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Friday, June 17, 1977 Jyaistha 27, 1899 (Saka) CONT ENTS

[Sixth Session, Volume n , Second, 1977]

No. 6, Friday, June 17, 1977IJycdstha 27, 1899 (Saka ) C o lu m n s Member Sworn ...... i Oral Answers to Questions : •Starred Questions Nos. 83, 84, 86 and 87 1— 29 Written Answers to Questions : Starred Questions Nos. 81, 82, 85 and 88 to 100 29— 43 Unstarred Questions Nos. 769 to 778, 780 to 882, 885 t6 925 and 927 to 965 ...... 44— 254 Papers laid on the Table 255— 67

Calling Attention to Matter of UrgencSZublic Importance- Reported non-implemenfation of Notifications re. interim relief to newspaper employees by their managements .... 268— 84

Statement by Prime Minister on his participation in Commonwealth Prime Ministers’ Conference in London-*- SJjri Morarji Desai .... 284— 91 Announcement re. relinquishing of office by Shri S.L. Shakdher, Secre­ tary-General of Lok Sabha and Appointment of Shri Avtar Singh Rikhy as Secretary, Lok Sabha...... 291— 99 Demands fdf Grants (Railways), 1977-78 . 299— 364 Shri Sukhdev Prasad Verma . 299— 305 Shri Raitl Naresh Kushwaha . 305— 11 Shri O.V. Alagesan 311— 17 Shri Rafii Prasad Deshmukh 317— 22 Shri Chhabiram Argal 322— 27 Shri Dinert Bhattacharya 327— 32 Shri B.P. Mandal 332— 35 Chowdhry Balblr Singh 335— 37 Shri Arjun Singh Bhadoria . 338— 42 Shri Nawab Singh Chauhatt 343— 45 Shri Arif Beg 345— 48 Shri Kai'poori Thakur 348— 52 Shri Nanasahib Bonde 352— 53 Shri Sureftdra Jha Suman . 353— 55 Prof. Madhu Dandavate 355— 62 Appropriation (Railways) No. 2 Bill, 1977 .... 365— 66

•The sign + marked above the name of a Member indicates that the question was actually asked on the floor of the House by the Member. (ii)

Bills introduced : C o l u m n s ') '^>kpil 3iM iy >hri P.K. Dx> . 366 (2) Constitution (Amendment) Bill (Amendment of article 16) by Shri P.K. D e o ...... 366— 67 (3) Constitution (Amendment) Bill (Substitution of article 156, e t c . ) by Shri P.K. Deo ...... 367

(4) Foreign Owned Plantation (Nationalisation) Bill by Shri C.K. C h a n d r a p p a n ...... 367— 68 (O Compulsory Adult Education Bill by Shri C.K. Chandrappan 368 '6) Constitution (Amendment) Bill (Amendment of articles 74 and 163) by Shri C.K. Chandrappan ..... 368 (7) Banking Companies (Acquisition and Transfer of Under­ takings) Amendment Bill (Amendment of sections 3, 4, etc.) by Shri C.K. Chandrappan . . .. 369 (8) Publication and Import of Political Literature by Foreign Missions in (Regulation) Bill by Shri Samar Guha 369 (9) Appointment of Governors Bill by Shri Samar Guha . 370 (10) Foreign Propaganda in India (Regulation and Control) Bill by Shri Samar Guha 370 (11) National Defence Academy, Khadakvasala and the Indian Military Academy, Dehra Dun (Re-naming) Bill by Shri Samar Guha ...... 370— 71 (12) Corsiitution (Amendment) Bill (Omission of article 370) by Shri P.K. Deo .... 371 (13) Payment of Bonus (Amendment) Bill {Amendment oj section

10 an d su bstitu ticn <.

General Budget, 1977 -78 • 375—413 Finance (No. 2) Bill, 1977— Introduced . . 414 LOK SABHA DEBATES *--- L—Pf V------■■ ■. ■ ■■■■ — 2 LOK JBABHA THE MINISTER OF FINANCE («iR I H. M. PATEL): (a) Sources of income declared: Friday, June 17, 1977 /Jy&\$tha 2T, Maruti Limited: 1899 (Sake) Manufacture of motor cars, job werk, and building of bus/truck The Lok Babha met at Eleven of the bodies. Also rent, fhierest, capital Chock gains, sale of surplus bui ding materials etc. [Mu. Speaker in V^e Chair] Maruti Technical Services (Pvt.) MEMBER SWORN Limited: Remuneration for technical ser­ SHfU MOHINDER SINGH SYAN- vice and know-how from Maruti WALA (Ferozepur) Limited; sale of photo-copying ma­ chines and petrol savers etc. ORAL ANSWERS TO QUESTIONS Maruti Heavy Vehicles (Pvt.) Income Tax Returns filed by Maruti Limited. Limited and other Concerns Manufacture and sale of road rol­ lers. ; m SHRI KANWAR LAL GUPTA: (b) and (c). Various reports have Will the Minister of FINANCE AND appeared in the press regarding the REVENUE AND BANKING be pleas­ activities of these companies. These ed to state: will be kept in view while completing the relevant assessment proceedings. (a) the sources of income declared by Maruti Limited, Maruti Technical (d) and (e). Assesments have been and Maruti Heavy Vehicles in their made in the_ ordinary course upto income-tax returns in the last three 1973-74 in the case of Maruti Limited years; and 1974-75 in the case of Maruti Technical Services (Pvt.) Limited. (b) whether Government are aware No assessment has been made in the that there are many other sources of case of Maruti Heavy Vehicles (Pvt.) income of the aforesaid companies Limited. which have not been dedared before the department; The Special Cell in the Directorate cf Inspection (Investigation) is now (c) if so, the facts thereof and the watching and guiding the investiga­ action taken thereon; tion in thess cases.

(d) wither the accounts of the SHRI KANWAR LAL GUPTA: I aforesaid companies have not been want to protest. He has not answered examined properly and the sources of my question properly. If I may in­ investment and deposits have not been vite your kind attention to parts (c) properly verified; and and (d) of the Question—I asksd: (e) if so, what action Government (c) if so, the facts thereof and propose, to take in the matter? the action taken thereon; 3 Oral Answers JUNE 17, 1977 Oral Answer8 4

(d) whether the accounts of the him the sources of income “declared”. aforesaid companies have not been Assessments have been completed for examined properly and the sources 1973-74. Various activities, develop­ of investment and deposits have ments, may have taken place in 1974- not been properly verified; • 75, 1975-701 and 1970-77. Those will Kindly look at his reply at (d) aud come to light as and when the ac­ (e). He only says that the assessment counts come, as the returns are sub­ has been made properly. He does not mitted and the returns are examined. say whether the deposits and sources Until then to say that I am trying to have been verified or not. He has not evade giving a reply is perhaps not replied to it. It seems that the ans­ quite fair. wer has been framed by Sanjay him- THE PRIME MINISTER (SHRI se f, and not by our own Minister; it MORARJI DESAI): May I tell my looks like that. The question is: hon. friend that the use of a wrong “Whether Government are aware world does not redound to his credit that there are many other sources and to the credit 0f the House? of income of the aforesaid com­ SHRI KANWAR LAL GUPTA: Let panies which have not been declar­ me ask the question. In the account­ ed before the department;” ing year 1975-76 the total deposits What is the answer? It says; with Maruti comes to Rs. 4.2C crores. May I know whether the Government “Various reports have appeared have verified the sources of these cre­ regarding the activities of these dits or not? Secondly, if the Gov­ companies. These will be kept in ernment is not in a position to verify view while completing the relevant these sources, will the Government assessment procedeings.” reopen their cases, along with the Sir, as you know, there were not cases of the Directors, and, if not only press reports but a discussion why not? took place on the floor of this House. There are many reports and many SHRI H. M. PATEL: I would like to complaints with the Government, with clarify the position. For the assess­ his depaitrr.ent. He should have re­ ment year 1972-73 the return showed ferred to all those things. Why does a loss of Rs. 7,27,380 and the loss he want to hide all those things? If which was accepted was Rs. 7,05,444. he is ready with his reply, let him For 1973-74 the loss mentioned in the answer it. Otherwise, let it be post­ return was Rs. 25,89,000 and *he poned to a future date. I do not loss accepted was Rs. 25,070. For want this answer. 1974-75 the loss clamied in the return is Rs. 60,35,000 and the assessment is SHRI H. M. PATEL: 1 am sorry pending. For 1975-76 the loss claimed that the hon. Member is not satisfied is Rs. 1,43,37,000. The assessment is with the answer. pending. For 1976-77 the loss claimed MR. SPEAKER: In any cass, there is Rs. 2,38,00,000. The assessment is is nothing shady in it. pending. SHRI H. M. PATEL; I may assure As I said in my reply, we have set him that these replies have not been up a Special Cell, which is investigat­ drafted by Shri Sanjay. This much ing the case. In fact, a special set of I can assure him. officers have been asigned this work SHRI M. RAM GOPAL REDDY: of going through these things. A cell Was it drafted by Shri Kanwar Lai in the Directorate of Inspection (In­ Gupta? vestigation) also has been set up to SHRI H. M. PATEL: It is possible guide and investigate all these returns. that I have not given the hon. Mem­ It is only when the examination of ber all the answers that he desires. these returns is fina ly completed that But his question is about the sources one can give you the kind of answer of income “dec.ared”. 1 have given that yau may desire. 5 Oral Answers JYAISTHA 27, 1899 ( SAKA) Oral Answers 6

SHRI KANWAR LAL GUPTA: I SHRI H. M. PATEL: I have no in­ asked the question whether the cre­ formation on this subject. I shall dits were verified by the department certainly take note of it and see if it in those years the assessment for which is so. has been1 completed. SHRI H. M. PATEL: When the as­ : *T«ft sessment is pending, it means---- % *?t fa to ?£ $t tft fan: SHRI KANWAR LAL GUPTA: It tffa T ^ | fV.4*i SHRI H. M. PATEL: The returns »TRT *T 30 sHN- *TRT have to be examined. The returns contain a number of entries. It is not possible to say which particular entry ^^T*T, l\ fa *rr^r $ qrr ^ jftaT • T fw *r *ft *rf ^ srro eft 3fT STFfi ^ ^TqT fa^TT W I TflRTT »itj; tffa: i, 8 *•" | . ir^ ntr, it *ft ihf »ttt sfrc MR. SPEAKER: You are giving in­ ^ % 5 i o formation, you are not asking a ques­ tion. JT 45 W I TOT *Tf HiTcT fl^ t | ? - TX\ ^fV rftTT ip qTt *nrr T jh ld t ^ ^TT T^fir TOrfa qfs^rfr TfT f f a 3ft ^TOT fiTOT TOT | t ? ^ f-^ftTFT faiTT T O T f, TOT fl<+T< ^Tt if 3rt^ fTTR»ft ^tf SHRI H. M. PATEL: I have no in- fT^R ^»ft ? formation whether Mr. Sanjay Gandhi sold his petrol savers in Russia. As to SHRI H. M. PATEL: As I raid, whether the returns will be placed on assessments *are pending, which means the Table of the House. I shall consi­ that the returns have be*en submitted der the matter. and those returns are under scrutiny. As the returns and the scrutiny are of a complicated nature. It is bound to take some time and hence *TTH : TOT JTf | the delay. It cannot be finished fa fafjrcr vt irt ^ t within the time he has in mind.

dataik were not fureixhed by the c®*n- {*) * t Tift pany. the income»tax officer on his own «dd«d the figures and proposed | «ftr urn 't w v * tft ^ i f r 1 to add Rs. 94.95.000 in that year. These are now matters which will be ex­ (»r) Pkh^r ffrf vr^Tf amined. VT Jf*T JTflr Y5 TT I V>forf $*«Tf trvf^T *TT *ft T* ^t 5TW VFT ? *TT PHK f W *11^11 I

SHRI H. M. PATEL: I am afraid I fww »it o w cannot tell you. *r fw «»Tft*d MR. SPEAKER: He has no infor­ mation. There is no use putting ques­ ipp # 3ft f c r f t ¥ l£P tftoHTf tions. He will aay, “We will enquire wVo *ft *f«ft | T w r wi%w *fr into it”. * n w »rttft *ft *£* H «ff, t o t TO* (frar % % p f t r «ft nrfin wmT : H ^ *rk #5ff7: ^ in*A(d* ^ftn *UT « > * *fFTT flUHiW *Teft 5 *Ft ift^r ^ ? ^ Wt 11*71 f>T*T fr : (* ) w t Q/f fttitfifnyd r t^TTfr TT XVfiTTt W5T m x ^ T T % f^T^- vmsr q?nrft ^ *f vVr MWi y^rrr | ; srrft f¥Nrr t »m f ^ wrr f^w x | ? ¥ Wrf*TR- *T^T- JT^tw, ^ sr^r ^r ^ «TTm 1 srarw (ft^r) ^ wnr 20 ^ t airr-Tr | ^r*n wnr"O it fw v r , 1947 it «T**TCT fWT ? f^WTfm % JPtFTcT VTTcT «<+K MR. SPEAKER: Can you give some *t tr * prr»r

«rt * Hftrw *Mir * : irtY * to W * * *rif I VT: tfffaj WnTVTtr 5 I ^V° *TTfo % qr^f SHRlj C. K. CHAN0RAPPAN: The srsrs- Jf ITDC is notorious for being an insti­ ^ «rjf «mr f i ^ tution where very big scale corrup­ tion is taking place. So, I would like the hon. Minister to enlighten this Ilouse as to what happened to the » r CBI enquiry against the former Gen­ eral Manager of the ITDC. ^ Tmmrt m«0 : ittt SHRI PURUSHQITAM KAUSHIK: ( « ) FT SWR t : V * *f, ^ I require notice for that. WT Irpft 3v3ft T STfT crt wwr | t I ^ | 5TH+i? ^Tf ST?T f ® ffff $tc «nn: m*TK iff sr*ft«r^T f’TfNcT FT % 5Tli»^+ frrqil^ *Rfa?T ?T> fa>T$r

106 sick cotton textile Mills. The Cen­ tral Government does not favour f r fvrr vt zm k % far? art* takeover of more sick or closed textile 3TCT *>$f- 'JT ^ I W5? *1^ mills for management by the National ^ t fV wr Pi^fa flw»ny»K Textile Corporation. However, if any concerned State Government is pre­ g f t jit si^lr i fwfjr %• wrt Sr *h r pared to take over sick unit or units TT% V(T q|qiwJ+3T | ? **T under its management, the Central Government would like to render all $T #sft W possible cooperation whenever such fct proposals are found viable.

«ft jw lfw vtftrv : fH*nr *To W f t *im m «Ttra : ^FT rMf TN' ^TTT t|IWJ1> | ^ ^ «FT TfR rft fa wt <T SRfr f •86. DR. LAXMINARAYAN vfl*rf£?T ^ 111< +1 vm f>l PANDEYA: T rft WF5TTT Jf STTcrT | f SHRI S. D. SONASUNDARAM: ^TT^T fipPrTT ?r^r | ? Vlft T*T% ^IM'l *TRX 4*d SRTT A ' Will the Minister of COMMERCE AND CIVIL SUPPLIES AND CO­ cff VVt *PT f>TcTT ^ I 5TT ilTT '3(t OPERATION be pleased to state: RTfWt fasrffTcT ^ T| | (a) whether Government propose w t OrfiRcT wrafsr | f a to have a long term policy in respect ^sr rnr ^ qT.^rat T ^|rT *faZ *t f I m ills and the powerloom and hand- ?rn?

SHRI MOHAN DHARIA: Regarding the Sivaraman Committee have be9n exports eitlter by tisndlOom fi* by under operation and implementation, powerlocm, it will be the policy of and ever since ! have assumed office, the Government to give them all pos­ the House will be happy to know—as sible protWctioil. So far as subsidies are we have committed to the country concerned, the Hoose will p'ees^ that more and more protection will be appraciate that it should be our endea­ given to the decentralised sector—we vour not to allow our economy to are trying to see how we can give more continue t« rely oh subsidies. Of protection and more encouragement course, with a View to giving protec­ to this industry. I would very much tion. if something is necessary, it will like to apply my mind to this prob.em be ddhe. and I would like to know fiom the hon. Member if there are any specific Regarding controlled c’oth, there difficulties. are several aspects. It is very true that we shall have to provide control­ Regarding prices of yarn, I do share led cloth at cheaper prices for the the concern. The House may be aware masses of our country. But so far as that the production of cotton in our the present policy is concerned, we country, which is usually of the order shal Have to examine to what extent of 71 lakh bales has gone down to it has succ^eded an •ft t srm?r frrr that yarn may be available at cheaper ^T^fTT f. fa prices. But even then, on certain occa­ *rr* 9 f s fa* ^ srcrrH ifr sions. there are areas where it is not available. If the hon. Member brings it to my notice, I shall look into the f. * f r f »rf matter. ?t. ^'t wr fvjxz it ^ 1 PROF. P. G. MAVALANKAR: The Hon’ble Minister, in reply to part (b) f Oft *t

again. Will he, therefore, see to it that % fas jfrtif fine the Gujarat textile corporation is enabled to proceed in the direction it ^*ft, «rnr% »wtrn«f wantSj to go, so that these sick mills % $ * ?>ft, ft can be brought baek to life and health ? as early as possible?

SHRI MOHAN DHARIA: I don’t Wt *rt$* w ifw r: ** $ sfam know the exact date of the informa- tibn of the Hon. Member, but I can t-— vr tm w wga- tell him that about twenty ^T% f%> #*R?r t^TTT^T days back the Chief Minister fir

So far as other mills are concerned, as soon as We receive proposals from SHRI s. R. DAMANI; The pre- the State Government we will look decessors of the Hon’ble Minister bad into it. I said we cannot take more talked for about three years about an than 105 as we will otherwise have to integrated textile policy, but that open a general hospital for the sick policy has not seen the light cf day. mills. May I therefore know from the Hon. Minister whether he will see to it that such things do not happen again and m i 5T»rf : that the integrated textile policy is announced soon? Can he give us some time by which this pblicy vrill be Sivfar «rqt % *3 announced? According to the ©resent

*F«T* 3 €WT if ^ "iWf % m policy, the weaker mills have to pro­ duce more controlled cloth and the & i ^ if f^fsr tt stronger mills have to produce l£ss sp sf ir |?rr | i srrsr m and they are also given some con­ cessions. The result is that so many % j u t « rf trfrrftr^TT mills have closed down and the NTC had to take them over. If this policy *> > $ STWT f*W TfT I I «rTT% continues, many mote mills will close down. I would request the hon. Min­ s t a r r ^ , i n r ister to eiaminfc this policy. May I HU «pfiTT | ^ w r know how lbftg they atte gbitig td take ^frn n r to examine and introduce th£ rtew controlled cloth policy? ? r > r s *t Jr

fcise In the prices of Essential coffee, sugar, bread, razor blades, dry Commodities cells, kerosene, diesel oil, salt, tyres •37. /SHRI SUKHDEO PRASAD and tubes, footwear, soaps and drugs VERMA: and medicines either remained more or less stable or showed some decline. SHRI F. P. GAEKWAD: (b) Among the immediate measures Will the Minister of COMMERCE taken by the Government to curb the AND CIVIL SUPPLIES AND CO­ rising trend in prices of essential com­ OPERATION be pleased to state: modities and improve their availability (a) whether Government are aware are: (i) Govemmant’s decision to re­ of the recent alarming rise in prices duce expenditure and avoid all forms of essential commodities; and of ostentation; (ii) decision to release more cereals through the public dis­ (b) if so, the steps Government tribution system; (iii) more liberal propose to take to check the price allocations of rice to meet the require­ rise? ments of the public distribution system in the deficit States; (iv) increased THE MINISTER OF COMMERCE releases of non-levy sugar for the AND CIVIL SUPPLIES AND CO-, months of May, June and July, 1977"; OPERATION (SHRI MOHAN DHA­ (v) removal of restrictions on inter­ RIA): . (a) and (b). A statement is state movement of wheat; (vi) imposi­ laid on the Table of the House. tion of an export duty of Rs. 5 per kg. on tea from April 9, 1977 and simul­ taneous withdrawal of the excise re­ Statement bate on tea exports; (vii) regulated (a) Between March, 1977 and May, export of potatoes and onions; (viii) 1977, the all-commodities whoiesule staggering to the extent possible, ex­ price index went uP by 2.5 per cent port of cement; (ix) continuance of as compared to 4.1 per cent increase imports of raw cotton in adequate during the corresponding period in quantities; (x) continuance of imports 1976. This phenomenon is a continua­ of adequate quantities of edible oils tion of the inflationary pressures buili through the State Trading Corporation up since the last week of March, 1976. and the private trade; (xi) arrange­ In the week ending March 19, 1977, ments for the distribution of refined the wholesale price index was higher imported oils for direct consumption by 12.5 per cent as compared to the through the State Civil Supplies autho­ index in the corresponding week in rities at the retail prices of Rs. 8.50 1976. The most important reason for per kg. in some high consumption cen­ this price spiral during the past one tres to begin with. year has been the phenomenal increase of 17.1 per cent in the money supply As a medium term measure. Go­ in 1976-77 as against the marginal vernment appointed in mid-April, 1977, estimated increase of about 2 per cent a special committee to suggest mea­ in the national income. sures for increasing the production of raw cotton, pulses and oilseeds in the The increase of 2.5 per cent in the coming kharif season. The committee wholesale pricerindex between March, has finalised a plan which is being im­ 1977 and May, 1977 has been largely plemented with necessary financial due to rise in the prices of pulses, oil­ support. seeds and edible oils. During the same period the prices of some mass con­ As a long term measuig, Govern­ sumption. items like wheat, sugar, ment are working out details of build­ maize’ ragi, arhar, onion, meat, tea, ing up a massive public distribution JUNE 17, 1977 Oral Answers 23 Oral Answers

system for a number of essential com­ the millions of people in our country modities. Consumer cooperatives will and when I say a miuaive distribution be adequately strengthened towards system, it means right from the pro­ this direction. duction to the distribution end, a tat of machinery will have to be created and to that extent, we have already started action. Regarding immediate mea­ sures, I have narrated them in the % sft f^4TV) *r*n qr t*tt reply I have given. wm V if wwwt f fa n&t ^f5s tfa% % farr TR7TT TSTtT £ I smrt w»rf : Mi?r?r fHRTT $ fa »T «TWT f i *nft t fafaFT | I * ^ T T $ fa *T*TT HH ^ | ^ f » f»TOf ffT fT^TTT % ?^r»M r^t^nT?ns^T^TTg | sffcff *s*fi % W?T fa if ^3|if *W ^ *tVt VPfa W*T fa ^ mfaj Jr Mfaefhaps this may be covered by that. *nf%z ft fo* ?

WBI? W*f : »rww SHRI MOHAN DHARIA: It is 'Vue itf- sn»?r * t s t t t ^ *rroT | i *?ft that there is levy sugar and non-levy trfKJT %xrft fif^Tor % *mr V t fan sugar. The price of levy sugar has been fixed from the point of view of | fa ^ rT fa % % fat? wm the consumer. Regarding .non-levy | I # ^TT jj fa «m% sugar, we are issuing more releases of 35 R % TOT JJWT ^ WTf m quota so that the prices do not go beyond the capacity of the consumer. W VW ift 1* t| f ? OTT *WT it *ift The price last year was about ttrf t ?ft *nr ft Rs. 464.00. It has come down to 3s r a 3tt | ? Rs. 380.00. SHRI MOHAN DHARIA: I am SHRI HITENDRA DESAI; Food sorry this is concerned with the mea­ articles and edible oils have a direct sures to be taken by the Finance Min­ bearing on the vulnerable section of ister and it is not proper for me to society. The prices of these articles say anything. have increased. Will the Government contemplate to take proper steps to Regarding the other aspects, I can have favourable results? asebre the Member that we have taken three types of measures. One is SHUJ MOHAN DHARIA: it is very itefnediate measures. Secondly, mid­ necessary to contain prices. Thfifre term measures and lastly, long-term should be buffer stock too to addeve measures. So far as the long-term this object. But unfortunately when measures are concerned, what is we took ever charge of the Gwtro- needed for the country is a massive meat, only the keys of ftodown# were distribution system having regard to handed over to us. However, n^ten Oral Answers JYAISTHA 27, 1899 ( SAKA) Oral Answers 2 6 25

we opened them, they were found to ft f tfift *T ??JR»T f j?T be etnpty. In the circumstances, it is «T99T ^»rr, 47 % 49 «TP9 very difficult to build up the buffer stock, i Anyhow, I shall hear the 7CT ffrft 1 TTJFPT t 2 W T suggestion of the hon. member in view. 15 f a ?T t | *>9* 15 fjcT jt ^ t sn r q r 11 'ftw jrftar 1PTT TTIPT a f W % JflTTfWIT V5W ^ % *>*r r ^ srrq, * t j t s s t % % T C f T P T U f *ifiWT : «r> f^TTW «ra*r w tT t * immrv $ ’crcrfc arft if ?ft ^ «rr*n: Jf . s * ? fiprr I I f %TfT % W^*T?T fj fap SHRI MOHAN DHAiRIA: It is true f*nT«r 5,w *rr ^T^fi • that the price had gone up. It is not mwvw 5«r fawm *?£ tpt because cement was not available. The price per bag had gone up to «

There was tremendous shortage - - So far as sugar i6 concerned it is a from 30 per cent to 50 per cent— suggestion for consideration and I in various States during the last four shall look into it. months and undue advantage was taken of this shortage. We had a SHRI MADHAVRAO SCINDIA: discussion with the manufacturers. Import of edible oil in this country We were assured by them that the and the distribution of edible oil in licences of the dealers indulging in this country can only be described a£ malpractices will be cancelled. As far inedible distribution. Therefore the as my information goes, licences of import and distribution of this eight or nine dealers have already edible oil has had no significant impact been cancelled. Besides that, I have on the prices of the truly edible oil discussed the matter with the Minister in this country. Is it not true? of Industry. In case it is substantiated that the Industry itself is doing SHRI MOHAN DHAiRIA : 75 per •something in the matter, we have cent of the edible oil are given to decided to take over stock of the vanaspathi manufacturers and there­ concerned factory for distribution. fore it is possible for us to keep up the tempo of the manufacture of 4 *?*TTH iftr • ^ ^ vanaspathi. There are sovabeen and f a ^ f T f | sunflower oils. They are being import­ ed and we get them refined here. And so far as my information goes, ITifr TT«TT T f STRUT t I ^ people have started appreciating the U T ^ IfTT W T 3IT ^ I JT? distribution of this at the rate of Rs. 8.50 p£r kg. in various places in fT«!T < the country. 27 Oral Answers JUNE 17, 1977 Oral Answers 28

vjtft STf* : iff rft vrafiTfr w ? > fft f^R^r «r?fcT rt ITR **§*rf % qwff it art w f * £r T f t fc, ff*TRr ^ *r t% t % Jflff ? ^r*t f*nr*i ft^ft ^rf^r 33% f^tr m^WSF ^t*T ^CT't Wt t. ^f*FT Wt Y lfw : $ ^ iRTm fa vfft sitst srt «rn m ^ £ g m «ft*Trft *TOTR ?t fc*TT $ m m str ^rq-Tr t i vra sfrflr *t ^FT TT WTfjr^n: ^ 1 ^TTT T % ?HT TJTTCT t T*( * m Tftitr'T ^f*r % «rr? *fr *rf, ^ *r &r w ^ r f<5 Tfr f«rr > tft «r* * tt s r r c s ^ 1 is long-term. As far as the long-term m'ff *farT *Tf*T it SPT t s*ftfa

t I MR. SPEAKER; Now you come to your question. «ft W VT SHTT? 5«T^ : ^'T fT7*B SHiPI DINEN BHATTACHARYYA: 2 15 at snr*r it ^ 7% jtP t I see that even in the case of potato, ffrsj-f ^t?fr f o r Tfr £ m r %wft the pnca is going up. The prices of cTC'K’? ^ srnrrc: 5 ^O stHt fa r t ^ f t edible oil. mustard oil and everything sre going up. So, what short-term fa?T T?t t m ?TFT Ttf^t JT~iT measures are you taking so that within ?ftr fa^Tor sr^rr^ft ^t ^Jrr<

WTO : fftaro (b). whether any State has shown interest in such consultancy services; «r*rw «pt jpr | i and 'JiHii ^ fa (c) if so, brief facts thereof? fTTjf apT aptf fazHT *?TT firaT | fa gvrfhTT THE MINISTER OF TOURISM AND CIVIL AVIATION (SHRI PURUSHOT- q * ^ ST?* ^3 fffrrTT $ ? TAM KAUSHIK): (a) and (b) Yes, Sir. MR. SPEAKER: I will tell you. You \<, 11 please sit down. I shall (c) The I.T.D.C. has been appointed explain the position, so that you may by the Government of Jammu and not get up everynow and then to put Kashmir as Consultants for their Ji question. If the hon. Members read entire publicity programme. Similarly, the que :tions in advance, they will be the Corporation has provided a certain able to put the supplementary where amount of expertise in assisting it is vv pposed to be very important. tourism promotion plans of the Gov­ ernments of Punjab, Himachal Pradesh, Inste; d of that, if suppose, ten , Orissa, Maharashtra and people i et up and if suppose the same Uttar Pradesh. In areas other than genllemtn wants to put a supple­ tourism promotion and publicity also, mentary, then what should I do with the Governments of Bihar, Rajasthan, regard to others? Suppose you are Orissa, Puniab, Assam and Nagaland in the Chair. If ten people get up have shown interest in utilising the *nd you call the same gentleman consultancy services of the Corporation. everytim-5, what will the other Mem­ The nature and scope of consultancy bers say about it? Therefore, I say, services required bv these Governments if the hon. Member reads the question are still to be crystallised. in advi and puts a supplementary on a question where it is supposed to be very important, then that would be easier for me. I have to do justice Memorandum from Indian Pilots' to ail members. If I call the same Guild gentleman and not others, what will they think about me? I want to give *82. SI-IRIMATI AHILYA P. RANG- a chance to others who are aiso hon. NEKAR; Will the Minister of TOUR­ Members who are elected to this House ISM AND CIVIL AVIATION be pleased to put a supplementary. to s ta te : Thercfcre, that is the policy that (a) whether Government have re­ I am following. Whether you like it ceived any memorandum from the or not, I shall follow that policy. Now Indian Pilots’ Guild recently; and no more discussion on this. (b) if so, the reaction of Govern­ ment thereto? WRITTEN ANSWERS TO QUESTIONS THE MINISTER OF TOURISM AND CIVIL AVIATION (SHRI PURUSHOT- Consultancy Services of I.T.D.C. TAM KAUSHIK): (a) and (b). Some *81. SHRI GHULAM MOHAMMAD letters have been received from the Indian Pilots Guild regarding the KHAN; Will the M in ister of TOURISM AND CIVIL AVIATION be pleased to re-instatement of three pilots of Air- India who were removed from service state:— for their role in the 1974 strike in (a) whether India Tourism Deve­ Air-India. Two of them have already lopment Corporation has provided ex­ been reinstated. The case against the pertise for tourism plans o* States; third is sub-judice. 31 Written Ans%o*ra JUMS 17, 1*77 Written Answers

t*yw*emt «f i n n to L.i c. The maximum salary/wage level for BnptoyaM c&lculatiop of ex-grwiia payment is Rs. 750 per mensem. *85. SHRI GANANATH PRADHAN: Will U>e Minister of FINANCE AND The All India Insurance Employees’ REVENUE AND BANKING be pleased to Btate: Association moved the Calcutta Hi$h Court on 22nd April, 1976 inter alia (a) whether a comprehensive agree­ for a declaration that the settlement ment was made with the Life Insu­ dated 24th January, 1974 between the rance Corporation Management on Corporation and the said association January 24, 1074 to pay bonus to the is lawful and binding on the LIC and LJ.C. employees; that an injunction should be issued restraining the LIC from refusing to (b) whether Government propose pay bonus to Class III and Class IV to review their demands far payment employees. The Judge of the Calcutta of bonus in future in view of Calcutta High Court in his judgement dated High Court judgement dated 21st May 21st May, 1976 directed that the LIC 1976; and should make payment of bonus as laid down in the settlement. The LIC (c) how much amount Government made an appeal against the above are likely to pay towards the arrears judgement to the Division Bench of and future payment of bonus to the the Calcutta High Court presided over employees? by the Chief Justice. Meanwhile the LIC (Modification of Settlements) THE MINISTER OF FINANCE AND Act, 1976 came into force on 29th REVENUE AND BANKING (SHRI May, 1976 annulling with effect from H. M. PATEL): (a) to (c). A statement 1st April, 1975 the provisions of the is laid on the Table of the House. settlements insofar as they pertained to payment of annual cash bonus to Statement the Class III and Class IV employees. Comprehensive settlements were In view of the said^ legislation, the concluded between the management Division Bench of the Calcutta High of the L.I.C. and the Unions of its Court did not make any order on the Class III and Class IV employees on appeal as the action of the LIC was 24th January, 1974 and Cth February, now protected by law. And thus the 1974. These settlements were current judgement of the Single Judge of the from 1st Aoril, 1973 to 31st March, Calcutta High Court was rendered 1977 and inter alia provided for pay­ ineffective. ment of annual cash bonus to the Class III and Class IV employees at the rate of 15 per cent of annual salary. The validity of the LIC (Modifica­ tion of Settlements) Act, 1976 has since With the enactment of the Payment been challenged in the Supreme Court of Bonus (Amendment) Act, 1976, the by some of the Unions of the LIC Central Government decided that, employees. The matter is still pending beginning with the accounting yep before the Supreme Court. 1974/1974-75, employees of the non­ competing public sector undertakings may be paid an amount ex-gratia, in lieu of bonus, to be determined by the Central Government, taking into account the wage levels, the financial circumstances and other relevant * 88. STOTI : W factors. The ex-gratia payment is not ifTnT to excetd 10 per cent of salary/wage and on jr those drawing- salary upto WVT far flTT Rs. i,&j 1 per mensem are eligible. *T fwwrx VW* qr WT srfatr* 33 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 34

fa fFTVt fipifcTV ^rwr: 40 Sffo- iTHE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ wcr 60 srftrcra «rsi*r fa^rfcr OPERATION (SHRI MOHAN DHA- w m r wk for scfafor ^ RIA); (a) Yes, Sir. fir 5qTTT'< * t, fara% (b) The Committee observed that 5TWT sqnifnff wfaJnr^f^^TTJifT it is possible to evolve a nexus between m flmT ^THT TC T^T 3f-*T% the prices of kapas, the mill-gate % f®TT *[*T EZTTTR *R*rf?T delivery prices for cotton and the prices of yam and cloth, taking various m f w r | ? assumptions into consideration. The Committee also observed that fluctua­ tions in the prices of kapas and cotton are a regular feature disrupting the tnfvrHT ?ptt ^mfrv economy of the cotton growers as H^wrrfrm irsft («ft *ft^r rnfkm ) : well as of the textile industry. The production of cotton acquiring self- Jf^T «l7fT7T qn^FTT ?T^^FT J % sufficiency in its supply assumes con­ ^rsft .• 5pt xztm r % fair sp f^n siderable importance and has to be *nrr «n 1 *TT^T;iid: fJTH^rr s m 40 srfa- given priority, 5RT % %*% % f-T^ ?*ft WjftT *T (c) The Report of the Committee is iff *TRT ’sT^TTT o, '5R' ^TT T eft under examination. fa am *rrf\ fspft «ia 1 faPunff tt % % f?PT * f © *re T* ^Tjfrr sni ^ n fa% 1 *90. %o sronn : WT faw ?TTT I SIW 52TNR #■ pKMd ^T ( ^ ) 197 5 Mu cT^7

$17^1 ?TT *Tf | fa tffW J ^ fq^n *T3To I ^TFT ^IT ^ I t w | ; srk

(sr) *r ?r far% Report of the Committee on Costing/ fair trt sftr farr% ^rPfrTm qfr ^ Pricing of Cotton and Cloth f w *HTT ?

*89. SHRI VASANT SATHE; Will farT wVr TTJfW iffc *fa*T ifcft the Minister of COMMERCE AND CIVIL SUPPLIES AND COOPERA­ (sftqwo quo q$?r) : ) wix (^ ). TION be pleased to state: 5pm t, 1975 %!W?r, 1 977

(a) whether Government have re­ tt, jtst faf^w r yftrfcpnr ceived any Report of the Committee set up last year to go into the costing/ % siTTtfw % ^rcor, jw tr pricing of cotton and cloth; f^vrr^nr sttt faPr?r sq-f^qif (fa^^r (b) if so, the main recommenda­ ^tr^- fa^rnr # h |) wt> 13, 02a tions of the Committee; and ‘^tt^ icmit jftfew’. ^rrft fa^ ^ * i. (c) the reaction of Government thereto? 327 rwvw rf 643 LS—2. 35 Written Answers JUNE 17, 1977 Written .Answers

*ft m r * t *r$ i v s t f«r9tit fsrfww *fiarfrjw % Tr gy^ft 3 fffcT faf*TW srfRW f Tt («r) ft, ?rt ^- ^sft foTT 1TFTT I * f X* STTC | :— ?rr «rkr wt | cr*TT wr«T% ^ fc+ 'k fatfffifta rqrqftdfa tr *r

snrifirrT fr*r »tft

n3 I fn^yi+, «ft ^to %?rcqr ^ft, tftt: fx qoft :— TTTfTI WrTHTf ?ftfe*T V\X f^TFFT % *1ftfqtWT V STf^TT % TpTrT ?intaT^ * ^ ^ fotrrom ^ swt ^tctt Tt ^ Tt Tt «ft, frrtt rr> snj^nr 25-12-1976 % fd'Wpf ftrf^rr *rf ^ f% srrrs 5*t s t o r Tt «tt t# ^ f i »nwr q, f t cTT ffe r r rnrrwnr^T % f^rnr tt oqff^T trsp ^r ?ffaT ‘TITUT ^TOt fr^ft ?rrfttf:^ 5? ^ zrrr fr^rr ’tjtt snftrr JTft fiwr I fT-TTJ % Hi +VT ft> I 37 Written Answers JYAISTHA 27, 1800 (SAKA) Written Answers 38

Government employees who had London on his way to Washington and rendered wot less than 20 years also on his return journey, but he had qualifying service and were eligible no official engagements in the U.K. for pension were allowed the benefits of famity pension. The family pension 2. The Finance Mininster’s visit to in such a case is normally at the rate USA was primarily to attend minis­ of 50 per cent of the superannuation terial meetings of the Development pension subject, however, to a mini­ Committee and the Interim Committee mum of Rs. 40 and a maximum of of the IMF and the IBRD. The deli­ Rs. 150 per month. This family berations in these Committees are pension is non-contributory in nature in the nature of a continuing dialogue and is payable for a maximum period between the developed and develop­ of 10 years from the date following ing Countries or questions relating the date of death of the employee but to the reform of the international not exceeding beyond the period of monetary system and improvements 5 years from the date on which the in the operational policies and instru­ Government servant would have ments of the International Monetary retired on superannuation. The family Fund and the World Bank. for this purpose includes widow/ widower, sons, daughters, father, 3. The Finance Minister also avai­ mother, brother below the age of led of the opportunity presented by 18 years and unmarried and widowed these meetings to establish bilateral sisters. A new scheme known as the contacts with his counterparts from Family Pension Scheme, 1964, which major countries (including U.K., is contributory in nature, was intro­ Canada, France and West Germany) duced with effect from 1st January, and to discuss matters connected with 1964 and Government employees who India’s share of the IDA funds. were in service at that time were 4. The discussions with U.S. Treasury given an option to choose between the Secretary and U.S. Secretary of State two schemes. centred on the question of India’s Finance Minister's visit to U.S.A. and share in IDA lending, and the issue of bilateral aid from USA to India other Countries was not discussed. Such discussions do *93. SHRI SUSHIL KUMAR however, help to create the condi­ DHARA: tions for increasing co-operation and cordial economic relations between SHRI D. D. DESAI: the two countries. Will the Minister of FINANCE AND REVENUE AND BANKING be Uniformity in Rates of Sales Tax pleased to state: *94. SHRI SHAMBHU NATH CHA_ (a) what are the possibilities of TURVEDI: Will the Minister of FIN­ improvement in financial and econo­ ANCE AND REVENUE AND BANK­ mic relations of India, with the ING be pleased to state: countries visited by him in the begin­ (a) whether Government have re­ ning of last month, particularly the ceived representation from the States United States of America; and and Business and Trade Associations (b) whether there is possibility of for bringing about uniformity in the further improvements in Indo-Ameri- sales tax rates throughout the coun­ can relations as a result of his visit? try and its collection by the Central Government as additional excise duty; THE MINISTER OF FINANCE and AND REVENUE AND BANKING (SHRI H.M. PATEL): (a) and (b). (b) if so, what progress has been The Finance Mininster visited only made in giving effect to these propo­ U.S.A. in April 1977. He halted at sals? 39 Written Answers JUNE 17, 1977 Written Answers

THE MINISTER OF FINANCE the aeroplane will be used for trans­ AND HSVENUE AND BANKING portation of the students and teachers (SHRI H.M. PATEL): (a) a large from the plains to the Ashram and number of representations has been back and that the yoga training will received by the Government from be imparted free of any charges. In Business and Trade Associations, sug­ April, 1977, it was learnt that the gesting that sales tax may be replaced aeroplane was being used for other by Additional Excise Duty. purposes in violation of this condition. (b) At present such levy of addi­ The aeroplane was accordingly seized tional excise duty in lieu of salestax on 29-4-77 by the Customs authorities is applicable only to textiles (other at Delhi under provisions of the Cus­ than silk fabrics) tobacco and sugar. toms Act, 1962, for violating the con­ The question of extending the scheme ditions of the exemption. to other commodities had been con­ One Toyota Crown Car gifted by sidered earlier but the State Govern­ Messrs. S.M. Trading Company, ments had opposed the proposal. The Osaka, Japan to Vishwayatan Yoga Indirect Taxation Inquiry Committee Ashram, New Delhi was imported in is now reviewing the structure of all August, 1971 on payment of duty. No the indirect taxes—Central, State and exemption from customs duty was Local. The question of replacement of allowed on this car. As far as the im­ sales tax by additional excise duty port restrictions are concerned, the will be considered again in consulta­ car was allowed clearance against a tion with the State Governments as customs clearance permit issued by the early as possib e. Chief Controller of Imports and Ex­ ports.

Import of Japanese Car by Shri (c) The aeroplane has been seized Dhirendra Bnhmachari by the Customs authorities at Delhi. *95. SHRI P. K. KODIYAN: Will the Appropriate action will be taken after Minister of FINANCE AND REVE­ completion of the statutory require­ NUE AND BANKING be pleased to ments of show cause notice, affording state: opportunity to reply, personal hear­ ing, taking of evidence etc. (a) whether Shri Dhirendra Brahm- achari has imported a U.S. make small executive plane and a Japanese Release of Smugglers detained under Car; COFEPOSA (b) if so, whether it was done vio­ •96. SHRI M. KALAYANASUNDA- lating duty exemption conditions and RAM: other regulations of Government; and SHRI K. MAYATHEVAR: (c) if so, what action has been taken against the persons who are Will the Minister of FINANCE AND responsible for that? REVENUE AND BANKING be pleased to state: THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI (a) whether the smugglers held in H. M. PATEL): (a) and (b). One the wake of emergency under Maule Aeroplane was imported from COFEPOSA have been released; and USA as a gift to Apama Ashram, (b) if so, a brief account thereof? Mantalai, District Udampur (J & K) in July 1976 under cover of a cus­ THE MINISTER OF FINANCE toms clearance permit issued by the AND REVENUE AND BANKING CCI&E. The aeroplane was exempted (SHRI H. M. PATEL): (a) and (b). from payment of custom* duty sub­ During the period of internal emer­ ject, inter-alia, to the condition that gency, 2015 smugglers and foreign 41 Written Answers JYAISTHA 27, 18#0 SAKA ( ) Written Answers

exchange racketeers were detained (d) if so, what further action is under tile Conservation of Foreign contemplated against them? Exchange and Prevention of Smuggl­ ing Activities Act, 1974, under the THE MINISTER OF FINANCE orders issued by the Central Govern­ a n d Revenue a n d b a n k in g ment and the various State Govern­ (SHRI H.M. PATEL): (a) Till the ments. Out of these, 1723 detenus have revocation of internal emergency by been released from detention and 292 the previous Government 275 per­ such detenus were in actual detention sons had been detained under the as on 4-0-77. orders Of the Central Government, under the Conservation of Foreign Proposal to lift Ban on Import of Exchange and Prevention of Smuggl­ Capital Goods ing Activities Act, 1974. Out of this, 179 persons were in actual detention. •97. SHRI M. N. GOVINDA NAIR: Will the Minister of COMMERCE (b) After the revocation of internal AND CIVIL SUPPLIES AND CO­ emergency, till 4-6-1977, 164 persons OPERATION be pleased to state: out of those actually detained were (a) whether Government are con­ released and 16 persons are now in sidering the lifting of ban on the im­ detention. port of certain capital goods; and (c) No Sir, reports received do not (b) if so, the reasons thereof? indicate increase in smuggling. THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ (d) Although smuggling continues OPERATION (SHRI MOHAN to be effectively contained, anti-smug­ DHARIA): (a) and (b). It is not pro­ gling measures have be§n reinforced posed to lift the ban on the import .of and field formations have been ins­ certain capital goods which are indi­ tructed to take stringent action against genously adequately and efficiently smugglers under the normal law. The manufactured. To safeguard the in­ measures include strengthening of in­ terests of the indigenous industry is vestigation and intelligence set-ups, one of the basic objectives of the im­ rummaging of ships arriving from sen­ port policy and no imports to the sitive ports and -patrolling of vulner­ detriment of the indigenous industry able areas on the sea coast and the will be allowed. main transport routes.

Release of persons detained under COFEPOSA Proposal to construct Airports at Kangra Valley and Simla •98. SHRI F. H. MOHSIN: 'Will the Minister of FINANCE AND REVENUE •99. SHRI DURGA CHAND: Will AND BANKING be pleased to state: the Minister of TOURISM AND CIVIL AVIATION be pleased to state: (a) how many persons were de­ tained under the Conservation of For­ (a) whether a large number of for­ eign Exchange and Prevention of eign tourists visit Dharamsala, Kulu, Smuggling Activities Act by the pre­ Manali, Delhousie and other places of vious Government; tourist interest in Himachal Pradesh; (b) how many have been released now and how many are In detention (b) whether there is any proposal as yet; to construct airports at Kangra Valley and Simla; and (c) whether smuggling has increas­ ed Since the release of detenus; and (c) if so, the main featuies thereof? 43 Written Answers JUNE 17, 1977 Written Answers 44

THE MINISTER OF TOURISM Revision ofthe Statutory Minimum AND CIVIL AVIATION (SHRI PUR- Price of Natnnd Bobber USHOTTAM KAT7SHIK): (a) Dhara- msala, Kulu, Manali, Dalhousie and 769. SHRI G. Y. KRISHNAN: Will other places of tourist interest in Hi­ the Minister of COMMERCE AND machal Pradesh are usually visited by CIVIL SUPPLIES AND COOPERA­ a large number of domestic tourists. TION be pleased to state: However, eversince the opening of cer­ tain restricted areas for trekking, a (a) whether a delegation of the large number of foreign tourists have Indian Small Rubber Growers' Asso­ also started visiting Himachal Pradesh. ciation of Kerala has submitted a memorandum demanding revision of (b) and (c). There is no proposal the statutory minimum price of at present to construct an aerodrome natural rubber; and in Kangra Valley. Some preliminary (b) if so, the reaction of Govern­ studies have been made about the ment thereon? feasibility of constructing an aero­ drome at Simla, but due to paucity of THE MINISTER OF * COMMERCE funds, the project has been deferred. AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ Return of Imported Edible Oil by RIA): (a) Yes, Sir. Vanaspati Factories (b) The matter is under considera­ tion. *100. SHRI M. RAM GOPAL REDDY: Will the Minister of COM­ MERCE AND CIVIL SUPPLIES AND World Bank Aid to Development of COOPERATION be pleased to state: Bombay High

(a) whether certain vanaspati fac­ 770. SHRI K. MALLANNA: Will tories in the country have returned the Minister of FINANCE AND RE­ the imported edible oil supplied to VENUE AND BANKING be pleased them by a Government Agency as it to state: was found to be of inferior standard; (a) whether he paid a visit to (b) if so, the facts thereof; Washington recently to get financial aid from the World Bank; (c) the loss sustained by Govern­ (b) if so, whether India has request­ ment in this regard; and ed the World Bank to give financial (d) the steps taken to dispose of aid for development of Bombay High; the sub-standard edible oil? and (c) if so, the outcome thereof? THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ THE MINISTER OF FINANCE OPERATION (SHRI MOHAN DHA­ AND REVENUE AND BANKING RIA): (a) No, Sir. (SHRI H. M. PATEL): (a) No, Sir. I visited Washington in the last week (b) and (c). Four vanaspati facto­ of April, 1977 to participate in the ries have claimed compensation from meetings of Group of 24 Ministers, the the STC, for moisture content in the Joint Fund Bank Development Com­ imported palm oil supplied to them. mittee and the Interim Committee of The claims amount to about Rs. Governors of the International Mone­ 1,54,550/-. The claims received are tary Fund. under examination by 'the STC. (b) and (c). Negotiations relating (d) There is no sub-standard edible to 150 million loan from the World oil whh STC for disposal. Bank for Phase III of the Bombay 45 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers 46

High Project were completed on 2nd June 1977 in Washington. It is ex­ pected that the loan agreement will ftnj ftnw w % be signed shortly. 7 7 3. *fhm: w*jt firw ?r*n tihw ifaiT w t ^ Interest on Bank Loans to Educational Institutions ^t ^>MI fa

771. SHRI R. K. MHALGI: Will (*r) 9PTT TT5TFTR the Minister of FINANCE AND RE­ ^TT¥ V f ^ - fq#q VENUE AND BANKING be pleased to state: *rt sfk snftpF 4f^mcTi | ; *rlT (a) whether in April, 1977 Govern­ ment of India have received written (^r) ft, rft Pr>a»i\ fapf representation from Maharashtra re­ questing them to charge interest on Bank loans to educational institutions afiTr WT f. srffc *Tf lfl5Rlli at the rate of 4 per cent and not at the rate of Rs. 12 J per cent; and ^ft ft srmt ?

