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CABINET DECISIONS

 

19.11.2005

 

1. Proposal for amendment of the Orissa Fiscal Responsibility and  Budget Management Act, 2005.

 

1. The Cabinet approved the proposal to amend Orissa Fiscal Responsibility and Budget Management Act, 2005 as follows:

 

a).   Clause (a) of section 5 of the said Act to the effect that the State Government shall reduce revenue deficit to nil within a period of five financial years beginning from the initial financial year on the 1st day of April, 2004 and ending on 31st day of March, 2009, the annual reduction of revenue deficit on the average being rupees two hundred and eighty-five crores.

 

b).            Section 6 of the said Act by inserting a new sub-section to the effect that an annual statement along with the budget shall be brought out giving prospect of the State’s economy and related fiscal strategy.

 

2.         The 12th Finance Commission have recommended that the Fiscal Responsibility Act of the concerned States should, at a minimum, provide for

a)     eliminating revenue deficit by 2008-09,

b)     reducing fiscal deficit to 3 per cent of GSDP or its equivalent defined as ratio of interest payment to revenue receipts,

c)     bringing out annual reduction targets of revenue and fiscal deficits,

d)     bringing out annual statement giving prospects for the state economy and related fiscal strategy,

e)     bringing out special statements along with the budget giving in detail number of employees in Government, public sector, and aided institutions and related salaries.

3.            Orissa Fiscal Responsibility and Budget Management Act, 2005 which has come into force w.e.f. 14.6.2005 though provides the fiscal target of reducing revenue deficit to Zero by 2008-09, there is no specific mention of annual reduction of revenue deficit. Similarly, though the Act incorporates various principles for fiscal management, there is no specific mention regarding bringing out annual statement giving prospects for the State economy and related fiscal strategy.

4.         The Department of Expenditure, Ministry of Finance, Government of India after perusing the Orissa Fiscal Responsibility and Budget Management Act, 2005 have pointed out that Debt Consolidation and Re-setting of Interest will be considered only after the State Government brings out the amendment incorporating the above essential items. Accordingly, the Orissa Fiscal Responsibility and Budget Management Act has been proposed to be amended to incorporate explicitly these two items. 

5.            Revenue deficit for the year 2003-04 is Rs.1420.92 crore and this is to be reduced to zero by 2008-09. Hence, average annual target of reduction of revenue deficit  has been suggested at Rs.285.00 crore.

6.            Regarding specific incorporation bringing out annual statement giving prospects for the State economy and related fiscal strategy, after amendment it would be mandatory on the part of the State Government to indicate while presenting the budget as to how the fiscal targets are to be achieved.

7.         After the proposed  amendments are effected  the Government of India may consider the estimated debt and interest relief amounting to Rs.1881.28 crore (principal payment Rs.872.85 cr. + interest relief Rs.1008.43 cr.). Besides this, if the revenue deficit is reduced to  zero and fiscal deficit is to be reduced to 3% of GSDP and in any year the fiscal deficit does not exceed the level of 2004-05, the State Government is likely to get the benefit of debt write off estimated at Rs.1751.29 crore. Thus, after strict compliance to the provisions of Orissa Fiscal Responsibility and Budget Management Act, 2005 including proposed amendments, Orissa is likely to get debt relief and interest relief estimated at Rs.3632.57 crore.

 

2.  Proposal for amendment of the Orissa Marine Fishing Regulation Act, 1982.

 

                        The Cabinet approved the proposal to amend Clause (a) & (b) of the OMFR Act to the effect that any officer not below the rank of Group-‘C’, in case of officer of the State Government and any officer not below the rank of Group-‘B’, in case of officer of the Central Government, can be appointed by the State Government as authorized officer for the purpose of the Act.

 

                        Section-3 of Orissa Marine Fishing Regulation Act, 1982 (OMFR Act in the short) provides that any Gazetted Officer of the State Government or any Gazetted Officer of the Central Government / Commissioned Officer in the armed forces of the union with the consent of that Government shall be authorized by the State Government to exercise the powers and discharge the duties in the specified area under the provision of the Act.  According to the aforesaid provision of OMFR Act, the Assistant Conservators of Forests of the State Government have been authorized to exercise the powers of authorized officer under this Act.  Of late, the Central Empowered Committee (CEC) constituted by the Hon’ble Supreme Court of India has observed to authorize and confer powers on the Forest Range Officers under OMFR Act as has been done in case of Assistant Conservators of Forests since the Forest Range Officers operate at the cutting edge level.  As the concept of Gazetted Officer has been abolished and the existing provision of OMFR Act does not permit appointment of Forest Range Officers (Group-‘C’) as authorized officers, it is needed to amend Section –3 of the OMFR Act suitably, so that there may not be any difficulty for appointment of Forest Range Officers along with other higher group of officers as authorized officer.

 

3.  Proposal to repeal certain Amending Orissa Acts and Regulations by a Repealing Legislation.

 

                        The Cabinet approved the proposal to bring a Bill to repeal 452 amendment Acts and 7 amendment Regulations from the 1973 to 2003 as these Acts and Regulations have already been incorporated in the main Acts and Regulations. 

