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December 15, 1999
In this release
Expansion of Vizag Refinery

Oil Pool Deficit

Unauthorised gas cylinders
Pesticides industry to develop ideas to woo foreign investment in R&D

Mineral production – October 1999

Control centres to be set up by DTS for Y2K compliance in telecom

Balance of payments situation

Collection of income tax from private entrepreneurs

Expansion of Vizag Refinery

Hindustan Petroleum Corporation has formulated an action plan to expedite the Visakhapatnam refinery expansion project. While Crude Distillation Unit and Vacuum Distillation Unit have been mechanically completed in September 1999, Fluidised Catalystic Cracking Unit (FCCU) is expected to be mechanically completed by end December, 1999. Reasons for slippage in completion of FCCU are as follows:

  1. Large number of modification of piping drawings necessitated due to site conditions.
  2. Carrying out detailed safety checks on alloy steel materials and bolts at site.
  3. Delay in delivery of certain critical materials.

As on 15 November 1999, Rs.849.97 crore have been spent on the project. Crude processing capacity of the refinery will go up by 3 million metric tonnes per annum.

Oil Pool Deficit

The total oil import bill during the year, 1998-99 was $ 6482 million (provisional) (Rs.27,484 crore approximately). The total oil import bill during the current financial year is estimated to be around $ 12,525 million (Rs.54,484 crore approximately). The deficit in the oil pool account by the end of the current financial year is estimated to be around Rs.5000 crore, as of now.

Government is taking to bring down the import of petroleum products and consumption thereof. These include:

  1. Measures for increasing crude oil production in the country through application of improved technologies and development of new fields.
  2. Attaining self-sufficiency in refining capacity by expansion of the existing refineries and setting up of new refineries in public, joint and private sectors.
  3. Laying emphasis on petroleum conservation measures and use of alternative sources of energy like Coal Bed Methane (CBM).

Unauthorised gas cylinders

The number of unauthorized gas cylinders detected during the last three years are as under:

Year

No. of Cylinders

1997

13335

1998

10945

1999 (upto November)

8887

Cylinders received at LPG bottling plants are checked thoroughly while unloading for their genuiness. Inspections of distributors' godowns are done to check the cylinders. Recoveries are made from the concerned Transporter/Distributors at penal rate for unauthorised/spurious cylinders. . All concerned persons are given training for identifying unauthorised cylinders periodically.

Pesticides industry asked to develop ideas to woo foreign investment in R&D

The Minister of Chemicals & Fertilizers, Suresh Prabhu has asked the pesticides industry to develop ideas that could attract foreign investment in Research & Development (R & D) in the sector.

The Minister said that R & D would increasingly become the core area in the new millennium. With liberalisation of the economy and opening up of the world market, the industry faces new challenges, the Minister said. The stipulations under the World Trade Organisation (WTO) and Intellectual Property Rights are, in particular, relevant to the pesticides industry. The pesticides industry would have to gear up its R & D efforts and bring in technologies which would give products that are user friendly and cause least harm to the farmers using it. The Minister said the pesticides industry should, therefore, make efforts to switch over to greener technologies. It should make an effort also to adhere to the ISO 14000 norms. This will also make Indian products acceptable in the world market. Prabhu felt that there was also a need to develop bio-pesticides to supplement the use of chemical pesticides.

Mineral production – October 1999

The total value of mineral production (excluding atomic & minor minerals) in the country during October, 1999 has increased to Rs.3141 crore from Rs.2950 crore in September, 1999. The contribution of coal is the highest at Rs.1465 crore (47 per cent). Next in the order of importance follows: petroleum (crude) Rs.924 crore, natural gas (utilised) Rs 329 crore, iron ore Rs.138crore, limestone Rs.100 crore and lignite Rs.56 crore. These six minerals together contribute nearly 96 per cent of the total value of mineral production.

Production levels of important minerals in October, 1999 are: coal 244 lakh tonnes, petroleum (crude) 27 lakh tonnes, natural gas (utilised) 17110 lakh cu.m., iron ore 51 lakh tonnes, lignite 1421 thousand tonnes, manganese ore 114 thousand tonnes, chromite 81 thousand tonnes, bauxite 402 thousand tonnes, copper ore 213 thousand tonnes, gold 174kg., lead (conc.) 5700 tonnes, zinc (conc.) 33147 tonnes, limestone 99 lakh tonnes, apatite and phosphorite 138 thousand tonnes, dolomite 213 thousand tonnes and magnesite 28 thousand tonnes.

During October, 1999 the output of copper ore increased by 19 per cent, coal 17 per cent, lead (conc.) 14 per cent, natural gas (utilised) 4 per cent, apatite & phosphorite 3 per cent, iron ore and manganese ore 2 per cent each. The output of lignite decreased by 28 per cent, chromite 9 per cent, gold 6 per cent, bauxite and limestone 5 per cent each, dolomite 4 per cent, magnesite 2 per cent and zinc (conc.) one per cent. The output of petroleum (crude) has remained at the same level as in previous month.

The index number of mineral production (Base 1993-94=100) in October, 1999 works out to 118 as compared to 113 in September, 1999 showing that the mineral production as a whole in October, 1999 increased by 4 per cent compared to September, 1999.

Control centres to be set up by DTS for Y2K compliance in telecom

The Department of Telecom Services (DTS) is setting up control centres for Y2K compliance at national level, circle level and telecom district levels from 25 December 1999 to 7 January 2000. This measure is part of the contingency plan of telecom sector, which is fully Y2K ready. The national level control centre is being set up at Sanchar Bhavan, New Delhi backed up by the Telecom Engineering Centre control room (having department technology experts) and which will be linked with control rooms of the various technology vendors. The National level control room at Sanchar Bhavan is being linked to 22 Telecom Circles/Metro Telecom Districts, which in turn will be linked with 322 telecom districts.

The entire telecom sector in the country covering DTS, MTNL, VSNL, ITI, HTL, TCIL and all private telecom operators is fully Y2K ready and at present concentrating on operation of contingency plans and setting up of control centres all over the country. The complete information on Y2K readiness has been placed by the International Telecom Union (ITU) on its web site www.itu.int/updates.htm.

Balance of payments situation

The rise in international crude oil prices will result in significant increase in the value of POL imports during 1999-2000. However, the current account deficit in 1999-2000 is expected to be contained within sustainable level, because of significant recovery of exports, slow down in non-oil imports and buoyancy in net inflow of invisibles. The trends in capital flows in the current financial year so far have also been encouraging. The movement in foreign exchange reserves, which reflect the net outcome of overall balance of payments, shows that the foreign currency assets of the RBI have increased by $ 1795 million during the first eight months of the current financial year (1999-2000).

Collection of income tax from private entrepreneurs

Assessees whose income are not subject to tax deduction at source at all unlike salaried employees, are liable to pay advance tax in accordance with the provisions of sections 208 to 219 of the Income Tax Act, 1961 in respect of the total income of the financial year. Such advance tax is payable during the financial year in every case where the amount of such tax payable by the assessees is Rs.5,000 or more. The balance of tax, if any, is paid as self-assessment tax at the time of filing of Return of income. In view of this, all assessees are required to pay the tax payable on their total income by way of tax deducted at source, advance tax and self-assessment tax, as the case may be.