Sixth Pay Commission

IN PARLIAMENT TODAY

The government is initiating steps to set up the Sixth Pay Commission and consulting states in this regard, the Rajya Sabha was informed on Tuesday.

However, the date of the commission's constitution and mandate had not been finalised, Minister of State for Finance PK Bansal told the House.

The Fifth Pay Commission, constituted on April 9, 1993, submitted its report in January 1997, and the accepted recommendations were notified on September 30, 1997, Bansal said.

The Fifth Pay Commission estimated the financial implications of its recommendations at Rs 8,800 crore per annum, he said. In reply to another question, Bansal said there was no direct relationship between the rise in share market and the rise in food prices.

He said the government was concerned about the price increase of various essential commodities and would take steps to contain it. The wholesale price index for foodgrains was 7.26 per cent during the week ended February 18, 2006, against 1.29 per cent in the corresponding week of last year.

On a question on the VAT, Minister of State for Finance Palanimanickam said the Centre had released Rs 314.04 crore to Andhra Pradesh as compensation for the loss due to implementation of the VAT up to October 2005.

Iran-India pipeline routes being studied

India, Pakistan and Iran were discussing three possible routes for the tri-nation gas pipeline and each of these plans involved taking the pipe through the troubled region of Baluchistan in Pakistan, the Rajya Sabha was informed on Tuesday.

"Three alternatives, namely, northern, central and southern routes are being discussed," Minister of State for Petroleum and Natural Gas Dinsha Patel said. "Each route will be studied in detail while preparing a detailed project report," he said.

He, however, said adequate safeguards would be built to ensure safety and security of gas supplied to India. Officials of the three countries are holding tripartite parleys in Tehran on the issue of gas pricing, project structure and a government-to-government framework agreement.

A meeting of the technical teams from the three countries was held in New Delhi in January to discuss various aspects of the project.

Modernisation of non-metro airports

Apart from Delhi and Mumbai, the government was contemplating modernising other metro airports and 35 non-metro airports in the country, Rajya Sabha was informed today.

The work on non-metro airports was proposed to be taken up and completed by 2010-11 at an estimated expenditure of Rs 4,662 crore, Minister of State for Civil Aviation Praful Patel said in a written reply.

Legislation for FIs in education

The government intends to bring a legislation to regulate entry and operation of foreign institutions in higher education, the Lok Sabha was informed today.

In a written reply, Minister of State for Human Resource Development M A A Fatmi denied that the commerce ministry had been asked to withdraw the provision allowing foreign universities free entry into the country, from the list of offers to the World Trade Organisation.

Fatmi said a review committee had been set up to review the National Eligibility Test (NET) (for lecturers' appointment) for its utility, effectiveness and continuation.

Rural banks cash withdrawals

A number of regional rural banks have not complied with the requirement of reporting of cash withdrawal, the Rajya Sabha was informed today.

The banking cash withdrawal tax has been imposed to keep track of large cash withdrawals, Minister of State for Finance SS Palanimanickam told the House in a written reply.

The finance minister, in his Budget speech, had stated that large cash withdrawals made without any ostensible purpose, and which leave no trail presumably become part of black money, Palanimanickam said.

"High incidence of WSB in coffee-growing areas has occurred mainly due to the hostile weather conditions in the last three years like inadequate rainfall prolonged drought period," he said.

To another question, he said the government had approved a coffee relief package aimed at debt amelioration, which envisages equal sharing of total interest burden estimated at Rs 287.10 crore on special coffee term loan during the three year moratium period among banks.