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REGISTERED No. D-222

The Gazette of India

PUBLISHED BY AUTHORITY

No. 36] NEW DELHI, SATURDAY, SEPTEMBER 5, 1970 (BHADRA 14, 1892)

(Separate paging is given to this Part in order that it may be filed as a separate compilation

(NOTICE)

The undermentioned Gazettes of India Extraordinary were published up to 15th July 1970 :

(No. and Date)

(Issued by)

(Issue No.)

(Subject)

3

4

1

2

Nil

Copies of the Gazette Extraordinary mentioned above will be supplied on indent to the Manager Publications, Civil Lines, Delhi. Indents should be submitted so as to reach the Manager within ten days of the date of issue of these Gazettes. 211GI/70

(695)

(CONTENTS)

PART I—SECTION 1 .—Notifications relating to PART II—SECTION 3,—SUB,-SEC. (ii) —Statutory Non-Statutory Rules, Regulations, Orders Orders and Notifications issued by the and Resolutions issued by the Ministries Ministries of the Government of Tndia of the Government of India (other than (other than the Ministry of Defence) and the Ministry of Defence) and by the by the Central Authorities (other than Supreme Court

695 the Administrations of Union Territories) 3851

P A R T I - S E C T I ON 2,-Noliflcations regarding PART I I - S E C T I ON 4 - S t a t u t o ry RU les and

561 Appointments, Promotions, Leave etc. of Ordeis notified by the Ministry ot Government Officers issued by the Minis- Ucrcnce tries of the Government of Tndia (other PART III—SECTION 1 .—Notifications issued by than the Ministry of Defence) and by the Auditor General, Union Public Sor- thc Supreme Court 1063 vice Commission, Railway Administration, High Courts and the Attached and Sub- PART I—SECTION 3.--Notifications relating to ordinate Offices of the Government of

India .. .„ .. ,, .. 997 Non-Statutory Rules, Regulations^ Orders and Resolutions issued by the Ministry of PART H I - S E C T I ON 2.-Notlflcations and Notice's Dcience — issued by the Patent Offices, Calcutta., 343 PART I—SECTION 4.—Notifications regarding PART III—SECTION 3.—Notifications issued by Appointments, Promotions, Leave etc. of or under the authority of Chief Commis- Offlccrs issued by the Ministry of Defence 1093 sioncrs .. .. .. ... .. ._ PART 11-SECTION l.-Acts, Ordinances and P**T HI-SECTION^.-Miscellaneous Notiflca- t l o DS deluding Notifications, Orders, Advertisements and Notices issued by Rrmiiationi — K C"U '

PART II—SECTION 2.—Bills and Reports of Sclett Statutory Bodies 809 Committees on Bills — PART IV—Advertisements and Notices by Private

PART 11-SECTION 3 , - S U B - S E C. (O-Genernl S.a- Jp^Nole "^ ^^ ^^ " ~ J"

ending 29th August 1970 „ .. _ 1485 tutory Rules (including orders, bye- SupPLEMENr No. 36 laws etc., of gener.1l character) issued by Weekly Ep^cmiological Reports for week the Ministries of the Government of India (other than the Ministry of Births and Deaths from Principal diseases (n towns with a population of 30,000 and Defence) and by Central Authorities over In India during week ending JHh (other than the Administrations of Union Territories) _ _ _ __ 3093 August 1970 _ _ U Oi

PART I—SECTION 1

[Notifications relating to Non-Statutory Rules, Regulations, Orders and Resolutions issued by the Ministries of the Government of India (other than the Ministry of Defence) and by the

Supreme Court]

MINISTRY OF FINANCE

(Department of Economic Affaire)

New Delhi, the 16th July 1970

Nu. A'. (13 )-A'.SV7<).—"Ihe Central Government hereby directs that with effect from 1st August, 1970, 7-Ycar National Savings Certificates (II Issue)—Bank. Series, 7-Year National Savings Certificates (111 Issues)—Bank Series ami 7-Year National Savings Certificates (IV Issue)—Bank Scries, issued by the Government of India in terms of Ministry of. Finance (Department of Economic Affairs) Notification No. GSR 443 dated the 14th March, 1070 will be available for sale through agents appointed under the Authorised Apcnts (Bank) Scheme who will be paid a commission of 1J per cent. How- ever, -where an investor wishes to tender an application direct Bt the receiving office he will be free to do so.

P. N, MALAV1YA. Undci Secy.

MINISTRY OF FOREIGN TRADF,

New Delhi, the ]5ih July 1 9 70

RESOLUTION

No. 29/2/b9-Tex.(A).—The name auainsl S. No. 8 of the Ministry of F.T. & Supply Resolution No. 2

ORDER

ORDERED that Lhe Resolution be published in the Gazette of

India.

ORDERED that -i copy of this Resolution be communicated to all State Governments, all Union Territories, All Ministries of the Government ot India, Prime Minister's Secretariat, the Private and Military Secretaries to the President, the Planning Commission. Cabinet Secretariat, the Comptroller and Auditor General of India, Central Board of Direct Taxes, Central Board of Excise and Customs, Lok Sabha and Rajya Sabba Secretariat, Library of Parliament and the Textile Commis- sioner, Bombay.

lhe Uth August 1970

RESOLUTION

No. 29/2/fi9-/'c.-\M),.—The Government of India have decided (o appoint Chowdhary Ram Sewak, Deputy Minister, Ministry of foreign Trade as Vicc-Chairman of the Cotton I cxtiJes Consultative Board as re-constituted by their Resolu- tion No. 29/2/69-Tcx(A). dated the 4th July, 1969, publish- ed in the Gazette of India, Part T, Section 1 on 4th July 1969.

ORDER

OBLII RED that the Resolution be published in the Gazettee

of India.

