MATERIALS FOR
updation of government WEBSITE
( PARLIAMENTARY
AFFAIRS DEPARTMENT )
CABINET
DECISIONS
9.6.2006
1. Expansion,
development and operation of Gopalpur Port on BOOST basis through
Private developer – Approval of final bid offer made by the
Consortium M/s. Orissa Stevedores Ltd.
Gopalpur
Port located at Arjipali in the district of Ganjam was a lighterage
Port. It has closed its operation since 2003. As per our Port
Policy, for expansion, development of Gopalpur Port a private
developer, the Consortium led by M/s. Orissa Stevedores Ltd. has
been selected by RITES, the consultant appointed by the State
Government. The developer will take up the project on BOOST basis
for a period of 30(Thirty) years. The Company will invest Rs. 720
Crores for construction and operation of Phase-I & Phase-II within
48 (Forty-eight) months from the take over date.
The
traffic forecast by the Company is 0.55 Million Tones per annum in
Phase-I and 5.6 to 14 Million Tones in Phase-II. The Company will
give revenue share to the State Government on the basis of their
gross revenue earned from the Port operation as follows:
|
From date of Take-Over 1st
Year |
Nil |
|
2nd to 4th
Year |
1.5% |
|
5th to 9th
Year Phase-II |
5% |
|
10th Year to
end of Concession Period |
7.5% |
It was
noted that a piece of land inside the Gppalpur town area close to
the Light House is required for tourism and other related purposes.
It was, therefore, decided that this land may be retained by the
Commerce and Transport Department and its eventual alternate use
will be decided separately. This would be deleted from the list of
assets to be transferred to the private developer.
The
Cabinet in this meeting have in principle approved the bid offer
made by M/s. Orissa Stevedores Ltd. for expansion, development of
Gopalpur Port.
2.
Renaming of Orissa Transport Ministerial Services
(Method of Recruitment and conditions of service of clerks in the
Offices Subordinate to Transport Commissioner-Cum-Chairman, State
Transport Authority, Orissa) Rules, 2005 as Orissa Transport
Ministerial Services (Method of Recruitment and conditions of
service of clerks in the Offices Subordinate to Transport
Commissioner-Cum-Chairman, State Transport Authority, Orissa) Rules,
2006. Approved.
Renaming of Orissa Transport Ministerial
Services (Method of Recruitment and Conditions of Service of Clerks
in the Offices Sub-ordinate to Transport Commissioner-Cum-Chairman,
State Transport Authority, Orissa) Rules, 2005, which were approved
by the Cabinet on 22.4.2006 as
Orissa Transport
Ministerial Services (Method of Recruitment and Conditions of
Service of Clerks in the Offices Sub-ordinate to Transport
Commissioner-Cum-Chairman, State Transport Authority, Orissa) Rules,
2006.
3.
Proposal to
amend the provision of Orissa Civil Services (Pension)
Rules, 1992. Approved.
Clause (C) of
Sub-Rule (2) of Rule-7 of O.C.S. (Pension) Rules, 1992 provides that
“no judicial proceedings, if not instituted while the Government
Servant was in service, whether before his retirement or during his
reemployment shall be instituted in respect of a cause of action
which arose, or in respect of an event which took place, more than
four years before such institutions.”
But it has
come to the notice of the Government that because of such embargo in
the O.C.S.(Pension) Rules, 1992, the Department of Government are
not able to take any action against delinquent Government servants
in many cases where the facts of embezzlement or misappropriation
etc. committed by such Government employees due to various factors,
are brought to the notices of the Government Departments after their
retirement. The Law Department have also viewed that for
misappropriation of Government funds / property, a Government
employee can be charged with criminal breach of trust under Section
409 of the Indian penal Code for which no time limit has been
prescribed for taking cognizance. Such view of the Law
Department is consistent with the judgment of the Hon’ble Supreme
Court delivered in the case of “State of Pubjab-vrs-Kailash Nath”
(reported in Judgment Today 1988 (4) (Supreme Court (P.502),
consistent with which a Rule framed under Article 309 of the
Constitution of India should not be framed laying down as embargo on
prosecution as a condition of service.
In the above
consideration, the Cabinet approved the proposal to amend the rule
by omitting the clause (C) of the Sub-rule (2) of Rule-7 of the
O.C.S.(Pension) Rules, 1992.
4.
Review of Central
Sales Tax concessions after implementation of V.A.T.
Approved.
