4. Scannews (Old contracts) 11,000 " 5. F.P.M. (1973-74 contracts) 5,000 ” 6. Czechoslovakia—1973 contracts 5.700 " Total 1.46.060 m ;t

Raid by Income Tax Department on film THE DEPUTY MINISTER IN THE laboratories in Bombay MINISTRY OF COMMERCE. (SHRl A. C. GEORGE) : fa) According to the 585. SHRl C. JANARDHANAN: Will Draft Fifth Five Year Plan 1974-79 the fhe Minister of FINANCE be pleased to expoits are envisaged to grow from Rs. state: 2000 crores in 1973-74 to Rs. 2890 crores in 1978-79 representing a compound growth (a) whethei the Income Tax Depart­ rate of 7.6 percent per annum. ment had recently carried out raids on certain film laboratories in Bombay; (b) whether during these raids documents (b) The major items which are to make revealing concealment of crores of rupees substantial contribution to export earnings were seized; and uie engineering goods, iron ore, handicrafts, (incl. pearls, precious stones and jewellery), (c) if so, the gist thereof? cotton textiles, steel, fish and fish prepara­ tions, leather and leather products. These seven items account for about 2/3 of the THE MINISTER OF STATE IN THE total increase anticipated. MINISTRY OF FINANCE (SHRl K. R. CiANliSH) (a) to (c). The information is being collected and will be laid on the Items under Banned List for Exports Table of the House as early as possible. 587. SHRl P. GANGADEB: Will the Export Growth hi Fifth Five Year Plan Minister of COMMERCE be pleased to state: 586. SHRl C. JANARDHANAN: Will the Minuter of COMMERCE be pleased (a) whether the list of items under the to state: banned list for exports is lengthening; (a) the estimated amount of export growth envisaged in the Fifth Five Year (b) if so, why more items are being Plan; and constantly added to it; and (b) what are the main items accounted (c) the steps taken to safeguard the for increasing the export earnings? equilibrium of external economy? 62 ISS/73-7 I«7 Written Amwers FEBRUARY 22, 1974 Wntirn Ambers 188

THE DEPUTY MINISTER IN THE Im n m c in fiqm t daring 1973-74 as no* MINISTRY OF COMMERCE (SHRI A. C. pared to tbe prevfous year GEORGE) • (a) No, Sir. 589 SHRI SHYAM SUNDER MOHA- (b) At the time of issue of the Exports PATRA: (Control) Order 1968 on 8th March, 1968 SHRI RAJDEO SINGH 29 items wete banred Since then there has been a net addition of 7 items in a Will the Minister of COMMERCE be period of about six years pleased to state (c) At the time of addition or deletion (a) whether exports from our country of items from the banned list, due consi­ registered a 20 per cent increase during deration is given to \arious economic fac­ April to Octobei, 1973 as compared to the tors likely need to earn larger foreign corresponding period last year exchange and thus maintain external equi­ (b) whether imports foi the same penod librium and the requirements for domestic also increased by 33 7 per cert, and consumption (c) if so, the leasons for the adverse balance of tiade 9 Seizure of smuggled cloth and silver In Gujarat THE DFPUTY MINISTER IN THE 588 SHRI P GANGADEB Will the MINISTRY OF COMMERCE (SHRI A C' Mimstei of FINANCE be pleased to GF-ORG1-) (a) and (b) >es. Sir state. (c) rhe main reason foi the ad\erse (a) whether smuggled cloth worth Rs 12 balance of tiade dining Apnl to October, lakhs was seized by customs authorities in 1973 was the laige inciease in impoits, South Gujarat on 3rd January, 1974; mainly of food, petroleum and petroleum products, non-fen oils metals and other (b) if so, whethei silver worth Rs 9 essential raw materials necess try for main- lakhs was also seized from a jeep near tainirg the industrial production and eco­ Suiat on 4th January, 1974; and nomic growth of the countiy (c) the action taken in this regard7 Illegal forward trading in Delhi THE MINISTER OF STATE IN THE 590 SHRI SHYAM SUNDFR MOHA* MINISTRY OF FINANCE (SHRI k R PAT RA Will the Mimslei of C OMMLRCE GANESH) (a) to (c) On the night of be pleased to state: , 3rd/4th Januaiy 1974, Officers of the Customs Pre\entivc branch of Bulsar Divi* (a) whethei Police vigilance and discon sion of Ahmedabad Central Excise Collec nection of telephone lines of the specula­ toiate, seized smuggled fabiics approxi­ tors have been able to check illegal for­ mately valued Rs 14 lakhs and razor ward trading in Delhi; and blades valued about Rs 24,000/- along (b) if not, Avhat further action Govern­ with one vessel \ alued Rs 75,000/- 10 ment contemplates to stop illegal forward crew members (3 foreigners and 7 Indians) trading m Delhi *> have been arrested in this connection Fuither pioceedings aie in pi ogress THE DEPUTY MINISTER IN THE MINISTRY OF COMMERCE (SHRI A. C. Or 4th January, 1974, the Customs GEORGE) (a) and (b) Illegal forwaid Officers of Bulsar Division also seized an trading has diminished since vigilance of unclaimed jeep worth about Rs. 30,000/- Delhi Police and disconnection of telephone which carried 1060 Kgs of silver valued lines of speculators. Police have been in* about Rs. 8.64 lakhs at Ring Road, Surat. stiucted to step up their vigilarce and to The silver was seized. Further investigations carry out now and then raids to stop ille­ are going on. gal forward trading in Delhi 189 Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 190

Dtepeiirt o f MtdWBMi item* by htW M ttanl Increase in India's total Imports Airports Authority 594. SHRl RAIDEO SINGH: Will the Minister of COMMERCE be pleased to 592. SHRl S. A. MURUGANANTHAM: Will the Minister of TOURISM AND state: CIVIL AVIATION be pleased to state : (a) whether India's total imports increas­ ed significantly during April—September, (a) whether International Airports Autho­ 1973 thereby registering a rise of 17 per rity has n collection of lost and unclaimed cent over the imports durirg the corres­ items; ponding period of the previous years; and (b) if so, the broad outlines thereof and (b) if so, the figures and main reasons the estimated cost thereof; and thereof ?

(c) how it is proposed to dispose of THE DEPUTY MINISTER IN THE these items? MINISTRY OF COMMERCH (SHRl A. C\ GEORGF) : (a) and (b). According to THE MINISTER OF STATE IN THE the data, published by the Director Gene­ MINISTRY OF TOURISM AND CIVIL ral Commercial Intelligence & Statistics, AVIATION (DR. SAROJIN1 MAHISHI): Calcutta, imports during April—September, (a) and (b). There aie some lost and un­ 1973 were Rs. 1117 crores and at this level claimed items like blankets, overcoats, were about 31 per cent higher as com­ umbrellas, camcras, overnight bags, clothes, pared to the corresponding period of 1972. cosmetics, spectacles, hats, watches and The main factor which has contributed to jewellery at Bombay, Calcutta and Delhi the cxparsion in imports during the first airports. Their value is estimated at half of 1973 is larger imports of food K.s. 3,300/-. grains, petroleum and petroleum products, non-ferrous metals, chemicals, machinery and transport equipment necessary for in­ (c) These will be disposed of in accord' creasing the industrial production and sus­ a nee with the International Airports Autho- taining growth of the economy. iity (Lost Property) Regulations which aic under consideiation of Government and aie expected to be promulgated shortly. Agreements between Management and various employees Unions and Associations of Indian Airlines Export of blood derivatives to western countries 595. SHRl RAJDEO SINGH: Will the Minister of TOURISM AND CIVIL AVI­ 593. SHRl S. A. MURUGANANTHAM: ATION be pleased to state: Will the Minister of COMMERCE be pleased to state: (a) whether Indian Airlines’ Wage pacts lapsed in the 3rd week of January this (a) whether ar.y investigation was con­ year; ducted on the export of blood derivatives to (b) if so, whether all agreements entered western countries; and into between the management of the Indian Aii lines and its various employees Unions (b) if so, the particulars thereof? and Associations since 1969 have also lapsed; and THE DEPUTY MINISTER IN THE MINISTRY OF COMMERCE (SHRl A. C (c) whether while entering into fresh GEORGE: (a) No, Sir. agreements the management proposes to sec that Indian Airlines Services aie at pai (b) Does not arise. with other like Central Services? 191 Written Answers FEBRUARY 22, 1974 Written Answers 392 THE MINISTER OP STATE IN THE ; : , (p) *h$ther Century Enka, becauseit MINISTRY OF TOURISM AND CIVIL kept out o i the voluntary agreement, has AVIATION (DR. SAROJINI MAHISHI): made a profit of Rs. 3 crores at the install' (a) and (b). The period of validity ed capacity of 2 tonnes a day; and of the agreements settlements sign- ., „ . . . ed with (he 8 Unions/Associations W) whether Shree Synthentira who have in Indian Airlines was up to 31st “ i"sta,led of ab° ut 3 tonn“ 8 March. 1973 and thereafter till these were da> .has profits on its first terminated by either party by giving two year s wo e • months’ notice. The All India Aircraft Engineers’ Association gave notice of ter- THE DEPUTY MINISTER IN THE mination of their agreement in February, MINISTRY OF COMMERCE (SHRI A. C 1973 and the Indian Aircraft Technicians’ GEORGE): (a) Yes, Sir; the two firms Association and the Air Corporations Em* have been advised to agree to participate pioyees’ Union gave notices in April, 1973. in the voluntary agreement between the The management reviewed the whole posi* spinners and weavers of nylon yarn so that tion in the light of past experience and 55 per cent of their production of flat yam terminated the settlements/agreements with could be released to actual users at the all the Unions/Associations after due notice agreed prices, in November, 1973. Nonetheless, the pro­ visions contained ic the earlier settlements/ This can be looked into as soon as agreements would continue to be in force this unit goes into commercial production, until fresh settlements are rcached. (c) and (d). Government have no specific (c) While negotiating fresh agreements/ information about the quantum of profits settlements, the management proposed to these f,rms on account of their non- keep the recommendations of the Third participation in the voluntary agreement. Pay Commission and also the service condi­ tions obtaining in other Public Sector circular Issued by Maharashtra »«nL and Undertakings in mind. other nationalised banks regarding display' ing of photograpiis of President and Prime Minister in their branches Assurance by Commerce Minister on the Tariff Commission Report on artificial yarns 597. SHRI MADHU LIMAYE: Will the and fibres Minister of FINANCE be pleased to state; 596. SHRI MADHU LIMAYE: Will the (a) whether ^ e Maharashtra Bank and Minister of COMMERCE be pleased to other nationalised banks have issued a cuv statc; cular directing their branches to display photographs of the present President and (a) whether the Commerce Minister had prime Minister of India; and “ J ran“ ,duri“8 the discuf iu“ « (b) if so, the reasons therefor ? the Tariff Commission Reports on Artificial Yarns and Fibres in the winter session lasrf year that Century Enka and Shree Syn- THE MINISTER OF FINANCE (SHRI thetics will be brought under the voluntary YESHWANTRAO CHAVAN): (a) and agreement soon, and that if they refuse (b). Of the 14 nationalised banks, Bank of to come in, other measures would be taken Maharashtra and four other banks have to bring them in line with other spinners; issued, on their own, instructions for the display of photographs of the President and (b) whether another unit, which is soon Prime Minister of the country, in some of coming up in the private sector, will also their important offices, on the gronnd that be similarly brought in within the ambit of the banks have now become wholly owned voluntary agreement; by the State. m Written Answers PHALGUNA 3, 1895 (SAKA) Written Answers 194

Impact of rig* in prices of GoM In Europe’s Operation of a TUrA Shift in most of the bullion markets on Its smuggling Ioto India Textile MiHtj in Bombay 598. SHRI MADHU LIMA YE : Will the 599. SHRI MADHU LIMA YE : Will Minister of FINANCE be pleased to state: the Minister of .COMMERCE be pleased to state: (a) whether there has been an extra- ordinary rise in the price of gold in Europe’s (a) whether most of the textile mills in bullion markets at the end of 1973; Bombay has been operating a third shift; (b) whether as a result of the credit (b) the impact of this rise or. smuggling squeeze and shortage of furnace oil, some activities on the West coast of India; mills have decided to discontinue the third (c) whether there has been any reduc- .shift; and tion in 1973 in the smuggling of ganja, (c) if so, the number ot mills involved opium and silver out of this country; and and its likely impact on production? (d) if not, the steps which Government THE DEPUTY MINISTER IN THE pioposc to take in the current year to curb MINISTRY OF COMMERCE (SHRI A. C the smuggling activities ? GEORGE): (a) Yes, Sir. (b) and (c). No decision by any mill in Bombay to discontinue its third shift as a THE MINISTER OF STATE IN THE i esult of the credit Squeeze or shortage MINISTRY OF FINANCE (SHRI K. R. of furnace oil is within the knowledge of tJANFSH): <

(c) There are no reliable means of esti­ m ^ f tr erwrsfr 4* w rr^n f - mating the extent of smuggling of any item. However, on the basis of figures of qfofrrq-T seizures of ganja. opium and silver there ^ i f - ? are no indications that smuggling out of to rn w m * # m * & ft (*ft 4 m . narcotic drugs oi silver has decreased in 1973. *t«Nr) : m ftm r m&te, hr. artpirr? 4 w *r (d) Anti-smuggling measures are kept m ^ mrnrr srarr- under constant review. Some of the fast ^ m H 1 1 sea-going launches for which orders have been placed recently are likely to be deli­ (W ^ JPFT 5T# V&VT I vered during the current year. It is also (v ) t^p xTsfzfc hr, irvrfft f * fa proposed to augment the anti-smuggling staff. Further measures are being taken to Wfi^TTT v v r t t |

12.00 ha. (5) A copy of the Annual Report PAPERS LAID ON THE TABLE (Hindi and English versions) of the Delhi Financial Corporation together W ealih-ta* (Amdt.) Rules under with a statement of assets and liabilities, W ealth-tax Act, 1957, porfit and loss account and Auditor’s Notifications etc. Report for the year 1972-73 published THE MINISTER OF STATE IN THE in Notification No. F. 6/10/73 Fin. (G) MINISTRY CMP FINANCE (SHRl K. R. in Delhi Gazette dated the 1st November, GANESH) ; 1 beg to lay on the Table— 1973, under sub-section (3) of section 38 (1) A copy of the Wealth tax (Amend­ of the State Financial Corporations Act, ment) Rules, 1974 (Hindi and English 1951. [Placed in Library. See No. LT- versions) published in Notification No. 6174/74. J S. O. 21(E) in Gazette of India dated the 4th January, 1974, under sub-section (6) A copy each of the following Noti­ (4) of section 46 of the Wealth-tax Act, fications (Hindi and English versions) 1957. [Placed in Library. Sec No. LT- under sub-section (3) of section 114 of 6170/744 the Gold (Control) Act, 1968 :— (2) \ copy each of following Notifi­ (i) The Gold Control (Licensing of cations (Hindi and English versions) un­ Dealers) Amendment Rules, 1973, der section 38 of Central Excises and published in Notification No. S O Salt Act, 1944 790(H) in Gazette of India dated the ft) The Central Excise (Thirteenth 21st Decembei, 1973 Amendment) Rules, 1973, published in Notification No. G.S.R. 1359 in (ii) S.O. 8 published in Gazette of Gazette of India dated the 15th Decem­ India dated the 5th J unuary, 1974 ber, 1973. containing coirigendum to Notifica­ (ri) The Central Excise (Fourteenth tion No SO 765(E) dated the 27th Amendment) Rules, 1973, published December, 1972 1 Plactd in library Si < in Notification No. G.S.R. 1360 in No. IT-6175/74,] Gazette of India dated the 15th Decem­ ber, 1973. [Plated in library. See No. (7) A copy of the Nationalised Banks IT-6171/741 (Management and Miscellaneous Pro­ visions) (Fifth Amendment) Scheme, 1973 (3) A copy of the Emergency Risks (Hindi and English veisions) published (Goods) Insurances (Fourth Amendment) in Notification No S.O. 3467 in Gazette Scheme, 1973 (Hindi and English vei- of India duted the 15th December, 1973, Mom.) published in Notification No undet sub-section (5) of section 9 of the SO. 762(E) in Gazette of India dated Banking Companies (Acquisition and the 7th December, 1973 under sub' Transfer of Undertakings) Act, 1970 section (6) of section 5 Of the Emergency (Placed in Librarv. See No. LT-6176/ Risks (Goods) Insurance Act, 1971. 74.J fPlaced in FJbrrrv. See No. L V-fTl/ 74.] (8) A copy each of the following (4) A copy of Emergency Risks (Un­ Notifications (Hindi and English ver­ dertakings) Insurance (Fourth Amend­ sions) undei sub-section (2) of section 13 ment) Scheme, 1973 (Hindi and English of the Central Sales Tax Act, 1956 :— versions) published in Notification No S.O. 763(E) in Gazette of India dated (i) The Central Sales Tax (Regis­ the 7th December, 1973, under sub-sec- tration and Turnover) (Second Amend­ tion (7) of section 3 of the Emergency ment) Rules, 1973, published in Noti­ Risks (Undertakings) Insurance Act, 1971 fication No. G. S. R. 519(E) in Gazette fPlated m Library. See No. LT-6173/74.] of India dated the 13th December, 73. 197 Paper* Laid PHALGt?NA 3, 1895 (SAKA) Papers Laid 198

(ii) The Central Sales Ta* (Regis­ (iv) The National Insurance Com­ tration and Turnover) (Amendment) pany Limited (Merger) Scheme, 1973, Rules, 1974, published in Notification published in Notification No. S.O. No. G. S. R. 26(E) in Gazette of India 806(E) in Gazette of India dated the dated1 the 1st February, 1974. [Placed 31st December, 1973. [Placed in Libra­ in Library. See No. LT-6177/74J ry See No. LT-6180/74.]

(9) A copy of the Delhi Sales Tax (12) A copy each of the following Noti­ (Sixth Amendment) Rules, 1973 (Hindi fications (Hindi and English versions) and English versions) published in under section 159 of the Customs Act, Notification No. F. 4(18)/73-Fin. (G) in 1962:— Delhi Gazette dated the 6th December, 1973, under sub-section (4) of section (i) G.S.R. 1361 published in Gazette 26 of the Bengal Finance (Sales Tax) of India dated the 15th December, 1973 Act, 194J, as in force in the Union together with an explanatory memoran­ dum. territory of Delhi. [Placed in Library. See No. LT-6178/74,] (ii) G.S.R. 1383 published in Gazette of India dated the 22nd December, 1973 (10) A copy of Notification No. together with an explanatory memoran­ G.S.R. 6(F) (Hindi and English versions) dum. published in Gazette of India dated the 1st January, 1974 making certain amend­ (ili) G.S.R. 1410 published in Gazette ment to the Second Schedule to the of India dated the 29th December, 1973 Indian Tariff Act, 1934, under sub-sec­ together with an explanatory memoran­ dum. tion^) of section 4A of the Indian Tariff Act, 1934. [Placed in Library. See (iv) G.S.R. 541 (E) published in No. LT-6179/74.J Gazette of India, dated the 29the Decem­ ber, 1973 together with an explanatory (11) A copy each of the following memorandum. Notifications (Hindi and English ver­ (v) S.O. 810(E) published in Gazette sions) under section 17 of the General of India dated the 31st December, 1973 Insurance Business (Nationalisation) Act, together with an explanatory memoran­ 1972 :— dum. (i) The New India Assurance Com­ (vi) G.S.R. 19(E) published in Gazette pany Limited (Merger) Scheme, 1973, of India, dated the 31st December, 1973 published in Notification No. S.O. together with an explanatory memoran­ 803 (E) in Gazette of India dated the dum. [Placed in Library. See No. LT- 31st December, 1973. 6181/74].

