WASHINGTON, August 22, 2006 ─ The World Bank today approved a US$672 million package of assistance to India’s health sector, designed to improve reproductive and child health services, reduce mortality and morbidity due to tuberculosis, and increase utilization of essential health services in the State of Karnataka.

The three projects are the Reproductive and Child Health (RCH) II Project (US$360 million), the Second National Tuberculosis Control Project (US$170 million), and the Karnataka Health Systems Development and Reform Project (US$141.83 million).

World Bank management had earlier withheld presenting the three projects to the Board of the institution while it investigated allegations of wrong-doing in the procurement of pharmaceuticals as part of the RCH I Project, the precursor to the project which the board considered today. The investigation found instances of serious deficiencies in procurement and its practices. These findings were passed on to the Government of India which took strong action in response to this information.

“The Bank and the Government of India have agreed to implement a strong action plan aimed at addressing collusion and corruption in procurement across the health sector,” said Praful Patel, World Bank Vice-President for South Asia. “These measures will help provide a larger framework to improve governance in the health sector in India and ensure that quality health services are available to millions of poor people.”

The US$360 million credit for the Reproductive and Child Health II Project is targeted at improving the health of poor women and children, who live in rural and tribal areas and urban slums. By supporting the expansion and use of essential RCH services, the project aims to accelerate India’s progress towards maternal and child health goals outlined in its national policies and the Millennium Development Goals (MDGs).

Despite progress made in improving health care delivery, India still has very high levels of maternal and child mortality. About 136,000 women and 2.4 million children—about a fifth of the world’s total—die every year in India mostly as a result of preventable causes. Large disparities among socioeconomic groups persist, population growth remains high in a number of poor states, and there are unmet needs for contraception.

“Providing significant funding for India’s health care system will have a positive impact on the lives of those who are most vulnerable: mothers and young children,” said Fayez Omar, Acting World Bank Country Director for India.   “These continued efforts will help the Government of India achieve the Millennium Development Goals of reducing child and maternal mortality, and improve the overall state of health care in India.”

The project is part of the Government of India’s multi-billion dollar RCH II Program launched last year and supported by several other donor partners. Among them the Department of International Development of the United Kingdom and the United Nations Population Fund will be pooling resources with the World Bank to encourage deeper cooperation among those engaged in the sector and avoid duplication.

The US$170 million credit for the Second National Tuberculosis Control Program aims to achieve the global targets of 70 percent case detection and 85 percent cure rate, and for the zones where Directly Observed Treatment Short course (DOTS) has been under implementation for five or more years, to decrease the incidence of smear-positive Tuberculosis (TB).

Communicable diseases continue to account for nearly half of India’s disease burden, of which Tuberculosis is among the most widespread causes of morbidity, disability, and mortality. About 40 percent of the adult population is infected by Mycobacterium Tuberculosis, causing more than 1.8 million new cases and 400,000 deaths every year. Of the new cases, nearly 800,000 are infectious, and each of these infects on average 10 people.

Tuberculosis afflicts nearly all age groups although most cases are among adults aged 15 to 59 years, the most economically productive segment of society. As a result, the disease brings about enormous social and economic disruption to the patients and their dependent families, and slows India’s overall economic growth. It is estimated that Tuberculosis burdens the society nearly US$3 billion annually in indirect costs.

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While emphasis in the first phase of the program was on introducing DOTS in a uniform manner across the country, the program will now target the states which have below-average performance through additional technical and managerial support.

The US$141.83 million credit for the Karnataka Health System Development and Reform Project will also focus on maternal and child health and on communicable diseases to contribute to the achievement of the health-related MDGs, mainly by expanding coverage of essential services in rural and underserved areas.

Over the last decade, Karnataka has been one of the fastest growing states in India, and the increase in per capita income has led to better standards of living and improvements in priority health outcomes. However, disparities in health outcomes across different socio-economic groups and geographical areas have not been addressed adequately. Most of the activities planned under the project target the socially and demographically vulnerable on a priority basis. The Credit will also support innovations in service delivery and health financing to ensure better quality and expanded coverage.