(b) if so, what action Government f*w 'Tfwl^Hii' ^T9T:

77 2. : WT30 ^3FT, TO55Tc\ 1 1980 ?Tk 31 feT^T, 19781 hhtt finnan ft snrTift 1 f^TT ^ flTSRTt Multinational Corporation i t SRTT fwTZT 3TT f ? 774. SHRI D. B. CHANDRA fer GOWDA: Will the Minister of FIN­ ANCE AND REVENUE AND BANK­ ING be pleased to state: vnt («ft grota* vMww) : STtnrt ^ w t w (a) the number of multinational corporations functioning at present in the country; and sfa % STRRJt (b) the amount remitted abroad by SHT^T | ij these units during the last three years 47 Written Answers JUNE 17, 1977 Written Answers 48 in form of profit And dividends, and the amount of foreign exchange earn­ (»t ) * r af g*r: *ar *nt*r wft ed by India during this period, year- ^nM ? wise as a result of the operations of these Corporations? THE MINISTER OF FINANCE AND vrnfrv gfw wh; REVENUE AND BANKING (SHRI *wt («ft *ft^ mftin) : H. M. PATEL): (a) As on 31-3-1976 ( t ) % (*r). f^r tftryfterrPqqT (latest period for which information is available) there were 171 Subsidia­ % aTTMK ftw i( rTSIT ’trrf'TfT ries and 481 Branches of foreign com­ ^ T R T 7 23 1967 *7 ^ T T 5TT panies operating in India. There is no precise definition of multinational ^ «rtr iif 1 wjHt, 1963 % s t p j corporation. Hence for the purpose §*rr «rr 1 ^rrc to t rfoff of the question, information is given ^fr % Nf

(Rs. crores) £fnr; ?riw^ f I *r?TffT

1973*74 45-57 ^ s n r i, :=n r r yl^fiPi^t, 1974-75 20-63 W *T, fafT, tfo*T ?T*TT ^TT 3% ’ET^T *975-76 34*42 faf*rer t fcnrcfta vr^ rm r ^t tft Information about the foreign ex­ change earned by these companies + * I < if * 'aT JRT ^ I during this period is not readily avail­ able. f^TST it ^t ilf 5HTf?T UTTW, fr o % jfta *Tq>.TT % f^rrr jtM t ^rqr ?*t JT fer + 'i 4 + k t ^ t

?nrEr *t*ht t t %z t < srrt f 1 T 9f f 775. : w * r fn*«7 % Tffwf Tt ‘^■fr 75^ T r f ^ ^ 2 t t t rTOT TTTlfTV «TpT ^ 3 ^rf, 1976 ^'r f f «ft 1 irr^'t ^ ^TT»T 3Ft f*F • tfr^ ?rf*PTR r> 5T

(w) wr 7* fa n it m srr^ a m R rPTT t f ^ » ^TRFSrt fWTSfhT ^ r f s g r f f^TT *PTT $ T l4 <»t<) r ^ H < , 1976 it v f e ft , ?ft WT 4 ?ft ^r% ^ Rrfirfwt ^>t V^HV>\ f w I 1976 if VTfipj if j f 49 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 50

Staff carrying field and tour respon­ I. iffawTta * $ swr« ssptt % fafr sibilities draw travelling allowance tor qfTJTWpmff fuzr, % and other allowances as may be appli­ vrRT-fseir sr t dT 7Tt£T fccHl it'AKifl'JlH 4*lH ^>T Will the Minister of TOURISM AND STFTTW ^*T ’TVT f; 1 1077 established recently to four places of Madhya Pradesh inspite of the adverse I; ^TTT JTf^prftlT #3^ Wfr HtTT^HT opinion of the experts submitted in t ' a report earlier; and (b) the extent of loss of revenue per month to Indian Airlines as a result thereof? Staff working in Export Inspection THir MINISTER OF TOURISM Agency AND CIVIL AVIATION (SHRI PURUSHOTTAM KAUSHIK): (a) 776. SHRI VAYALAR RAVI: Will In order to provide much needed air the Minister of COMMERCE AND connections in Eastern Madhya CIVIL SUPPLIES AND COOPERA­ Pradesh, the route of Indian Airlines TION be pleased to state daily HS-748 service Delhi-Gwalior- Bhopal-Indore-Bombay and return was re-adjusted by omitting Gwalior (a) whether Export Inspection Agency is treating its staff engaged in and including Jabalpur and Raipur on inspection work and laboratory work two days a week. as two different categories and their (b). Since Jabalpur and Raipur working conditions and other facilities differ; and were linked only in May, 1977, the financial results are not yet known. (b) if so, the reasons therefor? Proposal to repeal Enemy Property THE MINISTER OF COMMERCE Act. 1966 AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ 778. SHRI BASHIR AHMAD: Wili RIA) (a) and (b). The staff engag­ the Minister of COMMERCE AND ed in inspection work and the staff CIVIL SUPPLIES AND COOPERA­ engaged in laboratory are shown se­ TION be pleased to state whether parately under the various schemes. Government propose to repeal the Their nature of duties varies from Enemy Property Act, 1966? post fo post depending upon the res­ ponsibilities and functions attached THE MINISTER OF COMMERCE to them. The working hours also AND CIVIL SUPPLIES AND CO­ vary for the same reasons. OPERATION (SHRI MOHAN 5i Written Answers JUNE 17, 1977 Written Answers

DHARIA): There is no proposal to ed balance sheets of the ILTDC dis­ repeal the Enemy Property Act, 1968. closed any contingent liability on ac­ count of any claim against ILTDC for payment of customs duty. Alleged In e fiM tle s by India Tobacco Co. The Madras Customs House had asked the ILTDC in October, 1972 to show cause why customs duty amount­ 780. SHRI JYOTIRMOY BOSU: ing to Rs. 90.77 lakhs should not be Will the Minister of FINANCE AND recovered from it on a consignment of REVENUE AND BANKING be pleas- unmanufactured Indian tobacco re­ ed to state: imported by th* Company in July, 1972 at Madras. This claim was dis­ (a) whether India Tobacco Co. Ltd. puted by the Company, but in May, (formerly Imperial Tobacco Co. 1975 the Madras Customs House con­ Ltd.) while purchasing the Indian firmed the demand. The Company Leaf Tobacco Development Co. did not preferred an appeal against this de­ disclose Ra 90 lakhs customs duty mand in August, 1975 which was re­ claim neither to its shareholders nor jected in May, 1976. The Company to the Controller of Capital Issues filed a revision application which was while obtaining approval for purchase; also rejected in October, 1976. defrauding the country to the extent of Rs. 90 lakhs in foreign exchange; The Company then represented the matter to the then Minister of Reve­ (b) whether the price paid (Rs. 2.15 nue and Banking in October, 1976. crores) approved by Government is In this representation, the Company much higher than what was mentioned again pointed out that it had paid the in the company’s original application; central excise duty when the reimpor­ (c) whether the foreign share­ ted consignment was cleared for holders of both the companies (India manufacture of cigarettes. While Tobacco Ltd. and Indian Leaf considering this representation, it was Tobacco Development Co. Ltd.) are noted that the Madras Customs House the same; and should not have released the reim­ ported consignment without having (d) whether the erstwhile Minister charged the customs duty equal to the for Revenue and Banking Shri Pranab central excise duty leviable thereon. Mukherjee, Chairman, Central Board The reimported consignment had been of Customs and Excise, against whom taken into excise bond and cleared for there are serious allegations had done use in the manufacture of cigarettes. this under verbal orders of the erst­ On the basis of the use to which the while Prime Minister, Smt. Indira reimported consignment was put, the Gandhi? correct customs duty equal to central •excise duty leviable thfereon should have been Rs. 11.4 lakhs at per Rs. 5 THE MINISTER OF FINANCE AND per k g. The Madras Customs Bouse REVENUE AND BANKING (SHRI had, however erroneously raised a H. M. PATEL): (a) The India To­ demand for customs duty at the bacco Company Ltd. (ITC) and the highest rate of central excise duty of Indian Leaf Tobacco Development Co. Rs. 40 per kg. applicable to tobacco Ltd. (ILTDC) applied jointly on 27th used in the manufacture of smoking April, 1974 for permission for the sale mixtures. At the stage of consideration of the Indian business of ILTDC to of the representation of the Company, ITC. The approval of the Govern­ these facts were taken into account. ment to this transaction was given on As the Company had paid the central 24th February, 1976. During this excise duty leviable on tobacco used period neither of them nor the Audit­ in the manufacture of cigarette®, 53 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers 54

though after customs clearance, and (d) The order for exempting the the recovery of customs duty would Company from payment of the cus­ have had the effect of recovering duty toms duty was passed by Shri Pranab twice over, and also because this Mukherjee the then Minister of Reve­ would have acted as an inhibiting nue and Ranking on the file after the factor on exports, it was decided by matter was examined by the Depart­ the Government at the level of the ment concerned. Whether this was Minister on 19th March, 1977 that the done by him under verbal orders of Company be exempted from payment the then Prime Minister is not known. of customs duty equal to the*central Incentives to Private German Invest­ excise duty. ment for setting up Industries in India As the demand for customs duty 781. SHRIMATI PARVATHI KRI- has thus been extinguished, it cannot SHNAN: Will the Minister of FIN­ be said that the Company has de­ ANCE AND REVENUE AND BANK­ frauded the country to the extent of ING be pleased to state: Rs. 90 lakhs in foreign exchange. (a) whether the West German (b) In their original application Foreign Minister had recently visited dated 27th April, 1974, the two com­ Delhi and spoke of the need for more panies had proposed a purchase price incentives for the private German in­ of Rs. 255 lakhs for transfer of the vestment to set up industries in India; the assets and liabilities of the Indian and Branch of the ILTDC as at 31st March, 1973. Subsequently, on 10th May (b) if so, the facts thereof? 1975, the ITC submitted a revised ap­ THE MINISTER OF FINANCE AND plication suggesting a purchase price REVENUE AND BANKING (SHRI of Rs. 255 lahs for transfer of the H. M. PATEL): (a) and (b). The business of ILTDC as at 31st March, F. R. G. Economic Mission, which 1975, taking into account the profits visited India along with the Foreign of Rs. 95.55 lakhs for the years 1973- Minister of FRG, highlighted the 74 and 1974-75. In their final appli­ potential for greater collaboration cation dated 31st July 1975, based on between the countries in the industrial which the Government approval was field and referred to some factors in­ given on 24th February, 1976, the ITC hibiting private German investment suggested a purchase price of Rs. 257 in India. The discussions were of a lakhs, together with repatriation of broad and general nature. It has been 2/3rds of the profits of 1973-74 and agreed during the discussion between 1974-75 amounting to Rs. 63 lakhs. the two Foreign Ministers that an Ex­ After considering the networth and pert Group of officials from German profit earning capacity value of the Ministries and Departments concerned business, the Government approved might discuss such obstacles as may of a purchase price of Rs. 215 lakhs be standing in the way of enlarging for transfer of the business as at 31st and intensifying Tndo-German econo­ March 1975, together with repatriation mic cooperation. of the profits of 1973-74 and 1974-75 amounting to Rs. 63 lakhs. The in­ qtwff ^ jr t % A t r Ttwii crease in the purchase price between 31st March, 1973 and 31st March 1975, was mainly due to the fact that there was no contingent liability in respect 782. €PT fa f Wlf 1&T: WT of leaving/retiring gratuity as at 31st tripi wfr W rit March 1975, because of the setting up of an approved trust fund for taking f ’TT I care of this liability during 1974-75. (t ) M-fdfa *ft^T % (c) ITC and ILTDC had the same foreign shareholders at that time. % f«pT-ftrcr TT^ff 55 Written Answers JUNE 17, 1977 Written Answers

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Handloom Industry fe Kenda (c) and (d). Illegal production of “Crepe'’ by Powerlooms had been one 784. SHRI C. K. CHANDRAPPAN: of the factors responsible for accumu­ Will the Minister of COMMERCE lation of handloom products. Demand AND CIVIL SUPPLIES AND CO­ for Crepe in export market had also OPERATION be pleased to state: fallen. State Governments have been requested to enforce the provisions of the Reservation Order strictly. There had been rise in prices of yarn in the (a) whether Government are last 12 months. Substantial imports aware that the Handloom Industry of cotten and other fibres have been in Kerala is facing a serious crisis; arranged in an effort to meet the shortfall in cotton, due to which yarn (b) if so, the reasons thereof and prices have been ruling high. It is steps taken to meet the crisis; hoped to stabilise prices of yarn in the coming months.

(c) whether the crisis is due to the fact that the handloom product called “Crepe” the production of which is The rise in prices of dyes and chemi­ exclusively reserved for the hand- cals is being met, to the extent possi­ looms is being illegally manufactured ble, by arranging direct bulk supplies by powerlooms besides the problem of from the manufacturers, to the Apex rise in price of yarn and chemicals; Societies and Handloom Corporations. and

(d) the steps Government have taken or intend to take to meet this Misuse Import Licenses situation?

785. SHRI SOMNATH CHATTER- THE MINISTER OF COMMERCE JEE: Will the Minister of COM­ AND CIVIL SUPPLIES AND CO­ MERCE AND CIVIL SUPPLIES AND OPERATION (SHRI MOHAN COOPERATION be pleased to state: DHARIA): (a) and (b). The Hand­ loom Industry in Kerala faced certain (a) the number of cases of misuse problems in the early part of 1977 of import licences reported to Gov. due to accumulation of stocks. For ernment during the period June 26, clearing the stocks, the State Govern­ 1975 to March 20, 1977; ment sanctioned a rebate of 10 per cent on sales from 1st February, 1977. During March and April, 1977 the re­ (b) nature of misuse in each case; bats was increased to 20 per cent shared equally between the Govern­ (c) names and particulars of ment of India and the State Govern­ parties involved; and ment. In addition, a special loan of Rs. 1-25 crores was sanctioned by Gov_ (d) the action, if any, has been or ernment of India to the State Govern­ is being taken on each case? ment to enable them to procure ac­ cumulated handloom cloth from the production units. THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ It has been reported that sales worth RIA): (a) to (d). Information is be­ Rs. 2 crores have been effected during ing collected and will be laid on the rebate period. Table of the House. 45i Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 62

51 W W( ^fa?T v t »rf vfW qw roft % *nwf Jr smfcw tt^ t 7S«. • WT W m ^!T% % %T Minister of COMMERCE AND CIVIL *rrr fa ^rr ^ra rrrt *r% *r *rrpt <*rr % ; SUPPLIES AND COOPERATION be pleased to state: (*?) t!t ft, ?rt jfriprr ^ w (a) whether a special Audit was ^ t t w t * ;T«rr 3% ?n> fasrrf^Rr necessitated to find out the irregula­ rities in the Marine Products Export f w ; s r tr Development Authority; and

(>r) tit ^r*ft qf^ q;*ft srhr (b) if so, the findings thereof? *lf «fr 5TF q ft ft, ?ft 3^ % ¥TT w f W r fjptf; ? THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ ^rfT?T t*tt ?nnfT* wk H f - RIA): (a) After the present Chair­ man, Marine Products Export Deve­ flFTfrar*nr >'«ft»ftf?T«TTfaiT) : (^ ) % lopment Authority took over, some (*T). ^Tf^- f^rTT TT^T ft^T % +rT?t 3T f^TCT gSTT^T feqT w | (a) latest figures separately about the applications received by Govern­ fa f a # o?Tfar s r t «r»rer, ^TT.^m, ment regarding compensation for 9 f^ W H tfe

(b) separate figures of the appli­ with effect from 1-4-1977 atid Indian cants from two areas who received Airlines have included Jabalpur and compensation so far and whose appli­ Raipur on the route of their daily cations are pending and the amounts HS-748 service Delhi-Gwalior-Bho paid so far for the purpose, separately, pal-Indore-Bombay by omitting Gwa. to the applicants from two areas; and lior on two days in a week, with effect from 5th May, 1977. (c) whether date of application from the refugees from former East New services are introduced by Pakistan is proposed to be extended Indian Airline? not only on the basis and a special office is proposed to be of economic viability but also for set up at Calcutta for expeditiously meeting the requirements of backward dealing with their applications? areas with a view to open them up. Traffic considerations are also kept in THE MINISTER OF COMMERCE view. Air-India, while adding new AND CIVIL SUPPLIES AND CO­ stations on their services, keep the OPERATION (SHRI MOHAN DHA­ requirements of traffic in view. RIA)* (a) and (b). The requisite in­ formation is being compiled an^ will be placed on the Table of the House. trar sfK snft wt (c) The date of receipt of claim « t*s : ^TT application from the Indian nationals, Companies etc. whose assets in Paki­ vrfan?a n«n hhiHh * wtr w w ftn i stan were seized by the Government Trft vi?r ^ frqr ’frftr : of Pakistan during and after the Indo- Pak conflict of September, 1965, was earlier extended from 31-12-76 to ( ^ ) w r i975-7« 31-4-1977. The C. E. P. is taking ac­ tion to extend the date for the last rHT faqfa ^ Wrf =T*r time, up to 31st July, 1977. The ques­ JTft SFT IT-7 t ; tion of setting up a branch office at Calcutta is under examination. (ij) *T"fiTT fa^TIT T*

y»' Introduction of New Air Routes wrr k; vrtx %

789. DR. BAPU KALDATE: Will (it) qfe fr, sr^rr V ' the Minister of TOURISM AND q f o r f a P: ? CIVIL AVIATION be pleased to state: (a) whether a number of new air wrf^i'w ?T«n •TPifTv routes have been introduced since 1st H fr rr^ TT ^ «nfrm) : April, 1977; (*r) sftT faq'fa (b) if so, the particulars thereof; %: i t i g J f i and fT*rrf®r, 1975-76 ^ «ftTR (c) whether any feasibility reports (TOT ^PT^fV jrft rT^TT were ordered for examining their eco­ nomic viability? f^nrfrT 401.08 t t THE MINISTER OF TOURISM ffn 1976-77 % ^ AND CIVIL AVIATION (SHRI % gfapT 1976 PURUSHOTTAM KAUSHIK): (a) % 1977 403.74 HTO to (c). Alr-India have included Jed­ dah in their network of air services *nr 1 455 W rit** Answer, JYAISTHA 27, 1899 (SAKA) Written Answer. 66

( 9 ) t f r («t). lity position was somewhat tight. ’WT qf^r#?T pR5Tf15T During March-April, 1977, the posi­ * r i srerrw i $ I tion improved though the prices contL nued to be high. The immediate measures taken by the Government Scarcity af Essential Commodities during March-April, 1977 to improve the supply of essential commodities ‘ 791. SHRI R. V. SWAMJNATHAN: to the consumers include: SHRI PRASANNBHAI MEHTA; (i) Release of more cereals PROF. P. G. MAVALANKAR: through the public distribution SHRI UGGRASEN; system; (ii) removal of the restrictions Will the Minister of COMMERCE on inter-State movement of wheat; AND CIVIL SUPPLIES AND CO­ OPERATION be pleased to state: (iii) increase in the releases of non-levy sugar for the months of (a) whether Central Government May, June and July, 1977; have not been able to lake any action gainst the anti-social elements trying (iv) regulated export of potatoes to exploit the scarcity of essential and onions: commodities; (v) continuance of imports of adequate quantities of edible oils (b) whether there was shortage of through the State Trading Cor­ «^se.itial commodities in various States during the months of March and poration and the private trade for April, 1977, and supply to the Vanaspati industry and for direct consumption; (c) the steps being taken *to have a (vi) arregements for the distribu­ regular supply of essential commodi­ tions of refined imported rapeseed ties in the raarlcet? oil for direct consumption through THE MINISTER OF COMMERCE the State civil supplies organisa­ AND CIVIL SUPPLIES AND CO­ tions at a retail price of Rs. 8.50 a OPERATION (SHRI MOHAN DHA­ kilogram in some high consumption RIA) fa) Enforcement of penal mea­ centres to begin with; and sures against anti-social elements try­ (vii) staggering, to the extent ing to exploit "the shortage of essen­ possible export cement. tial commodities is primarily the res­ ponsibility of the State Governments. As a long term measure, the Go­ The Central Government has advised vernment is working out details of the State Governments to have orders building up a massive public distribu­ issued under the Essential commodi­ tion system for a number or essential ties Act requiring the display of pri- commodities. issued under the Essential Commodi­ ties. The Central Government has initiated action against those licensees Remittances by Foreign Banks arc alleged to have misused the licences given to them for the import 792. DR. VASANT KUMAR PAN­ of edible oils undef the free licencing DIT: Will the Minister of FINANCE •system. AND REVENUE AND BANKING be pleased to state: (b) and (c). Due to shortage in the production in the previous year *of (a) whether Reserve Bank’s ban on some essential commodities like cot­ remittances abroad by. Foreign Com­ ton, oil seeds and pulses, the -availdbi- panies has been defaulted by tome LS—3 67 Written Answers JUNE 17, 1977 Written Answers 6&

Foreign Banks, and if so, which are f a % those bank$ aud what is the amount involved; 793- wm : .A g* l * ^ (b) whether the Reserve Bank has *4T WWTi : ordered the Grindlays Bank to bring baqk to the country Rs. 3.5 crores, WT Iw w t TTHW wrongly transferred under 'Head Office Expenses’9 during 1974 and ^ spt frqT far : 1975; and (w>) WT farT JTaft ?r (c) whether Government have look­ fTFT srV 5TT?5nrrT m3TT V

THE MINISTER OF FINANCE AND REVPprUE AND BANKING Sector Variations between March 26, 1976 (SHRI H. M. PATEL): (a) No, Sir. and M arch 25, Self-rellance continues to be a major 1977 . objective of planning. (b): Does not arise. (i) Small Scale Industry • +215 (ii) Agriculture • • + 2 7 7

Bank Credit (iii) Other Priority Sectors • +282 / 795. SHRl CHITTA BASU: Will the C. Advances to other sectors* (including export credit grant­ Minister of FINANCE AND REVE­ ed to these sectors) • • +833 NUE AND BANKING be pleased to state; , O f which : To Cotton Corporation of India* -f 120 (a) the gross of bank credit during the period from April, 1976 to March, To Food Corporation of India 1977; and (Fertilizer) • • • • J-23 To Jute Corporation of India • 4-9 (I) the share of public sector Indus­ trie:;, private sector, the share in the D. Non-Fojd Credit 'B t C) • -f-1607 agriculture and the small scale indus­ E. Of them D— Export Credit • +219 tries out of it?

THE MINISTER OF FINANCE ♦Includes large and medium industries and wholesale trade. AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) and (b). Complete data on the sector wise and Contingent Workers in Bihar Civil organisation-wise break down of cre­ Audit and Accounts Office dit expansion during the year 1976- 77 have not yet become available. 796. DR. SARADISH ROY: Will the However, provisional data indicated Minister o f FINANCE AND REVE­ by the Reserve Bank of India are set NUE AND BANKING be pleased to out below; - state:

doctoral Deployment of Cit Jit (a) whether Government have re­ ceived any petition from the Bihar (Rs. crorcs\ Civil Audit and Accounts Office Asso­ ciation, Patna demanding to absorb 85 Sector Variations contingent workers in permanent posts; b etw een and M a r c h 26, 1976 and M a rch 25, (b) if so, the reaction of Govern­ _ 1977. ment thereto?

GROSS BANK CREDIT • 2276 THE MINISTER OF FINANCE AND REVENUE AND BANKING O f which : (SHRI H. M. PATEL); (a) Yes, Sir. A. Public Food Procurement Credit* .... r 669 (b) Under instructions from Compt­ B. Advances to Priority Sectors roller and Aditor General's office, the (including export credit gran­ Accountant General, Bihar, has under­ ted to these sectors) • • • + 774 taken a review in this regard and this will be completed expeditiously. 71 Written Answers JUNE 17, 1977 Written Answers

Adfuees/Loaas made by Nationalised affairs of Maruti Group of Companies. Banks and Public Financial Institutions The terms of reference of this Inquiry to Marutt Ltd. Commission, inter-alia, include all matters relating to the securing of 797. SHRI MADHU LIMA YE: Will accommodation, loans or other assis­ the Minister of FINANCE AND RE­ tance from nationalised banks »nd VENUE AND BANKING be pleased other financial institutions by the to state: Maruti concerns, including the eligi­ bility of the said concerns to obtain (a) the total advances and loans— the financial assistance sought for, the secured or unsecured—made by the standard of care with which the ap­ nationalised banks, other public finan­ plications were considered and the cial institutions, and private commer­ measure of conformity to the policies, cial banks to Maruti Limited, Maruti practices, rules and directives for the Heavy Vehicles Limited, Maruti Tech­ time being in force in regard to grant nical Services, Maruti Aviation todate; of such assistance. (b) the break up of these loans and advances institution-wise and company- wise; and

(c) whether these advances and 798. TTWnft : ^TT f«HT loans were made to please the former Prime Minister and her son or whether TTmFV iftr 9? 5FTR they were based on sound lending «pt fTT fr : principles? THE MINISTER OF FINANCE (*r) smrvr 1 sprrf, AND REVENUE AND BANKING 1975 % 31 1976 ^ (SHRI H. M. PATEL): (a) to (c): (rrRr-^p-) ; None of the long term public finan- $al institutions has given any ad< vances or loans to Maruti Group of ( « ) f w f Companies. ’f t S'T tflM I % ^ T R P»>nH

In so far as financial assistance es fe 'ft fTT *T?TT w m given by the commercial banks in­ JHIT 31-3-77 * TTSIRTIT T8T HTJT ?>, tuted a Commission of Inquiry under w ifa s m>w*i ift section 3 of the Commissions of In­ quiry Act, 1952, to enquire into the VT-firaWt % warn if tr* wfav 73 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 74

T !> qf , Minister of FINANCE AND REVE­ WtT »flt tflT TK ^ S^TFT 5TTRT NUE AND BANKING be pleased to state: 5TT ^TTcTT ^ f r 'dH TT WW-TT rim H*T-TT Tt TT^T 15 TTtY V-|i( (a) whether Government are aware that due to the Central Excise’s simpli­ n wfer ?ft*ft I iq^iTTfW WfHT fied procedure that small scale indus­ <5tT-3tT H*T*TT*To 5RR % f^t'** TTTt tries are being ruined since the in­ WW VWWrll ffcft, troduction of this procedure on 1st April, 1976; and i f f fp rfir ^ $ m ^ ^TCT %^r *flT 5>-rTI43fT «Ft (b) whether Government are con­ %f\T TR" 3Ft *n

(b) Government have been keeping «ft*nrc ntsft * t fwfTT fin r m the working of Simplified Procedure under review. As a result of the re­ view, certain improvements have been made recently. An important change 802. ( w r : WT is that henceforth an assessee work­ rnnr *tf ing under the procedure will not automatically cease to be eligible for it if his production increases by over (* ) «ft % 100 per cent (as was the case pre­ viously) but can continue to enjoy 21 *>> fafTC % the benefit until his production ex­ t r > P*hm w>t '3H*0*r fvm *rr ceeds per cent of his base produc­ 200 for farr ft sfor *rnr?r tion or Rs. 5 lakhs, whichever is higher. fa ti h it t «tt ; ift r

(sr) irfe ft, eft *ft irrat ^ ft t ^ t tt Exchange rate between Rupee and ^t 3 ft ^4 ^T% y 1 5 ft Rouble ftcn^nr ft snr^rfh stftt *fr «ft ? 801. SHRI S. KUNDU; Will the Minister of FINANCE AND REVE­ w tr »TPTT fimTTR *rcft («rt NUE AND BANKING be pleased to state: (*«): Ht, ft 3*TT#, 1976 ^ t-2662.50 (a) whether the exchange value of ^nrc* F

THE MINISTER OF FINANCE ^ m t in^T *1 HTTT *nfft0 *THft the U.S.S.R. authorities. These nego­ tiations are of a confidential nature »rf «ft, «(5t v ^ P d and it would not be in the public in­ %*TT VRIW+ «Tff «TT iftT *tft ft^PT terest to disclose at this stage the ^tsrt ftWR STTT 3TW ft details of the various issues under conideratlon. *|5t qT5TT I 77 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 78

Tourist Traffic addition, Department of Tourism is prducing tourist literature in Arabic 803. SHRI NIHAtt LASKAR: Will Persian, Thai, Japanese and Chinese the Minister of TOURISM AND CI­ languages. VIL AVIATION be pleased to state: (iii) Introduction of “Travel As (a) whether tourist traffic declined You like” Tickets’ on Indian Rail­ this year and last year and if so, the ways and “Discover India” Tickets main reasons therefor; On Indian Airlines payable in foreign exchange for the benefit of foreign (b) what was the total decline this visitors. Tear in comparison to the previous (iv) Relaxation of entry formali­ year; and ties such as issuance of landing per­ mit on arrival to be valid for 30 (c) the steps being taken to improve days. the tourist traffic? (v) Organisation of familiarization THE MINISTER OF TOURISM tours to India of travel writerB’/tour AND CIVIL AVIATION (SHRI operators from different parts of the PURUSHOTTAM KAUSHIK): (a) world to enable them to see our and (b). No, Sir, there was no decline facilities. in tourist traffic during the last two years. On the contrary, the tourist H ftfiw WMf fiT traffic has shown an upward trend during the last two years. As com­ pared to 465,275 foreign tourists who visited India during 1975, the tourist 804- *fl WPft SHTM HTW : arrivals during 1976 were of the wt t o *flr Ow «h order of 533,951 recording an increase ^ «Mi*i ^ frrr fw> : of 14.8 per cent. Ducing January to May, 1977, 243,985 foreign tourists (*P) WT t visited India and recorded an increase of 19.7 per cent over the correspond­ qr s j w w * ^ if ing period of 1976. vnfiw P rt ^ ; (c) Although tourist traffic to India is having healthy growth, the Depart­ (&) vrWN? ment of Tourism is intensifying its efforts to achieve even better results. Among the steps being taken for this fWtr T O R ^ fTT purpose are: — ^ | TOT wn fW T | ; (i) Opening of new tourist offi­ ces in those areas of the world where there is good potential for (»r) v\r sftrm tourist traffic to India. New offices % f^rfafT^r wnflr %fk steffcn will be opened during the current year in Tehran (Iran), Bangkok wnff (Thailand), Kualalampur (Malay­ fTT ^ ^ ^T$*TT I sia), Perth and Melbourne (Austra­ lia). m44i wVt (tft JWftm (*) ^ (*t): (ii) Production of tourist litera­ Sifa %: *RPTcT q ^ ture on India in 13 European langu­ ages instead of 5 as at present. In 79 Written Answers JUNE 17, 1977 Written Answers g o

% w rTTfrjta «r4nf % fa:* *fef?T (firfir)ip fiwt «w r #r qrcrr % faq gfaamt Tt (T) *!TT Tfe^TT (fagTT) *Z M ^ ^ t «T^WTT T t *T ^ T t t I ST^RT^t far •t t frnrif hrari *ftr iftrsr *ft «fwTfa riar WT vhnrra str* t t ^t t *t« r* ?r?ft ?ft i ? TfT $ I nf*i*i w i mufkv 5^ ^ fifw i gR ir rm ??t^t Uti ?fwr ttwfw wVt «fr n *NV vf. f f K h p t i [ z f*nr (srro y *f R 9T*PTT TT f^ ftw 1!! T T fF T 7! T t hTTq'TTT f f 57 THTT T=T% =TTfw. ^ T T TT -pT: SH5R % ^ F T f f frrHT «FT, »fmT ^rpfy, WW-VrW ffrT fonr ht ?tt i arrrr? fsrc. ?fn

Money mobilised by Compulaory (»T) wm S*T JTTTT «PT*T7 *T ^ fa Deposit Scheme TTJ^T *TTTTT T it ■jimi T t *Tf vm^\ *?fm »ttttt t warm it ? 807. SHRI K. A. RAJ AN: SHRI S. R. DAMANI: fin jwi t h w liVr iftm wft SHRI S. G. MURUGAIYAN: (*t q«o quo qs*) : ( t ) *t »t). Will the Minister 0f FINANCE $^TT ™rf*iT sft 3|T 7ft £ *ftr *pTJT- AND REVENUE AND BANKING «nnr t t Tf% 5fr Tmrift 1 be pleased to state the total sum of 8l Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers t o

money mobilised so far by the Com- Increased Activities of Smuggling o«i plulsory Deposit Scheme? Indo-Nepal Border and Coast of Maharashtra THE MINISTER OF FINANCE AND REVENUE AND BANK­ 809. SHRIMATI MRINAL GORE: ING (SHRI H. M. PATEL): Will the Minister of FINANCE AND' REVENUE AND BANKING? be pleased The gross amount of compulsory de­ to state: posits made by employees of Central and State Governments, local autho­ (a) whether smuggling activity has rities and of private and public sector been again on the increase on Indo- units under the Additional Emolu­ Nepal Border and Coastal areas of ments (Compulsory Deposit) Act, Maharashtra; 1974 upto 3rd June, 1977, was Rs. (b) whether any smuggled goods- 1764.68 crores. have been seized; (c) the value of the goods seized on Payment of Bonos to Employees of Indo-Nepal border and Maharashtia Banks Coast during the month of April* 1977; and 808. SHRI PRASANNBHAI MEHTA: (d) whether any special steps have Will the Minister of FINANCE AND been taken to meet the increased acti­ REVENUE AND BANKING vity of smugglers? be pleased to state:

(a) whether employees of the banks THE MINISTER OF FINANCE and those who were getting bonus have AND REVENUE AND BANKING asked Government to release the same (SHRI H. M. PATEL): immediately; (a) Presumably the question refers to the trend of smuggling after lifting (b) whether this bonus is to be of the Emergency. The reports recei­ given from the back date; and ved do not indicate increase in smug­ gling on Indo-Nepal border and the (c) when the final decision is likely Coastal areas of Maharashtra. to be taken in this regard? (b) and (c). The value of the goods seized on Indo-Nepal border and Maharashtra Coast during the month THE MINISTER OF FINANCE of April, 1977 is reported to be Rs. AND REVENUE AND BANKING 10,31,398 _ and Rs. 24,49,483|- respec­ (SHRI H. M. PATEL: (a) to (c). tively. Government have recently received a number of representations for (d) Anti-smuggling measures are payment of bonus to tank being reinforced. These measures in­ employees. In terms of Payment of clude opening of new preventive Bonus (Amendment) Act, 1976, bank check-posts on the Indo-Nepal border, employees are excluded from the pur­ exercising greater vigilance all along view of the Payment of Bonus Act, the Indo-Nepal border and the Coastal 1965. The bank employees were, how­ areas of Maharashtra, reorientation of ever, paid ex-gratia in lieu of bonus intelligence network to get qualitative for the year 1974 and 1975. The ex- information about smuggling, patroll­ gratia payment for the year 1976 has ing of vulnerable areas on the Maha­ not yet been determined. The policy rashtra Coast and land routes on Indo- regarding payment of bonus in vari­ Nepal border and intensive rummag­ ous industries is separately under re­ ing of ships arriving from sensitive view of the Government. / ports. Written Answers JUNE 17, 1977 Written Answers 84

Civil Air-worthinesS' Equipments for Corporations by merely keeping their Air Safety applications under consideration for more than three years; and 810. SHRI SHYAMAPRASANNA BHATTACHA'RYYA: (b) if so, the names of such Com­ SHRI MUKUNDA MANDAL: panies? Will the Minister of TOURISM AND THE MINISTER OF FINANCE CIVIL AVIATION be pleased to AND REVENUE AND BANKING state; (SHRI H. M. PATEL): (a) No, Sir.

(a) whether All-India Aircraft Engi­ (b) Does not arise. neers’ Association has expressed mis­ givings that the recent change in the Civil air-worthiness requirements Income Tax Commissioners belonging (CAR) could jeopardise air safety; to Scheduled Castes and Scheduled Tribes (b) whether the Indian Airlines 812. SHRI SHEO SAMPAT: Will the authorities have refuted that; Minister of FINANCE & REVENUE AND BANKING be pleased to state: (c) whether any thorough examina­ tion has been done to remove their (a) the total number of Inome-tax misgivings; and Commissioners in the country;

(d) if so, the facts thereof? (b) the number of persons belonging to Scheduled Castes and ScheJuled Tribes among them; THE MINISTER OF TOURISM AND CIVIL AVIATION (SHRI (c) the particular reason for low PURUSHOTAM KAUSHIK); representation of these categories of (a) Yes, Sir. persons on higher posts; and (b) to (d). After the revised Air­ (d) the steps taken to ensure ade­ worthiness requirements were enfor­ quate representation of the persons of ced, a special report was called for an these reserved categories on higher the working of the Engineering posts? Organisations of *he two Corporations THE MINISTER OF FINANCE AND from the two Corporations—Indian REVENUE AND BANKING (SHRI Airlines and Air India, as well as H. M. PATEL): (a) and (b). The from the concerned Regional Inspec­ number of Commissioners of Income- tion Offices of the Civil Aviation tax including these posted as Directors Department. The reports received in the Directorates under the Central from these sources do not indicate any Board of Direct Taxes is at present 72. lacuna in the working of the Engineer­ None of them belongs to a Scheduled ing Organisations of the two Corpora­ Caste or a Scheduled Tribe. tions, as per Revised Airworthiness Rules. (c) and (d). Appointments to the posts of Commissioners of Income-tax are made by promotion of Assistant Multinational Corporations Commissioners of Income-tax on the basis of selection on merit. The eli­ 811. SHRI MUKUNDA MANDAL; gible officers are considered for selec­ Will the Minister of FINANCE AND REVENUE AND BANKING be pleased tion for promotion, in the order of their seniority and in accordance with to state: the prescribed procedure, by a duly (a) whether a new lease of life was constituted Departmental Promotion given to some of the multinational Committee. 85 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 86 • • . sr * ■> •» •The' Ultimate 'saliry in respect of Re-inatatemeat of dlamissed pilots ppsts of Conunttsioiwrs at Income-tax- is above Rs. 2250/- and no concession­ 814. SHRI DINEN BHATTACHARY- al treatment is provided for in the YA: Will the Minister of TOURISM matter of promotions by selection to AND CIVIL AVIATION be pleased to such posts. In the selections so far state: made for pronpotions to the posts of Commissioners of Income-tax, the As­ (a) whether Government are con­ sistant Commissioners of Income-tax sidering any proposal to reinstate all belonging to Scheduled Castes/Sche­ the dismissed pilots who participated duled Tribes were not senior enough in strike during the Congress regime; to be included in the field of conside­ and ration. There are at present 49 Assis­ tant Commissioners of Income-tax (b) the number of pilots dismissed? who belong to Scheduled Castes/Sche­ duled Tribes and! depending on avail­ THE MINISTER OF TOURfSM AND ability of vacancies and the pace of CIVIL AVIATION (SHRI PURU- promotions, they can in course of time SHOTAM KAUSHIK): (a) and (b). look forward to be considered for Of the three pilots of Air-India who selection for promotion to the posts of were removed from service for their Commissioners of Income-tax. role in the illegal strike in the Corpo­ ration in 1974, two have already been Banking Commission re-instated. The case of the third is. sub judice. 813. PROF. P. G. MAVALANKAR: Will the Minister of FINANCE AND REVENUE AND BANKING be pleased to state: Interim Report of Indirect Taxes Enquiry Committee (a) the progress of the work so far done by the Banking Commission set 815. SHRI SAMAR MUKHERJEE: up under the Chairmanship of Shri Will the Minister of FINANCE AND Manubhai Shah; REVENUE AND BANKING be pleased to state: (b) whether the Commission’s per­ sonnel are being changed and/or ex­ (a) whether the Committee appoint­ panded; and ed to review structure of indirect taxes headed by Shri L. K. Jha, has vc) when Is the Commission expect­ presented its interim report to Gov­ ed to submit its report to Government? ernment; and THE MINISTER OF FINANCE AND REVENUE AND BANK­ (b) if so, the salient points of the ING (SHRI H. M. PATEL): report? (a) Government, after a careful THE MINISTER OF FINANCE consideration of all aspects, decided AND REVENUE AND BANK­ that it would be better to wind up the ING (SHRI H. M. PATEL): Commission that was set-up under the (a) Yes, Sir. Chairmanship of Shri Manubhai Shah to go into the question of restructur­ ing of public sector commercial bank­ ing system. Accordingly, the Com­ (b) The Report is treated as a con­ mission ceased functioning with effect fidential document at present. How­ from 22nd April, 1977. ever, a* summary outlining the salient points of the Report will be placed on (b) and (c). Does not arise. the Table of the House in due course. *7 Written Answers JUNE 17, 1977 Written Answers gg

BaMs on former places of lakhs were retained under orders pas- and Gwalior . *®d under Section 132(5) of the In­ 816. SHRI HARI VISHNU come Tax Act, 1981. Beside§ arti­ KAMATH: Will the Minister of cles valued at Rs. 107.02 lakhs were FINANCE AND RE\rENUE AND placed under prohibitory orders under BANKING be pleased to state: Section 132(3) of the Income-tax Act. 1961 pending verification of the claims- (a) whether during the period of that the said articles had been disclos emergency there were raids on and ed in the Wealth tax returns: these extensive searches of the former pala­ articles have since been released/are ces of Jaipur and Gwalior; in the process of release to facilitate (b) whether vast hidden treasures payment of undisputed tax demand were discovered; etc.

(c) if so, the value thereof and how Regular a&sesment proceedings are they were dealt with; and in progress.

(d) whether there is any truth in Particulars of the gold, jewellery, widespread reports that the then Prime and articles seized by the Gold Con­ Minister negotiated a Drivate deal trol authorities from Jai Vilas Palace, Gwalior in October and November, with Shrimati Gayatri Devi and Shri- 1975 are as follows: mati Vijaya Raje Scindia and stopped further search of the palaces and vaults? Description Qty. in K gs. Value (Rs. in lakhs)

THE MINISTER OF FINANCE AND REVENUE AND BANK­ Primary Gold ING (SHRI H. M. PATEL): Gold articles (a) to (c). A search for treasure was carried out by the Income Tax autho­ Gold ornaments rities at Jaigarh Fort, belonging to the erstwhile ruling family of Jaipur from T otal 10th June, 1976 under an agreement entered into between the Government of India and Col. . How­ Out of the total quantity of Primary ever no treasure was discovered, Gold mentioned above round golc« and the search was therefore abandon­ bars in the shape of ‘Karas’ weighing ed in November, 1976. about 50 Kgs. and valued at Rs. 25 lakhs were also seized under the Cus­ Searches were conducted jointly by toms Act. the Income-tax and Gold Control authorities in Jai Vilas Palace, belong­ Adjudication proceedings under the ing to the erstwhile ruling family of Gold Control Act/Customs Act are in Gwalior during the period from August, 1975 to November, 1975. progress.

(d) Searches at the former Palaces As a result of these searches arti­ of Jaipur and Gwalior were concluded cles valued at Rs. 99.53 lakhs were only after their completion in the nor- seized by the Income-tax authorities out of vrtiich articles valued at Rs. 98.97 mal course. 89 Written Answer* JYAISTHA 27, 1899 (SAKA) Written Answer*

OMtttoa «f Money to Congress Parly (a) whether the Director of the by Parties/Badness House Vishwayatan Yogashram, New Delhi has filed his income tax and wealth 817. SHRI MUKHTIAR SINGH tax returns for the last three years; MALIK: Will the Miniater of FINANCE AND REVENUE AND BANKING be (b) if so, the amount of tax paid pleased to state: during these years; and (a) the names of the parties/busi (c) whether Government are aware ness houses who have donated money that the said person has built proper­ to the Congress party in the names of ties in Delhi and elsewhere and evad­ advertisement in the Souvenir of the ed large amount of income and if so, party during January, 1977 to March, whether Government propose to reopen 1977; these cases? (b) whether their advertisements have been printed in the Souvenir; and THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI (c) the amount of money paid by H. M. PATEL): (a) Shri Dhirendra each party/business house? Brahmchari, Director of the Vishwa­ yatan Yogashram, New Delhi filed his THE MINISTER OF FINANCE AND returns of income for the assessment REVENUE AND BANKING (SHRI years 1974-75 and 1975-76 on 22-3-77 H. M. PATEL): (a) The Indian Na­ and for 1976-77 on 25-3-77. No wealth- tional Congress maintains its accounts tax return has Tieen filed so far. on calendar year basis. Under the existing provisions of the I.T. Act, (b) The details of income taxes paid 1961, the income for calendar year bv Shri Dhirendra Brahmchari in res­ 1977 will be assessable for the assess­ pect of the last three assessment year* ment year 1978-79. The return of are given below: income tor assessment year 1978-79 will become due to be filed after 1st April, 1978 but before 30th June. 1978, Assessment Taxdc- Ad- Self Total Y e a r ducte

HHWji f t fiww (hiroi (b) whether tl}e State Bank con* ducted any depaiftmental inquiry in­ to this case and if so, the findings 819. IT© TTOSft : fJTT thereof; and HHK (c) the measures taken so far and ffTT ^rrJT % : those proposed |or future to check recurrence of such incidents in the (*;) vn v> fw^nr % State Bank or in other nationalised banks? ?n«r w z z ^Trf | *rfr ^t, *TW 5% H*M& ^ THE MINISTER OF FINANCE AND % **TT TRiT f ; «f)r REVENUE AND BANKING (SHRI H. M. PATEL): (a) No, Sir. ( s ) «TRfr % ^ r f w : Jr nFm sit jItwt ? that it had deputed a Senior Official to conduct an investigation into the incident. The Investigating Official wen W\t «jHK U^lnn (tj) cam? to the conclusion that the sys­ iftftw) : (*) «rtr (g ) tem of checks and controls already in VTFTTTT % fw^ ^'rr 1 821- sft JTCTT3T Ul<4 : f^TT I lido-Soviet Joint Programme to study TT3T * Monsoon Data

cTrlH fTTT f 5F : 822. SHRI P. K. DEO: Will the M in ister of TOURISM AND CIVIL ( t>) w t ^ r r Ht A V IA T IO N be pleased to state: «TT% T|f?7'r it ipr-fw ’TT^R % . rfT^TT (a) whether any Indo-Soviet joint *T fVrrqT *t?u f. \ programme to study monsoon data collected from over the equatorial (g ) ^qT STTR-, fjRT «H- Indian Ocean was given effect to- recently; and srrc (f^fTT) Ot i9 7 i -*r (b) if so,, broad outlines of their % irrap-TT s 1 3 1ts v n achievements? THE MINISTER OF TOURISM AND ( ) *rfe ?j, f t -? z-n* CIVIL AVIATION (SHRI PURU- 51^7^ % ^ ^ 79 7 'f'l *1^ f^TT^T SHOITAM KAUSHIK): (a) and (b). «fr ? rological Organisation have planned as part of the Global Atmospheric Re­ search Programme a series of field farT cT^TT TT3T^ wfr *T5rV experiments known as the “Monex” («ft qWo t»*o PTf'w) : (m). to be conducted in 197.9. As a fore­ ffT^TT* rfWf TJ JRFPT ffTTT*TT runner of this, a preliminary observa­ tional research programme is being «m * t % *T>3J5T *rr?9n % WW*, conducted jointly by India and USSR ^ SO,000 *?t ^R^mT ^1# during the period May—August, 1977. 5T»TT TrfVr^rr ^fsrf srt, qr ^tit *rr In this experiment known as Monsoon 77-four Soviet research vessels and T? %'Tta ^ w frcft T O two Indian Naval ships are participat­ fa rm !T;JT*nft % 5W3R % fat* ing and will be recording meteoro­ logical and oceanographic data over ‘it’ JffRT * Jr 5pffl*T ftpfT equatorial Indian ocean, Arabian Seat ^RTT t » ' and the Bay of Bengal. <95 Written Answer* JUNK 17, 1977 Written Answers pQ

Furekaae «f AMw-fM Fluw •eqnest from Kenla OtfM im rt is export more quantity o) Rubber 823. SHRI GAURI SHANKAR RAI: Will the Minister of TOURISM AND 824. SHRI G. M. BAN AT W ALA: Will ' CIVIL AVIATION be pleased to state. the Minister of COMMERCE AND CIVIL SUPPLIES AND COOPERA­ TION be pleased to state: (a) how many Airbus-300 planes have so far been purchased by the (a) whether the Government of Indian Airlines; Kerala has recently requested the Central Government to allow export (b) when were the orders for each of more quantity of rubber; plane purchased so far placed; (b) if so, how much more quantity (c) when each plane was deliver­ has been asked for; and ed by the manufacturers; and (c) the decision of the Central Government in the matter? (d) whether Government propose to purchase any more Airbus planes? THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ THE MINISTER OF TOURISM AND RIA): (a) to (c). Government of CIVIL AVIATION (SHRI PURU- Kerala has requested for export of SHOTTAM KAUSHIK): (a) Three. surplus quantities of rubber. However no specific quantity has been mention­ ed. The question of allowing export of (b) Indian Airlines entered :nto a surplus rubber during the current year Purchase Agreement with M/s. Airbus Industries for purchase of three Airbus is under active consideration. A300 B2 aircraft on 31-12-1974. The Agreement was signed subject to the approval of the Government of India and Indian Airlines making financing Expenditure incurred by AIR India on arrangements acceptable to the Gov­ Sales Promotion ernment of India for meeting the foreign exchange cost of the project. 825. SHRIMATI RENUKA DEVI "Consequent upon the approval of the BARKATAKI: WiU the Minister of Government of India, the order was TOURISM AND CIVIL AVIATION be •confirmed on 29-4-1975. pleased to state:

(c) The three Airbus A300 B2 air­ (a) the total expenditure incurred craft were delivered on the dates indi­ by Air India under the head “Sales cated below>— Promotion*’ during the years 1974- 75, 1975-76 and 1976-77;

( 1) VT-EDV—31st October, 1976. (b) what is the nature of expendi­ ture under this head; and (2) VT-EDW—29th November, 1976. (c) who is the person authorised 43) VT-EDX—29th December, 1976. to sanction this expenditure?

(d) Although Indian Airlines have THE MINISTER OF TOURISM AND the option for purchase of three more CIVIL AVIATION (SHRI PURU- Airbuses, there is no p r o p o s a l for pur­ SHOITAM KAUSHIK): (a). The ex­ chase of more Airbuses at present. penditure incurred by Air-India under 97 Written Antvoert JYAISTHA 27, 1899 (SAKA) Written Answer*

(c) The expenditure on Sales Promo­ Indianisation of Foreign Companies tion is budgetted and approved by Air- India Board. Funds are allocated to 827. SHRI P. K. KODIYAN: Will various regions and the concerned re­ the Minister of FINANCE AND RE­ gional heads incur expenditure which VENUE AND BANKING be pleased is, however, monitored by the Com­ to state: mercial Department in Air-lndia head­ quarters. (a) whether some of the foreign companies operating in India have not complied with the requirements of re­ Calicut Aerodrome structuring their equity holdings in accordance with the provisions of the 826. DR. V. A. SEYID MUHAMMAD: Foreign Exchange Regulation Act; and Will the Minister of TOURISM AND CIVIL AVIATION be pleased to state: (b) if so, what action has been taken against such companies? (a) whether a number of represen­ tations have been made to Govern­ THE MINISTER OF FINANCE AND ment for the establishment of an REVENUE AND BANKING (SHRI aerodrome in Calicut; H. M. PATEL): (a) Some of the foreign companies are yet to comply (b) whether there is a proposal with the directives issued by the before the Government to establish Reserve Bank of India under Foreign such an aerodrome in Calicut; and Exchange Regulation Act regarding Indianisation or dilution of foreign (c) whether there was a proposal equity within the stipulated period. to convert, as a temporary measu-c the existing private aerodrome <+ (b) The Reserve Bank of India is Chelani into a Government aero­ taking appropriate follow-up action in drome for flights of Indian Airlines? all these cases. It is constantly moni­ toring the progress of compliance with THE MINISTER OF TOURISM & the directives issued to FERA compa­ CIVIL AVIATION (SHRI PURU- nies. In cases where the companies SHOTTAM KAUSHIK): (a) Yes, Sir. could not comply with the directives within the stipulated time limit, for (b) A project for the construction some bona fide reasons, resonable ex­ of an aerodrome at Calicut was in­ tension of time was allowed on merits. cluded in the draft Fifth Five Year Companies, which fail to comply with Plan. However, due to increase in the the Bank's directive, are liable for cost of operation consequent on hike penal action under the provisions of in prices of aviation fuel and also their the Foreign Exchange Regulation Act, tljht fleet position, Indian Airlines had 1971 643 US—4. 99 Written Answers JUNE 17, 1977 Written Answers

Representation from Sltolapar Cham­ Disparity in Pay and Allowance In ber of Commerce and Industries re­ Government Service and Government garding direct Tax Laws Undertakings 828. SHRI R. K. MHALG1: Will the Minister of FINANCE AND RE­ 830. SHRI S. D. SOMASUNDA- VENUE AND BANKING be pleased RAM: Will the Minister of FINANCE to state: AND REVENUE AND BANKING be pleased to state whether any action (a) whether Government have is taken/proposed to eliminate the received a written representation in disparity in pay and allowances for the month of April, 1977 from the similar jobs in Government Service Sholapur Chamber of Commerce and and Government Undertaking’ Industries (Maharashtra) in regard to the Direct-Tax laws; and THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI (b) if so, what action has been H. M. PATEL): The present wage taken on the said representation? structure of Central Government em­ THE MINISTER OF FINANCE AND ployees is based on the recommenda­ REVENUE AND BANKING (SHRI tions of the Third Central Pay Com­ H. M. PATEL): (a) No, Sir. Such mission. The Commission was also a representation does not appear to of the view that there should be a have been received. mechanism to ensure that pay scales of public sector undertakings should (b) Does not arise. be fixed with due regard to possible repercussions on other public sector undertakings and on the Government’s own scales of pay. The public sector Taking over the Management of enterprises are required to obtain the Dhulia (Maharashtra) Textile Mill prior concurrence of Government to any general revision of pay and allow­ 829. SHRI R. K. MHALGI: Will ances of their employees. In examin­ the Minister of COMMERCE AND ing such proposals, Government take CIVIL SUPPLIES AND COOPERA­ care to see that unreasonable dispari­ TION be pleased to state when Gov­ ties are avoided in the wage structure ernment have taken over the manage­ as between different enterprises in ment of the Dhulia (Maharashtra) the same industry or region and as Textile Mill? between public enterprises on the one hand and Government Departments THE MINISTER OF COMMERCE on the other. AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ RIA): The management of Dhulia Transfer of pending LXC. Policies Textile Mills, earlier known as New from Calcutta Divisional Office Pratap Spinning, Weaving and Manu­ facturing Mills, Dhulia, vested in the 831. SHRI S. D. SOMASUNDARAM: Central Government by virtue of the Will the Minister of FINANCE AND provisions of the Sick Textile Under­ REVENUE AND BANKING be pleas­ takings (Taking Over of Management) ed to state: Act, 1972 with effect from 31st Octo­ ber, 1972. Later on, this mill was (a) whether Government propose to nationalised with effect from 1st April, expedite transfer of L.I.C. policies 1974, under the Sick Textfle Under­ pending transfer from Calcutta divi­ takings (Nationalisation) Act, 1974. sional office to Madras divtelonal to i Written Answers JYAISTHA 27, 1899 (SAKA) Written Answert office due to transfer of the policy to Rs. 17.60 and Rs. 22.00 in 1969 res­ holders; and pectively. Despite improvement in the LIC’s mortality experience ana - (b) bow many such applications are in the return on its investments, no pending for transfer and the causes further increase in the bonus has for the delay in transferring such poli­ been possible since 1969 owing to the cies? I adverse effect of inflation on its ex­ penses. THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI (c) To counteract the adverse effect H. M. PATEL): (a) and (b). The of inflation, the LIC is taking steps to LIC is taking steps to reduce the maintain improvement in the return time-lag for transfer of policies from on its funds, by a judicious choice of one office to another. investments within the statutory framework, and to limit its expenses At present 28 applications are pend­ by budgetary control measures. With ing for transfer of policies from the a view to containing its expenses, the Calcutta Divisional Office of the LIC LIC has restricted recruitment of staff, to the Madras Divisional Office. In curtailed overtime drastically and 9 out of these cases, policies are in has also made a detailed exercise to the processs of transfer, while 14 simplify procedures, so that the cases are pending for want of policy Offices can cope with increased volume dockets and premium position and in of work wihout increase in staff the remaining 5 cases, which relate to strength. Salary Savings Scheme policies, the premium account has to be regularis­ ed after tracing some of the premium Incentive to attract more Foreign.. remittances. Exchange 833. SHRI DURGA CHAND: Will the Minister of FINANCE AND Rate of Bonus on Life Insurance and REVENUE AND BANKING be pleas­ Endowment Policies ed to state: 832. SHRI S. D. SOMASUNDA- (a) whether there is any proposal RAM: Will the Minister of FINANCE under Government’s consideration to AND REVENUE AND BANKING be attract foreign exchange to the maxi­ pleased to state: mum; (a) the rate of bonus being declared (b) if so, the main features thereof; on the current Life Insurance and Endowment policies; (c) whether there is any proposal under Government consideration to (b) the causes for declaring such give incentives to those who declared k>w rate of bonus; and voluntarily their foreign exchange reserves as was done in the scheme (c) the steps proposed to be taken for voluntary disclosure of income in to increase the rate of bonus? 1975-76; and

THE MINISTER OF FINANCE AND (d) if so, the salient features there­ REVENUE AND BANKING (SHRI of? H. M. PATEL): (a) and (b). The LIC’s bonus has gradually increased THE MINISTER OF FINANCE AND from Rs. 12.80 and Rs. 16.00 per REVENUE AND BANKING (SHRI thousand sum assured per annum on H. M. PATEL); (a) and (b) Gov­ Endowment Assurances and Whole ernment have introduced a number of Life Assurances respectively in 1957 schemes in the past to promote flow 103 Written Answers JUNE 17, 1977 Written Answers 104 o f inward remittances. The position (W) irf* $r, 35«ft #WT fa rft ig kept under constant review to see whether there is need to modify these | *Trf*w w r f^cnrr meir or introduce new schemes with a view I ? to increasing the flow of inward re­ mittances. vhni ^ t o fwRivi *Wt (c) No, Sir. (*ft gwrtro rtftnt) : (*) «rk (*r) (d) Does not arise. 3ft, ^ | fc?sft fpsr^r WRW 7 ^ ftpfTNT f i m % w. if % % srrovf vr tftir wnmfrr (tfsrtwFr) Ntorft fcs §q t 1 ^ ^ snra*> %