(V) The United India Fire and (13) A copy each of the following Genera] Insurance Company Limited Notifications (Hindi and English versions) (Merger) Scheme, 1973, published in issued under the Central Excise Rules, Notification No. S.O. 804(E) in 1944:— Gazette of India dated the 31st Decem­ ber, 1973. (i) G.S.R. 520(E) published in Gazette of India, dated the 13th Decem­ (Hi) The Oriental Fire and General ber, 1973 together with an explanatory Insurance Company Limited (Merger) memorandum. Scheme. 1973, published in Notifica­ tion No. S.O. 805(E) in Gazette of (ii) G.S.R. 14(E), 15(E) and 16(E) India dated the 31st December, 1973. published in Gazette of Tndia, dated the 199 Message from R. S. FEBRUARY 22, 1974 Message from R. S. 200

18th January, 1974 together with an Sabha to be appointed to the said explanatory memorandum. Joint Committee may be commu- (iii) G.S.R. 21(E) published in nicated to this House. Gazette of India dated the 25th January, MOTION 1974 together with an explanatory memo­ randum. “That the Bill to regulate the accep­ tance and utilisation of foreign (iv) G.S.R. 82 published in Gazette of contribution or hospitality by India dated the 26th January, 1974 to­ certain persons or associations, gether with an explanatory memoran­ and for matter connected there­ dum. [PI a, ed in Librarv. See No. LT- with or incidental thereto be re­ 6182/74]. ferred to a Joint Committee of the Houses consisting of 60 (14) A copy of the Final Report of the members; 20 members from this Direct Taxes Enquiry Committee (Hindi House, namely:— version). [Placcd in library See No. LT-6183/74J. 1. Shri D. D. Puri. 2. Shi i Chakrapani Shukla. R e p o r t (1973) of the Tariff Commis­ sion on the Biennial Review of the 3. Shri G. R. Patil. Sericulture Industry 4. Shri Kali Mukherjee. THE DEPUTY MINISTER IN THE 5 Shri Harsh Deo Malviya. MINISTRY OF COMMERCE (SHRl A. 6. Shri Ganesh I al Mali. C. GEORGE): I beg to lay on the Table 7. Shrimati Pratibha Singh. i* copy of the Report (1973) of the Tariff 8. Shri Kasim Ali Abid. Commission on the Biennial Review of the Sericulture Industry (Hindi version), under 9. Shri Manubhai Shah. sub-section (2) of section 16 of the Tariff 10. Shii bmonsing M. Sangma. Commission Act, 1951. \Plareii in library. 11. Shri Shamlal Gupta. See No. LT-6184/74J. 12. Shri Om Prakash Tyagi. 13. Shri Kalyan Roy. 12.01 hrs 14. Shri S. S. Mariswamy. 15. Shri Sitaram Singh. MESSAGE FROM RAJYA SABHA 16. Shri D. Y. Pawar. SECRETARY-GENERAL: Sir, I have 17. Shri Abu Abraham. to report the following message received from the Secretary-General of Rajya 18. Shi i K. P. Subramania Menpn. Sabha:— 19. Shri Bhupinder' Singh. ‘1 am directed to inform the Lok 20. Shri Ram Niwas Mirdha. Sabha that the Rajya Sabha, at and 40 members from the Lok Sabha; its sitting held on the 19th February, 1974, has passed the that in order to constitute a meeting enclosed motion referring the o f , the Joint Committee, the Foreign Contribution (Regulation) quorum shall be one-third of the Bill, 1973, to a Joint Committee total number of members of the of the Houses and to request that Joint Committee; the concurrence of the Lok Sabba that in other rcspccts, the Rules of in the said motion and the names this House relating to Select Com­ of the Members of the Lok mittees shall apply with such 201 B.O.H. PHALGUNA 3, 1895 (SAKA) B.O.H. 202 variations and modifications as Business in this House during the week the Chairman may make; commencing 25th February, 1974, will consist of:— that the Committee shall make a re­ port to this House by the last day (a) Discussion on the President's of the first week of the next Address. Session; and (b) Consideration and passing of the that this House recommcnds to the Esso (Acquisition of Undertaking Lok Sabha that the Lok Sabha in India) Bill, 1974. do join in the said loint Commit' tec and communicate to this As Members are already aware, the House the names of members to Railway Budget for 1974-75 will be presen­ be appointed by the Lok Sabha ted on Wednesday, the 27th February and to the Joint Committee.” the General Budget for 1974-75 on Thursday, the 28th February, 1974.

PROF. MADHU DANDAVATE 12.02 hrs. (Rajupur): I suggest that the following items should be taken up and due time UNTOUCHABILITY (OFFENCES) allotted for the discussion of those subjects. AMENDMENT AND MISCELLA­ NEOUS PROVISION BILL (1) In the last session it was agreed that the recommendations of the Sugar Com­ R p.p o k t o f J o jn t C o m m i t t e e mission should be discussed. I hope that some time will be allotted to that. SHRI S. M. SIDDAYYA (Chamara- janagar): I bet to present the Report (2) We had already set up various com­ of the Joint Committee on the Bill to mittees for the Plan. I hope a comprehen­ amend the Untouchability (Ofiicnces) Act, sive discussion of the Plan would be taken 1955 and further to amend the Representa­ up. tion of the People Act, 1951. <3) Theie have been icferences on a (3w *E'Si) : artsrer number- of occasions to some of the aspects of the international monetary system. A comprehensive discussion, once and for all, # W* w r f : should be taken up on this question so that ‘‘Police atrocities beyond measure with members of this House will have the oppor­ no parallel even under foreign rule/’ tunity to express their view-points on the reforms to be introduced in the Inter­ arwqr : w # TiMhn * rt national Monetary Fund. f i 3rrcr m r*r vnrfr i ztmrt hn*r wi Very often, our representatives attend the international conferences. But they do •rltci« tfcRT fRT I not have the sense of the House. There­ fore, I expect that a comprehensive discus­ sion on this subject should be taken up. 12.03 hrs. Lastly, during the last session, I was my­ BUSINESS OF THE HOUSE self permitted to initiate a discussion in the House on the Maharashtra-Karnataka THE MINISTER OF PARLIAMEN­ border dispute. I withdrew my motion TARY AFFAIRS (SHRI K. RAGHU when it was suggested that some time RAMAIAH): With your permission, Sir, should be given to the Government to con­ I rise to announce hat Government sider the proposition. I earnestly request 203 Mmu#e from FJEBRUAR Y 22, 1974 R a m Sabha 204 tha t if they have not been able to settle frwm ^ ^ i arfV aro 5# the dispute, the House should be taken m into confidence and we should be given an f ?rf ^ptpt vt fronr ^ ^ w^rnf fa opportunity to express our view-points ^ sf ^ fa^rr 7 g»t 3kt ^ ^ as to the method in which the dispute « w i TlfT VT 3TR v t snw ff m m*Tt should be settled. fw ^ swt fa^r i r t 1 ?www? onsn*nr) = w r $ r sfr, & rx w«i «wi«tm ( ^ tt) : arwr^r * f < f a w m # r*T f a * ^ ^IWR ^ 3R5T*ff ^rng w ^ f a vpRTRT ^ 1 20 m * r*fk *Nn? ^ ^ ^ w fti t o ^r *h *Hirrt ^ arat ^tt ^t «bt $m *Htfa fa-?rr ^it ??r f i ajft ??rt ^ f v w d trW apt q^llforqi ^ tW* * r # srf httt # m arrpe shr} ^ m^T7 wot w 4 vu 0 w ? 1 ^ a m r r i' *rr ^ srtrr, ^?npf # |^rf5r «fT7 f TfT^ snf wm $ srrcft ^ aift w #t*r- ^ ? r g jf stfrt sNrr *ft vt*r «ttj«m *ft *raf «pf shr? *qsr ^T^TT § r 1 g$rfM qr? 7^ ^ I fJT W e d STTcT ^ ^srr®r arft * 1* ^ t^ tt $7 f a g*r q? anr^r r t 1 mmrdnf : an^T $t, ?nr^ i?rRf w ft *rp ^ r w ^ t t f~ 1 «mr «ng ^ fa 25 »r«mr? 24 ^pt- SHRI K RAGHU RAMATAH. As the apft fWi f h v pc f r r t«W W w ?r sero; House is aware, regarding many of the A W r, fst fa"3T aif? t *r subject suggested by the hon. Members *nft 4 «T7 , arm^Nr 4 ^ there will be opportunities to discuss them 24 sm V ? ^ mmw wm r f ar?V wv vrm during the discussion on the President's Address, the General Budget and the fa m*rt «rc fcr*R fa^r snsrnT arft Demands for Grants. In any case, I shall fcR ftfnr 4 zwtfm *h *m r fcranr f convey to the Minister concerned the fynETPf* sfrffc ct>i44i^I ^ 1 desire of the hon Membeis There is aho gpTTer v i^ h m fa rf the Business Advisory Committee which m ff«n^'^T t v i r jt*»t f arf? will look into the suggestions made OT5 ^ 3^? >)^NV1T ^ 8 MR SPEAKER- Even if there is going i, M m w 4 «?T to be a debate, the Members have asked t?Fr. Tj. 4 ar^r? T'iwitc ^ 1 ?if *f?t igo for certain statements or informations Km wh ^ rtrr ^ f arf? h W When the Ministers reply, they should also apt ? k 3^ m HF!T f I «WTT be dealt with f t »TOT f H H i ^ l ^ r w if f arr «nj ar?BT ^ 1 SHRI K. RAGHU RAMAIAH . I shalJ ^ ^KfrrT fa irt *\ & t convey it to the Ministers concerned 205 , JS. O, H. PHALGUNA 3. 1895 (SAKA) Cinematograph 206 (Second Amat.) PROF MADHU DANDAVATE: I * p n r * * «T O T : *rr TO I wish to draw yon- attention to the fact _ .,>j> „ _ _a j ' that me Buslov Ad™»y Committee bad ** " J " '** J J * decided in the last Session to admit certain J* “ J w I SRT items. At least those items like the Sugar *T ^ ^ 5fFn OT *TTr?T9¥ # *177? m f*h sft tyfer* * ^ ft i ^ ^ ^ ^ ^ ^ ^ ^ ^ sM i irhfhR f s w t tfTTcft . __ . , 3nw y : WT rTPT T^f ^gr 1$ ? ^nr anrw : ^ ^?r *w ^rr T?m spf^r ^ ^ oif? ^ i ^mr^T « ttst ^ ^ ^m1 ^rr ^ ^ i t^ ? t ^ arr ^ eff? ^rnr an?t FT^ «RT? 2STW 5*^ M^lrl ^ fa" ^ 3TrT7 *ff>r^? 5Pf ^ I f^iTR tp?t vfrr ^rrsf ^ s rta r v A f, ^ i m «pf ^ *n«N, ------srf *n^ nq ^ ?it ^ f - ^ TOlf «rri c W JtarTTsjT aif? ^ f^r * ” * . ^ m '1 „ ,^ 1 , ,a M . CINEMATOGRAPH (SECOND AMENDMENT) BILL—Contd. «rw^r Kg)?1* fa*tr f sif? m m i f 1 ? 3WT f t ?R f^ W f a ^ MR- SPEAKER: Now, we take up tt|9|M|| ^ ^ , Cinematograph (Second Amendment) Bill,

# ^ u n r W [ CBt n r ; rh r 5T^T ^ Shri Gujral.

* tt m ^ 1 THE MINISTER OF INFORMATION m nr wffcpT : m w ^r «n *mmt and broadcasting (shri i. k. afrrf t GUJRAL): The hon. House will recall 207 Cinematograph FEBRUARY 22, 1974 (Second Arndt.) mil 208 [Shr i I. K. GUJRAL] The salient features of the present Bill that in 1965 the Rajya Sabha bad passed which is before the House are that the cen­ a resolution asking for setting up of a sorship Board will not be merely an over­ committee to examine the working of tne seeing advisory body as it is at present but film censorship law. Accordingly, a Com­ will be actually involved in the judging of mittee was set up under the chairmanship films, of course, with the assistance of of Mr. Justice Khosla on which, in addition assessors from different disciplines and to various other eminent people. Members with different social, cultural and pro­ of Lok Sabha and Rajya Sabha were also fessional background. leprcsented. The Committee did a very The Government propose to entrust the worth white work and after years of labour appellate functions to an independent tribu­ they produced what is now commonly nal whose advice will be accepted except called the Khosla Committee Report and in a few cases covered by Article 19(b) on that basis, the Government examined of our Constitution. the law and we have now come before you to amend the censorship law as it was 1 mav say here that so fat as the issue 1'iomulgated in 1952 and later on amen­ of deccncy and moiality is concerned, the ded in 1958. Government, by and laige, propose to abide by the findings of the appellate Censoiship, to say the least, is Roatd unless the Government find some u negative function. Generally speaking, ver> special reasons for intervention The negative functions are hardly popular. All Government also has been feeling from the same, a variety of considerations, all time to time that the stage has firmly rooted in the punciple of public come when we should veiy explicitly ex­ responsibility, make it necessary for certain press our views regarding the trends about negative functions to be operative. sex and violence in films which have been exhibited ot late When 1 bi ought into In our Constitution is enshrined the shaip focus the increasing tiend of cAplkit right to freedom as a fundamental right of sex and violence, the initial reaction in a the people of India. Under Article 19(a) section of the film-makers was one of the freedom of speech and expression is fright and suspicion. guaranteed to all citizens. However, this In dcfeience to the strong wishes of this freedom is limited by certain reasonable House and the other House and the intense restrictions in respect of the interests of public concern voiced by seveial public the sovereignty and integrity of India, the institutions and associations the Central security of the State, friendly relations Board of Film Censors had to perform the with foreign States, public order, decency unhappy task of rigorously enforcing the or morality or in relation to contempt of code and even banning some films, which court, defamation or incitement to an violated the principles defined in the code. offence, etc. The law of censorship is the I am glad to sav that on due course with­ instrument of the discharge of public res­ in the industry itself voices of teason and ponsibility in respect of ensuring freedom lesponsible objectivity emerged in con­ of speech and expression subject to consti­ sonance with oui own thinking and the tutional limitations. unfortunate disastrous trends now seem to be on the wane. 1 appreciate that it Although the general principles of cen­ is not easy to switch off the tiends in a sorship remain fairly constant, several short span of time. However T do feel factors introduce a variety of variables. that it will not be fair not to notice That is why, as the demands of soceity the marked improvement which is change, the system of censorship has also noticeable. Several producers and direc­ to change as the community keeps on ad­ tors are now coming forward to express justing to new norms and new situations. fairly strongly against vulgarity obscenity 209 anemograph. FEBRUARY 22, 1M4 (.Second A m 4 t$ Bill 210 and violence and films which had shunned MR. SPEAKER: Motion Moved: these elements completely as a matter of “That the Bill further to amend the conscientious choice, are now gradually Cinematograph Act* 1952 as beginning to succeed at the box-office. I passed by Rajya Sabha, be taken tun relieved at this very happy development into consideration.” and through you, Mr. Speaker, I wish to place on record our appreciation for the Befoie I proceed with the consideration new role which the leaders of the film of the Bill, I have to inform hon. Members industry have assumed to reverse the un­ that the Foreign Minister has returned fortunate trends. Public opinion is slowly fiom Iran and he will make a statement asserting itself. I do feel that public at 6 O' clock in the evening, just at the opinion has finally prevailed because no end of the sitting. media, especially the media like films, which has a direct social relevance can Theie are two hours allotted to this Bill. exist in a vacuum and without being \ request hon. Members to confine them­ sensitive to public opinion. selves to the time limit. Before I call Mr. Hazra, I want to call Mr. Srcekantan Nair; he says he is not well and he wants 1 do not want to go at length and to go; so I will give him chance now. amplify or reiterate what I have already Shii Sreckantan Nair. said in the past. Out I do hope the Mem­ bers will take interest in this Bill and SHRI N. SREEKANTAN NAIR when I have heaid them, I will be able to (Quilon): I am very thankful to you, Mr. say more towards (he close of this Debate. Speaker, for giving me this opportunity to speak.

But befoie I sit down I would like to I called the attention of the hon. Minister say this that Government on its part will to this Bill moment it was presented to not be content by only relying upon the this House and I pointed out how cumber­ ucgathe functions of censorship which as some it is and how it defeats its own I submitted is inescapable in our circum­ purpose because it is so costly, and there stances, but would cause meaningful posi­ are so many bodies constituted under this tive inteivention in the film scene, which new amendment. 1 said then that the pur­ alone can contribute to the revival and pose will be defeated. Sir, admire his regeneration of the Indian films. The independence and his appreciation of honourable House is aware of our thinking aesthetic values and his resistence to pres­ to set up a Film Council as an apex body sures put in by some top members of his with consultative and regulatory role, a party in such matters. National Film Corporation to handle com­ mercial activities in consonance with the So far as Censorship Board is concerned broad principles of our film policy, the it is all right. With regard to the Appellate essence of which is that film is not a mere Tribunal you have got 11 members and commercial commodity to be traded in, but you have got the examining committee. an important input into our social and cultural milien. In the very first page of the Bill, there is constitution of an Examining Committee in relation to films; on page 2, for Section I do hope that with the proposed amend­ 3 (a) (2) for the words 'not more than nine ment Bill we are making our pattern of other Members’, the words ‘five other censorship meet our needs and also create whole-time members and six honorary conditions which are necessary for the full members’ making a total of all shall be growth and development of the film substituted. ThUs will make it more medium. costly. 211 flhMMMro* nBHEDAnr 31, |»74 (Second Amdt.) mil 212 ISh n N. Shreekantan Nair] hibition of films, produced without State Again under 3A, you have provided for intervention, The impact of the films, seven assessors in each language. That particularly, on the younger genet ation is means the examining committee is very tremendous. They are at a stage when their very costly to Government and it defeats mind is still cultivable. It can be culti­ the very purpose which you want to serve. vated in the direction which could be I would have moved a motion for sending highly dangerous and pernicious lor the the Bill to the Select Committee. But, for futuie of the country, but, at the same want of time, I would only like to bring time, may be with piopei so»t o i enlci- this to your notice for the consideration tainments, wc may be able to hrncss the and also for the consideration of this tremendous wealth of the talent that we House and also the hon. Minister so that have in our young men foi the emanci­ this cumbersome procedure may be elimi­ pation of the lot of the people in this nated as far as possible. country.

That is all what 1 want to say. In other woids, censorship by itself has an exceedingly important role to play not SHRI N. K. P. SALVE (Botul): Mr. meicly m ensuring moral standards of the Speaker, Sir, so far as the objects of the people who go to the films but also ensure Bill are concerned, there would hardly be a proper direction for the younger genera* any conti oversy As fai as laudability tion of this country. and salutariness of the objects of the Bill are concerned, I entirely agree with the SHRI M. C. DAGA (Pali): I want to principles enunciated in the Bill. They are know what is the moral standard which in conformity with some of the recommen­ will be ensured for our younger generation dations of the Khosla Commission.

On reading the report, one would find SHRI N K. P. SALVE: Moral stan­ , that the commission have rendered yeoman dards those are which moial and s*jndards service to the film industry by going into My learned friend will not be able to great details of the vaiious malaise of the undersand the explanation without stan­ industry and in suggesting remedies to get dard It would be tutile lor mo to explain out of the malaise m which it has been it if he does not understand il languishing for decades.

