# The Parliamentary   Debates Official Report

IN THE EIGHTY-SEVENTH SESSION OF THE RAJYA SABHA 
Commencing on the 18 *th February,* 1974/*the 29th Magha,* 
1895 *{Saka)* 

## Rajya Sabha

Monday the ISth February, 
1974[the 29th Magna IMS (Saka) 
The House met at thirty five minutes  past twelve of the clock     MR.  CHAIRMAN in the    Chair. 

year, as we have these last three years, tl has been a continuous testing of the nation's mettle. The nation has survived these difficulties and has not allowed them to come in the way of its basic endeavours towards development. This is no mean achievement and should not be ignored, even though positive aspects are not apt to be overlooked in difficult times. 

## Presidents Address

SECRETARY-GENERAL:—Sir, I beg to There have been a number of welcome lay on the Table, a copy (in English and Hindi) of the President's Address to both the Houses of Parliament assembled together on the 18th February, 1974. 

{Text of the President's Address in English) 
Hon. Members, You reassemble at a time developments. One of these is the manner in which the people of Andhra Pradesh have solved the problem of intra-regional tensions which only a year ago appeared insurmountable. I congratulate all sections of the people of that State on the wisdom and spirit of accommodation which they displayed. The six-point formula which has been evolved should lead to fuller integration and to the accelerated development of the backward areas of the State. 

of difficulty and trial. The people face many hardships as a result of high prices, scarcity of essential commodities and interruptions in production and supply caused by strikes, bundhs and unrest, which in some parts of the country have taken a violent turn. The international oil crisis has cast an uneasy shadow on the economy. These unforeseen events have undoubtedly slowed down the pace of our social and economic development. In this situation, the people's mood is one of understandable anxiety. I have deep sympathy with the people, particulary the poor sections, who have had to suffer. 

Seldom has a country faced such gigantic Two other hopeful trends are in the economic sphere : the rise in export earnings and the improvement in the performance of public undertakings. Until about two years ago, the low rate of growth of our exports was a cause for considerable anxiety However, since 1972-73, there has been a marked improvement. In that year, our exports   increased   by   22%.    In the first problems in  quick succession,  year after tight months of 1973-74, despite a variety •of constraints, exports have increased 20.8%. We are confident that with a greater national effort, exports can be pushed up substantially. 

Only aboui two years' 
ago, the continuing losses of our public enterprises were a cause for concern. It is. therefore, a matter of salisfacton that consequent to a number of measures taken by Government, our Centra] 
public undertakings, taken together, have increased their production and earned a net profit for the first time in 1972-73-This year the position is expected to be much better. The utilisation of capacity will generally increase, the profits of some units are expected to be higher and in others the losses will be considerably reduced. 

The rise in prices and the scarcity of food articles, particularly in deficit States, is of prime concern to the people and the Government.   The   expectation   that   the   
good *kharif* harvest of 1973 would help to stabilise prices has not materialised.    
Partly, this is due to the internal inflationary situation. The provision of work and relief on a hitherto unprecedented scale to I he people of drought affected  
areas, without jettisoning investment on Plan programmes and the requirements of defence, has necessitated increased deficit financing.   The situation also reflects the effect  of  the   international  economic crisis on our country.   The steps   toward detente between nations in different parts of the globe had raised hopes of a favourable climate fot the speedy progress of developing   nations.    However,   the international economic situation has created  new and commplex     problems. The   international monetary crisis, followed by the steep rise in   the   prices of many  commodities has affected poorer countries like India more than olhers.   The prices of almost all com-nodities that we have to import have gone up by two to four times in the past few months, while the prices of our own ex )orts have risen, if at all, only  marginally. 

The serious situation created by these developments has been aggravated by hoard ing and speculation by unscrupulous traders and by interruptions in production and movement caused by lapses on the part of management and by some misguided sections of organised classes. Stocks a.'e also being hoarded by producers and affluent consumers. All these sections of our >eople must realise that they canrtot survive unless the nation as a whole survives. Resort to voilenee and bwtdhs only worsens the situation. The poor suffer the most. Government will deal firmly with hoarding and with attempts to interrupt production, n jvement and distribution. 

## Supplies To Deficit Areas And \ ..Nerable

! sections of society can be maintained through j the public distribution system on!; if there is adequate procurement of grains. Appreci ating the need to compensate the farmer for the rise in the cost of production. Govern ment increased procurement prices substanti ally for lite current *kharif* cereals. While the procurement of rice is satisfactory in many States, it is unfortunate that the pro curement of coarse grains did not gather momentum. The *kharif* procurement season has still several months to go. The situation has been studied in detail, State by State, and Government has indicated the steps to be taken by State Governments. This year's experience in procurement and distribution will be fully considered in taking corrective action for the coming *rabl* season. I wish to impress upon the State Governments, with all the earnestness at mj lod, the  importance! of achieving procurement targets.   It has to be realised Central Government can distribute only as much quantity as the State Governnents procure ind make available to it. Therefore, all State Governments, whether they be *ot*   sur- 
| and to maximise our earnings from exports. 

deficit States (which also have 
! Efficient and  increased production of our I own sources of energy and of export-oriented! 

surplus areas), should give over-riding importance to this matter and to the checking of hoard ing and smuggling. 