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I JTf* f t , «RT TR«T THE MINISTER OF FINANCE AND REVENUE AND BANKING (SBBI t ; H. M. PATEL): (a) to (c). Following I the departmentalisation of Central (*i) ^ $«ft *t£ faq^anft Government accounts, the process of transfer of G. P. Fund accounts of rT> «RTT TffTt ^ ^T-TT^T TT T^V Central Government employees by the Accountants General to t#e departmental Accounts Officers is continuing. Details regarding missing m u m w Vt *il«k fiwwH

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Employees i ta Export Tn^ifirtlw Council and Export Inspection agen­ cies are given below:—

E43. SHRI VAYALAR RAVI: Will Export Inspection Council Total Offices No. of the Minister of COMMERCE AND . employees CIVIL SUPPLIES AND COOPERA­ Export Inspection Council Cal­ TION be pleased to state: cutta (Secretariat) 52 Office of the Senior Additional Director, Delhi 21 Regional Office. Bombay 18 (a) the total number of employees >, ,, Cochiii 8 ,, „ Delhi 17 under different Export Inspection Councils of the Export Inspection Toal 116 Agency; and hxpoit Inspection Agencies Total Nv.. (b) their category-wise breakup? Offices of employees

Bombay 243 THE MINISTER OF COMMERCE Calcutta (Non-Jute) 214 Calcutta (Jute Schorr.e) 590 AND CIVIL SUPPLIES AND COOPE­ Cochip 323 Delhi 346 RATION (SHRI MOHAN DHARIA): Madras 104 (a) Total number of employees in the T otal 1820 various offices of the Export Inspection

(b) Category-wise breakup is given below: — Export Inspection Council Office

Office Group Group Group Group Total A B C D No. (0 Export Inspection Council, Cal­ cutta...... 11 5 25 I! 52 (2) Senior Additional Director, Delhi. 6 1 11 3 21 3) Regional Office, Bombay. 6 1 6 5 18 (; Regional Office, Cochin. 3 1 2 2 8 (5 Regional Office, Delhi. 3 1 II 2 17

Export Inspection Agencies Offices Group Group Group Group Total ABC D No. (1) Bom bay...... 55 52 97 39 243 (2) Calcutta (Non-Jute) • 38 *6 105 35 214 (3) Calcutta (Jute) 24 42 328 196 590 (4) C o c h i n ...... 43 77 l} 1 72 323 (5) D e l h i ...... 50 50 165 61 346 (6) Madras • 15 18 49 22 104

Note : (Group *AV car rying a pay or a scale of pay with a maximum of not less than Rs. 1300 00). (Group *B’ carrying a pay or a scale of pay with a maximum of notl r s than Rs. 900.00 but less than Rs. 1300-00). ^Group'C* carrying a pay or a scale of pay with a maximum of over Rs. 290.00 but less than Rs. 90000.). tGroup ‘D* carrying a pay or a scale of pay the maximum of which is Rs. 290.00’or less.) ia i Written Answers JYAISTHA 27, 1899 ( SAKA) Written Anjioer* i» a Pw ek pawBt of V u k a li M a Tontot THE MINISTER 0 7 TOURISM AND I OMrtM CIVIL AVIATION (SHRI PURU* SHOTTAM KAUSHIK): (a) Yes, Sir 844. SHRI VAYALAR RAVI; WiH the Minister of TOU1RSM AND CIVIL (b) Indian Airlines have taken the AVIATION be pleased to state: following steps:;—

(a) whether Government are aware (i) The halt at Goa from the daily that the decision regarding the deve­ Boeing 737 service Bombay-Goa- lopment of Varkala in Trivandrum Trivandrum has been omitted, in­ District of Kerala as a tourist centre creasing the number of seats by 46 i8 pending before the Government for per flight. a long period; and (b) if so, the reasons for the long (ii) Passengers travelling from delay and the steps Government Trivandrum to Bombay and fr. m propose to take in the matter? Bombay to Trivandrum are now allowed to travel via Madras with­ THE MINISTER OF TOURISM AND out any additional cost, as a tem­ CIVIL AVIATION (SHRI PURTT- porary measure. SHOTTAM KAUSHIK): (a) and (b). Two representations were received by (iii) The two d aily HS-748 ser­ the Government for the development vices between Bombay and Cochin of Varkala as a tourist centre. Since now make a technical landing at the development of Varkala as a tou­ Mangalore for lifting fuel with the rist centre is dependent upon the result that now 44 passengers can be construction of a road to the mineral taken on the aircraft as' compared spring and enlarging the tunnel on to 38 previously. the backwaters, the State Govern­ ment had been approached to do the needful in the matter. It regretted its inability to construct the road due to oontraint on resources. As regards Representation of S. C. and S. T. in enlarging the tunnel the State Gov­ Indian Airlines and Air India ernment has stated that it may take sometime more to finalise the investi­ gations. 846. SHRI PRADYUMNA K. BAL: Will the Minister of TOURISM AND CIVIL AVIATION be pleased to state:

(a) the reasons for less representa­ Air Passengers from Middle East to tion of Scheduled Cas1,e and Sche­ Cochin and Trivandrum duled Tribes people in th e Indian Airlines and Air India jobs; and 845. SHRI VAYALAR RAVI: Will the Minister of TOURISM AND (b) the number of officers of SC/ CIVIL AVIATION be pleased to state: ST category that have been absorbed in the Indian Airlines and Air India (ft) whether there has been a heavy flow of air passengers from the respectively in the last as well as cur­ rent financial year? Middle East to Cochin and Trivan­ drum and they are experiencing great difficulties In getting accommoda­ THE MINISTER OF TOURISM AND tion in Bombay-Cochin and Trivan­ CIVIL AVIATION (SHRI PURU- drum flights; and SHOTTAM KAUSHIK): (a) and (b). The requisite information is. being (b) if so, what steps Government collected and will be laid on the table propoae to take in tti|s regard? of the Sabha. Written Answers JUNE 17, 1977 Written Answers 124 K n u k Tsarist Complex came into power out of those who were detained on charges of econo­ 847. SHRI PRADYUMNA K. BAL: mic offences; and Will the Minister of TOURISM AND CIVIL AVIATION be pleased to state: (b) whether Government intend (a) the reasons lor which Konark to take any other action against tourist complex has been neglected them? .although it is regarded as one of the rare Architectural wonders ol the THE MINISTER OF FINANCE AND world; and REVENUE AND BANKING (SHRI (b) the steps Government have H. M. PATEL): (a) Consequent upon taken to build the new tourist com­ revocation of internal emergency of plex there? 21st March, 1977, 2034 smugglers and THE MINISTER OP TOURISM AND foreign exchange racketeers were re­ CIVIL AVIATION (SHRI PURUSHOT. leased from detention under the Con­ TAM KAUSHIK): (a) and (b ). In the earlier Plan periods, the Department servation of Foreign Exchange and of Tourism had constructed a Tourist Prevention of Smuggling Activities Bungalow at Konark which is now Act, 1974. 151 more detenus were re­ being run as Travellers’ Lodge by the leased upto 4th June, 1977, after the Indian Tourism Development Corpora­ tion. Similiary, the State Govern­ present Government came into power. ment constructed a Tourist Bungalow (b) Necessary action under the nor­ at Konark, 50 per cent of the cost of mal laws is being taken against them. which was shared by the Department of Tourism. In the Fifth Plan the de­ velopment of tourist facilities at Kon­ ark has been included under the Cul­ Transfer of Pay and Accounts Office tural Toursim programme of the De­ from Mathura to Nosik Road partment of Tourism. Accordingly, a master plan (land-use plan) of the 849. SHRI SHAMBHU NATH area surrounding the sun temple has CHATURVEDI: Will the Minister of been prepared, location of facilities FINANCE AND REVENUE AND indicated and environmental planning BANKING be pleased to state: also incorporated in the master plan. On the flnalisation of the master plan (a) the reasons for the proposed in consultation with the Archaeologi­ transfer to Pay and Accounts office cal Survey of India and the State Gov­ (ORs) Artillery from Mathura to ernment, responsibilities will be assign­ Nasik Road Camp; ed to the agencies concerned for the implementation of the master plan. (b) whether there is no residential accommodation available at Nasik Road camp for the members of the Byltnf of persons detained *or staff and tiheir families and educa­ Economic Offences tional and medical facilities are also lacking; and 848. SHRI F. H. MOHSIN: Will the Minister of FINANCE AND (c) if so, whether Government REVENUE AND BANKING be pleas­ propose to reconsider the matter in ed to state: view of the hardships this transfer (a) the number of persons releas­to likely to entail to the members of ed after the present Government the staff? X2J Wriften Answers JYAISTHA 27, 1899 (SAKA) Written Answers 126

THE MINISTER OF FINANCE AND Bank Credit to Sugar Mills REVENUE AND BANKING (SHRI H. M. PATEL): (a) The Pay Accounts 860. SHRIMATI PARVATHI Offices (ORs), which maintain the KRISHNAN: Will the Minister of Pay and Provident Fund Accounts of FINANCE AND REVENUE AND soldiers on the running ledger system, BANKING be pleased to state: are an essential adjunct of the respec­ (a) whether banks have refused to tive Regimental Record Offices and are give credit to sugar mills for seasonal generally located near them as they requirement recently; are inter-dependent on each other’s records. The Artillery Centre and (b) if so, the reasons therefor; Record Office as well as the Pay Accounts Office (ORs), Artillery were (c) the total credit commercial origthally located at Mathura. Conse­ banks have given to rice mills, sugar quent on the move of the former to mills, jute mills, paper mills and Nasik Road Camp near Deolali the cement factories from March 1976 to PAO (ORs) Artillery has also to be March 1977; March 1974 to March 1975 shifted there in public interest. and March 1975 to March 1976?

THE MINISTER OF FINANCE AND REVENUE AND BANKING (b) No, Sir. The move of the office (SHRI H. M. PATEL): (a) and (b). is to be effected in suitable phases No specific instances of banks’ refus­ taking into account the availability of ing credit to sugar mills for their adequate residential accommodation working capital requirements during for the members of the staff and their the current crushing seasons have been families. Educational and medical brought to the notice of Government facilities are also not lacking at the and Reserve Bank of India. new station which is near Deolali and Nasik city. (c) Available data relating to out­ standing credit of Scheduled Commer­ cial Banks to the concerned manufac­ (c) Does not arise in view of (b) turing industries are set out in the above. table below:

(In croresofRs.)

Amount outstanding as on April 25, Mar^h 26, March 25, 1975 1976 1977

Manufacturing Industry : 1. Sugar...... 204 226 270 2. lute Textile IOI no 118 3. Paper and Paper Products. 99 125 131 4. Cement .... 38 53 57 5. Rice Mills Flour atii Dal Mills. • lune 1975 Dec. 1975 -

48 66 Written Antwtrt JUNK 17, 1977 Written Aiutoer*

W M k l % «(. iHktai Om w M o i TH2 MINISTER OP TOURISM AND CIVIL AVIATION (SHRI PURUSHOT. 851. SHRI GHULAM MOHAMAD TAM KAUSHIK)* (a) and (b). Air- KHAN: India have re-instated two out of the SHRI M. KALYANASUNDA- three di .missed pilots, viz., Capt. H. S. RAM: Hiram former Vice-President and SHRI P. G. MAVALANKAR: Capt. D. S. Mathur, former General Secretary of the Indian Pilots’ Guild. Will the Minister of FINANCE AND The case of Capt. S. S. Nadkami, for­ REVENUE AND BANKING be pleased mer President, is sub-judice. to state:

(a) whether Banking Commission which was set up last July, to examine Income and Wealth declared by Smt. Indira Gandhi and Mem­ the restructuring of the nationalised bers of her Family banks particularly to examine a more meaningful role for banks in rural 9 development, has been wound up; and 853. SHRI KANWAR LAL GUPTA: Will the Minister of FINANCE AND (b) if so the reasons therefor? REVENUE AND BANKING be pleased to state: THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI H. (a) details of wealth declared by Smt Indira Gandhi and her family M. PATEL): (a) and (b). Shri Manu­ members in their respective wealth bhai Shah resigned from the Chair­ tax returns in the last three years; manship of the Commission on the 10th February, 1977. Government (b) details of sources of income declared by Smt. Indira Gandhi and took this opportunity to examine all her family members in tlheir res­ afresh whether the Commission could pective income-tax returns in the continue with its terms of reference last three years; and, on consideration of all aspects, (c) whether Government are in decided that it would be better to the know of any other sources of her wind it up. The Commission ceased income and income of her family functioning with effect from the 22nd members which have not been dec­ lared in the returns; April, 1977. (d) if so, whether Government propose to re-open their assessments Reinstatement of Dismissed Office. and scrutinize all their accounts; and Bearerg of Tni,lan Pilots’ Guild (e) whether Government proposes 852. SHRIMATI AHILYA P. RANG- to inquire about their bank accounts NEKAR: Will the Minister of TOU­ in India and outside? RISM AND CIVIL AVIATION be pleased to state: THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI H. (a) whether Government have re- * M. PATEL): (fc) and (b). A statement instated the three dismissed office­ showing the wealth and the sources of bearers of the Indian Pilots’ Guild; income declared by Sint. Indira and Gandhi and members o I her family is (b) if so, the facts thereof? annexed. 139 Written Answer* JYAISTHA 27, 1899 (SAKA) Written Answers 130

(c) to (e): Reports regarding the to time. The matter is under investi­ sources1 of income, wealth etc. of mem- gation and appropriate action *riB be b ers'of Smt. Indira Gandhi’s family taken in accordance with the law. have appeared in the Press from time

Statement

Wealth declared Sources of inoomc declared Assessment Assessment Assessment year year year 1974-75 1975-76 1976-77 Rs. Rs. Rs.

,Smt. Indira Gandhi 1,77.787 2,35»922 2,71,257 Salary, Government securities, debentures, shares, i nterest on fixed deposits, income from units, royalty and agriculture. Shri Rajiv Gandhi 1,19,015 1,19*015 1,63,475 Salary Shri Sanjay Gandhi 4^6,865 3,99,320 2,87,889 Salary, dividends, interest and hou^e property. Smt. Sonia Gandhi No wealth-tax return filed- Salary. bcnus, ccmmissicn, w/o Rajiv Gandhi d'vidtndr.,interest, Insurance /g;ncy Commission, long tenrt capital gain on f4ile of shares. Master Rahul Gpndh Do. Interest and dividends (Return riiinor son of Shri of income filed for assess­ Rajiv Gandhi ment year 1975-76). Ku. Priyanka Gandhi Do. Do. nrnor dai ghter of Shri Rajiv Gandhi

Expenditure on Managers of Govern­ (c) if so, the broad details thereof ment Hotels and the action proposed to be taken by Government in the matter? 854. SHRI KANWAR LAL GUPTA: Will the Minister of TOURISM AND THE MINISTER OF TOURISM AND CIVIL AVIATION be pleased to state: CIVIL AVIATION (SHRI PURU- SHOTTAM KAUSHIK): (a) The total (a) the total expenditure incurred expenditure incurred on account o f on the Managers of Government accommodation and food in respect o f hotels in India in the last three years .Managers of the I.T.D.C. hotels in the accommodation and last three years is estimated At Rs. 5,74,313. (b) whether Government are .y u m that a huge amount of money (b) and (c). A committee has been j j wastes on their maintenance etc.; constituted to review the scale o f and existing residential accommodation Written Answers JUNE 17, 1977 Written Answers

alloted to the General Managers/ (a) how much onions, potatoes and Managers/Asstt. Managers of hotels/ dais were exported to foreign coun­ tries during the last two years; motels and travellers’ lodges of the Corporation and to recommend suit­ (b) whether the prices of aforesaid able standards for such accommoda­ articles went up on account of export; and tion in respect of different establish­ ments. (c) if so, the steps Government pro­ pose to take to check the prices o f ■sport of Onions, Potatoes and Dais these articles?

855. SHRI KANWAR LAL GUPTA: THE MINISTER OF COMMERCE Will the Minister of COMMERCE AND AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ CIVIL SUPPLIES AND COOPERA­ RIA): (a) Export figures are given TION be pleased to state: below:—

Quantity • ooo tonnes Value • Rs. Lakhs

1975-76 April—Dec. 197s Items

Qty. Value Qty. Value

Onions . . . 112*0 1385 124 1370*25

Potatoes • 30*0 343*17 24 364-95

Dais 6*9 220*00 7 226*64

(b) The export of these items has (a) the reasons for the continuing been of small quantities compared to rise in the wholesale price index; production. Even small exports can affect domestic prices if due precau­ (b) the concrete steps faken or pro­ tions are not taken. The increase in posed to be taken to arrest the rise;/ domestic prices of these items has been due to a number of factors. (c) whether Government have examined that the rise is not solely due to unscrupulous profiteering by '(c) The exports of dais, onions and certain members of the business potatoes have been for the present community; and stopped. (d) if so, the steps taken to bring the offenders to book? ■ise % Wholesale Prices Index THE MINISTER OF FINANCE AND 856. SHRI A. BALA PAJANOR: REVENUE AND BANKING (SHRr SHRI R. V. SWAMINATHAN: H. M. PATEL); (a) The Wholesale Price Index rose by 11.9 per cent Will the Minister of FINANCE AND during 1976-77. In April and May- REVENUE AND BANKING be pleased 1977 there has been a rise of 2.6 per to state: cent, while in the corresponding period 133 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers * of 1976 there had been an increase of Separation of Accounts from Audit 4.4 per cent. The rise in prices at this time of the year is partly seasonal in character and partly the result of shortfalls in the production of essential 857. SHRI A. BALA PAJANOR: commodities like vegetable oils, cotton Will the Minister of FINANCE be and pulses. pleased tQ state:

(b) Government keejps a constant watch on the situation and action has (a) whether the scheme of separa­ been taken to moderate the price rise tion of accounts from audit_bas been fully completed in all the Ministries; through (i) the augmentation of do­ and mestic availability by me&ns of imports (e.g. edible oils, cotton and man-made fibres) or by placing restrictions on exports (e.g. potatoes, onions, and tea), (b) the extent to which the new (ii) larger releases from Government scheme has succeeded in achieving stocks (e. g. foodgrains and sugar), and expedition and flexibility of opera­ (iii) reduction of demand by enforcing tions without sacrificing financial compulsory usage regulations (e.g. 75 probity and prudence ? per cent use of imported oil in vanas- pati manufacture, and 10 per cent use of man-made fibre in the manufacture of cloth), Government also intends to strengthen the public distribution sys­ THE MINISTER OF FINANCE tem. To the extent that expansion in AND REVENUE AND BANKING money supply has broadly affected the (SHRI H. M. PATEL): (a) Yes, Sir. level of prices, Government has sought Under this scheme the responsibility to curb its impact by following a for payment of bills, collection of Go­ stringent credit policy. Restrictions vernment dues and maintenance of have been placed on lending by banks accounts for receipts and payments against sensitive commodities to pre­ has been given to the Departments/ vent speculative stock holding, expan­ Ministries of Government of India, sion of credit by banks has been made except in regard to accounting of pay­ difficult by impounding a part of their ment of pensions which continues to incremental deposit resources, by in­ be the responsibility of the C.&A.G. creasing the statutory cash reserve ratio and by making refinancing of bank lending by the Reserve Bank more restrictive. (b) Now that the Pay and Accounts Offices function as part and parcel of the Department/Ministry concerned, (c) and (d): As would be evident claims and dues are checked and paid from (a) and (b) above, there can be expeditiously. Monthly accounts are many factors which lead to a price rise. now available to the Ministries/De­ Profiteering by the business community partments concerned before the end cannot also be ruled out. In order to of the following month and this faci­ check anti-social activities, the State litates better budgetary and expendi­ Governments are making use of the ture control. powers under the Essential Commodi­ ties Act, and similar legislation relat­ ing to the stocking, price display, packaging, etc. of goods. Surprise A system of pre-check of bills and raids and inspections are carried out internal audit has also been intro­ by the enforcement authorities and duced to ensure that prescribed rules defaulters prosecuted. and regulations are followed. 135 Written Answers JUNE 17, 1977 Written Answtr* 136

fc«W *?®1W VTfT f*W («r) w t r r fW f % ^rrtt^mrr t y t T T ^ in fa m arrar «n «frr 858. i?« inrnw ^ : t$t *n»>r f?wnft arRft $ ; w r w r fw «rT* « V trg* ¥ lfW JTf vt FTT fT^r fa : (*t) w t *r e ?rU qr Tcmnr ^ «nfit*T f»RiTtT% % ft W N H I (*) WTT Tff5TR fWT *T*;>R TTff % f%tT **PT TT T t ^ f*T^ T t OT? % fiTtrffTcT % *tf *r*em fw >m «tt; ^ ^»r t t tfvfrrr % Tnrff^PTcn eft ( ^ ) irfT f f , ?ft f f f Jr w r ( jst) *tt fa* Pra'tfTcT % wr4wr$t | ? i f * ^f ^w»r JTffr «rfa*

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m f r o w> t (*r) ^fV, 1 'fter fl^nfan *art («ft mfw) :(**) ertfr? % fafarr ^ ?nn% 4 K + K % *t3 3 r j f H j T f * ftr^r, TrT^m ^ favT* 3 -TJTW o tT Tf ^ % 5 r t ;m>*r faV 3 tr % fa-q «rro m fwcr 4*r*f ?3ftfjTJT# f f n n ^ V t f «FfJ Z f-T-JriTT ^ t fa-JT ^ wk (TF&Cn ?frr Trr?rrJT ?rf^r) wot s?jt fast sr^iT ¥t Tnr^rq^rr ?% *rr str tin TT3rf*TTJT % rftcrT ^*T(% im «?Tf ^5tTr I SPT 1976 f^rqT I

(«r) % (*r) w t JTjfr s s t i («T) *Tr«T5Tf t I

WT » *« «T TtlT-^ WKt«T fa«W* W^>*T

859- *to HJ»ft «TfTW*T *r*r«! : 860. *To 5f5»ft HKIU

fTT f>

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(«ri) w ^T^r^rnr iki % viHnfeff iror % Trrn iptf* fownmn: aihnsf % wNi itiro (iidt inmkii

wtarer *rrerr *k * k «m*rtf 86i. n o *wr*tf sfrwro? : T f*; STffSTHTf *$JTT «ft *T£TWT : (*[) fTr «TOt*T ■TrTPT^f % r*T «ft h*tt ijanff: *r* ir srtrn: *ft sm rts* **r f«rw ?t*tt m r w w k wfanr *r^t *rk ^ JTTT +Vr f^ 1 (tr) qf* ff, rft ^ q r -fit (*r) w r *ta r f k w % ^r4*rst vt «r$ | ? ^jT^rfr^f * k **srerf % fhr 3r^m>, 1974 ir ^T*T % JTHT^ TT ^ f^T |?rr «rr; («ft qwo quo TOT) : (fr) (g) wr q-^rr % ^qr 5*T *4 *ft^ «T?# s k vmrrfq’v Pr*T*T (?T*T5ftT ir t Ft ^ ) ?rRdW T, arc? % tttjt iTtT-sr^r $k 1976 % SPcPFT TPtrr ir ^ grfr ^Pj 'TfT- ^r*rr^r 5R f?qT «tt; furr | 1 a-^r if 5pm*r ( it) w t ^r f?nnr % 24 srffTsr^ s k tist^tth *t ^nnnr ^4 T rf^ f jf TH srfafjrqTT ^T f^TFT 16 sffT5FT ^*TPT TT *FT»TPT ^ ’TTTT 5fH*T ?TJTIT^ ^rt q?T ^ml q I ,F'T if 3TTT dCHlT?ff ^I O' ( ^ ) jrf? ^r, ?d *RfrR: % f*r •ft ^r^rr ^ft ffaft | *rk r?r 3TT^ if f^T +HT7 «r f^prir inr ^nr wr % f^f^TrT fi^rf % ^T«r ?n«r rffart ?rk ^rWt % spcqrtSJT SfFrT «^rfr % + 4 -m rT srt^r gtr $ I ,?nT7fY Vimn ( 1977-78) qTnnfr ^>t 5TcT *ft 9TTfiM «ft I % farjr a j^ n r HTCfllT srrrt v r 5? jftfir «rtw *r*r^ (^r) ^ ^ ^ fafa^T «rk K w c ft % *f?ri «rrci^ ^ *r*rq i n t o totsi * t s u f a * afY«n fw r (^nrorkh; if mP^^t) VR«ff % JTT^TTH vt •m’T $ n ftrf^ n r, 1976 %<;; j t t t TWT TPTTT I 1975 % ^ j j h ^ n »m wr I 139 Written Answers JUNI 17, 1977 Written Answers 140

(n) (w). tftw* ftm fw r (a) whether Government are con-« % fa qfarcf ^ sidering implementation of Raj Com. mittee’s recommendations on AgricuL. tftv* ftm fa m (wtjwftnii 3 M fafa) ture Tax Structure; and vftrfNinr, 1976 ttrcrr ^ r n r (b) if so, the action taken/proposed in this regard. smTOT 5f ^ | «fh: ^ THE MINISTER OF FINANCE *nwr «^fr<4TH»r % tnft AND REVENUE AND BANKING feirmftH $ 1 , (SHRI H. M. PATEL): (a) and (b). A statement indicating the position is Recommendations of EaJ Committee laid on the Table of the House. From on Agricultural Tax Structure this it will be seen that four recom­ mendations have been accepted; four 862. SHRI VASANT SATHE: Will others have not been accepted. In the Minister of Finance be pleased respect of the other recommendations, to state: no decision has been taken. Statement Recommendations relating to Central Direct axes made by the Committee on Taxation of Agricultural Wealth and Income (1972)—Action taken/proposed to be taken

SI. Recommendation Whether accepted or not. No.

I There should be some arrangement to esnure that the tax burden on assessees with similar incomes does not differ sharply merely because of the fact that part of it is d ‘riv.-d fr asricultur *. This can he achie­ v'd without bringing agricultural incomes under the charge of Central income-tax if such incomes are taken into account in determining the rate of tax applicable to evasion through the device of camouflaging taxable income as gains from agriculture. (a) A suitable provision should therefore be made in Accepted, the Income-tax Act, 1961 whereby both agri­ cultural and non-agricultural components of a tax payer's income are aggregated and the tax on the non-agricultural portion is levied as if the latter were placed in the top slabs of the aggregate income. Integration of agricultural and non-agricultural incomes should take effect only if an assessee has taxable income exceeding the minimum exemption limit laid down for the levy of the Central income-tax. In determining the rate of tax on non-agricultural income, the agricultural income and non-asricultural income should be combined in the following manner and order : (i) the initial exemption allowed cut of non-agricultural income (Rs. 5000 at present): (ii) agricultural income and (iii) the balance or non-agricultural income. (Paras 4*1 to 4*7) (b) In computing net income from agriculture for Accepted, the purpose of partial Integration, all hems of expenditure allowed under the Income-tax Act in the computation of income from business or pfofosioa* indudin* depreciation of machinery and tools used in (gnculture, should be deducted from groat receiptt. 141 Written Answers JY^ISTHA 27, 1899 ( SAKA) Written Annoerv 14a

(c) To avoid harassment to assessees, however rules Decision has not been taken. should be framed by the Central Government in consultation with the State Government and the proposed all-India Committee on Agriculture Holdings Tax prescribing the maximum scale of expenses allowable under the major heads in computation of agricultural income in different districts/tracts. (Para 4* 13)

fd) The liability on account of the proposed Agri­ Decision has not been taken. cultural Holdings Tax should not be allowed as deductible expenditure while computing agri­ cultural income. (Para 4-14)

(e) Losses incurred in agricultural should be allowed Accepted, to be set-off only against gains from agriculture. (Para 4-15)

Administrative arrangements should be made for Decision has not been taken* certification of the extent of the aggregate agricultural holding of assessees, the nature of crops grown and the rateable value of the holdings by an appropriate revenue authority designated by the State Govern­ ments in each district. (Paras 4* *6 £ 4 * 1 7 )

The additional revenue realised as a result of the partial Decision has not been taken, integration of agricultural with non-agricultural income in the above manner should go entirely to the State of origin of the agricultural income so aggregated. (Para 4* 18)

Wealth-tax should be levied on a family basis. The Decision has not been taken* basic exemption limit may be raised to 1-5 lakhs and all other exemptions done away with as far as paisible. If the exemption limit is so fixed few families in agriculture would be required to pay any wealth-tax on their own agricultural holdings, unless they have substantial assets in other forms as well. With the removal of all exemption other than that provided by the basic exemption limit, there would be a case for lowering the rates of tax in order that assessees on the margin of the exempted limit are not too heavily burdened.

(a) Value of shares in companies and cooperatives Decision has not been taken. should be included in full in the taxable wealth of the share-holders and their market worth deter­ mined rigorously.

(b) No concession should be given to religious and Not accepted. charitable trusts in the matter of wealth-tax. Income of religious and charit­ able trusts is exempt from (Paras 5*9 to 5*12) tax subject to safeguards agai­ nst misuse of trust funds and income. Similar safe­ guards have been provided in relation to wealth-tax. In view of this position, there does not appear to be any good reason for levying wealth- tax on such trusts. 143 Written Answers JUNE 17, 1977 Written Answers

Valuation of farm lands for wealth-tax purposes, should Decision has not been taken. generally be made through the method of income- capitalization. A simple and adequate method would be to take 4 to 6 times the rateable value of a holding averaged over a period of years. Guide­ lines may be issued to the assessing officers regarding factors to be kept in view while taking a decision about the figure of the multiplier to be adopted for income-capitalisation. (Paras 5* 13 to 5* 18) (a) The definition of capital asset should be so Not accepted for the present. widened as to permit taxation on capital gains But will be recosidcred after from transfer of all agricultural lands irrespective view of. State Govts, off of their location. Rfej Committee’s recommen­ dations are available. (b) Gains from transaction in assets held for not Not accepted. more than a year should be treated as ordinary Wanchoo Committee’s reco­ income and taxed accordingly. mmendation on this point was preferred. (c) To mitigate the inequity involved in the taxation Decision has not been taken. of capital gains derived from sale of assets held for more than a year at progressive rates a method of prorating the long-term capital gains over a number of years without reopening any back year’s assessment may be followed.

(d) Treatment of losses on long-term capital assets Accepted. might continue as at present.

(e) The exemption of long-term capital gains from Decision has not been taken. tax currently allowed (when a non-corporate assessees*s income does not exceed Rs. 10,000'- or when the gains are less than Rs. 50,000/-) should go once the prorating method is adopted. (Paras 5* 13 to 5*25) (a) As has been suggested for the AHT, the basic Decision has not been taken ~ unit of assessment for income-tax and wealth-tax also should be the family consisting of the hus­ band, wife and minor children being the unit of income-receipt, of consumption and all related decision making;

(b) However, when the family is made the tax unit, a deduction may be allowed from salary income at the rate of 10 per cent of the joint income of the spouses when both are employed outside the household (and 20 per cent of the income of a surviving spouse with minor children to maintain subject to a maximum o f Rs. 2000/- (Paras 6* 1 to 6* 12)

(c) With the adoption of the family as the basic tax unit, the recognition of the Hindu Undivided Family as a tax entity should be withdrawn. (Paras 6*13 and 6*14)

Income from livestock-breeding and poultry and dairy' Not accepted. In view of the farming, which is now exempt from taxation should undeveloped State of live* be subjected to income-tax. stock breeding and dairy poultry farming, it was decided that taxation of such incomes should not be considered at _ thiiitage. 145 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers 146 getting up of a Dry P®1* at Tughla- sector banks had deposits of over kabad, Delhi Rs. 50 crores: Indian Private Sector banks ' 863. SHRI VASANT SATHE: Andhra Bank Ltd. SHRI MUKHTIAR SINGH Punjab and Sind Bank Ltd. MALIK: New Bank of India Ltd. Will the Minister of COMMERCE AND CIVIL SUPPLIES AND CO­ Vijaya Bank Ltd. OPERATION be pleased to state: Corporation Bank Ltd. Oriental Bank of Commerce Ltd. (a) whether Government are con­ sidering a proposal for setting up a Federal Bank Ltd. dry port at Tughlakabad, Delhi; and Bank of Rajasthan Ltd. * Bank of Madura Ltd. (b) if so, at what stage of consi­ deration/decision the proposal stands? Jammu and Kashmir Bank Ltd. Foreign Banks THE MINISTER OF COMMERCE Grindlays Bank Ltd. AND CIVIL SUPPLIES AND CO­ Chartered Bank Ltd. OPERATION (SHRI MOHAN DHA­ RIA): (a) and (b). Government have Mercantile Bank Ltd. decided, in principle, to establish a Citi Bank NA. dry port in the northern region. The American Express International actual location has not yet been Banking Corporation. decided. Bank of America. H w rt *mr

Nationalisation ot Banks bavins 865* Deposits above Rs. 50 Crores WRo :

864. SHRI VASANT SATHE: Will the Minister of FINANCE AND I fct, !WT wVt REVENUE AND BANKING be STcft g-?TPT ifft fTCT % : pleased to state: (^ ) ij a Jz % (a) whether Government are con­ W F t wTt Tf^rrf sidering a proposal to nationalise the banks with deposits of over Rs. 50 f t *rf crores; and (5 ) * fat? 3th % --t^i fnr^r ^ ? (b) the names of banks with depo­ sits of over Rs. 50 crores? fim wm tthw iftr ifrm irwt quo qiw) THE MINISTER OF FINANCE AND REVENUS AND BANKING (*r) sft (SHRI H. M. PATEL): (a) No such f t srsnnft proposal is under the consideration of the Government. ^+I4> 304 % Jr *r8?r, 1977' (b) ‘Reserve Bank of India have ^ If 303 «n I ‘Wftorted •that, as on the last Friday o f March, 1977, the following private 147 Written Answers JUNE 17, 1977 Written Answers 148

Memorandum from A ll India Reserve Steps to Develop Tourist Spots In Bank Employees' Association Regard, Eastern States in f Re-linking of Reserve Bank/ IDB1 and UTI 867. SHRI SUSHIL KUMAR DHA- RA: Will the Minister of TOURISM 866. SHRI KRISHNA CHANDRA AND CIVIL AVIATION be pleased to state: HALDER: Will the Minister of \ FINANCE AND REVENUE AND BANKING be pleased to state: (a) the steps that have been taken <0 better the conditions of places of (a) whether Government are con­ tourist interest and importance in sidering to re-link Reserve Bank, In. West Bengal and other Eastern States; dustrial Development Bank of India and Unit Trust of India; (b) the reasons for which the steps taken have not been able to bring (b) whether Government have re­ about desired results in catching up ceived memorandum Srom the All- the fancies of foreign tourists; and India Reserve Bank Employees Asso­ ciation in this regard; and (c) whether there is any possibility, in the near future, to develop the (c) if so, the reaction of Govern­ tourist spots old or new, in these ment thereto? States in the manner in which such spots in other parts of the country, THE MINISTER OF FINANCE have been beautified and improved at considerable costs? AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) to (c). The Industrial Development Bank of India and the Unit Trust of India were THE MINISTER OF TOURISM AND tie-linked from the Reserve Bank of CIVIL AVIATION (SHRI PURU- India, in terms of the provisions of the SHOTTAM KAUSHIK): (a) to (c): Public Financial Institutions Laws For promoting tourist traffic to the (Amendment) Act 1975, with effect States in the Eastern Region, various from the 16th February, 1976. facilities have been provided in the Central Sector in the form of tourist bungalows, youth hostels, forest lod­ Government have recently received ges, hotels, transport units, duty-free a memorandum from the All-India shops etc. In addition, master plan Reserve Bank of India Employees’ of Konark (around the sun temple), Association which inter-alia includes Rajgir and Nalanda have been pre­ a request for relinking the Industrial pared which cover area and environ­ Development Bank ol India and the mental planning, identification and Unit Trust of India with the Reserve location of facilities. Development of Bank of India. A representation has facilities at these places will be also been received by Government undertaken as sson as responsibili­ from the Industrial Development ties are assigned to agencies concern­ Sank of India Officers' Association, ed in the Central and State sectors. A against relinking the Industrial Deve­ master plan on similar lines of the lopment Bank of India and the Unit area surrounding the Mahabodbi Temp Trust of India with the Reserve Bank pie at Bodh Gaya will also be under­ of India. taken during the current plan period. Funds have also been released to the Government have no proposal un­ State Governmentfor the acquisition der consideration to relink the Indus­ of transfer of about 22 acres of land trial Development Bank of India and around the Mshabodhl Temple. Ac­ the Unit Trust of India with the tion on this by the State GowtiUMrf Reserve Bank of IndU. 1« swatted. 149 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers 150

Other measures taken to promote Remedial action is taken whenever this region among tourists are pro­ specific complaints are received. duction of tourist literature, films and other display material on selected In March, 1975, Government ap­ tourist centres in the region. pointed a Working Group to identify problems and to make recommenda­ A Regional Tourist Office of the tions for improving customer service Central Department of Tourism also in banks. Majority of the recom­ functions at Calcutta which promotes mendations of the Working Group, the Eastern Region among tourists, made in its Interim Report, and maintains close liaison with the State covering (i) deposit accounts, (ii) Governments and the travel industry, remittances and collections, (iii) loans and collects and disseminates infor­ and advances, (iv) Government busi­ mation on tourist centres in the Eas­ ness, and (v) discipline and attitudes, tern Region. were accepted and brought to the notice of all public sector banks for Entry formalities for visit to Dar­ implementation. jeeling, Shillong and Kaziranga by intematlbnal tourists have been Improving the efficiency of banks, liberalised. with a view to rendering better and speedy service to the public, is one of All the above measures have helped the important terms of reference of to increase the flow of tourists to the the James Raj Committee recently set Eastern region. up by the Reserve Bank. Efficiency In Nationalised Banks qfrepft fcff % «68. SHRI SUSHIL KUMAR DHA- RA: Will the Minister of FINANCE 8 69 . : WT AND REVENUE AND BANKING be *TFTT fWHW pleased to state: 3FTR *>t fTT ft? : (a) whether the efficiency, prompt­ ness to dealings and the general be­ (^) *TT 4K+K SqH haviour of the managements and staff 26 1977 % 'sfoP T of such of the banks which had been nationalised have undergone i>errepti- ft M+lfold ' w ^ ble change towards worse after the wfdftfa «ft fto it o fq aafo nationalisation; ^ inn ^ (b) whether it is proposed to bring about improvement in working of these banks; and | ifranft (c) if so, the steps being taken in s w r if 'RTCt if srgf ; this direction? *rk THE MINISTER OF . FINANCE AND REVENUE AND BANKING (sr) ife ff, sft w (SHRI H.,M. PATEL); (a) There J*a* *PTT | ? so far “b&n no appraisal by banks' in India on the basUrof which a compari­ nhi ftiMM infl son could be made of the service avail­ able to the customers in the non-na- yw tfR : aft l tkmalised banks and the nationalised banks during any particular period. (W) : fcnfr <$«¥ ftfWf (b) and (c). Continual watch is ifor * «ft qo % kept for bringing about improvements in the service rendered by the nationalised banks to their customers. S 3 * VTT

Take over of Textile Mills In Kerala 'PTZT uftnu TOOT tRTCT 870. SHRI P. K. KODIYAN: *ft m m *n?f t t % i s p j* ttt*t SHRI C. K. CHANDRAPPAN: ^ft *f*TT% f%TT f^TT tt f^TJT I Will the Minister of COMMERCE fir^fi *r «nT5r t *Tt # w iw AND CIVIL AVIATION AND CO­ *n>Tf iftr mmwi %■ m m OPERATION be pleased to state: *rtr ®tttt

sft ftlWT % ?fnPT Misuse of Import Licences by Edible ipiW ^ 5TTT W n Tt ««1*(- Oil Importers n«

THE MINISTER OF COMMERCE edible oils and oilseeds, the Govern­ jtfTD CIVIL SUPPLIES AND CO­ ment have taken the following OPERATION (SHRI MOHAN DHA­ measures; RIA): (a). Yes, Sir. (i) Imported rapeseed oil is being {b) : (i) Cases of 6 parties have been allotted to State Govern­ referred to the Directorate ments on demand for direct of Enforcement, Ministry of consumption for retailing Finance, for taking action through the public distribu­ under the Foreign Exchange Regulations Act. tion system at reasonable price. (ii) Cases of 13 parties have been referred to the Central (ii) Duty free import of certain Bureau of Investigation for types of edible oils under the detailed enquiries and appro­ priate action. free licensing system by pri­ vate trade has been allowed (iii) Action under the Import Trade for direct human consump­ Control, Regulations has been tion. initiated against 2143 licensees. This figure includes 13 parties (iii) The compulsory usage of against whom there is some prima facie case of malpracti­ cheaper imported oil for ces and also those who have vanaspati manufacture has not cooperated with the autho­ been increased from 10 per rities in furnishing the nece­ cent to 75 per cent progres­ ssary information about the utilisation of licenses. sively over a period of time and these oils are being sup­ plied to the vanaspati indus­ try through imports by the State Trading Corporation of India. The usage of ground­ Rise in the Prices of Edible Oils and nut oil in vanaspati stands Oilseeds prohibited. 872. SHRI P. K. KODIYAN: Will (iv) The State Governments have the Minister of COMMERCE AND been advised to remove all CIVIL SUPPLIES AND COOPERA­ restrictions on the inter­ TION be pleased to state: state movement of edible oil and oilseeds. (a) whether prices of edible oils (v) The export of HPS ground­ and oilseeds are soaring in the coun­ nut has been stopped. try; (vi) Margins for advances of (b) if so, the reasons thereof; and credit by banks against stocks of various oilseeds and (c) the steps Government intend oils have been tightened. to take to bring" down these prices? Conversion of Public Sector Industries THE MINISTER OF COMMERCE into Corporation* AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ 873. SHRI M. KALYANASUN- RIA): Yes, Sir. There has been an DARAM: Will the Minister of upward trend in the prices of edible FINANCE AND REVENUE AND oils and oilseeds in the country. BANKING be pleased to state: The rise in prices is due in the main (a) whether Government are con­ to shortfall in the production of sidering a proposal to convert all the groundnut. and mustard crops in Public Sector industries in the coun­ 1976-77. To check rise in prices of try into Corporations; and 155 Written Answers JUNE 17, 1877 Written Answers 15ft

(b) if so, the objectives and main MERCE AND CIVIL SUPPLIES AND features thereof? COOPERATION be pleased to state: THE MINISTER OF FINANCE (a) whether Government have a AND REVENUE BANKING (SHRI proposal under consideration to end H. M. PATEL): (a) Presumably the the controlled cloth production and Hon’ble Member is referring to the export obligation of the textile mills; conversion of Central public enter­ and prises registered under the Com­ panies Act into Statutory Corpora­ (b) if so, salient features and the tions. No such proposal is under reasons therefor? consideration. THE MINISTER OF COMMERCE (b) does not arise. AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ Public Distribution System RIA): (a) No, Sir. (b) Does not arise. 874. SHRI M. KALYANASUN- DARAM: Will the Minister of COM­ MERCE AND CIVIL SUPPLIES AND COOPERATION be pleased to state: Rise in Commodities Prices (a) the list of articles that are dis­ tributed through the public distribu­ 876. SHRI M. RAMGOPAL REDDY: tion system; and SHRI S. R. DAMANI: (b) whether the public distribution Will the Minister of FINANCE System is proposed to be extended AND REVENUE AND BANKING to cover the weaker sections in the be pleased to state: rural areas also? (a) whether Government are aware THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ of the rise in prices of all the com­ OPERATION (SHRI MOHAN DHA­ modities in the country; RIA) : (a) Wheat, rice, levy sugar (b) if so, what concrete steps Gov­ and controlled cloth are distributed ernment intend to take to arrest the through fair price shops/ration shops rise in prices; in all States and Union Territories. In certain States, limited quantities of (c) whether the money supply and other essential commodities like milo/ inflationary affects in the economy coarse grains, edible oils, kerosene oil are also responsible for this spurt in and soft coke are being distributed prices; and through the public distribution sys­ (d) if so. how far these factors have tem. been curbed in our economy? (b) Strengthening of the Public distribution system to cover, especial­ THE MINISTER OF FINANCE ly the weaker section of the com - AND REVENUE AND BANKING mOTiity both in the rural and urban (SHRI H. M. PATEL): (a) Yes, Sir. areas in the country is under consi­ The Wholesale Price Index (1970-71=* deration of Government. 100) shows a rise of 10.1 per cent over the year ended May 28, 1977 and the Consumer Price Index (1960*100) of Proposal to end Controlled Cloth Pro­ 8.3 per cent between April 1976 and duction and Export Obligation of April 1977. A large part of the rise Textile Mills in prices during the past year is accounted for by the sharp rise in the 875. SHRI M. KALYANASUN- prices of a selected number of com­ DARAM: Will the Minister of COM- modities. 157 Written Answers JYAISTHA 27, 1890 ( SAKA) Written Answers 15ft

(b) Government keeps a constant THE MINISTER OF COMMERCE! ratch on the situation and action has AND CIVIL SUPPLIES AND CO­ Ceen taken to moderate the price rise OPERATION (SHRI MOHAN DHA­ through (i) the augmentation of do­ RIA): (a) Yes, Sir. mestic availability by means of im­ ports (e.g. edible oils, cotton and arti­ (b) Government had already taken, ficial fibres) or by placing restrictions action on the lines indicated in some on exports (e.g. potatoes, onions and of the suggestions made by the Asso­ tea), (ii) larger releases from Gov­ ciation. The other suggestions will ernment stocks (e.g. foodgrains and be given due consideration in so far sugar), and (iii) reduction of demand as they are consistent with the overall by changing compulsory usage regu­ aim of the Government of making: lations (e.g: 75 per cent use of im­ edible oil available to the consumers^ ported oil in vanaspati manufacture at reasonable prices. and 10 per cent use of artificial fibres in the manufacture of cloth). Gov­ Tourist Homes in Andaman and Nico- ernment will continue these measures bar Islands as necessary. It also intends to 878. SHRI M. RAM GOPAL RED­ strengthen the public distribution DY: Will the Minister of TOURISM system. AND CIVIL AVIATfON be please* to state:— (c) and (d). It is true that the ex­ (a) how many Government tourist pansion in money supply has broadly homes are there in Andaman and affected the level of prices. Govern­ Nicobar Islands; and ment has sought to curb the infla­ (b) what is the occupancy ratio of tionary impact of this by following a the tourist homes as also the break-up stringent credit policy. Restrictions of the kind of occupants i.e. whether have been placed on lending by banks public or private for the year 1976-77?" against sensitive commodities to pre­ vent speculative stock holding; ex­ THE MINISTER OF TOURISM pansion of credit by banks has been AND CIVIL AVIATION (SHRI made difficult by impounding a part PURUSHOTTAM KAUSHIK): (a) of their incremental deposit resources, by increasing the statutory cash There is one tourist home with 24 reserve ratio and by making refinanc­ beds at Port Blair built by the An­ ing of bank lending by the Reserve daman and Nicobar Administration. Bank more restrictive. (b) In 1976 the occupancy was 70 per cent of which about 40 per cent was by private parties.

