News

June 18, 1998 | Evening Transmission

Government today unveiled a policy for private participation in core Defence production. This was announced by Defence Minister, Mr. George Fernandez in New Delhi today after an interface with representatives of the Industry. Mr. Fernandes said that six task forces will be set up for specific areas of cooperation between the Defence Ministry and the Industry. He said they have decided in principle to open up some of the laboratories of the Defence Research and Development Organisation. The private sector will produce certain new products, developed in these laboratories. The Minister said the private sector and the Defence Production Department will also tie up in marketing and export of products.

In an interview to "New York Times", the Defence Minister has questioned President Clinton's rationale in trusting China with nuclear weapons while punishing India for seeking a deterrent against threats from its neighbours. Mr. Fernandes described the U.S.Nuclear policy as hypocritical. He said, American policy seeks to entrench the arsenals of the five established nuclear powers while shutting out countries like India.

Mr. Fernandes maintained that New Delhi had conducted nuclear tests to face the threats from China and Pakistan. Referring to reports of US and China becoming strategic partners, the Defence Minister said Beijing is aiding Islamabad by transfering nuclear and missile technology.

US Congressman Frank Pallone says, he will soon introduce a legislation in the House of Representatives seeking easing of sanctions against India if New Delhi takes adequate steps towards non-proliferation. In a statement in Washington he said, the aim of legislation will be to move away from the punitive nature of the current sanctions regime and to work towards greater cooperation to achieve non proliferation.
In Jammu and Kashmir, an Army Major and three hardcore militants of the banned Harkat-Ul-Ansar were killed in an encounter in Mandi area of Poonch district yesterday. This was disclosed by official sources in Jammu.

June 18, 1998 | Afternoon Transmission

Foreign equity participation upto one hundred per cent in hydro-electric and thermal power plants will now get automatic approval provided such equity participation does not exceed 1500 crore rupees. So far these categories of projects were eligible for automatic approval upto 74 per cent foreign equity. According to the ministry of industries, this facility will however not apply to generation, transmission and distribution of electric energy produced in atomic reactor power plants.

Members of the parliamentary committee on finance have expressed serious concern at the fall in the value of the rupee. The fluctuation in the stock market index was also one of the major focus of the meeting of the standing committee which continued for the second day yesterday. Several members also asked the government if the figures on black money are realistic enough. The issue cropped up in the context of the Samadhan scheme announced in the budget. The committee will hold a special sitting on June 29th to discuss the impact of these sanctions.
The Prime Minister says India may retaliate if United States vigorously pursues economic sanctions against it. In an interview to Washington Post, Mr. Vajpayee said New Delhi will have to take measures to minimise the impact of sanctions on the country's economy.

India's ambassador to the United States, Mr. Naresh Chandra has said that American companies would feel the first effect of sanctions when India turns for some purchases from the US to Europe or elsewhere. He said in Washington that India will find a way around US economic sanctions to purchase what it needs even though it may have to pay more.

Recently, the US Secretary of States, Ms. Madeleine Albright had said that America will be a loser as a result of sanctions against India. She feared that the US business will be adversely affected.

The ASEAN regional forum has decided not to invite Pakistan to a ministerial conference in Manila in July. The Philippines Foreign Affairs Secretary, Mr. Domingo Siazon said in Manila that several member countries were against the idea of inviting Pakistan. Pakistan is one of the several countries to have applied to join the forum, which tackles political and security issues in East Asia. On the other hand, India has begun its post nuclear tests dialogue with ASEAN countries by explaining to the Philippines leadership the security concerns which prompted it to conduct the tests. The Minister of State for External Affairs, Mrs. Vasundhara Raje told the Philippines President elect Joseph Estrada that India is committed to the goal of complete global nuclear disarmament.
According to Jane's military magazine, Pakistan has exhausted a significant part of its meagre nuclear arsenal in the last month's nuclear tests and the poor performance of its weapons revealed the country's strategic nuclear weakness. In a special report on the nuclear tests in its July issue, the magazine says that India logically sees greater security in furthering nuclear potential.
The Prime Minister has indicated that India can retaliate if United States vigorously pursue economic sanctions against it. In an interview to the Washington Times, Mr. Vajpayee said New Delhi will have no option but to take measures to minimise the impact of the sanctions on the country's economy. He regreted that if economic cooperation between India and the United States is adversely affected, both countries will lose a lot. The Prime Minister said, New Delhi has no intention of engaging itself in a nuclear arms race and building huge arsenals recently. The US Secretary of State, Ms. Albright had said that America will be a loser as a result of sanctions against India. She feared that the US business will be adversely affected declaring that the unilateral sanctions have lost their utility as other countries would secure the contracts, which normally would have gone to US, companies. The author of Glenn amendment, the law under which the sanctions were imposed on India, senator Jhon Glenn is of the opinion that the biggest problem the United States faces now is that it cannot unilaterally influence the world. Meanwhile, India has called upon the International Grains Council to give a serious thought to the implications of an American company patenting Indian rice basmati. Addressing the Council in London, the Food Minister, Mr. Surjit Singh Barnala said it is a classic case of economic hijack.

Backhome, the government today initiated a dialogue with banks and trade bodies to work out a joint strategy to boost exports and Indian investment in East Asian countries. The Commerce Minister, Mr. Ramakrishna Hegde had extensive talks with bank representatives and various trade bodies.