Oil ministry into pipeline diplomacy

The Cabinet today authorised the petroleum ministry to lead and participate in bilateral and multilateral negotiations with Iran, Pakistan, Bangladesh, Afghanistan, Myanmar and Turkmenistan for laying transnational pipelines to import natural gas.

The Cabinet's approval means the ministry of petroleum and natural gas will take the lead from the ministry of external affairs to negotiate these deals.

"It will significantly enhance the oil security of the country," Petroleum Minister Mani Shankar Aiyar told reporters after a Cabinet meeting.

While the estimated demand for natural gas in India is 150 million standard cubic meters per day, the current availability, from both domestic sources and imports, is only about 83 mmscmd.

The appointment of Indian Foreign Service officer Talmiz Ahmed as additional secretary (overseas operations) in the petroleum ministry was also approved.

The Cabinet also cleared the setting up of the phase-II of the tax information network (TIN) at an estimated cost of Rs 101.25 crore over three years.

Of this, Rs 68.75 crore will be paid by the government, while the rest will come from deductors (banks and companies which use the service) as uplinking fee.

The government intends to put in place a differential fee structure for companies depending on the number of tax payers. The annual outgo during the three fiscal years starting 2005-06 is estimated at Rs 33.75 crore.

The NSDL would get a minimum Rs 88.8 crore, of which Rs 56.25 crore would be paid by the department of revenue, while Rs 32.55 crore realised from the deductors, an official release said.

The decision to set up the tax information network was announced in the 2003 Budget.

In Phase-II, collation of data on tax deducted at source and tax collected at source, returns for eventual dematerialisation of TDS certificates, computerisation of annual information returns (AIR) of high value transactions and integration of information relating to processing of returns of income will be taken up.

The Cabinet also approved an additional Rs 602.66 crore for the Indian Council of Medical Research for the remaining period of the Tenth Plan to enable it to undertake focused research in identified areas.

The council has already incurred Rs 226 crore during the first two years of the Tenth Plan out of the Rs 828.66 crore cleared by the cabinet committee on economic affairs.

"Approval of the Tenth Five-Year plan programme of IMCR will result in the augmentation of its institution and research centres," said an official release.

ICMR is contemplating a health research policy during the Plan period to complement the national health policy.

The signing and implementing of an agreement between India and Croatia, entitling diplomatic and service passport holders from both countries to visa exemption, was also cleared today. The agreement will be signed on February 22, during the visit of the Croatian Foreign Minister to India.

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More decisions

Tax reforms
Second phase of tax information network okayed at estimated cost of Rs 101.25 crore over three years.

Medical R&D
Rs 602.66 crore plan for the Indian Council of Medical Research to undertake focused research in identified areas