Memorandum from Delhi Vegetable Steps to Check Smuggling and' Oil Trade Association Economic - Offences

877. SHRI M. RAM GOPAL 879. SHRI G. Y. KRISHNAN: REDDY: Will the Minister of COM­ SHRI R. KOLANTHAIVELU: MERCE AND CIVIL SUPPLIES AND Will the Minister of FINANCE- COOPERATION be pleased to state: AND REVENUE AND BANKING^ be pleased to state: (a) whether Delhi Vegetable Oil ^frade Association has submitted a (a) whether there is any proposat memorandum to deal with the pre­ under the consideration of Govern­ sent edible oil crisis in the country; ment for making a review of its anti­ and smuggling measures to evolve a n ew and effective strategy to check smug­ (b ) if so, Government’s reaction gling activities and other economic- thereon? offences in the country; Written Answers JUNE 17, 1877 . Written Answers 160

Statement (b) whether some of the smugglers have been released after the lifting of State-wise break-up of the persons emergency and if so, their number, released is as under .State-wise; and S. State/Union Territory No. of No. persons v(c) the steps Government proposes released to take to intercept the smugglers* vessels and not allow them to indulge in anti-social activities? 1. Andhra Pradesh 37 2. Assam * 62 THE MINISTER OF FINANCE 3. Bihar 104 AND REVENUE AND BANKING 4. Dadra & Nagar Havel 2 (SHRI H. M. PATEL): (a) Anti- smuggling measures of the Govern­ 5. Delhi • • 47 ment *are under constant review de­ 6. Goa, Daman & Diu 34

pending upon the trends in smuggling, 7. Gujarat • 232 changes in the modus operandi adopt­ 8 . Haryana • 2 ed by the smugglers and other eco­ 9. Jammu Sc Kashmir ID nomic offenders and shift in the vul­ 99 nerability of the areas susceptible to 10. Karnataka their activities. n. Kerala • 102 12. Madhya Pradesh 13

(b) Yes Sir, 2185 smugglers in­ 13. Maharashtra 622 cluding foreign exchange racketeers 14. Manipur • 11 were released after the lifting of 5 Emergency till 4th June, 1977 and 15. Meghalaya their number State-wise is furnished 16. Orissa 3

in the statement enclosed. 17. Pondicherry 4

(c) Patrolling of the vulnerable 18. P :njab 69 «reas on the sea coast to intercept 19. Rajasthan 13 smugglers vessels by the Customs carfts has been intensified. A wire­ 20. Tripura • 43 less communication system has also 21. Tamil Nadu 261 been set up On the west coast and 151 Tamil Nadu coast to enable quick 22. Uttar Pradesh • communication between the preven­ 23. W est Bengal 125 tive agencies and help interception 24. Central Government 164 of smugglers vessels. More numbers of Customs patrol craft are being put into service and the system of T otal • 2185 ^collection of intelligence is being 'strengtlteneil l 6l Written Answers JYAISTHA 27, 1889 ( SAKA) Written Answers 162-

Unsai table Airport* for Airbus Tlifhts of Rs. 8.50 a kg. The scheme will be * - • in operation till the end of Septem­ 880. SHRI G. Y. KRISHNAN; Will ber, 1977. the Minister of TOURISM AND CIVIL AVIATION be pleased to Customs Duty Claim against India* state: Leaf Tobacco Development Company (a) whether there are certain air­ ports in the country which are not 882. SHRI JYOTIRMOY BOSU: Wil ready for the airbus flights and if so, the Minister of FINANCE AND RE­ the particulars thereof; and VENUE AND BANKING be pleased to state: (b) the measures Government pro­ pose to take to develop them for air­ (a) whether Government are bus flights? aware that the customs duty claim for Rs. 90 lakhs against the Indian THE MINISTER OF TOURISM Leaf Tobacco Development Com­ AND CIVIL AVIATION (SHRI pany. pending since 1972-73, was PURUSHOTTAM KAUSHIK): (a) suddenly dropped on 19-3-77 under and (b). Airbus services are at pre­ instructions from erstwhile Prime sent being operated to Delhi, Bombay, Minister, Smt. Indira Gandhi through Calcutta. Madras and Bangalore air­ the then Revenue Minister Shri ports. Indian Airlines have plans to Pranab Mukherjee; operate airbus services to Gauhati Dabolim (Goa) and Srinagar. Deve­ ib) if so, the facts thereof; lopment works at these three aero­ dromes are already in progress to (c) action being taken now there­ make them suitable for airbus opera­ on; and tions. (d) whether in Feb. 1977 conces­ Scheme for Distributing Edible Oil on sions worth Rs. 10 crores have been No-Proflt-No-Loss Basis given to Cigarette industry by the erstwhile Prime Minister by way of ♦ 881. SHRI G. Y. KRISHNAN: Will the Minister of COMMERCE AND assessing excise at prices charged by CIVIL SUPPLIES AND COOPERA­ primary dealers and exemptions to TION be pleased to state: card board containers and refund o' (a) whether the Edible Oil Dealers pending claims? have workied out a scheme for distri- „ buting edible oil on a no-proflt-no-loss THE MINISTER OF FINACNE AND basis; and REVENUE AND BANKING (SHRI (b) if so, the main features of this H. M. PATEL): (a) The Madras •scheme? * THE MINISTER OF COMMERCE Custom House had raised a claim for AND CIVIL SUPPLIES AND CO­ about Rs. 90 lakhs against the Indian OPERATION (SHRI MOHAN DHA­ Leaf Tobacco Development Company. RIA): (a) and (b). Yes, Sir. An The Company’s representation association of exporterg and importers V edible oils has formulated a scheme against the claim was examined in for the distribution of imported ®di- the Department of Revenue and was ble oil in the city of Bombay at the finally disposed of on 19-3-1977 by rate of 100 tonnes a day, through the issue of an exemption order after agency of the State Civil Supplies Organisation, at an end retail price examination by the Department and 163 Written Answers JUNE 17, 1977 Written Answers 164 after obtaining the orders of the then At the stage of consideration of the Minister for Revenue and Banking. representation of the Company, these The Department's Die does not show facts were taken in* account. As that there were any instructions from the Company had paid the cftbtraF the then Prime Minister. excise duty leviable on tobacco used in the manufacture of cigarettes, though after clearance, and the re­ (b) The facts of the case are that covery of customs duty would have the Madras Custom House had asked the ILTDC in October 1972 to show had the effect of recovering duty twice over, and also because this cause why customs duty amounting would have acted as an inhibiting fac­ to Rs. 90.77 lakhs should not be re­ tor on exports, it was decided by the covered from it on a consignment of unmanufactured Indian tobacco re­ Government at the level of the Minis. ter on 19th March, 1977 that the imported by the Company in July, Company be exempted from payment 1972 at Madras. This claim was dis­ of cutoms duty equal to the central puted by the Company, but in May, excise duty. 1975, the Madras Custom House con­ firmed the demand. The Company (c) In view of (a) and (b) abjve, preferred an appeal against ’ his de­ the question does not arise. mand in August, 1975 which was re­ jected in May 1976. The Company filed a revision application which was (d) No such concessions were given also rejected in October, 1976. specifically to the cigarette industry in February, 1977 or around that time. Instructions interpreting the The Company then represented the provisions of Central Excise Law re­ matter to the then Minister of Reve­ lating to valuation of all types of nue and Banking in Octobe^ 1S76. exclseable goods have been issued In this representation, the Company from time to time in consultation again pointed out that it had paid the With the Ministry of Law. These central excise duty when the re­ instructions cover among other imported consignment was cleared things the question as to what type for manufacture of cigarettes. While of packing should be included for considering this representation, it purposes of determining assessable was noted that the Madras Custom value and the circumstances in which House should not have released the dealers, stockists, etc. should be re-importt-d consignment without treated as ‘‘related persons”. Apart having charged the customs di:ty from such interpretative instructions ‘ qua! to ‘ he central excise duty levi­ of general nature covering all com­ able thereon as required by Law. modities, the only specific instruc­ The re-imported consignment had tions in regard to cigarette industry been taken into excise bond and were issued in May, 1976 on the ques­ cleared for use in the manufacture of tion whether the cost of corrugated cigarettes. On the basis of the use to fibre board containers should be in- which the re-imported consignment eluded for determining the assessable was put, the correct customs duty value of cigarettes. These instruc­ equal to central excise duty leviable tions were based on the general ins*- thereon should have been Rs. 11.4 tructions issued earlier in respect of lakhs Rs. 5 per kg.' The Madras all excisable goods, according to which Custom House had, however, erro­ the cost of additional packing which neously raised a demand for customs is distinct from the packing in which, duty at the highest rate of central or on which the excisable goods are excise duty of Rs. 40 per kg. appli­ wrapped, captained or wound can­ cable to tobacco used in the manufac­ not be h\cludqd in the assessablf vflue ture of smoking mixtures. of the excisable goods. It is possible 165 Written Answers JYA1STHA 27, 1899 ( SAKA) Written Answers 166 that as & result of the instructions the validity of the LIC of India issued interpreting the law regarding (Modification and Settlement) Act, valuation, the cigarette industry may 1976 in the Supreme Court; also have derived some benefit, in common with other industries. It is (b) whether the Court after hearing not possible to quantify the precise both sides, suggested "that the parties extent of the benefit. might negotiate and come to settle­ ment;

Amount accrued on account of Com­ (c) whether Government have pulsory Deposit Scheme come to any settlement with the LIC employees as suggested by the Court; 885. SHRI JYOTIRMOY BOSU: (d) if so, the facts thereof? Will the Minister of FINANCE AND REVENUE AND BANKING be THE MINISTER OF FINANCE AND pleased to state; REVENUE AND BANKING (SHRI H. M. PATEL): (a) amount accrued on account of Compulsory Deposit Scheme out of (a) Yes, Sir. payments made by employees and (b) Yes, Sir. ' workers; and (c) and (d). No settlement has (b) amount accrued on account of been reached so far. The views of the Compulsory Deposit Scheme out of Government have already been con­ payment made by employed? veyed to the Supreme Court. THE MINISTER OF FINANCE AND REVENUE AND BANKING Visit of the Chairman of the Coffee (SHRI H. M. PATEL): (a) The Board to Kerala gross amount of compulsory deposits made by employees of Central and State Governments, local authorities 887. SHRI C. K. CHANDRAPPAN: and of private and public sector units Will the Minister of COMMERCE under the Additional Emoluments AND CIVIL SUPPLIES AND COOP­ (Compulsory Deposit) Act, 1974 upto ERATION be pleased to state: 3rd June. 1977. was Rs. 1764.68 (a) whether the Chairman of the trores, ColTee Board had recently visited W y n a d in Kerala and had discussions (b ) Employers do not make any w ith coffee-growers and others on the payment u n der Compulsory Deposit va rio u s problems of coffee cultiva­ Scheme; they only remit to the nomi­ tion, marketing and other matters; nated authorities unde* the Act the amounts deducted towards compul­ (b) ir so, the results of his visit; sory deposits from the emoluments (c) whether steps have already disbursed to their employees. been taken to fulfil the various pro­ mises and assurances he had made Validity of LJ.C. (Modification and in various conferences; and Settlement) Act, 1976 (d) if so, the main features 886. SHRI C. K. CHANDRAPPAN: thereof? Will the Minister of FINANCE AND REVENUE AND BANKING be THE MINISTER OF COMMERCE pleased to state: AND CIVIL SUPPLIES AND COOP­ ERATION (SHRI MOHAN DHARIA): (a) whether the All India LIC Employees Federation has challenged (a). Yes, Sir. 167 Written Answer* JUNE 17, 1977 Written Answers 168

(b) Result of the diacussioms are 2. Proposal for starting Regional summarised, as under:— Robusta Research Station have been cleared by the Government of India (1) A comprehensive approach and necessary funds have been pro. involving chemical and biological vided for this purpose. Planting of methods for controlling mealy bug some of the area acquired for the infestation in the coffee plantation*, Research Station would be carried provision of necessary financial out this year for experiemental pur­ assistance to the growers for the poses. Posting of necessary scientific purchase of appropriate inputs and staff for the Station is being attended adoption of an area approach in to. solving the problems has been evolved. 3. Development activities of the (2) Steps have been taken to Board have been geared to provide acquire necessary area for starting need-based credit to the small growers a Robusta Research Station in of coffee. Liberalisation of some of Wynad . for evolving a package of the Developmental Loan procedures practices necessary for increasing for granting loan assistance will be the productivity of Robusta Coffee done to make available these loans to in Wynad. most of the growers having coffee registration certificates. Steps have already been taken to disburse loans (3) A Developmental Plan for to growers in their respective regions providing need-based credit for through decentralisation of develop, every small grower having coffee mental functions. registration certificate has been worked out. Necessary finances from the Plan Funds have been 4. Applications from all the un­ allocated for this purpose. registered estates have been collected from the growers and filed with the (4) Coffee Board has posted Spe­ revenue authorities for future action. Special staff has been posted for cial Staff to identify all registered assisting growers in getting the regis­ estates, collect applications for re­ tration certificates. gistration and for rendering assis­ tance in getting Registration Certi­ ficates from the Revenue Authori­ ties of the Government of Kerala. Rise in Big PricesSf Tea (5) Rationalising the levy of transport charges by the collection 888. SHRI C. K. CHANDRAPPAN: depots and opening more collection Will the Minister of COMMERCE depots in the interior areas is being AND CIVIL SUPPLIES AND COOP­ examined by the Board. ERATION be pleased to state:

(c) Yes, please. Action has already fa) how Government propose to been initiated to implement the deci­ control the tea prices which are sions taken on the above matters. soaring and have gone tq> by more than 100 per cent lince March, 1976 ; (d) 1. Steps have been taken to and map the areas infested with mealy­ bug in Wynad and to start integrated (b) whether his suggestions to tea control measures in these areas. industrialists to bring down tea prices Special staff have already been posted at home by cutting down the exports to attend to this. have been implemented? t60 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers ijj

THE MINISTER OP COMMERCE (n) ttfir fp*, AND CjyiL SUPPLIES AND COOP­ ERATION (SHRI MOHAN DHARIA): ?wr ? (a) and (b). Internal prices of tea auction centres started rising from January, 1977, and this trend continu­ tftK nHK fiRPR Wft (wft ed till the first week of April. With jvftaw vWifv) : (*r) $ firfaror a view to halt this trend, Government took prompt action by imposing an PTi *rgf tk ^rrfw fyMTfw export duty on tea of Rs. 5/- per kg. \i I gfinsrrof % and simultaneously withdrew the % finj rprr xttr qft^rrepr excise rebate available on export of bulk tea and drawback of duties on % f^TT f^FTTR’ mcfRTRT exports. % sftrcm % farr ?n*rc fwrnvr finrPT sft With a view to ensure that adequate quantities of tea are available for f^HTRT TT ^ Tp ^ I domestic consumption, tea producers have been asked to offer about 80 per cent of their produce at the auction. (sr) m r («r). ^rmr f^mnr As a result of these steps the auction % ^ iPh^vi+ % Iw r prices have registered a declining trend. Government is also in constant * fr tT^TnT_7 49 f ^ T srftr touch with major tea packers who have been persuaded to lower the | rm f^Tpfr % 1977 % fRf prices of packed teas by about Rs. 3TF

Tea exports and internal prices are being kept under constant watch so as to ensure adequate availability for Excise Duty on Nylon Thread domestic consumption.

Vigorous efforts are also being made 890. DR. BAPU KALDATE; Will to augment tea production in the the Minister of FINANCE AND country, so as to meet the domestic REVENUE AND BANKING be and external demand. pleased to state:

51FTT M inn f%*UM ^ WTO73T fw w (a) whether the increase in the duty on Nylon thread used in the fisher­ 889. WW : men's nets has affected the fishing trade; and

^ IflTFT f^TT • (b) if so, whether Government have made any survey of the fishermen laid off in the fishing industry? (V) W ’ffPTT ftRT-fW THE MINISTER OF FINANCE AND Pw r vnivr i REVENUE AND BANKING (SHRI H. M. PATEL): (a) There has been no increase in excise duty 011 nylon (^ ) WT fl7*TR m VcNpT thread for over 2 years.

I; (b) Does not arise. 171 Written Anstoers JUNK 17, 1V77 Written Answers

Credit facUMta pwvMt l by Syndicate (b) if so, the facts thereof; and Bank to its clients (c) whether any action was called 891. DR. BAPU KALDATE: Will fo r against the Chairman? the Minister of FINANCE AND REVENUE AND BANKING be THE MINISTER OF FINANCE AND pleased to state: REVENUE AND BANKING (SHRI (H. M. PATEL): (a) to (c). Central (a) whether the Syndicate Bank has Bureau of Investigation has reported provided credit facilities to its clients that the residential premises of Shri viz., M/s. Karnataka Exports Ltd., M/s. K. K. Pai, Chairman and Managing Pushpaka Aviation Pvt. Ltd., M|s. Director of Syndicate Bank at Udipi Cyma Exports FVt. Ltd.. M/s. Nilhat and Manipal were searched by its Shipping Co. Ltd.. Hirji Nensy & Co. officers on 15-10-1976, in the course of and M/s Kasturbhai Lalbhai Seth investigation of certain cases regis­ without obtaining proper credit re­ tered by Central Bureau of Investi­ ports; gation against the Chairman and a few others in connection with the bank (b) if so, the facts thereof; and guarantees given by the bank to a group of firms. The Central Bureau (c) whether any action has been taken against concerned officials of the of Investigation has not yet concluded its investigation. bank on their failure to observe the usual norms in making these advances?

THE MINISTER OF FINANCE AND Mahita Dakshata Samlti REVENUE AND BANKING (SHRI H. M. PATEL): (a) Syndicate Bank 893. DR BAPU KALDATE: has reported that it has provided credit facilities after obtaining credit SHRIMATI MRINAL GORE: reports and such other information as Will the Minister of COMMERCE the bank considered necessary to the AND CIVIL SUPPLIES AND COOP­ following firms: ERATION be pleased to state: M s. Karnataka Exports Ltd., M/s. (a) whether Government have Pushpaka Aviation Pvt Ltd., M/s. sponsored a “Mahila Dakshata Samiti^ Cyma Exports Pvt. Ltd., M/s. iJilhat to fight price-rise: Shipping Co. Pvt. Ltd., Hirji Nensy it Co. and M/s. Kasturbhai Lalbhai Seth. (b) if so, the names of members of the Samiti; and (b) and (c). Do not arise. (c) whether Government propose to Raid at the Residence of Chairman use official machinery to propagate and Managing Director of Samiti’s objectives? Syndicate Bank

892. DR. BAPU KALDATE: Will THE MINISTER OF COMMERCE the Minister of FINANCE AND AND CIVIL SUPPLIES AND CO­ REVENUE AND BANKING be pleas­ OPERATION (SHRI MOHAN DHA­ ed to state: RIA): (a) to (c). No, Sir. The Government are, however, consider- (a) whether the residence of Shri ing a proposal to constitute a Consu­ K. K. Pai, Chairman and Managing mers’ Council at the national level Director of the Syndicate Bank was and similar bodies at the state level, raided by the C.B.I. in November/ in cooperation with the respective December, 1976; State Governments. *73 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 174

New female of Peem eee Allowance 1 4 wSHf, 1977 T t9^ £ «WT 506*?, m . Shri r. v. swaminathan: W * ttt, q h tff *rf**T, Will Jhe Minister of FINANCE AND REVENUE AND BANKING be JPTT, ar*?f TT OTTT *TTTT *T pleased to state: 12,24,000 IjTflT % fa**ft *TTT % *ft% Tt 180 f^ r if %■ (a) whether the present Govern­ ment had promised to the people that 5T?^T fT HR 10 jft^TT «TT («T#T a new formula of dearness allowance T*T 1800 rft^TT fffar) 'TTTT I ^TT will be prepared, and *TPT j£t, 4,400 *

r W T trtr % p r Z f ^rJTT are taking steps to improve trade bet­ ween India and U.S.A.; tit; (b) whether any delegation of the (sr) ?t, m wtfir n Indian Government had recently gone to U.S.A. in this regard; % WT WXWdflft tit $ ? (c) whether U.S.A. has not shown fww x*n tt*** fftrtfiinT any keen interest in increasing trade with India; and q*o q$*r) : ( t ) TFffFST »refHJrf % irfervrfW *t (d) if so, the reasons therefor? Written Answers JUlte 17, 1077 Written Aruuws 176

THE MINISTER OF COMMERCE also in ^onfW-mity with the provisions AND CIVIL SUPPLIES AND COOP­ of the Banking Companies (Acquisi- * ERATION (SHRI MOHAN DHARIA): tion and Transfer of Undertakings) (a) Yes, Sir. Act, 1970* the State Bank of India Act, 1955 and the State Bank of India, (b) No, Sir. (Subsidiary Banks) Act, 1959, infor­ mation relating to the individual (c) The USA has been showing constituents of these banks is not to keen interest in increasing trade with be divulged. It is, therefore, not India. possible to furnish the information sought by the Hon’ble Member. id) Does not arise. Government of India have constitu­ ted a Commission of Inquiry under section 3 „of the Commissions of Inquiry Act, 1952, to enquire into the affairs of Maruti Group of Companies. The terms of reference of this Inquiry Commission, inter-alia, include all Loans given by Financial Institutions matters relating to the securing of and Banks to Maruti Ltd jommodation, loans or other assis­ tance from nationalised banks and 397. DR. VASANT KUMAR PAN- other financial institutions by the DIT: Wiil the Minister of FINANCE Maruti concerns, including the eligi­ AND REVENUE AND BANKING be bility of the said concerns to obtain pleased to state: the financial assistance sought for, the standard of care with which the (a) the amount of ( 1) Loans and ( 2) applications were considered and the Guarantees given by the Government measure of conformity to the polices, owned (a) public financial institutions practices, rules and directives for and (b) Banks to the Maruti Limited the time being in force in regard to and its sister-concerns; grant of such assistance. (b) what were the loans and gua­ rantees given by each institution and Donations given by National Rayen what was the security for such loans; Corporation Ltd. Bombay and 898. DR. VASANT KUMAR PAN­ (c) the amount of loss suffered by DIT; Will the Minister of FINANCE these institutions due to these transac­ AND REVENUE AND BANKING be tions? pleased to state:

(a) whether the National Rayon THE MINISTER OF FINANCE AND Corporation Limited, Bombay has REVENUE AND BANKING (SHRI given donations amounting to over H. M. PATEL): (a) to (c). None of Rs. 20 lakhs to certain so-called Trusts the long term public financial institu­ and Charities during the period Janu­ tions hag given any advances or loans ary to March, 1977; to Maruti Group of Companies. (b) whether the Chairman of the National Rayon Corporation Ltd. is also the Director of Maruti Limited; As regards financial assistance and ?iven by public sector banks to Maruti Group of Companies, in (c) whether Government havein­ accordance with the practice and vestigated into these donations and if usage customary among bankers and so, what are the findings? *77 Writte* Answers JYAISTHA 27, 1899 KSAKA) Written Answers 178

• TUB MINISTER OP FINANCE AND Export of Edible Oil, Oil-Seeds and TtlfVENUE & BANKING (SHRI H.M. Oil Cakes PATEL): (a) National Rayon Corpo­ 899. DR. VASANT KUMAR ration Limited, Bombay has given PANDIT- Will the Minister of donations amounting to Rs. 18.75 lakh COMMERCE AND CIVIL SUPPLIES AND COOPERATION be pleased to during the period January to March, state: 1977. (a) the total export of edible oil, (b) The Chairman of National oil-seeds and oil cakes cfuring the Rayon Corporation Limited is no period 1974-75, 1975-76 and 1976-77; longer a Director of Maruti Limited. (b) whether due to the expert policy the prices of these items were (c) The accounting year of National high for domestic consumers; and Rayon Corporation Limited ends on 30th September. The accounts ic) the proposal of Government for the future? for the year ending 30th September, 1977 showing the above donations THE MINISTER OF COMMERCE will come up for scrutiny in the AND CIVIL SUPPLIES AND CO­ course of the income-tax proceedings OPERATION (SHRI MOHAN for the assessment year 1978-79. The DHARIA): (a) Exports of edible oi’s, return of income for the said assess­ oil-seeds and oil cakes during the period 1974-75, 1975-76 and 1976-77 ment year will be due by 30th June, (April—December) have been as fol­ 1978. lows:—

Qty. in *ooo Tonnes Value in Rs. Crores

1974-75 1975*76 1976-77 (April- December •

Qty. Value Qty. Value Qty. Value f

I. Edible oils • • 0*62 0-57 1*21 0*96 4*26 2*63

2. Oil-seeds * • • 63*61 28*47 159*26 67*65 IOI*II 39*56

3. Oil cakes • • • 988*82 99*37 1110*91 88*69 1434-37 151*49

(b) Yes, Sir. export of oilcakes is regulated to ensure (c) The export of edible oils and adequate internal availability at oilseeds is now totally banned. The reasonable prices. 179 Written Answers JUNE 17, 1877 Written Anstvert

Export of Eatables THE MINISTER OF COMMSftCft AND CIVIL SUPPLIES AND CO- 900. DR. VASANT KUMAR PAN­ OPERATION (SHRI MOHAN DIT: Will the Minister of COMMERCE DHARIA): (a) The export figures are AND CIVIL SUPPLIES AND CO- given in the statement enclosed. OPERATION be pleased to state: (b) The export of fruits, vegetables,, eggs, and meat has been of very (a) the total quantity and value of small quantities compared to produc­ (i) vegetables Cii) fruits (iii) eggs tion of each of the items. Fish ex­ (iv) meat, and (v) fish exported ports are largely of shrimps which during the years 1974-75, 1975-76 and is a high cost item and therefore not 1976-77; an item of mass consumption in India. Domestic price levels of these items (b) whether due to export of these depend upon a number of factors. items the prices of these items re­ (c) The export of eatables, when mained high for the consumers in they are items of mass consumption India; and or essential commodities, is allowed only after meeting domestic require­ (c) general policy of Government ments and without adverse effect on in regard to the export of eatables 7 doi, ?stic prices.

Statement

Item Unit 1974 -7* 1975-76 1976-77

April to December *76

Quantity Qty. Value Qty. Value Qty. Valuv Value

Vegetable • Tonnes 87645 10*34 152564 23*04 163456 23*30 Rs. crores

Fruits • Tonnes 10560 4*41 22808 8*77 21711 9*76

Rs. crores

Eggs Hundred 5533 0*03 25303 0-06 37394 o* i£ Numbers

Rs. crores

Meat • Tonnes 5339 5*03 6188 10*27 35712 18-92 Rs. crores

Fish • Tonnes 38876 66*17 52338 126*56 43618 137*90 Rs. crores l8 l Written Answers JYAISTHA 27, 1899 (6AKA) Written Answers 1S2

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‘ W lW R fiFWHWW Foreign Aid from Oil Rich CountitfM 905. SHRi R. KOLANTHAIVBLU: Will the Minister of FINANCE AND 904.

TOTT f+n»H % ; ic) if so. the salient features <>f such a proposal? (w) WT ^ ^fUJTR ftWFT iW +i THE MINISTER OF FINANCE AND % +Jy,'T'K % Mil'll n ft* "5*^ H*It>0 REVENUE AND BANKING (SHRI jit^t wtr ?t, D ire cto rs nominated by the Central Government. As the country’s f^wRRi^v T ivfo f?r vn^rr principal monetary and credit autho­ rity, the Bank functions with due (VIFfWlt»nT) % if flfwifafl «FT regard to Government’s policies. fawt »mr $ i (b) Does not arise. ififc Written Answer j JYA1STHA 27, 1899 ( SAKA) Written Answers 190

Trade with Cfcfliu THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI & 7. SHJII CHITTA BASU: H. M. PATELt): (a) tfl (e). The infor­ SHRI DURGA CHAND: mation is being collected and will be laid on the Table of tfee House as Will the Minister of COMMERCE early as possible. AND CIVIL SUPPLIES AND CO­ OPERATION be pleased to state Voluntary Disclosures Scheme whether Government have recently explored the possibilities for the £00. SHRI CHITTA BASU: Will the resumption of trade with People’s Minister of FINANCE AND REVENUE Republic of China? AND BANKING ba pleased 4o state: (a) whether any case-study has THE MINISTER OF COMMERCE been undertaken by the Government AND CIVIL SUPPLIES AND CO­ about the voluntary disclosures OPERATION (SHRI MOHAN DHARIA): In order to explore the scheme; and possibilities of trade with China a (b) if so, the principal conclusions representative each of S.T.C., the drawn out of such studies? Association of Indian Engineering Industry and the Basic Chemicals and THE MINISTER OF FINANCE AND Pharmaceuticals Export Promotion REVENUE AND BANKING (SHRI Council attended the Canton Trade H. M. PATEL,1: (a) and (b). Two F a ir in April-May 1977 . The studies have been made with respecl response of the Chinese trade organi- to declarations o f voluntary disclosed ations was positive. The beginning income made under section 3d) of made at the Fair to realise further the the Voluntary Disclosure of Income potential for mutually beneficial trade and W e a lt h Act. 1976. The nature of between the two countries is being these s tu d ie s and th e principal co c ­ persued. c lu s io n s drawn therefrom are follows: Departmental Examination by (H A sample study of the declara­ Class IV Employees of Income Tax tions m ad e in the charges of Com­ Department missioners of Income-tax, Delhi-V and Delhi (Central) as to the 008. SHRI CHITTA BASU: Will the nature o f the assets in which the Minister of FINANCE AND REVENUE voluntarily disclosed inconv' ^ AND BANKING be pleased to state: h e ld — (a) whether a considerable num­ In the declarations made in ber of class IV employees of Income Delhi-V charge, cash, jewellery, Tax Department have passed Depart­ bullion and silverware etc. to­ mental Examination for promotion; gether account for nearly 57 per cent of the assets in which the (b) if so, their number; disclosed income is held. On the other hand, in Delhi (Central) (c) the opportunities for promo­ charge, these assets represent less tion provided for them; than 30 per cent of the income disclosed, most of the balance (d) how many of them have so far being in' the form of deposits with actually been promoted; and other parties/stocks etc. ^ ■ , (e) whether they are required to (ii) A status-wise and income-wise appear for departmental examination analysis of the declarations made in each year? all Commissioners’ charges:— 191 Written Answers JUNE 17, 1977 Written Answers

(i) The five major charges of (a) whether the attention of Gov­ Bombay, West Bengal, Delhi, ernment has Befen drawn to the lock­ Tamil Nadu and Gujarat out declared by Premchand Jute Mill account for 47.6 per cent of in West Bengal; the declarations, S3.6 per cent of the amount declared (b) if so, the total number of wor­ and 55.3 per cent of the tax kers affected by the lock-out; and payable.

(c) the steps taken by Government (ii) The bulk of the declarations for reopening the mill? (nearly 3/4th) is in the lowest income-range upto Rs. 25,000/-. However, such declarations account lor less THE MINISTER OF COMMERCE, than half the total amount AND CIVIL SUPPLIES AND COOPE­ of income disclosed and only RATION (SHRI MOHAN DHARIA): about one-third of the total tax-payable. (a) to (c): Phemchand Jute Milla have been under lock-out since 6th (iii) Declarations involving April, 1977. The total number of wor­ amounts over Rs. 1 lakh kers affected by the lock-out is about constitute only 1.4 per cent 3100. of the total number of declarations but account for 15.8 per cent of the amount With a view to reopening the mitt, of income disclosed ;>nd 26.8 a tripartite meeting was convened by per cent of the tax payable. Government of West Bengal on 12tb May, 1977 followed by a bipartite meeting on 14th May, 1977. The (iv) Nearly half the declarations matter is being persued by the con come from persons not hither, cerned authorities. to assessed. However, their contribution to the amount of income disclosed is only 39.3 per cent and to tax payable about 34.7 per cent. Export Drive

911. SHRI S. D. SOMASUNDARAM: (v) About 50 per cent of the declaration not hitherto SHRI JAGDAMBI PRASAD assessed consist of ladies and YADAV: minors. Their proporation is SHRI A. BALA PAJANOR: the higest in the lowest in­ come range, viz., upto Will the Minister of COMMERCE Rs. 29,000/-. AND CIVIL SUPPLIES AND CO­ OPERATION be pleased to state:

(a) the present policy of Govern­ Leck-ont declared by Premchand Jute ment for using export as a strategy Mill fat West Bengal for accelerating domestic production;

910. DR. SARADISH ROY; Will the (b) whetKer "export drive has re­ Minister of COMMERCE AND CIVIL sulted in non-availability of (essential SUPPLIES AND COOPERATION be commodities l o Consumers at reason­ pleased to state: able rates; and 193 Written Answers JYAISTHA 27,1899 (SAKA) Written Answers 0 (f) if so, the standards proposed to (a) whether Government are aware be followed for determining optima] that vegetable prices are going up limits for export keeping in view needs due to inordinate export of raw vege­ of domestic consumers? tables including onions and potatoes; and

THE MINISTER OF COMMERCE (b) if so, the steps taken by Gav- AND CIVIL SUPPLIES AND CO­ ernment in this regard? OPERATION (SHRI MOHAN DHA­ RIA): (a) The Government has no in­ THE MINISTER OF COMMERCE tention of adopting a strategy of export AND CIVIL SUPPLIES AND CO­ led growth. In selected products OPERATION (SHRI MOHAN DHA­ which have unutilised installed capaci­ RIA); (a) and (b>. Export of ;aw ty or which have a high elasticity of vegetables including potatoes and supply, exports may lead to accelera­ onions has not been inordinate as the tion of domestic production. total quantity exported during 1975-75 and April—December 1976 have been 1.50 lakh tonnes and 1.63 lakh tonnes (b) and (c). Export demand is one respectively against an estimated pro of the factors along with domestic de­ duction of 216 lakh tonnes. Exports mand, money supply and the totdl of vegetables have been regulated with availability of an item which deter­ a view to ensure that the dome&tic mines prices in the domestic marked supply and prices of these items are The Government is aware that the not adversely affected. Export cf export drive by the earlier Government onions and potatoes has been stopped has adversely affected the availability for the present. of certain essential commodities. Tbe Government has therefore taken Import of Cotton prompt measures and has either stopped or staggered their exports. 913. SHRI D. D. DESAI: WiU the Exports of products required for essen­ Minister of COMMERCE AND CIVIL SUPPLIES AND COOPERATION be tial mass consumption are now regulat­ pleased to state: ed and constant review is kept so that the interests of domestic consumers (a) whether the Cotton Corpora­ tion of India is finding demand for are safeguarded. imported cotton rather poor;

(b) if so, whether textile mills are Rise In the Prices of Vegetables being given further price preference in imported cotton; and

912. SHRI D. D. DESAI: Will the (c) if so, whether Government pro­ Minister of COMMERCE AND CIVIL pose to re'CfBTlsfiler import of cotton SUPPLIES AND COOPERATION be and help local farmers fetch a better pleased to state: price? 195 Written Answers JUNE 17, 1977 Written Answers 196

THE MINISTER OF COMMERCE THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHA­ OPERATION (SHRI MOHAN LI!A RIA): (a) No, Sir. RIA); (a) and (b). Contracts for ex­ port of gaiments are concluded by the (b) Does not arise. trade with overseas importers. It is understood that the trade has conclud­ (c) The Government would always ed several contracts for export of gar­ like to help the local farmers. The ments to USA and USSR during present imports had to be allowed in recent months. The features of the view of the shortage of cotton. The deals vary from case to case. moment such sho tag® is over, to th.it extent, imports from outside will not (c) E.E.C., Sweden and Narway be allowed. have imposed quota restrictions on import of certain varieties of garments from India.

id) With Norway. India has con­ cluded an agreement envisagir/* quota Export of cotton garments t° U.S.A. restriction on India’s export of shirts and U.S.SJt. and blouses. In the case of Sweden and E.E.C., certain restrictions have been imposed unilaterally without our 914. SHRI D. D. DESAI: Will the consent. Government have been mak­ Minister of COMMERCE AND CIVIL ing efforts to end these restrictions r.nri SUPPLIES AND COOPERATION be the discussions are in progress. pleased to state:

(a) whether several deals for ex­ port of cotton garments to U.S.A. ^nd Airport at Ahmedabad USSR. have been made recently; 915. SHRI D. D. DESAI: Will the (b) if so, the main features their Minister of TOURISM AND CIVIL of; AVIATION be pleased to state:

(c) whether West European Gov­ (a) whether Ahmedabad is to have ernments are putting quota restric­ an international airport; tions in *he import of Indian garments (b) if so, the main features thete to their countries; and of; and

(d) if so, the steps Government (c) whether this would be so con­ are taking to end these quota restric­ structed as to accommodate wide­ tions? bodied aircraft? 197 Written Answers JYAISTHA 27, 18W (SAKA) Written Answers 198

( THE MiNJSTEH OF TOURISM AND *x % 2.5 stf^ra- stUrt s t qr s r a m CIVIL AVIATION (SHRI PURSHOT- «TT3T ftRcIT ^ (W *PR «5fT3T ^ 5T TAM KAUSHIK): (a) No, Sir. 12.5 5rf^RT I) |3W35qr^ITf (b) and (c). Do not arise. ’if ^rft fti^ ^HlC, 1977 $

wrrwt q?t *in^n era- ^nrr T^*fr «tt 12.5 JTf^FrrT SfTfap 2TT % «TT3T tft SRHPft Ht ^T ft ^TH^ft I WT VWTt % tfrf^ar fMw t *rf tr^rafiT

(T) WT

% ^t trftisq- f%fa jf *PTT 917 . SHRI RAMAN AND T 1W A R Y : ft^TT jTT TfT | ; sftr Will the Minister of COMMERCE AND CIVIL SUPPLIES AND COOPERA­ (g ) zfc ^r, *[*rri 1977 if ^ r- wferat ( q f o r f f r o T ) *rfsrf?r*PT, 1974 THE MINISTER1 OF COMMERCE % snxnhr srftrfrw JTfrrrl tm ^ £ t AND CIVIL SUPPLIES AND CO­ w ^rfr ft^cr f^r ^hnfrzff OPERATION (SHRI MOHAN DHA­ % fafo grrt % w ^

Furchuiiig eeBttM «f O tttn Coipo. Bhainia rattan of M b Chilkarupet Ganapavaram 918. SHRI K. MALLANNA: Will 2. Gujarat the Minister of COMMERCE AND Botad CIVIL SUPPLIES AND COOPERA­ Kapadvanj TION be pleased to state: Dabhoi (a) the number o* purchasing cen­ Palej tres of the Cotton Corporation of Miyagam India functioning at present, State- Kadi wise; Limbdi An jar (b) whether some new purchasing . 3. Karnataka centres have also been opened during Bijapur 1976-77; Gokak Bellary (c) if so, the particulars thereof, Yadgiri State-wise; and 4. Madhya Pradesh (d) the facilities provided for the Ujjain farmers by Government? Dhamnod Khargone THE MINISTER' OF COMMERCE Anjad AND CIVIL SUPPLIES AND CO­ Jaora OPERATION (SHRI MOHAN DHA­ Indore RIA); (a) 88 purchasing centrcs of 5. Punjab the Cotton Corporation of India are Bhatinda functioning at present, State-wise Goniana break-up of which is as under: — Jaitu Tappa 1. Andhra Pradesh 9 Bariwala Jagron 2. Gujarat • • • • 15 Sardulgarh 3. Haryana • 6 Maur Mansa 4. Karnataka . . . j0 Bhuchu 5. Madhya Pradesh 10 Bemala Rampurphul 6. Punjab . . . 19 6. Rajasthan 7. Rajasthan 16 Bijaynagar Padampur 8. Tamil Nadu . . . 3 Fatehnagar Gulabpura 88 Bhilwara Banswara Songaria (b) Yes, Sir. 44 New Centres have Sri Bijaynagar been opened during 1976-77. 7. Tamil Nadu Pollachi. (c) State-wise details of new Cen­ tres opened during 1976-77 are as (d) The Corporation enters the mar­ under:— ket as a purchaser in the regulated 1. Andhra Pradesh markets and participates in auctions Adoni and tenders for sale of kapas. The Adilabad presence of the Corporation helps the 20 1 Written Answers J3TAISTHA 27, 1899 (SAKA) Written Answers 262

cotton growers who are otherwise their advances under this scheme are 1 likely to be exploited by rigging routed through their rural and semi- against the growers. Besides lending urban branches. Correspondingly not support the growers insist on the pre­ more than 1/3rd of their credit under sence of the Corporation, as the Cor­ the scheme may go from their urban poration makes prompt payment for and metropolitan branches. all purchases effected in the market. The facility of prompt payment 1.4. To ensure that persons belong-’ attracts the growers to the purchase jng t0 Scheduled Castes and Scheduled centres of the Corporation in all the Tribes get their due share of benefits States. under the scheme not less than 1/Zrd of the bank credit under the .scheme Lcw-Interest Loan Scheme should flow to the eligible borrowers 919. SHRI K. MALLANNA: Will belonging to Scheduled Castes and the Minister of FINANCE AND RE­ Scheduled Tribes. VENUE AND BANKING be pleased to state: 2. Operational Agencies (a) whether Government have re­ 2.1. Public Sector Banks : The cently revised the Low-Tnt*rest Loan scheme of Differential Rate of Interest Scheme and extended it to the entire will be operated by all the public country; and sector banks. (c) if so, the salient features re­ 2.2. Non-nationalised Banks: Non­ garding the new guidelines announc­ nationalised banks having lead res­ ed in this regard by the Department ponsibilities will operate the scheme at of Revenue an£ Banking? least in their lead districts, Other THE MINISTER OF FINANCE AND non-nationalised banks may also im­ plement the scheme on a voluntary REVENUE AND BANKING (SHRI basis. H. M. PATEL): (a) Yes, Sir. 2.3. Regional Rural Banks -. Under the scheme of Regional Rural Banks, (b) A copy of the revised guidelines credit is to be made available to the on Differential Rate of Interest Scheme borrowers at the same rates as the issued by the Government on 24th cooperatives. These banks are, there­ May, 1977 is given in the Statement fore, not permitted to advance credit enclosed. at concessional rates of interest. To ensure that the persons served by Statement these banks can also avail themselves I. Scope and Coverage of the benefits of the Scheme, the sponsoring banks may lend through 1.1. The Scheme will be operative in Regional Rural Banks on an agency the entire country. basis. Thus, eligible borrowers will be 1.2. Target: Banks should lend able to obtain loans at the rate of per cent per annum in the areas under the scheme minimum of I of 1 4 served by the Regional Rural Banks. per cent of their aggregate advances as at the end of previous year. 3. Eligibility Criteria : The cate­ 1.3. In order to ensure that the gories of persons enumerated in para weaker sections in the rural areas 4 will be eligible to the benefits of the derive maximum benefit under the scheme even if they have no tangible scheme and bulk of the advances are security of any worth to offer or, can not preempted by urban/metropolitan not produce a security/guarantee of a areas, the banks operating the scheme well to do party, provided they satisfy will ensure that not less than 2/3rd of the criteria laid down below: Written Answers JUNE 17, 1977 Written Answers 204

3.1. Family income of the borrower 4.1. Scheduled JTribes, Scheduled from all sources does not exceed Castes and others engaged on a very Rs. 3,000/- per annum in urban or modest scale, in agriculture and/or semi-urban areas or Rs, 2,000/. per allied agricultural activities. annum in rural areas. 4.2. People who themselves collect, 3.2. He does not own any land or or do elementary processing of forest the size of his holding does not exceed products and people who themselves one acre in the case of irrigated land collect fodder in difficult areas and and 2.5 acres in the case of un-irri- sell them to farmers and traders. gated land. 4.3. People physically engaged on a 3.3. Members of Scheduled Castes and Scheduled Tribes are eligible for modest scale in the fields of rottage and rural industries and vocations. the loan irrespective of their land Illustrative examples are; cutting cloth holdings, provided they satisfy the and sewing garments, making reason­ other criteria. ably cheap eatables, home delivery 3.4. He can be helped to rise al>ove service of articles and commodities of his present economic level through a daily use, running way-side tea stalls, productive endeavour with assistance plying of self-owned manual rick­ from banks, the productive endeavour shaws and cycle-rickshaws, repairing being such as would become economi­ of shoes/sandals mainly by hand, bas­ cally viable within a period of, say, 3 ket-making by hand etc. years. 4.4. Indigent students of merit going 3.5. He does not incur liability to in for higher education who do not £et two sources of finance at the same scholarships/maintenance grants from time. governmental or educational authori­ 3.6. He works largely on his own ties. and with such help as other members 4.5. Physically handicapped pnrsons of his family or same joint partners pursuing a gainful occupation. may give to him and does not employ paid employees on a regular basis. 5. Terms and Conditions of Loon: Explanatory Note: The terms and conditions of lean under the scheme will be as follows: It is not intended that a bor­ rower should be required to pro­ 5.1. Amount of loan will depend on duce documentary evidence to estab­ the particular scheme proposed to be lish his eligibility under the scheme. financed and should be adequate to It is expected that the officials of the enable the borrower to finance his re­ bank at the branch level would be quirements without having to borrow conversant with the economic and funds from another source, It is ex­ other circumstances of the borruwer. pected that normally, the maximum They may make such local enquiries amount under the scheme may not as may be required in each case before exceed Rs. !f500/- for a working capi­ sanctioning the loan* bearing in mind tal loan and Rs. 5 000/- for a term the conditions mentioned in this loan. In exceptional cases particular­ paragraph. ly for institutions and in the case of 4. Categories of Eligible Pen; : indigent students of merit, higher Persons who satisfy the income and amounts may be considered. land holding criteria and broadly fall in the categories indicated below will 5.2. Both working capital and term- be eligible to the benefits of the loan will be admissible in accordance scheme. (The list is only illustrative with the specific requirement of the and not exhaustive). borrower. 205 Written 'Answers JYAISTHA 27, 1899 ( SAKA) Written Answers 206

5.3. Requirements 01 margin money 6.2. Institutions for physicdtly handi­ not1 be insisted upon as the cate­ capped persons pursuing a gainful g o ry of borrowers belong to the weak­ occupation where some durable equip ­ est strata of society and may not ment and/or continuous supply of raw always be in a position to furnish material is useful. margin money. Note: Institutions for physically 5.4. Rate of interest will be uniform­ handicapped persons, orphanages and ly fixed at 4 per cent per annum. Women’s Homes will be exempted from income criteria. However, it 5.5. Term Loan for the acquisition should be ensured that these institu­ of fixed assets shall not exceed 5 years, tions utilise the funds for productive including a grace period not exceed­ purposes only and not for meeting ing two years on the repayment of their normal administrative and estab­ principal. The repayment schedula lishment expenses. It is also neces­ will be worked out in each case hav­ sary to verify from independent sour­ ing regard to the nature of the activity ces about the genuinness of these in­ of the borrower and ths economics of stitutions. the scheme. In assessing the surplus for the payment of interest and prin­ 7. State Corporations for Scheduled cipal, due allowance should be made Castes and Scheduled Tribes: Banks for the sustenance requirements of the may route credit under the scheme borrower himself. through State Corporations for the welfare of Scheduled Castes and Sche­ 5.6. The assets purchased with the duled tribes subject to the beneficiaries loan may be hypothecated to the bank. of the corporations meeting the eligi­ In addition, in appropriate cases cf bility criteria indicated in para 3 and loans to a homogeneous group of bor­ other terms and conditions indicated rowers. group guarantees may be in the scheme. accepted. 7.1. The Corporations themselves 5.7. Each loan is to be covered under will be exempt from the income the Credit Guarantee Scheme. The criteria. guarantee fee should be met by the banks, and not charged to the 7.2. Finances will be made available borrowers. to the corporations only against speci­ fic and commercially viable schemes 5.8. The cost of Insurance of the formulated by them. Further, the cor­ * assets charged to the banks. If con. porations will not add any service sidered necessary, should be borne *>y charges and the loans will flow to the the bank. beneficiaries at 4 per cent per annum rate of interest. 5.9. The banks may consider some 7.3. The corporations will be respon­ suitable initial moratorium in repay­ sible for repayment of the loan on the ment, if so warranted. due dates, irrespective of the state of recovery from the beneficiaries. fi. Institutions: Following institu­ tions will be eligible for credit under the echeme. 7.4. It will be the responsibility of the corporations to ensure that funds 6.1. Orphanages and Women9s Homes are utilised for the productive pur­ where saleable goods are made and poses only for which they have been for which no adequate and dependable sanctioned and not for meeting their source of finance ejj. endowments or normal running expenses. The cost of regular charities, exist. establishment and other expenditure 207 Written Answers JUNE 17, 197T Written Answers 208

incurred for the implementation of the (a) whether Unemployed Commer­ scheme shall be borne by-the Corpora­ cial Pilot’s Association has demanded, tions State Governments. among other things, creation o? a third airlines parallel to Indian Airlines, to 7.5. Since the advances to State be manned exclusively by an unem­ Corporations will not be eligible for ployed pilots’ co-operative; guarantee cover from the Credit (b) whether any memorandum in Guarantee Corporation of India Ltd., State Governments may have to pro­ this regard has also been submitted by the Association to the Govern­ vide guarantee to the lending ba^ks. m ent; and

7.6. If a Corporation fails to pay the (c) if so, th e reaction of Govern­ instalments of loans or violates any ment thereon? terms and conditions stipulated in the scheme, it may be liable to forfiet its THE MINISTER OF TOURISM AND richt for further finance. CIVIL AVIATION iSHRI PUR’U- SHOTTA-vi KAUSH 1K»: (a) and (l>). Yes, Sir. Export of Refrigerators (c) A proposal for st'/i ig up a third level air service for connecting small 920. SHRI D. B. CHANDRA towns and cities with aircraft of smal­ GOWDA: Will the Minister of COM­ ler capacity is under consideration. It MERCE AND CIVIL SUPPLIES AND w ill not be possible to say at this COOPERATION be pleased to state: stage what the structure of the pro­ (a) whether India is in a position posed organisation would be. to export Indian refrigerators to for­ eign countries; and Programme of flights by AIRBUS

(b) ii so, the names of such coun­ 922. SHRI D. B. CHANDRA tries where the Indian refrigerators GOWDA: Will the Minister of TOU­ are popular and demand for the same RISM AND CIVIL AVIATION be has also been made to Indian Gov­ pleased to state: ernment? (a) whether Indian Airlines has THE MINISTER OF COMMERCE agreed to lease out one of its r*»wly AND CIVIL SUPPLIES AND CO­ acquired airbus aircraft to Air India OPERATION (SHRI MOHAN DHA­ to operate flights to the Gulf region; RIA); (a) Yes, Sir. (b) whether there is possibility to (b) India has been exporting refri­ postpone its plans to extend domestic gerators and parts to a large number airbus services to Gauhati, Goa and of countries in all parts of the world. Srinagar; and The biggest importer of Indian refri­ gerators was Saudi Arabia followed by (c) if so, the facts regarding the U.A.E., Australia, Kuwait, Philippines, programme of airbus flights? Poland and Thailand. THE MINISTER OF TOURISM Memorandum from Unemployed Com­ AND CIVIL AVIATION (SHRI mercial Pilots Association PURUSHOTTAM KAUSHTK): (a) Negotiations are in progress between 921. SHRI D. B. CHANDRA the two airlines for lease of Indian GOWDA: Will the Minister of TOU­ Airlines9 spare Airbus capacity to RISM AND CIVIL AVIATION be Air-India for operation of two flights pleased to state: a week t0 the Gulf region. 209 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers

(b) and (c). Indian Airlines will impact on prices and availability of operate an Airbus service to Gauhati essential commodities in the Union as soon as the aerodrome there has Territory of Delhi also. The measu­ been made ready to receive the air­ res taken include: (i) removal of craft. restrictions on inter-State movement of wheat, (ii) increased rjleas^s of Indian Airlines would also consider non-levy sugar iac the months of operation of Airbus services to Goa Ma>, June and July, 1977, (iii) regu­ and Si\nagar vvhei these airports are lated exports of potatoes and onions; adequately developed for operation of (iv) continuance of imports in ade­ wide bodied aircraft. Necessary quate quantities c( edible oils through devo opment works at Gauhati, Goa the State Trading Corporation and and Srinagar are in progress. the private trade, and (v) imposition of an export duty of Rs. 5 on tea from April 9, 1S77 and simultaneous v ithrlrawal of the excise rebate on tea exports.

. Rise in prices in Delhi In addition, Delhi Administration has taken some more specific mea­ 923. SHRI D. B. CHANDRA sures in this regard. These include GOV/DA: Will the Minister of COM­ the following: MERCE AND CIVIL SUPPLIES AND COOPERATION be pleased to state: Pursuant to a scheme of the (a) whether Government are aware Government cf India, arrangements that prices in Delhi are rising alarm­ have been made to sell imported ingly; rapeseed oil at a retail Drlce not exceeding Rs. 8.50 per kg. During (b) whether the price index figure the past three months 3000 tonnes for March last year w*s 324 indicat­ or rapeseed oil has been put in the ing that there has been a rise of 21 market in Delhi. The procurement of soft coke has been entrusted to points over the last 12 months; and Bharat Coking Coal Limited as a (c) if so, the steps Government result of which the price of soft have taken in this regard? coke Has been brought down from Rs. 10.82 to Rs. 10.32 per 40 kg. THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ An Essential Commodities Tra­ OPERATION (SHRI MOHAN DHA­ ders Advisory Committee, consisting RIA): (a) Consequent on the infla­ of representatives of associations of tionary pressures fruilt up in the traders of various essential commo­ country since the last week of March, dities, National Consumer Coopera­ 1976, there hfts been a rising trend tive Federation, National Agricul­ in prices in the country as a whole, tural Cooperative Marketing Fede­ which has been reflected in the price ration of India Ltd., and some offi­ trends in the Union Territory cf cials of the Delhi Administration, Delhi as well. was formed last month to review the situation of availability of (b) Yes, Sir. The consumer price essential commodities and articles index for industrial workers in Delhi of mass consumption at reasonable (base 1960—100) had moved up from prices. 324 in March, 1976 to 345 in March, 1977. It has been decided to set up 50 fruits and vegetables fair-price re­ (c) Remedial measures taken at tail shops. Some of these shops the national level are likely to have have already started functioning. 211 Written Answers JUNE 17, 1977 Written Answers 212

Direct flight from Cochin and Trivan­ Cooperative Movement drum to Middle East by Air India 924. SHRI V. M. SUDHEERAN: 927. SHRI S. KUNDU: Will the Minister of COMMERCE AND CIVIL. SHRI VAYALAR RAVl: SUPPLIES AND COOPERATION be Will the Minister of TOURISM pleased to state: AND CIVIL AVIATION be pleased to (a) whether Government propose state whether there is any proposal to radicalise the cooperative move­ to start a direct flight from Cochin ment in the country with the object and Trivandrum to Middle East coun­ to serve larger number of needy tries by Air India? people; and THE MINISTER OF TOURISM (b) if so, the steps being taken in AND CIVIL AVIATION (SHRI this regard? PURUSHOTTAM KAUSHIK)’ Air India do not have any proposal at THE MINISTER OF COMMERCE present to start a direct flight from AND CIVIL SUPPLIES AND CO­ Cochin and Trivandrum to Middle OPERATION (SHRI MOHAN D I^ - East countries. RIA): (a) and(b). The Government of India lay great stress on the Export of robber, coffee w d spices by need for the cooperatives to serve Kerala Government larger number of needy persons, es­ pecially the weaker sections of the 925. SHRI V. M. SUDHEERAN: community. In order to provide for Will the Minister of COMMERCE participation in the affairs of the co­ AND CIVIL SUPPLIES AND CO­ operatives by the weaker sections, the OPERATION he pleased to state: Central Government have advised the (a) the quantity of rubber, coffee state governments to incorporate and spices exported from Kerala dur­ suitable provisions in the state coop­ ing 1976-77; and erative laws providing for automatic membership to persons who are duly (b) the amount of foreign exchange qualified for admission as member* earned therefrom during that period? under the provisions of the Act. the THE MINISTER OF COMMERCE rules and the byelaws. This provision AND CIVIL SUPPLIES AND CO­ is intended primarily to ensure enrol­ OPERATION (SHRI MOHAN DHA­ ment of the weaker sections of the population as members of the RIA): (a) and (b). The exact figu­ cooperatives. The Central Government res of export from Kerala State are have also advise^ the state govts, to not available. However, the quan­ provide in the itate cooperative laws tity of coffee, rubber and spices ex­ for compulsory reservation of seats in ported from Cochin port during 1976- favour of weaker sections in the pri­ 77 and foreign exchange earned mary agricultural societies. therefrom during that period ara giv­ en below: Special drives are being organised by the states to enrol the weaker Commodity Quantity Foreign sections in rural areas as members of (Tonnes' Exchange (Rs. the re-organised primary agricultural Crores) credit societies. Loaning policies and procedures are also being liberalised for the benefit of the weaker sections. Coffee • • • 12,585 37*78 A number of schemes have be2*296 in fisheries, dairy, poultry, handloom, Spices • * 24,628 46*15 coir, seri-culture, primarily for the benefit of the weaker sections. Special 213 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers

schemes have also been evolved for ’fffMkvr irn w the scheduled castes and tribals and hill areas. w 'r ftrsnr strt jpr(t fi>w sft Schemes for establishment of agro­ ^ r f , 19 7 7 % service centres end for supply of con­ *l{l ^ ^ T^RT sumer articles to the rural population ^Tf^ff % tqf^cq- fafa STRff % W ^ in general and small and needy far­ mers in particular have also been ^ I irtMkl’’T *i^li£ Hrl formulated. TW Tie'll ^>7 ^ % 3PT The scheme for opening of retail *r 500 outlets by consumer cooperative 4ify+ I ^ 1% stores in cities and towns for the weaker sections has been supplemen­ HT’T *TI*T qfe STfaf^RT ted by a specific scheme for opening ^tt Trftr ifa. an^r ^frfr of Janata shops by consumer coopera­ jft 326 ^Tff W f tstft tive stores exclusively for the bene­ fit of the weakest section. The scheme % '•in* !Tt ^ 1% 1^4 “ (iH i would cover slums, and jhuggi-jhoMpri ^>T ^ 5TItnrT dwellers, areas predominantly inhabi- tated by labourers in unorganised f a w n^fW ^ ii far *m>i sectors and other backward areas ?TR identified by the state governments. ^fr ^Pw il m ^TFRT y^TT q? imnn | ?r ^ w ^Nrfwf % fHfe' ^TFff ij ^HTT apT | 1 yKTfTf^ % ^nissff ?nf? im ^ ww

928. «rt { r e r w t fa n '5RTT {% 37TT sfcTRTT ^FTT HT^TT W aw »rw% w fw i ^rerfhr 1 vt 4>Mi for :

(^) wt wptt *fr yt % f^rfrT % f?T(T sn*cT Jpt Trftr irenFft ^ arrt 3 snq* fir^r v:,i 929. «ft ?wt ^mfrv qfaf fftr trefr (sr) qf< ^f, ?ft ^rTPT ^Tr % : wjjt ufa few | ? (^ ) T5TT fww w*i Tnnw wk irf^n («ft f?rrfa % fnr $t # tn^o qtw) : ($ ) sf;, ?t ’ ?r.m?9r f ; (sr) r fwrr*. % sptt ^rm *Ft srf**r 9 3TT Tf ^ sfiT ^R>T f»T.% 1977 ’Pt *Trft 6 | ; «rk *rf, 1977 % v r f t * t| 1 1 w (*t) te fV fatsflr ^ wrr^T w q f »r£ «ft f t 215 Written Answers JUNE 17, 1977 Written Answers 216

yrfqrw *«n uft Committee for the purpose of mak­ ing a full and complete invesligation w(FVTfTm (*ft mfrm) (**) into the affairs of Kuir.ai Tea Estate and Okayti Tea Estate. The Investiga­ jj* 1 Tfxm fao ?wi tion Committee has submitted its re­ ports which are under examination ^ w w v w M of Government. ««prTf % fa* w m snm ft* $ \ Economic Offenders Detained under ( « ) %frfe%3rr ifr n fa© % CCFEPOSA in Gujarat *tm> 3 f> jf* JTfft f f R , « tr TTff^TPT 931. SHRI F. P. GAEKWARD: Will vt wran fr»n the Minister of FINANCE AND RE­ VENUE AND LANKING bo pleased itct farfafar to state: jf VgrT^ITTT^rT f I (a) the number of economic off- e n d c ii uot i 'od under COFEPOSA jfif ^ j^a-faa f^nrtrr vtar in Gujarat during emergency; wt«frc ift*

1 (ii) completion of maximum (b) Yes, Sir. period of detention; (c) and (d). Reopening of this mill (iii) the advice of the Advisory has been receiving serious attention Boards; of the Government in consultation (iv) revocition of detention order with the State Government and the by the State Government. bankers of the mills. Since the National Textile Corporation is al­ (d) necessary action under the nor­ ready shouldering an onerous respon­ mal laws is being taken against tncm. sibility of managing 105 cotton textile mills, the Central Govenment is not in Wholesale Price Index favour of taking over more sick or closed mills for management by the 932. SHRI F. P. GAEKWAD: Will NTC. Central Government is inxijus to see that this mill reopens at the the Minister ■->£ FINANCE AND RE­ earliest possible. The State Govern­ VENUE AND BANKING be pleased ment’s proposal for the reopening of <0 state the wholesale price index at the mill is being given due considera­ the closc of the Financial year 1977 tion. tus-a-rw at the close of the previous year? THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI H. M. PATEL): The Wholesale Price Index (1979-71 —100) stood at 182.1 for 934* HKH4*I : the week ended March 26, 1977 as against 162.6 for the week cided vft TTSnfhTTvi fTHIS : March 27, 1976.