Judged by world standards, we consume industries, utmost economy in the use of all products aid selective restraints on domestic consumption of exportable goods arc esseni ti'il for the success of this effort.    I appeal to 
1 all sections of the people    to co-operate fully with the measures that will be taken by Government. 

very little oil. Yet the increased prices of crude oil alone will cast on us an additional burden of rupees eight hundred crores a year in foreign exchange. This poses an unprecedented challenge to our economy. 

We can understand the anxiety of oil prowill be pursued with vigour. The exploration which has begun in one off-shore area will be intensified. We have already r joint virtue for production of crude oil in Iran.. The Oil and Natural Gas Commission has started exploration in prospective area in Iraq and similar venturers clsewere are under consideration. 

## I

ducing countries to conserve their depleting reserves of crude. We also appreciate their desire to strengthen and diversify their economies through investments financed by larger revenues from their exports of oil. We exiend our support fully to them in their efforts to secure a dominant role in the international trades in oil which has hitherto been controlled by a handful of private oil companies. We have cordial relations with oil-exporting countries. The adverse impact of the rise in oil prices on the economies of developing countries like India is recognised by the friendly countries in Western Asia. We have to devise ways and means of ensuring that this genuine concern is adequately reflected in concrete measures. We are in close touch with oil producing countries and hope that we can find just solutions through appropirate mutual arrangements. 

We have satisfactory reserves ofcoal-and Schemes for the generation of power will be given high priority. Special attention is being paid  to improving the   working of existing units and ihe earlier commissioning of projects which are in an advance state of construction.   This will add a  sizable quantum of power.     In addition, a large number of projects are to be taken up and completed during the Fifth Five Year Plan period.   The necessary approvals for these projects have been given and in the case of thermal plants, the coal fields from which coal will be supplied have been indentifieo. and linked up for particular projects.   A coordinated  development   of coal   fields, transpottation and powe.' plants will be ensured.   This massive programme calls for the reorganisation of the electricity industry. 

a sizable potential of hydro-electric power. We possess the technology for nuclear power generation. We are hopeful that our efforts at oil exploration will yield results. Given a little time and the necessary resources, we should be able to develop these to meet our needs. But the intervening years will be difficult and will call for the most disciplined effort on our part and understanding from our friends. 

Government is organising   massive insulating our projected targets of economic growth from the rise id prices of oil lies in larger production and transport of coal. Department of Mines and the Railways have to gear themselves to the task of raising and moving the coal to various centres of consumption.   The State Governments on effort to develop our indigenous sources of energy The search for oil, on-shore and off shore, The key to the success of our efl'oits in For the first time integrated sub-plans are their part shoul'i ensure ths t necessary basic facilities like power and feeder roads ;>.re mide available. A great responsibility rests on the managements and the one and a half million workers of the mines and the Railways. With their co-operation, the production of coal will be increased in 1974-75 to 90 million tonnes, if not more, and a steady flow will be maintained to keep the wheels of industry running smoothly. 

In the present situation, the maintenance being prepared within the overall framework of State Plans for the development of backward areas, including hill and tribal areas, so that all sections of the people achieve certain minimum levels of sociftl consumption in elementary education, rural health, drinking water, provision of home sites, slum clearance, rural roads and rural electrification. The endeavour will be to integrate the services under health, family planning, nutrition, education and social welfare at the field level. 

It is a measure of the maturity of our of production, particularly in essential sectors, is an obligation we owe to our people. In recent months, the workers have been experiencing considerable economic difficulties. In spite of this, our workers, who have a proud heritage of partiotism, know very well that the situation can be improved only if the social tasks of production are viewed in the larger national perspective. Therefore, workers have to make a supreme effort to increase production and to ensure quick and uninterrupted movement. This is the only way in which they can contribute to relieve the shortages faced by the common people. 

## Ths Draft Fifth Five Year Plan Provides

democracy that notwithstanding the presert economic difficulties, a fifth of our population is exercising franchise this month in elections to State assemblies. I appeal to all politica parties to ensure peaceful conduct of the elections. We are proud of our record in this regard, as free and peaceful elections constitute an important feature of a stable democracy. Successful democracy consists not only of the freedom to choose but of a realisation that in spite of differences, the parties in power and in opposition abide by certain basic rules of conduct, the more important of which is the avoidance of all forms of violence and extra.-constitutional methods. 

Early this month, Gujarat has come under President's rule. It is the respo Hty of all citizens to help in the establishment of a climate of self-restraint and cooperative effort so that the people's hardships can be alleviated. 

