NEW DELHI, Jan 7 (UNI) The government today announced the setting up of five million tonnes strategic crude oil storage at a total cost of Rs 6,650 crore with an aim to meet the country's oil security concern.
"This strategic storage would be in addition to the existing storage of crude oil and petroleum products (which is around 60 days) with the oil companies and would provide an emergency response mechanism in case of short-term supply disruptions," petroleum minister Ram Naik told mediapersons after the cabinet meeting.
However, the cabinet deferred a decision on hiking the natural gas prices, the minister added.
The strategic crude oil storage would be located in three rock cavern storages (underground storages).
Two locations would be near Mangalore in Karnataka and the third would be near Visakhapatnam in Andhra Pradesh.
Welcoming the decision of the government for setting up strategic reserves, IOC chairman M S Ramanchandran said that their company would be "too happy to execute the project" and expressed the hope that IOC can execute the project within three years.
Earlier, the petroleum ministry has favoured that IOC can be considered for implementing the project of national interest.
Naik said that the capital cost of constructing the cavern storage would be Rs 1,650 crore while the cost of crude would be Rs 5,000 crore at the current price.
The annual cost for servicing the debt and operations would be about Rs 800 crore.
"As regards the financing mechanism for the project, the finance and petroleum ministry would work out details," Naik said and added that the petroleum ministry has given two options for financing the project.
One option was to impose cess on petrol and diesel the second was to provide one time budgetary grant.
Naik said that the government has been considering the proposal of setting up strategic reserves in view of high oil import dependency of around 69 per cent, with around 67 per cent coming from Middle East region.
Last year, the country imported 82 million tonnes crude, valued at Rs 76,200 crore.
He said that after setting up the proposed strategic storage, India would also have a gross storage capacity in line with international energy agency.
"This would be the first such storage capacity in the South East Asian region," the minister added.
The proposal for setting up the strategic reserves evolved after ministry of petroleum and natural gas made a presentation to the prime minister, Atal Bihari Vajpayee, early last year following tension in Middle East region and later Iraq war.
Though the country made arrangements for ensuring full supplies, it was feared that if the war prolonged, there may be a shortage of petroleum products.
Petroleum minister Ram Naik also visited the Bryan Mound strategic reserves in Texas to see administrative and financial aspects of such storages.
Cabinet congratulates PM on SAARC success NEW DELHI, Jan 7 (UNI) The union cabinet today congratulated prime minister Atal Bihari Vajpayee for the successful conclusion of the SAARC summit held in Islamabad and on the positive outcome of his bilateral talks with the Pakistani leadership.
As the cabinet met here, the entire team of ministers expressed happiness at the successful outcome of the prime minister's talks with Pakistan president Pervez Musharraf and prime minister Mir Zafarullah Khan Jamali and his visit to Islamabad.
Vajpayee was also lauded by his cabinet colleagues for the signing of important agreements like SAFTA and the additional protocol to the suppression of terrorism convention of 1987, parliamentary affairs minister Sushma Swaraj told newspersons after the meeting.
The cabinet expressed hope that the peace process initiated by the prime minister in April 2003 at Srinagar would be taken to a successful conclusion in the interest of the people of India and Pakistan.
High level Cong team to initiate moves for pre-poll alliances NEW DELHI, Jan 7 (UNI) The Congress Working Committee today decided to constitute a high level team headed by party president Sonia Gandhi to initiate moves to arriving pre-poll alliances or adjustments with "secular progressive forces" to defeat the BJP-led NDA in the Lok Sabha elections.
Briefing newspersons about the decisions taken at the four-hour-long meeting of the highest policy making body of the Congress here, senior party leader Pranab Mukherjee said Gandhi had deputed Dr Manmohan Singh to go to Chennai to hold talks with DMK president M Karunanidhi on electoral alliance.
Dr Manmohan Singh is likely to leave here tomorrow for the purpose.
Mukherjee clarified that no specific party-wise or state-wise alliance or adjustment was discussed at the CWC meeting, chaired by Gandhi.
It concentrated only on discussing the strategy for the Lok Sabha elections.
However, he made it clear in reply to a question that it was not possible to have alliances or adjustments in every state.
The CWC decided that the AICC would entrust experienced leaders with the responsibility of helping the party in the Lok Sabha elections.
Each of them would be assigned one big state or two or three smaller states.
These leaders were to devote most of their time in the concerned states.
According to Mukherjee, assessment and stocktaking by AICC observers for all Lok Sabha constituencies would be completed preferably by the end of this month.
The process of candidate selection would be initiated on receipt of the reports.
A single over-arching election management committee would be set up under the chairmanship of the Congress president with a number of specific sub-committees, he said.