Closure of Priyalakshmi Mills at *Tcft ^ f.) OTfcRT H VI CIVIL SUPPLIES AND COOPERA­ TION be pleased to state: filWRT ^ ; (a) whether Government are aware that Priyalakshmi Mills at (sr) 3* 1976-77*? ^TR, W n - Baroda has been closed for th© last 24 montihg throwing about 2,500 ST7, VT I'ImIci fvm workers out of employment; (b) whether Government are also aware that economic conditions of workers are pitiable and that they (n) tlT ^ faflRT I are greatly agitated; ?wt farliif an% whft (c) if . , whether Government 30 *$sn h ura ^ ^ ? propose to take over the mills; and (d) if not, the steps proposed to be taken to re-start the mill? THE MINISTER OF COMMERCE AND CIVIL SUPPLIES AND CO­ OPERATION (SHRI MOHAN DHARIM: (a) Yes, Sir. 319 Written Answers JUNE 17, 1977 Written Answers 2*

TT JW vrfiiv HTO? Tt Jff WTff qft aTT*WTO Hflf t : t fa utoi ir o fruffiw *Wt *fr ------^------immrv %i? fa* «?r «* $ t i*WI n (flTTW *ft° CT H)

1 9 7 4 - 7 5 47.9 7 W f ittt firomf vt $fe 1975-76 42.64 wNftfhv firvnr % fair 1976-77 48 20 | w^nf^nr j 935. «*t w t^ tt smw m n : (w) *TOT(*o 5st) TTT fww ?WI TTOPf iftr wfa»T *rat 7^ WHT% *ft fqT fa : «ft*faT 23100 innr 65459 (t ) ^tf 1975-76 sftr 1976- IM ^ffHTT 153520 7 7 *T far^TT 7 m ir T T ^g tfl f^ ft 5TTT 122753 ? fa

( n ) w fa , 1976— »mr, 1977 % (**) ^ft, *£r i ***•’ tj* % f ^ l f t IHTRf if Yf-30 Si ^t»ft Tt ’TTT wnrrr Tt*r?r ( jw w ?t?t frf^r) « t t * t ( t ) *r *t5rnr fagrw fr f wife tfrw «ir frffr wWt $t

finrwr l?f«r ^ ^ % fat? fwfrr t *T7?Prft sNr % t*pf *finrf % *rfa> ^ rtr 1975 sftrfiwp**., 1976% *rf 5mr*i to r

(Tiftr wrar w ff 5r)

f^n^T, 1975 P?»TM 4, 1976

^nrff armrr »?FTt.«Pt gmrr ffwr

*iZ f>T ?rrq; sf?qr *PTfT . 59803 1593.00 88299 2778.92

53164 1767.00 80637 2767.12

^ . 112967 3360.00 168936 5546.04

c ^fhr

rT^^rf ^ WfTRT rr^offf spt 3fTJTT ?>'5JTT *rs*Tr

sn 'fcffw sms 5130 1337.27 6554 1590.73 cT t*F 3423 1374.74 5182 1627.99

3ft? 8553 2712.01 1 1736 3218.72

(«rcfanr*riw>f) 333 Written Answers JUNE 17, 1077 Written Answers

Cochin Air Port perty) Act, 1976 provides for the for­ feiture of the properties acquired 939. SHRI K.A. RAJ AN: illegally by smugglers and foreign ex­ SHRI V. M. SUDHEERAN: change manipulators who have been augmenting their ill-gotten gains by Will the Minister of TOURISM violations of Wealth-tax, Income-tax AND CIVIL AVIATION be pleased and other laws or by other means, to state: whether the properties are held by them in their own names or in (a) what steps have been taken to the names 61 their relatives or as­ expand the Cochin Airport to cope sociates. No estimate has been with the increasing traffic in the made of the amount of black area; money in the hands of smugglers but (b) how long will it take to com­ properties of the estimated value of plete the expansion work; Rs. 23.86 crores believed to have been illegal.y acquired by persons to wham (c) what is the estimated cost of the Act applies, are already co v e re d the expansion scheme; and by forfeiture proceedings. The A c i is being administered by officers appoin­ (d) what is the total expenditure ted as “Competent Authorities” with so far incurred i° this connection? headquarters at Bombay, Madras, THE MINISTER OF TOURISM Calcutta and Delhi. AND CIVIL AVIATION (SHRI PURUSHOTTAM KAUSHIK): (a) to The Income-tax Department is (d). Government have sanctioned a also paying spccial attention lo in­ sum of Rs. 70.05 lakhs for realigning, vestigation in the cases of known strengthening and extension of the .smugglers and tlieir associates. SiJociSi runway at Cochin. The work may Circles have been constituted at take about 2 years for completion. Ahmedabad, Bombay, Madras, The expenditure incurred upto end of Calcutta and other places for con­ May, 1977 is Rs. 15.65 lakhs, approxi­ ducting thorough enquiries into these mately. cases. At the central level, investiga­ tions are being co-ordir.-tt by j separate unit set up in the Specia! Black Money In the hands ofSmug­ Cell of the Directorate of Inspection glers (Investigation). 937. SHRI K. MAYATHEVAR: Will the Minister of FINANCE AND RE­ Action against Smugglers who went VENUE AND BANKING be pleased underground to state: 938. SHRI PRASANNBHAI MEH­ (a) the amount of black mone) TA: Will the Minister of FINANCE estimated to be in the bands of the AND REVENUE AND BANKING be smugglers; pleased to state: (b) whether Government have (a) whether top *nugglers wha foimulated decisive plan to make 9 went underground during the emer­ the smugglers disgorge black money; gency have not surrendered before and Shri Jaya Prakash Narayan recent­ (c) if so, the salient features there­ ly; of? Ob) if so. what i* the total number THE MINISTER OF FINANCE of such smugglers; and AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) to (c). The (c) whether Government have Smugglers and Foreign Exchange token any further action against Manipulators. (Forfeiture of Pro­ them? 225 Written Answers JYAISTHA 27, 1896 (SAKA) Written Answers 23/S

. THE MINISTER OF FINANCE AND REVENUE AND BANKING: WI m W t (SHRI H. M. PATEL): (a) Presum­ ably the question refers to the pledge 940. V iw l JRfW *TITJ : taken by 100 smugglers* be­ fore Shri Jaya Prakash Narayan w f w (wr t w w idr H w at Bombay on 30th April, 1977 ipm ir : that they would not indulge in smug­ gling, dissuade and prevent ethers from continuing such activities and (* ) WT 'rsftfrT help the Government. Government 9 srfirvRr 7 are not aware whether any other per­ son who went underground during fawV ‘wx ^ T emergency surrendered before Shri ftarr t ft, rfw | ? REVENUE AND BANKING be pleased to state: faff TT3RV (a) whether Government’s atten­ tion has been drawn to various news­ paper articles about large amounts of frot-vr vr«rn^, 1956 ir fast money collected by the Indian National Congress by way of adver­ «mrrct % T^TT%f t received by the Indian National Con­ ^ I ffRT 1 4 *TTW sf? gress dvring the year 1976-77; and nwtf^T ozmrfW ^t ^ft «n% ^Rrt (c) what steps are being taken to firtt qr, irra qr recover income-tax on this amount? fo^t TT *?t % f*Pft TTT TT fTT ^nrnrr ^ tt | i imtfri THE MINISTER OF FINANCE qft sqrqrr ir AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) Yes, Sir. WtfacT *TT?T « f»RT *TRT TT 10 srfa*RT wft it wmft (b) The Indian National Congress maintains its accounts on calendar ?THt TTJJT ?TT^TT ^ if jft year basis. The required information t ■will, therefore,arise when the assess- njenta are completed. qr *rt w tptm t ^ Written Answers JUNE 17, 1977 Written Answen 22* w f r , fsn*

*ppr**r * t?t tt f w ^ n rr S. Name of Hotel Location N o. f r wt i**ft w divhr fart 'rrftfff arrfrft Tt Tt nf ^ i 3 Janpath Hotel N ew Delhi (w) ^frfT^*ftfW

12 Hotel Pataliputra * Patna Hotels ran by l.TJJ.C. 13 Laxini Vilas Palace Hotel * Udaipur 941. SHRI SHEO SAMP AT: Will the Minister of TOURISM AND 14 Varanasi Hotel • Varanasi CIVIL AVIATION be pleased to state: 1 $ Khajuraho Khajurah >

(a) the names of various hotels run (b) In most of the hotels, Mana­ by India Tourism Development Cor­ gers, and a few cases other stall poration in the country and their also, have been provided accommoda­ locations; tion Ihslde the hotel and also free duty meals so that they are available on (b) whether the managers and some call. For such accommodation, house other staff of the hotels are provided rent at 10 per cent for unfurnished accommodation inside the hotels and and 12/ 1-2 per cent for furnished also provided free food; accommodation is deducted from their salaries, except in cases where free (c) the amount thus spent on their accommodation is allowed as per the boarding and lodging inside the hotel terms and conditions of appointment. calcutta on commercial rates; and (c) Rs. 26,85,450.00 in an year. (d) whether in view of the heavy expenditure on them. Government (d) A committee has been constitu­ propose to ask them to search accom­ ted to review the scale of existing re­ modation outside and save the ex­ sidential accommodation allotted to chequer from this heavy losg being the General Managers/Managers/ incurred on this account? Assistant Managers of hotels/motels and travellers’ lodges of the Corpora­ THE MINISTER OF TOURISM tion and to recommend suitable AND CIVIL AVIATION (SHRI standards for such accommodation In FURUSHOTTAM KAUSHIK): (a) the respect of different establishments. 229 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers 23c

Report on the working of the Central and the term of Office of electcd Government Employees Consumer Directors, so that fresh elections may Cooperative Society Limited, be held on the basis of the amended New Delhi bye-laws. The General Body appro­ ved the proposed amendments. 942. SHRI SHEO SAMPAT: Will In this connection^ it may be men­ the Minister of COMMERCE AND tioned that Section 31(3) of the Delhi CIVIL SUPPLIES AND COOPERA­ Cooperative Societies Act 1972 and TION be pleased to state: Rule 62(1) of the Delhi Cooperative (a) whether an officer from the Societies Rules 1973 provide that the office of the Registrar of Cooperative elected members of the Board of Societies, Delhi attended the General Management can continue to hold Body meetings—Special and Ordinary, office till their successors are elected both of the Central Government Em­ under the provisions of the Act or the ployees Consumer Cooperative Society Rules or bye-laws. Limited, New Delhi held on 5th The Registrar of Cooperative Socie­ August, 1976 as an observer; ties notified the registration of the (b) if so, the nature of report sub­ amendments on 19th April, 1977. The mitted by him; election of Delegates was, accordingly, held on 12th May, 1977. The election (c) whether a resolution moved by of Directors is scheduled for 27th a Director for the continuance of the June, 1977. Board of Directors for another year was defeated in the meeting; and Reserved percentage for S.C. and S.T. (d) if so, the reasons for the con­ in the Ministry of Tourism and Civil tinuance of the Board of Directors for Aviation another year and the steps proposed to be taken by the Registrar to dis­ 943. SHRI SHEO SAMPAT: Will solve the Board of Directors to honour the Minister of TOURISM AND CIVIL the verdict of the General Body and AVIATION be pleased to stats: take action against the persons who (a) the percentage reserved for have violated the provisions of law Scheduled Castes and Scheduled in this regard? Tribes for various categories of posts from lowest to highest category in THE MINISTER OF COMMERCE his Ministry and its attached and AND CIVIL SUPPLIES AND CO­ subordinate offices; OPERATION (SHRI MOHAN: DHARIA: (a) An Assistant Registrar (b) the extent to which the reserved of Cooperative Societies, Delhi, attend­ quota has been filled up at all levels; ed the Annual and Special General Body meetings of the Central Govern­ (c) whether there is any category ment Employees Consumer Coopera­ of posts where the representation of tive Society Limited held on 5th this category is not adequate; and August, 1976, as an invitee. (d) the time by which the posts re­ (b) No report was submitted. served are likely to be filled up from (c) Yes, Sir. the candidates of reserved category? (d) The specific item on the agenda THE MINISTER OF TOURISM of the Special General Body meeting AND CIVIL AVIATION (SHRI PUR- of the Society held on 5th August, SHOTTAM KAUSHIK): (a) to (d). 1976 was to approve certain amend­ The required information is being ments in the bye-laws of the Society collected and will be' laid on the table relating to the tenure of Delegates of the Sabha. 231 Written Answers JUNE 17, 1977 Written Answers 232

Functioning o f I.T.D.C. (2) Whether to put all non-officer employees on a standard wage struc­ 944. PROF. P. G. MAVALANK^R: ture including common Dearness Al­ Will the Minister of TOURISM AND lowance formula irrespective of CIVIL AVIATION be pleased to state: their sphere of activities. (a) whether Government propose to (3) Whether different categories of . ?hau] the structure and functioning of non-officer employees working in India Tourism Development Corpora­ Hotel and Catering Establishment tion with a view to making it more should have a common wage struc­ efficient as well a$ economical; and ture irrespective of classifications of establishment business turn-over (b) if so, broad indications thereof? capital invested and type of services offered. THE MINISTER OF TOURISM AND CIVIL AVIATION (SHRI PURU- (4) Whether all non-officer em­ SHOTTAM KAUSHIK). (a) and (b>. ployees of the ITDC engaged in A Committee on the restructuring of different activities should have simi­ ITDC was constituted in 1974 under lar fringe benefits and service ameni­ the Chairmanship of Dr. Ajit Mozoom- ties. dar, the then Secretary (Expenditure), with the following terms of refe­ (5) Any other related matter on rence:—* which the Committee may deem it necessary to make any recommenda­ (a) To review the working of the tion. India Tourism Development Corpo­ ration and its main constituent units, in the light of the observations made by the Public Undertaking Commit­ Pwehase of Aircraft tee of the Parliament in its Mst Report 945. PROF. P. G. MAVALAVKAR: Will the Minister of TOURISM AND (b) To examine the organisational 1VIL AVIATION be pleased to state. and administrative structure of ihe LT-D.C- with particular reference to (a) whether Government have its existing and proposed activities purchased all the aircraft for which in the Fifth Plan period and to sug­ firm orders were placed by the pre­ vious Congress Government; gest changes that should be made • for the more efficient fulfilment of (b) if so, the facts thereof; and the objectives of the Corporation and the expenditious implementa­ (c) if not, the reasons therefor? tion of its programme

It is hoped that the report of th* C o m ­ THE MINISTER OF TOURISM AND mittee would be finalised shortly CIVIL AVIATION (SHRI PURU- submitted to the Government soon. SHOTTAM KAUSHIK): (a) to (c). There is also a proposal under consi­ Air India placed orders for purchase deration to constitute a Committee on of two Boeing 747-287 aircraft in rationalisation of wage structure in December, 1978 and February 1977. I.T.D.C. with the following terms of The aircraft are due for delivery in reference:— December, 1977 and May, 1978. » (1) The Committee will be requir­ Indian Airlines placed orders for ed to enquire into and recommend purchase of three Boeing-737 aircraft as to what revision is necessary in on the 9th February, 1977. These air­ the existing emoluments structure craft are due for delivery by the end di the non-officer employees. of November. 1977. 233 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 23$

Payment of Bm u to LJjC. fanptoym mir by Shri Dhirendra Brahmachari, The seizure was made on the ground 946. SHRI SAMAR MUKHERJEE: that the conditions governing the ex­ Will the Minister of FINANCE AND emption from customs duty on the REVENUE AND BANKING be said aeroplane and accessories had pleased to state: been violated. (a) whether Government are aware (b) Lately, some reports about that the bonus for the year 1975-76 Swami Dhirendra Brahmachari’s lead­ payable to the Life Insurance Corpora­ ing a luxurious life have appeared in tion Btnp^oyees in the month of April, the Press. No estimate has so far been 1976, was not paid; and made of his monthly expenses. (b) if so, the reaction of Govern­ (c) Y es. sJSir. He has been payin g ment thereto? income-tax. THI. MINISTER OF FINANCE AND (d) Does not arise. REVENUE AND BANKING (SHRI H. M. PATEL); (a) and (b). Yes, Sir. The matter is under consideration. Export of Cotton to R n g h d irt

948 . SHRI OM PRAKASH TYAGI: WiU the Minister of COMMERCE AND Impounding of Aircraft belonging to CIVIL SUPPLIES AND COOPERA­ Swami Dhirendra Brahmachari T IO N be pleased to state: 947. SHRI MUKHTIAR SINGH (a) whether it has been decided to MALIK: give 10,000 bales of cotton to Bangla­ DR. MURLI MANOHAR desh; and JOSHI: (b) if *50, the reasons for giving Will the Minister of FINANCE the same when the country itself is AND REVENUE AND BANKING importing cotton? be pleased to s*ate: THE MINISTER OF COMMERCE (a) whether Customs Department AND CIVIL SUPPLIES AND COOPE­ has recently seized the private three RATION (SHRI MOHAN DHARIA): seater executive jet aircraft belonging (a*. Government had received some to Fwami Dhirendra Brahmachari if time back a request from the Govern­ so, the reasons therefor; m en t of Bangladesh for suppV of 10,000 bales of raw cotton to help them (b) whether it has come to the tide over a temporary shortage of cot­ notice of Government that Swami Dhirendra Brahmachari has been le a d ­ ton for the mills. However, the ing a very luxurious life and if so, the Bangladesh Government themselves estimated monthly expenses by Swami did not purs’ic that request. D. Brahmachari; (b). Does not arise. (c) whether he had been paying any Money advanced by Nationalised/ tax to the Government; and Non.Nationalised Banks to Maruti fd) if not. the reasons therefor? Ltd.

940 . SHRI MUKHTIAR STNGH THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI H. MALIK: Will the Minister of FINANCE M. PATEL): (a) On 29-4-77, the Cus­ AND REVENUE AND BANKING be toms authorities at Delhi seized one pleased state; Maule aeroplane M-5-235-C with acces­ (aY the names of nationalised and sories, imported from U.S.A. in the non-nationalised banks who have ad­ name of Apama Ashram, Mantalai, vanced money to Maruti Ltd. during District Udhampur, Jammu and Kash­ the last three years; 235 Written Answers JUNE 17, 1977 Written Answers 236

(b) Jimount of money bo far ad­ FINANCE AND REVENUE AND vanced to Maruti Ltd. and its sister BANKING be pleased to state: concerns by each such bank during the same period; (a) how many people were par* tially paid in the form of impounded (c) whether any amount has so f*r Compulsory Deposit Scheme ?ince been returned by Maruti Ltd., and if October, 1976 to April, 1977 with rot, the reasons thereof; figures thereof State-wise; and (d) the terms on which the loans have been advanced by these banks; (b) the total amount, the workers have deposited as C.D. in private'sec- and tor of Jute industry,, Engineering (e) action taken by nationalised industry and Textile industry? banks to recover the money from Maruti Ltd.? THE MINISTER OF FINANCE THE MINISTER OF FINANCE AND REVENUE AND BANKING AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) to (e). In (SHRI H. M. PATEL): accordance with the practices and (a) and (b). Repayment of the second usages customary among bankers and instalment of additional wages deposits also in conformity with the provisions and of the first instalment of additional of the Banking Companies (Acquisi­ dearness allowance deposits fell tion and Transfer of Undertakings) due in July, 1976 under the Act. 1970. the State Bank of India Act. Additional Emoluments (Compul­ 1955 and the State Bank of India sory Deposit) Actt 1974. Some (Subsidiary Banks) Act, 1959. infor­ of these repayments which could not mation relating to the individual be completed in time spilled, over into constituents of all commercial the period from October. 1976 to April, banks including pub'ic sector banks i? 1977. Under the Scheme, the detailed not to be divulged. It is not. therefore, accounts of deposits made by, and re­ possible to furnish the information payments made tof the employees in sought for by the Hon’ble Member. the public and private sector units are Government of India have constitut­ maintained by the concerned employ­ ed a Commission of Inquiry under ers, numbering over 70,000. As section 3 of the Commissions of Nominated Authorities under the Act, Inquiry Act, 1952 to enquire into the the Regional Provident Fund Com­ iffairs of Maruti Group of Companies, missioners (RPFCs) in the Employees’ The terms of reference of this Inqiry Provident Fund Organisation maintain Commision, inter alia include all mat­ only employer-wise accounts of depo­ ters relating to the securing of accom­ sits and repayments due under the modation. loans or other assistance Act. Hence, the figures of repayments from nationalised banks and other \ made to employees are available only financial instiutions by the Maruti con­ region-wise. Similarly, the amounts cerns, including the eligibility of the deposited are available region-wise said concerns to obtain the financial and not industry-wise. A statement is assistance sought for, the standard of annexed showing region-wise: care with which the applications were considered and the measure of con­ (a) the total amount of compulsory formity to the policies, practices, rules deposits made by employees in pri­ and directives for the tijne being in vate and public sector units till April, force in regard to grant of such 1977, and assistance. (b) the amounts due in July, 1976 Payment of Amonnt deposited in to the said employees by way of re­ Compulsory Deposit Scheme payment of additional wages wd addi­ 950. SHRIMATI PARVATHI KRI- tional dearness allowance deposits, SHANAN: Will the Minister of and the amounts actually repaid 237 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 238'

there against till the end of April, 1977.

S t a t e m e n t

Figures in Rs. lakhs

SI. Nam j of the region T h e total Amounts Am ount N o. amount due to acutally of com­ employees repaid pulsory in private dll the deposits and end o f » made by public April employees sectors 1977 in private as and repayments public in July, scctots 1976 till April 1977

I 2 3 4 5

I R.P.F.C. Hyderabad 3431*77 518*87 518*03

2 R.P.F.C. Shillong 789*76 122*87 97 *io

3 R.P.F.C. Patna 7429*22 1170*09 1164*49

4 R.P.F.C. Delhi 3I 76-35 48 i *79 477*85

5 R.P.F.C. Ahmcdabad • 3877#54 599*29 598*29

6 R.P.F.C. Bangalore 4062*34 680*73 625*54

7 R.P.F.C. Trivandrum * 1509*54 234*47 231*03

8 R.P.F.C. Indore • 3360*12 529*37 497*22

9 R.P.F.C. Bombay 14098*07 2112*00 2067*32

10 R.P.F.C. Bhubaneshwar 1260*33 I98*86 197*67

R.P.F.C. Chandigarh 2584*06 356*84 346#i6 II \

12 R.P.F.C. J a i p u r ...... 1344-21 I98*24 197*06

13 R.P.F.C. Madras • 6370*31 991*53 939-43

14 R.P.F.C. Kanpur • • 5053*02 724*21 576*55

15 R.P.F.C. Calcutta .... 11084*02 1699*43 1696*46

Total 69430-66 10618.59 10230.20 239 WHtten Answer* JVNS if, 197? Written Antmtr* 340

KerltallnUon of Powerloom Indaetry (b) whether Government intend to increase the number of fair price 951. SHRIMATl PARVATHI KRI- shops and the quantity of supply; and SHNAN; Will the Minister of COM­ MERCE AND CIVIL SUPPLIES AND (c) if so, the main features there* COOPERATION be pleased to state: of?

(a) whether Government are aware that thousands of powerlooms are THE MINISTER OF COMMERCE idle in the country due to high prices AND CIVIL SUPPLIES AND COOPED of raw materials and slump in mar­ RATION (SHRI MOHAN DHARIA): ket; (a) to (c). While supply of essential commodities through the fair price (%») if so. the steps Government in. shops in the country continues, the tend to take to revitalise the power­ question of strengthening the public loom industry; distribution system, especially to cover the weaker sections of the community, (c) whether Government are aware both in the rural and urban areas, is. of the demand made by the all India under the consideration of Govern­ Powerloom Weavers’ Federation for ment. the exemption from the compound levy; and Controlled Cloth Policy (d) if so, Government’s reactien thereto? 953. SHRI S. R. DAMANI: Will the Minister of COMMERCE AND CIVIL THE MINISTER OF COMMERCE SUPPLIES AND COOPERATION be AND CIVIL SUPPLIES AND COOPE­ pleased to state: RATION (SHRI MOHAN DHARIA) (a). Yes, Sir. (a) whether Government have exa­ mined the controlled cloth policy; (b). The question of a new policy approach to the powerloom sector as (b) whether Government have also part of a set of coordinated policies for examined its effect on the industry the various sectors of the textile indus­ as a whole; and try, is under consideration of *he Gov­ ernment. (c) if so, the salient features of their findings thereon? (c). Yes, Sir. THE MINISTER OF COMMFRCE (d). The matter is under considera­ AND CIVIL SUPPLIES AND COOPE­ tion. RATION (SHRI MOHAN DHARIA). (aj to (c). The operation of the scheme for the production of control­ Supply of Essential Commodities to led cloth has been kept under constant Fair Price Shops review and modifications in the scheme are being made from time to 952. SHRIMATl PARVATHI KRI- time to meet the developing situations. SHNAN: Will the Minister of COM­ Some modifications were made in the MERCE AND CIVIL SUPPLIES AND scheme only recently in January 1977 COOPERATION be pleased to ytate; after keeping in view the effect of the scheme on the industry and the inte­ (a) how far are Government follow­ rests of the vulnerable sections of the ing former Government’s policy population for which the scheme is of supplying essential commodities to intended. Further review is being the fair price shops in the country; undertaken. 241 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers 242

' ftrtirttneat of Ex-Governor of L ogat Nottee served oh S.T.C. Reserve Bank 965. SHRI P. K. DEO; Will the 954. SHRI R. K. MHALGI: Will the Minister of COMMENCE AND CIVIL Minister of FINANCE AND REVENUE SUPPLIES AND COOPERATION be AND BANKING be pleased to state: pleased to state: (a) when was the Ex-Governor of (a) whether any legal notice has Reserve Bank Shri K. R. Puri due been served on the State Trading to retire under rules; Corporation by some foreign "company for not fulfilling contractual obliga­ (b) w'. jther the Governor retired tion of supplying fermented ethyl al­ from the service earlier than the cohol steadilyf schedule; and (b) if so, whether Government (c) if so, what reasons he has have made any study as to why the assigned for his earlier retirement? supply could not be maintained pro­ perly; and THE MINISTER OF FINANCE AND REVENUE AND BANKING (SHRI H. M. PATEL): (a) to (c). The term (c) if so, the facts thereof? of Shri K. R. Puri, former Ucvemor of the Reserve Bank of India was due THE MINISTER OF COMMERCE to expire on 19th August, 1978. He AND CIVIL SUPPLIES AND COOPE­ was allowed to retire from the post of RATION (SHRI MOHAN DHARIA): (a) and (b). Yes, Sir. the Governor on 2nd May, 1977 at his own request. Shri Puri did not assign (c) STC had entered into two con­ any reasons for his retirement. tracts with a Swiss firm for supply of 8.200 m etric tons of eth yl alcohol. After part supplies had been affected, hc*ii % % fat* STRf: shortages started appearing in the States from where Release Orders had been made by Government. While 95 5. TTo TTOlft f a f : WT efforts to procure alcohol from else­ Minister of FINANCE AND REVENUE AND. BANKING be pleased to state: *tflTf?) : : (* ) T (S ) t^f *wt* ^ t w f f a streamline the differential rate of interest under which weaker sections ^ % *nft f^TR 3Rf*rrr are given bank loans at the very low tnjirn: ^«t Sr «rer $ i interest rate of 4 per cent; and 243 Written Answers JUNK 17, 1977 Written Answers 244

(b) if so, the broad outlines of this least in their lead districts. Other Scheme? non-nationalised banks may also im­ plement the scheme on a voluntry THE MINISTER OF FINANCE AND basis. REVENUE AND BANKING (SHRI H. M. PATEL): (a) Yes; Sir. 2.3. Regional Rural Banks.— Under (b) A copy of the revised guidelines the scheme of Regional Rural Banks, of Diiferenti&l Rate of Interest Scheme credit is to be made available to the 4s enclosed herewith. borrowers r' the same rates as the cooperatives. These banks are there­ Statement fore, not permitted to advance credit at concessional rates of interest. To Revised Guidelines on Differential Rate ensure that the persons served by these of Interest Scheme banks can also avail themselves of the benefits of the Scheme, the sponsoring 1. Scope and Coverage banks may lend through Regional 1.1. The Scheme will be operative in Rural Banks on an agency basis. Thus, the entire country. eligible lx>rrowers will be able to obtain loans at the rate of 4 per an­ 1.2. Target—Banks should lend num in the areas served by the Re­ under the scheme minimum of J °f 1 gional Rural Banks. per cent of their aggregate advances as at the end of previous year. 3. Eligibility Criteria. —The cate^o- gories of persons enumerated in para 4 1.3. In order to ensure tha* the wea­ will be eligible to the benefits ol the ker sections in the rural area derive scheme even if they have no tangible maximum benefit under the scheme security of any worth to ofTer or. can­ and bulk of the advances are not not produce a security /guarantee of a preempted by urban/metropolitan well to do party, provided they satisfy areas, the banks operating the scheme the criteria laid down below; will ensure that not less than 2/?rd of their advances under this scheme are routed through their rural and semi- 3.1. Family income of the borrower urban branches. Correspondingly not from all sources does not exceed more than l/3rd of their credit under Rs. 3,000/-per annum in urban or the scheme may go from their urban semi-urban areas or Rs. 2.000/—per and metropolitan branches. annum in rural areas.

1.4. To ensure that person^ belong­ 3.2. He does not own any lan.i or the ing to Scheduled Castes and Scheduled size of his holding does not exceed one Tribes get their due share of benefits acre in the case of irrigated lana and 2.5 acres in the case of un-irrigated under the scheme, not less than l/3rd land. of the bank credit under the scheme should flow to the eligible borrowers 3.3. Members of Scheduled Castes belonging to Scheduled Castes and Scheduled Tribes. and Scheduled Tribes are eligible for the loan irrespective of their land to 2. Operational Agencies holdings, provided they satisfy the other criteria. 2.1. Public Sector Banks.—The scheme of Differential Rate of Interest 3.4. He can be helped to rise above will be operated by all the public sec­ his present economic level through a tor banks. productive endeavour with assistance from banks, the productive endeavour 2.2. Non-nationalised banks.—Non­ being as such would become economi­ nationalised banks having lead respon­ cally viable within a priod of, say* sibilities will operate the scheme at 3 years. 245 Written Answers JYAISTHA 27, 1899 ( SAKA) Written Answers 246

, ^.5. He does not incur liability to 4.4. Indigent students of merit going two sources of finance at the same in for higher education who do not get time. scholarships/maintenance grants from governmental or educational authori­ 3.6. He works largely on his own and ties. with such help as other members ol his family or some joint partners may 4.5. Physically handicapped persons give to him and does not employ paid purusing a gainful occupation. employees on a regular basis. Explanatory Note; 5. Terms and Conditions of Loan.— The terms and conditions of loan It is not intended that borrower under the scheme will be as follows: should be required to produce docu­ mentary evidence to establish his eligi­ 5.1. Amount of loan will depend on bility under the scheme. It is expected the particular scheme proposed to be that the officials of the bank at the financed and should be adequate to branch level would be conversant with enable the borrower to finale his re­ the economic and other circumstances quirements without having to borrow of the borrower. They may make funds from another source. It is ex­ such local enquiries as may be requir­ pected that normally, the maximum ed in each case before sanctioning Ihe amount under the scheme may not loan, bearing in mind the conditions exceed Rs. 1,500/-for a worK.nc; capital mentioned in this paragraph loan and Rs. 5,000/-for * term loan. In exceptional cases J particularly for 4. Categories of Eligible Persons.— institutions and in the cfise of indigent Persons who satisfy the income and students of merit, higher amounts may land holding criteria and H-osdly fall be considered. in the categories indicated below will be eligible to the benefits of thf scheme. 5.2. Both working capital and term- (The list is only illustrative J'.nd not \ian will be admissible u* accordance exhaustive). with the specific requirement of the borrower. 4.1. Scheduled Tribes, Scheduled Castes and others engaged on a very 5.3. Requirements cf margin money modest scale, in agriculture and/or may not be insisted upon as the cate­ allied agricultural activities. gory of borrowers belong to the wea­ kest strata of society and may not al­ 4.2. People who themselves collect, ways be in a position to furnish mar­ or do elementary processing of forest gin money. products and people who themselves collect fodder in difficult areas and sell 5.4 Rate of interest will be unformly them to farmers and traders. fixed at 4 per cent peT annum. 5.5. Term Loan.—for the acquisition 4.3. People physically engaged on a of fixed assets shall not exceed 0 years, modest scale in the fields of cottage including a grace period not exceeding and mral industries and vacations, Il­ two years on the repayment of princi­ lustrative example are; cutting cloth pal. The repayment schedule will be and sewing garments, making reason­ worked out in each case having regard able cheap eatables, home delivery to the nature of the activity of 1 he services of articles and commodities of borrower and the economics of the daily use, running way-side tea stalls, scheme. In assessing the surplus for plying of self-owned manual rickshaws payment of interest and principal, and cycle-rickshaws, repairing of due allowance should be made for the shoes /sandals mainly by hand, basket- sustenance requirement? of the bor­ making by hand etc. rower himself. 247 Written Answers JUNE 17, 1977 Written Answers

5A The assets purchased with the of the corporations meeting the eligi­ loan may be hypothecated to the bank. bility criteria indicated in para 3 4mA In addition, in appropriate cases of other terms and conditions indicated loans to a homogeneous group of bor* in the scheme. rowers, group guarantees may be ac­ cepted. 7.1. The Corporations themselves will be exempt from the income crite­ 5.7. Each loan is to be covered under ria. the Credit Guarantee Scheme. The guarantee fee should be met hy the 7.2. Finances will be made available banka, and not charged to the borrow­ to the corporations only against speci­ ers. fic and commercially viable schemes formulated by them. Further, the cor­ 5.8. The cost of insurance of the as- porations will not add any service sets charged to the banxs, if consider­ charges and the loans will flow to the ed necessary, should be borne by the beneficiaries at 4 per cent per annum bank. rate of interest.

5.9. The banks may consider some 7.3. The corporations will be res­ suitable initial moratorium in repay­ ponsible for repayment of the loan on ment, if so warranted. the due dates, irrespective of the state of recovery from the beneficiaries, 6. Institution.—Following institution wiU be eligible for credit under the 7.4. It will be the responsibility of scheme, the Corporations to ensure thi»t funds are utilised for the productive pm poses 6.1. Orphanages and Wowen’s only for which th**y have been sanc­ Homes.—-where saleable goods are tioned and not for meeting their nor­ made and for which no adequate and mal running expenses. The cost of dependable source of finance e.g. en­ establishment and other expenditure dowments or regular charities, exist. incurred for the implementation of the scheme shall be borne* by the Corponi- 6.2. Institutions for physically handi­ tions/State Government-. capped.— Persons pursuing a gainful occupation where some durable eciuip- 7.5. Since the advance.; to State Cor­ ment and/or continuous supply of raw porations will not be eligible for gua­ material is useful. rantee cover from th? Credit Guarantee Corporation of India l td.. State Gov­ Note.—Institutions for p h y sica lly ernments may have to provide guaran­ handicapped persons, orphanages and tee to the lending banks. Women’s Homes w’ill be exempted from income criteria. However, it should be 7.6. If a Corpo/aJon fails to ray the ensured that th ese institutions utilise instalments of loans, or violates any the funds for productive purposes only terms and conditions stipulated in the and not for meeting their normal ad­ scheme, it may be liable to forfeit its ministrative and establishment expen­ right for further finance. ses. It is also necessary to verify from independent sources about the gen­ Airbus Purchase Deal uineness of these Institutions. 958. SHRI GAURI SHANKAR RAI: 7. State Corporation for Scheduled Will the Minister of TOURISM AND Castes and Scheduled Tribes.--Banks CIVIL AVIATION be pleased to stale: may route credit under the scheme through State Corporations for the (a) the particulars of agents welfare of scheduled castes and sche­ through whom the airbus purchase duled tribes subject to the beneficiaries deal was finalised; *49 Written Answers JYAISTBA 27, 1899 i^AKA) Written Answers 250

♦b) were the agents wholly or par- THE MINISTER OF TOURISM AND tially Indian owned firm; CIVIL AVIATION

(a) whether any feasibility study THE MINISTER OF TOURISM was made before finalising the pur­ AND CIVIL AVIATION (SHRI chase of Airbus-300; PURSHOTTAM KAUSHIK): (a) The original offer of Airbus Industrie for (b) whether any experts committee Airbus A-300B2 aircraft to Indian was appointed by the Indian Airlines Airlines was at a base price of US or his Ministry to assess and evaluate $15,217 million in January, 1972. the feasibility and suitability; (b) The base price of each Airbus (c) who were members of such A-300B2 aircraft was fixed at US feasibility study team; and $19,303 million as in January, 1974. This was to be escalated at an agreed (d) what was the opinion of ^ e formula depending upon the indices study team ? of economy prevalent in Europe and Written Answers JUNE 17, 1977 Written Answers »$2

USA. However, a provision made in (c) The entire matter is under con­ the contract that at the time of de­ sideration and though a formal deci­ livery of the aircraft in 1976, the sion has yet to be taken it has been price will not exceed US $24.4 million conveyed to the Government of Maha. per aircraft. In actual fact, the ave­ rashtra that the Government of India rage price of the three aircraft came do not favour monopoly purchase by to US $23.68 million each. n State. V’ »ile Government recognise the important role that cooperatives (c) and (d). The proposal submit­ can play in the marketing of agricul­ ted by Indian Airlines was approved tural produce, it is their assessment by Government in accordance with that the monopoly procurement the prescribed procedures which in­ scheme as it has operated in Maha­ clude consultation with Ministries etc. rashtra has worked to the disadvan­ concerned. tage of cotton growers particularly the small growers and has thereby con­ Central Assistance for Cotton Mono­ tributed to a decline in production of poly procurement Scheme raw cotton in that State.

961. SHRI VASANT SATHE: Will the Minister of FINANCE AND REVE­ WTTW vt Vis) ^1^ NUE AND BANKING be pleased to state: 962. 3V ft* : *T»TT faMMH ^ (a) whether Government of M a h a ­ fa : rashtra have approached his Ministry seeking Central assistance for conti­ nuance of Cotton Monopoly Procure­ ( * ) WT tTTTTT ment Scheme; ^ W'nrfar frqrr fo r % % farfira ^?ff % fanj chase of cotton. «rrfy fom f ir w x (b) The State Government wants $ i *nfar, 1975 ir *nr*T qr the Reserve Bank to arrange for Rs. XtffK *fWT ftpT 707 fvURf IRT 60 crores either directly or through State Cooperative Bank. The remain­ jrf?r WTTf ffTcT foTt qfrwrfflRT VT ing Rs. 25 crores will be met from the tft, it iw State Cooperative Marketing Federa­ tion’s own resources. % fafaw wpff * far? sfir 253 Written Answers JYAISTHA 27, 1899 (SAKA) Written Answers

24 (Frequencies ) consist of a Chairman and not more than 8 Members. So far, only the Chairman of the Commission has been appointed. The Commission has not % ?fV*T yat started recruitment of personnel l)??r *r %

*>?n 74 7 fa*THT JTCT VT* sfTf*

7 07 f^nTRT fTTT qfT^Tfa^ f t 3TI Frontier Tea Company T# | I 964. SHRIMATI RENUKA DEVI BARKATAKI; Will the Minister of COMMERCE AND CIVIL SUPPLIES fjprfarr % sr^nrr AND COOPERATION be pleased to state: CTJIT ?f?5TT % *TP7J % fafa* FTHT f^ r ?TfcrfT?tT cTT’T ST9TT (a) whether the Frontier Tea Com- pany, a British 0wned Company in TT ift

2. *T^fi qJTT, 5TTf^TJT ^TT- (b) if so, who has bought the garden of the company in upper v&rfe Assam? fampT ^trf^fT ?r ift im t m^- THE MINIS'fiER OF COMMERCE s.itt * * f t **r%'wk *nr*T- AND CIVIL SUPPLIES AND CO­ f^TFT^R fsHTRt ffRT qfo

(a) whether the Banking Service 965. SHRI PRADYUMNA BAL: Commission has been constituted; Will the Minister of COMMERCE AND* (b) if so, the composition of the CIVIL SUPPLIES AND COOPERA­ Commission; and TION be pleased to state whether (c) whether the Commission ha9 Government have any plan of further started functioning? importing of edible oil to meet the THE MINISTER OF FINANCE AND emergency arising out of shortage? REVENUE AND BANKING (SHRI H. M. PATEL): (a) to (c). The Bank­ THE MINISTER OF COMMERCE: ing Service Commission was set up on 21st February, 1977. In terms of Sec. AND CIVIL SUPPLIES AND CO­ tion 4(1) of the Banking Service Com­ OPERATION (SHRI MOHAN DHA­ mission Act the Commission shall RIA); Yes, Sir. 355 Papers Laid JUNE 17. 1077 ^ Papers Laid 256

12 his. (4) A copy each of the following papers (®ina'i and English versions) PAPERS LAID ON THE TABLE under sub-section (1) of section 619A of the Companies Act,1956: — R e p o r t o f E n q u ir y C o m m it t e e o n FIRE IN GODOWNs OF COTTON CORPORA- (i) Review by the Government TION o f I n d ia a n d a s t a t e m e n t , on the working of the Minerals N otification u n d e r E s s e n t ia l C o m - and Metals Trading Corporation m o d it ie s A c t , C e r t if ie d A c c o u n t s e t c . of India Limited, New Delhi, lor o f T e x t il e s C o m m it t e e , B o m b a y f o r the year 1975-76. 1974-75 AND PAPERS UNDER COMPANIES A c t . (ii) Annual Report of the Mine­ rals and Metals Trading Corpora­ THE MINISTER OF COMMERCE tion of India Limited. New Delhi, AND CIVIL SUPPLIES AND CO­ for the year 1975-76 along with OPERATION (SHRI MOHAN DHA­ the Audited Accounts and the RIA): I beg to lay on the Table— comments of the Comptroller and Auditor General thereon. [Placed (1) (a) A copy of the Reportof in Library. See No. LT-370/77]. Enquiry Committee to investigate the causes of fire incidents which N otification u n d e r A ir c r a f t A c t , A n - occurred in the godowns of the Cot­ n u a l R e p o r t , e t c . o f I.T.D.C., L t d ., ton Corporation of India during f o r 1975-76, e t c . a n d a S t a t e m e n t . 1971-72 and 1972-73. (b) A statement showing the THE MINISTER OF TOURISM AND steps taken to implement the re­ CIVIL AVIATION (SHRI PURSHOT- commendations of theabove Com­ TAM KAUSHIK): I beg t 0 lay on the mittee. [Placedin Library. See Table:— No. LT-367 77], (2) A copy each of the follow­ (1) A copy of the Aircraft (Fifth Amendment) Rules, 1976 (Hindi ing Notifications (Hindi and English versions) under sub-section ( 6) of and English versions) published in section 3 of the Essential Commodi­ Notification No. G.S.R. 1639 in ties Act, 1955: — Gazette of India dated the 20th November, 1976, under s e c tio n 14A (i) The Cotton Control (Second of the Aircraft Act, 1934 together Amendment) Order, 1976 publish­ with an explanatory memorandum. ed in Notification No. S.O. 517(E) [Placed in Library. See No. LT-371/ in Gazette of India dated the 31st 77], July, 1976. (ii) The Cotton Textiles (Con­ (2) (a) A copy of the Annual trol) (Third Amendment) Order, Report (Hindi and English versions) 1976 published in Notification No. of the India Tourism Development S.O. 814(E) in Gazette of India Corporation Limited, New Delhi, for dated the 21st December, 1976. the year 1975-76 along with the Au­ [Placed in Library. See No. LT- dited Accounts and the comments 368 77]. of the Comptroller and Auditor General thereon, under sub-section (3) A copy of the Certified Ac­ (1) of section 619A of the Compa* counts (Hindi and English versions) nies Act, 1956. of the Textiles Committee, Bombay, f*r the year 1974-75 and the Audit (b) A statement (Hindi and Eng­ Report thereon, under sub-section lish versions) showing reasons for (4) of section 13 of the Textiles delay in laying tha above Report. Committee Act, 1963. [Placed in IPtaoed in Library. See No. LT- Library. See No. LT-369/77]. 372/77]. 357 Paper* Laid JYA1STHA 27, 1899 ( SAKA) Papers Laid 258

C k At r a l OovntHMiNT Omcnts (C o m . (v) The National Savings MKSCIAL EMPLOYMENT ATTER R e t ir e - Certificates (Fourth Issue) m e n t ) R u l u , N otifications u n d e r (Amendment) Rules, 1977 pub­ OOV ERNMENT SAVINGS CERTIFICATES lished in Notification No. G.S.R. A c r , G o v e r n m e n t S a v in g s B a n k s A c t 445 in Gazette of India dated the /. a n d R e g io n a l R u r a l B a n k s A c t . 2nd April, 1977. THE MINISTER OF FINANCE AND (vi) The National Savings REVENUE AND BANKING (SHRI Certificates (Fifth Issue) (Amend, H. M. PATEL): I beg to lay on the ment) Rules, 1977 published in Table: — Notification No. G.S.R. 446 in Gazette of India dated the 2nd (1) A copy of the Central Gov­ April, 1977. [Placed in Library. ernment Officers (Commercial Em­ See No. LT-374/77]. ployment after Retirement) Rules, 1977 (Hindi and English versions) (3) A copy of the Post Office published in Notification No. S.O. Savings Banks (Amendment) Rules, “754 in Gazette of India dated the 1977 (Hindi and English versions) 12th March, 1977, under sub-section published in Notification No. G.S.R. (11) of section 6A of the Provident 143(E) in G£>.zette of India dated the Funds Act, 1925. [Placed in Library . 31st March, 1977, under sub-section See No. LT-373/77]. (3) of section 15 of the Government Savings Banks Act, 1973. [Placed in (2) A copy each of the following Library. See No. LT-375/77]. Notifications CHindi and English versions) under sub-section (3) of (4) A copy each of the following section 12 of the Government/ sav­ Notifications (Hindi and English ings Certificates Act, 1959:— ► versions) under sub-section (3) of section 29 of the Regional Rural (i) The National Savings Certi­ Banks Act, 1976: — ficates (Fifth Issue) (Fourth Amendment) Rules, 1976 publish­ (i) The Prathama Bank (Meet­ ed in Notification No. G.S.R. 1742 ings of Board) Rules, 1976 pub­ in Gazette of India dated the 8th lished in Notification No. S.O. December, 1976. 4705 in Gazette of India, dated the 18th December, 1976.

(ii) The Post Office Savings (ii) The Gorakhpur Kshetriya Certificates (Third Amendment) Gramin Bank (Meetings of Rules. 1976 published in Notifica­ Board) Rules, 1976 published in tion No. G.S.R. 1743 in Gazette Notification No. S.O. 4706 in of India dated the 18th Decem­ ber, 1976. Gazette of India dated the 18th December, 1976.

