Bihar IT policy announced

The Bihar government has announced an IT policy which aims building core IT infrastructure in the state, ushering in e-Governance, providing extensive citizen-centric services, promoting IT education, incentivising IT businesses to set up units in the state, regulating IT services and putting in place institutionalised arrangements for implementing and monitoring IT activities in the state. The state government has set upon itself the following objectives:

IT Infrastructure: To create world class IT infrastructure and connectivity for e-Governance in the state, linking its offices from the State HQs to districts and blocks; ensure connectivity for panchayati raj institutions; facilitate setting up of broadband digital networks and encourage National Long Distance Operators (NLDOs) to build robust fibre optic network in the state..

e-Governance: To incorporate e-Governance in implementing the Government's agenda of appropriate governance; improve the internal government processes through information technology, administrative reforms, re-engineering and modernisation, to provide an efficient, responsive, transparent and cost effective government; to work towards gaining maximum advantage under the National e-Governance Plan and resources available therein, for ushering in e- Governance in the state.

Citizen Services: To use IT to bring various services to the people at minimum cost on anywhere, anytime basis; bridge the digital divide between urban and rural areas through scheme of Common Services Centres (CSC), provide G2C and B2C services to citizens at their doorsteps, undertake computerisation of government offices to enable them to respond to citizen?s electronic requests for services and information.

e-Literacy and IT Education: To promote measures for government offices and among the masses; ensure IT education in schools and colleges by setting up dedicated institutions in public and private sector.

IT Industry: To create a favourable investment climate in the state for IT, ITES & knowledgebased industries, and generate employment, earning income through exports and encourage e- Commerce, leading to significant increase in the share of the IT sector to the State GDP.

Regulatory Issues: To devise appropriate legal and regulatory framework for efficient administration of IT and ITES; prevent misuse of ICT and protect intellectual property rights, patents and trademarks.

Power import policy expected shortly

The Centre is working on a power import policy and is expected to announce it shortly. The policy will allow Indian firms, including private sector companies, to play a larger role in harnessing energy resources across the region. It will also outline issues of quantum of free power to be offered to the host country, exposure to be taken by Indian developers and lenders, tariff fixation and mechanism for review of tariff for inter-country projects being pursued by India across Bhutan, Nepal and Myanmar. The policy will outline for the government, financial and technological assistance it can extend to these projects.

Centre launches Ground Water Management & Regulation scheme

The Central government has launched a Rs.460 crore scheme - 'Ground Water Management & Regulation' - to develop web-enabled ground water information services, design artificial recharge and rain water harvesting projects for replication by states, and arrest depletion of ground water through regulatory measures. The scheme plans to explore new aquifer areas by drilling 4,000 wells and monitoring water levels and quality through nationwide network of 15,500 observation wells. It also envisages 1,500 water supply investigations for defense, urban and other organisations and 75 artificial recharge and rain water harvesting studies in different states.

Gujarat government to announce new agri business policy

The Gujarat government is expected to announce the 'Agri Business Policy 2008', by October 2008, as the draft policy is ready. The policy intends to encourage mega projects in food processing sector of the state and give incentives to projects set up in non-Gujarat Industrial Development Corporation areas, or to be executed on PPP basis, or through SPVs / JVs. The Gujarat government may provide additional subsidise of 50 per cent of infrastructure cost, which includes for approach road, water system, power and others, for projects having capital investment above Rs.40 crore. There is Rs.4 crore ceiling for cost subsidy. Agri business projects will be applicable for a 100 per cent stamp duty reimbursement. To attract large international service providers to set up cold chain and supply chain infrastructure projects in the state, 6 per cent back-end interest subsidy on capital investment and a Rs.4 crore ceiling is proposed. It is likely, that projects get 1 per cent additional back ended subsidy, if they are promoted by women or built in backward talukas. Orissa frames policy guidelines for power units The Orissa government is modifying the MoUs it signed with 13 independent power producers, and has framed new policy guidelines on 04 August 2008, for the establishment of ultra mega power plants and units by Central Public Sector Units. The state cabinet has approved the decision. In the new MoU structure, a clause will be deleted, which identifies that power generated in excess of 80 per cent of the plant load factor, be made available to the state at a variable cost plus incentive. The state government will henceforth sign MoUs with IPPs on the condition that nominated agency/agencies authorised by the state have the right to purchase power at a variable cost. Pharmaceutical policy to be delayed The finalisation of the pharmaceutical policy is delayed, as the Group of Ministers (GoM) headed by Agriculture Minister, Mr. Sharad Pawar is facing difficulty to present its views on core issues. It is learnt that, the Law Ministry had asked for all medicines enlisted in the National List of Essential Medicines be brought under price control, and suggested intervention of the Supreme Court (SC) upon opposition from some GoM members. The Ministry of Chemicals & Fertilizers had proposed these measures based on an observation by the Supreme Court, five years ago. Rejecting an earlier attempt of the government in 2002 to reduce the span of medicines under price control, SC had asked the government to consider and formulate appropriate criteria to ensure essential and life saving medicines are within price control brackets.