                        The State Legislature has been enacting different Laws in the State and the Governor of Orissa has been making different Regulations in the Scheduled Areas of the State under the Fifth Schedule to the Constitution of India.  When the expediency arises amendments are made in the principal Acts and also in the Regulations.  Any such amendment made is required to be planted in the parent enactments itself.  Once such planting is effected,  the amending enactments serve their purpose and become obsolete.  Periodically, steps are taken for removing these obsolete enactments from the statute books by repealing such amending enactments.  So far two different repealing enactments viz. “The Orissa Repealing Act, 1948” and “The Orissa Repealing Act, 1976” have been made.  The present proposal is to repeal such obsolete enactments covering the period from 1973 to 2003.

 

4. Proposal for amendment of the Court fees Act, 1870 (7 of 1870) in its application to the State of Orissa.

 

The Cabinet approved the proposal to amend the Court fees Act 1870 (7 of 1870), which is a Central Act, in its application to the State of Orissa to enhance proper fee chargeable on ad valorem basis and fixed fees payable under Schedules I & II respectively along with other amendments. 

 

            Court fees payable in  different Courts in the State are governed by the Court Fees Act, 1870.  The State Government has proposed to amend the said Act in its application to the State of Orissa for enhancement of Court fees in order to meet the expenditure incurred on account of revision of pay structures of judicial officers. The Apex Court have also observed for increase of Court Fees as one of the alternative sources to discharge such financial obligation. The Court Fees Act, 1870, were amended from time to time but as regards increase of Court Fee payable was last increased in the year 1992. The proposed Court Fees (Orissa Amendment) Bill, 2005 intends to enhance the Court Fees of 2 to 2.5 times of existing proper fee. After the enactment of Court Fees (Orissa Amendment) Bill, 2005 it is expected to yield additional revenue of around Rs.5.00 crores.

 

5.  Proposal for amendment of the Orissa Land Reforms Act., 1960

                        The Cabinet approved the proposal to amend Section 8-A and Section 58 of O.L.R. Act, 1960.

           As per the provision of Section 8-A of O.L.R. Act, 1960, conversion of agricultural land for non-agricultural purpose, the raiyat has to first surrender the land to Government and the same would then be allotted to him on lease hold basis.

                       As this provision changes the status of sthitiban of the land to that of lease hold i.e. PATTADARI, different organizations as well as Public at large raised objection over this issue. There were also instances of public resentment in the cumbersome process of registration. Government therefore, decided to propose amendment in the provisions under OLR Act, 1960.

            In the proposed Amendment, it has been provided that in every case of conversion, the raiyat is required to pay conversion fee only for change of the classification of land. The Sthitiban status would however remain unchanged. This amended provision will also be effective in all disposed of cases under Section 8-A of  OLR Act. Earlier, there was no provision for appeal. In the proposed amendment an appeal provision has been inserted under Section 58(I) of the Act.

 

6. Allotment of land in favour of Kalinga Institute of Industrial Technology(KIIT), Bhubaneswar for establishment of Kalinga Institute of Medical Science.

 

                   The Cabinet approved the proposal of the G.A. Department to lease out 6.883 acres in Mouza-Patia in favour of KIIT for a period of 99 years for the purpose of establishment of Kalinga Institute of Medical Science, which was earlier leased out to them  by IDCO, with certain conditions. The KIIT will pay the differential premium between the current premium charged by the G.A. Department (Rs. 25.00 lakh per acre) and the premium charged by IDCO in 2004 (Rs. 18.00 lakh per acre) along with stamp duty as applicable on the differential amount.

 

                       Kalinga Institute of Industrial Technology, Bhubaneswar has requested for grant of lease of land measuring 6.883 acres in Mouza-Patia for 99 years for setting up a Medical College along with the 700-beded hospital. One of the conditions for approval of Medical College relates to land with minimum lease period of 99 years. Earlier KIIT has got this land from IDCO in February 2004 for a period of 73 years. The land is situated in Chandaka Industrial Estate.

                       

7. Sanction of lease of Government land free of premium in favour of ICAR for establishment of Regional Research Centre of Central Soil and Water Conservation in Koraput District.

                        

                        The cabinet gave in principle approval for sanction of lease of Ac 84.78 land in favour of ICAR free of premium, but on payment of ground rent, cess, book value of the building, cost of trees and interest thereof.

                       

                        The Government of India decided to establish a Regional Research Centre of Central Soil and Water Conservation Research and Training Institute at Koraput during the Sixth Five Year Plan period to develop appropriate technology to arrest soil erosion, consequent to shifting cultivation in Eastern Ghat hills region and to develop appropriate farming systems as alternative to shifting cultivation.

           The Principal Scientist–cum-Head of the Centre has filed requisition for lease of Government land measuring Ac.84.78 in village Badigaon of Koraput district. The ICAR has already established the Regional Station at Koraput by taking advance possession of Land in 1992 to cater to the needs of the State Government.