ORDI iihi> that a copy oC this Resolution, be communicated to all State Governments, All Union Territories, all Ministries of the Government of India, Prime Minister's Secretariat, the Private and Military Secretaries to the President, the Planning Commission, Cabinet Secretariat, the Comptroller and Auditor General of India, Central Board of Direct Taxes, Central Board of Excise and Custom, Lok Sabha and Rajya Sabha Secretariats, Library of Parliament and the Textile Commissioner, Bombay.

II. K. BANSAL, Dy. Secy.

Nni Delhi, the 24/// July 1970

RESOLUTION

R.I.F'OK.T OF THE P. C. BOROOAJI COMMIITEE ON THI:. TEA INDUSTRY

NIL 2( M )-Flniu(A)nO{BC).—By a resolution No, F. 28(63) Plant (A)/f>6, dated the 9th January, 1967, ft>e Government jf India in the late Ministry of Commerce set up a Committee under the Chairmanship of Shri P. C. Borooah. to undertake a comprehensive review of the economic condi- tions and problems of the tea industry in all its aspects and make recommendations regarding the measures required to be taken for its appropriate development on the right lines dur-

ing the Fourth Plan period. The leniis "f the reference of the Committee were as under :—

(a) lo look into the question of devising ways and means lor Ihe (quantitative as well as qualitative increase in production (such as through extension of acreage and improvement of yields per hectare) levels required to meet the rising demand for con- sumption whether al home or abroad;

(b) to look into the urgent problems of marketing, financing and research that are facing the industry and which may he standing in the way of its appro- priate development; and

(c) lo look, into any other aspect which in the Com- mittee's opinion is germane to the broad purpose to this enquiry.

2. In November, 19h8, Ihe Committee submitted to Gov- ernment its report, The recommendations ramie in ihe report have been under careful consideration of Ihe Government.

3. The recommendations of the Committee listed in Anncxure I to the Resolution have been accepted and arc already in varying stages of implementation.

4. The recommendations of the Committee listed in Anncxure II to the Resolution are accepted subject to the re- marks appearing therein against each.

5. The recommendation Jistcd in Annexiirc III has been

accepted in principle.

6. 'I he tecommendations or observations of the Committee listed in Annexure IV have been noted hy Government and those appearing in Annexure V have not been accepted.

ORDER..

ORDERED that a copy of the Resolution be communicated to all concerned and that it be published in the Gazette of India lor general information.

K. S. RAGHUPATHI, Jt, Secy.

19. Research findings, at Laboratory level, on instant t*a arc encntn aging. Further experiments should therefore, be undertaken on a pilot scale for further development of the (Paras 2.45, 2,46) process.

20. 'I he entire subject should be studied in greater depth lo decide on the course to be taken to promote an advan- tageous reaction in Ihe international price level.

(Paras 3.24—3.26)

27. Inlernalional prices cannot be raised by introduction of fiscal levies such as export duly, .is such impo'ts are taken into account by the buyer while determining his bid at the auctions. If Ihe export duty is abolished or reduced, the cx- poi t buyer will have more flexibility in operation.

(Paras 3.31. 3.32)

28, The Ion Hoard should not he saddled with the respon- sibility of Inking over the Libyan warehouse. (Para 3.34)

.11. F>:ioil duly charges do not affect the international pi ice of tea. J"he existing export duly on tea should be entirely abolished to maintain our export and foreign exchange ear- (Paras 3.54—3.60) nings.

34. There is no justification for the imposition of an ex- port duty together with an excise duly, which is not rclunded on exports on an export-oriented industry. (Para 3.64)

41. The Committee suggests that independent surveys should he Lorniucted. jointly with other producing countries anil with Ihe help of the trade, to assess the effectiveness of uonciif promotion where they are being undertaken.

(Para 3.114)

42. Ihe major proportion to tea purchased abroad is bought On consideration of quality and price. Constant improvement of the quality of our leas and our ability to offer them at competitive prices are, therefore, of utmost importance. It is neeewiry that ihe direct link between buyers abroad and the Indian leu industry should be developed and strengthened in countries where uninational campaigns is undertaken.

(Paras 3.118—3.120)

ANNEXURE-l

RlXOMMENll.MIONS Ot THE P. C, JBOHOOAH C O M M I l l b i; ON THE TEA INIM'SI'MliS WHICH HAVK BEEN ACCENTED AND ARE IN VARIOUS STAGES OF IMPLEMENTATION Rcfercmc to S. No, in the Summary of Conclusions and Recommendations of the licpoit of P, C. Boroonh Committee 3. The general aim should be to undertake new plantings at the rate of lr,c of the total area annually, in the form of replanlinys, replacements and/or extensions, appending on individual needs, with good planting material. (Para 1.7)

6. The Committee recommends that supply of fertiliser should be ensured to the industry to reach estates by the end of December al the latest. (Paras 1.22 & 1.24)

8. The Committee endorses the recommendations made at the Tea Seminar (June 1967) lhat the Central Government should persuade the concerned State Governments to work out suitable schemes for adequate supply of water to tea estates for the purposes of irrigation. The Stale G"vts. should also undertake surveys on the possibilities of harnessing sub- (Para 1.34) soil water in tea estates.

10. There is a case for giving replantation subsidy to other parts of India also. The subsidy vary from place lo place depending on topographical conditions. The subsidy for re- planting should not be a charge on the industry

(Paras 1.43 &. 1.45)

12. Special reliefs should be considered for gardens in Darjeeling in view of Ihe recent disaster that has befallen the industry in that District. (Paras 1.48 & 1.52)

15. Producers of green tea .should be encouraged lo modify their manulactnring methods so that they are in a position to offer IVforocco the type of lea acceptable to them.

