The Tribune, Chandigarh, India

Sunday, August 18, 2002, Chandigarh, India

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Tribune News Service

Chandigarh, August 17
The Punjab Chief Minister, Capt Amarinder Singh, today affirmed that the International Financial Consortium (IFC) has in principle approved a financial involvement of US $ 1 billion in the state.

The Punjab Chief Minister, during his recent visit to the USA, had made a presentation to the IFC for three projects involving an investment of US $ 1.2 billion. These were vetted by the United Nations Office for Project Services (UNOPS). Capt Amarinder Singh said, “We are shortly expecting a formal letter and thereafter the state will send a letter of intent and start negotiations to determine the proportion of soft-term loan and grant. The Government of India and the Reserve Bank of India will be fully informed and involved”.

The Chief Minister, who addressed a press conference at Punjab Bhawan today, gave the following details on the three projects: 1. Drinking water supply and sanitation for rural areas, covering 11,416 villages where community toilets, sewerage and drinking water would be provided at a cost of US $ 923 million (Rs 4,525.24 crore); 2. Improving living conditions in cities having a population of above 1 lakh and providing drinking water, sewerage, plants for solid waste management and sewage treatment plants. This will cost US $ 220.60 million (Rs 1103 crore); and 3. A pilot project for integrated village development of 145 villages at a cost of US $ 35 million Rs 175 crore).

Capt Amarinder Singh scotched all speculations and apprehensions about the “success” of the visit or credentials of the consortium. The organisation, formed by banks and charitable institutions, has funded developing countries to improve “human dignity” though “poverty alleviation”. It had already funded a similar project in Vietnam, Namibia and recently in Ghana. Every transaction made by the IFC has the approval of the Internal Monetary Fund and the World Bank. The IFC has also to inform the US state treasury. He rubbished the charge of Akalis that it was a laundered drug money.

The UNOPS is only an implementing arm of the United Nations, empowered for maintaining the high standards of transparency in its operations.

Capt Amarinder Singh said the focus of the three projects is on, 1. Improving living conditions and upgradation of environment in villages, where most of the state’s poor live;2. Relieving the urban poor of squalor by providing basic civic amenities in 13 cities with a population of 1 lakh and above; and 3. Freeing poor village women and children of daily drudgery of having to carry pots of water over long distances by providing clean, potable water in sufficient quantity.” The money will be available by January 2003 without conditionalities”, he added.

At the Press conference, the Chief Minister was accompanied by the Finance Minister, Mr Lal Singh, the Chief Secretary, Mr Y.S. Ratra, and the Principal secretary, Finance, Mr K.R. Lakhanpal, besides the Principal Secretary to the Chief Minister, Mr S.K. Sinha and Media Advisor, Mr B.I.S. Chahal.

He said he had also met NRIs in New York and London, who were keen on making investments back home in information technology, bio-technology and entertainment parks. Besides, a group of NRIs was keen to set up a private university with affiliation to Cambridge in the UK.

Besides, the Chief Minister also answered questions on the Leader of the Opposition, Mr Parkash Singh Badal, regarding his comments on the foreign visit and filing of defamation and criminal suit against him. He said in one visit Punjab was successful in getting US $ 1 billion, while, Mr Badal made four trips abroad, as Chief Minister, and got nothing except getting his eyes and teeth examined which cost the exchequer Rs 1.87 crore. He was dismissive about the suits filed against him.

On the SYL canal issue, he said Punjab would file a fresh application in the Supreme Court. Punjab has no water to share. “Here is a typical case where Punjab with more land is getting less water and Haryana with less land is getting more water. I will also brief the AICC President, Ms Sonia Gandhi, on the issue. There is no need for an all-party meeting on the subject, as the views of all parties are known”, he added.

Punjab drought-hit

Punjab was today declared “drought-hit” by the Chief Minister, Capt Amarinder Singh. Though report of the special girdawari will be available towards the end of the month, the preliminary assessment showed that Punjab had suffered a loss of Rs 5,014 crore.

The Chief Minister said the criteria laid down by the Centre for declaring a state drought-hit did not apply to Punjab. The state has 95 per cent area under assured irrigation. The delayed and failed monsoon had resulted in scanty rains. This had affected the generation of hydro-power in the three dams. To save paddy, the main kharif crop, cuts were applied in the urban (paying) sector and power diverted to rural (non-paying) sector to save paddy. Also farmers shelled out money to buy diesel to cope up with the shortage of power. The state electricity board had to buy more power at an additional cost. All these factors pointed towards a grim scenario, thereby, need to declare the state “drought-hit”, he added.

He hoped the farmers would be compensated for the loss. He would visit Delhi to take up the issue of payment of bonus to farmers over and above the minimum support price, which must also be raised in view of the upward revision of cost per unit.