document.writeln("

Indo-GCC FTA talks likely to begin early 2006
New Delhi: Negotiations for a free trade agreement (FTA) between India and the Gulf Co-operation Council (GCC) are likely to be initiated by early 2006 under the framework agreement signed in August 2004, according to Khalifa Bin Ali Al-Harthy, ambassador, Embassy of the Sultanate of Oman and the dean of the Gulf ambassadors in India. The ambassador was speaking at a seminar on Indo-Gulf Partnership for Prosperity and Development organised by the PHD Chamber of Commerce and Industry.

Al-Harthy said that the negotiations should be expedited and issues such as the Rules of Origin and Differential Tariff rates need to be resolved.

The Ambassador said that signing of FTA would increase trade between India and GCC significantly from the present US$20bn, excluding oil trade.

Al-Harthy stated that signing of a comprehensive economic agreement with GCC countries individually would further boost the economic ties.
Back to News Review index page  

Lok Sabha passes the rural employment guarantee bill
New Delhi: The Lok Sabha has passed the National Rural Employment Guarantee Bill 2005 through a voice vote. The bill guarantees 100 days job in a year to one member per household and a minimum wage of Rs60 per day even if the State Act provides a lower ceiling.

The scheme will be launched in 200 districts in the first phase.

However, if the wages under the State Act is more than Rs 60 in a particular State, the workers will be paid in accordance with the State Act under this scheme.

A last-minute amendment to this effect was moved by the minister for Rural Development, Raghuvansh Prasad Singh, in the Lok Sabha, which later passed the bill by a voice-vote.

Singh said that as per the modified Bill, in case the minimum wage in a particular State is less than Rs60, the beneficiary under the scheme will get an amount of Rs60. Likewise, if the minimum wage is more than Rs60, the beneficiary under this scheme will get higher wages as applicable under the State laws.

The Minister also assured the Parliament that the Government would provide equivalent amount as "unemployment allowance" if it failed to give the promised job.

The Minister also said that a similar Bill would be introduced for providing jobs in urban areas.

Singh said that under the proposed legislation, the panchayats have been given the role of implementing the scheme. As per the provisions of the Bill, the panchayats at district, intermediate and village levels shall be the principal authorities for planning and implementation of the schemes. The district programme coordinator will assist the panchayat at the district level in discharging its functions under the scheme, he said.

The amendments moved by the Government also provide priority to women workers and seek at least 33 per cent reservation for them, who have registered and requested for work under the scheme. The Government moved a total of 52 amendments to the original Bill, which was introduced in the Lok Sabha in December, 2004.
Back to News Review index page  

Parliamentary standing committee recommends new airports for Mumbai and Delhi
New Delhi: The parliamentary standing committee on transport, tourism and culture has suggested that the government should set up greenfield airports at Mumbai and Delhi instead of wasting money on modernisation of existing facilities at these airports.

The report, which was tabled in the Lok Sabha on Tuesday, argued that given the inherent technological and other constraints, "investing huge money on modernisation of Mumbai airport would be a waste." In case of Delhi airport, it added, "The existing infrastructure at the airport also possesses inherent lacuna and is therefore, inadequate to handle the growth being projected for the future by the government."

The report pointed out that there was no scope of having a second runway at Mumbai airport, which could be helpful in terms of air operations. At present international flights have to hover in the skies for 30-45 minutes before landing.

According to civil aviation ministry's projections, the passenger traffic movement is expected to go up from 14 million in 2004 to 52 million in 2024. The Mumbai airport, it is estimated, would get absolutely choked by 2012.

The committee also noted with concern that the proposal regarding modernisation and restructuring of Delhi and Mumbai airports has been lingering for a long period and still the government has not been able to come up with any concrete plans in this regard. The civil aviation ministry, it said, has not been able to even firm up the financial requirements for these projects. The government has been quoting different cost estimates at different stages. The report said that the initial figures of Rs10,000-20,000 crore stated by the aviation secretary were too inflated.

The committee further observed that the replies of the civil aviation ministry in the context of award of contracts at Bangalore International Airport Limited are evasive and highly unsatisfactory. The committee recommended that the entire matter concerning award of contracts should be probed by an independent agency.
Back to News Review index page  

Infrastructure sector growth down 0.5 per cent in July
New Delhi: The country's infrastructure sector grew only 0.5 per cent in July this year, down from the 11.1-per cent growth recorded by the six core infrastructure industries in July last year, according to a Ministry of Commerce and Industry statement.
The drop is mainly due to a fall in electricity and crude oil production, according to the data.

In June this year, infrastructure output grew 10.2 per cent on a year-on-year basis. For the April-July quarter of the current fiscal, infrastructure output growth slowed to 4.2 per cent, from 8.9 per cent growth in the same period last year.

The growth in July is the second lowest in the core sector in over a year. During the month, actual production of crude oil, coal and electricity generation fell, while the output in the other three sectors also slowed down. Crude oil production dipped 4 per cent during the month compared to the 0.2-per cent growth in July last fiscal. Coal output decreased 1.7 per cent, against a growth of 7.5 per cent, and power generation fell 1.3 per cent from a strong 13.6-per cent growth in the same month last fiscal.

The growth in finished steel production dropped to 3.7 per cent in July (17.2 per cent), while cement output grew 2.3 per cent (8.4 per cent).

The refining sector also slowed down marginally to a 3.6-per cent growth during the month from 3.8 per cent a year ago. Crude oil production declined for the third time this fiscal to 2.75 million tonnes in July, against 2.875 million tonnes (mt) a year ago.

Cumulative steel production during April-July grew 5.4 per cent to 13.746 mt, against a higher growth of 14.4 per cent during the previous corresponding quarter.
Back to News Review index page