Professional assistance would be obtained for surveys and preparation of publicity materials.
A streamlined and effective system of planning of speakers programmes during the election campaign would be put in place both at the AICC and the PCC levels, Mukherjee said.
A special team would be constituted to prepare a detailed expose of the NDA government's failures well in time, he said.
Constituency level election management committees, chaired by the Congress candidates, would be set up to run the campaign with the active support of the District Congress Committee and Block Congress Committees.
It was also decided to involve "friendly" independent members of panchayats and municipalities in the election campaign more directly and systematically, he said.
The CWC also recommended chalking out booth-wise strategies by the AICC in consultation with the PCCs and other lower level units of the organisation.
No risk in foreign investment in defence: Rajagopal CHENNAI, Jan 7 (UNI) Ruling out any risk factor in allowing foreign investment in the defence sector, minister of state for defence production O Rajagopal today maintained that the Vajpayee government had opened up the gates for domestic as well as partial foreign investment in the sector to achieve the dream of a developed India by 2020.
"The licences will be issued only after analysing the risk factor," he said after the roll out of the T-90s battle tank `Bhishma' at the Heavy Vehicles Factory (hvf) at suburban Avadi here.
"A tank needs thousands of parts.
Allowing foreign investment in minor parts will not pose a risk as such.
It will be only a licenced production.
So there will not be any risk factor in it," he explained.
Rajagopal asserted that there would not be any reconsideration on the issue as the government would only be opening up certain parts of defence production to private sector.
He said the ordnance factories had a very prominent role to play in this regard as the country's defence imports stood at over Rs 10,000 crore per annum.
"Through public and private participation, the import of defence equipment has to be brought down which in turn will save not only the foreign exchange but also increase the production within the country," he said.
"Indigenising imported equipment and outsourcing of various products to the private sector will help in achieving the dual objectives of increased self-reliance and higher economic growth," he stressed.
Rajagopal said the ordnance factories had to cater to the requirements of the indian army by tapping the international market of arms production and supplies for overall growth and generate additional resources for their modernisation and upgradation.
"Arms market has a huge potential and lesser competition in comparison with other industries.
The ordnance factory board will utilise the situation appropriately," he added.
In this context, the minister wanted the ordnance factories to adopt a new year resolution that they would take up marketing initiatives earnestly to compete at the international level.
The roll out of the T-90s was a great day in the history of the ordnance factory board as well as the army, he said.
"It is not only the transfer of technology of T-series tanks with our Russian partners, but it is also a bond of trust and confidence that both countries share for decades and the same gets strengthened everytime when such roll out takes place." High level Cong team to initiate moves for pre-poll alliances NEW DELHI, Jan 7 (UNI) The Congress Working Committee today decided to constitute a high level team headed by party president Sonia Gandhi to initiate moves to arriving pre-poll alliances or adjustments with "secular progressive forces" to defeat the BJP-led NDA in the Lok Sabha elections.
Briefing newspersons about the decisions taken at the four-hour-long meeting of the highest policy making body of the Congress here, senior party leader Pranab Mukherjee said Gandhi had deputed Dr Manmohan Singh to go to Chennai to hold talks with DMK president M Karunanidhi on electoral alliance.
Dr Manmohan Singh is likely to leave here tomorrow for the purpose.
Mukherjee clarified that no specific party-wise or state-wise alliance or adjustment was discussed at the CWC meeting, chaired by Gandhi.
It concentrated only on discussing the strategy for the Lok Sabha elections.
However, he made it clear in reply to a question that it was not possible to have alliances or adjustments in every state.
The CWC decided that the AICC would entrust experienced leaders with the responsibility of helping the party in the Lok Sabha elections.
Each of them would be assigned one big state or two or three smaller states.
These leaders were to devote most of their time in the concerned states.
According to Mukherjee, assessment and stocktaking by AICC observers for all Lok Sabha constituencies would be completed preferably by the end of this month.
The process of candidate selection would be initiated on receipt of the reports.
A single over-arching election management committee would be set up under the chairmanship of the Congress president with a number of specific sub-committees, he said.
Professional assistance would be obtained for surveys and preparation of publicity materials.
A streamlined and effective system of planning of speakers programmes during the election campaign would be put in place both at the AICC and the PCC levels, Mukherjee said.
A special team would be constituted to prepare a detailed expose of the NDA government's failures well in time, he said.
Constituency level election management committees, chaired by the Congress candidates, would be set up to run the campaign with the active support of the District Congress Committee and Block Congress Committees.
It was also decided to involve "friendly" independent members of panchayats and municipalities in the election campaign more directly and systematically, he said.
