M A I N   N E W S

Squall leaves 3 dead, 80 hurt in Kashmir
Tribune News Service

Srinagar, May 9
At least three persons were killed and 80 others injured when a high velocity windstorm lashed several parts of the Kashmir valley, official sources said today.

According to reports reaching here, two persons, one each in Anantnag and Pulwama districts in south Kashmir were killed when they were hit by falling trees and roof tops. Khazir Mohammad was killed in the Pulgam area of Anantnag district while Ali Mohammad was killed in Pulwama, reports reaching here said.

A girl, who was swept away by stormy winds, fell into a well and died in Pulwama district. A woman of the same village died on seeing the girl’s body.

Several vehicles were also damaged in the rainstorm. Traffic on several roads was blocked due to rain and winds. 

Defence production opened to private sector
Tribune News Service

New Delhi, May 9
In a significant decision, the government today decided to take the defence production off the list of industries reserved for the public sector.

At the Cabinet meeting presided over by Prime Minister Atal Behari Vajpayee here this evening, the government also allowed 100 per cent foreign direct investment (FDI) in airports and drugs and pharmaceutical sectors while raising the limit in telecom sector to 74 per cent and banking to 49 per cent.

The defence production will be opened up to the Indian private sector subject to issue of licence. Licences for the purpose will be issued by the Defence Ministry. The private sector, if necessary, can opt for FDI up to 26 per cent, mainly for obtaining transfer of technology, Parliamentary Affair Minister Pramod Mahajan said after the meeting.

Mr Mahajan clarified that the public sector would contiue to produce defence goods.

The Minister said the modalities for producing defence items under licence would be worked out between the Defence Ministry and private sector companies.

The decision removes the decades-old policy which allowed purchase of defence equipment from private manufacturers abroad, but restricted their production within the country to public sector undertakings.

The decision did not involve any security concern as several fighter ships and jets like F-16s and guns like Bofors which had been bought abroad were produced in the private sector there, Mr Mahajan said.

Regarding the decisions on FDI, Mr Mahajan said the telecom sector that would qualify for enhanced FDI limit are Internet service providers (ISPs), with gateways, radio-paging and end-to-end bandwidth. The FDI would, however, require approval of the Foreign Investment Promotion Board (FIPB). It would also be subject to licensing and security arrangements. In courier services, distribution of letters is not covered under the FDI hike.

In MRTS, even acquisition of real estate falls under FDI which will be under the automatic route. The Cabinet also decided to allow 100 per cent FDI for development of townships after FIPB approval. Earlier, this limit was 75 per cent.

In civil aviation, the FDI has been raised to 100 per cent from the present 74 per cent for airports but after FIPB approval.

The government also approved the signing of an agreement of bilateral investment promotion and protection with the Republic of Cyprus.

The Cabinet took three decisions relating to coffee, bilateral investment and to introduce the two-member constituencies (abolition) and other laws repeal bill.

Ghosh Additional Secy in PMO
Tribune News Service

New Delhi, May 9
Dr Prodipto Ghosh, currently on deputation to Asian Development Bank, has been appointed Additional Secretary in the Prime Minister’s Office.

The appointment, which was approved by the Appointments Committee of the Cabinet (ACC), comes in the wake of the shifting of Mr N.K. Singh, Secretary in charge of economic affairs in the PMO, to the Planning Commission as a member recently.