(Para 1.67)

16. The excise duty on green tea produced in Excise Zone I should be applicable to all producers of green tea in Tndia.

(Para 1.68) •13. We should not be content with generic promotion, and the outlay on uninational promotion should be substantially augmented without prejudice to the present expenditure on generic promotion. Such campaigns must be conceived in terms of five or ten year periods as we cannot expect results in one or two year's time.

(Para 3.122)

4?. The Committee recommends that periodical market surveys should be undertaken to determine the line of action and to evaluate the operation of the schemes. Necessary funds should be made available to the Tea Hoard in terms of foreign exchange for the production of publicity materials in countries (Para 3.132) abroad.

56. The export duly reduces Ihc sale realisation of the pro- ducer and thereby adds lo the gross cost of production. The committee recommends a total abolition of export duty.

(Paras 4.22—4.24)

fifi. Government should take steps to ensure timely release of adequate funds for the operation of the Tea Board Schemes and also review the corpus in time. (Para 4.74)

72. The Hoard so constituted should be recognised by Govt. as an expert body and given greater weight and prompt attention to its views and recommendations, in matters relating (Para 5.19) to the tea industry,

73. Thi: tenure of the Chairman. Tea Board should be for at leasl a period of 3 years with provision to extend it hy another 2 years.

(Para 5,21)

76. Two new standing Committees' viz., the Tea Develop- ment Committee and the Research Committee should be set up in view of the importance of development and research in ihe context of our plan targets. (Para 5.27)

77. The Committee endorses the view of the Lstimates Com- iniltee that the Board may not be in a position to undertake effective welfare measures for (he lea workers in years to come and recommend thai the Board's expenditure on this account should be gradually reduced. It should confine iticlf to the General improvement and development of the industry.

(Para 5,29—5.30)

ANNEXURE-H

RLCOMMI.NQAIIONS or MIL P. C, BOUOOAII COMMLITH- ON Tin INDUSTRY WHICH ARE ACCI'.PII-.IJ SUHJECI TO Tut REMARKS

APPEARING AGAINST I'.ACH

Reference hi S. No. in the summary of Conrliifions uiul Recommendations of the

Report of the P. C. liornoah Committee

Reconuneiultniiins

Remarks

2. 41.6?; nl' the total tea area as on 31-3-66 is in the 21 — 50 year aye uroup while another 31.4'r consist ol bushes which arc over 50 years old. These need to he replaced soon.

(Para 1.(>)

,i. The Committee is of the opinion that :—

(a) Resumption of any leu garden land suitable for growing tea is not in the inteiesL of national economy.

Ih) It us ivJt deshahlc to lay down arty specilic rclalion- ship between land under tea and that not under lea within n tea Brunt.

(c) Tea listales should be allowed to retain all land suit- able for expansion and also allowed to retain suffi- cient land necessary for its ancillary purposes.

(d) Resumption of land within tea crants is not desir-

able; anil

(c) Recommends measures to he taken by Government, Central and States. (Paras 1,17 & LIB)

7, Pesticides and weedicides should be freely available in the country so that supplies can be obtained by the industry (Paras 1.27 & 1.29) as and when required.

l>. The production ot Darjeeling quality tea area Iras been declining since I960. With 5 1% of the district, teas— over 50 years of age. classed as uneconomic and another 33Cr in the 21—50 years a&~e group, replanting is urgently needed. Nearly hall the estates in the district have been running at a toss or at a marginal profit. The Committee, therefore, recommends, u subsidy tit the rale of 3.000/'- per acre and additional Ks. 1,000 per acre for loss ot revenue from crop, as an incentive to replant and replace uneconomic (Paras, 1.38 & 1.40-41 ) areas.

11. The ceiling allowed by Jncomc Tax Authorities for the purpose of development allowance, should be revised from Rs, 10.000 and Rs. 12,500 per hectare for plains and hill.¹, gardens to Rs. 12,500 and Rs, 15,000 per hectare respectivelv

(Para 1.48)

have been suggested.

13. To rehabilitate the uneconomic tea estates measures (Paras 1,56 & 1.57)

14. 1 lie Madias Government's Scheme has shown lo be a promising line of approach for the small growers' problems. It should he further supplemented by an adequate field advi- sory service. A careful examination of the Kenya Scheme by the 1 ea Board may, however, be worthwhile

(Para 1.631

20, Adequate lahoialary equipment on which progress of research depends arc lacking in the two research centres, Positive financial support for tea research is required if we expect our tea industry to hold its own in the present highly competitive world market. Our scientists are at a distinct disadvantage in comparison with those of our Iwo main com- petitors. The Committee, therefore, recommends that not only should more funds, and also adequate foreign exchange be provided for research, but the procedure for imports, wherever necessary, should be streamlined to make it possible to obtain urgently and easily from abroad, the required (Paras 2.44—2.48) equipment in time.

21. T.R.A. which is partly financed by Government suffers from the inability to forecast their income from year to year and this is a serious handicap when planning must be done on a long-term basis. This can be solved in two wavs by (a) a block grant, or (b) a levy on the industry. The Committee prefers the former but iC the latter finds favour with the Government, the entire net proceeds should be utilised exclu- sively for tea research. UPASI's case may require to lv (Paras 2.50 2.54) dealt with differently.

Accepted with the modification that the areas under tea which need to be replaced will be in phases for the present. Govt. has already agreed for the replacement of bushes which arc more than 30 years old, if they require replacemnt.

Accepted in principle, that land which is actually under lea cullivaliorr is not lo be icsumed.

In respect of other lands trot under tea. the recommenda-

tion will be commended to State Governments.

Accepted Steps will be taken for speedy licensing of

sMiimmoicnc production.

Accepted in piinciplc. Quantum of. subsidy in the Oarjce- hng area has to be examined further and decided.

Accepted in principle. Necessary amendments to law will

be considered by Government.