(iii) The National Savings (iii) The Haryana Kshetriya Certificates (Fourth Issue) (Fifth Gramin Bank (Meetings of Board) Amendment) Rules, 1976 publish­ Rules, 1976 published in Notifica­ ed in Notification No. G.S.R. 1744 tion No S.O. 4707 in Gazette of in Gazette of India dated the 18th India dated the 18th December, December, 1976. 1976. (iv) The National Savings (iv) The Jaipur Nagaur Aan- Certificates (Fifth Issue) (Fifth chalik Gramin Bank (Meetings of Amendment) Rules, 1976 publish­ Board) Rules, 1976 published in ed in Notification No. G.S.R. 9 in Notification No. SO. 4708 in Gazette of India dated the 1st Gazette of India dated the 18th January, 1977. December, 1976. 259 Papers Laid JUNE 17, 1977 Paper* Lata a6o

(v) The Gaur Gramin Bank (xiv) Hie Gurgaon Gramin (Meetings of Board) Rules, 1976 Bank (Meetings of Board) Rules, published in Notification No. S.O. 1976 published in Notification No. 4709 in Gazette of India dated the S.O. 4718 in Gazette of India 18th December, 1976. dated the 18th December, 1976. (vi) The Bhojpur Rohtas Gra- min Bank (Meetings of Board) (xv) The Rae Bareli Kshetriya Buies, 1976 published in Notifica­ Gramin Bank (Meetings of Board) tion No. S.O. 4710 in Gazette of Rules, 1976 published in Notifica­ India dated the 18th December, tion No. S.O. 4719 in Gazette of 1976. India dated the 18th December, (vii) The Sarny ut Kshetriya 1976. Gramin Bank (Meetings of Board) Rules, 1976 published in Notifica­ (xvi) The Farrukhabad Gramin tion No. S.O. 4711 in Gazette of Bank (Meetings of Board) Rules, India dated the 18th December, 1976 published in Notification No. 1976. 5.0. 4720 in Gazette of India dated the 18th December, 1976. (viii) The Kshetriya Gramin Bank, Hoshangabad (Meetings of Board) Rules, 1976 published in (xvii) The Mallabhum Gramin Notification No. S.O. 4712 in Bank (Meetings of Board) Rules, Gazette of India dated the 18th 1976 published in Notification No. December, 1976. 5.0. 4721 in Gazette of India dated the 18th December, 1976. (ix) The Tungabhadra Gramin Bank (Meetings of Board) Rules, (xviii) The Bolangir Anchalik 1976 published in Notification No. Gramya Bank (Meetings of Board) S.O. 4713 in Gazette of India dated Rules, 1976 published in Notifica­ the 18th Decemb?r, 1976. tion No. SO. 4722 in Gazette of (x> The Puri Gramya Bank India dated the 18th December, (Meetings of Board) Rules, 1976 1976. published in Notification No. S.O. 4714 in Gazette of India dated the (xix) The Nagarjuna Grameena 18th December, 1976. Bank (Meetings of Board) Rules, 1976 published in Notification No. (xi) The Jammu Rural Bank 5.0. 4723 in Gazette of India dated (Meetings of Board) Rules, 1976 the 18th December, 1976. published in Notification No. S.O. 4715 in Gazette of India dated the 18th December, 1976. (xx) The Progiyotish Gaonlia Bank (Meetings of Board) Rules, (xii) The Champaran Kshetriya 1977 published in Notification No. Gramin Bank (Meetings of Board) 5.0. 913 in Gazette of dated Rules, 1976 published >n Notifica­ the 26th March, 1977. tion No. S.O. 4716 in Gazette of India dated the 18th December, (xxi) The Rayalaseema Gra­ 1976. meena Bank (Meetings of Board) Rules. 1977 published in Notifica­ (xiii) The Barabanki Gramin tion No. S.O. 914 in Gazette of Bank (Meetings of Board) Rules, India dated the 26th March, 1977. j 1976 published in Notification No. S.O. 4717 in Gazette of India (xxil) The Malaprabha Gra­ dated the 18th December, 1976. meena Bank (Meetings of Board) 261 Papers Laid JYAISTHA 27, 1899 ( SAKA) Papers Laid 262

1 Rules, 1977 published in Notifica­ (xxxii) The Magadh Gramin tion No. S O. 915 in Gazette of Bank (Meetings of Board) Rules, India dated the 26th March, 1977. 1977 published in Notification No. S.O. 925 in Gazette of India dated (xxiii) The Mayurakshi Gramin the 26th March, 1977. Bank (Meetings of Board) Rules, 1977 published in Notification No. (xxxiii) The Koraput-Panchbati 5.0. 916 in Gazette of India dated Gramya Bank (Meetings of the 26th March, 1977. Board) Rules, 1977 published in Notification No. S.O. 926 in Gazette (xxiv) The Marathwada Gramin of India dated the 26th March, Bank (Meetings of Board) Rules, 1977. 1977 published in Notification No. 5.0. 917 in Gazette of India dated (xxxiv) The South Malabar the 26th March, 1977. Gramin Bank (Meetings of Board) (xxv) The Marwar Gramin Rules, 1977 published hi Notifica­ Bank (Meetings of Board) Rules, tion No. S.O. 927 in Gazette of 1977 published in Notification No. India dated the 26th March, 1977. 5.0. 918 in Gazette of India dated the 26th March, 1977. (xxxv) The North Malabar Gramin Bank (Meetings of Board) (xxvi) The Bhagiraih Gramin Rules, 1977 published in Notifica­ Bank (Meetings of Board) Rules, tion No. S.O. 928 in Gazette of 1977 published in Notification No. India dated the 26th March, 1977. 5.0. 919 In Gazette of India dated the 26th March, 1977. (xxxvi) The Rewa-Sindhi Gra­ min Bank (Meetings of Board) (xxvii) The Sri Visakha Gra- Rules, 1977 published in Notifica­ meena Bank (Meetings of Board) tion No. S.O. 929 in Gazette of Rules. 1977 published in Notifica-^ India dated the 26th March, 1977. tion No. S O. 920 in Gazette of India dated the 26th March, 1977. (xxxvii) The Tripura Gramin Bank (Meetings of Board) Rules, (xxviii) The Cauvery Grameena 1977 published in Notification No. Bank (Meetings of Board) Rules. S O. 930 in Gazette of India dated 1977 publ:shed in Notification No. the 26th March, 1977. 5.0. 921 in Gazette of India dated the 26th March, 1977. (xxxviii) The Kosi Kshetriya Gramin Bank (Meetings of Board) (xxix) The Shekhawati Gramin Rules, 1977 published in Notifica­ Bank (Meetings of Board) Rules, tion No. S.O. 931 in Gazette of 1977 published in Notification No. India dated the 26th March, 1977. 5.0. 922 in Gazette of India dated the 26th March, 1977. (xxxix) The Himachal Gramin Bank (Meetings of Board) Rules, (xxx) The Cuttack Gramya 1977 published in Notification Bp.nk (Meetings of Board) Rules, No. S.O. 932 in Gazette of India 1977 published in Notification No. dated the 26th March, 1977. 5.0. 923 in Gazette of India dated the 26th March, 1977. (xl) The Ballia Kshetriya Gra­ (xxxi) The Bilaspur-Raipur min Bank (Meetings of Board) Kshatrlya Gramin Bank (Meet­ Rules, 1977 published in Notifica­ ings of Board) Rules; 1977 pub­ tion No. S.O. 933 in Gazette of lished Notification No. S.O. 924 in India dated the 26th March, 1977. Gazette of India dated the 26th [Placed in Library. See No. LT- March, 1977. 376/77]. 263 Foojrs Lild JUNE 17, 1977 Papers Laid

N o t if ic a t io n u n d e r s t a t e B a n k o f (i) G.O.P. 258 published in I n d ia (S u b s id ia r y B a n k s ) A c t , N o t if i- Tamil Nadu Government Gazette c a t io n AMENDING NOTIFICATION UNDER dated the 23rd March. 1977 mak­ C u s t o m s A c t , N otification u n d e r ing certain amendment to the N a c a l a n d S a l e s T a x A c t a n d N o t if i- Tamil Nadu General Sales Tax c a t io n s u n d e r T a m i l N a d u G e n e r a l Rules, 1959 S a l e s T a x A c t (ii) G.O.P. 259 published in SHRI H. M. PATEL; I beg to lay; Tamil Nadu Government Gaxetta, dated the 23rd March, 1977 mak­ (1)A copy of the Subsidiary ing certain amendment to the Banks (Appointment of Employee Tamil Nadu General Sales Tax Directors) (Amendment) Rules, Rules, 1959. 1976 (Hindi and English versions) published in Notification No. S.O. (iii) G.O.P 402 published in 1090 in Gazette of India dated the Tamil Nadu Government Gazette 20th March, 1976, under sub-section dated the 30th March, 1977 mak­ (3) of section 62 of the State Bank ing certain amendment to the of India (Subsidiary Banks) Act, Tamil Nadu General Sales Tax 1959. [Placed in Library. See No. Rules, 1959. LT-377/77]. (iv) G.O.Ms. 606 published in (2) A copy of Notification No. Tamil Nadu Government Gazette S.O. 30C(E), (Hindi and English ver­ dated the 20th April, 1977. sions) published in Gazette of India (v) G.O.Ms. 685 published in dated the 1st May, 1977 making cer­ Tamil Nadu Government Gazette tain amendments to Notification No. dated the 4th May, 1977. G.S.R. 665(E) dated the 2nd August, 1976, under section 159 of (vi) G.O.P. 686 published in the Customs Act, 1962 together with Tamil Nadu Government Gazette an explanatory memorandum. dated the 4th May, 1977. [Placed in Library. See No. LT- 378/77.] (vii) G.OMs. 690 published in Tamil Nadu Government Gazette (3) A copy of the Nagaland Sales dated the 4th May, 1977. Tax (Amendment) Rules, 1977 (Hindi and English versions) pub­ (viii) G.O.Ms. 717 published in Tamil Nadu Government Gazette lished in Notification No. FIN/ TAX/79/76 in Nagaland Gazette dated the 4th May, 1977. dated the 14th April, 1977, under (ix) G.O.Ms. 735 published in sub-section (4) of section 57 of the Tamil Nadu Government Gazette Nagaland Sales Tax Act, 1967 read dated the 4th May, 1977. with clause (c) (iii) of the Procla­ mation dated the 22nd March, 1975 (x) G.O.Ms. 714 published in issued by the President in relation Tamil Nadu Government Gazettee to the Stat? of Nagaland. [Placed dated the 11th May, 1977. in Library. See No. LT-379/77]. (xi) G.O.P. 720 published in (4) A copy each of the following Tamil Nadu Government Gazette Notifications (Hindi and English dated the 11th May, 1977. versions) under sub-section ( 5) of section 53 of the Tamil Nadu (xii) G.O.Ms. 818 published in General Sales Tax Act, 1959 read Tamil Nadu Government Gazette with clause (c) (iv) of the Procla­ dated the 11th May, 1977. mation dated the 31st January, 1976, issued by the President in relation [Placed in Library. See No. LT- to the State of Tamil Nadu: — 380/77]. 265 Papers laid JYAISTHA 27, 1809 (SAKA) Papers Laid 265 i N o t if ic a t io n s u n d e r T a m i l N a d u (iii) The Bihar Taxation on E nter tainments A c t , O r d in a n c e s i n Passengers and Goods (Carried RELATION TO THE STATE OF BlHAR AND by Public Service Motor Vehi­ R e p o r t s u n d e r D e p o s it I n s u b a n c i cles) (Second Amendment) Ordi­ C o r p o r a t io n A c t , S h r i H. M. P a t e l s nance, 1977 promulgated by the I beg to lay: Governor of Bihar on the 29th (1) (a) A copy cAch of the fol­ April, 1977. lowing Notifications (Hindi and (iv) The Bihar Sales Tax Engli>h versions) issued under sec- Second Ordinance, 1977 promul­ . tiOft 16 o f the Tamil Nadu Enter­ gated by the Governor of Bihar tainments Act, 193d read with clause on the 29th April, 1977. (c) (iv) of the Proclamation dated the 31st January, 1976, issued by (v) The Indian Stamp (Bihar the President in relation to the Second Amendment) Ordinance, State of Tamil Nadu: — 1977 promulgated by the Gover­ nor of Bihar on the 29th April, (i) G.O.P. 750 published in 1977. Tamil Nadu Government Gazette dated the 9th July, 1975, making (vi) The Court Fees (Bihar certain amendments to the Tamil Second Amendment) Ordinance, Nadu Ent3rtainments Tax Rules, 1977 promulgated by the Gover­ 1939. nor of Bihar on the 29th April, 1977. (ii) G.O.Ms. 1204 published in (vii) The Bihar Health 0 -3 Tamil Nadu Government Gazette Second Ordinance, 1977 promul­ dated the 8th September, 1976 gated by the Governor of Bihar making certain amendments to on the 29th April, 1977. the Tamil Nadu Entertainment Tax Rules, 1939. (viii) The Bihar Agricultural Credit Operations and Miscel­ (b) A statement (Hindi and laneous Provisions (Banks) English versions) showing reasons Second Ordinance, 1977 promul­ for delay in laying the above Noti­ gated by the Governor of Bihar fications. on the 29th April, 1977. fPlaced in Library. See No. LT- 381/77.] [Placed in Library. See No. LT- 382/77.] (2) A copy each of the following (3) A copy each of the following Ordinances (Hindi and English ver­ Reports (Hindi and English ver­ sions) under article 213(2) (a) of sions) under sub-section ( 2) of the Constitution read with clause section 32 of the Deposit Insurance (c) (iv) of the Proclamation dated Corporation Act, 1961: — the 30th April, 1977 issued by the Vice-President act\ng as President (i) Report on tha working in relation to the State of Bihar: — of the Deposit Insurance Cor­ poration, Bombay, for the year (i) The Bihar Cess (Second ended the 31st December, 1975, Amendment) Ordinance, 1977 along with the Audited Accounts. promulgated by the Governor of (ii) Report on the working of Bihar on the 29th April, 1977. the Deposit Insurance Corpora­ tion, Bombay, for the year ended (ii) The Bihar Molasses (Con­ the 31st December, 1976, along trol) (Second Amendment) with the Audited Accounts. Ordinance, 1977 promulgated by the Governor of Bihar on the [Placed in Library. See. N». LT- 29th April, 1977. 383/77]. 267 Papers Laid JUNE 17, 1977 Papers Laid 268

P a p ers under Companies A ct, State­ 12.CS hrs. ments re. belay m laying Report of CALLING ATTENTION TO MATTER National Insurance Company Ltd. OF URGENT PUBLIC IMPORTANCE Calcutta and Oriental Fire and Reported non-Implementation or General Insurance company Ltd.1974 Notifications re. interim relief to SHRI H. M. PATEL: I beg to lay: newspaper employees by their 'MANAGEMENTS (1) A eupy each of the following SHRI SAMAR MUKHERJEE papers (Hindi and English versions) (Howrah): Sir, I call the attention of under stib-sectlon ( 1) o! section the Minister of Information and 619A of the Companies Act, 1956:— Broadcasting to the following matter of urgent public importance and I (i) Review by the Govern­ request that he may maks a statement ment on the working o* the* New thereon: India Assurance Company Limit­ ‘The reported non-implemen­ ed, Bombay, for the year 1975. tation of interim relief to the news­ paper employees throughout the (ii) Review by the Govern­ country by the managements of the ment on the working of the ^ewspapers in spite of Central 'General Insurance Corporation Government’s order resulting in in­ of India, Bombay, for the year definite strike all over the country 1975. by newspaper employees’."

(iii) Review by the Govern­ THE MINISTER OF PARLIAMEN­ ment on the working of the TARY AFFAIRS AND LABOUR * National Insurance Company (SHRI RAVINDRA VARMA): It Limited. Calcutta, for the year should be the Minister of Labour. 1974. SHRI SAMAR MUKHERJEE: It is given officially to me just now. (iv) Review by the Govern­ SHRI RAVINDRA VERM A: With ment on the working of the your permission. Sir, the Labour •Oriental Fire and General In­ Minister will answer the Call Atten­ surance Company Limited, New tion. Delhi, for the year 1974. MR. SPEAKER: Yes, the Labour [Placed in Library. See No. LT- Minister. It has been changed. 384/77. [ THE MINISTER OF PARLIA­ MENTARY AFFAIRS AND LABOUR (2) A statement (Hindi and (SHRI RAVINDRA VARMA): I English versions) showing reasons made a statement before this honoura. for delay in laying the Annual ble House on tAe 1st April, report of the * National Insurance 1977,that notifications fixing interim Company Limited, Calcutta for the rates of wages of the working journa­ year 1974. [Placed in Library.. See lists and non-journalist newspaper No. LT-385/77]. employees under Section# 13A and 13D of the Working Journalists and (3) A statement (Hindi and other Newspaper Employees (Condi­ English versions) showing reasons tions of Service) and Miscellaneous for delay in laying the Annual Provisions Act, 1955, would be issued Report of the •Oriental Fire and immediately Accordingly, two noti­ General Insurance Company Limit­ fications, one relating to working ed, New Delhi for the year 1974. journalists and the other to non- [Placed in Library . See No. LT- joumalists-were issued on the same 386/77.] day i.e. first April, 1977.

•The Annual Reports were Md on the Table on the 6th April, 1977. Non-implementation JYAIS'l'HA 27, 1899 (SAKA) oj tnI;enm reL'te) LV «r- newspaper employees (CA) Wehave requested the State Govern- the Platter of non-implementation: ments to let us know the progress of with representatives of the Indian implementation of the notifications. and Eastern Newspaper Society, the We have not yet received this infor- Indian Languages Newspaper Asso- mation from a large number of State ciation, the All India News- Governments. But from the reports paper Employees Federation, the that have appeared in the Press, and Indian Federation of Working Jour- the representations that we have re- nalists and the National Union of ceived, it seems a number of em- Journalists. I have appealed to the ployers have yet to make the pay- Newspaper employees not to go on an ments. Some employers have also indefinita strike so that the pro- gone to Court, and obtained absolute posed discussions can be held in a or conditional stay -orders. The main cordial and construtive atmosphere. argument of such employers is that they have no paying capacity. SHRI SAMAR MUKHERJEE: Sir, today there are no newspapers throu- The House will recall that the news. ghout the country. Yesterday throu- paper employees ' had not had any ghout the country there was a strike. general revision of their wage struc- This shows how far the employees ture for the last 10 years or so. On a are agitated over this question' of in- reference from Government, the wage terim relief and from today a conti- boards made recommendations for nuous strike will go on. in those interim relief and Government deci- newspapers which have refused to • ed to notify the increases 'only with implement even the modified 'order effect from first April, 1977 and not issued by this present J anata Gov- from an earlier date. ernment.

This decision was taken because the MR. SPEAKER, Sir, this is a serious law as it stands does not clearly -rnattor. Government should have wo- empower the Government to filX in- ken up to this question long before. terim rates of wages retrospectively. This move by the Parliamentary and In view of this Government believed Labour Minister to call a meeting on that the newspaper employers would the 22nd June is not justified because have no difficulty in implementing already the newspapers are closed and the notifications with immediate effect, the employees are on a continuous. while awaiting the final recommenda- strike. They should have acted long tions of the Wage Boards and Gov- before. ernment's decision thereon. Sir, the statements of the em- :rhe Federations of newspaper ployees' federations ,and the organi- employees, gaveL call for a token tions of the working journalists have st\·)i.ke on: the 16th June, 1977 to made it categorically clear that their press their demand for implemen- strike action is not only against the tation of the notifications and for employers who have refused to im- an indefinite strike from the 17th plement the Wage Board awards but June in those newspaper establish- also against the policy of this Janata ments where the interim payment government which modified the Wage. has not been' made. Board's recommendations becauss the recommendations of the Wage Board Government are anxious that the for interim releif was having retro- notifications should be speedily im- spective effect that is, from 1st June, plemented. The Government is also 1975. Unfort~nately they expected keen 'that the employees do not fol- too much of the Janata government. low up the token strike with an in:- At least, the Janata Government c definite strike. I am calling a meet- should try to give effect to the total ing on the 22nd June, 1977 to discuss award of ·the Wage Board. 271 j«~ 6 u-implein*nitation JUNE17, 1977 of interim relief to 2J2 v newspaper employees (CA) [Shri Samar Mukherjee] and after following those procedures the recommendations have been given Sir, in his statement the Minister has by thei^ Wage Boards. The Prime admitted that the newspaper emplo­ Minister is present here. That is yees had not had any general revi­ why I am drawing his attention to sion in their wage structure for the this fact. The employees went to last 10 years or so. During these ten his house to ex^Tess their resentment years you know how much cost of on 12th May. But according to the living index has gone up. During report of the newspapers, it seems these ten years how much profit the Mr. Desai told the delegation to go newspaper employers have amassed. to the court. This they did not ex­ All these ten years the employees pect from the Prime Minister. and the journalists have been depri­ ved of the rise in their wages. So Whereas the employers had gone to they are perfectly justified in their the court, he is stated to have de­ action. The Wage Board has given clared that he cou’.d not enforce the the recommendations after going Government’s decision. Government through the income and expenditure had done its duty they could do no­ of ali the newspapers. So, the Go­ thing more. This hurt the feeling of vernment should have gone into the the employees. They expected some­ reports of the Committee which was thing else from the new Prime Mini­ formed to study the economic of the ster and the new Government. That newspapers. There was a Committee is why I am bringing this to the no­ appointed to go into the economics tice of the Prime Minister. The em­ of the newspaper. That Committee ployees asked the Government to has gone through all the questions take stringent measures to enforce regarding the income and the sources the award of the Wage Board on the of income and expenditure of the employers. The Government have so newspapers and on the basis of the many ways to put pressure on the recommendations of this Committee, employers. They can stop the adver­ the Wage Board have made these, re­ tisements, they can stop granting commendations. Now, the employers quotas o* newsprint, they can stop the are coming with a plea that they have permit of importing machines. All no capacity to pay this interim relief these measures must be used to force as recommended by the Wage Board the employers to accept the demands It is absolutely possible for them to of the interim relief as awarded by pay the interim relief. the Wage Board. I want to know from the Minister whether the Go­ MB. SPEAK7R: Will you now come vernment is now prepared to put to the question? This is all a fact. pressure on the employers so that After aU you cannot take your own they can accept to pay the interim time. You are expected to ask a relief to the employees. Whether the question but not to make a statement. Government is prepared to revise the SHRI SAMAR MUKHERIEE: The order modifying the recommendations who!e background is that th« emplo­ of Wage Board? The employees have yers have gone to the court. The demanded that this should take effect Wage Boards have gone through all retrospectively. So, I want clarifica­ the processes and they have asked tions on these points. One the employers to send questionnaires. flimsy argument has been given Many managements have refused to by the hon. Minister in his statement send the questionnaires. that the law as it stood did not em­ power the government to fix interim The« there was some meeting rates £nd wages retrospectively. where there was a unaniaums deci­ Taking shelter under law like this, sion regarding the procedures throu­ I think, is not just. Government is gh which the Wage Boards had to go, sufficiently empowered to give effect Nun-·i?;'plementation,JYAISTHA 27, 1899 (SAKA) of interim relief to 273 274 newspaper employees (CA) to the award of the wage board with goes, there was universal welcome retrospective effect. accorded to the decision of the go- vernment and the announcement in SHRI RAVINDRA VARMA: I do the House. Many organisations of not want to take as much time of the working journalists as well as other House as the hon. Member has cho- employees have passed resolutions, sen to do. As some of the prefatory and written to the government wel- remarks are such that need contra- coming the decision' of the govern- diction, you will permit me if I take ment and thanking the government. a few minutes to answer his ques- tions. First of all he said that the Reference was made by the hon. situation was quite serious. We ag- Member to what the Rrime Minister ree that the situation is serious. We said on the 12th. Of course the Prime are keen that newspapers should Minister is present here, and he come out and there should be no is quite competent to defend him- strike. There was a token strike self. But since it falls within yesterday. I am not sure whether the the purview of the remarks strike _will continue as an indefinite thab have been made in rela- strike. From the information avail- tion to the can attention' notice, you able to us there is reasonable ground will permit me to clarify the position. to hope that there will be no conti- The Prime Minister said that they nuation of the strike unless it be that could go to the court because they Mr. Samar Mukherjee has other spe- were the aggrieved party; any ag·- cial sources of information with grieved party has a right to go to the which he can' make such a statement court and seek justice. Since this in the House. ' question has been raised, I should like to read. out to you section 17(5) He said that action taken by the go- of the concerne.j Act whicj- clearly vernment was late. After the notifi- sayS that- "whsra any amount is due cation was issued government had to under this Act to a newspaper em- give time to the managements to im- ployee from an employer the news- p'ement the decision the notification paper emp~oyee himself or any per- of the government. Meanwhile some son iauthorised by' him in writing in of them went to the court, and the this behalf .. '.. without prejudice in matter is now before the courts. any other mode of, recovery make an Efforts are being made to make them application to the State government understand the need to implement for the recovery of the amount due the decision and the notification of to him, and if the state government the government, One had to wait and or such authority as the state govern- see whether this was implemented. merit may specify in this behalf is I refuse the charge that there was satisfi-ed that any amount is due to any undue delay on the part of the him it shall issue a certificate for the government. Government is interest- amount to the collector and the col- ed in seein'g' that its notification 'is lecto- shall, proceed to recover that implemented. It is not interested in amount in the same manner as ar- dramatic action which may jeopardise rear of land revenue. This method the chances of implementation of the of recovery is specified in the Act. decision, but in seeing that the work- Therefore, what the Prime Minister ers may get the benefit of the noti- said did not show any lack of. sym- fication issued by the government. ' pathy and did not mean an abdication of responsibility on the part of the 'We' also stated that there was con- government, but o•.ly indicated that siderable resentment against the atti- it is open to them to foll~w this tude ot the janata ministry. Perhaps course. he has SOme special source of infor- 'His main question was about retro- mation. As far as our information spective effect, and he tilose to use the 275 Non-implementation JUNE 17, 1077 of interim relief to 276 newspaper employees (CA) [Shri Ravindra Varma] ft ifcft fa^rf ft Tt adjective flimsy. He said that the TT fo n ft f W argument that we had mentioned in our statement was flimsy. 1 am sor­ w* ftnrr $ trtr fa*rtfr ft jwrtfNte ry a senior Member like Mr. Samar falTT $ I Mukherjee chose to use such an ad­ jective Sir, the law exists. It is not T f ft T^r | fa flimsy for us. It has to be respected. A» the law exists today, 13(A) does Tt ft not clearly empower the Government t f i f*r Ttf to give retrospective effect as far as interim relief is concerned. This was *T*T?n?[T WKtfr ftT WfcT TT fa* TNT examined not flimsy, but seriously, TT ffTfff 3RT fa ft Wtf with all the attention that law deser­ ft X* Tt X z -tt z TC ves, and after the examination we came to the conclusion that there was fan ^ i from tftr qr tfrT*rraw no clear authority. I wish. Sir, to point Tr wearrsr far ft Tt out to the House what would have fa 5T- tion or notification, it would also have been cha’lenged and it is in that Tlft Tt Tlfjr?T TT^ S fft ffTTfT Tf context, Sir that we have stated that Iff TrNr ?r 3TCT ^ fa TR^rfTlft the law, as it exists, does not em­ power us to give retrospective effect. srm feffW I ^*TT ffTTiT But this is a matter which the Gov­ ffTTt £ wt ^ ernment can consider and examine. ffTfart TT This is what was stated in the state­ ment. srtn* ^ n , Tff^rfTUT w Vt *nr^rf v ^ *nw ter Sir, as far as the other question that ft fa ^ r TT ^ HTTTT ^ y he raised are concerned, we are mak- 511 ink every e^ort *0 see that the mana- ftwr fPRft I t ftTT jtr^Tta gements, the employers implement £ fa STTTT Tt V* V the notification. Quite a tew employers have already done so and I have call­ ftrq Tra*r?t TTPT ^ii ■qiBd of the government has been, and will continue to be, to see that wor­ I? kers receive expeditious justice in SHRI RAVINDRA VARMA: Sir, every regard. It is worng to think the hon. Member raised many impor­ that this government waits till a tant questions. I will try to answer strike notice is given, or a strike be­ them very briefly. I shall try to comes effective, for negotiations. emulate her brevity. Sir, as far as There are many instances where the States are concerned, I regret to action has been taken by the govern­ say that a majority of the States have ment in time to see that strike do not not responded and we have not got materialise. Even now in regard to information from them. Only a few many other things this is being done. States have responded and it is not It is an unfair and wrong conclusion necessary to go into each question to arrive at, that the government will because some States did not have po­ act only if strike notices are given. pular administration at that time. I can assure the House that the poli­ cy of this government will be to Now, as far as the next question look at grievances as they are for­ is concerned, it is true that quite a mulated to avoid situations of this few smaller papers, as she mentioned, kind. But it is not in the hands of the have already implemented the award government only. There are three and one could expect, one did have parties, and government is only one. a right to expect, that the bigger If the other two parties act in such a newspapers would follow the exam­ manner as to precipitate issues, of ple of the smaller newspapers who course the government can only help have more hardships in many respects in alleviating the situation and pro­ than bigger newspapers. She is right moting a solution. in pointing out the fact that smaller newspapers have given the interim relief. But I think it would not be n*n«rr w ui (far) fair for me to take the time of the ITOTST 'foTT House by. giving the list of papers tbat implemented. Some bigger ntewqpapers have also implemented. I do not know, Sir, whether you would like me to I# invidious and ?[> tpTOPT# *T ^ | fa mention ntmeo. i have a list of both 3* tffar ^ I, the smaller *n<) t^e bijgger news­ *$^1 (T | 1 firPwer papers that have implemented the award % fen 3% 279 Non-tmpleinentation JUNE 17, 1977 of interim relief to 280 newrpaper employees (CA)

| * f t < n r m T « r n v t i t ] % WJT VfffK | «tT 7

fa % fa*r | i jt| & z*r *t arara fr vt mfc* W^TIT f l M VWffJ VfTf f^RT% fa 3T*Tr1l *w 4 r Vt flS'TTfl fa vfjrfwT *r afr t f^in srt* i *r^r ?rr it ^ f l t ^r%*ft I if f*r?r*R f, ^ S*n m ^ | ? «ft*rft *ftt% fa ^ jr *n*r ft *TPT if ^hn fa w *r W *T? Tf«TT ^Ti'TT statement because I have no evidence. j fa *c*rr: i* faTT *r *fr% Perhaps he is right in entertaining fa ^fT Wlff t TT TT v ft such a thought, but Govern­ ment have no such information. «f*T*rft 1 ?Tf wnj vnn* («ffmnrrc) -. VT* I -3ri T3T n 5T$r ^fC[Tt m m , *refr $ fa % W it Wf^

V t t 4HfayI VF fiqm Vf HT?ft ♦ffr irft aft % Vfr fa 22 ?rrft if they fail. recommendations. I do not know how a«3 Non-implementation JUNE 17, 1977 P.M.’s participation 284 of interim relief to in Commonwealth newspaper employees (CA) P.M.t‘ Conference (St.) [Shri Dinen Bhattacharyya] afraid there is some misunderstanding he will explain this attitude of gov­ in his mind. We have not modified ernment to the country. Is it now be­ any notification. There is only one coming a practice of this govern­ notification that we have issued; and ment ___about whom we became it is to that notification that I have proud when they declared that they referred. will take up the cause of the poorer Then, he has expressed his anger sections? at the fact that for 10 years, nothing MR SPEAKER: Will you kindly was done; the wage board’s recom­ give him a chance to reply to your mendation was there, and the govern­ question? ment did not implement it, he said, for 20 months. We have not been in SHRI DINEN BHATTACHARYA: power for 20 months. It is known to My apprehension is that hereafter, the hon. Member as well as it is other wage boards wil! give recom­ known to me that other gentlemen mendations in respect of the other were in power; and it they had ig­ employees. If this attitude is follow­ nored it (Interruptions)... .and the ed. what will be the result? # word gentlemen includes every body SHRI RAVINDRA VARMA; First —we are not responsible for it. They of all, I would like to say that I do not have been punished for it and for take umbrage at a-iy adjective that other heinus crimes. As soon as we was used. I only expressed my sur­ came, we issued the notification; and prise. As as the question of the we intend to see that the notification stri.te notice is con'e.ned. it is r.oi to is implemented. the government that any strike notice has been served. On the gove.nment no strike notice has been served. On 12.49 brs. the employers, strike notice may have been served. (Interruptions) The STATEMENT BY PRIME MINISTER ON HIS PARTICIPATION IN COM­ resolution that the hon. Member refers MONWEALTH PRIME MINISTERS’ to. was passed <->y o*»e of the iedera- CONFERENCE IN LONDON tions, in the month of May. The rea­ sons why government did not call a THE PRIME MINISTER (SHIRI conference of the working journalists MORARJI DESAI); Sir. as the House organizations as well as employers’ is aware. I returned Ihi- morning after organizations have already been stat­ attending the meeting of the Common, ed by me. Mainly, the reason is that wealth Heads of Government. In this we wanted the notification to be im­ tour I also stopper off for a few hours plemented. I do not think that the in Tehran at the invitation of His Im­ hon. Member wants to suggest that perial Majesty Shahanshah and for a tbs notification itself should become a day in Paris as guest of the "President matter of negotiations. That is not of France. Both of them are o’d and the attitude of the government. The valued friends with whom I was \ery povernment has announced its deci­ happv to renew friendships. In my sion. It has been notified. If the hon. discussions we we'e *ble to advance M?mber wants that the subject matter the cause of mutual collaboration and of the notification itself should become cooperation in matters of common con­ a matter of negotiations, he will be cern and we found a great deal of opening the flood-gates; and we would similarity of aporowch to world pro­ be creating a situation in which the blems particularly those pertaining to work**rs thamselves would find their energy. position Undermined. I hope, there­ This was my first trip abroad after fore. that that is not his intention. the assumption of offlc* by our Gov­ As far as h;g reference to the modi­ ernment. It wa« a matter of ureat fied notification is concerned. I am satisfaction to find that following our i85 PM.', participation JYAISTHA 27, 1890 (SAftA) in Commonwealth 286 P-M.s' Conference (St.) democratic elections and the orderly still owing allegiance to the British change of Government, the esteem Crown, others with monarchies of and prestige of India had not only their own and some like ourselves been restored but demonstrably with a purely republican constitution, enhanced in the international com­ but all free to express themselves as munity. Ih my talks not only with the suits t ie interests of their own coun­ Shahanshah, the leaders of the British try and motivated by securing * con­ Government and those of France, but sensus on problems of their common also with other Heads of Government concern. attending the Commonwealth Con­ ference, in the contacts with the Press The Commonwealth, as the IIouss media and indeed with people in all is aware, is a mu'ti-racial and multi- walks of life, there was admiration continental community of nations re­ for the maturity of the Indian people presenting one quarter of mankind, in their dedication and comm.tment some rich and strong, others small to the democratic system of Govern­ and weak. But all recognise the logic ment. When questioned, on various of inter-depeodence and commonality occasions, I pointed out that the tradi­ of interests. In population, India re­ tion of democracy was rooted in the presents m ere than half of its to tal ancient civilization of India. Fonvgn number of inhabitants. Un ike the ruie and such aberrations like the United Nations, the Commonwealth period of emergency, were contrary is not structured or governed by to our vaiues and our national etho. elaborate procedures. It mirrors the The elections have shown that in diversity of the entire community of the final instance the Indian people nations, but has a Character of infor­ have an inherent moral courage to mality and tradition of cooperation judge and elect their own rulers with­ which is perhaps unique. The Com­ out fear. Privately and publicly, I monwealth as it is now constituted, assumed all concerned that the new thus provides the kind of balance Government of India, buoyed by the which we want to see in the v^orld trust of the Indian people are totally and is an institution which can in ded.cated to the principles of demo­ course o f time set the pattern for a cracy and would ensure that our Commonwealth of the whole w o rld . constitutional principles can never The Conference met under the again be perverted. In turn, I was Chairmanship of my old friend and to d that the extraordinary courage Prime M in ister of U.K. M:\ Jam es C a l­ and sagacity of the Indian people was lagh an. He proved an admirable an asset and an encouragement to Chairman whose bonhomie, cheerfu- likem.nded people all over the world. dispos:tion, balance approach to the J, therefore, regard whatever succass various issues that carr.e up I achieved and attention and respect were contributory to the I received, as a tribute to our peoDle evolution of a con^mon outlook and v/ho proclaimed to the whole world approach that underlie the decis.uiis through their verdict their fa.th in that were reached. 1 found in him democratic values, their disapproval and all the other Heads of Govern­ of authoritarianism^ and their judg­ ment or leaders of the various cnu.i- ment and capacity to choose a Gov­ tries a keen desire to take a construc­ ernment which they could trust to tive attitude and come together, rather serve them. than drift apart. The problems dis­ cussed were such sensitive subjects The Conference of Heads of Govern­ as those of Human Rights, Southern ment of the Commonwealth was held Africa, Indian Ocean, North-South in London after a lapse of eight years. economic relationship, the problems The Commonwealth is, I would of developing countries, in all of emphasise, an association of inde­ which there could have been valid re­ pendent States, entirely free in their asons for d.fferences of opinion. Bul. internal and external policies, some as the result of the deliberations en- 287 PM .*9 participation • JUNE 17, 1977 in Commonwealth 288 PM.s’ Conference (St.) [Shri Morarji Desai] committed to these principles, while bodied in the communique which w?s the discussions on this subject at the issued at the end would show, nil of conference were not without differen­ us showed willingness to reach a con­ ces of opinion, a broadly acceptable sensu1; without sacrifice of the natio­ formulation was eventually worked nal viewpoints. out in keeping with the Common­ wealth traditions. We participated actively in the discussions on all subjects, particu­ It would, I think, be appropriate at larly the review of the international this stage to pay tribute to the work situation, Southern Africa and wor d of the Commonwealth Secretariat, conomic problems. In the socio-econo­ now under the able leadership of Mr. mic context, we highlighted the rele­ Ramphal, formerly Foreign Minister vance and significance of evcltir.g and of Guyana. Apart' from the many adopting technologies appropriate to activities of the Secretariat to main­ the social and economic conditions tain thhe diverse professional and ins­ obtaining in the developing countries. titutional links among Common wealth We emphasised that the role of machi­ countries and its innovative xole nes was to assist man in increasing in expanding intra-Common wealth his productivity and not make h:m cooperation, the Secretariat has taken their slave. We pointed out that dev­ very creditable Initiatives in the fie'd elopment effort and economic progress of economic cooperation among the should focus on the small and the Commonwealth countries. By inter­ poor and not go astray by the lure of national standards, the Commonwealth the big and the grandiose. The crucial Secretariat's efforts to promote such need for solving the problems of food cooperation have shown beneficial re­ production, storage and distribution sults at comparatively low cost. We and implementing our integrated pro­ in India have been glad not inly to gramme of rural development and in­ contribute to this cooperative pro­ dustrialisation were effectively brought gramme, but have a'so benefited out in our statements. from it, especially in our trade pro­ The communique issued in London motion efforts. day-before-yesterday which must have Besides the deliberations of the con­ received the attention of Honourable ference. the great value of the Members already, reflects the range if gathering was that it provided an subjects and the depth of discussions, opportunity for informal and bilate­ and the broad consensus reacn.xl «it ral contacts with so many distinguis­ the conference. It covers all major in­ hed leaders of Commonwealth Gov­ ternational problems like Southern ernments. Apart from renewing my Africa, the Midd e East, Indian O^ean, friendship with the British Prime Cyprus, and the widening jzap bet­ Minister, Mr. I pur­ ween rich, and poor nations and ma­ Callaghan, h a d poseful discussions with the President kes practical recommendations on of Bangladesh about our regional and economic, trade and functional co­ bilateral problems. Both President operation within the commonwealth. Zia and I agreed that it was in our A number of Commonwealth coun­ national and coihmon Interests that tries were greatly concerned jver the our relations should be bui t on the question of Human Rights in relation logic of good neighbourly coopera­ to Uganda. The Singapore Declara­ tion. With the Canadian Prime Minis­ tion of Principles adopted by the ter, we reviewed the problems which Commonwealth Heads of Government had come up in the way of our in 1971, affirmed the belief of ail harmonious relations and agreed that Commonwealth Government in fund­ within the framawork of our respec­ amental rights and respect for human tive national policies, efforts jhould dignity and equality. As the House be made so that beneficial coopera­ is only too well aware, we are fully tion in the fie ’d of peaceful u b . s of 289 PM.198 participation JYAISTUA 27, 1899 (SAKA) in Commonwealth 2Q0 PM,s’ Conference (St.) nuclear science and technology can towards social adjustmet with the be resumed and the old tradition of people of the country of their present Indo-Canadian friendship revived. domicile. The Prime Minister of Australia arid I felt that from their respective geo­ Sir, this visit vividly conveyed to graphic vantage points the Com­ me that almost every country sought monwealth Governments of Asia and not only the friendship of our country, the Pacific might with advantage but would, I believe, rejoice at our establish closer contacts in a region political triumph and our economic where they share common interests. achievements. There wfcs no Com­ Similarly, from mv conversations monwealth country which, after under­ with President Kaunda of Zambia, Sir standing the policies to which the Seewoosagur Eamgoolam of Mauri­ present Government is pledged, looks tius, and other leaders of African upon India with malice or indulges nations on the one hand and the in any unwarranted criticism towards Prime Minister of Jamaica and the our national objectives. It is recognis­ leaders of ihe Carribean on the other, ed that the policy of true non-align- I sensed that the Commonwealth ment as enunciated and practised by countries cherished their relationships us not only serves our interests but with India and expressed a firm desire makes India a coveted partner in their to intensify and enlarge the establis­ own network of relationships and their hed avenues of our cooperation. rlhe view of a stable world order. How­ Foreign Minister, Shri Atal Bihari ever, we know only too well that the Vajpayee, separately met many of his role we can play in the international colleagues, and like my sell came forums will ultimately depend on our away with the impress’.on that every domestic strength and the progress we Commonweath partner sought not make towards economic, scientific and merely to maintain but to streng­ technological self-reliance. then its relations with the new Gov­ As mentioned earlier, I met His ernment of India. In his Conversa­ Imperial Majesty the Shahanshah of tions he also covered nu.nv important Iran in Tehran. During the discus­ issues concerning our bilateral rela­ sions, the Foreign Minister and I had tions with various Commonwealth the pleasure of meeting Prime Minis­ countries. ter Hoveyda and Foreign Minister Khalatbari. Our discussions were wide ranging in scope and gave abun­ This visit also provided me with dant proof of Iran’s goodwill and the opportunities to meet a large number abiding vitality and potential of our of representatives of the Indian collaboration. Moreover we agreed community resident in the United that our countries have shared interest Kingdom and also of the world press in the stability and progress of the and media. Everywhere a new kind region to wthich we both belong. of interest in India was now evident. Whether it was the Indian community or the media, there is a feeling of Similarly, the stopover in Paris on renewed faith and expectation from the way back at the request of the democratic India. In the largely President of France afforded to me attended meeting of the Indian com­ another opportunity to discuss a munity which was held in London on number of issues of common interest. 12th June, on behalf of our people I My conversations with President responded with warmth to the dedicat­ Giscard d’Estaing and Prime Minister ed and emotional interest which they Barre were extremely friendly and have in the tend of their birth. At reinforced the prospects of our close the same time, I called upon them to and beneficial relations with France. be worthy of the traditions of this Questions relating to the use of ancient land by winning respect nuclear energy in the context of non­ through genuinely motivated efforts proliferation of nuclear weapons were 643 L.S.—10 291 Announcement re. JUNE 17, 977 Shri S. L. Shakdher 2Q2 relinquishing of office by and apptt. of Shri A. S. Rikhy as Secretary [Shri Morarji Desai] the House that Shri S. L. Shakdher, raised with me in many conversa­ Secretary-General of Lok Sabha is tions. I had the opportunity of re­ relinquishing his office tomorrow affirming our position, which had been morning on his appointment as Chief made clear on many occasions, both Election Commissioner. He has been in this country and outside, that we are interested in developing nuclear the Secretary-General of Lok Sabha energy for peaceful purposes only. for the last 13 years. He was in the Lok Sabha Secretariat as an officer Sir, we have wider options to of the House since 1950. His contri­ develop beneficial relations with the bution in adaptation and changes in community of nations than ever in the Parliamentary procedure with a view past In the last three months since to help the efficient functioning of we assumed office, within the frame­ this House is commendable. I and work of the positive thrust of non- my predecessors have always relied alignment, we have assured old on his sound advice. His rich know­ friends of our abiding commitments ledge and wide experience in parlia­ and repaired estranged relationships, mentary field is symbolised by his both near and far. We can claim treatise on “Practice and Procedure that our neighbours have greater trust of Parliament" not to speak of his in our friendship and the subcontinent numerous other publications. His as a whole is less disturbed by tensions advice on matters of procedure was and more inclined to cooperation. The always available to Member* irres­ Commonwealth Conference and this pective of their party affiliations. trip abroad provided me with an opportunity to affirm to the leaders Shri Shakdher is a familiar and from all parts of the world that this much liked figure in the parliament­ Government of India, sustained in the ary circle the world over. He has exhileration of the trust of its people been a member of several parlia­ and inspired once again by the vision mentary delegations and has availed and idealism of Gandhiji, will be of every occasion to acquaint him­ second to none in its commitment to self first-hand with the developments a world at peace striving towards in parliamentary processes and pro­ international social justice. cedures in different Parliaments of the world. He has been associated Altogether, this opportunity of with international parliamentary meeting the Heads of more than thirty bodies like Inter-Parliamentary Commonwealth countries, the Shahan­ Union, Commonwealth Parliament­ shah of Iran and the President and ary Association, Association of Secre- Prime Minister of France, proved taries-General of Parliaments. His that India commands great goodwill unanimous election in 1973 as Presi- and respect in the international com­ sident of the Association of Secreta- munity. ries-General of Parliaments to which references were made in Lok Sabha on November, 12, 1973 is evidence of 12.58 hi*. his popularity and standing among ANNOUNCEMENT RE RELINQUI­ Secretaries-General of Parliaments of SHING OF OFFICE BY SHRI S. L. the world. SHAKDHER, SECRETARY-GENE- Shri Shakdher’s appointment as RAL OF LOK SABHA AND AP­ Chief Election Commissioner comes POINTMENT OF SHRI AVTAR as a fitting tribute to hi« distinguish­ SINGH RIKHY AS SECRETARY, ed service to the House as also the LOK SABHA. position he commands as an expert MR. SPEAKER: I have to Inform on constitutional matters and pailia- ^93 Announcement re. JYAISTHA 27, 1899 ( SAKA) Shri S. L. Shakdher 294 relinquishing of office by and apptt. of Shri A. S• 1 Rikhy as Secretary mentary procedures. We shall miss say Mr. Shakdher is not only a him. We wish him well in his new scholarly person but an expert ad­ assignment. viser on the matter of working of legislatures. He had been very silent In appreciation of his long and in applying those rules and scholarly devoted service to this House and information and knowledge obout the following past precedent, I have functioning o* Parliament in practice. appointed him as Honorary Officer As we all know, the Parliament of the House. naturally reflects the mood of the 13 hrs. country; sometimes it is calm and quiet; sometimes, it becomes tempes­ THE PRIME MINISTER (SHRI tuous and this is a very natural MORARJI DESAI): May I, Sir, join thingt and during these moments he you in your well deserved appreci­ had always been a source of stren gth ation of the services of Mr. Shakdher and consolation. To see this calm and on the occasion of his demission of quiet figure sitting herfc, it looked as this office for an equally important if he had to help silently and at the office of the Chief Election Commis­ same time, resourcefully the Speaker sioner from tomorrow. I h a ve been to control the House. That is a very an active but silent witness for 20 important function that the Secretary years of his service to this House out General has to do. of 27 years. It is a fairly long ex­ Apart from that, he had been very perience and I can say without any objective. I don’t think any Member fear of contradiction that I found his had any hesitation in approaching work to have been in the true demo­ him irrespective of his party affili­ cratic spirit and he did his w o rk to ation. He had always been helpful the satisfaction generally of the to us all. I can say this from my whole House. experience when I used to sU on the It is not possible for anybody to side of the Treasury Benches and please everybody. Therefore, we now I can say this when I am sitting have to take it in that light, but even on the opposite side. He has been in that condition, I would say that helpful not only here but also on the he had been able to satisfy generally other important side of the function­ the whole House which is no small ing of Parliament, that is, the work­ achievement. I have no doubt that ing o^ Committees which is not popu­ he will do his work in the new office larly known because it is not reflect­ with equal credit and e v e n more with ed in thf press; the press does not all the rich exPerience that has not know about it. The Committee had here. And in many memoirs work is a very essential part of Par­ that he has written he will add one liamentary activities and there we re­ more, I am sure, on the Election ceive help from all officers, but par­ Law. I have no doubt that he will ticularly with Mr. Shakdher I have do his work with the greatest credit. got personal experience on many I wish him well and success in his Committees where we found his pre­ new task. sence and advice very useful, and that is why I used the adjective that SHRI YASHVANTRAO CHAVAN he is a verv resourceful person. Well, (Satara): Mr. Speaker, Sin I asso­ I am sorry he is leaving because cer­ ciate myself with you and the Prime tainly it is a loss to Parliament and Minister for offering my felicitations particularly to us. But it is a gain to to Mr. Shakdher whom I have ssen the nation since he is going as the sitting here as Secretary-General of Chief Election Commissioner. I Lok Sabha for many years. From my must say that it is a very appropriate long association with this House T can selection for the office of the Chief 2$5 Announcement re. JUNE 17, 1977 Shri S. L. Shakdher ^ relinquishing of office by and apptt. of Shri A. S. Rikhy as Secretary Election Commissioner because, I mood, h« always came to the rescue think, for the first time, at least as of the Speaker. That is a very big. lar a$ I remember, a person associ­ qualification which he has demons­ ated with legislative work is going trated, and this shows that the special to work as the Chief Election Com­ capacity which he has got to help the missioner, which is a very right Speaker in tackling situations is a thing. very good qualification. I have also seen Members quoting him ag an Well, Mr. Shakdher, you have all authority during debates, quoting our best wishes. Though we will from the book written by him jointly miss you here, we will meet you on with Mr. M. N. Kaul. This shows some other ground because, though that he is an authority on Parlia­ you are changing the place and the mentary functioning and Constitu­ position, you are certainly going to tional aspects: he has acquired .and an assignment with which all Mem­ developed this knowledge through so bers of all legislatures are connected. many years of experience and by his So far, you w*re only connected with personal qualities. I hope that, in his Members of Lok Sabha, but now you new assignment, he will maintain will be connected and concerned with perfect impartiality which is expect­ the problems of all the people con­ ed of the Chief Election Commis­ testing the elections and desirous of sioner—because the Chief Election becoming Members.... Commissioner is faced with the claims and counter-claims of many MR. SPEAKER: Not of voters? rival political parties—and that he SHRI YESHWANTRAO CHAV AN: will olay his role in his new assign­ I was coming to that point. Ulti­ ment more effectively. With this hope and confidence, I again express mately the test of success of a Chief my appreciation to him. It is a loss Election Commissioner is the fact that the voter js satisfied. Therefore, it fo r us that we shall not be able to m a in ta in our daily association with is a very important national institu­ him here, but I hope our association tion, and the fact that an experienced will be maintained in another forn* person is going there is a matter of after h* takes over his new assign­ joy for us. Certainly it is a matter of satisfaction to him also that he is ment. being promoted. I should *ay, or changed to a position which is very I express my appreciation of his important. He has all my best wishes services once again. for all the success. Naturally, as I have said, we will be missing him. SHRIMATl PARVATHI KRISH- but it will be our national gain. NAN (Coimbatore); On behalf of I supprt all the gocd words used my group, I associate myself with all by the Prime Minister and the the sentiments expressed so far, and Speaker. I would like to mention particularly how Mr. Shakdher has always been SHRI SAMAR MUKHERJEE of the greatest help to new and young (Howrah): Mr, Speaker, Sir, I fully Members of Parliament. He helped associate myself with the words of them come into the main stream of appreciation' expressed by you and the Parliamentary procedures and also Prime Minister as well as the Leader helped them to find put how they of the Opposition, for Mr. Shakdher. could derive the best from Parlia­ My experience with him has not been ment and fulfil their dutie* as Mem­ very long, but I have seen that, when­ ber? * the Members of Parliament A reference was made to his book on while the Speaker was not present the practice and procedure in Parlia­ in the House and Mr. Shakdher has ment. It may be compared to May's helped these Chairmen enormously ‘Parliamentary Practices’ and it wiU to create order in the House a^ain— be a useful guide for any student of as his book, which has been referred history in regard lo the evolution of to, is becoming more or less a Bible Parliament in this country, and also for tackling those who raised points for posterity in upholding the valuable of order, and I am sure, it will con­ Parliamentary practices that have been tinue to be so. In saying good-bye evolved in this House. Though the to him I would like to say that we Emergency vitiated the entire atmos­ are, in fact, not saying 'good-bye* but phere of the country, it hardly touched are only saying ‘au revoir* as we the fringe of the precincts Parlia­ would be meeting him again. ment. and the credit for the *ame goes to Mr. Shakdher.

I had the privilege of accompanying SHRI EBRAHIM SULAIMAN SAIT Mr. Shakdher to various international (Manjeri): On behalf of my Party conferences and I am grateful to him I would very much like to place on for the attention he paid to .*11 the record our appreciation of the great Members of Parliament. In Hong service rendered by Mr. Shakdher in Kong, when I fell ill. with all interest developing and strengthening the and attention, he took special care Parliamentary democracy of our about my health, an^ I am extremely country in the most difficult times. grateful to him for the same. Wherever One has to accept and concede that I have been, whether Hong Kong, Mr. Shakdher has effectively contri­ Ottawa, Laos or Kaula Lampur, there buted to the efficient functioning of were enquires abojt him and that is democracy in our country in the the greatest proof of the appreciation last fourteen years because of his his wrork received, not only from this rich knowledge of the Parliamentary country but from other countries also. system of democracy. No doubt, we He is now going to shoulder nsw all feel sorry that he is leaving us responsibilities and I am sure he will but we shall be seeing him again as acquit himself equally well as the the Chief Election Commissioner of Chief Election Commissioner. our country. I am sure he will per­ form his task to the entire satisfac­ MR. SPEAKER: Consequent on the tion of the people and supervise the appointment of Shri Shakdher as future elections in our country as an Chief Election Commissioner, the post Impartial officer and thus protect the of Secretary-General of Lok Sabha has democracy of our country. fallen vacant. I have gone through the records of service of Shri Rikhy and Shri Patnaik. Taking all factors I wish him well and also thank him into consideration, I have selected Shri for all the services he has rendered A. S. Rikhy to officiate as Secretary of to democracy; We shall also be miss­ the Lok Sabha from 18-8-1977, i.e. ing him, as he is also a great friend tommorrow. The Vo*t of Secrkary- of the Members of this Parliament. General shall be redesignated as Secre- 299 D-G. (Rlys.) JUNE 17, 1977 1977-78 300

[Mr. Speaker] f^ a rn r * f ?r H %ir *t *r tary until further orders. The post of Secretary-General was created iy r Wff^oT FTTC I I UTOT S^TR recently; now we shall have only % ffcT *r ft f q w | i Secretary. We shall consider it agiun vrT<»r Jifirttfas*r**r*i$w fr ff^r later on, but Shri Rikhy will be Secre­ tary from tomorrow onwards. '*r fre t r*rr% % f * ft qr fa *rt»r ut^ ?r* ?!#r ^ f i ^.PTPirlr ir finrnr *rfar v ft rfWt t i 13.15 hrs. im rfh r iwiV ^ v t t DEMANDS FOR GRANTS (RAIL­ X« f*T|t fiTcf.T f^f# fv^»r v WAYS), 1977-78— C o n td rTT V t c ?TT? rrr% ir % ftFTR »Tt*r 5T JWR wirf (^PT) : vr^t «rt i ^ ^MUdi ^ f% 5toV qfr- fnqf^fl it %q y rp ft qCtM3RT ^^pft ^TfftT ^RrTT *t it ^n=rf?TFrTT % «IHI< i rc f ’T snrc fa*n art fa r fa T^rr *r?t ir ir ^rr?^ f fa ^ fH V*Z * JTTT tf*TT fT-ft ^Tfft' ^ wnrr!> I jp^ t fa*rr t fa ftu w tr* &nrm- *tp- ^»r % ift P r® f ?7Tr% f , «rrf«if fiPF *Tf * f W R »rnrrfaT( t o t «rar ^ v r w t ?r % irfr w *tt armnr arr^TT fffrfircr 4>^ ^ *^v *il'^'ii aA HFTTn* I I 3|ft *

[Ms. DiPtmr-SPEAxn in th e C h a ir ] f aft r f r a t ^ 1 1 w ***** 301 D.G. (Rlys.) JYAISTHA 27, 1899 (SAKA) 1977-78

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congratulate the Hon*ble Railway [ ^ TTW 7CW Tj I _ Minister for having presented a sur­ for «tt »nft ^ ^ plus budget. I hone his colleague, the Finance Minister, will follow in his Ht^T'TT t I JTTT V’HT foot-steps and favour ils with a surplus ^T^TT f ^r^TT * n fl *fH «T^ % General Budget Ihis evening. But, Bnr ;T iftv r TTrft ^ ^nr f l w Sir, I would have appreciated if the Hon’ble Minister has said n word of «re vtfsrw t vmr thanks to his predecessor in office end also perhaps to the previous Govern­ tr?4t ^ ^rfv vrf^ft ment for having left the Railway finances in a happy state. He has qft q^TSTT f t *T% Pwft *ft inherited a very happy state of Rail­ ^TVT *TTTT f*TT *T% I «ll*H ^ way finances and I hope during his tenure he will present only surplus »T^r ^TR*T fw^T rTT WTt «fT. budgets and will not be in any diffi­ 1W %W HT'ft 'TT ^ I ;H*>*I culty for finding money for various uqr f*r^R ^ fe*n * t5 *T *r*F*n useful projects. Eeciuse, Sir, it is given or! t > a very few to build a f5T f ] HTrft I I 1 2 ^ ^ ^ * * new. Ordinary mortals such as we it ^ imft ^TTt ^ ^ are, it is given to us only to continue •JfTT ST^T TT TT^r t**TT ffW T t ^ **+ the work of others. Certainly you can try to imorove uoon previous rer*or* % tjt i^n t wtr TW % «T?t M *iUw mance anu tiiut should be the aim. ft4t| Wtf* f * « ^ *V\ But while thanks are due. they may be given. If high prices of cement can be tfn irwr *5 7J& «n f^ T^n t i attributed to the wickeaness of the previous Government, certainly hus­ X(t^\ it $ *tlft W^HPT ^T T*T *T*iPid banding of resources so as to lead to w w i % ^ n f *?r ?tT %rmT f the happy state of our Railway finan­ fa fro? «Wf % t sit fw *ft ces also should be attributed to the previous Government. If you look at f w$ **€t % *t*t

of accidents on railway*, one gets into tance, you are now engaged in electri­ a doubt whether discipline is being fying the line betv^een Madras and properly maintained and whether Triuvellore which is a very short dis­ attention is being directed to main­ tance. There is a demand in my cons- tenance of strict discipline. Especially tituuency, elsewhere in the State also, in the southern railway which has had that this should be taken up to Arko- its share of accidents, we And that on nam which happens to be my cons­ the same spot there were two acci­ tituency. And now even this small dents, one after another. This is little work has taken such a long time. something which should be looked into Very little money is being allotted to because we should not allow the con­ it. I had occasion to draw the atten­ fidence of the pubiic in the railways tion of your predecessor last time that maintaining an accident free service to only Rs. 18,000 and odd was allotted for be impaired. I hope the hon. Minister this electrification. I do not know will pay heed to this warning. what it meant. But then later on some more money was allotted and Thought should also be given to the even then the work is proceeding very all round railway development of the very slowly. Then there is the ques­ southern region in view of the indus­ tion of Madras-Vijaywada electrifica­ trialisation that has already taken tion that is being talked about for a place and that is £oing to take place. long time. But nothing seems to have I say all round devf,lonmf?nt because been done or at any rate ioihing you should direct your attention to seems to be visible on the surface. more electrification and construction Then the question of electrifying of new lines and conversion of smaller Madras-Bangalore line is also there. gauge into bigger gauge and also It is a thing which is devoutly wished doubling the track to meet the growing for and very ardently prayed f°r by traffic needs of that region. Till row people of both the States—Tamil Nadu I pm sorry to say that there has been and Karnataka and perhaps Andhra woeful neglect, I w»U not sav wilful Pradesh as well. So, Sir, when you neglect, of the southern region. Let consider this history of electrification me give a few instances. in the Southern region, you will find that it has been a very dismal and dis­ Very low priority has been accorded appointing affair and I hope the to electrification, especially in the Railway Minister will wake up to it southern region. One would have and do something. thought that the southern region being the farthest from the coal belt, elec­ Then construction of new lines* trification would have been undertaken Again Mangalor-Hassen line which even earlier in that region. One feels was sanctioned in our time, which was sorry to know that there has not been taken up 20 years ago—thanks to my any electrification in the southern friend late Mr. Srinivasa Mallaiya, region. You may remember that when ex-Member of Parliament. It is going the late lamented Lil Bahadur Shastri on at a snail’s pace and even now it was the Railway Minister and 1 was has not been completed. The difficulty of his humble deputy two decades ago, terrain and other difficulties are there. we sanctioned and started the electri­ I do not deny it. But the way in which fication of the little stretch of the this work has been going on certain­ southern railway, Tambaram to Villu- ly makes one despair of any expedi­ puram. less than'100 miles. I can tell tious job being done on the railways. the present Minister that all these 20 Similarly, Tirunelveli-Nagercoil-Tri- years not a meter of railway track of the vandrum line; its construction should southern region has been taken up be expedited. In this connection, a for electrification. They have been survey was undertaken long ago, very slow even in proceeding with because large areas of my constituency projects already taken up. For ins­ are without railway facility. The sur- 3 15 D.G. (Rlys.) JUNE 17f 1977 1977-78 316

