LEGISLATIONS AND DECISIONS

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INDIAN AIRLINES, AIR INDIA TAKEN OFF DIVESTMENT LIST

Indian Airlines and Air India were taken off the disinvestment list to enable the two airlines to go ahead with their fleet acquisition plans. The decision was taken on April 15, at a meeting of the Cabinet Committee on Disinvestment (CCD) chaired by Prime Minister Atal Bihari Vajpayee. The CCD also accepted the disinvestment of government equity to a strategic partner through global competitive bidding of 51% in Rashtriya Chemicals and Fertilizers. Some shares will go to workers and the rest, to public bidders in the stock market. CCD also allowed employee participation in disinvestment.


RAJYA SABHA OKAYS BILL BANNING CIGARETE ADS

On April 9, the Rajya Sabha passed a Bill banning advertisement of cigarettes and other tobacco products, besides prohibiting sponsership of sports and cultural events by manufacturers of these products. All advertisements on cigarettes and other tobacco products, direct or surrogate, in any form will be banned. The Cigarettes and Other Tobbaco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Bill, 2001, also seeks to ban sale of tobacco products tp minors, besides proposing to compound minor offenses and making punishment for offenses by companies more stringent. It bans sale of cigarette or any tobacco prodcuts within a 100 meter radius of schools and colleges, besides making it mandatory on producers to print a specific warning, alongside with nicotine and tar content per cigarette on the packet.


SPG AMENDMENT BILL

A bill to amend the Special Protection Act 1988 was passed by the Lok Sabha on February 20, by voice vote. Now the SPG security cover would be made available to former Prime Ministers and their spouces for a period of one year from the date on which a former Minister ceases to hold office and beyond one year as decided by the Central Government.


BAN ON CIGARETTE ADS

On February 19, the Union Cabinet approved a Bill that will restrict sale and completely ban advertising of cigarettes and other tobacco products. The ban on advertisement will cover both print and electronic media.


WATER CESS BILL

On February 18, the Lok Sabha passed a Bill proposing disincentives for indiscriminate use of water by industries. The Water (Prevention and Control of Pollution) Cess (Amendment) Bill proposed a threefold rise in water cess to be paid by industries and brought all industries into its ambit. Environment and Forest Ministry official said the amendment, the second since the Act was notified in 1974, would now cover all industries that are within the preview of the Central Pollution Control Board and the state pollution control boards.


CENTRE TO BEAR EXPENSES OF RECs

On February 19, The Union Cabinet approved the takeover of all 17 Regional Engineering Colleges (RECs) in the country as fully-funded institutes of Central Government. Though the scheme to upgrade the RECs into National Institutes of Technology (IITs) has been effective since 2002, this decision changes their pattern of funding.


GOVT. SUPPORT TO PLANTAION CROP

In an effort to help small farmers growing plantation crops like coffee, tea, rubber and tobbaco, the Central government has decided to start a Price Stabilization Fund. This entails a uniform price band of 40%, to be decided on the basis of a seven year moving average of international prices in respect to each commodity. It will apply to 342,000 growers who have holdings of 4 hectares or less. To participate in the scheme, every grower has to pay Rs.500 as entry fee and open an account.


BAN LIFTED ON TRADING OF 54 ITEMS

On February 19, the Centre lifted ban on futures trading of 54 commodities including food grain, pulses, oils, oil cakes and spices. Exchanges who want to trade in these commodities will have to apply for permission to the Forward Markets Commision. The lifting of ban is expected to stabilise the fluctution of prices and ensure opportunities to farmers, stockers and exporters.