The general observations of the Committee have been noted and specific proposals if submitted by the Tea Board will lie examined.

Such assistance for co-operative tea factories has been

agreed to. Kenya scheme is not suitable lo India.

1 he importance ot adequale laboiatoiy equipments for research work is recognised. Accordingly the recommenda- tion is accepted in principle As regards imports, whatever policy is> followed by the C.S.I.R. may be followed by the Tea Research Institutions.

' 1 his is under separate consideration of a Committee the

i cport of which is being examined separately.

Reirwiki

Rccuirimfiuhitions

22 A •mull scientific consultative Committee of experts should be set-up with scientists and representatives of the producers for interchange of ideas, reviewing and evaluating the work done with u view to co-ordinating research,

(Para 2.58)

2}. 'lea has been sold by auctions ever since it WHS planted in North East India. It is preferred by producers and it pro- vides the best available medium of sale. But the producers loose heavily on sampling and, therefore, the procedure of sampling should be streamlined to avoid all possible wantage. (Parns 3 1—3.h)

2¹). I'oil I_II;IIL:CS have been steadily rising both ;it Calcutta and Cochin. Any further increase will make tea exports more costly and difficult and may induce shipping lines to (Para 3.39) by-pass Indian ports.

3(1. It is necessary to expand warehousing, berthing and other facilities at the Cochin port. It is worthwhile to examine the possibilities of Kandla port as an alternative outlet for direct shipment teas lor the U.K.. in view of the difficulties at Calcutta port. (Paras, 3 41 & 3.42)

31. As Ihc percentage of pallcstiscd shipments may be expected to grow substantially in the next few years, the Railways should give immediate attention to the problem of movement of palletised teas on wagons. Government should iilso give necessary assistance to all ports concerned with tea shipments to equip themselves with modern facilities to handle (Paras 3,45—3,49) palletised shipments.

32. In order to improve exports of tea to various markets abroad shipping opportunities, should in particular improve for Australia, New Zealand, Ireland and (he Netherland.

(Paras 3.50—3.53 I

3X. Tea bags are increasing in popularity in sophisticated countries and may cafh-on in Tndia. Their production in India should be encouraged for export and home consump- tion.

(Para 3.100)

44 At least V/r> oi' the total foreign exchange earned from the export of tea should be set aside for all tea promotion. For efficient control of promotional activities a small Central Committee may be set up with four members including offi- cials and representatives of (he trade to sanction the promo- tional schemes, and once they have been approved, funds in- cluding foreign exchange should automatically be released for their effective operation. We are gratified to learn that the Administrative Reforms Commission has also made a similar recommendation. (Paras 3.130—3.131)

4d. In countries where intensive promotion is taken up, it may be necessary to have campaign and public relations officer to maintain liaison with packers distributors, consu- mers, etc. the press and Journals. Generally speaking, pro- per market surveys should be carried out with the help of consultants and executed with Ihc help of expert advertising and public relations agencies. This is necessary for a highly organised and sophisticated market. (Para 3.135)

44, There has been, a continuous decline in the profitability nf the tea industry The rale of new plantings and replantings IIHS not been al the desired level because the industry has not been allowed lo retain sufficient surplus to plough back". The policy of taxation followed by the Central and Stale Govern- ments together with the various statutory obligations imposed on the industry is mainlv responsible for the decline in the profitability.

(Paras 4.14 k 4,15)

55. 7he frequent upward revision of excise duty has be- come a sti'a'n on the working resource* of producers and could be overcome if the Honded warehouse system is extend- ed to tea. Government should consider this sympathetically.

(Para 4.21) 1 his is under consideration of a Committee the report of which is being examined separately.

Accepted in principle. Tea Board should pursue the matter with pioduccrs and exporters.

VVhile increases in port charges ai\ tea cannot be completely ruled oul, the Ministry of Shipping and Transport will take into account the likely impact on exports of tea while- con- sidering Miiy revision in the port charges on tea exports.

So far as Cochin poi t is concerned adequate facilities e.\isb. Steps are being taken to augment the berthing capa- cily at the port and forklifts have been provided.

2. As regards Calcutta, difficulties experienced at present ilue to draft restrictions are expected to be overcome with the commissioning of Farakka Barrage and the Haldia Dock system in ihe near future. Calcutta is the natural outlet for exports of tea produced in the eastern region and it is not normally desirable to divert this traffic all the way to Kandla. However, in exceptional circumstances the Port of Kandla is in position to provide the necessary facilities for the export of tea.

The development of transport facilities by the concerned Department does not cater to large scale adoption of palletised consignments, but the container service it is anticipated would fulfil the need.

Regular direct sailings to Dublin and Rotterdam are alteady available from Cochin, The Shipping Corporation of India also provides bi-monthly service from Malabar to Australia and they intend shortly to increase its frequency to one sail- ing a month, they have plans to extend this service to New Zealand in the near future.

The need for promotion of tea bags for export is accepted.

Tlici'e is no need to have a separate ceiling for publicity. Any reasonable proposal for expenditure on publicity will be considered On merits.

Accepted and concrete schemes will be considered on merits.

The policy of taxation followed by the Central and State (iovcrnments is based on certain overall considerations and in the national interest In the context of the prevailing eco- nomic conditions. The policy is regularly reviewed and suitable changes are effected taking into consideration the general conditions of major industries. Thei decline in the profitability of the tea industry cannot be attributed to taxa- tion policy of the Central and State Governments.

The setting up of bonded warehouses will be helpful to the 'lea Industry. The incidence of excise duty cannot be con- sidered in, isolation and in 1970-71.

Budget overall relief has been provided to the industry.