The Bill seeks to revise essentially the PROF. MADHU DANDAVVTE: It is set-up of the Central Board of Film like the Holy Roman Empire which was Censors so ably pointed out by the very neither Holy nor an Empire. personable and able Minister of Informa­ tion and Broadcasting. Censorship in the SHRI N. K. P. SALVE: I shall come present stage oC Indian society is utterly to the moral standards a little ldter. indispensable to maintain certain moral standards for those who go to see and MR SPEAKER: They difltei from per­ view the motion pictures. We cannot, at son to person. this stage, ever dispense with the censor­ ship of films because we have yet to ensure SHRI N. K. P. SALVE: I do not want who are in the show business. And one to barter away regut to ci cation of art cannot ever undermine the influence of for supposed moral standards But at the films on the India society. This is one same time, rampant licentiousness must media of entertainment which is a very not be allowed under the name of art; it powerful media and it has the largest im­ must not be allowed unduer the name of pact on the social and moral values which aesthetics, and it is to that tint 1 am goinp govern any open society permitting ex­ to address myself. 213 t Cinematograph PHAIXiUNA 3, 189J (SAKA) (Secoid Amdt.i 214 BOt If one were to see the responsibility of the have said regarding moral standards ccnsors to ensure that certain moral stan­ ure not something which I am dards are maintained in the films and to stating as a puritan; nor am I on orthodox ensure that an improper or immoral direc­ person; I am liberal in my view’s and fairly tion is not allowed to be given to the modern in my attitude. . . younger generation who are particularly vulnerable, then one musi submit that the MR. SPEAKFR: That is quite a normal performance of the board of film ccnsors attitude. so fai has been appallingly dismal. That is the finding of the Khosla Commission. The SHRI N. K. P. SALVE : But ihat cer­ board of film censors tried to shift the tainly does not debar me from expecting blame on to the industry and the industry certain moral standards in public life, and tried to shift the blame on thrcn, and other if we have been seeing the most obnoxious witnesses who came in evidence before the obscenity, vulgarity, and lewdness in the commission tried to blame both the industry public, we have got to protest against it and the film censors. It has to be appre­ somewhere some time. I do not know how ciated that in view of the very serious effective that protest is going to be. If pub­ responsibility which this board carries, its lic exhibition of these obscene vulgar films is failure means a very seiious lapse, in fact, rampant and has become the order of the today, we find a very unholy effect of these day, I submit that we are not poking our lapses on our younger genaration, and in nose inside the private affairs of anyone, fact, one would not hesitate in stating that because I do not want to poke my nose the history ofdegradation and debasement in into the private affairs of anyone. the values of life of our younger genera­ tion is in fact the history of tremendous SHRI M. C. DAGA: Can he cite the box office success of films, full of excessive instance of any film which he calls sc\, intense oreticism and over-abundane of cbscene? Has he seen that film? crime. If that is correct. Government cannot SHRI N. K. P. SALVE: T have recently escape their own responsibility, because a seen a film which is saturated and dnppirg casual tinkering with a very serious respon­ with juvenile sensualism. sibility like film censorship is utterly uncos- cionable. This sort of censorship is much MR. SPEAKER: Shri Daga wants the worse than rank naked licentiousness. This hon. Member's guidance. is what has been happening so far in our country. If one were to see ten box office PROF. MADHU DANDAVATE: He hits, one would find that nine out of them wants the name of that film so that he can arc such as have violated the entire guiding see that. principles of censorship in letter and SHRI N. K. P. SALVF : Pi of Danda- spirt, the one which has not violated the vate will provide the name. It comes from letter of the guiding principles of censor­ a genius of producer, who is a friend of ship, according to which the board was mine. He produced a tremendous film supposed to act, has violated the spirit of "Joker', it was poetry on celluoids. It had such principles. If this be the story that its romance and it had its other enter­ all our box office hits are only those which tainment angles and it was not violate the norms and principles of censor­ an insipid film. But that film flopped. ship, then it is an extremely lamentable From that he climbed down to this, another story for which the hon. Minister will have film full of absolute sensualism and juvenile to answer this House. infatuation of the most shameless and con­ tagious variety. This film is clcaily and com­ Coming to moral standards, I think it pletely violative of so many principles is necessary for me to offer a personal which have been laid down. I just want explanation and submit that whatever I to refer to some of them. Dagaji is a 215 C m etM tvm ph FEBRUARY 22, 1974 (Second Arndt) m i 216

[Shri N * K. P. Salve] MR. SPEAKER: Mr. Basumatari, you hard taskmaster. He will ask, next, ‘Why can speak in your own turn whatever your do you say the film is violative of general experiences are. principles?' SHRI D. BASUMATARI: Since he has described it and we aie tempted by the These general principles have been description, let us know the name of the enunciated in a Notification issued by the film. Ministry of Information and Broadcasting, SHRI N. K. P. SALVF: I am not lead­ of which the hon. Minister is the head, ing him to any temptation. It docs not matter and he owns the full responsibility for its which film it is It is a film of this nature implementation. It is dated, 6 February, which is making roaring business: whether 1960. It lays down principles which, it is A, B oi C does not matter. If I inter alia, are (1) It is not desirable that whisper the name of the film into the . a film ought to be cettified as suitable for ministers I will not be surprised if the public exhibition, either umestricted or res* Ministei will say I have seen it half a dozen tricted, to adults which (a) deals with times’. crime in such a manner as to depict the modus operandi of criminals. Then it Then (c) says 'which deals with the rela­ says 'which throws the glamour of romance tions between the sexes in such a manner and heroism over criminal chaiacters’. Two as to depict excessively passionate love criminals indulging in the wo$t type of scenes, scenes suggestive of immorality’ juvenile sensualism being glorified—if that If these principles were ever applied with a modicum of sincerity, minimal is not crime, I really do not know what it sincerity, while censoring films., I think nine would be. out ol ten films would never have been in­ But there is moie dnect violation, under serted into the piojcctot for public exhi­ fb). It says ‘deals with vice and immora­ bition If at all these principles have been lity in such a manner as to undermine the shown any respect, if they have ever been accepted canon-* of decency’. A rich parents’ adhered to, they ha\c been adhered to in minor sons falls m love with a minor girl then breach faiily rich herself, and without there being U is easy to blame the Board of Film the slightest semblance of anything sublime Censors. But what has the Government and noble in that love, both of them elopp- done about it l^et them today ban a film and try to commit suicide. The unfortu­ like this which is having crores worth of nate part of it is that they do not die in business and tomorrow the film industry that scene. will come down to its senses. It is your responsibility Why don’t you take the This film is making ciores and crores of responsibility yourself ? Why are you brow­ rupees. The censor has passed it. Why beaten by the powerful film industry which blame the Board of Censors? Why don’t always says, 'We are a languishing industry, you exercise the power of review, if you we are a starving industry, we are a fa­ have the courage? I am addiessing this to mished industry, we are very small people the Minister. He is one of the very few and even the 'black’ which we make is Ministers who understands his job niggardly as compared to the 'black' made thoroughly well. He has the courage to in any othei industry? This is the way take the requisite decision if this film is they compare themselves. But what is ol violative of these principles. importance is what influence it has on the SHRI D. BASUMATARI (Kokrajhar): teen-age children. The Minister has a son, What is the name of the film? a handsome young man. Can he imagine what influence it has on his son when he SHRI M. S ATY AN ARAYAN RAO goes and secs that film which has no no­ (Karlmnagar): Why does he not say bility, no sublimity, about the sort of love ‘Bobby’? making adventure that is depicted* there ? 2)7 ' Cinematograph PHALGUNA 3, 1895 (SAKA) (Sternal Arndt.) 218 Bill 1 h ave nothing against a man and a It is our most unfortunate experience that woman having been in love from the days radicalism has come to mean State capita* of Adam. It will go on till Usrnity. But I lism and socialism has come to mean sheet refuse to accept sheer carnal lust between bureaucralisation. I hope the Minister will a man and woman, however universal, as give a solemn assurance on the floor of the a matter of public exhibition in the natre House that these men—five, six and the of art. An American friend of mine was Chairman—that are drawn will be people telling me, “1 have a serious grievance of imagination, people drawn from publio against your Indian films." I asked him what life, who have an image, who are res* was it. He said that his grivance is that pected, and are capable of conscrien- they end with the marriage, as though in tious duty and that it will not be another India after mariiage there is no romancc Board to accommodate some of the re­ between a man and his own married wife. tiring ICS and IAS officers; and that it is This is what we have allowed our films to not going to be a Board in which some becom e just because the censors do not dis­ yes-men will be sitting, because the Board charge theit duties properly and the Minis­ has an extremely onerous and delicate res ter himself and the Ciovernment itself are ponsibility. utterly blind to their own responsibilities Before I conclude, I would like to draw and they menily allow the films to go on your attention to an extremely important exploiting the so me what sex starved recommendatior made by the Khosla Com* Indian society. mission. They have sought to keep the Fveiy film has a cabaret scene, a cabaret Censor Board itself out of the pernicious scene with a young lady shown half-nude, influence of the film industry. It is good dancing and swinging. her bottoms that they have not suggested another Cen­ in a very obscene and vulgar manner sor Board to censor the presen Board. They which goes on. I have yet to see a cabaret have however suggested to remove the in India having that sort of dancing any- Boaid office from Bombay, Madras and .all wheic. We aie not living in Paris; this is those places where the corrupt influence is not Honolulu; this is not Copenhagen; we tremendous. 1 do not find anything in the aie not a Scandinu\ian countiy. In this way Bill to icmove this from the corrupt influ­ you create a sex-starved society. You do not ence of Bombay, Calcutta and Madras. 1 have cabaiets in India of that nature. You have nothing against Bombay, Madras and allow people to witness that sort of caba­ Calcutta. But the Commission, after a ret scenes. Will the Minister give an assu­ thorough examination of the entire pros rance in the House that all these cabaret and cons of the matter came to the con­ seen as here after at least will fall within clusion that this Board must be located this censors banned list and will not be away from these places. One of the places allowed with half-nude lady coming out they have suggested in Nagpur. I hope the and dancing and to create a sex-starved Minister will give an assurance that the society ? There arc one or two points which main Board will be located at Nagpur. I wilt be making, and I shall have done. These are my submissions. The Bill contemplates a mechanism for making the Board of Censors more effec­ SHRI MANORANJAN HAZRA (Aram- tive; they will have ore paid Chairman as bagh): Sir, 1 want to confine myself with­ it is now, and instead of having casual in the periphery and jurisdiction of this members who never discharge their duties Bill only. At the very outset, I would like properly and who absented themselves to remind the hon. Members of this House most of the time whenever films were that in the last budget session the hon. sought to be censored, the Billcontemplates Minister told us that he would bring a that there will be five wholetime members comprehensive Bill in respect of the film and six honorary members, out of which industry. But as ill-luck would have it, three would be drawn from the industry. we the Members of Parliament and the 62 U S /7 3 -8 219 Cine matograph FEBRUARY 22, 1974 , (Second Amdi .) Bill 220 |.Shr i Maroranjan Hazra] A provision of the Act says: people of this country do not feel that the “A film shall not be certified as a film Minister has desired to keep his promise. free for exhibition outside India I must say emphatically that this Bill has if, in the opinion of the authority been brought here not to further the cause of competent to grant the certificate, the cine industry or develop the industr> the film or any part of it presents, as a whole. On the contrary it has been or is likely to present, an erro­ brought here only to tighten the grip or neous, distorted or misleading the party in power over the industry by image of the social, cultural jr creating a bureaucratic octopus. It is a political institutions of India, or matter of regret that a pair of chair and any part thereof’. a table brings crores of rupees from this The question of the sovereignty and in­ industry as amusement, or as enteitain- tegrity of the countiy are already there in ment tax at that time. The Government the previous clause. Then why again, in has a moral responsibility to do some­ the name of the same, new fetters aie be­ thing for the industry but they are eva­ ing introduced in this BilP Since thcie ding their duty. They are creating a is no definition of this, the competent miniature from a espionage system with authority is bound to misuse it. Suppose regard to this industry in a film 1 insert a scene of sc\eral men and women collecting their food from the There are five kinds of units over this dustbin, will that be considered a fit film *’ industry. Firstly, there is the appel­ The competent authority, without having late tribunal with 12 persons who will be any knowledge of the reality, sinely wouU nominated by the Government Second­ not certify that film for exhibition abioml ly, there will be a board consisting of 11 because, according to them, it will black­ members out of which five will be whole- en the image of India The Minister timers and six will be hon. membets. should think over and over dgain as lo Only three out of eleven will be taken what he is going to do in such circumstan­ from the industry. It is needless to say ces. that the remaining eight will have a brute majority over them. Thirdly, there will be In the last budget session 1 mentioned an examining committee and fourthly, a re­ the problems facing the workers behind the vising committee and fifthly, assessors for screen like set-makers, light men and other the regional languages. The work of all technicians. There is not a single woid these five agencies is almost the same and about them in this Bill. I appeal to the to some extent is auxiliary. It is just like Minister that their grievances should be the police organisation. The assessors are looked into I would request the hon. like the TOP’s, the examining comittee is Minister to think over these problems and the police station, the revising committee bring a comprehensive Bill in the near is the S.DPo’s office the fourth is the future which will cover all the aspects of office of the Superintendent of Police and the film industry, including the problems the Appellate tribunal will be like the of the workers and technicians, so that office of the 1G police. If the Bill had the film industry can flourish. the purpose of safeguarding the sovcrignty ¥WT ( ? H ,®rrT^ shared «f sit qr?f if4 o t h * anr- itw f w ^th jfffrr 5^fsc anhrf ^ ^ t %xm hwfr i tfarnrte* sf 7T5T «PT«m- *?T ^STTNTrr fastf f f*ntf <37, rs r4 8PTRTT %IT I . ♦ . rwtf arfwNxr qr, sWt q? tott «rr %ft ^ «pte srft *rr \ aift w *tf * $ , 5T ^t, 9TVR ^71^ *fe 5FT qM*r wfa qraf *ntf $M- ^ ww s w m i ^ f z m f $ f f e r * k f *j* ^ far? i *rt 5ftV?t w j f r i f ^ ^psr^nr ^ ?w»f ^ ^ ?rf*f iW ¥ ^spf «£ fen? s w sntf wWf ^ * tft r» *t i i r r a i r q> ??rq *tf anq-tf r s r ^ srre? ??P3 sr* ?fip etfW snrNj^rt’ ^ fan? w*rr rN» if1 i s^rri ^ q^p b rttt 3rhr «ft “t f m ^ ^r ^ t# «PT eV wfT f i snr q>*ft jt* fa**r ^ srf 4 ftrq mm f ^ n w §“ ^ ^ q r snf«r- f f ^ T 3*TT ^r%IT qTCT JT* «fe" STMT srrert ^ o t# ?nq# ,®pt *r*r q rrt ^ tii *M WTtr ajT ^rcfr ^ t st ^ «?^r f 1 i" *rter ^ s w <■ arft ?r ^«t ^ r r t o s t i f«fw? *rr sf w frrerm ^ f W f ?ffe^pr fr^nf r t t W ^Trr ^ 5 ^ fan? q>jpf ?nf ^ q* s r r o «2fP?T q» ??TQ 3IT# ^ I 3?fa ?r^T TT ?r# to t «rg f r o f 9F?rf ^ i (wwurd *r§ fa fir w%*rf ^ T ^nroet ^ i*t^ gn1 ansRirif q fw r^ i' f q ^ tf ^ T T 3TT^ ^ i t 3TFT apTT 3TT^“ ^ I fsnspf ^ 3TBTW ? ^ W ^ s w r m r w&rt qr q^ar f , faw w tft ^ t ^ 3rtt st# fhrr i t e r i ^r tf* I 0 ^ u te l srt 5lf ^ET ^ ^ irtk qrr^" t* ?H W 1973 ^ srf ^ ^ npr m arr ?^iai^fgi^r t~ ®ns # acrq^ nsr t i t 5R- 5P=*r ^ «nr ^ «r^ i

f i wcfiTFr *N rr ^ ^fN- u f t qfrftr 4 w r ^nr ^r MR. SPEAKER : You may continue qr »M *mrar after lunch. W&i f«PFiT- W lf ^ «RTsf ^ »pnrw *^r qnr ing ?“ r 13.00 bra. 7 he Lok Sabha adjourned for Lunch “*pft*r ^ ^ ^ f fW*rif ?rf sftn fw r ^ tf i t m hr ?nfsr ^ fWJ ^ eri^r ?^err-n f i arnr *tft hrftra ^ t hr? it ekrfarqr srtec t ^ err rrr^r ?t ^ adV te r ^ tfrarr ^ sW f 2rt ^itM W ^r- n ^ ¥ r ^ *rr»r^ # ^ srfVcr sri* ffrft p m ^3 q^rr f i srrpf «tri! 5rr ttt ^ erf ^ar ^rf f^srnrr ^ ? 4 rw r r® $ £ \ w *ft W f f a 3 W ?r ^ riaf I *1^ rff ^ tit SHRI 11. N. MUKERJLK (Calcutta faj rfcrrtajTT ^ <# ^ V^C I 3PHT Noith-East) : Mr. Deputy-Spcaker, Sir, I fear this is a futile piece of legislation and ^571 v tfr snr rr^f f?*1 rtfaft 4^1*4 spf T am very soriy that the Minister who has f 1 rtf 3TTT r*-W t? ^ 1 SIT *ft 3TFT earned the leptitation of being acknowledg- ^ r ? r? f f i «rf epT T $ taken 10 years or so becausc in 1965 the ^rrr ^cr tpr cr^nfsnft i khosla Committee was appointed and then a long period of gestation has led to the ap­ pearance of the Cinematographic legislation. I n ow come to Siuion t> of ihc piesent Sir, I do not understand why the Minis­ Act . . . ter with his flamboyant appeal to the country chooses not to apply his mind to It says : ‘ Notwithstanding anything con­ the evolution of some kind of a national tained \ . .” policy in regaid to the pioduction, the exhibition and the distribution of films in MR. DEPUTY-SPEAKER : I must now this country in a manner which would ask you to conclude. There is a time­ really be worthwhile. limit. Quoting takes the time of the House. Place conclude. I see, for instance, something of the mood of the Government and I have no SHRI M. C. DAGA It says : •‘Notwith­ patience with this kind of conduct when 1 standing anything contained . - . the Cent­ find that nearly a couple of years ago this ral Government may at any stage call for House hnd the delectation of having list­ the record of any proceedings in relation ened to discussions on a Bill moved from to . . . ” etc. You can call record at the Government Benches regarding the woiking conditions of woikers in the .any time. cinema industry and that was withdrawn on the plea that it had to be formulated f*RT 4s* *PT M ^R R " CttrPT 3 : 4 a little differently, and since this time, nearly two years ago, we have been treat­ Wtfcr z m fVro* # tf ^ i sfar- ed to the spectacle of one assurance after tsrnr ^ spf anrctf *r*r

