News

ISSUE NO 1.06

DEVELOPMENT

AUGUST 22, 1999




NEWS THIS WEEK

AGP LEGISLATORS' ULTIMATUM TO CM
PAGLADIYA DAM PROJECT COST UPDATED
2 TOBACCO GIANTS LIKELY TO INVEST RS 400 CR
IAF OBJECTION DELAYS GAS CRACKER PROJECT
TIPAIMUKH AWAITS INTER-STATE CLEARANCE


TRUCKERS' BLOCKADE IN MIZORAM CONTINUES
AIZAWL, August 14: The blockade enforced by the Mizoram Truck Drivers Association entered its fifth day yesterday even as cooking gas and rice had to be brought from Assam under police protection. The association had called an indefinite strike on August 9 and blocked traffic on the busy Aizawl-Silchar National Highway 54 to protest the state government's refusal to implement downloading of trucks on a first-come-first serve basis at various food and civil supplies godowns across the state. While the trucks are downloaded at the godowns as per the contractors' list, the drivers were demanding a change in the present policy. The government's refusal had led to the blockade-cum-strike which has left over 300 trucks stranded on NH 54. According to members of the Truck Drivers Association, the present downloading policy had caused hardship to the drivers as they had to wait endlessly for their contractor's name to be called before downloading goods even if they were the first ones to reach the godown. (UNI; The Assam Tribune; Guwahati; August 15, 1999)
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AGP LEGISLATORS' ULTIMATUM TO CM
GUWAHATI, August 15: At least 10 ruling Asom Gana Parishad (AGP) legislators, including the Speaker, Ganesh Kutum, and three ministers have accused the revenue minister, Zoiinath Sarma, of depriving the flood-affected areas in the state of flood damage repairs funds. In a letter to chief minister Prafulla Kumar Mahanta, the legislators have demanded immediate justice, failing which they would take the matter to the people. The demand has put Mahanta , who is in the midst of preparations for the August 30 bypoll to the Rajya Sabha, which is being contested by his wife, and the Lok Sabha, has been pushed into a piquant situation. (Darshan Balwally; The Hindustan Times; New Delhi; August 16, 1999)
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PAGLADIYA DAM PROJECT COST UPDATED
GUWAHATI, August 17: The total cost of the proposed Pagladiya dam project of the Brahmaputra Board has been updated to Rs 522 crore as per the price levels of 1998. The project, which envisages flood moderation and irrigation benefits with incidental power generation was earlier approved from techno-economic angle of the technical advisory committee of the Union ministry of water resources at an estimated cost of Rs 472 crore (1998 price level). The project, involving the construction of an earlier dam of about 26 metre high, had already been cleared from environmental angle by the Union ministry of environment and forests in September 1996. Clearance from the ministry of social justice and empowerment had also been received and the investment clearance was under consideration of the concerned ministry. The project, when completed, will provide flood control measures to about 40,000 hectares, including irrigation facilities to more than 54,000 hectares of agricultural land every year. (UNI; The Assam Tribune; Guwahati; August 18, 1999)
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2 TOBACCO GIANTS LIKELY TO INVEST RS 400 CR IN NE
NEW DELHI, August 19: The wind of investments blowing all over the country may have finally touched the Northeast following the exemption of central excise duty in the region. Two cigarette giants have submitted four proposals envisaging investments worth of over Rs 400 crore, of which Rs 313 crore are proposed to be invested in Assam. Just when the gloomy investments scenario in the Northeast was about to look up, the Centre's move to exempt excise duties in the region has been challenged, with the Tobacco Institute of India, an apex body of all tobacco manufacturers, questioning the justification behind the move pointing out that it would lead to loss of revenue for the government, besides encouraging antisocial activity in the r egion. They pointed out the case of Sikkim to buttress their claim where exemption had led to massive manipulation by many companies forcing the Centre to withdraw it. Even as protests are being raised, two cigarette companies, Godfrey Phillips and Indian Tobacco Company have submitted two proposals each with the secretary of industrial approval, seeking permission to set up manufacturing facilities in Assam and Tripura. If the Union government decides to issue fresh licences to the two companies then the region will see investments worth Rs 412.35 crore flowing into the Northeast. According to the proposal submitted by Godfrey Phillips, owned by the KK Modi Group, it will invest Rs 214.15 crore in the region. Its first proposal has envisaged investment of Rs 114.45 crore in setting up a manufacturing unit in Assam projected to produce 10,000 million cigarettes annually. The group has also proposed to set up another such manufacturing unit at Tripura, which will see an investment of Rs 99.7 crore, producing 7,500 million cigarettes annually. The second company, the Indian Tobacco Company proposes to invest Rs 198.2 crore. Its application mentioned that it envisages to invest Rs 99.1 crore in Assam and Tripura to set manufacturing facility producing 7,500 million cigarettes annually in each states. According to reports, the two cigarette giants' rationale behind such huge investments in the region is that excise duty in rest of the country is around 200 per cent, while it has been exempted in the Northeast. All the extra cost the companies have to bear is the transportation cost which is calculated to cost not more than 10 to 20 per cent, making investments in the region a highly profitable venture for the cigarette companies. However association of the tobacco companies put spanner in works by urging the Union government to withdraw the excise concession being given to the Northeast on the ground that it will lead to massive revenue losses for the government. More than this all sorts of illegal activities would plague the region harming the social well being of the people, they said. The Confederation of Indian Industry (CII) has welcomed the government's move but urged it to enact enough deterrent laws to prevent misuse of the exemption. The excise duty exemption being given relates to all goods produced in certain areas of Assam and Tripura, while exemption would be valid in all array of products in other states of the region. Sources said it was mainly because of the misuse of exemption of central Excise that the Union government had been holding back the permission. (Staff correspondent; The Assam Tribune; Guwahati; August 20, 1999)
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IAF OBJECTION DELAYS GAS CRACKER PROJECT
DIBRUGARH, August 19: The Rs 4,000-crore Assam Gas Cracker Project is being delayed due to objections raised by the Indian Air Force (IAF), which has a MiG fighter base near Chabua, and wants the Dibrugarh district administration to construct the project at least 20 kilometres away from the base. However, the IAF has lately agreed to allow establishment of the gas cracker plant outside a six-kilometre radius from the Chabua IAF base. This would mean that the height of certain tall structures of the industry may have to be reduced so as to provide a clear runway approach to aircraft of the Air Force. According to sources, Reliance is using this objection to its advantage to wrench out some more concessions from the Assam government. The government is already under tremendous public pressure to get the gas cracker project through. (Staff correspondent; The Assam Tribune; Guwahati; August 20, 1999)
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TIPAIMUKH PROJECT AWAITS INTER-STATE CLEARANCE
GUWAHATI, August 18: The Rs 2,899-crore Tipaimukh dam project of the Brahmaputra Board involving three Northeast states -Manipur, Mizoram and Assam -still awaits inter-state clearance from the concerned state governments for its execution which is being pursued by the Brahmaputra Board and the ministry of water resources. The techno-economic angle of the detailed project report submitted by Brahmaputra Board was approved by the technical advisory committee of the concerned ministry in August, 1995. The cost of Rs 2,899 crore (at the 1995 price level) which would now be over Rs 3,000 crore, official sources said. The project envisages construction of a 162 metre high rockfill dam with an installed capacity of generating 1500 MW of power. Moreover, the project will provide flood protection to 1.43 lakh hectares of land located in the downstream areas in the Barak Valley of Assam. The project has already been cleared by the Union ministry of social justice and empowerment, an official report said. (UNI; The Assam Tribune; Guwahati; August 20, 1999)
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