Remarks

Recorrwifiitlutions

57. Jl i". necessary to give some relief on Ihc Kxcisc duty also al least in the current year pending reclas"ification of (Para 4.20) Excise '/.one suggested

5H. Ihc keiala Siiles Tax is a heavy burden on the industry in Ihc South. The West Bengal Sales Tax Act provides for exemption from payment of Sales Tax subject to certain con- ditions and ut the first point of sale there is no sales tax liability. If the Kerala Government adopted a similar pro- cedure it would lessen the burden on the producers and would ulso encourage them in support Cochin auctions.

(Para 4.28-4.29)

59. The Cummiltee endorses the view of the Tea Finance Committee that the rate of tux on the agricultural portion of the composite income should not exceed the rate of tax on the non-agricultural portion of it, (Para 4.36)

60. The I lousing Subsidy Scheme has been of very little practical help to the industry. Unless Government of India makes available funds for these loans and subsidies immedia- tely it will not be proper for it to expect the industry to fulfil its statutory obligations.

(Para 4.4f>)

til. 'Ihc cost of construction of labour houses in the plan- tations should be allowed as a revenue expenditure for assessment of income tax, the Committee also feels that the statutory late of buildinc at 8% should be reduced to 49c.

(Para 4.47)

62. The Government should take over the responsibility of supplying foodgrains to tea garden labour and arrange to dis- tribute them through fair price shops as in South Tndia. Alternatively, Government should themselves set up rationing centres in the tea estates for such distribution. (Para 4.53)

<>3. The industry ha.s not been able to build up reserves because of rising costs, rising tax liabilities and increasing statutory obligations, combined with the decline in prices in the international market. A reduction in taxation and fiscal reliefs can help the industry to build tip reserves! for develop- ment.

(Paras 4.57-4.58)

65. The Schemes of financial assistance operated by the Tea Board are preferred by a larger section of the industry as the loans carry a lower rate of interest. The Committee has some recommendations regarding these schemes.

( Paras 4.63—4.73 )

67. The industry should he given a depreciation allowance on its field assets, the tea bushes, on the principles followed in rubber plantations. Taking Rs. 10,925/- the average cost of the planting ns the replacement cost per hectare the average economic life of lea a" 40 years and an average yield of 1,087 k;i. per hectare for India (the average for 1965-67), th; depreciation reluted to output works out to Rs. 25. per 100 k^. of tea produced the depreciation based on this calculation should be allowed as a deduction for Central and agricultural income-tax purposes. This depreciation allow- ance which should be in addition to the existing development allowance should be funded into a separate account and used for development purposes Only. (Paras 4.77—4.81 )

fi8. Should the depreciation allowance be acceptable to Government, the replanting subsidy scheme recently announc- ed, need not be continued beyond a period of 10-15 years (Para 4.821

f>9. Tht concessions allowed under the new Section 35C of the Indian Income Tax Act should be extended to the lea (Paras 4.83—4.8^) industry.

The setting up of bonded warehouses will be helpful to the Tea Industry. The incidence ol excise duty cannot be con- sidered in isolation and in 1970-71 budget overall relief has been provided to the industry.

The question, is under review in consultation with the Stale

Government.

The nhieiuicion of the Committee has been passed on to

State Governments.

1 he matte' h:is ht'Cn taken up for consideration and funds

are heini; provided.

The suyee'.tiun to ticut expenditure on labour houses as revenue expenditure Ls not acceptable to Government, 'Ihe question of reduction in the statutory rale of building is already under consideration of the Labour, Employment & RehahiliUaion Ministry.

No- difficulty ha-, come to the notice of the Tea Board or Government but the matter has been commended to "Stale Governments.

Fiscal measures have already been introduced in the Budget of 19711-71. Taxation on Tea Industry cannot be considered in isolation.

While Government arc sympathetically considering schemes lo improve profitability of tea estates from time to time, it will not be possible for Tea Hoard to extend guarantee in regard to short-term requirements for the unprofitable tea cslales.

They need fuither consideration.

The existing arrangements already allow for the cost of replantation to be treated as revenue expenditure. The pro- posal of allowing depreciation on tea bushes is not acceptable as it would not be practicable to work out a system of depre- tiation allowance for tea hushes analogous to that prescribed loi business assets like plant rind machinery.

Do

The Concession is available to the tea industry if the asse'see is a companv and it satisfies the conditions prescribed under Section 35C of the Income Tax Acl, 1961,

Recommendations

Remarks'

79. Government should take an immediate decision regard- ing internal promotion to gainfully employ the Board's Held staff. Alternatively it should take over this staff and relieve Ihc Board of an unnecessary burden. (Paras 5.34—5.36)

80. The Board's regional office at Cochin and Coonoor may he merged into one and the necessity of having an office at Dharamsala may he reviewed. (Paras 5.38-?.30)

ANNHXURE-IIT

1 he Board has already taken steps lo employ the surplus

staff

Scpaiatc offices at Cochin and Coonoor are necessary and

Dharmsala office hfis been shifted to Palmpur.

Reiomim'r.dation.s- of the P, C. ISornoah Committee on Tea

Industry which have been accepted in principle

18. I he problems of research in tea have grown both in magnitude and complexity but resources [or research have not kept puce and are now wholly inadequate. Research organisations should be encouraged and financially supported to intensify their present work.

(Para 2.43)

ANNEXURE-IV

4.S. The Committee welcomes the recent Tndo-Ceylon talks and feel that this co-operation will be in the best interests of the tea industry in the two countries. It would be desirable wherever possible to eliminate unnecessary competition in the (Para 3.137) field of export promotion.

50. The prices at unctions do not bear any relation to the taxes imposed by a producing country as the taxes have to be paid by the producer. Unlike other industries, tea is not able to pass on the burden of taxation to the buyer. Thus the taxes imposed on tea arc taxes on production. (Para 4.16)

51 Although tea is an export-oriented industry, the sales for internal market bear a lesser burden of tax than those for (Para 4.16) export.