tShri H. N. Mukeijee] zerland to a socalled twiss company pictures either m the production side or in which obviously, was operating the exhibition side or in the destitution through an Indian national who was their side. stooge, a man called Shiva Shander Gupta, whose name was also mentioned in this Nothing has been done in spite of the House and who was described by the fact that in the autumn session last year, Minister of State for Finance, Shri Ganesh, the Minister himself had sugested that he was as a person who was evading the clutches " going to move this Bill in that vei y session of the law. He was put up as the show­ itself. But, nothing happened in the win­ man The Swiss Corporation took over the ter session; nothing has happened also in interests of MGM Metro, Cinema and Its this session and in this session you would exhibition, distribution and so on and so be ever so busy with your budget. I find forth As a reesult of this tiansaction, I am that he said in answer to a question on sure that MGM had indirectly transferred its 19th of December, 1973 that the' draft­ block funds in India in favour of the ing stage is still continuing in regard to Guptas and in leturn, got some accured this matter. This goes on at a point of amount abroad This man, who has ac­ time when certain interests—big money in­ counts, operating in Switzerland and else- terests—Indian as well as foreign, are whetc. was described by Shri Ganesh as a vitiating the entire atmosphere of cinema­ person who was escaping fiom the clutches tographic production, exhibition etc. in this of the law; he goes about, strutting all country. We have heard about the tone over the place threatening even Members which prevails in the big-money cinema of Parliament who are trying to stand for centres like Bombay and Madias where the nghts of the Metto Cinema employees. most of the production is too tinsel and too He threatens them because he has got a footling for any self-respcctmg country to whip hand over the administration. There produce films either for herself oi for ex­ is no doubt about it hibition outside We have seen also foreign interests coming into the picture And And when we discoveied the full expo­ Government seems absolutely indifferent in sure of the Metio scandal, the Minister a manner which is, to put it very politely, himself, Mr I K Gujral repeatedly stated eju egious I say this because only the in lo k Sabha and in Raj>a Sabha that he other day we were told that there is, in was seriously considering the idea of tak­ this country—this was on 19th ®f Decem­ ing over the Metro cinema; it would have ber, 1973, U.SQ. No. 5464 in the Lok been a wonderful proposition if the best Sabha—accumulated account on 30th of cinema houses in Calcutta and Bombay June, 1973 in favour of eight U.S. firms, could have been taken over and run by the to the extent of Rs. 4.973 crores in block Government He said repeatedly in this funds by firms which were importing films House and the other House that he was into this country. There was an idea at considering the taking over of that cinema, one time that this could be utilised for but of course, nothing has been done, and producing worthwhile joint-venture films. to make matters worse, with the employees But, nothing has happened from what the of Metro Cinciiia trying to get out of the Government's answer was on it. The ans clutches of a cuminal, who is evading wer was ‘No*. These funds are there. I foreign exchange regulation laws and wish to point out how big-money operates other things, like Shiv Shankar Gupta, Only last year, there was a transaction when the Metio Cinema employees in which cansod an uptoar all over the Calcutta got from Calcutta High Court an country because a spendal was exposed and injunction preventing that man Gupta from Government itself admitted position. operating as the owner of Metro Cinema, The Metro Cinema owned by an Ameii- the Government of India was brought in can Company M G.M., transferred its in- as a party to the application, but the Gov­ teiests by a corruptions transaction in Swit­ ernment of India did not have the gump­ 229 * Cinematograph PHALGUNA 3 189 5 (SAXA) (Second Antdt.) 230 BUI tion to appear in the Calcutta High Court which costs money to the country the merely to say what the Minister did say better. The Khosla Committee’s report was openly in this House and the other House submitted some time after 1965, and we that they were considering talcing over the find Mr. Khosla is busy with a hundred Metro Cinema. inquiry committees and commissions and in his leisure he produce something and Pai- I hear now from the Minister himself liament has to consider it. Slop this non­ that they have dropped the idea of taking sense. Go ahead with a sensible policy, over the Metro Cinema because they can­ and then alone you would be able to do not touch the people in Switzerland; there something. 1 say so because Government is a change of ownership of cinemas ope­ comes forward and puts in something rating in India from American hands to about the image of India having to be so-called Swiss hands; the hands have got an projected properly. Do it in a funda­ Indian agent to operate for them, yet they mental manner. Do not continue to work can do nothing about it, because some in the mechanical, official, bureaucratic hocus-pocus has taken place in Switzerland fashion which you have conducted so far. and the arm of the Government of India Do not allow \our corrupt elements in the cannot extend there. The Government of Ministry as well as in the administration to India has not got the gumption to do a be won over by big money interests In­ thing. That is why they ^«nnot brii g dian and foreign, as they have been repeat­ in legislation for the working people in the edly. If there were time for a full dis­ cincma industry, they cannot do anything cussion, there are people here who know to control big money interests, and when something about the cinema industry and big monev inteiests are allied with foreign they would be able to tel you all about it. money, then, of course, the Government Do not allow this sort of bureaucratic prac­ shivers in its shoes and cannot do a thing tice to continue, and 1 say this because they to touch those interests concerned. This talk about the improvement of the stand­ Government is thinking of bringing in legis­ ard of Indian films. lation to improve the cinema industry by acting in accordance with the modified re­ The Indian film which biought lauiels to commendations of the Khosla Committee. this country, was 'Pother PanchalV, direct­ It is about time that this nonsense stops. ed by Satyajit Ray, which brought India It .is about time that this fraud on the to the forefront of the world cinema. It country .stops It is about time that Gov­ was made by Satyajit Ray and it showed the ernment teases to talk about this kind of life in our villages in the 1920’s, not now; thing. The time of Parliament need not but even so, it was a beautiful story be­ be wasted over the discussion as to how cause it was truthful; a true story aesthe­ far the Khosla Committee's recommenda­ tically told can be as beautiful as you wish tions about kissing being permissible or it. Satyajit Ray told that story in a beau­ cuddling being permissible can be sanction­ tiful fashion. He got the stoiy written ed by the vote of Parliament; that can be by Bibhuti Bhushan Bandyopadhyaya, and left to other agencics. he made a wonderful job of it as a film. If you wish to have my opinion, I would cut out this censorship business al­ When it went to the bureaucrats, they together. The way to operate it is: let said: it shows the poverty of India—and Government keep to itself the power of India had two Plans at that point of time— making suie that nothing that is vulgar in and after the two Plans have been in the the sense of something which goes against picture, to show the poverty of India would the grain of Indian national decency would be a terrible thing and, therefore, add on be allowed in the cinema. But all this to this picture something about the facto­ talk about puritanical pruning here and ries set uo under the First Mv< Yea* Plan there Is sheer abracadabra and the soon­ and the Second Five Year Plan and make er we can give up this kind of exercise a different job of i t ! This is the criterion 231 Cinematograph FEBRUARY 22, 1974 {Second Amdt) BUI 232 [Shri H. N. MukerjeeJ of thing. I am no puritan, I was re­ applied by bureaucials who operate under minded of what a 14th century friar had the aegis of the Ministry of Information said. He said it in the 14th century and and Broadcasting. They do not know a he was a frair and you can imagine the thing about the aesthetic aspects of the kind ot morals he piessed. He said : cinema. They do not have a notion ‘A young man and a young maiden in a about how the image of this count! y can green arbour on a May morning—if God be projected. If a scene is there showing does not foigive them, 1 will’. the poverty of oui people, they say ‘Look here, this is something which goes against It does not mattei two hoots to us This the Indira Government the C'ongiess Gov­ is a country of sunlight, of sun and lam, ernment and all the rest of it* If the truth a country open to the elements. This is is told at the same time, the nobility of a countiy of konaiak This is a countiy the people of this country m the midst of of Khajuiaho Nobody in the countiy is the wallowing poverty, that would shine worried about it out like stars m the hea\ ens 11 you do a truthful job of it as a film producei, you So 1 would cut out this legislation I can bring out something of the woist as­ would throw it m the wastep.iper basket, pects of human life and you can show how 'khosla report oi no Khosla repoit, this is they coexist with some ot the noblest and not necessary The Government, coming the most magnificent elements of the into the picture in an enlightened rational human chatacter mannei, can control this industry in the national interest and look after the working That was why when a Fienchman pro­ people who aie the salt ot the Indian earth, duced a pictuie ‘Oh C alcutta’, they went on whose toil depends whatever little pro­ on maktng a noise about it They do that duction you aie going to sell abroad You sort of thing But oui film masters have get some pneumatically attract i\ females to the capability in them piovided they have be pictunsed and you earn some foreign a free hand m this matter Today no exchange. 1 would not nund it in the wonder they cannot do it least Go ahead m that manner, but deep down, have a genuine policy. Open more ci­ I know Mt. Gujral has done a few good jobs. The Poona Institute is wot king very nemas—You have mng the bell Wc Jo well To some extent, the Film Hnanee not get much oppoitunity to discus* this 1 hope I am not being melevent Corporation at least is leady and willing to assist those who comc out with original MR. DFPUTY-SPF AKFR . Left to my­ ideas about production and that sort of self, I would like to hear more of it thing But that is not enough On the contrary, you have to do more if you SHRI H N MUKFRIFE I disco\ei really mean business. that on the 4th April, 1973 we were told You know I have said in this House that in reply to starred question No 605, that I have a soft corner for the Minister But the Conference of State Ministers of In­ my patience is exhausted when I find the formation held m December 1972 at New way in whieh the working people in the Delhi, attended by_ all States cxcept Tri­ cinema industry are tieated. When I see pura, recommended that the Slates should them woikmg in Tollygunge, Calcutta—I diveit a fixed proportion of collections do not know about the Bombay situation; from enteitainment tax foi promoting the my friends know it better—I see that no­ consti notion of more cinemas, and this thing is done to help them When I see was adopted unanimously. that big-moneyed intei ests who control the production, distribution and exhibition do­ Nothing has been done in regard to minate the scene, I am fed up with this this. We can have so many more cinemas. petty fogging little legislation about kissing Nothing has been done here a»so. For or cuddling or God knows what other sort instance, I find that in Bargalore city. 233 Cine matograph PHALGUNA 3, 189 5 (SAKA) (Second Arndt.) 234 Bill with a population of a little over 12 lakhs, # 5 * r w frfrg tPTi^ i ? r f d sfrft srfote there are 61 cinemas. On this account, ipniVc^ 9> ots *r? ~4$t4 4 fon? f a * t o Bombay has 87 while Bombay should have 121 more. Calcutta has 250; it ^ fe ftforcft arro f a ^ tr? could have 210 more. All over the coun­ i W k r w m sr# tnsir f m try we could have a larger number of ^ ^ an^ftw qr #mipr W ^ ^ cinemas, but they must be run properly. 3ni?>rr ^TT^Ff jfJBPT ...

Go ahead; let the State come into the ^ * t i vnanvr *hft (^ft anti*. picture and begin bv taking oict such a ^5f?TO) : ^ f v f J ^ V f t criminal concern as the MGM—Metro— how in the hands of an Indian stooge. Get a national sector in so far as the TW flfW TrV1 i ^15 cincma industry is con*cmed. Extend H'jiMH ’frf ^ wf 3TR «Ft 3TK? TO your operations; extend colour films ^1T9? f srrr srf ^gr?rr t and other facilities* to be used by difterent ^ m «r|T *fHW ^ #trr? tiicas of the coundv, and then yon will ^ hrfFf ^ ^vff^r ^pfMe fW t i t o ^ ^ ^TT 3lf? n^i 3IT5TT f^TET ^ ^FfvT FTWR §FTf I 9TP5PT ^ OTt 37^ *nT w rtf ^writ ^ sif? ^P5rrf*Tf Kt ^tt i ^ ? ?sfk?rr *rr ~c$j f 2fT?i f 1 ? sFr?rr e rff f ? ^>fsr f m m t ? TOiihr rw 4 m v ^ f h ^ sfakre 4 5R?t aift j f *ft o t fVf _A ^_.__ . •______-% fV ft ^ - _ ^ ______1 Ttercrr 37 fa ot qwfhffaq Mj<3 H ^ I * * m ^ TnrW ^rf tfi an^ ter# farof ^ r «r ®F«rr ^ tr1 sr^*? ? ^ r r ^ t t fprr jHV Nrror jrf?r n fg^Ti' t o h w f stNr t 4 4 4 f a fcrecr, arfV ftesr 'tw n ffir g ? ^ i r f ^ f ^ nfcT, rrw ^ j?f?r 5m?1 ann m * fe z «frtV arnj; # qfav? ^ Q M mr3rf ^rr s o t *r*rr ^fvrr ? #?V r v*rr m m i ^ iff? ^ sr^f f o f r w c>W crV ^ f^nr ^rif? ifs^ert v t Ttfforar ^ ^ ^ ?nm r if 5% fnr arfT mriTRr, rrer, s f r rd^ fi »r*fV, ^ iftorr *rafc'3w *sirr if -at fa T?nr t o t o # are »=Rrf?f ^ wfc t o q» sfa tr^^rr tf i o t *rc ^ fa «fh^ »nr «f^T ^ ^ ^ i W N ^ r 235 Cin ematograph FEBRUARY 22, 1974 (Second Amdf.) M l 236

c*ft rm j ^ »rfwT7 «ft to t? ^ 1 ^fSVr yer ^ f a s i m w r t tivfor mvrfi f \ m 4* 9 ^ * - ^ ft ^.. A . tW - ^ -f ., II „ _ _ - _ I ..I.--- TW fr V f T^3 W ^ t \ TifTf TOT *$01 w SfCTpTT rTTTTf t j t T * TO «Pt 5irnFW fa sw tffr $t wr t m * h * i w ? r # w mti 1 v f f a r rtt&qpi 4 h r i % nft£ fan ?ng 7 ^ ^ f a 9T srtf «r 4 *f fartm «i w *nf fmf ^ k f a w ? t o r i ^ ^ ?it ^ 3 ^ f - f a fan? m *t r t \ wm ^ far*Rfr*dtf 4 W m it\ 4TRPRT 3#R ^ W ^ 5 ^7 ^ r t ii- ^3ff * x/t«3 1 wr # Wf ST w fa » W*f *fwtf rf* I f- fa ^ faro ^snt m tft## *rr yrtahft *f M far s*f if i ^ fan? q*T^ 3*fafrT ?fwr f 1 m a f w «n *n?r *jftw *" **^rr fa faftr to # 4" ^ ^ 5-r iit Thrnr art yqfatfg to f 1 ^ s r rm tf r h f f f , wr *h ^ to ^ 1 w tt ^PT c^rTtR" *rr s*r farer sfef tf* ^Rt^far 4 ^r ir^r him' ^ m fw ^rf fanftrr ^ t r t ^ n t 3TT3T ^TTO V TO ^ 7 " ? W I ^T ^TT ^ spi ^ rr ^ «oT *fr\ ^TPTrf ^ f a F*T ^ TO t m f ® h OTfW, ^9IT ^ wnr|- 3lf? ^ f v^?n n% *ft 5 ff^ ^ f a ^ ’5TTT ?Fff ?7 55? farinTiT ^ 4 s r r ? fM if , e ffar *n#3rfar^ f t ^ farar fa ^fr r??rr ?rf to ^tt *? arnf ^rf ?rr t§!t r “, *r ?Wi, to < ftt i m fa ? TT W f ^mnr, «»f (f 7 T tW J " «FT !^ , q n p ^rpSFRT ^rVh airf T O irs t ^ ^ fafarfar srfa- ^r tr? =r# ^rrr 1 ^ ^ srriff ^Vnr arf? ^ptr 2?r r yrfr- far^ i tf w t f ^it ’e r tr r f a f r k «p t fa*rt *r tf H^rtf rstf ^ i w t f ^ spprfa !T# ^TTr tffa^r 3it farrtf ftfk ^ r FRT3T ^T ^ 5ETI«f^fR W

$*nT *r*q wvtmr (ttfm) : ^ q n ^ r * r «rtto i ?n m * r *rste«r, TTRsfter *Nt t f fa*r *fo>? antf «frr *f?V*T wt i tf*- 3Rr?rr m %rr— «m r spsV tf* jf $*m’farhr ^ c*, ?r?rtfa §*r tf1 ^ ?rw r ctffe ^rtf tr? sir 239 Cinematoutaph FEBRUARY 22, 1974 (Second Arndt.) Bill 2 40

m T&t m t f ’, f3R^ JpT ^ 3F^7 r %r % Trot ^n1 ^ afar ^^S R T f t «f>T*T-srRRl ? m ^ ftffr £ \ iM hm* rMt ^ ?r§VJ *tt £, t o ^ w i ^ w mtt#t Kwi arhi^ TO3>T ’ep^FT ct fcPIT, ???<$ tgR Tt 'qf f 1 # s* 1 ^ ^SfT 4 V m A 3TPft '^ '4 i ifST *7cT?ft «PT ^ O TW r*TTTT r ^ R *thf £, ^T-srhf-f^r ^rnn arnr ^ ^ ^r^jr tot fanrr r i ^nr Tft r$T ^TRi* OPT 5RT7 ^TTtJT 3TT TfT ^ I ^ f^OT ^ f^ , ^TvlTOri ^ IT^T?^ 4 # WT# HT*faT 3nsf*1T f a 3TFT r t f $Nr # ??r^ srrr ^ ^ ^ «r? ’^tt it ^7^ i *n? qra* ^ >3Ntt ^rfw ^"tlTS'cfT ^ ^T? SPRfJ ^TKR- f ^TfTT r*r flWf ^T ^HT ^^^TPrt m ^hrr diif^ 4 i ^ jttt r* fanrfor w* w # *tft v f r t 5T?f W f * f 3Rrfr *17 ^ P T t o ^ ar^cp? ht if*—sfiVr stiwt shrr ^ i ot ^ r^r^r fkr W fisr frrcp sstft J=r# ^ r^r f i crf^rV ?“ rft «rg^ 5rnfr w% wbft t vfo ^d^nhn- ^ ai^? y^whiw *r? ^ i arnfteraT ^ t r% ^nf i* \ ^ ^ c rT f£ ^ f 7 *rr?ft s t r ^ ^ i l« - . --. _ _i^ - ^ ... -. * . > -x. - A ^ ___ vr ^ c T BrfreFT 3T^r HFTT ^Tr ^TTO IHcT _ _ .... A ^ ___ I* fV ^ ^ L __ A .tV - VRIT «FT TV5*r I W *T 5T?T HT^IT W 4 3 ^ 3T^ ^'dT^K V apl ^ T * ff, 3TS^ -£■, afarfirqr f ' , ^ V t qrff stf srw ynroiT ^ srpf ^ r 5pi *ii-jfqprfsf ^ 7 htt?t fVeif ^ ero faRcft W ^ t i ^ aTRrr t o f a terf W w? ^ ^ ariV ^ en?f 4 r^rr-h"^i' «ut «r?f jt* is 6Mt firvirr ^ ^ grg ^ TO3>