[Shri O. V. Alagesan] though it was in connection with the vey was undertaken to lay a line bet­ election propaganda for his party. I ween Chingleput and Chinnasalem was not an eye-witness, but friends which passes through the ore belt via told me that several representations Uttiramerur and Cheyyor. I do not were given to him and he said, “All know the state of thai survey. I would these things have to be done with the ask the hon. Minister to either continue cooperation of the State Government. the survey or bring it uptodate as they Unless you vote Janata into power in say. Then, Sir. with the Kudremukh your State, I shall not be able to do Iron Ore project coming up and the anything." So saying, it seems he steel triangle of Salem. Hospet and threw away the papers like this. Vishakhapatnam slowly emerging from out of the industrial horizon of THE MINISTER OF RAILWAYS the southern region, there is a lot to (PROF. MADHU DANDAVATE): Let be done with reference to conversion me correct the wrong impression even metre gauge into broad gauge in that now. You know I am not capable of region. A uniform gauge should be doing like this, even if I want to. All thought of in order to caier to the present and much more future needs I said was, as far as over-head brid­ of this region. In thi> connection, the ges are concerned, the State Govern­ west coast railway has been talked of ment has to take the responsibility for a long time. But it has ilways and I hope your State Government will take it. Of couise. if been deferred. As long as 20 y ea rs jigo, our Government is there, our govern­ I remeber again, m y late lamented friend Shri Srinivasa Mallaiya plead­ ment will take that responsibility. So ing with the then Railway Minister far as the railway’s action is con­ Shri Sastriji that even then it should cerned, it will be independent of be taken up. He used to bring a big whatever form of government is map and show ho%v these regions -re there in the State. I never threw without any railway connection. So I any paper; it is not in my habit. hope that some beginning will be made and the Present Minister will bestir SHRI O. V. ALAGESAN: I am himself in time to make a beginin^ in satisfied with this. It is as it should that direction. Again with the pros­ be. It is good that Central Ministers pects of oil discovery in the eastern go to alt places because that gives an seas, the entire metre gauge of fhe opportunity to the local people to re­ Southern Railway from Madras to present their grievances first-hand Tuticorin requires to be made into and have redress at proper level. abroad gauge. These are all problems Your party happens to be in power which are forcing their attention on in most of the States except a few. you and I hope the Railway ?finister That should not be a motivation. will do well to think of them and plan in time and undertake these works on his own, during his tenure itrelf. In Arakonam, you might have seen that the subway there is very old, 14 bn. narrow and inadequate for the grow­ ing traffic needs. It has been a bot­ I am very sorry to say that cater­ tleneck and a curse there. It has to ing is hopeless. Sometime ago there be widened. I think the railways was a practice of having dining cars will have to do most of it and there attached to long distance and fast may not be much for the State Gov­ moving trains. That has been di*~ ernment to do there. There is a road continued. The minister should con­ on both sides. I do not think an over­ sider whether this can be re-intro­ bridge is feasible in that particular duced. locality. But the subway can be I thank the hon. minister for visit­ easily widened and not at much cost. ing Arakonam, my constituency The railways may not have to call jjl7 D.G. (Rlys.) JYAISTHA 27, 1899 (SAKA) 1977-78 318

upon the State Government to incur much expenditure. I request the mi­ nister to look into it. Wlcff 3>T vtafocl t o t ^r^rr f? i Ir T$tf *nsr ^Tlfr, 5^ ^ tftf “pt neering workshop in Arakonam which is not working efficiently. It is al­ snfr f , % gft most dilapidated. Neither the work­ ^ 3gcT ^TKTRY VT^’ ^ I ers nor the officers are very much in­ terested in it. I put a question whe­ t f ?TTT> W R . ther this workshop was going to be *Tf^T SltT TT ITTRft T1'T> upgraded in any sense, but I was 1 ^ hi»h1 «rr t f 5 T T W S*TPT -STT'TT -q lf^ I Then, Sir, I ask for the Kovai Ex­ press to stop at Arkonam- When I asked him, the General Manager with f nror fr f rqr*r ^ t f %^r good intentions gave a very lengthy wcr fortjfter tstoht | *rrtf reply, but the result was that he would not be able to do it. But later o I +1 ITT M lM on I found that the Express stops at vTHT JJT ^ rtf’ Tf cRT ^ TITT rT*T eft 4 -lf another station, namely, Jalarpet. It m«ff *:> 5rm- ft | wpt ^ is important for the people in the town of Arkonam that the Kovai Ex­ ?r ^rTT | 1 frrt sn^n | press stops there so that they may go m fs t-tf s t f t t to ^Vellore, their district headquar­ 1 ters, and come back. Though it may take a few more minutes if the Ex­ press stops at Arkonam, you may tfr f^vrfvRT consider that. $ ihNy tt ^ i Similarly, in some cases, level- ^ ^ 1 crossings have been planted very f a f^ T #HT I I ir^r H^T near the railway station where they are not useful. One such case was *1^1 ^ n't) fr iHTT ** brought to my notice near about Ar­ Tffr t I TT eft TTfeTI Tt^T konam. People of nearby village jTRTT ^ frTTT want it to be a little away from the station so that they may have access | T^n- ^rraT 11 to the village. So, you may kindly ff^TT irnft *rpfr do something in the matter. TT ft^fr «TTT fTT ^ I t f jww (ijr*R*0 : w b r ? «nrfr ijtf fan vWff VWR fr 3RcTT $ VTTVt tRTT? ^TT jf | t f 1T1TTV ^FT TT W llfr t f ST^fT 3*9 D.G. (Rlys.) JUNE 17, 1977 1977-78

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. . .♦ »* . :v : > - T ‘ r ; p. T".‘ ~ WP *»J faft efvm r PROF. MADHU DANDAVATE: I have already said It in my reply to ther Bi^ge^ discuasmp. ..JJhp Ty only % fit* ft* a discussion on tne Demands for Grants. ' •W**? ^Tfftr %f«F?T •r^it *»#| if^r^mwrJr f* wppt* into sympathetically. 3TPT I «^TT t HfFr Coming to certain other matters fair* *nrc*nti about the persons who were victimis­ fk m >tt srFft vt inft ^r ed during the Emergency and for the ffen^ tj fti*i*11 *t*t h sdi j| strike, there is an assurance that they would be taken back. So far as the Budget speech is concerned, i find fjTW *fta 4HfH|T I that already that part is over and all the persons who were victimised for V«n ft ft, MM'fl'H lf?ft ^ f t l l W Z the strike have been taken back. But sp.4<>Jjii I*mii f dfiH>l wWfl %<.oi j[ I there were qlso certain temporary SHRI DINEN BHATTACH AR Y A employees who were not confirmed. (Serampore): Mr, Chairman, Sir, I There are many such cases. I can congratulate the new Railway Minis­ send those cases to him. Their cases ter, Mr. Dandavate, for presenting should also fee looked into, during the Railway Budget in the House. In the Emergency period, certain demo­ one respect, I find a departure £rom tions, stoppage of increments, etc. the budgets that were presented hi were there. These things must be looked into with due sympathy. I the House before. He has reduced the price of the platform ticket. . . . will at least expect this from the new Railway Minister. PROF. MADHU DANDAVATE: That is a very insignificant part. Another aspect with which I think the Minister will agree is the perma­ SHRI DINEN BHATTACHARYA: nency of the catering staff who serve feut I find it significant because up till meals in the trains. They are paid now I have not seen in the Railway on commission basis. Even their kit, Budget any reduction in fa^s or dress, that is supplied to them is not freights or any other thing. TThis is satisfactory. Their cases also should the first time I find it. So, if Is a be looked into. Some sort' of a welcome thing. At the same time, I phased programme should, be. drawn also appreciate his views regarding up to absorb them in the Railways as the attitude of the authorities to­ regular workers. wards the railway employees. But I would have urged puon him to take Apart from this, I have certain immediate steps regarding d^^sual- cither things to mutton; You Have isation. He has said nothing in his allocated some money.for the broad- speech about it. I do not ibid any­ gifige line fit tU t fotion 0» flartin thing in the Demands for Grants . . . Railway, that is, Howrah-Amta and 1329 D G (RlV* ) JYAISTHA 27, 1889 (SAKA) 1977-78 330

Howrah-Sheakhola, and a Calcutta which the railway is proceeding, papor bag commented tbat it will people do not believe it. On the other take 30 years to be completed. I hand, it is creating difficulties for the come from that area and I know the travelling public there, both vehicu­ difficulties of the people. I will re­ lar traffic as well as the pedestrians. quest the Railway Minister to visit You must take urgent steps to expe­ that area. Some time back, one Mi­ dite the matter which will be help* nister visited that area and saw the ful both to the people as well as to people travelling on the roofs of the the authority. buses which is very risky. But still the people haVe to go for their busi­ Then there are longstanding prob­ ness and this is happening, because lems regarding certain railway cross­ the railway there had been wound ings on which flyover should be con­ up. structed. Every time the railway comes forward with an explanation Every time assurances were given that if the State Government pays 50 in this House that the broad-gauge per cent of the cost, then only the line will be there and the people will Railway Board can undertake that have no difficulty. But from the construction work. Every time I budget speech as well as from the have stated here that the State Gov­ grants, I find that the provision that ernment will never come forward. has been made is meagre and I do not know when this work will be com­ PROF. MADHU DANDAVATE: pleted. The Minister should satisfy Now it will come forward, the people how much time will be taken for the completion of those SHRI DINEN BHATTACHARYA: lines. No, it is not possible. What is the source? You can collect the excise Another line called the Arrah- duty from tariwala and others. All Shasaram Light Bailway is there. the resources are with the Central The old company Martin is continu­ Government. Why don’t you spend ing there. Even the railway people that money for (he very essential who were working there were not work? They can collect only sales getting their regular wages. They tax and the excise duty, but all the very often come to me and say that resources are with the Central Gov­ their wages must be guaranteed. I ernment. So, you must take the res­ think the Minister will take care of ponsibility of construction of those this thing and do something for those flyovers at least on the Highways. At employees and try to take over that least for the lines that pass through Ufke at least. That is not a very diffi­ the highways, you must take the res­ cult thing for you to do. You can ponsibility for construction of over­ easily take it over and convert it into bridges through which vehicles and broad-gauge line. That will be public can pass, or you must make he/pful. some other arrangement for construc­ tion of, sub ways. To certain old sub­ 1 , ways I have drawn the attention of fThen there are some other railway the railway authorities, particularly lines, at my place which connect link the General Manager, and I have also betw een Hooghly and Bankura. From raised the matter in this House.* cer­ tim e immemorial, that line is not tain sub-ways were built about a being looked into and only one train hundred years back at the time of in a day comes and goes. Either you inception of the railways; these sub­ wipd it up or you convert it into a ways are so narrow that no truck broad-gauge line. It was stated that or car can pass through them; even b y 1886 the underground railway will people cannot pass through them. b e completed, but the speed with People have made representations 331 D-G. (Rlys.) JUNE 17, 1977 1077-78 33^

[Shri Diuen Bhattacharyya] given a chance? We have got the asking rthe authorities to see that the requisite qualifications; we have com­ sub-ways are broadened to some pleted our apprenticeship course in extent* This work is not very ex­ the railways”. I would request the pensive. I mentioned certain names hon. Minister to see that these boys here before a*so, and I do it again who have completed their course, ’oday: Konnagore, Sheoraphuly and who have got the certificate from the Bandel. These are very congested appropriate authority as to their qua­ areas, and some steps should be lifications, are absorbed in the rail­ ta k e n to broaden at least these sub­ ways. That will be of great help not ways. only to those boys but to the Rail­ ways also because they have learnt The approach road? to the stations the jobs and all of them have had ^re very narrow in many places, and theoretical and practical training. So, people have complained many times these things must be looked into. as to why the railways are not tak­ ing the responsibility to broaden these My last point is about the housing approach roads to the stations. This problem. At least in the Howrah Di­ i-N a very long-standing demand. I vision I know there are hundreds of hope, the Railway Minister will be Commercial Clerks who have to go f!ood enough to look into this matter. to distant places because they have not been provided with any houses There is only a single line in Kat- or quarters near the place of work. wa-Bandel section. There should be So. some arrangement must be made a double line. Everything is there. at least to take up a phased program­ Why should electrification not be un­ me for housing a maximum number dertaken there? Similarly, Tara- of the employees, of whatever cate­ keswar is a place of pilgrimage and gory they may be. is visited by thousands of people, but only a single line exists there. I I once again request the Minister would urge upon the Railway Minis­ to see that these small problems are ter to see that another line is laid taken care of so that we may not in Katwa-Bundel section, so that more have to bring them to the notice of trains can come. Similarly, I would the House. urge upon him to do the same thing in Tarakeswar section also. SHRI B. P. MANDAL (Madhepu- ra): Mr. Chairman, Sir. first of all I Another point that I want to make thank the Railway Minister for the is this. Hundreds of young boys progressive budget that he has pre­ have completed their apprenticeship sented. This budget is generally course. Now, it seems that you are recruiting new ones. These boys meant to bring good to the poorer sections of the society, but we have have not been given a chance. I still to go a long way. Our Railway know, for some political reasons, a Minister is a veteran Socialist leader Jarge number of young men who and Socialism has always contemplat­ have completed their apprenticeship ed a classless society. So, I at least, course have not been absorbed. The expect the Minister to bring about a funniest thing is that they are all re­ classless railway system in our coun­ lations of raitwaymen who have been try. How this can be made posrfble serving the Railways for the last 15 is for him to consider, but the real or 20 years. In spite of this, these step forward towards socialism will b o v s have not been absorbed. On be takert only on the day there is a the other hand, new hands are re­ class less railway system in our cruited fri the railway workshops at country. Kanchrapara and Liluwa. The other day those young boys gheraoed me I come from the Kosi affected area and asked, "Why are we not being of Bihar. The Kosi has always been 333 D-G* (RlV«-) JY A IST H A 27, 1899 (S A K A ) 1977-78 334 considered as the ‘sorrow’ of the would request the Railway Minister country like the Yellow River of to give due attention to the branch China. A lot of havoc has been lines because the people in these re­ wrought by the Kosi. All the roads gions can be called backward people. and railways have been washed away and only one who has an idea of the Kosi River can realise the extent to Then, there is one particular rail­ which these people have suffered. way station, Mithai, falling within Fortunately, for some time the late my constituency. The southern side Mr. L. N. Mishra who hailed from of the station is heavily populated my district, was the Railway Minis­ and on the northern side of the sta­ ter, and since it is the wearer who tion. a road passes. The villagers knows where the shoe pinches, he have to cross the railway line quite proposed to introduce some new lines often. They have been requesting for In that area. But, unfortunately, he a crossing over the railway line. When has been taken away from this world I was a Member of Parliament, Fourth and some of the lines that were con­ Lok Sabha, in 1967. I had written a templated by him have not been letter to the then Railway Minister. started as yet. So, I must ask the Dr. Ram Subhag Singh, for providing Hon. Railway Minister to take note a crossing over the railway line so of the lines which Shri L. N- Mishra that people crossing the railway line had proposed to build but which he are not put to great difficulties. I could not complete as he has left the would again request the Railway world. One line was from Beharl- Minister now to provide for this fiunj to Simiri Bakhtiyarpur and one crossing at Mithai railway station from Madhepura to Singeswar Ast which falls in Saharsa district. and there are many other lines also. He had also contemplated the resto­ ration of an old line from Nirmali to O n ly last month, perhaps in the Bhaptiahi as it was washed away Toofan Mail there was an armed long ago. There is a line from Pra- dacoity near Sasaram in our State. tapgunj to Bheemnagar. apart from One and all passengers were looted other lines. So I would request the and robbed. The dacoits entered the Minister to kindly call for the ftle compartments, showed pistals and and see how many lines the late Mr. daggers and robbed all the passen­ L. N. Mishra had proposed to build in gers. I would, therefore, request the the Kosi affected area of Bihar. The Railway Minister to provide some people of the Kosi area have remain­ police guards for the protection of ed the worst sufferers as the Kosi has passengers as far as our State is con­ always been known as the ‘Sorrow cerned. of Bihar’—and, in fact, of the entire country. I would request him not to ignore this just because Mr. Mishra Lastly, during the Congress re­ belonged to the Congress Party and gimes, some committees like Railway was a Congress Minister. He had Guards Committee and so many Con­ made some good proposals and these sultative Committees, were constitut­ proposals should not be ignored. ed and undeserving persons were no­ minated to these Committees for po­ I would like to draw the attention litical reasons. It is high time that of the Railway Minister to the branch these Committees were done away lines of the railways. On account of with. They are causing unnecessary the increase in population, there is expenditure to the public exchequer. always over-crowding on these lines If at all these are necessary, I would and the people travel even on the urge upon the Railway Minister that rooft of the railway compartments. I deserving persons should be placed in 335 DG. (Rlv».) JUNE 17, 1977 1977-7 8 336

[Shri B. P. Mftndal] *t T£T (NftfkSft % T^T % these Committees and there should be no political considerations in this TfT, ^ nfMfWl 5#t frft matter. I fft TUflWH <5TTt t With these words, I would resume % « ^ t ^ g?ft ars % ^ ^ my seat and 1 hope, my suggestions will be looked into by the Railway vfhfr % T*rwrft ^nr it wptt t , Minister with due consideration. f^r^^rr 1 11*1 1155 hr*. TiNrftvt if ¥ t h tffft m *rf t [Shri S. D. P a u l in the Chair] f r * fif ftT ’TT ft’TT 1 srf t*t %? unftr faf (ftftroTTfT) : f t T t f v r a m r ^T?T 5T?ft I I TW j t f f f w ffar Tt TOTf *i^Ki ft i % tht i iribff *r TrRTT ^ Jiff % «T^R Tt TTfVTTT «r^T TT% if | ^»T 'fhFT vt 1 kSh ?tt *rrfan str ?nn % 4fFi 1*T e^mft ?t ft 1 % ^ ^ T T in fa n 3m ?rf *.«rHT ht *ftt *ft i W5Tf% ^ft TO TT T$ I I srrrf TfT «nrr %ni t t tp t ^ $ eft aft fr ^THTftrr rnr^f ft i ^ff *tt frtft ift? Tt iwt st **ftfr ijp *t?tt u rt vt » t o |, b r if i p r ^ s P m v f r ftw % Tfr wnr i ?ft, v nrfmff ^ ‘.t, ^ 337 D G- (RlVS.) JYAISTHA 27, 1899 (SAKA) 1977-78 33&

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[«ft WTfTT TT] ^ w ^ r f t t^r t t t^ t « TW «ftT fr »T R ^ ^ WlfrtlT TTT f * r % w m m h tw ^t i n wrfqsm, m w r t t srrw FTrtvr t t t t whjht ^ wfwrf wYt #wr w*wr Tt Tfrfcwf Tt «rtr *nr wi TTTT ^rf*l! fr tTo i^fo ^cwm WT ?*WTWW TTTT ^rt^T ryay T^q^ft *(5Y 'TTT^T^t T t =TT% | affT WTHRul aCTWT % 4"l^ TT % ♦?¥# Tt TPT ftlTT Vff6» w w i t% t t Mr<»q>r4 qr ^ fr frw TfT qT TTTft ft ffrmT ^ I t fft*T fr w?r qr WtgHK ^trTT $ i ^ TTTyf^qmT*n^|«ftrm«1f w n t ^ - % wfarrrt frw T^r % fVwrw frr^ ^rfrwf H^T ITCTTTf T> fr»TT Jr f w wtttw Tt ww-*ifwvT %t ; i ^TTT % I If -il^ni % fT iRrt TftTT ?*T fvrfw^ ir TT*T 7i5TTr | fr ^ T T fi fa ?WTT ».^rf7qi '►. aft 5T? WqiWT n, "J7? W'll •^'I'll ^.rKw fT T ^•-|4 «. ^TT wt ^ I ’ T ®T«?I T HPT fr WTT TT Sjf^.^T WTT 35 pn*R «rw ^t wwt P*wti TTTT ^ f r WTTT WF TT *J^TT f^TT wrrrm it WTTW Tt ^WT ^ W>T wtr *rsft w -! T t art wft q K T tt-, t t 'sicct^tt Tt wttwt f, 1 wwTqfr w fi^ ?T*nV^T VTrff ^ I WH WT5T T O W*TT ^tf^TT |

MR. CHAIRMAN; The time at our (iisposal is shori and we have to pas,s •ft warT w rtfor . om qfa the Appropriation Bill by 4 O 'clock to d ay. w?>?wr wrqrt w rit *t afr fr%, w ft frr^T frm

5 i t t j | K / t w w h q r r w *t t t t t ww ?7. P m r t t t t ^ % arr t t W R WTTfTT T7’*TT WTfTTT ? I ?WTT WFTFt T t frqt? T WTTT, ?T«r T T T Hdq>m1 q r art « t j Pttt fr?ft art ?»ftq^ t WFTtW T t fnrtt *WTfar P., f q ^ T?T WFTT W *?? 97. WTT T TTT W*p- ^TT Ttfxftr T^TT T T - ooqwo ajffar (.«* T*q*ft tY ranr- wqrrrft ^ tt w^t aft Tt w*t t fsnr Ttft £ 5TTT f ^ « H T *(T 300 ±4»ITI T7 rtTFtqa^ ^tt Tifi?n wtr wwt wwtw tt s t ^ wtw ^wkwwsw wft fw? T f(t, Tt *?. M t’+il TTWW ft IW TT f*W I fr STT W* fftW T Tt WT*T Wm RWTT TW WT^iT W *VS ^ft I q ^T fft 7WTT W^tTT«r T T f?WT WWT I 4 ?nqfr ttw t ^ t?wt ^ f r rw twtt sift Tt ®[ft TTT? fr *?W TTTT I TTTt tft T^Tt Vmx (WW^frjT) : WWTW% '•ff 71 4'4*i TTW ^>^1 «, -S'lVi) 'M^ w^rw, www qfw fr iWt *(t %TT %T TT TTWTT TW T**Fft T t fW TTT #r fatr ff^WTTT ^TT t frwT wt M t t t ^ j*t Tjft frwT wwt ff fT TTjt^ fW TTT ^T VWZ ^W TT% wYt T t TWTrfTWT tt fwrtwrf i frin JIT T Tt Wtftnft TT WTYT WfTWT l/H T *PTT | r>TTf^ft?w ftT »^BPTqTTTq5r WW WffiniV TT WTTT WHWT ^ I ^frlTT 349 D-G. (Rips.) JYAISTHA 27, 1899 (SAKA) 1977-78

ftrTT flft 3RT T fT ITPT I VltTRTW1?t ^firanff lPTST*f*W # Iff *T?T T^fr «ft ^ffm rifTfhfari^nff y t »nw>< fa w nr ft 5T ft f^lf *ntft «rm sfa- vt ^tprt ^t^t qirn 1 1 ^ s^tm m *rrrr h ws wt aft ^pptt £ ^rr ^nftT fasf^r «Rr-fa9rr v t «JR®II VTTTT if >ft, W ^ l i ?f 1 1 ft»?| |«rr 7H1TI; *?r w *tt fc*jn£ *nfar & *ftr ^ 1 ^ ir r # ifft vjrhrv % vro^ ^ in

3?TT 5T«n *tWT $*TT> q'^t

ifS?FT 3Y qqRqr^pT ^JT- % ^ft fa fq ® l fsr^ff if rr^7 ^ 1 h-jit: ^rfrzfr *rr ^ r *r£t aft % ^m nfaH W w wrr fft ?rrqffT T?rr fazn f ??V: prrr ft ^rft fa %«rr 5 0 fa^fa^TTft h t ?ftr ^ft ^jfrf^r fjT^ % H+'fl *2»ii ^t FTPT f t jTRTT *TT I "3RT ?T*PT ^f ?tq% ^T*T ^ f ft ftr TtT ^ ^rt ^T ?Tt f ( W W 5FTT ^ f t ^PRTT *TT I * p t r % ^wi'U if ffirr f ^ t v *rnr ^ ^ ^itt^t r ft «ft^rr qft ^tt ^ ft | ^ 1% ^ t f < T fraw^nr q^ r fa^ft

ST WTH 3TRT ^T ^ -1 1 5rfa?T ^ ^ ^t^«ftr^r^tfa?w^>T ^rt f*ret ffffa if qwT jwt pth f 1 sr^r f I f^Hhpt it fw ^ l^ HT f ^ l^ tl ?nft ?w t^t tft gfinrr t, * t ^ p t i^ f h jf t >trr%-3n% if s f ir t v f t ^ r t 35i D.C. (Jtlyc.) JUNE 17, 1977 1977-78 3 j2 u [ « r r ^ f« r ^ T j di I V*R faT ftf^nr ?ft WTWt «nr t^*t «iH ^rft if iff fw^mr Trf 4&t f t ^nrf ^ r ?ft f j - f t WT^t ^ ^TTT IFrT TT% WH?TT TT <#hr»Nr WWT Ttfa^ | q f CT 9% IPFit wfwf t ^Tt % T^t | Vfft ^ »raff % *rrr f fcWT $ I $ *T?ft *Tft^T *T t>g*TI ft* TT W«mW TTWT ? | farra* ttftTw rtt sf^t ^ ** » SHRI NANASAHIB BONDE (Amr ,- vati): Sir, I wanted to speak on a VlfaO iff ^ fa $ |j limited lopic. but since the criticism fa if *T*RTT WP#V ^Ttr | *ftr has been levelled agains* us th;it we are so timid as even not to ask for the ftw*! *CTTlft Sf f*f *TW% *T*nn resignation of the •Railway Minister l^>r 5Tl% TT JTUW #f STOTT TT?t f I f * the country from here. It is also, n place famous for its Goddess Amba W ^ TRT1TT155 f»m7 % %C Devi and thousands of pilgrims are 4 s % Tt aiw| «nft fa?f?ft i «n*ft coming there every day. I, therefore, •Tfft f*T *m , MlflMI <*t f a w f f I appeal to the minister through you to expedite this matter. Amravati- ?W JTTf ^ff q ^ U IVt TT *»T1RT TT^T Narked line is always on the agenda 353 D.G. (Rlys.) JYAISTHA 27, 1809 (SAKA) 1977-78

'but it has not taken any shape till now. jfrt ?n^ ?t *rf Fii*fffV I request the minister to give priority to the construction of this line. F^TST I fF*T WT Pi Cl oi W] f t ^ I 1973 W WVtt fr f?R^T ^FW FnpT I am not going to criticise the budget The minister has given us a % fFTT ^ F WFt fr fawr WT. I fairly good budget. T^rft Ftfr fr vfr^r ft^ft w if^ i f F t SWTT WFT<|T fr 5TWWT 5PP ^FW •ft FTFT FT fJF*T (Cflim) : ^F FTT’T fw^lfr % WWFF T f ?TT fa^TT * f j w; fa rra f 3ft w ^ft SRtliq *tF FT | I T F % F ^ E T fr F t I W T f a r j *nr f. tfw t fr fa^ra wt»ft f * f t r iflHi WffftT | ^TIF f t cTTtf fWTT ^ % t F t t Z WT f 5 F »t » wtT qiF T?cft I wVt TF % FWtqWrff FtWT « F VTFT ff I 5FWT

V t wre w: r v n wr** i t*t ~tt WTffir, ?flT g f t F i^ r vm. FtW^ ft ?ft *PT7 ^TT% f=nr =tt sfj-jj- T^ft3^ fSTFt fr ^

t mPi^TT ft ^ClMni ^ I fr fa i?Tf tT^rr qsrnr ^ ? fa qiFT k fai; Kf. f*Tfa?T tf m m ft far FT^ I FfTf f f *t f r w i f s w g r ft ? i friiumtd «rr?.?5Tft gfaerrf fa ^

^ rt fr ji'jfiT fr h't sft k m *JMWM fr W^ft 'pPiH I’f ^ t jTTFt ^ W ITT srwr t wt^t fftt % fa nfa *rNr fait F ftfr f t T3ff fr | TFfFC[ t^fr ^m i Wfr ITf t F T f a F T w. FfrW ?ftF FFtT TT3^^W ^Rfr5ZRTm -ftrft^Tf|TT | # f f wtr *nft tw^t ^ f i ? T W F f T fr 51 fi<4i f F t 24 W^ v t tf fr *trfsni farrg' fr FF?fr fF i ^ fr 16 Wl Tfcft | fFF f t ^3ff fr *JWF ^TT ^Igdl f, fa ?F JI'TT ft fT Ft7!! f t 3^t P;'*T I fr W^fr ^ ^ F^F^ fr TjFTT fa FF^frfT % 5TFFT ?TT ^t€t ^FF FTpT f t *fn[Frif qfrsffrF t t f f t « to* f t tftw ^FF 5TTT ifTFt tl^f .FTF ^ F lf WT ^ *ftw fWt FT% I TTF f t TfT ^ I Ft F 5T FTFIFIF 355 DjO. (Rips.) JUNK 17k 1*77 1977-78

ITT $ *R j +\'£\ ^ ita jp i *ftx QFWRI % ^tV 20 tftT 80 trrc# Swt ftm fa **nnr t t m % aft VT *WK *TT I f l l apjT ^ fa fff^t if arfl f ^nVT awnr s ? ' irtr ^ maim* «ftr fwrf % # f?TV f f ^ t if ^t TflT j I %fa«T *PTT VT*T if 50, 50 UlnVtn VT SHTH W ^ v tf s w «finft * «[®t »wt xr^t *TT t tft ?w ir f t HV^t V T^TIV ir wiNV t I ^ %?rr jf i 16.44 hr*. 50 4% % 30*% VT [Mr. Deputy-Speaksr in the chair] fan *nrr i irrr fa^rr t fa 2oi%^nrr vt fan ^ntT eft f s wtr g fan ft svtft Sir. while I gave one hour’s reply day before yesterday, I had raised | I »R*ft % *ftw»T *T ft* rf if 3PT VT certain issues regarding surplus and srro, v ^ t vt ?nrf^r* sro*n, mrem at that time I had put forward my v t qfajT, sftfaff VT TtV*TT tftT ^ ff point of view, but in the course of the discussion on the Demands many points qr ^ tft *feft ir ?tWt HTWT VT were raised and one of the points jp f* ft?n i raised was that it is true that in the last Budget of 1976-77 the previous Government had increased the freight rft?T 5TTO % «rfav IHT^T and had mopped up Rs. 87 crores. %*T V ?TlT «TT VT*T VT T^ d*iVt **nf And as a result of that, they were able to mop up a surplus of Rs. 65 crores. vt*t ^rrffij i ft t o , fav^nr *flr Many Members from the other side of *lOW

PROF. MADHU DANDAVATE: For A® s iciWhw % wtw that purpose, it is nsoessary to 357 D.G. (Xlvt.) JYAISTttA m, t m (SAKA) 1077-78 35 ft

, the. statistic* of the last 10 budgets. they were able to get Rs. 39 crores and In the 19 budget, they had in­ still they had a deficit of Rs. 61 ctores. creased the freight and collected Rs. 3 In 1976-77 there was again an increase crores. In spite of that, the deficit was in freight of the order of Rs. 87.35 Rs. 10 crores. During 1970-71, they crores and for the first ttme they were increased the freight and fare; and able to hnve a surplus of Rs. 65 crores. collected through such increase Rs. 26 crores. And even then, the railway SHRI T. A. PAI (Udipi): Since deficit was Rs. 20 crores. There arc you are making a political speech, in very interesting facts about 1971-72 1976-77 the surplus was Rs. 65 crores. and 1972-73 when they were able to In 1977-78, on the basis of the same record surpluses. But it was only a fare and freight, your surplus has superficial surplus. I will explain this. been reduced to Rs. 35 crores. In 1971-72, again, they were able to increase the freight structure and get Rs. 25.2 crores; and no doubt they were PROF. MADHU DANDAVATE: I able to show a surplus of Rs. 18 crores. am coming to that point. I have done And again during 1972-73 through in­ some home work and I have antici­ crease >n freight and fare, they were pated your argument. So, I am ready able to collect Rs. 17 crores more and with my answer. T h e y say that in gain a surplus of Rs. 3 crores. In the 1976-77 they were able to get Rs. 87.35 budgets of 1971-72 and 1972-73 even crores as increased revenue through though they were able to show a increased freight and that provided meagre surplus of Rs. 18 crores and the basis for the surplus this year. Rs. 3 crores respectively, it is interes­ But here I would like to indicate two ting to note that the surplus in 1971-72 additional factors. This year we had and 1972-73 was mainly due to the some additional liabilities, and impor­ dividend relief that was given by the tant liabilities. The depreciation fund Railway Convention Committee in and the pension fund provision has 1971; and that too with retrospective been increased by Rs. 10 crores and effect from 1-4-1969. The Railway the extra dividend that we have to Convention Committee was able to give pay is Rs. 15 crores. making a total them some sort of relief with retros­ of Rs. 25 crores of additional liability. pective effect; and it was of the order In spite of this liability, we have been of Rs. 21 crores in 1971-72 and of Rs. 24 crores in 1972-73. If we take this able to have a surplus of Rs. 32.5 into account, we will find that their crores. Their argument is that last performance was very poor. time they had a surplus of Rs. 65 crores and this time we have brought Now about 1973-74. There was again it down to Rs. 32.5 crores. In spite ot an increase in freight and fare; and the fact that the depreciation and the they were able to get through it Rs. pension funds have been provided an 43.20 crores; even then the deficit was extra sum of Rs. 10 crores, in spite of the order of Rs. 116 crores. Again of the fact that we have provided for we find that during the March 1974 an extra dividend of Rs. 15 crores, budget, there was an increase in fares still we have been able to budget a and freight; and they were able to surolus in spite of the fact that there have Rs. 136.38 crores mopped up from is no increase in freight or fare; on these additional revenues. Even then the other hand, Were is a decrease In their deficit was Rs. 114 crores. Again, the rate for platform tickets. So, what in 1974-75 by the supplementary budget I am saving is not a political argu­ they were able to have Rs. • ment at all; it is a financial argument crores. Both the o r i g i n a l budget and fTntemiotions) Last time T was the supplementary budget together yielding and every five minutes I was accounted tor a deficit of Rs. .' belne interrupted. This tim e T arti not Then we come to 1975-76. T W l ® yielding* because t *ave no fwi*- an increase Id freight and With tha D.G. (Rlys.) JUNE 17, 1977 197?-/d 360

[Prof. Madhu Dandavate] Som# Members have suggested that Shri Lakkappa has stated that there the speed of steam engine goods trains 1$ a rumour in Karnataka and else­ has considerably gone down* I would where that the wheel and axle plant like the House to know the break-up that was proposed to be set up in the of steam and other traction in goods vicinity of Bangalore is likely to be trains. In 1960-61, 94 per cent of the shifted. I want to make * categorical goods trains were hauled b y steam announcement that there is n° possi­ engines and only 6 per cent by electric bility of shifting this plant from the and diesel engines. In 1975-76 goods vicinity of Bangalore. This particular traffic hauled b y steam engines was plant is necessary in view of the fact only 32 per cent, and 68 p er cent was that even when w e completely absorb b y diesel and electric traction. When the capacity of the Durgapur and 94 per cent of the goods trains were TISCO plants, they will not be able hauled by steam engines, some of them to fulfil our need for wheels and axles. were moving fast, eliminating stations, Therefore, there is no question of some were like passenger trains, shifting this plant from the vicinity moving, very slowly and, therefore, the of Bangalore at all. average speed of the engines was very high. Now with only 32 per cent of Since some of the Members were the engines being steam, they stop at not present in the House, I want to almos* every halt, with the result that repeat the categorical announcement the average spreri has come down. w h ic h I m a d e tw o days ago. The pro­ motion prospects of certain categories Dr. Sushila Nayar has made a num­ o f C la ^ IV staff in the railways are ber of constructive suggestions regard­ not adequate, considering this, it has ing cleanliness, provision of reading been decided to introduce su:table lights, railway hospitals health services 20 selection grades to the extent in the railways, preventive s’eps relat­ per cent of the sanctioned post, of ing to health, re sale of property Class IV the non-technical service stolen from the railways to themselves of the railways. This will b en efit etc. We will take note of all these 50,000 Cl?3c TV cm p^ ovee- in th e suggestions and the necessary things Indian railways. It has also been de­ will be done. cided that these selection grades will be applied retrospectively from 1st I have already said that categorical August, 1976. instructions have been issued as far as I will take this opportunity to make the use of saloons is concerned. Not another important announcement, and to talk of Ministers, no officer will be that is regarding firemen. Firemen permitted to travel in a saloon when he are a category on the railways goes on tour or inspection where an who have suffered the most. They ordinary vehicle will do. Saloons are have to

!«.« hrs. PROF. MADHU DANDAVATE: 1 1 t have made a specific reference to that A question was raised about compli­ It wiU be our constant endeavour to mentary passes. I wish to announce see that in cooperation and coordina­ that some time back I have given strict tion with aU the Ministries concerned instructions that whenever the term of an integrated approach towards the such passes are over, they wiU stand transport policy wiU be adopted. cancelled. I will come before the House I will conclude by referring to some and lay a statement on the Table of demands that have been made by my the House indicating what are the colleague, Shri Bhadoriaji. I just institutions to which complimentary want to assure him that I believe in collective responsibility and whatever passes will be given, what norms will proposals and suggestions he has made be set up and everything will be known I shall place them before my colleagues to the Members. in the Cabinet and he shall rest as­ sured that the moment my colleagues feel that I should not continue as the Regarding stalls and other things, Railway Minister, Madhu Dandavate whatever has been said by the hon. will not be found in the Railway Mini­ Members, I have endorsed those things ster’s chair even for a second. in my earlier speech and, therefore, I MR. DEPUTY-SPEAKER: Now, I do not wish to repeat them. shall take up cut motions. I shall put Shri Rajagooal Naidu’s cut motion. Regarding West Coast and Erana- SHRI P. K. DEO (Kalahandi): Why kulam Alleppev railway, we have al­ not put all the out motions together? ready taken a final decision at the ministerial level we have included the MR. DEPUTY-SPEAKER; If the hon Members so desire I have no objection. West Coast for the final technical and Now, I will put all the cut motions to­ feasibility survey also. As soon as we gether. get clearance from the Planning Com­ Cut Motions Nos. 3 to 9, 14 to 18, 21 mission, we shall move ahead. I am to 59, 62, 63, 66 to 137 and 140 to 167, happy that both sides of the House werr pvt and negatived. have identical views on this point. MR. DEPUTY-SPEAKER: The ques­ tion is: AN. HON MEMBER: Our time is “That the respective sums not ex­ being encroached. ceeding the amounts shown in the fourth column of the Order Paper be MR. DEPUTY-SPEAKER: ‘Today, granted to the President out of the you are only introducing the Bills. Consolidated Fund of India to com­ plete the sums necessary to defray Therefore. I would suggest that an­ the charges that will come in course of payment during the year ending other ten minutes may be taken on this the 31st day of March, 1978, in res­ subject. pect of the heads of demands enter­ ed in the second column thereof SHRIMATI PARVATHI KRISHNAN: against Demands Nos. 1 to 11, }1A (Coimbatore): He has not said any­ and 12 to 22” thing about road transport ______The motioa~ wa+ adopted*------363 #Nfc ffip.) JUKI 17, 1OT 1977-7# j * * .

Demands far Grants (Railways)* 1977-78 FufcJ Lok Sabha

No. of Name of Demand Amount of Amount of Demand Demand for Demand for Grant on Grant voted Account voted by the House by the House on 29-3-1977

Rs. Rs. 1 Railway Board .... 84,24,000 1.67.64.000 2 Miscellaneous Expenditure 4,05,33,000 8.11.51.000 3 Payments to Worked Lines and others 15.56.000 31.12.000 4 Working Expenses— Administration 52.79.80.000 105*89,59,000 5 Working Expenses—Repairs and Maintenance * 221.48.94.000 446,09*88,000 6 Working Expenses— Operating Staff 112.91.45.000 227,45,89,000 7 Working Expenses—Operation (Fuel) 109.28.16.000 224,99*86,000 8 Working Expenses— Operation other than Staff and F u e l...... 36,53>76,ooo 74,57,52,000 9 Working Expense*— Miscellaneous Expenses i9*5®»56,ooo 39,17*12,000 10 Working Expenses— Staff Welfare • 19*10,53,000 33,21,06,000 11 Working Expenses—Appropriation to Depre­ ciation Reserve Fund • 46,66,67,000 93 ,33*33*000 11A Working Expenses— Appropriation to Pension F u n d ...... 13.33*33*000 26,66,67,000 12 Dividend to General Revenues and Contribution for Grants to States in lieu of Passenger Fare T a x ...... 6,02,13,000 219,30,21,000 13 Open Line Works (Revenue) * 2*99 ,95.000 5.99 .90*000 14 Construction of New Lines —Capital and Depre­ dation Reserve Fund...... 17*27*44.000 34,54,88,000 15 Open Line Works— Capital, Depreciation Reserve Fund and Development rund 4*3»*7,I5>000 816,60,58,000 16 Pensionary Charges— Pension Fund 12,80*32,000 25,60,64,000 17 Repayment of Loans from General Revenues and interest thereon—Development Fund • 8.38.96.000

18 Appropriation to Development Fund • 9 *6,65**6.000 19 Appropriation to Revenue Reserve Fund * 5.84.02.000 aft Payments tawrifds Amortisation of Over-capi- telsasdoee Repayment of Loans from General Revenues and interest thereon—Revenue Res* Crve Fiuut 1*0,55,28,000 ai Appropriate* ta Accident Compensation, Safety and Pmswifar Am elias Fuad • 3,07,61,000 6,15*3 f i ° ° 22 Acddett Compensation, Safety and Passenger Ameakiei Fund Obo m JYAISTHA 37,1«9* (SAKA) Bills introduced 3*6

10.08 bis. "That Clauses 2 and 8, the Sche­ APPROPRIATION (RAILWAYS) dule, Clause 1> the Enacting Formula NO. 2 BILL*, 1977 and the Title stand part of the BilL” The motion was adopted. THE MINISTER* OF RAILWAYS (PROF. MADHU DANDAVATE): 1 Clauses 2 amd 3, the Schedule, Clause 1, beg to move lor leave to introduce a the Enacting Formula and the Title Bill to authorise payment and ap­ were added to the Bill. propriation of certain sums from and PROF. MADHU DANDAVATE; I out of the Consolidated Fund of India beg to move: for the services of the financial year 1977-78 for the purposes of Railways. “That the Bill be passed/’ MR. DEPUTY-SPEAKER: The ques­ MR. DEPUTY-SPEAKER: The tion is: question js: “That leave be granted to “That the Bill be passed.” introduce a Bill to authorise payment The motion was adopted. and appropriation of certain sum6 from and out of the Consolidated 16.08 hrs. Fund of India for the services of the financial year 1977-78 for the pur­ LOKPAL BILL* poses of Railways/’ MR. DEPUTY-SPEAKER; We shall The motion was adopted. now take up Private Members’ Bills. SHRi P. K. DEO (Kalahandi): I beg PROF. MADHU DANDAVATE: 1 to move for leave to introduce a Bill to introducet the Bill. make provision for the appointment PROF. MADHU DANDAVATE: I and functions of an authority named beg to movet: the Lokpal for the investigation of “That the Bill to authorise pay­ administrative acts in certain cases ment and appropriation of certain and for matters connected therewith. sums from and out of the Consolidat­ MR. DEPUTY-SPEAKER: The ques­ ed Fund of India for the services of tion is: the financial year 1977-78 for the “That leave be granted to intro­ purposes of Railways, be taken into duce a Bill to make provision for the consideration. appointment and functions of an MR. DEPUTY-SPEAKER: The authority named the Lokpal for the question is: investigation of administrative acts “That the Bill to authorise pay­ in certain cases and for matters con­ ment and appropriation of certain nected therewith.” sums from and out of the Consoli­ The motion was adopted. dated Fund of India for the services SHRI P. K. DEO; I introduce the of the financial year 1977-78 for the BiU. purposes of Railways, be taken into consideration/' CONSTITUTION (AMENDMENT) The motion was adopted. BILL* (Amendment of article 16) UR. WQPDTY SPEAKER: We shall SHRi P. K. DEO (Kdlahandi): I now t*fce up the clauses. beg to move for leave to introduce a Bill further to amend the Constitution The question is: of India. •Published in -Owctte of indta ‘Extraordinary, "Part ti, Section 2, dated tlntroduoftd/ Movied with the xtco rowwriation of ttie Vice-President acting as President. 307 BUlt introduced JUN1I7, 107T BiUt Mrodaetd

MB. DCEPUT V-SFBAXER: The qua*, SHRI VC K. CHANDRAPPAN: I tian it: introduce the BUL "That leave be granted to introduce a Bill further to amend the Constlttt- tion of India.” COMPULSORY ADULT EDUCATION The motion was adopted. BILL*

SHRI P. K. DEO: I introduce the SHRI C. K. CHANDRAPPAN Bill (Cannanore); I beg to move for leave to introduce a Bill to provide for funds coNsrrrrunoN (amendment) and facilities and to set up necessary BIT.I,* bodies to ensure compulsory adult education in India. Substitution of article 156, etc.) SHRI P. K. DEO (Kalahandi): I beg MR. DEPUTY-SPEAKER: The ques­ to move for leave to introduce a Bill tion It: further to amend the Constitution of India. “That leave be granted to intro­ duce a Bill to provide for funda and MR. DEPUTY-SPEAKER: The ques­ facilities and to set up necessary tion is : bodies to ensure compulsory adult education in India." “That leave be granted to intro­ The motion was adopted. duce a Bill further to amend the Constitution of India.” SHRi C. K. CHANDftAPPAN: I The motion was adopted. introduce t the Bill.

SHRI P. K. DEO: I introduce the Bill CONSTITUTION (AMENDMENT) BILL*

FOREIGN OWNED PLANTATIONS (Amendment of articles 74 and 163) (NATIONALISATION) BILL* SHRI C. K. CHANDRAPPAN (Cannanore); I beg to move for leave SHRI C. K. CHANDRAPPAN to introduce a Bill further to amend (Cannanore); I beg to move for leave the Constitution of India. to introduce a Bill to provide for the nationalisation of all the foreign owned MR. DEPUTY-SPEAKER: The ques­ plantations in India tion is: MR. DEPUTY-SPEAKER: The ques­ tion is: “That leave be granted to intro­ duce a Bill further to amend the “That leave be granted to intro­ Constitution of India.” duce a Bill to provide for the The motion was adopted. nationalisation of all the foreign owned plantations in India.” SHRI C. K. CHANDRAPPAN; I introduce the Bill. . The motion toot Adopted. ■ ______•Published in Gazette of India Jfa traordinary Part n , Section 2, dated 17-6-77. t Introduced; With the recommendationsof the 'Vice-PtesfBent acting at ■ President ' 369 Bills introduced JYAISTHA27, ISM (SAKA) mm introduced 3 jfy

1642 htt. APPOINTMENT OF GOVERNORS I r BILL* BANKING COMPANIES (ACQUISI­ TION AND TRANSFER OP UNDER­ SHRI SAMAR GUHA (Contai): I TAKINGS AMENDMENT BILL* beg to move for leave to introduced a Bill to provide for the constitution of (Amendment of Sections 3, 4, etc.) a Panel of candidates for appointment as Governors of States. SHRI C. K. CHANDRAPPAN MR. DEPUTY-SPEAKER: The (Cannanore): I beg to move lor leave question is: to introduce a Bill to nmpnrf the Banking Companies (Acquisition and “That leave be granted to intro, Transfer of Undertakings) Act, 1970. duce a Bill to provide for the con­ stitution of a Panel of candidates MR DEPUTY-SPEAKER: The ques­ for appointment as Governors of tion is: States.” The motion was adopted. “That leave be granted to intro­ duce a Bill to amend the Banking SHRI SAMAR GUHA: I introduce Companies (Acquisition and Trans­ the Bill. fer of Undertakings) Act, 1970”.

The motion was adopted. FOREIGN PROPAGANDA IN INDIA (REGULATION AND CONTROL) SHRI C. K. CHANDRAPPAN; I BILL* introduce the Bill. SHRI SAMAR GUHA (Contai): I beg to move for leave to introduce a PUBLICATION AND IMPORT OP Bill to restrict the motivated political POLITICAL LITERATURE BY propaganda of foreign countries in FOREIGN MISSIONS IN INDIA India. (REGULATON) BILL* MR. DEPUTY-SPEAKER: The question is: SHRI SAMAR GUHA (Contai): I beg to move for leave to introduce a “That leave be granted to intro­ Bill to regulate the publication and duce a Bill to restrict the motivated import of political literature by political propaganda of foreign foreign missions in India. countries in India.” The motion was adopted. MR. DEPUTY-SPEAKER: The question is: SHRI SAMAR GUHA: I introduce the Bill. “That leave be granted to intro­ duce a Bill to regulate the publica­ tion and import of political litera­ NATIONAL DEFENCE ACADEMY, ture by foreign missions in India.” KHADAKVASALA AND THE INDI-* The motion was adopted. AN MILITARY ACADEMY, DEHRA DUN (RE-NAMING) BILL* SHRI SAMAR GUHA: I introduce SHRI SAMAR GUHA (Contai): I the BUI. beg to move for leave to introduce a Bill to rename the National Defence

* Published In Gazette of India 'Extraordinary Part H, Section 2, dated 17-6-77. J7I » « * mtrodvcM JYAISTHA *7, 18W (8AKA) Bilk introduced 3 7 a

IShri Samar Guha] SHRI CHITTA BASU: Introduce Academy Khadalcvasala and the the Bill. Indian Military Academy, Dehra Dun.

MR. DEPUTY-SPEAKER: The CONSTITUTION (AMENDMENT) question is: BILL* ‘That leave be granted to intro­ (Amendment of Articles 19 and 326) duce a Bill to rename the National Defence Academy, Khadakvasala and the Indian Military Academy, ¥T«> TOPft W i m : W H ftr) : Dehra Dun.” V STHI4 ^TrTT I flp TO ^ tofaFT The motion ipoj adopted. *F?*r tor wrif SHRI SAMAR GUHA: I introduce the Bill. ipnrfwo i i ^nrr * i MR. DEPUTY-SPEAKER: The CONSTITUTION (AMENDMENT) question is: BILL* “That leave be granted to intro­ (Omission of Article 370) duce a Bill further to amend the SHRI P. K. DEO (Kalahandi): I Constitution of India.** beg to move for leave to introduce a Bill further to amend the Constitu­ The motion was adopted. tion of India. * ¥To WW>I 4lM *1' fVBRIT MR. DEPUTY-SPEAKER: The question is: *rr tor ^>fni j? 1 "That leave be granted to intro­ duce « Bill further to amend the Constitution of India.” ARMS (AMENDMENT) BILL* (Amendment of Section 2) The motion teas adopted. SHRI P. X. DEO; 1 introduce the ¥To Wflft ( m f k ) : Bill. if Sff'TT* JT^TT K fa ** •rf®-

f^nnr, 1959 Vi v fan? PAYMENT OF BONUS (AMEND­ MENT) BILL* (Amendment of Section 10 and Sub­ stitution of Section 20, etc.) MR. DEPUTY-SPEAKER: The SHRI CHITTA BA»U (Garasat): I question ji: beg to move for leave to introduce a “That leave be granted to intro­ Bill further to amend the Payment of duce a Bill further to amend the 1965 Bonus Act, . Arms Act, 1959 .” * R DEPUTY-8PBAKBR: The TJ»e motion urns tAopt*d, quwttbn*: “That leave to* <«ra*4ed to intro, ?To in t m

*Pummoqq tm fleteMe India lwfranrtiMry, Pact H, g a rttw X dated 17-6-77. 373 Bills introduced JUNE 17, 1977 Bills introduced 374

CONSTITUTION (AMENDMENT) eft «rnn w *: fkiinm vt BILL* g I (Amendment of Article 862 ) SHRI HARI VISHNU KAMATH (Hoshangabad): I seek in all humility PROVIDING OF EMPLOYMENT, PAY­ the leave of the House to introduce a MENT OF UNEMPLOYMENT AL­ Bill further to amend the Constitution LOWANCE AND UNEMPLOYMENT of India. INSURANCE SCHEME BILL*

MR. DEPUTY-SPEAKER: The SHRI PRASANNBHAI MEHTA question is; (Bhavnagar): I beg to move for leave to introduce a Bill to provide for em­ "That leave be granted to intro­ ployment to all citizens of not less duce a Bill further to amend the than 15 years of age, payment of un­ Constitution of India.’* employment allowance and for un­ The motion wag adopted. employment insurance scheme.”

SHRI H. V. KAMATH: I introduce MR. DEPUTY-SPEAKER: The the bill. question is;

‘That leave be granted to intro­ duce a Bill to provide for employ­ CONSTITUTION (AMENDMENT) ment to all citizens of not less than BILL* 15 years of age, payment of unem­ (Amendment of Article 74) ployment allowance and for un­ employment insurance scheme.”

ww nqn w it) : The motion was adopted. $ JTWffl W TT |T far 1JST WfVffPT if wifhrr far#** eft SHRI PRASANNBHAI MEHTA: I introduce the Bill. *PJ*Tfa St 5TFT I

MR. DEPUTY-SPEAKER: Now, the MR, DEPUTY-SPEAKER: The House stands adjourned till 5p.m. to­ quefttiea ^ day.

T h at leave be grantedto intro­ duce a Bill further to amend the i«.ia hh Oeaetittttionof India." The Lok Sabha adjourned till 5eu(Sn_ The m otion toes adopted. teen of the Clock.