The credits from the International Development Association, the World Bank’s concessionary lending arm, carry a 0.75 service fee, a 10-year grace period, and a maturity of 35 years

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The total gold production in the country, during April-July, 2006 was estimated at 4.0801 tonnes against a target of 3.73 tonnes. The total production during these four months last year was 2.60 tonnes. Out of the total production in April-July, Hutti Gold Mine Ltd (HGML) produced 0.68115 tonnes, Hindustan Copper Ltd. (HCL) 0.107 tonnes and Hindalco Industries Ltd. (HINDALCO) 3.292 tonnes
Production during July, 2006 was 0.778022 tonnes out of which HGML produced 0.172022 tonnes, HCL 0.025 tonnes and HINDALCO 0.581 tonnes. After closure of Bharat Gold Mines Ltd. (BGML), HGML is the only unit processing gold from ore stage. HCL and HINDALCO process gold as a by-product, while processing copper.

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The steel sector in India was de-regulated in 1991-92 when controls on capacity and prices were abolished along with the quantitative trade restrictions. Import tariffs were also brought down substantially and the Government focused on removing the bottlenecks in supply of inputs such as iron ore and coal, and to encourage self-reliance to meet the demand for steel in the country. Post-1992 there was substantial capacity addition in the domestic steel sector, the lead being taken by the private sector and secondary sector producers. The fortunes of domestic steel industry, which was globally integrated, were being affected by the cyclicity in the global steel market. In view of our inherent advantages and rising demand for steel, the growth prospect of the Indian steel sector appeared very bright. Hence, there was a need for the Government to clearly spell out a road map for the steel sector. The National Steel Policy(NSP) sets out a broad roadmap for the Indian steel industry in its journey towards reform, restructuring and globalisation. The long-term goal of the NSP is that India should have a modern and efficient steel industry of world standards, catering to diversified demand for steel. The focus of the policy is to achieve global competitiveness not only in terms of cost, quality and product-mix but also in terms of global benchmarks of efficiency and productivity. In order to achieve the goal of 110 million tonnes of steel production by 2019-20, the NSP seeks to remove the supply-side constraints to the growth of this industry in an open, globally-integrated and competitive environment. The NSP seeks to adopt a multi-pronged strategy to move towards the long-term policy goal. On the demand side, the strategy would be to create incremental demand through promotional efforts, creation of awareness and strengthening the delivery chain, particularly in the rural areas. On the supply side, the strategy would be to facilitate creation of additional capacity, remove procedural and policy bottlenecks in the availability of inputs such as iron ore and coal, make higher investments in research and development (R&D) and encourage the creation of infrastructure such as roads, railways, and ports. The NSP acknowledges the low per capita consumption of steel in the country, especially in the rural areas and the need to boost steel consumption to improve the quality of life and help in meeting the growing aspirations of the people. In order to achieve the strategic goal of 110 metric tonnes of steel production by 2019-20, the industry would need additional capital. In addition, funds would be required for technological upgradation of the existing facilities. In order to mobilize such vast resources, the NSP seeks to encourage foreign direct investment. In addition, the policy also seeks to make the fiscal incentives, available to infrastructure projects, accessible to the steel industry. The NSP seeks to contain price volatility in the steel market. Its emphasis is on strengthening the existing training and research facilities available to the domestic steel industry to provide suitable training programmes, especially for the secondary small-scale units and also to collect and analyze data on important parameters of the industry. The NSP seeks to mount aggressive R&D efforts to create manufacturing capability for special types of steel, substitute coking coal, use iron ore fines, develop new products suited to rural needs, enhance material and energy efficiency, utilize waste, and arrest environmental degradation. The NSP acknowledges the important role played by the secondary steel sector in providing employment, meeting the local demand for steel in the rural and semi-urban areas, and meeting the country’s demand of some special products. It endeavours to provide the necessary feedstock to these units at reasonable prices from major plants through the existing mechanism of State Small Industries Corporations. The NSP recognizes the fact that integration of the Indian steel industry with the global economy requires that the industry should be protected from unfair trade practices, common during downturn period. The NSP, therefore, envisages institution of mechanisms for import surveillance and monitoring export subsidies in other countries. ACTION TAKEN SO FAR In view of the buoyancy in the steel market in the last three years, entrepreneurs, both international and domestic, have expressed deep interest in the growth prospects of the Indian steel