3 R r aft ^ tr^Nrr f a vulgar tastes of the masses. This is the I % _ < > <* %!• ...... » ft basic question. How is it that these direc­ S rn m ?T SfW ^Rr tfSlf w vH%( anW tors who are technically very competent, t r n ^ w r 4 rnrar i who know how to handle the medium, $ >ft ap^rr w st fa pr fa?r ^ these very musicians who can compose the arft *ft tottmost melodious tunes in the world, these w r t ^rfarar actors and actresscs whose histrionic talents rf *THT fTO n SRT^ ^RTT fa?T Stttfare comparable with Ihe best in the world, fowtf p r s^fir if stf ^ h it o arft qnf- these people are giving us bad films ? w f ^ ^htt %ft ^ fr?r ?f ^ t It is said that they produce what is required or what is desired by the audiences. This is an argument which does not stand rea* w arft 3“ fa *rt 5T^-^ f 1 son. Did the people ask some industria­ at sfcrr ^ ^ TT^^W Rrart 4ww list to manufacture the Lux Soap ? No­ ST# ^t?TT, 4 3TT^ 3TE-*IT3 q? *TBT *f*3T e*PTbody does any demand survey. It is just < ri Ip I \5vt®f> 'TTfT 5ff t R '3’^Tthe reverse. W hen'a particular type of from his vate financier in the form t f distributor, own pocket He collects advances from in the form of exhibitor aie the immediate the exhibitors and the cyclc goes on No­ audience of a film producer. \n d what body invests money from his own pockct is the film producer9 He is a proposal- Ultimately, it is the cine-goers who finance maker and a proposal-seller The Indian the film at the window. This is the film producer does not do anything. He basic reason does not direct the film, he does not write That is why I say, libeiatc the film the film, he does not do anything in the producer or the Dnectoi or the technician making of the film. He does not even or the writer from this octopus gup of pri­ process the film. He makes certain pro­ vate finance and these very director these posals. To-day m India's film industry, very technicians and these * r, mu^-iais everything has a price If I take a parti­ v, ill give us good hlms and beautiful iilms cular actor and a particular actress with How to do that ? There aie various a particular music directoi, it has a price ways I can place a veiy conciete sugges­ So, I make a proposal «md sell it. My tion. Let the Government of India con­ immediate audience is not the people who stitute a Film Corpoi ltion of India This Will be coming to the theatres to see the Film Corporation of India shall be manned film. My immediate audtencc is the film by anybody who has directed at least one distributors. And most of these film dis­ film during the last three year* and all tributors are ignoramuses, they are idiots directors will be niembeis as also ihe and stupid people who have heard the technicians except the prodiuei because, names of Prem Chand oi Tagore They are as I have already suit, the producer is black-maiketeers, racketeer and smugglers nobody in the actual making of the films. and what not. They aie gamblers essen­ tially and they are suffering a Int. Most 15.09 h rs. of the distributor go bankrupt within a The Directors, the Actoia, the Music couple of years. Still m a spirit of gamble Directors, the Editors, the Cameramen, they enter the industry and they buy the all these can be Members of the 1 ilm films and they diUate the terms. They Corporation of India. I-et that Film Cor­ ■say, ‘No. There must be a cabaret dance poration body be democratically constituted, here.’ And the poor producer asks the let it be democratically run. Some mem­ Director, ‘You must introduce it’ and he bership should be open to anybody who has to introduce a oabarct dance. If he is qualified and trained under ccitam edu­ does not, his film will not be sold If it cational film institutions being run by it not sold, he cannot get finance. No this very Film Corpoi ation of India. 1h*s producer invests any amount, substantial shall have monopoly of making films Its money in the films. . , entire financial responsibility should be taken up by the Central Government That SHRI N. K. P, SALVfc : This is a is my submission. If such a financial res­ film man speaking. ponsibility is undertaken by the Cential 245 Cinematograph PHALGUNA 3, 1895 (SAKA) (Second Amdt.) 246 Gov ernment and if in this way they arc that are put up before the masses so that liberated from the gri|« of private finan­ they do not hurt the sentiments of the ciers, 1 am sure you will have goud fibns laymen who go and see then. in this country. That is all that I wanted lo say. I had two occasions which make me think seriously about these cinematographic and DR. KARNI SINGH (Bikaner) : 1 censorship aspects. One was this. A -welcome the opportunity in this House lor friend of mine was playing golf with me. Members to discuss the Cinematographic 1 met him in the volf club and he told me Act and other matters connected with it. that his son had comc and asked him one There is no doubt that in the las: few >curs, thing. He had a girl friend and he a&ked the Indian Motion Picture Films have whether he could bring his girl friend alon«i improved in quality. I remember, in my and could he use his house, father's house. college days, most college students con­ As adult human beings, we are concerned sidered it a waste of time to go and see with this because this is a phenomenon Indian films. But in a very short span that they are learning from foreign films. of time today you have seen that we make You cannot say that any amount of liberty some of the finest lilms in the world and can be given to film produce:* to protect we can rightly be proud of them. It has any aspect of life because it may not cor­ just been mentioned about Shri Satyajit respond with the Indian way of life* Indian Ray. I think his name is so famous that way of thinking. Another occasion was even foreigners think that they have got this. There was a theft at the National a lot to learn from his art an 1 technique. Museum and when the thief was caught SHRI AMRIT NAHATA : Please ex­ he said that he was influenced by some of cuse me for this intervention, but I have a these western films (hat glorified thievery serious intervention; the first film that Shri and crime and nil that kind of thing, how Satyajit Ray made could not be finished to steal a million and how the most ela­ because he could not find a single buyer borate modern scientific means were used and it was the West Bengal Government to break open bank safes. Now you have which came to his rescue and the fust only to go and see certain movies today, film, that is, Pather Panchali, was finished. not so much Indian films, but Western films. I do not know the reason why PROF. MADHU DANDAVATE : It such Western films arc permitted to come is not a pett intervention, it is a pretty to India. Every film that you see is con­ intervention ! nected with violence and crime. Actually 1 once wanted to write to the Minister DR. KARNI SINGH : 1 agree that very after seeing two or three foreign films. often very high standard of art can very Here what was the idea of prohibiting easily go over the heads of masses and first-class epics made in other countries very often prove a flop although in later from coming into this country and allow­ years the same film may be a great success. ing the third class murder mysteries de­ picting violence, thefts, arson, murders and SHRI R. S. PANDEY (Rajnandgaon) : killings ? I£ the youth of this country I think that that picture was a flop be­ are going to be exnosed to this type of cause another bad and vulgar picture was films, what type of a country are we going available in the maikct. to build for the next generation ?

DR. KARNI SINGH : Sir, I hold the Therefore, I feel that censorship in some view that movies ami television entertain­ shape or form is necessary. I am not ments have an educational value. There­ opposed to art. 1 consider myself an fore it is essential that Government in some amateur photographer. Tt has been my shape or form of censorship controls the hobby. 1 make amateur movie films. T type of films and television programmes do feel that art should not be smothered or 247 Cin ematograph FEBRUARY 22, 1974 {Second Amdt.) BUI 248 (Dr. Kami Stnghj 1 think you can do it. But, for that, controlled. Bat, where art gets off and you will need the help of the psychiatrists, phornography enters, that is a very thin teachers, doctor*, writers, philosopher* dividing line. I think even the Western thinkers etc. on censorship boards. I hope world which has experimented it, makes you will utilise their talent that is available the obscene phornographic films available in the country. to every ma^n who wanls to see it, are now having second thoughts. I do not SHRI VASANT SATHE lAkola) ; Mr. realty know whether it is really improving Deputy Speaker, Sir, I must congratulate their society at all or whether it is only the hon. Minister for bringing forward this something that caters to their baser insti­ Bill. Although I do feel that i’i.-s is a hall ncts. hearted measure, yet 1 feel that something is better than nothing. This will be an im­ 1 would like to make a suggestion to provement over the present censorship sys­ the hon. Minister that your censorship tem. That is why I am congratulating him. board must consist of teachers, doctors, psychiatrists not just anybody, but, people But, I feel that wc have to go to the who deal with the human mind or who very root of this problem, in the name deal with the minds of India’s youth. I of freedom, we say that films too should think they will be far more capable in be given complete freedom to produce telling the censors as to what types of films whatever they want. What is it that we are should be made available to the youth. 1 trying to encourage in this country? What am not opposed to the liberalising of the is it that the younger people want? Some censorship too. I do feel that. I would people say that it is the younger people like to see movie films and take my child­ who want to sec this type of films. Only ren and wife who will sit with me and the other day or rather only yesterday or enjoy the films. 1 mean what I call the day before, on TV they had carried a family films. I have seen some films with my sample survey. And that was shown. A adult son and daughter and have felt question was asked: ‘Young men, why is extremely embarassed. You may turn it that you sec the films ?' To this they round and say you are a prude. After replied ‘we see that because nothing better all I am an average Indian human is available.’ Even a young man does being and so I feel that there are certain not want to see any films other than the norms in which we, the inlian people, sex films in the most lurid form. 1 took have been brought up in*~ It sometimes my son with me to see the film. He later hurts us to see that norms destroyed in told me that he would not lifct*. to see such front of our very eyes, and in front of our films. I would ask Mr. Daga, would you children. As Mr. Pandcy said when we like this thing to be done by your own see such movies, along with our children, sister or daughter? Or would you like we are greatly embarrassed. Therefore, a thing to be done by your own son ? some kind of censorship is necessary. I The immoral thng is one which when done would only make an appeal to the Hon. or spoken either hurts yourself or the Minister that let him not be carried away society. by the concept of art or that kind of thing. You have to guide the nation and tell For, you are living in a society. If you the people what types of films and T. Vs. were alone in a jungle, you can do what are going to be shown to the masses in you like. If my friend Mr. Naik was this country. You have to produce films alone in a jungle and there was no other for the generation of young men and wo­ person at all . . . men of tomorrow who are going to be first-class decent human beings given the SHRI B. V. NAIK (Kanara) : I in proper conations. a political jungle. 240 Cinematograph PHALGUNA 3, 1895 (SAKA) (Second Arndt.) Bill ISO SHRI VASANT SATHH . 1 agree he SHRI N. K. P. SALVr: : Unsuccess­ 18. fully.

SHRI R. S. PANDEY : Why does he SHRI VASANT 5ATHE : What are suppose ? Suppose he is in a jur.gle, then they trying to show to the young men? what happens? Suppose a sher comes ? It was something unnatural. SHRI VASANT SATHP : If he were in a jungle he can do whatever he likes. The other day, I saw a film much pub­ The ‘Shei* would refuse to touch him. licised; Bikini on the Beach is under­ standable. But why have Bikini on the Unfortunately, sven from the point of road from Bangalore to Bombay midway view of art, 1 say that the censors have on a rock ? What i<- this sense of pio- totally failed in doing their duty. Fven portion or propriety ? from the art point of view, sexual rela­ tionship or intimacy can be depicted in SHRI N. K. P. SALVK : That is by a vcr\ artistic, civilised and aesthetic the Information and Broadcasting Ministry. manner. You do not have to depict two human beings, a young man and a girl us SHRI VASANT SATHE : What is the \ou would depict an animal, a dog and whole object of this medium ? This me­ bitch. Aesthetically there is something en­ dium in this country must encourage young nobling in n man and a woman. I have seen men or those who see them, apart from the film ‘Bobby’ and I do not agree with my entertaining them, to be creative young fiicnd Shn N K.. i\ Salve hjs said. I io men. It must encourage them for some not know if he has really seen that film. higher values to build this nation. But It is a \eiv leficshing iilni. A youi«g does it do that ? What is b-iing shown is boy and a giil come togeihcr. I do no. only escapism. What the young men can­ think there is anything to object to except not have in real life they like to see for the losing ol the key and that song. Other­ two hours in the film or on the silvery wise, v\ hat does the film try to dcpict ? screcn. This is why they see filrm. Are I am not talking of the young man and we not going to have some basic objec­ £u\ coming together, but they are trying tives ? Otherwise, wc shall be petting into to show that they elope and run away and a vicious circic and producers would their parents cannot help; they run away come forward and say ‘What can we do ? against society and against their parents. Only such types of films are asked for by the people; therefore, we must produce SHRI N. K. P. SALVIi : l'w*> minors. them and make money’. Then, you more of that type of taste nnJ more and more uf SHRI VASANT S ATI IF : If a young such things are asked for by the people boy and girl at the age of 16 and so there is moic and more vulgarity or 17 come together, there would be no­ and lewdness and violence and so on. thing unnatural in it. If it w'ere shown instead of this that the parents had &uch Again, what an amount of violence is an influence that the boy could have had shown in our films; I had fortunately some­ patience and the girl could go for higher thing to do in my college days with the education and read and then they could gentleman’s art of sdf-defcnce. known as come together, that would have been some­ boxing. I really do not understand the thing ennobling. But what does the film type of violence that is being shown in show ? It tries to encourage them by these films. A man is going on boxing saying that the best thins that should be and bashing for five minutes at the other done is to elope with his girl and then man. jumping, kicking and doing all sorts try to commit suicide . . . of things, but there is no harm at all. 62 I.SS/73—9 251 Cinematograph FEBRUARY 22, 1974 (Second Amdt.) Bill 252

IShri Va sant Sathe] PROF. MADHU DANDAVATE (Raja- With one blow yon can knock out the p ur): The contents of this Bill very clearly other man and he will never get up. But reveal that our Government is the saddest here you can go on giving blows after victim of the generation gap. The ob­ blows to the other man. ject of the Bill is to streamline the ma­ chinery so that examination of films, pro­ SHRI N. K. P. SALVE : Will he de­ vision of certificates for films for exhibi­ monstrate it to the Minister ? tion outside India and all other related problems can be tackled quite effectively. SHRI VASANT SATHE : What is the Therefore, an amendment is sought to be reaction ? In colleges, I have seen young made through this Bill to see^that the en­ boys doing this. Just to impress the girls tire structure of this machinery and orga­ they pick up a fight and they go hitt- nisation is totally changed, in a way it is ing. What are you trying to encourage? streamlined. But 1 am afraid if the ma­ Why do you allow such type of violence chinery as proposed in this Bill is accept­ to be shown, scenes steeped in violence ed and implemented, elements extraneous and glorifying violence too ? to art wilt be introduced into the film in­ s dustry in this particular process of censoi- There is another aspect. ThU is about ship. and there is nothing more dangerous the blackmarketeers and smugglers. Do to the content of art than elements extra­ you know that in most of the films the neous to ait being superimposed as a smugglers are shown as fellows, living a superstructure on the structure of art itself most luxurious and nappy and rich life. Will this not tempt the young mind to emulate them? You may say that for the A piece of art must be judged solely by sake of the story it is necessary. A man its inner sovereign values. To my mind, wants to make a film and wants to make these inner sovereign values of ait can be easy money. But what is its impact on nothing else but the sensitivity of art, the the young mind ? transparency of att, the intensity of art, the highest significance of art from the Government must lay down some guide­ point of view of expressing life as it exists. lines. Of course, there is an c\d mining If the life is ugly, even the depiction of committee. There is a revision committee. ugly life can be the most beautiful piece There is an appellate bo.ird, tribunal and of art. Let us not go into this debate then Government. In between, there is whether nudity is vulgar or something a reviewing authority. Why this dupli­ else is vulgar. In a piece of art even an cation and multiplictip of organisations ? aristocrat who has been clothed right from Why should Government not lave a top to bottom can be an expression of the committee of public men to give dear most vulgar thing in life and the nudity of guidelines ? Of course, these guidelines an A divan woman who is hunted in our have been there. Only they have never present-day society, when she is seminated been implemented. I f this is done and if and raped by an aristocrat, can be the you are strict on some films, I am sine most beautiful depiction of a piece of art. it will give better results. Such elements of rape and violence intro­ duced into the fitm might, if taken in iso­ I wish you godspeed. The only thing is, lation, appear as something crude, some­ try to see that we create and use this thing very obscene. But in the medium for the good of Ihe country, for context of a piece of art, if it the good of the people. In the name of is properly fitted in, probably even that freedom, let us not spread depravity in piece of rape or the action of rape might this country. Let us not erode the values itself reveal the pity of the audience for and moral fibre of the youth of our that victim and probably the noblest and country. the sublimest feelings of the audience can 253 Cinematograph PHALGUNA 3, 1895 (SAKA) (Second AmdU)BUl 254 be r oused. Therefore, mere nudity is not the context of the film, what is the im­ something that can be considered as ob­ pression that is created in the audience? scene and as extraneous to art. It only creates a sense of hatred for the aristocratic zamindar class of that type, Someone has rightly said that an artist and it creates a sense of pity for the vic­ expresses only the mode in which he can tim of that aristocrat. All these things conceive life at all. To him what is dumb are indicated there. is deaf and therefore expression is the soul of art. The sense of art is in the sensiti­ Therefore, things are ugly or beautiful. vity of its being in close relationship with Oscar Wilde once said that there is no­ truth and beauty. if that is the soul and thing vulgar or there is nothing the spirit of art, the expression of art is obscene. All art is either good art not to be curbed; the expression of or art bad is art. I think' even the most so- not to be stunted. 1 am afraid the type called vulgarity, if depicted in a manner, of bureaucratic machinery that you are in the context of a particular situation, proposing, the various types of liaison and may be all right. In isolation they might duplication of machinery that you are appear to be very bad. People may say suggesting, will not enhance the prestige anything about a cabaret dance. But and the contcnt of art. I am sorry to even the most vulgar cabaret dance shown say that it will bring about the stunting in a particular context, shows what and stifling of that particular piece of art type of aristocratic life one side is leading, and probably if the other side of The moralists talk so much of obscenity, the picture is put in the proper context, of nudity, of the display of sex, of vio­ in fact, even on the young mind there lence and eroticism. I must candidly ad­ cannot be any bad effect. mit in the context of the entire structure SHRI N. K. P SALVE: What do you of a beautiful art, all these things, say about the cabaret dance for money­ even a cabaret dance, even a rape making ? scene, even violence, even nudity and even Ihe so-called obscenity in that context of PROF. MADHU DANDAVATE: I am the proper liaising and perspective of that coming to that. I have been weighing art, particular piece of art, can be the my words very carefully, (Interruptions) I most beautiful thing. have been saying that all these so-called obscene things, weighed in the perspective I am giving one simple illustration. of art—all these things shown in the Many of you must have seen the classic perspective of the art—actually enhance piece of art, Sahib Bibi Ghulam, both in the situation. If there is vulgarity in life, Bengali and Hindi. It has depicted the even by showing the vulgarity in life in habit of an aristocratic Bengali of one the films, you can create some sort of particular age and he is shown with all hatred for that type of life. There are his vices. There is adultery there; there dramas and there are films, in which is violence there, there are all forms of people are shown as addicts to drugs. But violence and display of eroticism there. after seeing the piece of art, one is not Adultery is displayed there; but it is dis­ driven to that particular vice, but one is played in such a beautiful manner that driven to a feeling that something that when you see adultery there, and when was shown is a bad thing. you see all the vices there,—when you see drinking there and when you see the zamin From that point of view, my contention dar forcing his wife to drink so that he is that it is better that in the perspective of can get the vicarious satisfaction that even art, a particular event has to be judged, his pious wife has been forced to drink,— and therefore, I would'leave the judgment probably all these things may appear to and the assessment, whether they have some of the moralists as obscene, but in been put in the proper artistic perspective 255 'Cin ematograph FEBRUARY 22, 1974 Bill Introduced 25 f or not* not to the bureaucrat but to the It has been stated that in film industry artists, and on that I do not think there there is glamour, dazzling lights, show* can be any diffetcnce of opinion as far manship and everything. On the other as this House is concerned. side the industry has poverty, qualor and hunger as also the pitiable life of the wor­ In that context, I should like to come kers in the film industry. Unless we to the last point and there I shall refer achieved some cohesion between these to the objection raised. If caberet is two—the glamour on one side and pitiable shown, if smugglers* activities are shown conditions on the other side. I do not and the ferocity is displayed only in ordci think any rapport can be there, bhri Guj- to play to the gallery it might appear to ral is heading the Ministry and he has be a vulgar thing and it will be a vulgar understanding and involvement in the m- thing. All that Is happening as my friend dustiv We expected a somewhat res­ Mr. Nahata has righly pointed out. It »s ponse fiom him In 1969 vhen I dis­ only because a few private financers, who cussed the matter of formation ot the him control the production of films produce council Shii Gujral was good enough films for pi ofits, but they do not produce to give an assurance on the flooi of the beautiful pieces of art. The remedy lies House that this council would come verv in removing a mal-adjustment in the film soon. Unfortunately five years have pass­ industry. They should be completely re­ ed, but nothing has been done. Two years moved and a balance should be struck and ago, on a private Member’s resolution proper guidance should be given even for we discusscd labour relations m tl\e financial motivations. Then the moralist film industry and the I «'bout Minister will not have to diaw wrong lessons; they gave us an assurance that le g a tio n was may not have to stiengthen the censor ma­ coming Again nothing hi* b<*M done chinery. They have to strengthen the ma­ We do not know m which way the in- chinery of art Art has to became a dustiy is being tackled pivotal point of the entue machinery and not a few Government bureaucrats, m In the contcxt of *hiA Bill it is belter to which case, possibly all this controversv go into the histoiy of censoiship m this arising out of the Bill will end. My country The original Act vv^s passed in second point, therefore, is that since the 1898 in this country In 19*52 an Act machinery provided for the Bill will not wa* passed and a board of tensor-> was be able to fulfil this basic task, this House set up In 1°58 thev provided two cate­ should thiowout this Bill lock stock and gories of films (U) and (A) barrel. MR DFPUTY SPCAkFR- You may SHRI N. K. SANGHI (Jalore) This continue your speech on the next occasion Bill has given us a chance to discuss the We shall now take up Pmatc Members film industry Much of my worl, has Business been lightened by what Prof. Mukherjee and Shii Nahata said regarding the back­ ground of the film industry. So much has 15.29 hrs. been said about censorship in India tnat I not want to go into that aspcct This WORKMENS COMPLNSATION matter was discu^d by the committee (AMLNDMLNT) BILL* consisting of knowledge people under [AMENDMENT OF SECTIONS 2, 3 T lt.J the Chairmanship of Mr Khosla who took marathon evidence m this matter and that SHRI P. M. MEHTA (Bhavnagar): I committee has come to certain conclusions beg to piove for leave to introduce a Bill Theie were also certa.n Menibers and I further to amend the Workmen’s Com­ think their opinion has to be considered. pensation Act, 192^. ""Published in Gazette of India, Extra- oidinary, Part II, section 2, djfcd 22-2-74. 257 Bill Introduced PHALGUNA 3, 1895 (SAKA) Removal of 258 Disparities & Concentration of Wealth Bill

MR. DEPUTY-SPEAKER: The ques­ MR. DEPUTY-SPEAKER: The ques­ tion is: tion is: “That leave be granted to introduce a “That leave be granted to introduce Bill further to amend the Factories Act, u Bill further to amend the Workmen's 1948”. Compensation Act, 1973”. The motion was adopted. 'I he motion wvn adopted. SHRI P. M. MEHTA: 1 introduce the Bill. SHRI P. M. MEHTA: 1 intioduce the Bill. 15.31 hw. PAYMENT OF BONUS (AMEND­ MENT BILL* 15.30 hr*. [A m e n d m e n t o f s l c t i o n s 1,2 e t c .] PAYMENT Ob WAGLS (AMEND­ SHRI P. M. MFHTA (Bhavnagar): I MENT BILL beg to move for leave to introduce a Bill further to amend the Payment of Bonus [AMLNDMCNI OT Si (HONS 1, 2 etc.J Act, 1965.