In Guatte e l India Extraordinary, Part II, Saetion 2, 77. General Budget, JUNE 17, 1977 1877-78

The Lok Sabha reassembled S ev en ­ ture in line with our declared prio­ teen of the Clock. rities. Also, I did not have the benefit of consultations with the Planning [M b. S peaker in the Choir] Commission, which has been recons­ GENERAL BUDGET, 1977-78 tituted only recently. Our Party's social and economic programme lays m b SPEAKER: The hon. Finance heavy emphasis on rural development Minister. improvement of the lot of Harijans, Adivasis and other downtrodden sec­ THE MINISTER OF FINANCE AND tions, eradication of unemployment REVENUE AND BANKING (SHRI H. and expansion of social services in­ M. PArEL;: Sir. I rise to present the cluding slum clearance. Most of the Budget for 1977-78, the first Budget projects in these areas fall in the State to be presented by this the Janata Plans. For reasons which are well Government. known to this House, it has not been 2. The massive mandate that the practicable for me to consult State people of India gave the Janata Party Governments and to induce them to in March this year was not just a vote reorient their development program­ against authoritarianism. It was also mes in accordance with our priorities. a manifestation of our people’s desire Nevertheless, within the framework for a reorientation and a reshaping of of the rather limited options open to our economic policies so as to bring me. I have endeavoured so to formu­ about speedy elimination of poverty late my budget proposals that they and destitution. In the last tew reflect faithfully the philosophy, pro­ weeks, our Government has taken grammes and priorities of our election manifesto. several steps to dismantle the autho­ ritarian and repressive structure erec­ 4. Before I outline the broad stra­ ted during the dark davs of Emer­ tegy that has been adopted, I would gency. It is our firm belief that the like to share with the. House niy open society we cherish wi!’. n main thoughts on the current state and insecure unless we can move forward prospects of our economy. The Eco­ with courage and sincerity to banish nomic Survey has covered this ground poverty, ignorance and disease from fairly extenfively. and I shall there­ this ancient and of ours. Our Party’s fore be brief in my remarks on this election manifesto sets out a coherent subject. economic strategy, laying emphasis on 5. The most fundamental problem of both bread and liberty. We seek to the Indian economy continues to be its accelerate the pace of economic pro­ inadequate rate of economic growth. gress and to distribute its fruits equit. In 1976-77. the rate of our economic ably in a framework of dcmocraev and growth was less than 2 per cent. In individual freedom. Judging by his­ the seventies thus far. our growth rate torical precedents, this is no doubt a has average about 3 5 per cent, per highly challenging task. The House annum, far too short of our Plan tar­ can rest assured that there shall be no gets. And yet, while it would be weakening of our solemn resolve to wrong to assert that our country hat* work for the fulfilment of promises not made significant progress since we have made to our people. independence, the fact remains ; that, eveh after twenty-five years

distribution of growth, which has ac­ last year, the lagged effects of which centuated regional disparities in the are still operating in the economy. level of development. While a number Although we have inherited a diffi­ o f States have recorded impressive cult price situation caused by distor­ growth rates during the last fifteen tions introduced in 1976-77, we are years, it is also a fact and a matter for determined to bring the situation fully serious concern that in this very under control. We have both the period, nearly one-third of districts will as well as the necessary instru­ have recorded virtually no growth, or ments to stabilise prices at a reason­ negative rates of growth, in outpu:. able level. The poor performance of these dis­ tricts has both depressed the national 9. It is a truism that in a country in growth rate and also led to a widen­ which agriculture accounts for nearly ing of disparities in the level of deve­ 50 per cent, of national income, the lopment a phenomenon which has dis­ overall growth rate of the economy is turbing implications for the success­ crucially linked to the performance of ful functioning our federal polity. the agricultural sector. The poor 7. A significant consequence of low performanceof the economy in 1976- and unevenly distributed growth has 77 war, largely because of the decline been that the proportion of people liv­ in our agricultjral production. ing below the poverty line is today higher than it was in 1960-61. The 10. In the late sixties, Indian agri­ available data show that this propor­ culture did exhibit signs of a new tion had tended to decline from 1968- dynamism. Unfortunately, the moder­ 69 to 1973-74, but in all probability nising impulses made only a limited the situation has deteriorated since impact on our apranan economy. This then. The magnitude of the problem is evident fromthe fret that the rate of can be assessed from the fact that in growth of agricultural production in 1975-76. the economy did not have the 1970:; was not higher than in the the capacity to absorb the production 1960s. Wheat is the only crop in re­ of even 120 million tonnes of food- spect of which there hasbeen a rapid grains. The low level^of purchasing increase in production, but eventhere, power is a reflection of the chronic the rate of growth of productivity has state of underemployment and unem­ greatly slackened in recent years. In ployment which is faced by large the case of rice, there have been im­ numbers of landless workers and pressive gains in non-traditianal small and marginal farmers. The fact States, but in major rice growing that the proportion of people living States there has been no breakthrough below the poverty line today is higher in yields. Crops like pulses vege­ than in 1960-61 strengthens me in my table oilseeds and raw cotton show a belief that there is need for a funda­ stagnant trend. Clearly, we have to mental change in our economic poli­ introduce some new growth impulses cies and programmes. The status quo into our agrarian economy, if we has disastrous implications for our are to succeed in raising the agricul­ future and our people are rightly tural growth rate to a minimum level clamouring for a redirection of our of 4 per cent per annum. policies. To this task, this Govern­ ment is fully committed. 11. Our development plans had 8. Rising prices have further accen­ hitherto deliberately laid emphasis on tuated the hardships faced by the industrialisation. And we have also common man. As the House knows, made significant progress in diversify­ the wholesale price index went up by ing our industrial structure. Yet, nearly 12 per cent in 1976-77. This judging by the fact that industrial ffras due, in a large measure, to an growth rate since 1965 has average4 ®xc*sstva increase in money sopply only 4 per cent, as compared with the 379 General Budget, JUNE 17, 1977 1977-78

[Shri H. M. Patel] 14. The task ahead is to devise an average annual growth rate of effective strategy for dealing with the 8 percent. from 1956 to 1964 the problems 'Of inadequate growt.h, decade since 1965 can hardly be des- crushing poverty, unemployment, crfbed as a decade of pr-ogress in in- growing regional imbalances and ris- dustrialisation. That an increasing ing prices. These. are all interrelated emphasis on industr ialisation should problems and have to be tackled have coincided with a decline In the simultaneously, though the emphasis- rate of industrial growth is a pheno- laid at any given period Of time may menon which calls for car4f~1 ex- vary in degree. amination. In 1976-77, industrial growth rate did increase to 10 per cent. However, there is ample evi- '15. It goes without saying that In dence to suggest that this was due any strategy We devise, the primacy to a number of fortuitous circums- of agr.culture has to be emphasisad. tances &0 that favourable results of In a country in which nearly 89 per 1976-77 cannot be taken as indicative cept of the people live in rural areas, of a more cheerful "trend, a faster increase in agricultural pro- 1~, B.oth because of inadequate ductivity is almost a precondition of growth rate and growing capital in- any successful programme for re- tensity of industry, India's industrial moval ef poverty, of enlarging em- structure has been unable to provide ployment opportunities, for stabilising a fast enough expansion .of employ- prices of essential goods and for ex- ment opportunities. As a result, the panding the domestic market for number of unemployed people on the manufactured goods. The primacy of live registers 'Of employment exchan- agriculture implies that investment ges has risen sharply. A high cost requirements of agriculture wourd be industrial structure catering to a given the highest priority. In spite highly sheltered domestic market of the importance of agriculture .and ~must necessarily find it increasingly the repeated avowal Of the need to .difficut to expand in the face of the improve the condition of rural India, constraint of a limited home market, tfie rural sector has in the pas-t not 13. In the last two years, while received a fair share of total investi- India's exports have increased rapidly, ble resources. This needs to be re- ctified. Currently, irrigation potential imports during 1976-77 were JE- strained both on account of the is growing at an annual rate of about bumper harvest of 1975-76 and in- 2 million hectares, We have to evolve creased domestic production 'Of such a plan to be able to double this rate critical inputs as fertilisers. The in the next few years. Both major and rapid increase in inward remittances medium and minor irrigation works has given added strength to India's 'must be planned and executed as balance' of payments and our ':eserves p-~rf"of an optimal' nati~nal strategy .have gone up considerably. Never- for water use. Similarly, thera Is an theless, we would be foolish if we did urgent need for stepping up invest- not take note of the fact that our bal- ment in such crucial elements of rural ance of payment still remains vulnera- in1rastructure as roads, markets, and able to the effects of sudden shooks. supply of pure, drinking water; such as harvest fluctuations. Bha cur- rent level of food stocks and foreign exchange reserves do give us wider 16. The programme of agricultural options in the management of tile development win have to be conceived economy than ever before. Foreign not. merely in terms of increase in exchange reserves will have to be .agricultural . productivity but also so deployed as to assist in the main- in terms of making all the households tenance of price stability, as also in in the agricultural sector more er less accelerating the process of growth. viable, This, will. require simultaneou- 381 General Budget, JYAISTHA 27; 1*90 CSAKA) 1977-78 3^

\ ftly, plans lor development of ancill- have to be found increasingly by •ary activities like poultry and daily enterprises themselves generating lar­ farming, fisheries,farm forestry, etc. ger internal resources of their own Not only will this involve the provi­ through more efficient operation as sion of necessary inputs but also the well as mpre effective pricing policies. development of organisations which Government will also continue to pay will collect, store and market the particular attention to the develop­ produce, for efficient marketing is ment of industries such as fertilisers, vital to the success of all these varied pesticides, cement, power afitf petro­ activities. We must generate large leum wriich have an important bear­ enough employment opportunities in ing on agricultural productivity. In rural areas so as to slow down migra­ order to create greater cost conscious­ tion to urban areas. This can best be ness in Indian industry, it is our in­ achieved in the framework of an tention to introduce, gradully, more area-centred programme of integrated competition by way of more liberal rural development, in which the import policy. In addition, "Ways and needs of small and marginal farmers means will be found to make possible and agricultural labourers receive optimal use of capacity in existence. priority attention. Simultaneously, in executing new pro­ jects, we must avoid delays which lead 17. The provision of more resources, to escalation of capital costs. It is howsoever vital, will not alone achieve usually not realised how great is the the objective. The entire apparatus cost of these delays. An analysis for for utilising these resources will nave cost escalations in 18 projegts which to be completely revamped in order had secured the approval in 1976-77 of to improve their effectiveness. It will the Public Investment Board shows require changes in the organisation that, in these projects, investment costs for both planning and implementa­ had increased to Rs. 555 crores as tion. 14 will need more intensive effort against the original estimate of about at improving agricu.tural technology Rs. 225 crores. This serves to empha­ and much greater extension effort. It sise the importance of timely execution will need speedier construction of of projects and extremely high social dams, wells and channels, faster and cost of delay. efficient rural electrification, better water and land management, more 19. Some of our large industries, timely supply of fertilisers and such as textiles, are today in serious pesticides, a more organised supply trouble and^are in particular need of of seeds and better storage and replacement and modernisation. There­ marketing facilities. Parts of the fore, adequate resources will have to country have been able to achicve be provided for investment in these this. What is needed is the spreading sectors. The present arrangements of such organisation, together with which the Industrial Development requisite resources, to those oarts Bank of India and the other term which are lagging behind. The effort lending institutions have for this pur­ needed would call for a total trans­ pose will have to be continued. Also, formation of the agencies which are efforts have to be made to ensure that presently connected with agricultural these industries generate more in­ development. ternal funds and, thus do not face con­ ditions which ultimately make them 18. Primacy of agriculture does not sick. I believe it might be a good idea, imply indifference towards, or .leglcct if the managements of more efficient of, modern industry. All that it mills were to be prevailed upon to implies is that, in so far as a larger take over, as an act of social responsi­ proportion of investible resources bility, some of the sick units and available to the public sector is diver­ nurse them back into sound health ted ta agricultural development, re- under conditions to be laid down by SDHDcea lac iaduilrial growth will Government. 383 General Budget, JUNK IT, 1977 1977-78 384

[Shri H. M. Patel] New strategies have, therefore, to be 20. Faster and timely development evolved to provide gainful employ­ of power is an essential condition of ment on a large scale in the rural -accelerated economic progress. I am areas themselves. The accelerated convinced that much more remains to growth of agricultural production Will be done in respect of both power plan­ in itself increase the scope for em­ ning and development if we are not to ployment in the rural areas. It is in­ have to face recurring severe shorta­ teresting to note thatlabour input per ges of power. Power is now recognised acre of land in Japan is four times to be as essential to agriculture as to the corresponding level in India. This industry and shortages of power can is an indication of the scope for ge­ disrupt the production of food 83 nerating new employment opportuni­ much as of cloth. We shall therefore ties in the process of modernising our make every effort to hasten the pace agriculture. More irrigation, better of expansion of power in the coming cultural practices, double-cropping, in­ years. creased use of fertilisers and weeding will certainly create more jobs, but 5t 21. There is another field, however, will have to be ensured that orema- in which modern industry needs to be ture mechanisation does not affect this developed further and that is the process adversely. Faster agricul­ field of exports. Experience ha? now tural growth will offer greater scope been gained with regard to marketing for employment in such ancillary a wide variety of manufactured «oods. activities as repairing, servicing, particularly engineering goods. in transportation, etc. Simultaneously, foreign markets. Since this is the greater attention wil! have to be paid field in which world trade is growing to the development of rural infrastruc­ fastest, we should push ahead in this ture. particularly the construction of area. This moan? building up more rural roads. Proper marketing of agri­ capacity, acquiring suitable know-how cultural produce cannot take place if and adopting even better marketing there is no adequate network of roatfs techniques. While I do not regard ex­ connecting our villages to the nearest port led growth as a viable proposition marketing centres. Deliberate steps in Indian conditions, it is necessary will also have to be taken to facilitate that exports should continue to increase processing of local produce so as pro­ at the rate they have been trowing vide more employment in rural area?. in the past two years. Such an increase Gandhiji’s idea of self-reliant rural is essential for acquiring greater communities will have to be *;iven manoeuvrability with regard to eco­ concrete shap if an effective solution nomic management. Government is is to be found to the problem of un­ committed to providing a stable policy employment. framework conducive to continued expansion of our exports. Siiitul- 23. The development of small sca>e taneous’y. it is our solemn resolve to industry should a'so enable us to make deal firmly with smugglers and other a significant dent in the problem of anti-social elements indulging in ille­ unemployment. Such industry should gal dealings in foreign exchange. For­ not be a scaled-down version of large tunately, judging by recent data on in­ industry but should be one which ward remittances, smuggling does not uses technology which is appropriate seem to have revived on any lirge to our conditions of surplus labour scale. We shall, nevertheless, remain and scarce capital. Although iheie vigilant in this matter. has been a great deal of talk of ap­ 22. Since unemployment is one of propriate technology, it is surprising our most pressing problems, the grea­ how little effort we have put into its test attention needs to be given to its development. For example, the buJ- solution. By now, it is obvious that lock-cart remains and will remain for this problem cannot be solved through many years to come an important exclusive reliance on industrialisation. means of transport in rural areas. }8 5 General Budget, JYAISTHA 27, 1899 (SAKA) 1977-78 386.

Yet, It Ii only very recently that we this purpose should be undertaken hfljve started thinking about improv­ without any hesitation. And because ing its effectiveness. Unfortunately, it is our firm determination to achieve insufficient resources have been de­ our objectives through persuasion voted to the development of appro­ rather than coercion, the effort that priate technology. We have always will have to be put in will have to gone after the most modem technolo­ be greater and more sustained. gy *ven though it may not necessarily have been the most efficient for us. 27. The success of the programme I This trend needs to be reversed. have been talking about depends upon adequate resources being available. 24. We do not however have to Other countries which have achieved wait for appropriate technology in or high rates of growth have been able der 4o make a beginning in this field. to invest as much as 30 per cent of The experience of handlooms and national income because of their high powerlooms shows how modern orga­ volume of savings. The Indian ex­ nisation and marketing methods can perience has been otherwise. Volun­ breath Tife into labour intensive indui- tary savings have been inadequate. t-y. More work along these lines Attempts to push up the rate of do­ shou d be tried with regard to a mestic savings through created money mimber of cottage and village indus­ and deficit financing have accentuated tries in order to combine greater em­ inflationary pressures but have not ployment with efficiency. succeeded in raising the savings rate. Thus, some fresh thinking is necessary 25. The problem of unemployment regarding the means of enlarging the ?n urban areas, particularly among pool of national savings in a non- the educated persons, is no less inflationary manner. serious. The House will be happy to know that we are now worXng on the 28. It is doubtful if taxation alone details of a specific scheme designed can achieve such an increase. Hi?h to create opportunities for the educa­ direct tax rates have been found to ted unemployed. Under this scheme, be counter-productive because of the we shall provide through the banking evasion that ensues, and, in any case, system “seed*’ money and other fin­ the number of people who fall in the ance at relatively attractive rates of direct tax net is so small that revenue interest to enterprising voungmen realisation cannot match requirements. considered eligibly for assistance. Indirect taxation seems also to have reached its limit. 26. The beneficial effects of a high rate of economic growth can easily be 29. Resource mobilisation by the neutralised by an increase in popula­ Government through taxes has in­ tion. Therefore, population control creased continuously over the years has to be an integral part of our pro­ and at present tax revenue as per­ gramme of raising the standard of centage of national income is as high living of the common man. Unfortu­ as 18.9. But public saving has not nately, the events of the past two gone u d because non-developmental years have given the family planning exoenditure such as interest charges, programme a severe setback just salaries and wages, dearness allowance when it was beginning to be generally to employees, defence expenditure and accepted even in backward areas. This subsidies etc., have gone up more programme is so vital to our economic ttian proportionately. In addition, progress and well-being that all possi. oublic sector enterprises have not ble efforts must be made in a sustain­ been earning, until recently, adequate ed way to persuade people to accept return chiefly because of deficiencies of the small family norm. Any invest­ management and improper pricing ment, therefore, that is necessary for policies. Some of those short- 387 General Budget, JUNE 17, 1*71 1OTT-78 m

fShri H. M. Patel] vegetable oils. *rhes6 should help to comings wiU have to .be removed if stabilise the price of cooking media. public saving is to increase and contri­ Increased availability of vanaspati and bute to larger investment. refined rapeseed ofl meant for direct consumptibn would indirectly case 30. Individual saving can be pro­ pressure on prices of groundnut oil. moted better if austerity is practised We have adequate stocks of sugar to much more effectively. A large part enable us to meet all reasonable de­ of the increase in consumption arise.* mands at stable prices. We are now Iran the demonstration effect of the working on the details of a new bigh standard of living of the wealthy multifibre policy designed to make and Ole well-to-do in our society. To available quality cloth at prices with­ neutralise all this, greater egalitarian­ in the_reach of the yommon man. Such ism in consumption needs to be prac­ a ptificy. IT successful, would have the tised. Our tax system has to se so additional advantage of restoring to reoriented as to discourage ostentatious health all segments of India's largest living and^ promote the habit rd sav­ industry. ings. However, austerity cannot be ushered in merely through tax reform.

We must arouse public opinion .tgainst B u d g et E s t im a t e s a life style inconsistent with the harsh economic realities of a poor couutry 32. I now turn to the Budget Esti­ such as ours. mates. The documents which I am 31. Government has been greatly presenting today repeat the Revised concerned about the price situation Estimates for 1976-77 as given in the interim Budget, as the actuals are not ever since it came into office. "Ine persistence of the rising tendency in yet available in most cases. prices witnessed during the last few 33.~~As regards the Budget Estimates weeks has been due partly to the for fhe current year, gross tax reve­ cumulative effect of imbalances in- nues at existing rates of taxation are troduceed last year, and part y due to estimated at Rs. 8879 crores, show­ the seasonal presure which is ing an increase of Rs. 798 crores over uncvciJacle during this part of the the Revised Estimates for 1976-77. Of year. I cannot hold out the promise the increase, Rs. 101 crores will accrue that Government will be able to to the States as their share of ! fixes. stabilise every single price in face of Whi e Union Excise Duties are cxoect- fluctuations in demand or jupp'y ed to yield Rs. 4550 crores. showing which are inevitable. However. I can an increase of Rs. 373 crores ovar the assure the House that we have taken Revised Estimates for last year, re­ steps, and will continue to do so. to ceipts from Income and Corporation ensure reasonable price stability in taxes are estimated at Rs. 2258 crores, respect of basic articles of mass con­ an increase of Rs. 180 crores. Customs sumption. We have enough stocks of receipts at Rs. 1734 crores will be food grains to meet all genuine re higher by Rs. 243 crores as compared qoii-.ements at stable prices. We have in­ to last year. herited a difficult situation regarding vegetable oi s. As the House knows, becaus; of a steep fall in production 34. Market loans are expected to c f groundnuts last year, prices of yield Rs. 1000 crores as compared to ▼egwtable oils have been rising lor Rs. 849 crores in the previous year. quite scone fifoe. Unfortunately, Besides, Government propose to groundnut oil cannot be readily im­ borrow Rs. 800 crores against drawal ported so that our abi My to operate of foreign exchange reserves. dire«Cy on the supply of this o*l is rather limited. However, w« have 3ft. Not external assistance,aftat arranged for adequate imports of other providing for repayments and interest 3$9 General JBwtget, JYAIBTgA 27, 1899 (SAKA) 1977-78

payments, .Is estimated at Rs. 1052 40. I have received requestsfzona 4 crores, including disbursements Central Government pensionersfur against new credits. increase in the quantum of reliefon their pensions in view of theigh h 36. Taking ether receipts into cost of living^ As the House IS Account, total receipts in the current aware, a measure of relief has been .year are estimated at Rs. 15366 crores. afforded from time to time in the p v t I feel it would be only fair atthis 37. I m%y now make a Irief men­ stage to grant a special relief at grad- * tion of the estimates of non-Plan ex­ ed rates to them; this will costthe penditure. .While presenting the inte­ exchequer Rs. 10 crores annually. rim Budget, I indicated that all Minis­ tries and Departments of Government 41. 1 now turn to the outlays oa -and public sector agencies will be the Annual Plan for 1977-78. As I .asked to observe "the utmost economy have already indicated, we are firmly in expenditure, keeping in view the of the view that our economic ills can. present Government’s emphasis on be overcome only through a compre­ ^austerity and avoidance of all forms hensive reordering of Plan priorities of ostentation. Detailed instructions The Plan strategy has to be reapprais­ have since been issued in this iegard ed. It should recognise the primacy lor strict compliance by all Ministries of agriculture and accord overriding ;and Departments. The full impact of priority to rural development and the economy measures will be known eradication of unemployment within on!y after the detailed exercises hav? a t.me frame. These are the tasks been completed. Separately, certain to which our reconstituted Planning ureas of non-essential expenditure Commission will no doubt address have already been identified and the itself. Thaf. however, will take some 3udget documents reflect a reduction time. In the meanwhile it is necessary of about Rs. 130 crores in these ex­ for the Government to move in the penditures as a result of this/exercise. desired direction. That is what this Budget seeks to do. 38. The provision for Defence c k - 'penditure is Rs. 2752 crores, 42. Within the short time available Rs. 06 v'rores less than ihe provi­ to us, we have therefore made a sion made in the interim Budget. The quick review in consultation with provision for food subsidy and carry­ various Ministries of the outlaysin the ing ccst> of buffer stocks has Annual Plan for 1977-78, and tried to been, for the present, retained «t Tt s. impart, to the extent possible, a new 4*.i) cures, but it will be reviewed on direction to ?ur development pro­ thc basis of emerging trends during grammes in line with the priorities the course of the year. and objectives set out in theManifesto of the Janata Party. We are, how­ 39. In its scheme of devolution, the ever, not writing on a clean slate. rSixih Finance Commission could not Schemes in progress cannot be aban­ take into account the net interest doned, nor even slowed down uniluly, liability of States on account of lo.ins without considerate financial Iossl raised and disbursed by them during The commitments made to State Gov­ the Fifth Plan period for want of ernments in regard to C^ntr-1 details. As recommended by that tance for their Plans have also to be ‘Commission, the net interest liability honoured subject to the conditions of the deficit States has been comput­ stipulated by the Planning Commis­ ed and a provision of Rs. 72 crores sion at the time of the ftnalisation of has been made in the Budget for dis­ their Plans. These commitments bursement of additional grantetin-aid impose serious limitations in refash- .to the States concerned on this ionRg *he Plan according eur ^account, in relation to the three years thinklhg. The room far maaoeuvrabi- ending on 8lSt March, 1977. litris thus limited. Even so, appreci- 391 General Budget, JUNK IT, 1*77 1977-78 39*

rShri H. M. Patel] been made in the Budget toward* able saving have been effected. Central Plan. Inclusive of the inter* Schemes of relatively low priority have nal and other resources of public- been suitably rephased. undertakings, the Central Plan will be of the order of Rs. 4939 crores in 1977-78 as against Rs. 4090 crores in 48. Time to the promises made to 1976-77. The State and Union terri­ tiie peeple, in the recast Plan, *e tories Plans together will be of the- havjHtar provided for additional out- ordfer of Rs. 5021 crores, as against layi nFlfriculture, irrigation, power, Rs. 3762 crores in I9W-77. The total khadi arNI-' village industries, sericul­ outlay on the annual Plans of the ture, handlooms, postal and telephone Centre, States and Union territories facilities in rural areas and wide for 1977-78 will be Rs. 9960 crores. as ranging rural infrastructure pro­ against Rs. 7852 crores in 1976-77. grammes covering, among other things, This represents an increase of 2Z such schemes aS clurab’e link roads per cent. and rural drinking water supply. It is our intention to step up further Die 46. We feel that for building a for­ outlays next year on programmes ward looking, dynamic and diversified designed to develop rural infrastruc­ agricultural cconomyt it is necessary ture facilities so that over a period of, •ay, five years the basic needs of the to aim at integrated development of crop production, livestock and poultry, entire rural population could be met. fisheries and forestry. Special em­ It is also our intentSin to review the phasis will need to be laid on deveolp- programmes of slum31 clearance and ment of dairy industry on a cooperative urban renewal in consultation witn basis a view to enabling milk produ­ the States and to provide additional cers to get better and fair triers. resources for accelerating the pace of Creditable progress has been made *n execution o f these programmes. the first phase of Operation Flood 44. The allocation from the Central Scheme and we must now get moving Budget in 1977-78 for the Ceniral to take the full advantage of Opera­ Plan and assistance towards Plans of tion Flood Phase II. The production States and Union territories «viil be policy should be based on modernisa­ Rs. 57W rrores. The corresponding tion of agriculture in which technolo­ figure lor the previous year was gy should, by far. be the most (ruci.nl Rs. 4759 crores. The tempo of de­ input to make a sustained and h gh velopment is thus being maintained. growth rate possible. The existing Plan provisions and priorities have been rephased with a view to locating gaps in development and identifying 45. The provision for the Plan in the potential areas where increased the Central Budget is inclusive cf investments could bring about further Rs. 1812 crores on account of Central acceleration of the pace of agricultu­ assistance for State P>ans and orovi- ral growth. In this exercise we have sions for Union territories Plans, the kept in view the need for (a) streng­ sub-plan of the Hills and Tribal Areas, thening rural infrastructure as a basis The North-Eastern Council, and assis­ for future accelerated development* tance to the Rural Electrification Cor­ (b7 generation of employment in. poration for power schemes. This rural areas, (c) special attention to allocation also includes an element of the needs of the weaker sections of special advance Plan assistance to the ^ociety, and (d) giving a fillip to States to provide them adequate re* the production of cotton, oil seed* sources for the required level of in­ and pulses so as to correct the wuppljr vestment in important projects in the and demand imbalances. A pilot pro­ core sector* of irrigation and power. ject for desert development in tlar- A provision at Rs. 8978 crores has yana, Gujarat and Rajasthan ii bein& 393 General Budget, JYAISTHA 27, 1899 (SAKA) 1977-78 evdhred and provision has been made approach roads which constitute an lor this purpose in the Budget Esti­ essential ingredient of any programme mates. for building up the Infrastructure for rural development. We ' therefore 47. Irrigation holds the key to in­ propose to make a beginning with an creased agricultural production. outlay of Rs. 20 crores which, suitably Though the Fifth Plan evisages a supplemented with the resources of target of 5.8 million hectares to be the State Governments and local brought under irrigation, the financial bodies, will accelerate the programme outlays do not match the target. in this vital area. The new scheme Further, the need for initiating action of ‘grain for work’ could also be utili­ in the current Plan on new irrigation sed imaginatively for this purpose. projects, so as to have an adequate pipeline of projects has been neglect­ ed. Greater emphasis will also have 51. Despfte three decades of ulan- to be laid on modernisation of irriga­ ning, there are still a large number tion projects so as to conserve vva«.pr, of villages which suffer very acute which is a scarce resource. Keeping scarcity of drinking water. While the all these ends in view, we propose to responsibility for finding resources and provide Rs. 100 crores as advance execution of the programmes for this Plan assistance to States for irriga­ purpose is that of the State Govern­ tion projects. ments, I feel that the Central Gov­ ernment should also intervene active­ 48. The Plan outlays for minor irri­ ly and supplement the efforts of the gation will be supplemented to the States. Such supplementary assis­ extent of about Rs. 260 crores from tance sTiould be directed towards pro­ the Agricultural Refinance and De­ vision of drinking water facilities in velopment Corporation, and other problem villages to be identified w:th lending institutions. Under the pro­ reference to objective criteria. We gramme of rural electrification for propose to make an earnest start in the current year with an additional energising the pump sets, we have provision of Rs. 40 crores over and made a provision of Rs. 175 crores above the existing outlays for thjs which will also be augmented to a significant extent by institutional programme. Progressively, the allo­ cations for tfcis programme would be finance. stepped up so as to carry the benefits of the programme to all the problem 49. The total Plan outlay on agricul­ villages over a period of five years. ture and allied services, major, me­ The programme will have to be cl 03e- dium and minor irrigation projects lv monitored at the Central as well as and fertilisers, together with provi­ the State level. sions for cooperatives and power sec­ tors attributable to rural areas, work3 out to Rs. 3024 crores. The House 52. I would also like to refer here will be glad to know that this con­ to schemes for the welfare of Hari- stitutes 30.4 per cent of the aggregate jans, Advisis and other less advanc­ outlay of the Central, State and Union ed sections of our people. As I have territories Plans. said earlier, these find a place largely in State Plans. I am not satisfied 50. While the development of with the programmes and allocations National and State highways has re­ in respect of them and it is my inten­ ceived reasonably adequate attention tion to take up these matters on a In successive Plans, the needs of rural priority basis with State Governments areas have been sadly neglected. I and Central Ministries concerned M that the‘Centre should take Initia­ qs to add to the effectiveness of these tive in promoting the construction of programmes. 395 Gasera I Bttdget, JUNE 17, JSBX

[Shri H. M. Ptftel] ST.Tha budgetary iUocatMl Jar trai^Mdt and oomtnunioati«nrwill be 53. A mur of Bs. 234 crores has Rs; 651 crores, of which Rs. 302 emres t u n provided in the Central Plan will be for the Railways' wldch have for power development This includes Kan; outlay o f R s 4B0"crores. A pit>-‘ fit. S3 crores lor Singrauli Super vision of Rs. 10 crores has been made- Thermal Station, Rs. 1 erore lor initi­ for metropolitan transport projects, «>£ ating action on a second Super Ther- wltfch Rs; 8.6 crones is for the Mass a u l Power Station. Bs. 17 crores lot Rapid Transit Project of Calcutta. A inter-State transmission lines, *nd part of the Sixth Corridor Project fo r Rl 52 crores lor nuclear power pro­ rapid mass transit system in Bombay jects. The State and Union errito- has also- been sanctioned. ries Plans, which account for the bu.k of the provision for power, envisage 58. The Plan for coimr.unicalionr,. am outlay of Rs 1678 crores. An including Posts and Telegraphs, has additional sura of Rs. 20 crores is been modified to take into account being provided to the Rural Elect r *1- the priority requirements of rural cation Corporation for systems Im­ areas. Accordingly, an additional outlay provement and for providing I. T. of Rs. 10 crores has been provided for Capacitors for rural consumers, both opening more post offices and exten­ designed to minimise loss o f energy. sion of telephone and telegraph faci­ lities in rural areas. 54 Self-sufficiency in energy has assumed critical importance. The provision in the Plan for petroleum 59. It is our belief that khadi ?n programmes of the BMlaf and Bokaro complexes, a btfJgetary MocattM of 62. I tfiatl now address mysaif to- 'H a 511 cror«aHttlMen mtf&fer Meel the tail* of ftm aaM h* proposal*-*>r compared with Rs. 409 efWes in cweftn* iMMt to 1676-77. ' feWRM*. 997 General Budgtt, JYAISTHA 27, 1999 (SAKA) 1977-78 398

,6 8 . Tl»e proposals. in so far as devised that while it does not 5ecome direct ta^es jure concerned, which I oppressive and counter-productive, it am .presenting before you, are deaig- ddes have an effect on excessive ac­ n« T to 1feci*ase corporate savings, cumulation of wealth in individual channel more funds intio, productive hands. Ih this view of the matter, I Investment, accelerate the pace of propose to raise the rates of wealth** Investment, auelerate the pace of tax. The existing rate of half per c«nt. time, strengthen the redistribtitive will continue unchanged on the first sole that direct taxes, to my mind- Rs. 2.5 lakhs of net wealth, but for must be made to play. the higher Slabs there will be an in­ 04. In so Car as indirect taxes are crease of Tialf a per cent over thfc concerned, I have endeavoured to exTsting rates, while in the highest ensure that my proposals do not im­ slab of over Rs. 15 lakhs,* the new pinge on the necessities of life. There, rate will be three and a half per cent, I have sought to raise resources, in that is, an increase of one per cent, the main, from the less essential or over the existing rate. There will be luxury u::ns, while giving relief to corresponding changes in the rates some deserving sectors, and simplify­ applicable to Hindu undivided fami- ing and rationalizing the central ex­ lies having one or more members cise tariff structure generally. with net wealth exceeding Rs. 1 lakh. The new rate schedule will come into 05. In fulfilment of an assurance in force from the current assessment year the Janata Party manifesto, I pro­ and will thus supersede the changes pose to provide that no income-tax made last year in the rate scReduie. shall be payable by individuals and These changes will result in an addi­ Hindu undivided families whose tax­ tional revenue of about Rs. 10 crores able income does, n°t exceed Rs. in 1977-78. 10,000. In order, however, to keep 68. As Hon’ble Members are aware. the sacrifice of revenue to the mini­ Government havp already dispensed mum. the nil rate slab of income is with the Compulsory Deposit Scheme being retained at Rs. 8,000. Hence, in its application to additional dear­ where the taxable income exceeds ness allowance as from 6th May, 1977. Rs. 10,000, the excess over Rs. 8,000 Having regard, however, to the state will be charged to tax as at present of the economy and the inflationary subject to the grant of marginal re­ pressures that exist, I propose to con­ lief in cases where the taxable in­ tinue the Compulsory Deposit Scheme come exceeds Rs. 10,000 by a small for Income-tax Payers for another margin. two years. 66. 1 do not propose to make .my 69. With a view to stimulating in­ change in the basic rates of income- dustrial development and economic tax. However, in view of the im­ growth, I consider it desirable to widen perative need to raise additional re­ the scope of the scheme of investment sources, I propose to increase the iale allowance introduced last year. That of surcharge on income-tax in ihe scheme has unfortunately not laid case of all categories of taxpayers, down any well-defined and clear cri­ except companies, from 10 per cent, teria for'selecting industries to which to IS per cent. With the increase in the benefit of the concession was to tha rate of surcharge, the maximum be extended. This made it difficult marginal rate of personal income-tax to extfTain_to those claiming eligibility will now be 68 per cent., as against why some industries had been given M per cent, at present. the benefit, wFule it was denied to others. Since there is a need far en­ 67. It it my feeling that wMlth-tax couraging generation of internal re- iiM ts Wtfrtr induced in the Budget of .• sources 'for . finagfliag uiMeetment, I 3VTO to'tift unjustifiable elM ai *If «oruid«r4jt best k> extend theacope of tfcfeatnH al obf*fcttv* «I * : investment allowance to all industries t o Jc tt ite Mbfavtd, » mwfc br so 399 GeneraL Budget, JUNE 17, 1977 19'77-78 400

[Shri H. M. Patel] in plaCe of the actual cost of acqui- except those which are engaged in sition. Determination of the fail' :the manufactuce Ofspecified low prio- market value of a capital asset with rity -Items such as cigarettes, cosme- reference to a date more than 23 tics and alcoholic beverages. This years ago presents practical diffi- measure will be of great benefit to culties. Moreover capital gain aris- the economy. ing from the tran~fer of assets held over a length of time is, in a world '70. In order .to promote scientific of rapid and continuing inflation, and technological self-reliance, I pro- to a great extent illusory in nature. pose to provide an incentive to the On the whole, therefore, it seems users of technical know-how develop- to me desirable to advance the red in our country. It is accordingly notional date by 10 years, namely, proposed to' grant investment allow- to 1st of January, 1964. ance it" the higher rate of 35 per cent. on machinery and plant installed for (c) Capital gains tax is payable the manufacture of any article made On the sale, Of a residential house. in accordance with know-how deve- The existing law provides that if loped in Government laboratories, another residential house is either public sector companies and univer- purchased or constructed within a sities. specified time, then the capital gains }.1' can be wholly or partially exemp- 71. From the point of view of maxi- ted depending upon the amount of mising expansion of indus-try, I can capital gains utilised on the new see little merit in compelling closely- residential house. Similar conces- held industrial companies to distri- sions are not available in respect of bute a high percentage of their net capital gains arising from sale of profits as dividends. I propose, there- assets, such as jewellery or shares. fore, to exempt such companies from I see no reason for drawing such a the requirement of compulsory dis- distinction. Accordingly, I propose tribution of dividends. I do not pro- pose to extend this relief to all other to exempt the capital gains from kinds of closely-held companies. tax, if. the sale proceeds of any asset are reinvested within six months in 72. It is my belief that the present shares, bank deposits, units of the structure of capital gains taxation Unit Trust or other preferred assets. stands in the way Of adequate mobi- In order to prevent abuse of this lity of investible resources, and per- concession, it is required that the petuates investment in low priority assets in which the sale proceeds assets. In this view, I am proposing havg been reinvested are held for a certain changes in our existing period of not less than three years. scheme of capital gains taxation. (a) At present capital gains aris- 73. Sickness among industrial ing from the transfer of a capital undertakings is a matter of grave asset held by a taxpayer for a national concern. Closure of any period exceeding 60 months alone sizeabla manufacturing unit in any are entitled to concessional tax industry entails social costs in terms treatment. With a view to [mp-ov- of loss of production and employ- . ing mobility, I propose to reduce ment, and also waste of valuable the aolding period to 36 months. capital assets. Experience has sho';"n that taking over of such units by (b) In respect of capital assets Government is not always, the most acquired prior to the 1st of Janu- satisf\actory or the most economical ary, 1954,a tax-payer has the option . solution, A- more effective course! of adopting the fair market. value would be to facilitate the voluntary . of the asset on 1st J'!lnuary, 195~ amalgamation of sick- Industrlal iunlts 401 General Budget, JYAISTHA 27. 18W (SAKA) 1977-78 40a

with sound ones by providing certain courages more liberal donations to incentives and by removing impedi­ deserving charities. I propose accord­ ments in the w*y of such amalgama­ ingly that the monetary ceiling be tion. It is accordingly proposed t0 raised from Rs. 2 lakhs to Rs. 5 lakhs. provide that where an amalgamation 78. Fifty per cent, of the remunera­ is accepted by the Central Govern­ tion receive^ by Indian technicians ment to be in public interest, the from a foreign Government or. a accumulated losses and unabsorbed foreign enterprise for services render­ depreciation o£ the amalgamating ed outside India is exempt from company will be allowed to be carried income-tax. We cannot justifiably forward and set off in the hands of deny this concession when the eTn* the amalgamated company. ployer happens to be an Indian con­ cern. I propose accordingly to enlarge 74. With a view to encouraging the scope of this concession to cover companies to involve themselves in Indian technicians employed by Indian the work of rural welfare and uplift, concerns in any branch or office out­ I propose to provide that expenditure side India. incurred by them on approved pro­ grammes of rural development will 79. Deduction of tax from small be allowed to be deducted in com­ dividends has been a source of con­ puting their taxable profits. siderable hardship to a large number, of small investors in joint stock com­ 75. ln order to give a direct sti­ panies. With a view to avoiding mulus for the setting up of small- inconvenience to such investors, and in scale industrial undertakings in rural particular to investors from rural ttreas, 1 intend to accord preferen­ areas, the requirement of deduction tial tax treatment to industries which of tax at source from dividends will are set up in such areas, and which be waived in cases where the dividend begin their manufacturing activity pand does not exceed Rs. 250. after 30th June, 1977. Such industrial undertakings will be entitled to a 80. Under a provision made by the Taxation Laws (Amendment) Act, deduction in the computation of their 1975, charitable or religious trusts and taxable profits o* an amount equal to institutions are required to invest 20 per cent, of the profits. The con­ their funds in certain forms and modes cession will be available for each of specified in the Income-tax Act. Any ten years commencing from the year trust or institution which does not in which the undertaking begins its conform to the prescribed pattern of manufacturing activities. investment in any accounting year 76. Under a provision made last commencing on or after 1st April, year, companies were given the option, 1978, would lose exemption from in­ instead of paying 5 per cent, sur­ come-tax. Having regard to practical charge on income-tax, to depoiit an difficulties involved and to ensure a equivalent amount with the Industrial more orderly change-over in their Development Bank of India for a pattern of investment in the line with period of five years. I propose for a the new provisions, the date for withdraw this option. The Budget change-over to the new investment accordingly takes credit for an addi­ pattern is proposed to be extended by tional tax receipt of Rs. 56 crores on three years, i.e., from 1st April, 1978 this account. to 1st April, 1981. 81. I have taken credit for increas­ 77. The amount of donations for ing the surcharge on income-tax and charitable purposes qualifying for tax increasing the rates of wealth-tax. exemption is limited to 10 p*r cent, The loss of revenue involved in exem­ of the gross total income of the donor, pting individuals, Hindu undivided subject further to a monetary ceiling families, etc. with an annual income of Rs. 2 lakhs. It is felt that this ceiling up to Rs. 10,000 has also been taken It unduly restrictive and only dis­ note of. The overall effect of all tha 403 General Bud pet, J tftft ii, IWi i m - 7 »

[Shri H. M, Patel] 85. As HonTjie Members are aware, Artct tax proposals would be a fain in 1075, as an'ek|*^ii&lito Measure, t oOe Centre's revenue of Rs. 92 a 1 per tent gener

I n d ir e c t T a x e s 87. Further, small newspapers have 83. Now I come to my proposals already been exempted from this levy. with regard to indirect taxes. My It is now proposed to extend this proposals concerning central excise exemption to medium newspapers fall into three categories, the first re­ also. The big newspapers will conti­ lates to proposals for raising additio­ nue to pay duty at the existing rate nal resources, the second to reduction of 1 per cent. or abolition of excise duties, and the last set of proposals seeks to rationa­ 88. Th« net additional yield from lise and simplify the duty structure. this group of proposals is expected to be of the order of Rs. 30 crores in a 84. A 10 per cent excise duty is pro. year. posed to be levied on the following five items: (i) hand tools, and small 89. I now come to the hardy annual, tools not already excisable, (ii) namely tobacco products. At present weighing machines and weigh bridges. the rate of ad valorem duty on ciga­ (iii) watches, clocks and tirne-pieces, rettes increases as the value of ciga- (iv ) electric light fittings and (v) i'*ttes goes op. The progression in polishes for footwear, metals, cars, the existing rates is now proposed to etc. It is also proposed to levy an be raised. In regard to branded bfris excise duty of 12 per cent on acety­ it is proposed to raise the existing lene gas.Small scale manufacturers of duty of rupee one per thousand to hand tools and small tools, electric rupees ttfo per ^thousand. These levies •light fittings and polishes, fcrUl., how­ are estim aW to yield, an additional1 ever, be exempted in respect rof ;

{Shri H. M. Patel] recorder-cum-radios, stereos and hi-fi musical systems will pay duty varying M9. in the match industry, small cot­ from 15 per cent, to 36 per cent ad tage units are finding it difficult to valorem, depending on the item and compete successfully with the bigger the ex-factory price. It is proposed units. To help such of these units as to give small manufacturers a uniform are members of registered cooperative concession of 15 per cent, ad valorem societies or are certified as such by the in the rate of duty, that is to say, the Khadi »»y| Village Industries Commis­ corresponding rates of du ty that they sion, 1 propose to double the existing will pay will vary from nU to 20 per concession of 55 paise for a gross of cent ad valorem . match boxes. I need hardly say that these units have a large employment 104. Experience has shown that a potential. Judiciously adjusted excise structure acts as a powerful incentive to manu­ 100. Mini steel plants are also in facturers of electronic goods to reduce difficulties. Their position could be their prices. We propose to continue improved if they were provided with with this experiment further. In the fresh mtlting scrap from the main case of T. V. sets the 5 per cent con­ steel plants without payment of excise cessional rate of excise duty will duty. 1, therefore, propose to exempt henceforth be available only where the from excise duty the identifiable types ex-factory price of a T.V. set wifh a •of fresh melting scrap cleared from the screen exceeding 36 centimeters is Bs. main steel plants as raw material for 1600 or less, instead of the existing the mini steel plants. limit of Rs. 1800. In the case of tape 101. The revenue from electric in­ recorders, there will be a concessional sulating tapes and slotted angles is rate if the ex-factory price does not low and further, has to be collected exceed Rs. 500. For electronic cal­ from a number of small producers. I, culators too. there will be a conces­ therefore, propose to delete these arti­ sional rate for calculators if the ex­ cles from the list of specific items in factory price does not cxceed Rs. 175. the Central Excise Tariff. 105. I shall now expound my pro­ 102. The production of boiled sweets, posals concerning rationalisation. We toffees, candies, etc. has been going are at present collecting excise duty on down. Sugar, which is a basic raw woollen yarn from a number of small material, is already subjected to a high spinners. This has led to evasion and excise duty as also are packaging paper other malpractices. It is, therefore, and containers used in the confectio­ proposed to replace the excise duty nery industry. I, therefore, propose to leviable on woollen yarn by an in­ delete these confectionery articles also crease in the customs duty at the stage from the list of specific items in the of import of raw wool, waste wool and Central Excise Tariff. rags. As regards wool tops also, with a view to minimising evasion, it is 103. Electronics is one of our grow­ proposed to reduce the present rate of ing and promising industries, and ottos excise duty of Rs. 10 per kg. to Rs. 5 great scope for development in the per kg. and to make good the loss by small scale sector. The various con­ increasing the import duty on raw cessions that are proposed here are wool suitably. Both these measures designed to help the growth of that should result in making fabrics using sector. At present the duty on elec­ indigenous wool cheaper. tronic items is on a varying basis, 106. Most steel re-rollers produce some being specific and others ad ban, rods, angles, etc. which attract valorem . It is now proposed to make an excise duty of Rs. 180 per tonne the basis uniformly ad valorem. The in addition to the duty already paid large manufacturers producing radios on Ingots. U is prepassd to shift this and transistor sets, tape recorders, tape duty of Sg. 110 per tonne from the re­ 409 General Budget, JYAISTHA 27, 1809 (SAKA) 1977-78 410

roller* to the ingot manufacturers, nomenclature and classification or namely, the main iteel plants or the textile yams and fabrics. Henceforth,, d in i steel plants* yam or fabric would ordinarily be classified on the basis of the fibre 107. The existing scheme of excise which predominates by weight. The duty on cotton yam is based on a new system will be much simpler and slab system where several counts are will remove many working difficulties. grouped together, and provides for Further, the blending of polyester sharp increases in the rates of duty fibre up to one-sixth of the total fibre when the count of yarn increases from content will not change the classifica­ one slab to another. This duty struc­ tion of the yam. This should enable- ture encourages under-spinning of the textile industry to use more pol­ cotton in order to avoid payment of yester fibre without attracting higher duty at the higher rate and leads to duty on the yam produced, and would wasteful use of cotton. Evasion too be in furtherance of a multi-fibre is not easy to check. To remove policy which the Government is in. these defects, a new schedule of rates the process of evolving. has been proposed where the duty rises gradually with each unit increase 111. Pursuant to the Government's in the count of yam. The new rates acceptance of the recommendation of include a duty of half a paisa per the Sixth Finance Commission, from count to enable Government to re­ 1976-77 onwards, auxiliary duties of coup the loss incurred by exempting excise have become shareable with powerlooms and hand processors from the States in the same way as basic the excise duty, to which I have re­ duties of excise. Thus, the justifica­ ferred earlier. As a further measure tion for levying auxiliary duties sepa­ of rationalisation, viscose spun yarn rately has now disappeared. In order is proposed to be subjected to the to simplify the structure and to elimL same rates of excise duty as cotton nate unnecessary calculations, I have yarn. decided to merge the auxiliary duties with the basic duties of excise. 108. Last year, a system of ad valorem rates for cotton fabrics was 112. I have also carried out a num­ introduced. The rates were, how­ ber of minor modifications in the ever, dependent on the count of the Central Excise Tariff, which I do not yam used in the fabric. To rationa­ propose to detail here. Full details lise the structure, I propose to adopt of these changes are, of course, given the ad valorem system irrespective in the Budget documents. of the count of the yam and with a high degree of progression built into 113. The total of the additional cen­ it. The new duty structure has been tral excise levies is estimated to yield so devised as to yield approximately Rs. 106.3 crores in a year. The total the same revenue from cotton fabrics concessions given will mean a sacrifice and yarn as is collected at present of Rs. 15.7 crores in a year. The net from these items taken together. yearly increase in central excise levies is thus estimated at Rs. 90.6 crores. 109. As regards the cloth produced However, because of the transfer of by powerlooms, it will be exempt if the duty on woollen yam and wool tt is sol

rShrj H. M. Patel] charged to Import duty at 190 per cent. 114. Finally, I come to customs duties Varying rates of duty* are proposed to in respect of w h ich I have to submit be fixed for the intervening gauges, only a few proposals. Indigenous pro­ taking into account the possibility of duction of watches does not fully re-rolling Imported productsi It 1* satisfy the domestic demand. As a estimated that the reduction in duties result, considerable quantities of on these copper and steel Items will foreign watches are known to be mean a revenue sacrifice of the order smuggled into the country. Govern­ of Rs. 36.25 crores at the existing level ment have accordingly decided to make of imports. good the deficiency still remaining by allowing the import of watches through 117. The effect of the Increases in Hindustan Machine Tools Ltd. In Customs duties proposed by me will order that the indigenously manufac­ be an additional revenue of Rs. 1&5 tured watches and imported watches crores in a year. The reliefs total are available to the public at reason­ Rs. 37.7 crores in a year thus resulting able prices I am reducing the import in a net reduction of Rs. 22.2 crores. duty on watch parts and watches from But taking into account the transfer 120 per cent, to 50 per cent, ad valorem of Rs. 17 crores from the Central Excise head to the Customs head, the 115. I am proposing also to reduce overall effect of the budget proposal* the import duty on newsprint from on Customs revenue will be a reduction 5 per cent, to 2J per cent, ad valorem. of Us. 5.2 crores in a year. 116. I would now make certain pro­ 118. Taking Union Excise duties and posals designed to sitmulate industrial Customs duties together, the net yield growth and to enhance the competitive­ (or the Centre in a year will be Rs. ness of our industry. In order to 48.6 crores. The yield during the re* introduce a measure of competition, it maining part of the current financial is proposed to allow the import of yecr will lie Rs. 38.2 crores. certain selected items of capital goods without prior scrutiny from *he indi­ 1 lf>. My proposals will yield, in all. genous ancle. At the same time, in Rs. 130 crores for the Centre in the order to enable the Indian capital current year. The deficit of Rs. 202 goods industry to meet foreign com­ crores which I mentioned enrlier will, petition more effectively. I propose to thus l'o reduced to Rs. 72 crores. This bring down the rate of import duty on is a relative’v small amount and is copper wire bars used for the manu­ unlikely to have any inflationary effect. facture cf certain larger size-! elec­ trical motors, generators and trans­ Conclusion formers from the existing level of 4s* per cent plus Rs. 5.600 per tonne 40 120. With this I have come to the per cent ad valorem. Similarly, the end of my labours- My aim in this rate of duly on cold rolled non-grain- budget is to stimulate the economy oriented sheets, alloy steel, tool steel, in’o achieving a higher rate of growth special steel, and high carbon steel is of output and employment, and simul­ also proposed to he brought down from taneously to ensure that the fruits of 75 per cent to 40 per cent. Further, economic progress are as widespread stainless steel plates, sheets and strips as possible. The emphasis on invest­ of 16 gauge and thicker which are ment in agriculture, small and village used in the manufacture of capital industries and rural infrastructure Is goods and which are to-day charged designed to achieve these objectives. to 120 per cent or 320 per cent duty My tax proposals seek to enlarge the depending on the gauge, are proposed pool of national savings while streng­ in future to be charged to 40 per cent thening the role of taxation in reducing duty only. Utensil grade stainless steel disparities of income and wealth. I of 22 gauge and thinner, which to-day hav« taken special care to widen op­ attracts a duty of 320 per cent, will be portunities for the small m«|»—4* hf* 4 13 General Budget, JYAISTHA 27, 1899 (SAKA) 1977-78 414

a farmer, an artisan or a technocrat. FINANCE (NO. 2) BILL, 1977* ' It would be futile to pretend that we can achieve at one stroke the full uti- THE MINISTER OF FINANCE AND 1 lizatiou of the latent energies repre­ REVENUE AND BANKING (SHRI sented by cur vast human resources. H. M. PATEL): Sir, I beg to move for But a beginning has to be made. I leave to introduce a Bill to give effect venture to think that this Budget to the financial proposals of the Cen­ marks such a beginning. tral Government for the financial year 1977-78. MR. SPEAKER: The question is: 121. My party has emphasised liberty. * But liberty does not mean freedom to “That leave be granted to intro­ starve and freedom to feel unwanted. duce a Bill to give effect to the fin­ Large-scale poverty and unemployment ancial proposals of the Central Gov­ degrade those who have to suffer them, ernment for the financial year 1977- and debase those who tolerate them. 78.” We owe it to ourselves to see that these twin scourges are eradicated as quick­ The motion was adopted. ly as passible. We have a long and a SHRI H. M. PATEL: Sir, I introducet difficult road ahead of us. But there the Bill. can be no doubt about our commitment to our goals and ideals. I believe we MR. SPEAKER: Now, the House are on the right course, and this stands adjourned. We meet again Budget represents the first step, how­ tomorrow at 11 a.m. ever small, in that direction. 18.20 hrs.

The Lok Subha thon adjourned till Eleven or the Clock on Saturday , June 18 . 1977 /Jyaistha 28 , 1899 (Saka ).

•Published in Gazette of India Extraordinary, Part II, Section 2, dated 17-6-77. tlntroduced with recommendation of the Vice-President acting as Presi­ dent. CM 3IPND—L—643 -S