industry. In the three mineral-rich States of Orissa, Chhattisgarh and Jharkhand, 116 memorandums of understanding(MoUs) have been signed by the State Governments covering a proposed capacity of 146 million metric tonnes per annum of additional capacity with an investment of over Rs. 3.50 lakh crore. Immediately after the announcement of the policy consultations were held with different sectors of the industry and the concerned State Governments, inviting feedback on formulating sector-specific action plans. The announcement of the steel policy has generated substantial interest in different sectors. Active consultations are going on with the State Governments for ascertaining the requirement of raw materials and infrastructure for the proposed growth plan in different States. The Ministry of Steel proposes to function as a nodal point for monitoring the progress made in the upcoming and proposed steel projects. On the issue of raw materials, mainly iron ore for the steel sector, the Government constituted a high-level committee under the Member (Industry), Planning Commission. The Anwarul Hoda Committee was tasked to review the National Mineral Policy and to recommend possible Amendments to the Mines and Mineral Development and Regulation Act, 1957. The Committee had extensive consultations with various interest groups, stakeholders and State Governments. Reports prepared and submitted by Study Groups and in-house committees set up by various Ministries from time to time on the issues before the Committee were also discussed. The Hoda Committee has since submitted its report and the matter is presently being examined by the Government. However, since positive action flowing from the recommendations of the Hoda Committee may take some time, the Ministry of Steel is also engaged in preparation of an appropriate action plan for meeting the country’s raw material requirement. A long-term action plan for promoting consumption of steel has been drafted and comments of different stakeholders are presently being obtained. Efforts have also been made to amend the CPWD Code for promoting steel-intensive design for construction. To strengthen the distribution network of steel companies, the Government has also instructed the public sector units of SAIL and the Rashtriya Ispat Nigam Limited (RINL) at Vizag to appoint district and sub-district level dealers covering the entire country. So far, SAIL has appointed 200 dealers in 97 districts. RINL has 40 dealers in 40 districts. In addition, 300 plus dealers are to be appointed by SAIL in the near future. For ensuring raw material security many steel companies have started entering into joint ventures and equity participation with raw material companies abroad. PSUs are also actively engaged in this process. The Ministry has set up the Steel Research and Development Mission (SRDM). Having full functional autonomy, it has been entrusted with the task of carrying out path-breaking research in the steel sector. The Ministry will support the mission for the first three years and thereafter it is expected to become self-sustaining. For meeting the requirement of investments, the Government has identified several fiscal incentives for the steel sector which include further liberalization of External Commercial Borrowing (ECB) norms and various rationalizations/simplifi cations of the existing fiscal incentives. The matter will shortly be placed before the Committee of Secretaries. Draft action plan for the refractory sector has been formulated and would soon be operational. Immediately after the announcement of the NSP a national seminar on “Rail Transportation Issues in the Steel Sector” was organized by the Ministry of Railways. Several issues were identified and work has been initiated. The announcement of a dedicated freight corridor during the railway budget 2006-07 was one such outcome. It is proposed to co-opt the Departments related with creation of infrastructure, including the railways, in the discussions with State Governments for identifying various bottlenecks and suggesting remedial measures. A Task Force has been constituted under the chairmanship of the Member (AH), Planning Commission to formulate the financing plan for ports and making suitable recommendations to the Committee on Infrastructure. The requirement of port facility for steel and iron ore has been identified as a major area. The Ministry of Steel has also commissioned several studies on specific issues which, inter-alia, include energy efficiency of the secondary steel sector along with remedial measures; the road map for promoting risk hedging instruments for absorbing price-related shocks; performance benchmarks of the industry in monitorable terms and all problems related to inefficient operation, pollution and sub-optimal utilization of resources. Work on installing an import surveillance mechanism for online dissemination of import-related data on a day-to-day basis has been completed. The data is expected to be shortly available online to the industry. Implementation of the National Steel Policy (NSP) in a systematic manner is the prime responsibility of the Ministry. The announcement of NSP, clearly laying down milestones and the future roadmap for the steel sector has inspired debates at different fora. The flow of inputs and suggestions has been overwhelming. This would facilitate the Government in formulating practical and workable action plans for different sectors of the domestic steel industry.