SHRI P. M. MEHTA (Bhavnogai): I MR. DEPUTY-SPEAKER: The ques- beg to moie for leave to introduce a Bill tion is: fuithcr to amend the Payment of Wages “That leave be granted to introduce a Act, 1936. Bill further to amend the Payment of MR. DEPUTY-SPEAKER: The ques- Bonus Act, 1965”. tion w: The motion was adopted. “That leave be granted to introduce a Bill further to amend the Payment of SHRI P. M. MEHTA: I introduce the Wages Act, 1936M. BUI. 15.32 bra. 7 he motion was adopted. SHRI P. M. MEHTA: I introduce the Bill. REMOVAL OF DISPARITIES AND CONCENTRATION OF WEALTH BIIL 15.30} favs. by Shri K. Lak kappa—contd.

MR. DEPUTY-SPEAKER: We now FACTORIES (AMENDMENT) JBIIL' take up further consideration of the Bill (A m e n d m e n t o f s e c t i o n s 8, 9 e t c .] of Shri lakkappa on removal of disparities o lid t n m and concentr&tion of wealth. Out of the SHRI P. M. MEHTA (Bhavnagar): I two hours allotted 45 minutes were taken beg to move for leave to introduce a Bill and the balance is one hour and forty-five farther to amend the Factories Act 1948. minutes.

11 Published in Gazette of India Extraordinary part II, section 2, dated 22-2-74. 259 Removal of* FEBRUARY 22, 1974 Dispa'' tiesandCpttcentrtb 260 tion of Wealth BUI SHRI M. RAM GOPAL REDDY (Niza- Take, for instance, land reforms. Gov­ m abad): Sir, I strongly support the Bill ernment wanted to take away the surplus moved by Shri K. Lakkappa for the re­ lands from the zamindars and redistribute duction of disparities in this country. As it to the landless. Unfortunately, in somebody has rightly said, disparities in Andhra Pradesh there were agitations in India cannot be bridged even though the which all the land records were destroyed. distance between the moon and the earth Now Government are taking fresh steps can be bridged. This is the state of affairs to redistribute land. in this country. Then, when we have invested huge After assuming full control of the or­ amounts in industries we naturally want ganisation and administration in this to get reasonable returns from the invest­ country, Shrimati Indira Gandhi wanted ment. But the opposition parties day in to do a lot of things. She promised to and day out call the workers to go on banish poverty from this country and she strike which hampers production. took very many good steps. She also en­ unciated the percolation theory that the In this poor country, we are paying a wealth should How not to the highest but very decent amount to „ the worker. On to the lowest in this country. Unfortu­ an average, every worker in this country nately, the political parties in this country is getting Rs. 400 to Rs. 500 per month, are putting hurdles in the way. Their including bonus, provident fund, gratuity, only objective seems to be to obstruct the sick leave, medical leave, etc. These welJ- implementation of the progressive policies placed workers are playing havoc in the of this government. From the day they country. In the Railways, in the L.f.C. in lost the elections they have started this the Indian Airlines, the employees arc well- agitation in this country. In other coun­ paid. Their wage amounts can be com­ tries when a party is elected to power pared with those of America and other because it has got the majority. :t is allow­ places. But still these people are not ed to pursue its policies for the next four satisfied and they go on strike. The and a half years. Only during the remain­ Government wants to deal with these ing six months they start criticising the people firmly. There also, in the matter government because the election is fast of removing disparities, these people are approaching. In this country, on the coming in the way. other hand, the moment the government was in office the opposition started agita­ tions on all conceivable grounds. They As regards the foodgrains distribution, started indulging in gherao and violence. the Government wants to give cheap grains In order to indulge in violence we do not to the poor people in every part of the need a large number of people. One per country. But it is the Opposition parties cent or even half per cent of the popula­ which are creating trouble and they are tion can create disturbance in this coun­ creating trouble on the transport side also. try. There are a handful persons who are going on strike and coming in the way. That is We have witnessed disturbances in why there are disparities . . . Andhra Pradesh and then in Gujarat re­ cently. If the Congress Party failed in discharking their responsibilities, they take MR. DEPUTY-SPEAKER: There is a full responsibility for it. But the other disparity between what you say and what parties should allow the majority party to the Bill says. function effectively and implement its poli­ cies. If there is any failure in the imple­ SHRI M. RAM GOPAL REDDY: mentation of progressive policies in this There are disparities and we want to do country, it is on account of the obstruc* away with them. Nobody has got any tionist policies of the opposition parties. quarrel with spirit behind the Bill. But t 261 Removal a t Disparities PHALGUNA 3, 1895 (SAKA) and Coneemra- 262 tion of Wealth Bill it is the implementation side of it which not agree with certain words, the language, is more important I am speaking about used by him though I support the spirit that. Unless and until the Opposition be­ behind the Bill. haves in a constructive and responsible manner, there will be little implementation. In the last few years, both in this House For that, the Government need not be and outside in the country as a whole, blamed. That is why the Government has much has been talked about the disparities programmed that every family in this in wages, the growth of monopolies, the country should have at least one person concentration of wealth in a fewer hands employed in a Government Department, in and all that. As far as I am concerned, I a factory or somewhere. In that way, we think, I have heard several speeches made can reduce disparity. in this House and also outside. But what has been the result? During the last 25 Moreover, huge amounts are concent­ or 26 years of our freedom, it has been rated in a few people and these people are admitted by the Government, there has playing havoc with the black money. The been a huge concentration of wealth in the Government is doing its best to unearth hands of a few, a huge concentration of the black money. The black money, as black money in the hands of a few and you know, is a child of the Second World that the disparity in our country between War when there was scarcity and the different sections of the people, between people were hoarding articles and selling diffeient strata of the people, between dif­ them at double the price. That is still ferent classes of the people, has grown going on . . . enormously. Take, for example, the ques­ tion of wages. If we compare the wages MR. DFPUTY SPEAKER : There or salaries of the lower scale employees should be a limit to the disparity between working in a factory or an establishment vhat you say and what the Bill says. and the wages or salaries or remuneration and perquisites enjoyed by a Managing SHRI M. RAM GOPAL REDDY : One Director or a specialist or General Ma­ moie disparity is that there is a disparity nager, we will find that the difference is between one type of worker and another 100 times or even 150 times. Even in the type of worker. That disparity has to go. Central Government or State Government, The Government employees now-a-days arc if we compare the salaries of the highest threatening the Government now and then paid, the ICS or its tribe IAS, and of the to go on strike. Out of a total Budget, chaprasi, the Class IV, we will find that the Government employees are getting the disparity is ten times or 15 times or about 70 per cent of it and hardly 30 per 20 times. This has been the legacy of the cent is left over. That is why I appeal to British days and Government has not made the Government that they should decide any serious attempts to do away with this once and for all that there will be no in­ disparity in wages between different cate­ crease in the pay of Government servants. gories of employees. In the labour move­ The difference between one wage earner ment we have all pleaded for a differential and the other wage earner should not be wage system so that there is a category- more than 10 times. wise difference in wages but at the same time not a vast disparity between different DR. RANEN SEN (Barasat) : Mr. scales of pay; that is why we call it a Deputy-Speaker, Sir, I am in agreement differential system of wages—keeping in with the spirit of the Bill moved by Mr. view the egalitarian outlook. This is the Lakkappa though I have some objection first point to the words used by him, namely, that he wants conversion of big industrial and Secondly, it is not denying the fact— business concerns into cooperatives manag­ in fact, in this House this has been dis­ ed by all for all. That is why I say I do cussed—that in 'spite of the pious declara- 1263 Removal of Disparities FEBRUARY 22, 1974 and Concentration of 264 Wealth Bill [Dr. Ratten Sen] on a resolution moved by Mr. Hiren Mu- tion made in. the First Five-Year Plan and kherjee but that was defeated. But the Second Five-Year Plan, there has been even then, starting from such a position, a serious growth of concentration of wealth you should take over some of the industries in a few hands. The Mahalanobis Com­ which have a commanding height in our mittee, the Sarkar Committee and the other economy. Otheiwise, what will happen? Committees have found out that quite a However much we talk about the concent­ huge percentage of the total wealth of the ration of wealth and other things, nothing country is now concentrated in a few will happen m the country unless that first hands, in a few houses. The Government step is taken. has admitted and that is why the Govern­ ment have introduced the Monopolies and Secondly, the Government should take Restrictive Tiadc Practices Act. hven then special measures to really cuib or control this dispaiity grows. Does it grow due the big business that is mlmg to-day in to strikes oi gheraos 0 No. This grows our country. It is an admitted fact. That due to the wrong policy of the Govern­ the Government will admit and Mr ment being pursued ior the last 25 or 26 Ganesh will also admit that tc day one of years. Therefore, the country has to seri­ the main leasons for these high prices em­ growth in a vast country like ours. inent as far as the spirit of the Bill is con­ cerned and as far as the objectives which It is now accepted by the largest body he wants to achicve. He is a very militant of opinion in our country that the large member of this House and he has lot of scale industrialisation based on heavy in­ experience, he has been working among dustrial growth is the basic foundation on the people of this country, and naturally which industrialisation and development this question of disparities which are theie can take place. Jn a vast country like has disturbed him and he has come up India, we have certain commitments to our with this Bill. people. We have certain national objec­ tives. We have an international attitude Having said this 1 would like to point and policy. Therefore, it is very necessary out that there are certain features of the that this country stands on its own legs Rill which we have to consider. For the and becomes self-reliant. This is abso­ benefit of the House, I may point out that lutely essential. Industrialisation based on the major point in his Bill is that industrial heavy industry or based on core sector is units and business conccms with a capital fully justified. It does not make a dif­ of Rs. 5 lakhs or above should be convert­ ference between the public sector under­ ed into cooperative societies, and the takings and the pri\.»tc sector undertakings. owners and partners and labours and staff The hon. Member vants that all concerns should become the owners and members with a capital outlay of Rs. 5 lakhs are to of such a society and the other connected be converted into coope? atives. In the matters therewith. I may say that this course of his eloquent speech he gave cer­ particular approach of him, of converting tain figures with regard to disparities, con­ the business concerns into cooperatives or centration of economic power, wage dif­ cooperative societies will not achieve the ference between the minimum and the desired objective which he has in his mind. maximum and various other factors. There are also certain constitutional safe­ Since he quoted from the governmental guards as far as this Bill is concerned. I record itself, there is no difference of opi­ may just indicate what these arc. nion or dispute about it. This is a reality in which we are to-day and it has been Firstly, Parliament is not competent to recognised by Government itself. Govern­ enact saying that all industrial units and ment has set up the Monopolies and Res­ business concerns should be converted into trictive Trade Practices Commission. It cooperative societies because Entry 33 of has taken various other steps. In respect the Concurrent List is there. Trade and of planned development certain distortions commerce is within the States’ jurisdiction. in our economy have taken place resulting Production, supply and distribution of goods in disparities. They are still continuing. 267 Removal o f. Disparities FEBRUARY 22, 1974 and Concentration of 268 Wealth Bill [Sh ri K. R. Ganesh} means of reducing the concentration of Concentration of economic power in a economic power. 1 heard an hon. Mem- few hands is also continuing. There id no w^° *8 not here at the moment saying difference of opinion in that. My only *^at this was beyond the capacity of the point is : what is the strategy that we have present Government. In reply to him I to follow? Should we be self-reliant by may say that this Government has shown industrialisation alone ? Simultaneously, the necessary political courage to nationa­ we have also to bring about reduction in lise many industries. This is a reality. disparities in income to the extent possible We may not be in a position to go the in our own conditions. The bill suffers whole bog as the hon. Member Dr. Ranen from one grave infirmity. He speaks about Sen wants us to go, in the present econo­ industry; he does not speak about land. mic situation in which we are, having ac­ Land is a very large sector in which cepted some role for the private sector in wealth is there. As a Parliamentarian of the economic development of the countiy; repute, he should know that the basic and within the Iramework of parliamentary problem of the Indian economy to-day is democracy which we have accepted we land reform. Without land reforms it will may not be able to go the whole hog with not be possible to solve many of the prob­ it. But 1 do not think that it is a lute lems that our economy to-day is faced oj correct assessment to say that it is be­ with. Some of the great difficulties with yond the capacity of this Government, be­ which we are faced aie not only in in­ cause from the verv day this Government dustries but also in land. A large part of has come into powei, its piimary objects e wealth is in urban propci ty As far as has been to put the public sector into com this Bill is concerned, thcie is a large body manding heights and to have planned deve­ of acceptance in this country that these lopment of the countiy Wc are now on disparities have to go the threshold of the Fifth Wan It may urn into difficulties, but that is a separate 15.39 his. aspect of the mattei. But a Rs. 53.000 [Shri Vasant Sat he in the Chaii] crores plan has been prcpaiod and various other elements which are part of the Tifth There has to be a levelling up ot the Plan have also been gone into As ie- wages and salaiies and concentiation of gards the core sectoi being provided with economic power. It has to be reduced necessary resources, foieign resources as to the extent possible The point I was well as capital equipment and all that, a trying to make was this. What is the serious discussion has taken place, as every­ strategy we will have to follow. The stra­ body knows, and we have entered into an tegy that the hon. Member has given is economic agi cement with the Soviet Union, the conversion of companies into coopeia- according to which it looks as if this part tives. This stiategy, I must submit with of the core sector of the Plan will be all humility, is an utopian strategy and it taken caie of and we may not have to go does not take into consideration the rela­ tound the world abegging as far as this tive economic situation that exists in this aspect is concerned. country to-day. Though his intentions are good, the It was not coriect foi the hon. Member strategy of having a cooperative organisa­ to say that it was beyond the capacity of tion in a latge country like India will not this Government to nationalise For, na­ reduce the disparities that exist to-day. tionalisation has taken place in this country Very recently, nationalisation of 11.00 Inw. banks was there and that brought about Then, what should the strategy be ? a churning in this country and it brought One strategy which Dr. Ranen Sen had in­ about new political attitudes and a new dicated was rationalisation of all big in­ political thinking. Again, general insurance dustries, foreign as well as Indian, as a has been nationalised; coal mines have 269 Rem and of. Disparities PHALGUNA 3, 1895 (SAKA) and Concentra ■ 270 tion of Wealth Biil bee n nationalised, and various other things ing these objectives, not only the collec­ have been nationalised. This will show tion of revenue but also at tacking the dis­ that there is no hesitation and there is no parity in income, probably the full impact lack of political courage as far as this of the taxation laws will not be felt. Government is concerned to nationalise any industry if it is necessary in the in­ terests of the national economy to do so. Then .there has been a continuous em­ phasis since the budget of 1971-72 when I may say that the strategy which Go­ the Prime Minister as Finance Minister vernment has been following, which is initiated it and it has been followed up in open to correction and which is also open subsequent budgets—on what is known as to change is that through planned develop­ social investments. There have been va­ ment, we try to bring about industrialisa­ rious social investment programmes like tion and industrial growth, increase produc­ nutrition for children, rural water supply, tion and simultaneously reduce disparities social security for industrial workers, in income. Then, we have been using schemes for rural employment, special fiscal measures. The taxation system being employment programmes for both the edu­ what it is—as everybody know*, a section cated and uneducated, extension of pri­ of ihe House as well as n section of oni- mary education, rural house sites and so nion or thinking in this countiy siiys that on. These were stalled in 1971-72. A it is a \e i’' confiscatory system of taxa­ budget provision of Rs. 125 crores was tion—it hus been devised to mop up the made in 1972-73. These have been car­ surplus that is generated in the hands of ried foi ward in the last year's budget. the affluent sections and if it is fully imp­ There is a special programme for gene- lemented, it will bring about a tremendous lating employment among educated youth. amount of reduction in disparities. 1 am The nationalised banks have been theie. quite conscious of the fact that we have In spite of the criticism of the banks, the not been able to reorient the entire taxa­ tact is that they have been geared to the tion machineiy to achieve this objective. achievement of the desired objectives. More As you are aware. Sir, the Taxation Laws credit is now available to the priority sec­ (Amendment) Bill is before a Select Com­ tors, the agricultural sector, self-employed mittee, and linked with it is the question youth, small scale industries and various of the reorientation of the entire machinery othei things. While making this statement, of taxation to achieve this objective not 1 am also conscious of the fact that the only of collection of taxes but also of banks have also to vigorously pursue these achieving the desired social purpose and objectives to achieve the targets set national objective, namely of reduction in disparities which can be achieved if the present taxation system is fully imple­ Then theie is the role of the MRTP mented, and tax avoidance and tax evasion Act The licensing system has been used and black money is attacked frontally and to see that industries are taken to areas an assault is made on that. indicated by Government, areas necessary to be developed in the inteiest of the The taxation system itself has been devis­ national ecoi\pmy. There has been a con­ ed to achieve these desired objectives. I tinuous expansion of the public sector. have figures to show—I do not want to take up the time of the House this subject has been discussed many times—how at a par­ Recently, theie was the takeover of the ticular level income becomes counterpro­ wholesale trade in wheat. There is now ductive, how at a particular level of wealth a question before State Governments of and property, it becomes counterproductive. having a ceiling on urban property for But I concede that unless the taxation which a draft Bill is being considered at machinery is oriented to this task of achiev­ the highest level. 271 Remol'a! of Di.1parities FEBRUARY 22, 1974 and Concelll ration oi 272 Wealth Bit( [Shri K. R. Gancs h] involve the workers' movement itself tak- These are the various steps Govemment ing a stride and becoming the defender have taken in the direction of achieving of the public sector as the conscientious economic growth and self-reliance. 11·orkers in their movement are feeling today. It will involve a ch ange in the MR. CHAIRMAN : H e may also deal th in ki ng of th e management. and it will with a point raised in so.me of the speeches in volve a change in the thinking of 11hat about co-operatio n of al l for all-1 think is known as the bureaucracy. Therefore, that was the term u,ed in Sh ri Lakkappa·s it is a total change that will have to take Bill. H e may deal v. ith the aspect of ph1cc before the full impact of the wor- t<1king the wo r~ e1s' co-operation in mana- ke rs' participatio n is realised. \Vorl;e1 s' gement. participatio n wil l not only hay~ to be at what is known as the works co mmittee SHRl J( . R (ji\NESH : 1 1.\i\l e ndea- level but it will also have to be at th,; vour to do that. T was tryin g to in dicate decision-making level. Then only p~•rti­ th at these various steps have been taken cipation wi ll become effectii'C ™ s Bm *■ on « has caused an explosive situation in this V***0® of economic P0,icy and P in in g country. which is covered under Entry 20 of the Concurrent List—Economic and social I will refer to another adverse effect of planning Wc have got a federal charac- the concentration of wealth. The mami- ter We have also got the Conciurent facture of car is concentrated in the hands List There are ample powers with the of a few industrialists. The manufacture Central Government to direct the State of spare parts and ancillanes is controlled Governments to establish such a societj, by their close relatives, sois-in-iaw oi to transform the system that has been prc- brothers-in-law. They produce sub-standard vailing in this country, and remove the material and the result is that the entire disparities Therefore, there is nothing machinery of the car is deteriorating day wrong m it. There is no legal defect so by day. far as this Bill is concrened. This Bill can Even to introduce a change m the Com- ‘" T 't °0V'“ " t T tltution we have to wage a battle because “ p*ed bty * e ^ su*’f '' of the opposition of these reactionaries. ” a,,e/ °f ‘he B,H “ f .v'red undor tm ,y Whenever we try to bring in progressive 20 of the Concurrent List measures by amending the Constitution, Th(J Bju a,SQ embodies one of thc they oppose it. Directive Principles of State Policy, arti- That is why I suggest that at least 30 cle 39 (b) of the Constitution which states per cent of the concentration of wealth that both the Union Government and the should be minimised until radical measures State Governments should dnect their are brought in. T am not suggesting that policy towards securing th it the ownei- everything should be converted into co- ship and control of the material resources operative societies. For that we shall have of the community are so distributed as to fight a legal battle and pass a legislation best to subserve the common good This is in this country by democratic methods I the Directive Principle which adorns our am suggesting an easy solution My friend Constitution. If it is not implemented, says that there are defects in my Bill. I what is to be done? It is the responsi- agree that it is not perfect. He has ques- bility of the Central Government to see tioned the legislative competence of this that it is implemented The material le- Bill. This Bill only says that industrial sources of the community should be dis- units with a capital of Rs. 5 lakhs and tributed so that the weaker sections of the more should be converted into cooperatives community get economic and social justice of the owners, labour and staff. in this country.

