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First Report STANDING COMMITTEE ON EXTERNAL AFFAIRS 1 (2004-2005) FOURTEENTH LOK SABHA MINISTRY OF EXTERNAL AFFAIRS DEMANDS FOR GRANTS (2004-2005) FIRST REPORT LOK SABHA SECRETARIAT NEW DELHI August, 2004/Sravana, 1926 (Saka) FIRST REPORT STANDING COMMITTEE ON EXTERNAL AFFAIRS (2004-2005) (FOURTEENTH LOK SABHA) MINISTRY OF EXTERNAL AFFAIRS DEMANDS FOR GRANTS (2004-2005) Presented to Lok Sabha on 20.8.2004 Laid in Rajya Sabha on 20.8.2004 LOK SABHA SECRETARIAT NEW DELHI August, 2004/Sravana, 1926 (Saka) CONTENTS PAGE COMPOSITION OF THE COMMITTEE (2004-05) .......................................... (iii) INTRODUCTION ............................................................................................ (v) A. Budgetary Proposals ............................................................... 1 B. Rents, Rates, Taxes ................................................................. 13 C. Advertising and Publicity ..................................................... 23 D. Professional Services ............................................................... 31 E. Foreign Service Training Institute ....................................... 34 F. Embassies and Missions ........................................................ 36 G. Passport and Emigration ....................................................... 43 H. Indian Council for Cultural Relations ............................... 50 I. Society for Research and Information System (RIS) for Non-Aligned and Other Countries ..................................... 58 J. Indian Council of World Affairs ......................................... 62 K. Propagation of Hindi ............................................................. 65 L. Foreign Economic Relations : Technical and Economic Cooperation with Other Countries ..................................... 70 (a) Bangladesh, India, Myanmar, Srilanka and Thailand Economic Cooperation (BIMST-EC) .......... 72 (b) Mekong-Ganga Cooperation (MGC)........................... 74 (c) Financial Allocation for Government of Bangladesh .... 75 (d) Financial Allocation for Government of Bhutan .... 77 (e) Financial Allocation for Government of Nepal ...... 82 (f) Aid to Myanmar ............................................................. 85 (g) ITEC and SCAAP Programme .................................... 90 (ii) PAGE (h) Aid to the African Countries ......................................... 95 (i) Community of Eastern & South Africa (COMESA) ... 97 M. Capital Section ............................................................................ 100 ANNEXURES I. Minutes of the sitting of the Committee held on 10.08.2004 ............................................................................. 109 II. Minutes of the sitting of the Committee held on 18.08.2004 ............................................................................. 111 III. Statement of observations/recommendations.................... 113 COMPOSITION OF THE STANDING COMMITTEE ON EXTERNAL AFFAIRS (2004-05) Dr. Laxminarayan Pandey—Chairman MEMBERS Lok Sabha 2. Shri Omar Abdullah 3. Shri Yogi Aditya Nath 4. Prof. S.P. Singh Baghel 5. Shri Narayan Chandra Borkataky 6. Shri P. C. Gaddigouda 7. Shri Vinod Khanna 8. Shri S.K. Kharventhan 9. Shri Narendra Kushwaha 10. Shri Nikhil Kumar 11. Shri Dinsha Patel 12. Shri Somabhai Patel 13. Dr. Sebastian Paul 14. Smt. Ranjit Ranjan 15. Shri P.A. Sangma 16. Dr. (Col.) Dhani Ram Shandil 17. Shri Saleem Iqbal Shervani 18. Shri Damodar Barku Shingada 19. Shri Madhu Goud Yashki 20. Shri Suresh Prabhu 21. Vacant* Rajya Sabha 22. Shri P.K. Maheshwari 23. Smt. Prema Cariappa 24. Dr. Karan Singh *Shri Atal Bihari Vajpayee ceased to be a Member of the Committee consequent upon his resignation w.e.f. 13.8.2004. (iii) (iv) 25. Shri Jana Krishnamurthy K. 26. Shri Arun Shourie 27. Smt. S.G. Indira 28. Smt. Jaya Bachchan 29. Shri S.M. Laljan Basha 30. Shri Fali S. Nariman 31. Dr. Mahendra Prasad SECRETARIAT 1. Shri John Joseph — Additional Secretary 2. Shri S.K. Sharma — Joint Secretary 3. Shri U.S. Saxena — Director 4. Shri Shiv Kumar — Under Secretary 5. Dr. (Smt.) Sagarika Dash — Committee Officer INTRODUCTION I, the Chairman, Standing Committee on External Affairs having been authorised by the Committee to submit the report on their behalf, present this First Report (14th Lok Sabha) on Demands for Grants of the Ministry of External Affairs for the year 2004-05. 2. The Standing Committee on External Affairs was constituted on 5th August, 2004. One of the functions of the Standing Committee as laid down in Rule 331E of the Rules of Procedure and Conduct of Business in Lok Sabha is to consider the Demands for Grants of the concerned Ministries/Departments and make a report on the same to both the House. The Report shall not suggest anything of the nature of cut motions. 