Recommendations of the P. C. Huroocdi Committee on Tea

Industry which have been noted by Government

Reference to S. No. in the Summary of

Conclusions and Recommendations of tlie

Report of the P. C. Boroocih Committee,

taken to be 1,250 m. kg,

1. The world tea production in 1975 hns been tentatively (Para I.I) 4. The industry is faced with problems in regard to availa- bility of suitable land for extensions. (Para ].8)

6. The price of fertilisers fixed by Government from time to time shows an upward trend and would strongly urge thai every effort should he made to hold the price line and (o ensure that the industry does not have to bear a heavier (Para 1-24) burden.

17. Both agricultural and industrial research are necessary

to brine about improvement in the quality of made lea.

(Para 2.6)

24. Taking advantage of buyer's market in London pro- gressively created by an over-supply, the U.K. buyers, who nave the largest single influence on the price level in the inter- national market, have discounted their own rising costs from their bids. This- has resulted in the progressive lowering of (Para 3.21) auction prices.

25. The fall in prices is thus attributed to an easy supply position and over production has balanced consumption at (Para 3.23) the sacrifice of prices.

52. The Zonal excise duty paid bv the producers at the lime tea is cleared from the factory, cannot be passed on to the buyei oi consumer and is not refunded on tea exports either. "

(Para 4 17)

53. During the last decade, while production has risen by about lQT the revenue from excise duty has increased by 4 2 9 'P

" (Para 4.19)

54. Although the basis of the existing zonal clarification system (for excise duty) appears to he correct in theory, there are many anomalies. The Committee is of (he opinion that a proper study should be undertaken at an early date.

(Para 4.20)

70. The Tea Board is doing very useful work in assisting the industiy in various ways. It acts as a useful channel of communication between the industry and the Government. To make it an even more efficient body the Committee has some recommendations to ofler. (Paras 5.15—5.17)

Kl, The Board should have absolute control over all its •laIT and activities, particularly in respect of its offices abroad.

(Para 5.41)

ANNEXURF.-V

Recommendation.', of the Borooah Committee on Tea Industry

which have not been accepted by Government

35. The emergence of bilateral trading, taken together with the decline in the export/production ratio has inevitably meant that exports to traditional markets have declined.

(Para 3.71 ) Reference lo S. N<>. in the Summary of Conclusions u d Recommendations of the Report of the P. C. Horooah Committee.

36. 'I he position in respect of some of our larger markets

for tea have been examined. (Paras 3.73—3.11)

37. It is doubtful if a Government con-trolled corporation or u consortium of producer will be able to effectively assert itself in the sophisticated markets of the world. Such an organisation, however, if working in co-operation with deve- loping countries may give higher returns and also assist in expanding these niaikeh for tea. (Paras 3.98-3,99)

39. The total quantity ol tea needed for internal consump- tion by 1970 will be 176 m.kg. which with a production target of 420 m.kg, means that 244 m.kir. will be available (Para 3.101 ) for export.

40. The Committee would not recommend a curtailment of internal consumption. The Committee is of the view ih:11 a growing internal market is vital for the health of the tc* (Para 3.101 & 3.IWI industry in India,

47. The tea trade could do more than they have done in the past for promotion and sale of Indian tea abroad. Government should provide special financial incentives for the (Para 3.136) export of tea.

71. The membership of the Board should be restricted to 30 in number, with persons of high standing in the fields o[ industry and ti ide and also public men known to he genuinely interested in (he good and well-heinu of the tea industry,

(Para 5.IS)

74. The Board should have a permanent Deputy Chairman and appointment to this post should be left to the Board for recruitment by open selection. (Paras 5.22—5,24)

75. In (he present circumstances', there is no need for the

two licensing committees.

(Para 5.26)

7K I he Committee considers that the present system of allocating lunds to the Board through the consolidated funds is not a satisfactory method. It recommends that the Cess now levied, should continue to be collected by Government, but the proceed⁰ less collection charges should be credited to the Tea Fund account in full to be spent in accordance with the sanctioned budget. This would enable the Board to have a clearer picture of availability of funds to plan ahead for long teim projects. " (Paras 5.31—5.33)

24. Shri Brahm Prakash, Director,

MINISTRY OF PETROLEUM & CHEMICALS ANO

MINES & METALS

(Department of Mines and Metals) New Delhi, the \lth August 1970 RESOLUTION

ADVISORY COUNCIL ON NON-FEKROUS METALS

No. 13(7)/7O-Mc/J.—Consequent on the expiry of the term of the First Advisory Council On Non-ferrous Metals, which was constituted vide the erstwhile Ministry of Sleel Mines & Metals (Deptt. of Mines & Metals) Resolution No. 4(54)Met-67 dated the 30th May, 1968, it ha8 been decided to re-constitute the Advisory Council. The composition of the Council will now be as follows :—-

Metallurgical Division, Atomic Energy Department, Bombay.

25. Shri R. K. Sethi,

Managing Director, National Industrial Development Corporator!, New Delhi.

26. Shri K. L. Nanjappa,

Development Commissioner, Small-Scale Industries, New Delhi.

27. Industrial Adviser (Metals) D.G.T.D., New Delhi.

28. Industrial Adviser (Electrical),

D.G.T.D., New Delhi.

29. Director, General,

Chairman

1. Minister ot Ket. & Chemicals and Mines & Metals.

Geological Survey of India, Calcutta.

Members

2. Mini ter or SLdte in the. Min. o£ PC&M&M (Mine:, &

Metals).