Let us remember that 40 per cent of This is a socialistic measure of welfare the people of this country are agricultural and it is within the legislative competence labourers who are getting only Rs. 1 to 3 of Parliament itself. In an Emergency, a day. Similarly, a class IV employee in the Parliament is empowered under article an industrial concern gets only Rs. 50 to 353 of the Constitution to legislative on 277 Removal of. Disparities? PHALGUNAk 3, 1895 (SAKA) and Concentra- 278 tion of Wealth Bill thes e matters. They can take up these Thi s Bill does not attract article 117 of issues which are very necessary and essen­ the Constitution which requires the recom­ tial to establish such a society. There is mendation of the President for introduc­ no question of any defect in the Bill so tion of the Bill in the Lok Sabha. This is far as the legal aspects are concerned. a very simple measure. It may take some time to achieve the ultimate object that Sir, for every legal battle, you must we want to achieve. Do you think that a have observed, as a very active Membei in hungry nation can wait till that time the House, you have to face the reac­ comes, till all the legal battles are fought ? tionaries who come in the way of progres­ Let us establish a socialistic society imme­ sive legislation. Even in the case of Bank diately and see that the control of the nationalisation, you know what happened. economy by a few hands is removed, as The nationalisation of Banks is only in a first step. We have to go further also. name. We have nationalised the Banks. I agree with Mr. Ganesh that this is not Whose photographs have been put in the a permanent solution. What I am asking Banks ? Still the photographs of owners is this: as a first step, we may have of Banks are put there, not of the Prime this... Minister who has changed the system of our society. This is the first time, she MR. CHAIRMAN: On that agreement, has changed the system of our society. I think, the hon. Member may conclude. She has said that there is to be eradication of poverty. But what do we find? We SHRI K. LAKKAPPA: Unless the find the photographs of the owners, Minister for Company Affairs also replies the proprietors, of the Banks there. Most to this debate, it will be incomplete, be­ of their relatives arc working in the Banks. cause my Bill attracts the attention of the T want to know whether after the nationa­ Minister for Company Affairs also. The lisation of Banks, the Government has debate that has taken place concerns the changed the feudal character of the Banks. Minister for Company Affairs also, and un­ The same people are running the Banks less he replies to the debate, it will be even after the nationalisation of Banks. incomplete. You have got ample power, Mr. Chairman. Anyway, I will leave it All these industrial units should be con­ to your discretion. Most of the hon. verted into a cooperative society without members who participated in the debate giving any compensation because all the have agreed with the principle of the Bill. wealth belongs to the nation, the society. Hon. Minister, Mr. Ganesh, has also The people who produce wealth should agreed with the principle of the Bill and get into the ownership, the collective owner­ has promised on the floor of the House ship. This is the first step to be taken. that he would do something better, he would take a serious note of this. In view There are many obstacles which come of the assurance given by Mr. Ganesh, I in the way. After the taking the over of would like to withdraw my Bill. the wholesale trade in wheat, the vested MR. CHAIRMAN: The question is: interests are creating difficulties. Same is the case with the taking over of rice trade. “That leave be granted to Shri K. The administrative machinery that we are Lakkappa to withdraw the Remo­ having is a coterie of IAS and ICS officers. val of Disparities and Concentra­ Unless article 311 is removed, it will be tion of Wealth Bill” very difficult to implement anything in the country. So much protection has been The motion was adopted. given to the very people who have got feu­ dal character and who are opposing SHRI K. LAKKAPPA : Sir. I withdraw socialistic measures and socialistic ideas. the Bill. 279 Railways (Aboli- FEBRUARY 22, 1974 Casmt Labour) 2*0 tton ot Bill 16*33 bn. **** * frr ^ ^ i r r o f t RAILWAYS (ABOLITION OF CASUAL TW &tt*t if i *t fa®n& *nair?r t o t LABOUR) BILL TOt £* $ £* srtV ^ t? wz fspf «n^s far rnwmn TOT T7 ?tt i V?rif ii4, f^ r jtto ^ -M M ^ ft ft - % . - — - --- sft, Jh irem r f a hTWcTH c an7 Mi M^l *> l HI s r t w t 4 w r *nrrei £ rtf TvWT 7^ WT ^3TT ^ I 3ff STT^ *pt t ?r^r ^ r v f ^ o t ^ efM £~ \ s ir rhrprT ^ r r £ ? ^ & ^tpt ^ srr# £■ 5 ^ r te r ^ p t £ " fa ^1^ 1 ’ 4 w r r ? n m ^ trrsr m r £ i o t w & r r? i to 35*ft anrpf #^r £ f a 4 fa ? fa *rsft ttf*- fa-tfreflsr ^ s rr^ r t? ^ r v t fenr £~ erf? o t tojA w * r a M *>t *for-«fhr srft ^fhr^fhr * tft ^ n r & i4 &R w ? sfo arf? ? w f ft anra* 3^ tw *f i a?m rf ^ V1 ^ r 9T|Vir ^rir *r# m m t * gterefta' £ ? w ft srwft 9n4 st*rt ^ ?ftr f*n?r Vs# i ^ LT Y Ll ^ artf fwr *mrr ? ?*

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*lfaw smr tf «i»r spr if* *ft ?*r f»nr to end their sufferings. That is why I say they have given repeated representations to V t arwr w»ir* tf11 Tnfh; ^ the highest officers. I do not know what a w f w f < rs w qwr I is the internal circular issued by the Rail- way Board or the Minister but their appeals MR. CHAIRMAN: Motion moved: are not granted. That is the situation. They “That the Bill to provide for the abo- will be compelled to follow the locomen lition of the practice of employing if you do not do this now. You think that casual labour in the Railways be the casual labourers are distributed through- taken into consideration". out India and so you are unable to hear their grievances. If you go on allowing SHRI S. P. BHATTACHARYYA (Ulu- them to be casual labourers for ever, I am heria): Mr. Chairman, Sir, I fully support sure their capacity of tolerance is bound this Bill brought forward by Shri Kachwai. to come to and end. This you must under- Casual labour are suffering for a long time. stand. And the issue has been before the Govern* ment. Repeatedly it has been brought to Before such a situation comes about, with the notice of the Government. It seems his rationality and reasonableness and his no solution has been found till today. Is proposed and declared policy, the hon. Shri Kachwai’s tone, the suffering such as Minister must give permanency of service cheating and exploitation of the casual to the casual labourers and thereby set an labour throughout India is almost similar. example to the other industries. Otherwise, Money is taken by gang men or head of how can we stop this system in other the group. And the P.WX also shares the industries, such as the jute industry, for money because the casual labour are re* example ? There are about 2.50 lakhs peatedly to be appointed and dismissed; of jute workers in West Bengal, and about because they are casual, the money is reach* 50,000 in UP, Bihar and Andhra, making teg the hands of these people. I find that a total of about three lakhs. The jute Hie casual labour are in extreme difficulty mittowners are utilising badliwalas and not and they are working for years together permanent workers. If the railways keep without being made permanent. There was badliwalas or casual labourers, how can we « memorandum given to government as compel the jute millowners to give them Also by our friend, Shri Samar Mukherjee permanency of service? So, Government to the Prime Minister about the difficulties must set an example and give these casual •caused to the casual labour. In Bezwada, labourers permanent service after they have for example, thousands of women labourers worked for some specified time, if they are -ate working for more than 10 years and found capable. I hope Government would *heir wage la less than the minimum wage take this up seriously. Otherwise, it will prescribed ucder the Minimum Wages A ct only prove the Insincerity on (he part of the They are paid Rs. 170 per day instead Government in regard to their declared o f Rs. 3 per day under ft* Minimum Wages policy. Act prevailing In Bezwada (Andhm Pm* 4esfc). How long are you going to allow With these words, I support this BiU. Railways {Abati- 5, 1805 (SAKA) Casual labour) W , 285 PHALGUNA Hill ' tion of DR. RANEN SEN (Barasat): I sup- is left to the district administration to port tikis Bill which has been moved by determine what the minimum wage In a Shri Kachwai He has very eloquently and particular area should be. The salary of sometimes irrelevantly spoken on this Bill* these hapless workers, the casual labourers, but I accept the underlying spirit and prin- is guided or determined by the Minimum ciple behind the Bill. wages that prevails m a particular area.

PROF. MADHU DANDAVATE (Raja- We find in the railways a uniformity pur): Is he supporting him relevantly or of wage scales. I am not discussing the irrelevantly ? question whether it is good, bad or in- different, but there is uniformity of grade DR. RANEN SEN: Both the relevant and scale whether a worker is working in and irrelevant things. the Western Railway, Eastern Railway, Southern Railway or NEF Railway. But MR. CHAIRMAN: Irrelevance will be in regard to casual labour, there is no out of order. Let him stick only to rele- imformity of wages which is appre- vant things. hensible thing. The Railways have not considered it fit to see that the casual DR. RANEN SEN: Irrelevancy was labourets are paid uniformly throughout not out of order when he was speaking. the country.

MR. CHAIRMAN: It would not be The second facet of it, as Shri Kachwai unparliamentary but out of order. So, let has told us—and the Minister himself him 2»tick to relevance. knows probably much better than many of us about it—is that this casual labour DR. RANEN SEN: The railways system is a breeding ground for corrup- employ nearly 15 lakhs of workers, and tion. Absolutely, corruption in two senses. out of them, as far as 1 am aware, four Just a day or two before the six-month lakhs, and not five lakhs as the hon. period is over, they are sacked, and then Mover has said, are casual labourers. In after a few days again admitted. This is 1968 there was a Bill in this House called a sort of corruption. The Ministry evi- the Contract Labour (Abolition and Regu- dently encourages it among the officers. lation) Bill, and it was referred to a Joint Committee. As a member of the Joint Secondly, it is also known to the Minis-

Committee 1 had the opportunity to visit ter that while appointing them afresh, a

several places including several railway certain amount of bribe is taken by the

centres. Along with contract labour concerned officers who recruit them. This

we found employment of a large number goes on. I met some casual labourers in Bombay who claimed that they have been of casual labourers also, throughout the working as casual labourers for the last railways. The abolition of casual labour 20 years. One of them had become a has been debated upon in this House al- little old. He said that probably he would ready and all the railway trade unions have never become a permanent labour in the appealed since a long time to the Railway railways. After death, I do not know what Ministry to abolish this casual labour is the permanency left. So he would die system* as a man without a permanent employ- ment though he has served over 20 years The casual labour system has seven! in the railways as a casual labourer. facets, one of which is that their salaries Or wages are guided by the Minimum There is another aspect We have seen Wages Act. The Minimum that casual labourers are employed in cer* wages differs from place to place, and tain jobs which axe of a perennial nature. even Inside a State it differs from area to I would #ot have pleaded for certain typos area. As the hon. Mover has said, It of workers who are doing a job which 2 tf JMwqw

That is why I say they arc doing a job the Government may not accept this pro- %

which is more or less of a permanent or posal as part of the Government Act m perennial natme. So fiom the point of on appreciable or foi eseenble future natural and social justice, the system of Sir, one of the interesting sidelights of casual labour must go. If the railways this debate today has been the fact that spend a few more lakhs and employ these the Bill biought forward by a Member of workers who have acquired some* ex- the Jansangh Party has been supported by perience, specially when the railways are two leftist parties, the CPM and CPI, expanding, these workers can be fruitfully rightly because they find in this particular utilised in the service of the railways. Bill some of the basic socialist stance for Therefore, I would plead with the which obviously these two parties and Minister; Shri Qure&hi, to have a little some of us, although Independents, also human approach and look into these cases stand. with an attitude of social justice. This debate incidentally also gives us an 17.00 hi*. insight into the valuable Friday that we Sir* once, when I was a Member here enjoy in terms of the Private Members' of the Railway Consultative Committee, Bills and Resolutions, in the sence that this question was raised and before that, although hon. Members of this House this question was raised in the Labour belong to different parties—and some of Consultative Committee. I think the them may not belong to any party—and Labour Minister—I forget the name of they hold different views, yet, in the midst the then Labour Minister—had in principle of those differences, there are areas of agreed that this system of casual labour agreement, and this Bill is one such should go, but then be said that since this example for an area of broad agreement. cwual labour system is prevalent in the I am glad that Shri Hukam Chand Kach- raways, he must consult the Railway wai is finding support from different sec- Minister and then make some recommenda* tions of the House. tion. What consultation took place between the two Ministers, we are not aware of. But I do hope that my esteemed and know- It so transpired that nothing happened in ledgable friend, the Deputy Minister of ttgard to this question of casual labour. Hallways, will not take this debate as one Therefore*' I would plead again with the more such debate on a Private Members' Minister tb take into consideration this day wherein in a thinly attended House, 289 RattwiyM ( A M - PHALGUNA 3,1895 (SAKA) ObsmI jUjtour) 290 don of

Member* who are interested speak with prestigious and non*prestigious, useful and knowledge and with competence and with the not so useful, in the railways, are so concern lor the subject on which they are necessary and worthwhile and that they talking, and then leave it at that. I hope bring welfare to the people? la other he will see to it that these ideas expressed words, my point is that it » no use saying in this august House, which carry weight that, because of financial implications we behind those ideas of millions of people will not do something which is good. Un- whom we have the honour and responsi- fortunately, this idea does bother not only bility to represent here, are implemented. the Minister of Railways but many other

Simply because some of these views and Ministries of the Government. They want some of these opinions and comments are to have prestigious projects. For instance, reflected on the iloor of the House on a why should they have so many five-star day like this, it should not make the hotels in the country in the name of

Government treat these views and com- development of Tourism? A developing ments in a light manner or in a not serious country must use its resources in a judi- manner. I hope the Government will look cious way and there should be some kind into this question as well. of priority. This is one such area which should get priority and the casual labour in the Railways must get his legitimate

While I say, so, I am speaking not only dues. “with regard to this Bill but in regard to many such Bills which inevitably spotlight some of the pressing issues affecting our When one looks at the condition of public life and to which pointed attention these casual labourers and the manner in is drawn on the floor of the House, so which they are employed and the kind of that the Government may sooner or later corruption that goes into it to which a

—and we hope sometimes sooner than reference was made by Shri KachwaT and later—put those ideas into legislative en- Dr. Ranen Sen, we should really call it actments. condemned labour instead of casual labour. They aie condemned in more than one sense. You are asking them to This Bill is simple enough. It is short do work which you know is of a perma- and clear and it brings out in a pointed nent nature, while you still call them way one unfortunate phenomenon that we casual labour. This is a travesty of the see in our country, especially since Inde- situation. You deny them their legitimate pendence. So many ideas have been put due of gratuity, Provident Fund, security into the Preamble and Directive Principles of service and other benefits to which of our Constitution. We say we are loyal confirmed employees are entitled. This is and faithful to the Constitution, but when an example of the subtle and open form it comes to implementing them we do not of exploitation by a Government which seem to go into the direction of imple- talks in terms of socialism. I am one of mentation with the speed and sincerity with those who support the Government when which we ought to go. When you want it goes in the socialist way, the progressive

to do a certain thing which involves a lot way. Why should they tolerate this kind of financial expenditure by Government, o f exploitation ? This is a very bad And even the most progressive Government ugly form of exploitation. You call them would think twice or three times or even casual with the full knowledge that they four times, because it means finding more are not casual. revenue. A developing country is bound

to have a limited revenues. ’ So there is But you call them casual labour merely

always a question of choosing among the becwrid you want to avoid certain res- different alternatives, and there is always ponsibility which wfll arise, which you

the possibility of saying that one should ought to fulfil. Therefore, I would sug-

do this first and that afterwards; Can gest that the practice of employing casual the hon. Minister say that all the projects, labour for yean together with the ftill 391 Soflw ^j FEBRUARY 22. 1974 , £a«*» »*

tSbri P. G. M m h * 4 Finally, if we want fair play and social / justice to be the hatfmaifc of our teg***- knowledge that they **« grins to be con- tion, of our tfrfrdfog and our doing, then tiauously ib m , till they retire of die, is such a Bill should not be the effort On a system which Is hundred per cent out the part of a private Member, ft non-gov- of turn with the idea of a welfare state. ernmental member, but should be the en- deavour of Government themselves. They X am not suggesting the welfare state should come forward an saty that they are Idea of the good old days, of the pre- going to do away with some of these prac- second world war days* when Lord Beve- tices. ridge in England tattpd about a welfare state in the famous Beveridge Report of With these words, I wish to congratulate every Briton being looked after from “the once again Shri Kachwai. I hope that cradle to the grave”. I realise that we in this Home will pass this Bill unanimously this country* at this stage of our develop- if only to show that all sections of the ment, cannot afford such a security being House consider such practice as both given from the cradle to the grave. But unfair and unjust. Finally, 1 am thankful people who are employed for years to- to the Chair for not ringing the bell. gether in the same job should at least get permanency, as they aie getting perma- MR. CHAIRMAN: He can have all nency in other employments. the time he wants.