3. The Committee (2004-05) took evidence of the representatives of the Ministry of External Affairs on 10th August, 2004. The Committee wish to express their thanks to the officers of the Ministry of External Affairs for placing before the Committee the material and information which they desired in connection with the examination of the Demands for Grants of the Ministry for 2004-05 and for tendering evidence before the Committee. 4. The Committee (2004-2005) considered and adopted the report at their sitting held on 18th August, 2004. 5. The Committee place on record their appreciation for the valuable assistance rendered to them by the officials of the Lok Sabha Secretariat attached to the Committee. 6. For facility of reference and convenience, the observations and recommendations of the Committee have been printed in thick type in the body of the Report and have also been reproduced in consolidated form in Appendix III of the Report. NEW DELHI; DR. LAXMINARAYAN PANDEY, 17 August, 2004 Chairman, 26 Sravana, 1926 (Saka) Standing Committee on External Affairs. (v) REPORT INTRODUCTORY The Demands for Grants of the Ministry of External Affairs for the year 2004-2005 were laid on the Table of the Lok Sabha on 21st July, 2004. The Budget of the Ministry of External Affairs is primarily non-Plan. From the financial year 1996-97 onwards, a ‘Plan’ Budget Head was created with the approval of the Union Cabinet for meeting the large expenditure outlay on the projects namely Tala Hydro-electric Project, Kurichu Hydro-electric Project and Dungsum Cement Project, being executed with Government of India’s assistance in Bhutan. In addition, a new project viz. Punatsangchu Hydro-electric Project has been identified for implementation in future. These projects are being funded from “Plan” Budget. The allocation under the Plan Head was Rs. 650.00 crore in BE 2003-2004 which was increased to Rs. 760 crore at RE stage. Under the Head “Aid to Bhutan” in BE 2004- 2005, an allocation for Plan and Non-Plan expenditure of Rs. 699.80 crore has been proposed, while Rs. 280.00 crore for Plan expenditure under the Head “Loan to Govt. of Bhutan” has been proposed. 2. The Committee took evidence of the representatives of the Ministry of External Affairs on 10 August, 2004 on issues arising out of Demands for Grants of the Ministry of External Affairs under Demand No. 31 for the year 2004-2005. A. BUDGETARY PROPOSALS 3. Demand No. 31 pertaining to the Ministry of External Affairs contains the figures of Revenue as well as Capital Expenditure under the Charged and Voted Sections for the year 2004-2005 as per details given below:— (Rs. in crore) Section Revenue Capital Total Charged 0.03 — 0.03 Voted 3264.03 376.63 3640.66 Total 3264.06 376.63 3640.69 2 4. The total allocation in BE 2003-2004 for Ministry of External Affairs under Revenue and Capital Sections was Rs. 3410.00 crore. There was no change in allocation at RE 2003-2004 against the Budget Estimates 2003-2004. For BE 2004-2005, the proposed allocation is Rs. 3640.69 crore, which is an enhancement over RE 2003-2004 and BE 2003-2004 by Rs. 230.69 crore (6.77%). 5. The BEs of different Major Heads and Minor Heads for the year 2004-2005 are shown separately as under:— Budgetary Estimates (BE) of Major Heads and Minor Heads under Demand No. 31 for the year 2004-2005: (Rs. in crore) Section Major Head Minor Head BE 2004-2005 Total 12 3 45 Revenue 2052-Secretariat- General Services 130.18 00.090-Secretariat 129.81 00.800-Other Expenditure 0.37 2061-External Affairs 1975.48 00.003-Training 2.19 00.101-Embassies & Missions 855.00 00.103-Special Diplomatic Expenditure 841.01 00.104-International Conferences/Meetings 0.86 00.105-Passport & Emigration 121.86 00.106-Entertainment Charges 26.50 00.798-International Cooperation 42.11 00.800-Other expenditure 85.95 2070-Other Administrative Services 00.00 120-Payment to State Governments/ 00.00 Union Territories for Administration of Central Acts And Regulations 3 12 3 45 2075-Miscellaneous 00.01 General Service 00.791-Loss by Exchange 00.01 3605-Technical and 1158.39 Economic cooperation with other countries 00.101-Cooperation with 1158.39 other countries Total—Revenue Section 3264.06 Capital 4059-Capital Outlay on 70.00 Public Works 60.051-Construction 70.00 4216-Capital Outlay 25.00 on Housing 01.700-Other Housing 25.00 7605-Advances to 281.63 Foreign Govt. 00.098-Loans to Govt. of 1.62 Bangladesh 00.097-Loans to Govt. of Bhutan 280.00 00.095-Loans to Govt. of Nepal 00.01 7615-Miscellaneous Loans 00.200-Miscellaneous loans 00.00 Total—Capital Section 376.63 Total—Grant No. 31 3640.69 6. The overall budgetary position for the year 2003-2004 and the proposed allocations for the year 2004-2005 under the Revenue and 4 Capital
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