May 27, 1998
The World Bank has postponed an 865 million dollar loan package to Indiaas an immediate reaction to the Pokhran Nuclear Tests. The postponed loanpackage includes three World Bank loans and a ten million dollar loan fromthe International Finance Corporation. The World Bank package comprises130 million dollars package for a renewable energy programme, a 450 milliondollar loan to develop a power-grid and a 275 million dollar loan to improvethe highway network in Haryana. Two of these loans were to be voted atthe Board of Governors meeting in Washington on May 26. But sources saidseveral executive Directors went by the US request and wanted more timeto consider the matter. The actual impact of the postponement on Indiawould be about 50 to 100 million dollars a year. The World Bank has notspecified when these loans would again be put up before the board.
On Monday, the European Union had also criticised the nuclear testsand said it would attempt to delay the World Bank loans to New Delhi. Indiahas reacted strongly to the European Union's condemnation. A press releaseissued by the external affairs ministry yesterday said, the country's policiesare determined by its national interests and any suggestions that Indiashould conform to an international regime or face economic consequencesare unacceptable.
Canada says India has damaged its chances of getting apermanent seat on the UN Security Council by conducting the nuclear tests.The Canadian Foreign Minister, Mr. Lloyd Axworthy told a ParliamentaryCommittee in Ottawa that the International Community has to show its rejectionof the acquisition of nuclear weapons by a country for the purpose of elevatingits status.
The fallout of the Pokhran tests will dominate the proceedingsof the two month long budget session of Parliament beginning on May 27.Prime Minister Atal Behari Vajpayee will make a statement on the issuein the Lok Sabha immediately after question hour. Both the Houses willdebate the statement for two days and the Prime Minister will give hisreply tomorrow. The debate will be telecast live on Doordarshan. Amongthe important legislations likely to figure during the session are theLokpal Bill, the Electricity Bill to replace the recent Ordinance and theBill for the creation of new States of Chhatisgarh, Vananchal and Uttaranchal.The election to the post of the Deputy Speaker of the Lok Sabha is alsoscheduled during the session. The Railway Budget will be presented on Fridayand will be preceded by a status paper on the Railways. Tomorrow, the economicsurvey for 1997 will be presented while the General Budget for 1998-99is to be presented by the Finance Minister, Mr. Yashwant Sinha on Monday.All India Radio correspondent says, though the Centre has tried to convincethe opposition about the compulsions for the nuclear tests, political partiesparticularly the Congress and the left will adopt an aggressive postureas they fear that the BJP will try to take political mileage out of theissue.
The Cabinet on 26 May approved an amendment to the Explosives Act providingfor stringent punishment including the death sentence for possessing sophisticatedexplosives. This amendment will also be brought in the budget session.
The Cabinet Committee on Foreign Investments has clearedsix major projects amounting to fifteen thousand crore rupees. An officialspokesman said in New Delhi that the Committee approved the expansion ofMangalore refineries to nine million tonnes and setting up of an Oil Refineryat Vadinar in Gujrat. Among the other projects approved, is the 6,300 crorerupee Cuddalore Thermal Power Plant in Tamil Nadu, which will use importedcoal from Indonesia, Malaysia and Australia as fuel.
The Jammu and Kashmir Chief Minister, Dr. Farooq Abdullah has urgedthe world community to take note of the increasing barbarity of crimesbeing perpetrated by Pakistan trained militants in the State. Talking tothe visiting Ambassadors of Belgium and Finland in Srinagar on 26 May,he said, even mourners at a victim's funeral were not spared. Calling Pakistanthe mother of all terrorism in the world, Dr. Abdullah said influentialcountries must put sanctions against Pakistan instead of helping it.
According to the American Cable News Network, Pakistanhas completed preparations for a nuclear test. CNN says Islamabad couldconduct a nuclear test in a matter of hours if it decides to go ahead.US officials have, on the basis of satellite intelligence, also alertedpolicy makers that Islamabad is close to being ready to test a nucleardevice. However, News Agencies report that no confirmation is immediatelyavailable about this from Islamabad.
Meanwhile, Qatar and Oman have decided to join Pakistan in its protestover India's nuclear tests. The messages offering support were deliveredto Prime Minister Nawaz Sharief by special envoys on 26 May.
The country continues to reel under intense heatwave conditionswith the national capital recording the hottest day in May in the lastfifty years on May 26. The mercury touched 46.2 degree celsius in Delhi,5-degrees above normal. Dholpur in Rajasthan was the hottest place in thecountry with a maximum temperature of 49.5 degree celsius on may 26.
The President, the Vice-President and the Prime Ministeron May 26, led the nation in paying homage to Pandit Jawaharlal Nehru onhis 34th death anniversary. They visited Shantivan in New Delhi this morningand paid floral tributes at the samadhi of Pandit Nehru.
The Congress President, Mrs. Sonia Gandhi visited the samadhi and paidher tributes. A special prayer meeting was held on this occasion.
The Defence Minister Mr. George Fernandes has supportedthe idea of inducting nuclear weapons in the Indian Armed Forces. In atelevision interview he said without weaponisation the whole question ofbeing a nuclear weapons state does not make any sense. He said nuclearweaponisation is necessary as well as inevitable. Asked whether this meantthat Indian missiles will now be equipped with nuclear warheads the DefenceMinister said this is precisely what nuclear weaponisation means. Mr. Fernandessaid the government decision to impose unilateral moratorium on furthernuclear testing will not affect the weaponisation programme. Stating thatno time frame has been set as of now to complete the programme.
The Congress President Mrs. Sonia Gandhi has charged thegovernment with not taking the country into confidence on the deteriorationof the security environment which warranted nuclear tests. Talking to newspersonsin New Delhi she alleged that the government lacks transparency as itsministers are making different statements on the issue. Earlier she addressedthe general body of the Congress Parliamentary Party which met in New Delhito prepare its game plan for the budget session.
The Prime Minister has indicated some policy changes inaccordance with the national agenda adopted by the BJP and its allies inthe government. Addressing the meeting of the BJP Parliamentary Party inNew Delhi, Mr. Atal Behari Vajpayee said his government approachs the firstbudget session with a sense of achievement and pride. He said the issueto undertake nuclear tests was being discussed for a long time and hisgovernment has taken a decision as it is a part of the national agenda.
The Prime Minister also said that the increase in procurement priceof wheat has helped the farmers and resulted in record procurement. Mr.Vajpayee said the raising of retirement age by two years will in no wayharm the interests of unemployed youth as the recruitment age has alsobeen raised by the same period.
The Commerce Minister Mr. Ramakrishna Hegde told a Conferenceof Indian Commercial Representatives in London that the key growth sectorsfor exports will be identified. Mr. Hegde said the missions should alsokeep a data bank of importers to maintain close liaison with customersand visa restrictions for professionals from India must be relaxed. Hesaid fighting the restrictive trade practices by the developed countrieswhouse anti-dumping and anti-subsidy measures to check Indian exports haveto be tackled by the commercial representatives.
The Rupee closed at 41.15 against the US dollar down from 40.96 of May26.
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