Under the erstwhile Orissa Sales Tax Act, there was no provision for
set off of tax paid on purchases against tax payable on sales in the
course of inter-state trade or commerce. In order to make the price
of the products competitive by avoiding double taxation both on
raw-materials and finished products and to promote marketing of
locally manufactured products outside Orissa, Government had earlier
fixed CST at lower rate of 1% or 2% in respect of sale of certain
goods in the course of inter-State trade or commerce while in
certain other cases sale of finished products by industrial units
covered under IPRs had been exempted from levy of CST by issue of
notifications under section 8(5) of the CST Act. In this process,
the loss of revenue to the State was limited to the extent of CST
concession / exemption only under Sales Tax regime.
The VAT Act has been implemented in the State
w.e.f. 01.04.2005 by replacing OST Act, which provides for set off
of tax paid on purchases i.e. on inputs, capital goods etc. against
tax payable on sales in the course of inter-State trade or
commerce. Because of the availability of exemption / concession in
CST allowed earlier, while a dealer selling goods in the inter-State
trade or commerce will pay no CST/ CST at lower rate on the one
hand, he will at the same time claim adjustment of input tax credit
at the usual rate of tax paid in respect of purchases. In this
process, while the claim of input tax credit combined with CST
exemption / concession becomes double benefit to the dealers, the
State has to sacrifice revenue on account of exemption / concession
of CST in addition to loss on account of set off of input tax credit
in respect of purchases. In view of availability of input tax
credit under VAT the circumstances which necessitated grant of CST
exemption / concession under Sales Tax regime no more exist.
As per the provision of CST Act, upon payment
of CST on sale of declared goods which has suffered tax under OST
Act, the tax paid on purchases is refundable. In order to obviate
the botheration of collection of CST on such cases and subsequent
refund of OST collected on purchases as well as procedural
complexities involving refund, the sale of declared goods in the
course of inter – State trade was exempted. With introduction of
VAT and the in-built provision under the said Act for set off of tax
paid on purchases against tax payable on sales as well as the
provision for automatic refund by process of returns, the
circumstances that necessitated exemption of CST on such cases no
more exist.
In
view of the above, the following proposal approved by the Cabinet.
(i)
to
bring the goods subject to levy of CST @2% for levy of CST at usual
rate with full input tax credit.
(ii)
to
increase the existing concessional rate of CST @ 1% to 2% with full
input credit.
(iii)
to
convert existing CST exemptions under IPRs to deferral scheme which
is VAT – compatible.
(iv)
to
withdraw the existing conditional exemption of CST in respect of
declared goods as it is not VAT compatible and there is provision of
input tax credit to take care of the interest of the trader.
5.
Proposal
for amendment of the Orissa Civil Services (Criteria for Selection
for Appointment including Promotion) Rules, 2003. Approved.
1.
As per the existing rules, for
initial appointment to any State Civil Service / Post, the select
list shall contain the names of successful candidates 1.10 times the
number of vacancies anticipated pertaining to that year.
2.
It is experienced that wherever
the merit list has exceeded the notified number of vacancies, there
has been a lot of litigations while giving appointment to those
selected in excess of the notified vacancies. There has also been a
lot of difficulties in observing the rule of reservation / roster in
such cases.
3.
To obviate the above difficulties,
it has been decided that the size of the select list shall be equal
to the estimated number of vacancies of the year.
6. Amendment to the Orissa
Sub-ordinate Forest Service (Method of Recruitment and Conditions of
Service of Foresters) Rules, 1998 and Amendment to the Orissa
Sub-ordinate Forest Service (Method of Recruitment and Conditions of
Service of Forest Guards) Rules, 1998. Approved.
Amendment
to Forester and Forest Guard Rule, 1998 is necessitated due to:
1.
Increasing vacancies in field
posts of Forest Guards and Forester is influencing protection and
preservation of Forest Wealth.
2.
Need for Redeployment of surplus
staff of Government and Public Sector Undertakings and need to fill
up vacancies in forest protection.
3.
Substitution / addition of new
clauses in the recruitment Rules, 1998 to facilitate recruitment
made.
It was also
decided to complete a survey to identify surplus manpower in all
Departments of Government within the next 100 days.
7. Amendment
to the Orissa Timber and other Forest produce transit Rules,
1980. Approved.
The T.T. Rules has not
defined a depot or the procedure for its establishment and
operation. The trading of timber has increased in recent past. The
depots and retail outlets established for sale of timber, whether
those are transit free species or timbers brought from outside the
state or the country were found without registered property mark.
Therefore the rationale to amend the provisions under T.T. Rules
have been felt for trading in timber obtained genuinely from all
sources and forests.
Present
proposal:
The
purpose of such amendments are:-
(i)
to provide for the establishment and operation of timber
trading units/retail outlets.