3. Secretary, Deptt. of Mines & Metals. 4. Shri T. N. Lakshminarayanan, Jt. Secy., Deptt. of

Mines & Metals,

5. Dr. P. Dayal, Senior Industrial Adviser, Deptt. of M&M. Shri 3. S. Kothari, President, Hindustan AI, Corpn. Rcnukoot, Mirzapur (UP),

7. Shri K. K. Bhasin, General Manager, Aluminium

Corpn. of India, Calcutta.

K. Shri P. F. Nugent, General Manager and Director,

Indian Copper Corpn., Ghatsila. 9. Chairman-CMm-Managing Director, Hindustan Zinc Ltd., Udaipur. 10. Chairman-wm-ManaKing Director,

Bharat Aluminium Co. New Delhi.

11. Chairmam-CHm-ManaginK Director,

Hindustan Copper Ltd., Khctri.

12. Shri P. M. Menon, Technical Adyitier, Bharat Aluminium Co, New Delhi.

13. Shri D. D. Wood,

Eyre Smelting Co. Ltd. Calcutta.

14. Shri P. R. Kamani, Managing Director, Kamani Metals & Alloys Ltd.. Bombay

15. Shri C. J. Shah,

Technical Consultant, Multimetal Ltd., Kota (Rajasthan).

16. Dr. D. P. Antia, Deputy Managing Director, 30. Controller, Indian Bureau of Mines,

Nagpur.

31. Dr. L, R. Vaidyanath,

Manager, Indian Copper Information Centre, Calcutta.

32. Dr. M. N. Parthasarathy,

Indian Lend-Zinc Information Centre, Calcutta.

33. Shri G. D. Binunl,

President, Indian Non-ferrous Metals Manufacturers Association, Calcutta.

34. A representative of the Federation

of Vndia Chambers of Commerce & Industry, New Delhi.

35. A representative of the Planning

Commission.

36. A representative or the

Ministry of Irrigation and Power,

37. A representative of the Ministry

of Industrial Development, Internal Trade and Company Affairs.

38. A representative of the Ministry of Communications (P&T Board).

39. A representative of the Ministry of Defence.

40. A representative of the Ministry of Railways,

(Railway Board). New Delhi.

41. A representative of the Ministry of Finance.

Memher Secretary

'Inion Carbide (India) Ltd.. Calcutta.

17. Shri F. A. A. Jasdanwalla,

Technical Director, Indian Standard Metal Co. Ltd. Bombay-1,

18. Shri S. Vishwanathan,

Director (Research) Tata Iron & Steel Co., Jamshcdpur.

19. Shri S. K. Chaudhury,

Federation of Small Industries of ludiu. New Delhi.

20. Shri B. L. Raj^hariu,

Chairman, Engineering Expoit Promotion Council, Calcutta.

21. Shri C. R. Dass,

General Manager, Minerals <& Metals Trading Corporation, New Delhi.

22. Dr. V. A. Allekar.

Director, National Metallurgical Laboratory, Jamshedpur,

23. Shri B. S. Krishnamachar,

Assistant Director-General, Indian Standards Institute, New Delhi.

42. Shri A. Krishnan, Director, Deptt. of Mines & Metals.

2. The term of the above members of the Council will be

for a period of two years.

3. The non-official members of the Advisory COunoH will be entitled to draw T.A. for the journeys to be performed by them by road/rail for attending the meetings of the Council in accordance with the instructions contained in the Ministry of Finance (Department of Expenditure) O.M. No. F. 6(25)E-TV/59, dated 5-9-1960, as amended from time to time. For the purposes of T.A., D.A., etc. the non-officials will be treated as on par with Government servants of the first grade and they will be paid T.A. in accordance with the revised rates of travelling allowance as laid down in the Ministry of Finance O.M. No. 5(44)E-lV(B)/62, dated 14-8-62, as amended from time to time.

ORDER

OROT.HED that this Resolution be communicated to all the State Governments, the several Ministries of Government of India, Prime Minister's Secretariat, Cabinet Secretariat, Par- liament Secretariat, the Private and Military Secretaries to the President, the Planning Commission, the Comptroller and Auditor General of India, the Accountant General, Commerce, Worts & Miscellaneous.

ORDERED also that this Resolution be published in the

Gazette ol Indiu for general information.

32. A representative of the Ministry of Steel & Heavy

CORRIGENDUM

No. 3(6)/69-M"./.—The following corrections may he made in the Government Resolution No. 3(6)/69-Met.I, dated the 12lh June J970 published in the Gazette of India Extra- ordinary Part I, Section. 1 on 12th June 1970 :—

(1) In line 3 on page 529. the word "paragraph" may

be substituted by "paragraphs".

(2) At the end of lint! 8 on page 527 oblique (/) may

be added after the word "procedure".

(3) In Jine . on page 529, the words "make at further'

may be substituted by "male a further".

Engineering (Dcptt. of Iron & Steel).

33. A representative of the Ministry of Food, Agriculture, Community Development and Cooperation (Dcptt. of. Agriculture).

34. A representative of the Ministry of Industrial Develop- ment, Internal Trade & Company Affairs (Deptt. of Industrial Development).

35. A representative of the Ministry of Finance (Deptt. of

Expenditure).

36. A representative of the Planning Commission.

Representatives of the Undertakings etc,

(4) In line 6 on page 529, Ihe words "metal for very'

may be- substituted by "metal for every",

M. S. BHATNAGAR, Under Secy.

37. Chairman, Heavy Electricals Ltd . Bhopal. 38. Chairman, Bharat Heavy Electricals Ltd.

39. President, Federation of Indian Chambers of Com-

merce & Industry or his representative.

MINISTRY OF IRRIGATION AND POWER

yen- Delhi, the 21M August 1970

RESOLUTION

No. 2-X./AH 8)/69¹.—The Central Electricity Consultative Council set up by this Ministry's Resolution No. EL.II-1(7)/ 65, dated 19th January, 1968, read with Resolution of even number dated 12th February, 1968, is hereby reconstituted us under :—

Chairman

1. Union Minister of Irrigation and Power.

40. A representative of the Federation of Electricity

Undertakings of India.