The CWC also recommended chalking out booth-wise strategies by the AICC in consultation with the PCCs and other lower level units of the organisation.
Mediapersons hold dharna outside PM's bridge inauguration venue KATRA, UTTAR PRADESH, Feb 7 (UNI) Scores of mediapersons and Delhi held a dharna outside the railway station here as the railway authorities failed to provide them with passes to cover the inauguration of a railway bridge by prime minister Atal Bihari Vajpayee later today.
An apparent lack of coordination between the Northern Railway (NR) and North-East Railway (NER) authorities resulted in the situation.
While most of the scribes have gathered at nearby Ayodhya and Faizabad since yesterday to cover the inauguration of a railway bridge over the Saryu river and a subsequent public meeting by Vajpayee at Faizabad airstrip, they failed to get their passes.
"The NR authorities said since the programme is being handled by NER, they were not in a position to help us.
But no ner official is present to solve our problem," said a Delhi-based photo journalist from a weekly magazine.
Only 20 scribes were able to get passes to cover the prime minister's much-hyped 8.7 km train journey from Katra in Gonda district to Faizabad district over the Saryu.
The VVIP train with presidential saloons and specially-converted coaches would cross the bridge and reach Ayodhya.
Without stopping at the temple town, it would reach Faizabad.
The district and police officials said they could not let anyone in without passes.
"The SPG would ensure that we lose our jobs if we allow you inside on the basis of your identity cards," said a top police official.
Pak business delegation visiting India from Feb 9 NEW DELHI, Feb 7 (UNI) Thaw in India-Pakistan diplomatic ties is boosting bilateral economic cooperation, with a 16-member delegation of Pakistani businessmen visiting India to promote trade ties.
The delegation is expected to cross the Wagah border on February 9.
It will be in India for two weeks to look into ways of increasing bilateral trade, The Daily Times reported today.
The delegation is scheduled to stop over in New Delhi and Mumbai.
Pakistan has not given the MFN (Most Favoured Nation) status to India fearing tough competition.
Due to trade barriers, Pakistan one of the largest consumers of tea imports tea from Kenya despite being neighbour of the world's largest tea producer India.
Several such barriers to trade are likely to come down after finalisation of the South Asian Free Trade Agreement, which was proposed during the January SAARC summit in Islamabad.
Countries of BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka, Thailand-Economic Cooperation) grouping are meeting today in Bangkok's resort city of Phuket to discuss the proposed SAFTA.
Beginning January 1, 2006, SAFTA will ensure that over the next 10 years Pakistan, India and Sri Lanka reduce their maximum import duties to 20 per cent while least developed countries Bangladesh, Nepal, Bhutan and the Maldives will reduce their maximum duties to 30 per cent.
Vaiko kicks off campaign for LS polls from Vellore prison gates VELLORE, TAMIL NADU, Feb 7 (UNI) Marumalarchi DMK (MDMK) general secretary Vaiko today kicked off the campaign for the coming Lok Sabha elections from the prison gates here, expressing dismay over prime minister Atal Bihari Vajpayee for 'giving a clean chit' to Tamil Nadu chief minister and AIADMK supremo J Jayalalithaa.
Addressing the media on stepping out of the prison after being detained under POTA for 577 days, Vaiko said he had very high regard for Vajpayee but the same had been 'shattered' when the prime minister, sharing platform with ms Jayalalithaa at an official function at Kanniyakumari, heaped praises on the chief minister.
It was painful to listen to Vajpayee describing Jayalalithaa as a protector of democracy, when she had thrown all democratic norms to the winds and had resorted to repressive measures against all sections of the people and her political adversaries, he pointed out.
"I thought Mr Vajpayee is above petty politics and political compulsions, but he has proved otherwise," Vaiko regretted.
To a question, he said he was launching the campaign for the Lok Sabha elections right from the gates of the prison and the 'misuse' of POTA would be the party's main political plank.
Vaiko released after 577 days in custody VELLORE, TAMIL NADU, Feb 7 (UNI) MDMK general secretary and POTA detenu Vaiko, member of the just dissolved 13th Lok Sabha, was today released from the central prison here after 577 days in custody.
The firebrand MDMK leader, who was arrested under POTA on July 11, 2002, for allegedly making a pro-LTTE speech at a public meeting at Tirumangalam near Madurai on June 29, 2002, was received by scores of MDMK workers when he came out of the prison at 0935 hrs.
The MDMK workers celebrated his release by bursting crackers and distributing sweets as it turned out be an emotional occasion for Vaiko.
Vaiko's release comes 25 days after eight other MDMK workers were released on bail following a Madras High Court directive after the POTA court had dismissed their bail pleas.