(ii) to
facilitate timber traders and timber purchasers for getting
genuine timber from forest, plantation and import etc. and for
distinction of illegal timber with that of genuine timbers, and
(iii) to regulate and prevent illegal smuggling of timber,
8.
Proposal for amendment of the Orissa Saw Mills and Saw Pits
(Control) Act, 1991 (Orissa Act 27 of 1991). Approved.
The functioning and
closure of saw mills in Orissa is regulated by the Orissa Saw Mills
& Saw Pits (Control) Act, 1991. The existing provision under "The
Orissa Saw Mills & Saw Pits (Control) Act, 1991" do not allow saw
mills to run within 10 Kms. radius from forest boundary which has
led to closure of many saw mills in the state. The provision do not
allow establishment of any new saw mills within 10 Kms. from forest
boundary by the Government or Government undertaking also. it has
posed problem for the people for sawing timbers. Even few districts
have remained without any saw mill.
To address this
problem, amendment to the existing provisions of "The Orissa Saw
Mills & Saw Pits (Control) Act, 1991" has been proposed to establish
saw mills by Government and Public Sector Undertaking, so that some
more new saw mills can be established in the state to fulfill the
popular demand in a district.
9.
Amendment to the
Orissa Forest Service Group B (Recruitment and Conditions of
Service) Rules, 1984 and Amendment to the Orissa Forest Service,
Group B (Recruitment by competitive Examination) Regulations, 1985.
Approved.
Amendment to the above noted rules and
regulations is necessitated for the following grounds.
1.
Large number of
vacancies in Field Posts of A.C.F., OFS-II (Group-B) specially in
direct recruitment quota has affected age structure in cadre for
smooth management of field level forest work.
2.
Amendment to existing
rules was necessitated to make rules and regulations in tune with
the needs of training and service in current forest management and
administration.
3.
Substitution / addition
of new clauses in the recruitment Rules and Regulations is to
facilitate the recruitment process in the line, coinciding with the
recruitment process presently followed in other cadre of civil
services.
10.
Approval of
the Recommendation of the Cabinet Sub-Committee on “Reforms in
the sector of Higher Education to provide Quality Education.”
Approved.
The
following proposals for promotional avenues to Junior Lecturers
approved by the Cabinet.
1.
To create a Cadre of
Junior Lecturers, Lecturers in Jr.Cl.1 and Reader with scale of pay
of Rs.6500-10500/-, Rs.8,000-13,500/- and Rs.9350-14,550/-
respectively.
-
Post of Principals
/ other administrative posts in the State Scale of
Rs.10,650-15850/- will be filled up by way of promotion from
among the Readers in the State scale.
-
Post of Professor
in three Colleges, namely:- Ravenshaw College, G.M. College,
Sambalpur and Khallikote College, Berhampur shall be filled up
by way of selection from among the Readers in the State Scale /
Principals / Administrative posts in State scale of Rs.15,100/-
to Rs.19,500/-.
-
The total
sanctioned strength of Jr. Lecturers in Junior Colleges is
1023. The total sanctioned strength of teachers in Degree
Colleges is 1966 out of which 46 posts are earmarked for
Professors. Rest 1920 posts will be occupied by Lecturers and
Readers at the ratio of 3:1.
It was further decided that efforts will be made to
complete the promotion process of eligible candidates against the
available vacancies including consequential vacancies caused by
filling up of higher level of posts / retirement within a period of
three months. In case of any major difficulty this would be
completed within a period of four months. Simultaneously, steps
should also be taken to complete the promotion of Lecturers of UGC
scale as per the existing career advancement scheme. All out
efforts should be made to take up at least one or two subjects
during the current month to get the process rolling.
It was further noted that there are a total of
538 Junior Lecturers. It should be possible to promote all the
Junior Lecturers within a reasonable period as per the eligibility
criteria already indicated. However, in case there is any major
difficulty in any particular subject on account of non-availability
of adequate number of posts this can be separately taken up by the
Administrative Department for upgradation of a few posts so that
Junior Lecturers of the Department can get their promotion within a
reasonable period after completing the minimum years of service.
On
the matter of clearance of arrear dues it was decided that the
liabilities would be cleared within a period of 10 years in a phased
manner. The Department will also develop comprehensive guidelines
on the basis of which prioritization for clearance of arrear dues
can be made. It was also decided that a similar process will be
followed with respect to School & Mass Education Department for
which School & Mass Education Department will submit a comprehensive
proposal.
11.
Amendment of the Orissa Education Service (Senior Administrative
Grade) Recruitment Rules, 1990. Approved.