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 Imported consignments of 19522 tonnes of urad and 4379 tonnes of moong were received by Indian ports as on August 25, 2006. NAFED has already disposed of 9470 tonnes of urad and one hundred tonnes of moong at Chennai at prices ranging from Rs. 3050 to Rs. 3325 per tonne of urad and Rs. 3125 per tonne of moong. As far as the availability of imported wheat is concerned, six vessels with a total quantity of 294761 tonnes of wheat has been received by FCI by August 27, 2006. One vessel currently at discharge at Chennai port has discharged 21000 tonnes of wheat out of a total quantity of 50678 tonnes. Four vessels have arrived at Visakhapatnam, Cochin and Mundra ports with 2.1 lakh tonnes and are under quality check.

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Vice president of india  paying his tribute

An Indian Air Force IL-76 cargo aircraft carrying 25 tonnes of humanitarian aid left New Delhi early this morning for the beleaguered people of Lebanon. The consignment consists of 225 tents (single ply), 50 tents (double ply) and 3200 blankets.
The relief effort is a friendly gesture of India towards the people of Lebanon, where several innocent civilians including women and children have become victims of the recent clashes. The same aircraft will also evacuate Indian nationals from Lebanon during its return journey back home on Monday.
It may be recalled that at the initiative of the Defence Minister Shri Pranab Mukherjee, the Prime Minister had made an announcement in the Parliament on July 27, 2006 that India would provide Rs. 10 crores towards humanitarian and relief efforts in Lebanon. The Ministry of Defence was tasked with the procurement and dispatch of the relief material by the Government. Depending on the requirements, India may also send another consignment of relief material.

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Ministry of Information & Broadcasting today issued a Notification to provide that no film or film song or film promo or film trailer or music video or music albums or their promos, whether produced in India or abroad, shall be carried through cable service unless it has been certified by the Central Board of Film Certification (CBFC) as suitable for unrestricted public exhibition in India. The above has been necessitated on the ground of a growing demand from the public to regulate airing of programmes containing obscenity, violence, cruelty etc., through cable TV network. Hon’ble Bombay High Court had also passed a judgement in a Public Interest Litigation (PIL) matter directing the cable operators not to carry any programme, which was unsuitable for unrestricted public exhibition.
Another Rule has been amended to provide that no advertisement, which violates the code for self-regulation in advertising, as adopted by the Advertising Standard Council of India (ASCI), Mumbai, for public exhibition in India, from time to time, shall be carried in the cable service.
The new proviso have been inserted as an amendment to the Cable Television (Network) Rules 1994.

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The Union Cabinet today gave its approval for introduction of a Bill in the Parliament to amend the Code of Criminal Procedure, 1973 with some modifications on the basis of the recommendations of the Law Commission in its 154th, 177th and 178th Reports.
Implementation of the recommendations of the 154th Report of Law Commission of India would result in a better, effective and humane Criminal Justice System.

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