41. Chairman, Indian Electrical Manufacturers Associa-

tion or his representative.

42. The Hon. General Secretary of the Executive Com- mittee of the National Tonnage Club of Farmers.

43. Director (FBStP), Ministry of Irrigation and Power

will be the Member-Secretary of the Council.

Chairman may invite any other person to attend the meetings of [he Council as he nwy consider necesnary.

Member*

2. Union Deputy Minister of Irrigation & Power.

2. \n order to ensure fairly rapid rotalion, the tenure of

[ho Council may be for two years ut ;i time.

3. (a) The Council will consider and make recommenda- Ministers from States/Union Territories

3. Minister for Irrigation & Power, Orissa.

4. Minister for Public Works Department, Tamil Nadu.

5. Minister for Power Department, Andhra Pradesh. 6. Chief Minister, Himacha] Pradesh.

7. Minister for Industries A Power. J. & K.

tions on the following subjects:

(i) Matters relating ro the generation, supply and dis- tribution of electricity and the services and facilities provided by the electricity undertaking as may be referred to it for consideration, by the Uaion Minister for Irrigation and Power.

Members of Parliament

8. Shri lahan Uddin Ahmed, M.P. (Lok Sabha).

9. Shri B. Narayanan, M.P. (Lok Sabha).

JO. Shri Raja Venkatappa Naik, M.P. (Lok Sabha).

11. Shri R. Surrender Reddy, M.P. (Lok Sabha). 12. Shri Dhireshwar Kalita, M.P. (I.ok Sabha).

13. Shri M. K. Sharma, M.P. (Lok Sabha). 14. Shri Devendra Vijai Singh, M.P. (Lok Sabha). 15. Shri Ram Chandra Ulaka, M.P. (Lok Sabha). 16. Shri p. Venkatasubbaiah, M.P, (Lok Sabha).

17. Shri Brahmananda Panda, M.P. (Rajya Sabhuj.

18. Shri Prithvi Nath, M.P. (Rajya Sabha). 19. Shri Narayan Prasad Chaudhuri, M.P. (R"jya Sabha). 20. Shri Pandharinath Sitaramji Patil M.P. (Rajya Sabha). 21. Dr. Debiprasad Chattopadhyay, M.P. (Rajya Sabha).

22. To be notified later.

di) Other matters relating to the jiencralion, supply and distribution of electricity and the services and facili- ties provided by the electricity undertakings which individual Members of the Council may. with the approval of Ihe Chairman, desire to be included in agenda.

(Hi) Any other matter of general puWic interest or public convenience relating to supply and distribution of power.

(b) The Council will be purely consultative in character. (c) Questions relating to staff, discipline and appointments

shall not be brought before the Council.

4. (a) The Council will meet at least once a year.

'b) The Chairman may constitute committees or sub-com- mittees of the Council to advise the Government on .specific problems relating to the services and facilities provided by tile electricity undertakings.

State KlKlrhity Boards

23. Chairman, Assam State Electricity Board. 24. Chairman, Haryana State Electricity Board. 25. Chairman, Madhya Pradesh Electricity Board. 26. Chairman, Mysore State Electricity Board. 27. Chairman, U.P. State Electricity Board.

(c) Any member wanting to bring up a subject for discus- MOn should give a clear notice of one month to the Secretary •ind statei briefly the subjects to be discussed. The Secretary will circulate the agenda giving the Members at least 10 days' notice together, as far as possible, with memorandum on each item. Urgent business may, however, be brought forwarded for consideration without notice but with the approval of the Chairman. The Chairman may rule out a subject at his dis- cretion.

(d) The proceedings of the meetinjis of the Council will be confidential, but a short summary of the proceedings will be ordinarily prepared and given to the press.

Representatives of Ministries of Government of India

28. Secretary, Ministry of Irrigation & Power, 29. Vicc-Cbairman, Central Water 4 Power Commission. 30. A representative of the Ministry of Railways (Railway

Board).

31. A representative of the Ministry of Petroleum, Chemi-

cals" Mines & Metals (Departt. of Mines & Metals').

5. The Members of the Council will draw travelling allow- ance and daily allowane for attendinc the meetings of the Council at the rates fixed by the Government from time to time.

ORDER

OKDERP.D that the above Resolution be communicated to flic memhers concerned, the State Governments, the Slate

Electricity Boards, the Ministries of the Government of India, Prime. Minister's Secretariat. Secretary to the President, the Planning Commission nnd the Comptroller and Auditor General.

OKDHRLD also that the Resolution rie published in the Gazette of India.

V. V. CHART, Secretary Alternate, lor Shri T. S, SwiimiriJtban, substitute Shri "N. M. Vakil,

ORDER

(^)EiDbR£D that ihe Resolminn be published in the Gazette of India Part 1^— Section 1.

MINISTRY OF LABOUR, EMPLOYMENT AND

REHABILITATION

(Department of Labour nnd Employment)

RESOLUTION New Drlhi, the 2U< August lf)70

No, 31. l*/b9/XR-/r.-Tn Resolution No. 31/18/69/LR-IV dated 9th December, 1969, In-low Para 2, against S. No. 1 of ORDERED also I nut a copy of the Resolution bo communicat- ed to all Ministrjes/r>epurtmcrils of the Government of Tndia, State Governments/ Administration of Union Territories, Chairman of the Committee on Automation and ail others concerned.

P. M. NAYAK, Secretary

FRVNTTD BY THE MANAGER, OOVERNMENT OF INDIA TRP.SS, FARUUB'iD AND PUBLISHED BY THE MANAGER OF PUBLTCAT1ONS, DELHI. 1 9 70