  

 

8. Future of Orissa State Electronics Development Corporation (OSEDC) Ltd. including its subsidiaries, Technical Division and Trust.

 

The Cabinet approved the following proposals:

 

1)     To enlist OSEDC and its Technical Division viz. the ETDC by the Public Enterprises Department for the ongoing DFID support in order to implement the decision of Government / Board of Directors of OSEDC.

2)     To disengage the employees through VRS, except the appropriate technical employees identified for absorption in CITE /OCAC / ORSAC.

3)     Transfer the CITE to the Industries Department as a constituent college of Biju Pattnaik University of Technology (BPUT) on a self-sustaining model.

4)     Privatization of Elmarc Ltd. and in case of failure of privatization of Elmarc Ltd. then for its enlistment for closure as one of subsidiary of OSEDC by Public Enterprises Department under the ongoing DFID support.

 

                        The Orissa State Electronics Development Corporation Ltd. (OSEDC) was incorporated on 29th September 1981 and is now under the administrative control of newly created Department of Information Technology, as a wholly owned State Public Sector Enterprise.  Receipt of Government grant by the Corporation was discontinued since 2004-05.  Taking into account the huge manpower, high level redundancy and mounting establishment cost and little scope of the Corporation to continue in a viable manner, it was decided to close down the Corporation and the disengaged employees from services w.e.f 30.09.2004 through VRS/VSS in pursuant of Govt. orders and as per the decision taken in the 87th meeting of Board of Directors of OSEDC held on 20.05.2004.

 

                        Out of the five subsidiaries: Ipitron Times Ltd., Elco Communication System Ltd., Elcosmos Electronics Ltd. were closed during 1998 under Industrial Disputes Act. One trust namely: CITE and one Technical unit namely: Electronic Test and Development Centre(ETDC) and one subsidiary unit Elmarc Ltd. were functioning.  It has been decided that Centre for IT Education shall continue to operate CITE will function as a self financing Government Institution and employees retained in it will be no liability basis to Government in any manner.

 

                        Electronic Test and Development Centre shall continue to render its calibration and testing services with only three to four technical persons deployed there.  On closure of OSEDC & ETDC, some qualified and experience manpower may be considered for absorption, in OCAC and ORSAC.

                        The subsidiary unit Elmarc Ltd.  was established in 1991 as a wholly owned subsidiary of OSEDC Ltd. For providing technical supports services like installation, repair and maintenance, commissioning and after sales support / warranty services for user of professional electronic equipments in the fields of medical electronics, telecommunications, computers and instrumentation etc.  Elmarc Ltd. has been awarded with Procurement Consultancy assignment for World Bank assisted Orissa Health System Development Project.  Presently 21 own recruits and 3 from OSEDC are working in the company.  Though it is now able to get a significant portion of salary expenses reimbursed from the ongoing World Bank assisted project services, it cannot be a regular feature.  Hence, Elmac Ltd.  needs to be privatized or enlisted by Public Enterprises Department for the ongoing DFID support.

 

9.  Policy guidelines on power generation from Non-conventional

     Energy Sources.

 

                        The increasing dependence on fossil fuel for power generation has adversely affected the environment, society and it’s economy.  In alternative, Orissa has the potential to generate 2290 MW of power through Renewable Sources.  To tap this source it requires huge investment, for which participation of Private sectors is called for.  The Ministry of Non-Conventional Energy Sources  (MNES), Govt. of India had communicated a uniform Policy Guidelines for promotional and fiscal incentives by the State Governments on power generation from Non-conventional Energy Sources.  The Cabinet approved the policy guidelines on Power generation from Non-Conventional Energy Sources keeping in view the above guidelines of GOI, Industrial Policy Resolution (IPR) – 2001 of the State and the Electricity Act-2003.

 

                        The main objective and the strategy of the Policy are to (1) Promote generation of solar power, Biomass Power from Ocean/Tidal Wave, Micro/Mini/Small Hydro and Geothermal Energy (2), Protect the environment,  (3) Encourage entrepreneurial investment in New and Renewable Sources of Energy (NRSE),  (4)  Generate employment and (5) Reduce dependence on conventional sources of power.

 

                        The Cabinet approved the above proposal and further decided that OREDA will be the nodal agency for the entire programme and function as the single window for promotion and facilitation of all projects.  However, for small, mini and micro hydel projects the Administrative Department will be the Energy Department instead of Science & Technology Department.  Rest of the programmes will be handled by the Science & Technology Department.

 

10.        Guidelines for Engagement of Swechhasevi Sikshya Sahayaks in the State.

                        The Cabinet today decided to form a Cabinet Sub-committee with the following members to look into the Guidelines for Engagement of Swechhasevi Sikshya Sahayaks in the State and related matters.

 

1. Minister, Rural Development, Industries & Law.

2. Minister, Finance.

3. Minister, Revenue, Food Supplies & Consumer Welfare

4. Minister, Panchayati Raj & Culture.

5.  Minister of State(Ind.), School & Mass Education – Special Invitee.

 

 

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