CCEA announces new urea policy

On 08 August 2008, the CCEA announced the new import price parity (IPP) linked subsidy policy, which applies to the additional urea produced by domestic manufacturers over and above their current rated capacities. The new policy has set floor and ceiling prices linked with IPP, at $250/tonne and $425/tonne, respectively, based on which the producers will be paid subsidy. The subsidy rates for urea produced through different routes have been fixed at three levels; for additional urea produced by revamping existing units the subsidy is 85 per cent of the IPP, for greenfield projects, the government will seek competitive bidding. The policy will promote JV projects overseas, through firm offtake contracts with prices based on prevailing market conditions and the pricing principle recommended by the Sen Committee.

IWTMA requests for national policy on wind energy

Indian Wind Turbine Manufacturers' Association (IWTMA) is requesting the Central government to introduce a generation-based incentive policy, to help attract FDI and independent power producers (IPPs) for the emerging wind energy sector. The association also opines that a generation-based incentive should be free of ceiling on capacity, which often proves to be a hindrance in attracting FDI.

Tax concessions for power cos.

The Union government has finalised a mega power policy which will allow developers of large and ultra mega projects, to buy equipment without paying customs or excise duty, even if bids are not invited. The present policy offers a tax waiver to large power companies only if they follow international competitive bidding norms during equipment purchase. However, the cost for the capital equipment supplied to power projects will have to be certified by CEA, which will be the monitoring body to certify the correctness of the equipment and eligibility for indirect tax exemptions. The government is soon to draft the formal agreement.

New tariff regime for hydel power generation

The Central Electricity Regulatory Commission has proposed a new tariff scheme for power generated from hydroelectric stations, whereby producers will bear the risk associated with changes in water flow. Earlier, power producers like NHPC, the largest hydroelectricity generator, were responsible only for the failure of equipment and the hydrological risks associated with changes in water flow pattern were borne by buyers. CERC is proposing the new regime for five years, starting April 2009.

Task force proposes upfront tariff fixing for new PPP port projects

The task force formed under the chairmanship of the Planning Commission, has proposed fixation of upfront tariff for major port projects in the country. The new guidelines will be applicable only to new PPP projects, for which bids will be invited or projects awarded under BOT/BOOT or any other arrangement for private sector participation under the Major Port Trusts Act, 1963. The tariff fixation for major ports and private terminals already operational and where bidding has taken place, will continue with existing regulations. The guidelines contain details for fixing upfront tariff for services rendered at container, iron ore, coal, liquid bulk terminals and multi-purpose berths. Once the tariff limitations are imposed, they will apply to all terminals to bid out subsequently at the Port for five years, and will be reviewed after every five years.

The Tariff Authority for Major Ports will recognise capital and operating cost estimates based on the guidelines, and allow a reasonable return on capital employed, which presently is around 16 per cent. According to the new system, before reviewing the tariff ceilings, norms for performance will be set at progressively higher levels than those adopted in the past, and will consider the technological developments. Also, tariff ceilings will be indexed to inflation but only to the extent of 60 per cent of variation in the wholesale price index (WPI) occurring between 01 January 2008 and 01 January of the relevant year.