The Orissa Education Service (Senior
Administrative Grade) Amendment Recruitment Rules, 2001 provides
direct recruitment of Principal Grade-I (Govt. Autonomous & Lead
College) and Principal, Readers Grade (Government Degree Colleges)
by the O.P.S.C. through open advertisement. At present it has been
considered for filling up of the above category of posts by way of
selection by the O.P.S.C. from among the eligible Readers of
Government Colleges & in accordance with eligibility criteria and
qualification prescribed by the U.G.C.
12. The Orissa
Education Service (Professor’s Grade) Recruitment Amendment Rules,
2006. Approved.
The Orissa Education Service (Professor's
Grade) Recruitment Rules, 1990 provides for recruitment to the post
of professors by direct recruitment on the basis of merit through
all India advertisement and through the Selection made by the
Commission. Now, after the present amendment the posts of Professors
will be filled up from among the eligible Readers of Government
Colleges through O.P.S.C.
13. Proposal to issue
Notification under the Criminal Law (Amendment) Act, 1908 to ban CPI
(Maoist), a left wing extremist organization and some of its front
organizations active in Orissa and to frame a scheme to encourage
the surrender of misguided youths and to rehabilitate them.
Approved.
The naxalite menace in the State was first
felt in the year 1960 on the fringes of State border in the South.
It has now spread to 16 districts of the State. In the last ten
years, the naxalites have committed 239 acts of violence, killed 33
civilians and 39 policemen. They have looted away 616 weapons from
the security forces. They are now operating through following over
ground front organizations to spread their violent ideology.
The C.P.I. (Moist), in their media release and
pamphlets, are instigating people to take up arms against the
Government, urging police to rebel against the Government and are
making statements against other organs of Government, including
Courts. They have also the declared objective of stopping
developmental activities like, construction of roads,
industrialization, etc.
Activities of CPI (Maoist) are directed towards
interference with the administration of law, with the maintenance of
law and order and are posing serious danger and threat to public
peace.
Similarly, Damana Pratirodh Manch, a conglomerate of
several pro-C.P.I. (Moist) organization and allied tribal groups are
systematically undermining the democratic system. It is a platform
for underground cadres to operate in political heartland of State
under the pretext of championing the cause of downtrodden people.
Known and dreaded extremists are regularly attending its rallies and
activities. The speeches delivered by its leaders and the leaflets
circulated during their rallies are highly provocative,prejudicial,
detrimental to public order and maintenance of law & order.
They went to the extent of terming the anti-naxalite
measures, taken by the Union and State Governments as “barbaric” and
“fascist” repression.
This organization in engaged in activities,
which interferes with the administration of law and constitute a
danger to public peace.
The activities of Chasi Mulia Samiti, Kui
Lawenga Sangha and Vansadhara Divisional Committee of CPI (Maoist)
are also interfering with administration of law and constitute a
danger to public peace.
Objectives of the Jana Natya Mandali is also
no way different from the above organizations. The organization is
propagating the Maoist ideology in order to overthrow the existing
democratic system. This also interferes with the administration of
law and with the maintenance of law & order. The activities of
Mandali constitute a danger to public peace.
Krantikari Kisan Committee is a front
organization of erstwhile Moist Communist Centre of India and this
organization is regularly distributing leaflets in the State
appealing people to support and strengthen the Maoist movement.
Their objective is to overthrow the present
system of democratic government. Their activities constitute a
danger to public peace and are interfering with the administration
of law.
Bal Sangam is an organization where young
boys and girls within the age of 10-16 are trained up for collection
of information required by the Maoist. As such, it is a nursery for
steady supply of indoctrinated and trained young persons for
perpetrating illegal activities of Maoist. The activities of Bal
Sangam constitute a danger to public peace.
The Police is finding it difficult to deal
with the above organizations and the State Government have,
therefore, banned the above seven organizations under the Criminal
Law (Amendment) Act, 1908.
14. Setting up Thermal Projects
in the District of Dhenkanal and Angul through joint
venture.
The proposal is for setting up a thermal
power plant in the State through participation of State Public
Sector Undertakings (PSUs) viz. Orissa Hydro Power Corporation (OHPC)
& Orissa Mining Corporation (OMC) through joint venture companies.
2.
The State Government have to ensure availability of adequate power
to meet the consumer demand and to sustain the economic growth. The
current availability of power and the future prognosis calls for
urgent addition to generation capacity.
3.
The currently there is a 1000 MU (or 114 MW) of surplus power in the
State. With rapid load growth, consequent on industrialization and
ongoing Rural Electrification Programme, the energy requirement in
the State will outpace the energy availability by 2008-09.
4.