I feel that we must not look at this SHRI P. G. MAVALANKAR: Then, problem only from the human angle and Sir, with sincere thanks for allowing me the humanitarian angle, which aie of to continue, may 1 say one or two more course important. But I want to ask: is things before I sit down. it morally justifiable, politically pardonable I am very grateful to you for giving for a government which says in one elec- me some more time. tion manifesto after another that it is striving for the removal of poverty and In the Financial Memorandum, it has inequality to continue this practice ? There- been estimated that a recurring expenditure fore* if you want to do what you talk, of about Rs 50 lakhs annually is likely this is one area where you can really to be involved for this purpose. I would exemplify it. To begin with, you can like to ask * Is this a big amount ? When say that those who have put in ten years the Railways are spending crores of of service and more would be made per- rupees . . manent, because it would be difficult to make all of them permanent at the same THE DEPUTY MINISTER IN THE time. MINISTRY OF RAILWAYS (SHRI MOHD. SHAFI QURESHl): According Moreover, this practice of casual labour to him, there are about 5 lakh casual is bad because government becomes res- labourers and the yearly expenditure on ponsible for providing a bad example to them will be about Rs. 50 lakhs. That others. We find in so many schools, means, he will pay them Rs. 10 each. If colleges, universities, even in textile mills this is the scale he has in his «nMi then and other factories, etc., a tendency to it is all right. employ people casually to avoid and es- cape giving benefits to them* Should gov- SHRI P, G, MAVALANKAR: What ernment give a good toad or a bad lead is the total amount involved? by themsdves indulging in this feted of tin&ir practice and exploitation which w01 SHRI MOHD. SHAFI QURESHT: If be Mowed by the industries In the pri- it is 5 lakh casual4 labourers, it will be vate sector? about Rs. 50 crores. m PHAJjODNA 3, i m ISAKA) Casual g* b o w ) & *

DR. RANEN SEN: The Railways are more than a stipulated period and those paying some amount of money to the who are doing tike type o f work which is wooers, Why does he oat tale that into not of a casual nature...*tot is more im- account? He simply says, Rs. 50 crores. portant—you can do something now. When yon know that the type, o t work is MR. CHAIRMAN: ' He mesas, addi- of a permanent nature, why do you not tional to what they are already getting. take such people first and start giving them the benefits? SHRI MOHD. SHAFI QURESHI: If these persons are permanently absorbed to How do you expect these poor people the Railways, they will be governed by with a Word of insecurity hanging on different sets of rules under which Dear- them to do work in a dedicated manner? ness Allowance and other allowances will be payable to them. We have to provide MR. CHAIRMAN: They circumvent them medical facilities, etc. the industrial law provision by not allow* ing these people to complete 240 days. MR. CHAIRMAN: If they were to be made regular employees, what will be SHRI P. G. MAVALANKAR: I am the financial implications? That is what glad, you have mentioned this. This is they want to know. exactly my point. They are taking ad- vantage of that; they are resorting to legal SHRI MOHD SHAFI QURESHI : I points so that they escape the responsi- think about Rs. 40 crores. bility involved. My point is that if you expect these poor people to work in a dedicated manner, then it is not enough SHRI P. G. MAVALANKAR: I am that you give them good salary but what not asking him to reply immediately. Let is equally important, what is more im- him give the facts when he replies to the portant, is that you give them a sense of debate later on. security and that sense of security will come only when they are given all the How much money are the Railways benefits. Then, you can expect an in- spending every year on all kinds of pro- volvement of these lakhs of workers with jects ? Why can’t you at least start reduc- the administration and the working of the ing the number of casual labourers in a railways. phased manner? You start with taking those who have put in 10 years’ service The Railways are a national organisa- or more and later on you do it in a prog- tion. We do not look at this organisation ressive manner. as one additional department of the Gov- ernment Therefore, I want the national With the railways growing and coming organisation of Railways to do certain into shape, each time, I am afraid, the things which will be a good example to number of casual labourers will grow ul- others. Unfortunately, instead of giving timately and your argument today that a good example to others* they are giving there are no funds will become a more a bad example to others. It is front this weijjity argument five years later, 10 years angle that the Deputy Minister of Railways later. Therefore, my fear is that tills should be good enough to reply to the casual labour wiU be condemned for all points made by us and give us some as* their life/ time, for an time to come. Do surance. you want that? We do not want that surety. While the problem Ja still some- Each Minister tells us every time when- what manageable, while die casual labour ever we ask for something which involves is still not that big to number, whSe you expenditure that he has no money. They can have « phased programme, taking first are hopefully and pray&Uy looking to the those who have been casual labour for Finance Minister. And ftese fest few 295 itoilMjr* (Abou- FEBHUAKY 12. 1974 Cum tl # 8

i« ,r i p r. Mavnlankatl **rtl to tf* additional burden «n the r»0- t« m P. 0 - Mavatanktt] «tai«i**iicm win be wked, whe- ta p of <«* <“>«*» are difficult day* **- foer It * *«. 40 crare. or Rv 50 cron,; c m * know, wtat u t o m to m ^ w the qwe|Uon o£ RaU. happen and what wiU be the (ovenuMD W4y Bujggt. We agjjn take the Ministry aHet«ems. Bui certainly * sooalut m well u the peoplo involved themin u> erwne* » govemme* wh»* m ^ ^ ^ you ^ ta. terms rf M l n brfwe “ currlng . low?*. I, it our clear direction the Constitution of India where we have, . , „ . in the Directive princqfe. of State policy, JfL \a ^ S £ a clear directive that then should sot be ^ fcS exploitation, that people must be given !®“ i * in thT^i.Al!c ^ThL^f fair treatment and justice, mubt do this. „!??..p “ j , i.^ ° 1 suggest that the Railway Ministry should, ®? public sec| undertakings in before long, start with this phased prog- ^'\TT R‘u,wa^ A,e. w<’ugT 8 ramme so that they will not only earn to tcU thcm' Wc do not mmd whether the blessings and gratitude of the unfortu- ^ou uicur a *oss or profit; go ahead with Date but devoted workers in the Railways ,t; we do not mind whether vou increase and their families but it will also mean frei*ht <* ten u c the cost of ticket ? indirectly showing the way to other areas bave been told by the hon Deputy also where employers are having the same Minister himself that the Indian Rail- kind of employment, on the basis of casual ways—-I am sure he will include China labour. also—are one of the cheapest railway transportation systems in the entire world. I thank you, Mr. Chairman, once again Ul1t mhttn t. a for giving me more time. I , hope x- the , But when there is a slight ... price hike.. _ . ... £ S « U S ' V U i l t S i ' * ! * . " T"I

SHRI B. V. NAIK (Kanara): Hon. Chair- socialist measures, we say, ‘Well, here is man, Sir, I have gone through this brief an inefficient railway administration It is BUI. Some of the interruptions which I not able to make a profit.* Now, I put all had to make when hon. Member, Shri of us to blame for this. I would categori- Mavalankar, was speaking were motivat- cully request the Railway Ministry and the ed by the fact that neither this House nor Railway administration, for heaven’s sake, the hon. mebcrs there have been in a at least in the 120th year of the railways, position, whether duiing the course of dis- consider the railways in our country as a cussion of Private Members' Jftills or even public utility concern and have no bones during the course of more intense discus- about it thereafter, come out with a defi- sion of Railway Budget or the Railways,*- nlte decision and say it so and be answer- I consider myself as a part and parcel able to some of the charges that will be of that guilt—to give to those in levelled, authority clear and unambiguous decisions ourselves. And one such case is this. I I am saying that this system of ambi- bave repeatedly asked this question; it la valence we want to have is no good. You on record; I wanted the Radway Ministry want profits and you want utility. In this to define whether the Railways are run in case I have also an opportunity to ask this country as a twhlic unitility concern Prof. Mavalankar whether we are interested or they am run in this country as a com- that as a country we shall pursue and the merdal enterprise. And I must, regret- pursuit shall he on excellence or shall fully, admit that I have not been able to there be a pursuit of beauty in this coun- W* a categorical reply. Because, as was try? Then somebody criticised, stated* I suppose, the calculations in «e» should we hate these five star hotels and » 1 mm of PHALGUNA J, IMS (S4K A ) Carnal Bili labour) 298 Wch other things?* But if it Is our inten- ous or important projects. Certainly you tion—whether It Is a five-star hotel or can have them, you can have the five-star ^whether it be the Rajdhani Express hotels but not at a time when people are against which certain criticisms have been dying and starving and at the cost of levelled and which is running between basic things. My point was that a right Delhi and Bombay and Delhi and Calcutta order of priorities needs to be followed* —or whether it be the jumbo jets against which also we have been hearing some SHRI B. V. NAIK: I see there is a criticisms, can you say that we do not greater amount of agreement than disagree- "want an excellent hotel in our country, ment between the hon. Member and myself, can any one say that we do not want a I may inform the hon. member that five- fast-running train and can any one say, star hotels have been banned now. Then, 4T do not want a jumbo jet in the coun- leave aside the five-star hotels ... try? When we take a look at the fore- most socialist countries of the world— MR CHAIRMAN: While putting a man China or USSR, leave aside the rotten in the space, the socialist countries also capitalist societies about which we have ensure minimum wage to their working no ambivalence, why do they invest so people. Please dp not forget that, much in their atomic experiments? Why do they try to put their cosmonauts or SHRI B. V. NAIK: I was still on the spacemen into space 0 Why do they try pursuit of goals of the society as a whole, to develop their Aeroflot? Can this It is a sort of macro-socialist concept that money not be utilised in the socialist I was trying to submit to the Chair, society to put one more chicken into the pot of the comrade who is working in the Sir, I will now come from the ‘macro* mines or the comrade who is working in to the ‘micro’ socialistic decisions which the steel plants? Why do they pursue *e will hav<* t0 take. Sir, it is possible these things, these extravaganzes which are t0 Put a curb on the consumption of typical and the characteristic of the capi- Indian nationals; we know, black mfl- talist society? Because they want to Jay lionairea go to these places of luxury; down certain norms. Even the socialist st°P Indians ; keep it only and exclusively society wants to lay down certain norms for the foreigners as it is being done in to which one would like a common citi- some other countries. There will be no zen to reach for a better opportunity. I harm- But there again you might come think it is possible even in a socialist up against a sort of old British and racial society to take an interest not only in prejudice or a certain complex. Then regard to consumer's satisfaction but also we wilt say : Look, In our own coun- tn regard to performance and in regard to try we are not permitting our own achievements and in regard to excellence nationals to enter. But, that is a matter and in regard to doing something purely which would amount to a deviation, outside the material existence. In that way, the socialist society is more idealistic * «ow «««« back the essential con- than a half-socialist or a capitalist society. tcnt of the presented by I hope Prof. Mavalankar... my hon. friend Shri Kachwai ji is plainly acceptable. SHRI P.G. MAVALANKAR: I did not suggest that prestigious and important pro- AN HON. MEMBER: By Whom ? Jects in various fields of public activity should not be taken tip. All I was saying SHRI B. V, NAIK t By the Government was .* why do we do It at a time when mow at India, in the Ministry of Railways, by wgeat things needed to be done first? I our own Government who are running the am talking more in terms of priorities whole Railway system in this country, than hi terms of not having any prestigi- There should be no objection in principle * M m gt (Aboli- FEBRUARY 22. 1974 ( M & £ * * ) 390

EStet B. V . H m < m ptae* to awaksr the worker tin be I 8&y this with d m qualification. « f“ «Kl7 tint b « » ouin thing. Railways. Today easual Mhaur is dm _ ,, __ . ^ almost evory pUnta&a wWk. It is * * * * *• V-NAK; What I .*« “ *» there in almost every cowtnicttoa work. ***** ?"** ot progresswe legfe- Jt is there in every building contractors J*0®*1 ? .*“** ^ ,** * * m0*t ** *J“ writ, ft ia thete in road constrocSon. It taboui»w3a*iea of this ia there m irrigation projects; it 1. there ?«**• Who are 0» today who m abundance accounting for acme 6-1/2 * * organised* d>. mtfter of crores ia the field of agricultural laboir. organarngthemseive, and agitattagfor die Why should we pick tip only the Railway. P®*** of the improvement oltheir bving for the purpoeeof malting them perma- 7 J< f »e the UC, you «* nent? Ia it became it ia a handy instru- Uie Ind“ n ^ r^ Bea> ??“ ,*** * er mem which we can debate, and at the Engineer*, the Junior Doctor., etc. But, coat of Government, which has to snbsi- what 1“ ve *»> * » » 7 dise many things including our food prices, Sir, I think something will have to be agricultural commodities* movement, dis- done against the emeigence of the very tribution, etc ? At this time you are ask- powerful organised labour aristocracy in tag the Railway Administration to take up this country. another big burden like this. 1 would seek, the indulgence o f the hon Member* MR. CHAIRMAN: Are you putting Prof. Mavalaxikar: let him fix up the priori* the railway casual labour on par with ties; let us have priorities for the areas the Labour that you have just now said? where tonnes of rupees, tonnes of money are „ ...... _ being paid. For example, there iathe SHRI B. V.NAIK: Exactly <»ntrary I caae which I want to mention. I have f™ saying. The railway administration nothing against it aa auch In the caae of ay **as to paygreater attention to the an industry like the paper industry, ia **eual labour. This » one of the sec- wHch case, as much aa 40 per cent of *?” the Ttopeaftcr co®*» them have been on casual labour since the . • hereafer comes he A&.Ms inception of it, just nothing can be done thereafter comesi the higher and hitter about it It was in this spirit that many «"«archy erther m the Railways or m any times we have as&ed the Minister of “ laniaed aectw. Who cetchts the Labour why he cannot have a comprehen- pagination •» Urn House or in the Press aive legislation, what are the difficulties or Radio ? It » th» privileged organised of implementing it, etc. What I have to wh*h «tches the .magmatkm of aay ia this: If you have to bring in a everybody. I moat submit that if Karl BUI, tor Heaven's sake, please don’t make Maw were to be born m this country, he it applicable to half a million people only ’"«** * * kavestarted h» revotahon with in this country. Male it applicable to 65 ““ 'adutoal Ubour m this country. Re miUkw poeple in this country. Today would have gone t» the agncutoiral mae- casual labourers do not have security, they »“ • gone_ to fte agricul- do not have permanency, they do not have “ral «“*. * even fair wage being given to them. «Tfortunately, * *"“ we " >ust f *take *“* the "L ideal.V from u the ' SHRI S, *». BHATTACHARYYA: West. X ilo not know whether the Where the work is not permanent then Marxist’s jargon~-m*rjdstB* philosophy, is you may not bave permanent worker as understood correctly or not. It started at for example the agriafltoral labourers. the wrong end of the labour field. I There may be cases where the work is would therefore say that if we want to temporary for a period of time. But* in have a socialist society or if we have to placet whew the work is permanent, from follow the Oarlhl Hatoo programme we 301 * PHALGUNA 3, 1895 (SAKA) Cam! Ubrnr) 302 ttoH of Bitl have to begin at the right end in our so* B ill, for the reasons be# knows to Mm, ciety. Is &#» eves before unionisation, J* not acceptable. socialisation should precede. Unionisation w ill succeed and sot precede the socialisa- SHRI RAGHUNANDAN LAL Uon. The first and foremost is: why BHATLA (Amritsar): As we all know, should it not be possible to organise the

In the end, I would, however, make ano­ Therefore, the tremendous task done by ther suggestion to the hon. Minister. As the casual labourers is another great con­ far as possible, the employment of casual tribution to the railways and so it has to labour should be limited to the local peo­ be respected ultimately. I know that diffi­ ple. If casual labour is to be imported culties of the Government because of the from one State to another, and if the poor embarrassing situation. 1 do not want to fellow is to be given work just for 15 days mention it. If in a particular railway or in after which he is no longer required, he is the railways as a whole, the casual labourers again on the streets. This should not be are recognised, again there will be the encouraged. Therefore, I would very hum­ casual laboui «s and others in the public bly request the hon. Minister that he may ur.dertakuig who will agitate in the matter* kindly give his attention to the immediate I do not say that they should not agitate, problems and sblve those problems by which but it has to be taken at a national level, immediate relief and benefit can be given and it has to be consolidated, and the to the causal labourers Who are working in labour laws have to be enacted in a con­ the Indian Railways. solidated way. m M ating of fmb* FEBRUARY 22, 1974 Joint 90S Commission Irm * ' (S m *3 t$bri K. Lakkappa] in Tehran from 20th to 22nd Februaiy Therefore, tefcwe taking any at eps, let *** Meeting «£ ihe Indo-Iran ihe luftwuy Ministry appoim a commts- *oint Commissum lor Economic and Tech- Z n intothe qu*tiot> *f »*»* Cooperation. Our meeting concluded .casual labcurara who are working in various in * • ^ ^ v a * °* this nw»nb* «nd I X *ri« and *ee whatTTlaiicial in- « *• ^WOrtunhy on my rcjum d e m e n t win be, so that they can ease the * « W to this House the results of these situation in Out respect. discussions which I had conducted with my ^ counterpart on the Joint Commission, H.B. i would cite the Southern Railways an Dr. Hushang Ansari, the Minister of Eco- 4ex**mple. Then* the tremendous manpower romy in the Government of Iran. jb:t* not been mpected, because many of the contractora who are directly involved in ,ran j, the most important supplier o( the construction and other activities of the cn,^ oll w India and I am glad to inform *afl*»ya have ensaged maav unskilled Honourable Members that agreement has Jabouiers been reached to enable the Madras Re- . . . . . finery to expand its capacity from 2.8 mil- In K«r>»taka they are working in atone- Ijon ton, t0 3 5 miuion tons an ftuarriea, and undertaking various activities jnciease of approximatcly 25 per cent The for the Railways but they are throws out gf,,^ f a this expansion will be supplied by of employment without any respect being Iran sjhown to them; their family life is dis­ turbed and many persons move from one T ..... u . place to another like nomadic tribes. They I» add-on to the exp^on of the Mad- Cm n *uJL ras Refinery, Iran has also agieed to piovide arc employed for a few day* and A m { , •' b Sddtfionsi crude thrown out of employment. A public "* r « y „ • 4 “ Undertaking like the Railways should make w « * » > « « “ Pre* ”‘ »vailabihty to an effort to see that the jobs are categorised us* and they should be made permanent. There should not be retrenchment of labour after » me great satisfaction to inform the the work is over, because you know that House that Iran has also agreed to extend they will be re-employed. This should financial facilities which would cover be the proper approach. The labour laws existing supplies to Madras Refinery as also •have not been implemented because the ^ e additional supplies of crude. Railway Board thinks that the employees are not the backbone of the Railway Ad- It has become necessary to step up our piittistration. exports in order to meet the much heavier w » foreign exchange bill to enable us to MR. CHAIRMAN: Mr. Lakkappa may import crude. ft has been agreed that India contone Ms speech next tune. This debate win suppIy ^ pd iet-feed to the extent Wttl witffoue next time. Now, the of 2,5 million tons per annum. To achieve lion. Minister of External Affairs wants to ^ target| ^ wai be necessary to develop make a statement the mining facilities at Kudremukh Iron . ore deposits. The project envisages the construction of a Pipeline to carry the % 1M bn. slurry; development of the Port of Man* galore is proposed to be undertaken to STATEMENT RE. FOURTH MEETING handle bigger vessels. Pellatfcatiou fecili- OF THE tNIXMRAN JOINT tics will have to be set up. Iran will receive COMMISSION supplies for a period of about 20 years and has agreed to extend a credit of upto 1THE MINISTER OF EXTERNAL AF- VS. $ *00 million lor this project. The jPAIRS (SHRI SWARAN SINGH) : I was repayment would be spread over a period 309 Fourth Meeting o f Into* PHALGUNA 3, 1895 (SAKA) Recognition o f 310 ban joint Commission Bangladesh by W XStat.) Pakistan and the expectation is that the foreign ex­ with the Prime Minister and the Minister change thus earned will enable India not of Finance. In particular I would like to only to repay the credit but the export will bring to the attention of the House the yield additional foreign exchange. deep interest and understanding that the Shahenshah has shown towards the current Another project for which Iran has agreed problems being faced by India. But for to provide credit is for the production of his constant guidance, the deliberations of Alumina based on Bauxite. Iran has indi­ the Joint Commission would not have yield­ cated that her requirement of Alumina ed the mutually beneficial and successful would be about 100,000 tons per year over results. These decisions provide opportu- a period of 10 to 15 years. Preliminary rities to both the countries to strengthen estimates indicate that this credit may come their mutual relations. ito US $ 70 million.

An understanding has been reached for cooperation in the field of fisheries. It is contemplated that these arrangements would 18.04 hrs. include the supply of fishing boats from RE. RECOGNITION OF BANGLADESH India and the training of Iranian personnel BY PAKISTAN as required. Details of this scheme are be­ ing worked out by an expert team from SHRI S. A. KADER (Bombay—Cen­ India which is at present in Iran. tral-South) : Sir, on a point of informa. tion. Information has just now been recei­ In order that industrial capacity in India ved that Bangladesh has been recognised may be further expanded to meet the ra­ by Pakistan. Is the hon. Minister in a posi­ pidly growing needs of Iran for various tion to make a statement on that ? Commodities, it has been decided to set up a loint Committee of experts with the THE MINISTER OF EXTERNAL AF­ object of identifying industries in India FAIRS (SHRI SWARAN SINGH): Sir, I which are of interest to Iran and determine have also heard this report that Pakistan the best manner in which Iran can assist has accorded recognition to Bangladesh. to expand production so that additional If this news is correct, we welcome this, quantities could be made available to that because from the very beginning we have country. been urging that recognition of Bangladesh by Pakistan is recognition of a reality. We have agreed to supply to Iran 3 lakh This recognition should cow open up ways tons of cement and 65,000 tons of steel of further implementation of the Simla and products including rails. Other items of Delhi agreements. We welcome this deve­ interest to Iran, the availability of which lopment. from India will be determined shortly, in­ clude machinery and equipment, railway wagons and other engineering goods. 18.05 hrs.

During my stay in Tehran, I was received The Lok Sabha then adjourned till Ele­ in audience by His Imperial Majesty the ven of the Clock on Monday, February 25, ‘Shabenshah and had also held discussions 1974/Phalguna 6, 1895 (Saka),

MGIPRRND—62 LSS/73-V Day-11-4-74-