Vaiko did not move any bail application since his detention.
However, following an appeal from his political-mentor and DMK president M Karunanidhi who said that the MDMK leader's presence was necessary to undertake field works in the wake of early elections to the Lok Sabha, vaiko relented from his tough stand and filed the plea before the POTA court.
The prosecution had filed its counter and sought time till January 27 to enable state advocate general NR Chandran to argue considering the seriousness of the case.
As Chandran did not turn up in the morning session on that day due to prior commitments, the defence counsel and advocates owing allegiance to the MDMK boycotted the forenoon proceedings.
However, after Chandran's arguments on January 27, POTA judge L Rajendran granted bail to Vaiko on February three, but imposed stringent conditions and asked him to file a sworn affidavit that he would abide by the conditions.
PM should tender apology on Rajiv Gandhi case: Munshi BHOPAL, Feb 7 (UNI) All India Congress Committee Madhya Pradesh in-charge Priyaranjan Das Munshi has said that prime minister Atal Bihari Vajpayee should tender an apology after acquittal of former prime minister Rajiv Gandhi in the Bofors case.
Talking to newsmen here yesterday Munshi alleged that prime minister Atal Bihari Vajpayee had convened a cabinet meet in the past to somehow or the other make Gandhi the main accused in Bofors case.
"Mr Vajpayee and his colleagues had always made an attempt to humiliate the Gandhi family on Bofors issue," he charged.
Venkaiah reconstitutes BJP Parliamentary Board, Election Committee NEW DELHI, Feb 07 (UNI) Bharatiya Janata Party president M Venkaiah Naidu today reconstituted the party's Parliamentary Board and Central Election Committee by having prime minister Atal Bihari Vajpayee deputy prime minister LK Advani and human resource minister Murli Manohar Joshi in the nine-member board.
Naidu, who was authorised yesterday by the BJP National Council to reconstitute the Parliamentary Board and and Central Election Committees, will be the chairman of both the committees while Mahajan will be the secretary.
Finance minister, Jaswant Singh, party general secretary Pramod Mahajan, parliamentary affairs minister Sushma Swaraj, law minister Arun Jaitley, and another BJP general secretary Sanjay Joshi are the other members of the Parliamentary Board, the important decision making body.
The members of the Central Election Committee are union minister Rajnath Singh, former Gujarat chief minister Keshubhai Patel, party general secretaries Mukhtar Abbas Naqvi, Shivraj Singh Chavan, BJP vice president Anita Arya, Sushil Kumar Modi and former Jharkhand chief minister Babulal Marandi.
Shining India campaign bogus: Chennithala THIRUVANANTHAPURAM, Feb 7 (UNI) Describing the NDA government's 'India shining' campaign as a big hoax, Congress Working Committee special invitee Ramesh Chennithala today said it was a part of the 'media hype' being created by the BJP to hide its shortcomings.
"Only ten per cent of the affluent class is shining.
The rest 90 per cent is weeping.
India is shining only in newspaper advertisements.
The situation on the ground is different," he said at a press conference here.
Stating that the country had achieved a GDP growth rate of eight per cent only in one quarter of this financial year, he said the average growth rate during the four-and-a-half years of NDA rule was only five per cent.
"An economy of India's size would grow at five per cent even if the country was sleeping and not shining," he quipped.
Asked about the BJP's 'Vajpayee Vs Nobody' election slogan, Chennithala dismissed it as propaganda.
It would have no effect on the Congress prospects in the coming Lok Sabha elections as the party would focus on core issues affecting the people, he claimed Asserting that the Congress was better placed in most states, Chennithala said the BJP had no presence in Kerala, Tamil Nadu, Karnataka, Assam and would trail behind the Congress-NCP alliance in Maharashtra and the Congress-RJD combine in Bihar.
Describing Uttar Pradesh as the 'main battle-field,' Chennithala said the Congress was working on a viable electoral strategy for the state.
Defending the party's alliance with the DMK in Tamil Nadu, he said the final report of the Jain Commission had exonerated the DMK in the Rajiv Gandhi assassination case.
Moreover, people were fed up with chief minister J Jayalalitha's 'authoritarian rule' and it was essential for the opposition parties to come together to provide succour to them, he added.
On the infighting in the Kerala unit of the Congress, he said no party was free from internal squabbles.
The high command would take appropriate steps to contain the situation.
Describing K Karunakaran as a senior party leader, he said the high command would not disregard his views.
It would consider the views of all concerned and announce its decision.
On Priyanka and Rahul Gandhi's entry into politics, he said it would definitely enthuse the party workers and enliven the political scene in the country.