The National Tariff Policy, notified on the 6th January
2006, stipulates that all future requirement of power should be
procured competitively by distribution licensees except in cases of
expansion of existing projects or where there is a State
controlled/owned company as an identified developer and
where regulators will need to resort to tariff determination based
on norms.
5.
Therefore, it has become urgently necessary to set up Thermal Plants
in the State for capacity addition with the tariff of electricity
determined by the State Regulator. A broad outline of the proposal
is as under :-
(1)
The Thermal Power Project will be completed in two phases of 1000 MW
each.
(2)
The project cost shall be around Rs.4000 crores in each phase at
current prices. The debt equity ratio shall be 70:30 which is in
line with existintg norms prescribed by Central Electricity
Regulatory Commission.
(3)
The JV Company will strive to obtain coal linkages/coal block. Coal
may be procured from alternative sources, if required.
(4)
To enable the JV Company to implement the project & operate it
successfully in an extremely competitive environment, appropriate
operational and financial autonomy will be given by the state
Government including the right to frame a compensation package for
the employees in line with prevailing industry standards.
The power
generated by the Joint Venture Company shall be available to the
State utilities. However, in case the utilities are unable to take
any part of the power or default in payment, then the same can be
sold outside as decided by the Board of Directors of the Joint
Venture Company.
Today, the
Cabinet approved the above proposals.
…
15. Proposal for
(i)
Inclusion / deletion of certain items in the Schedule to the Orissa
Entry Tax Act, 1999, and
(ii)
levy
of Entry Tax at the higher rate on certain scheduled goods to
prevent trade diversion.
Approved.
In order
to enhance revenue rationalization, it is considered necessary to
bring certain new items under the ambit of entry tax for levy of tax
@1% and 2%.
2.
‘Fish’ being exempted
under VAT Act, the State stand to lose tax revenue which it was
getting under the Sales Tax regime on levy of sales tax @ 4% on
fish. Levy of Entry Tax @ 4% on ‘fish’ when obtained from outside
the State would yield additional entry Tax revenue to make good the
loss of revenue accruing earlier to the State in shape of Sales Tax
and in addition, it would also boost internal production of fish.
3.
Consequent upon levy of
entry tax on gold and silver bullion @ 1%, the business transaction
of this item in the State has declined due to diversion of trade to
other States resulting in loss of tax revenue to the State.
Exclusion of the item from the purview of levy of entry tax would
increase business transaction of this item in the State and in
addition, it would yield tax revenue to the State in shape of VAT
which the State is losing at present through trade diversion.
4.
The dealers/persons
inside the State usually resort to the practice of procuring certain
goods directly from outside the State on payment of 4% CST instead
of purchasing the same inside the State on payment of VAT @12.5%.
In the process, CST paid goes to the revenue of other State and the
State of Orissa not only loses revenue on account of VAT, but it
also discourages business of such items within the State.
In view of the above,
it is proposed –
(a) (I) to
include the following new items in part I of the Schedule for levy
of entry tax @ 1% - “Steel sleeper of all kinds and its fittings,
Naptha, sodium bi-carbonate, printing ink, office stationery,
pre-laminated particle board and mouth freshner of all types.”
(II)
to include the following new items in part II of the Schedule for
levy of entry tax @ 2% - “Spare parts, components and accessories of
watches, Time pieces and clocks, SIM card, Recharge vouchers, Jelly,
Sauce and Squashes, Carpets and Woolen fabrics and garments”.
(b) to
prescribe levy of entry tax on ‘fish’ when obtained from outside the
State @ 4%.
(c) to
delete the item ‘Gold and silver bullion’ from part I of the
Schedule to the Orissa Entry Tax Act liable tax @ 1% so as to
exclude it from levy of entry tax.
(d) (I) to
prescribe levy of entry tax @12% instead of 1% on the following
goods when such goods are brought from outside the State for the
purpose other than sale or consumption as raw material which
directly goes into production of finished products for sale –
“Furnace oil, paints and varnishes, sanitary wares and fittings,
petrol, diesel and lubricants, cement, asbestos including asbestos
cement, asbestos products”.
(II)
to prescribe levy of entry tax @ 12% instead of 2% on the following
goods when such goods are brought from outside the State for the
purpose other than sale – “Electrical goods, Motors, materials for
transmission towers, conductors/ Cable for manufacture, Copier,
Xerox machine, Fax, TV, VCR, VCP, VCD, DVD, Video Camera, Motor
Vehicles, Two-wheelers/ Three-wheelers, Marble, Decorative stones
and tiles, Cuddpah stone, Granite stone, Air conditioners,
Refrigerators, Deep freezer, Air coolers and Washing machines”.
…