In the year under review, our foreign policy was pursued with vigour and registered some notable successes. Relations with our neighbour, particularly Bangladesh, Bhutan, Nepal and Sri Lanka, as also Burma and Afghanistan, saw noticeable improvement in building up a policy of peace, friendship and mutually beneficial co-operation. 

the framework and the programme to tackle the twin problems of food and fuel. The strategy for agriculture is based on a combination of the application of new technology and widening the base of production. The emphasis is on programmes for command areas and marginal areas on the one hand and for the small farmers on the other, so that the very process of increased production ensures wider distribution region-wise as well as between different sections of the people. The Plan gives special importance to the development of power, coal, oil and transport and of industries like fertilizers which are vital for agriculture. In a number of sectors, a large part of the output levels envisaged in the Plan is based on the assumption of full and more efficient utilisation of existing capacities. This is as much a part of the Plan as new investment. 

The human problem of the persons stranded in Pakistan, Bangladesh and India after the conflict of 1971 is on the way to satisfactory resolution followig the historic initiative taken by India and Bangladesh The three-way simultaneous repatriation began in September last and is expected to be completed before the middle of this year. My Government is prepared to enter into negotiations with Pakistan to implement the rest of the Simla Agreement. We sincerely hope that the Government of Pakistan also desires this. 

We have maintained a constant dialogue with Bangladesh on all issues of mutual interest. The Governments of both the countries have made concerted efforts to further strengthen friendly relations and cooperation in commercial and economic fields. 

T am happy to say that the exchange of 
1973, I had expressed our support to the Declaration of November 1971 by Indonesia, Malaysia, Philippines, Thailand and Singapore that South-east Asia should be a zone of peace and neutrality. Along with other countries of the region, we have always urged that the Indian Ocean should be a zone of peace and should be free from military bases of big powers. This has been emphasised by the General Assembly of the United Nations and the non-aligned countries who met at Algiers last year. It is, therefore, a matter of deep concern and disappointment to us that the United Kingdom and the United States of America have entered into an agreement for the establishment of a military base in the island of Diego Garcia in the Indian Ocean. We consider that the establishment of the military base is against the interests of peace and we sincerely hope that the wishes of the peopleofthis region and of the United Nations will prevail in this matter. 

visits by our Prime Minister and the Prime Minister of Sri Lanka has resulted in the activisation of economic relations and cooperation between the two countries. The question of the status of all persons of Indian origin in Sri Lanka has been fin" Uy resolved and considerable progress has been made in finding a solution to othe questions. 

The visit of our Prime Minister to Nepal 
| We attach the greatest importance to our j friendly relations with countries of West I Asia. We are pursuing these in the emer-| ging context of greater economic exchanges i between developing countries. We have ! concluded agreements with the Republic i of Iraq covering many fields of such cooperation. 

The growing friendship bet-r ween India and Iraq is reflected in the posi-j five response of Iraq in finding a solution ! to the problems arising from the rise in oil I prices. 

and of the King and Queen of Nepal to India symbolised the close relations between us, which are based on mutual trust and commonality of interets. We admire greatly the resolve of the Government of Nepal to advance the economic and social interest of its people, a task in which we have been privileged to participate according to the wishes of the Government of Nepal. 

Our friendly relations with Afghanistan established in West Asia without the vacation of Israeli aggression from all occupied Arab territories and the restoration of the rights of the Arab people of Palestine is well-known. There have recently been some positive developments and we hope that the West Asia Peace Conference will lead to lasting peace and stability in this region. 

exchanged between Iran and us, there has are being developed and strengthened further by mutual co-operation in many fields. Several projects in which we will be able to participate under our technical and economic co-operation programme have been identified in Afghanistan. 

During my visit to Malaysia in March Our view that no stable peace can be As a result of the high-level visits recentl y been a better understanding of each other's policies and many new avenues of mutually beneficial co-operation have been identified. 

Government will pursue these \ igorously. 

Yet another milestone was reached in our off these leaders on world issues, their commitment to peace and their increasing interest in the development of India and other countries of Asia. The visit of our Prime Minister lo Canada in June 1973 helped to further strengthen the close ties between the two countries. 

Our -elations with African countries are relations with the Soviet Union with the exehangeof views and the Agreements that were signed when we had the pleasure of playing host to General Secretary Brezhnev in November 1973. The Agreements put the economic relationship between the two countries on a long-term footing. We are gratified that Indo-Soviet friendship has progressively attained newer levels of maturity and co-operation. 

close and co-operative. Tlte Vice-President visited Tanzania recently and participated in the tenth anniversary of the Revolution in Zanzibar. In line with our well-known support for the struggle of the African people against colonialism and racism, we hail the emergence of the new State of Guinea-Bissau. 

In June 1973 our Prime Minister visited Close co-operation with other non-aligned Yugoslavia. 1 paid a visit to Rumania and Czechoslovakia in October 1973. Later in the year, we welcomed General Secretary Dr. Gustav Husak of Czechoslovakia and an agreement on economic cooperation was signed with Czechoslovakia. President Tito's visit last month gave yet another countries has been one of the important aspects of our foreign policy. The Prime Minister attended the Fourth Summit of nonaligned countries in Algiers in September, 1973. The Conference demonstrated a large measure of agreement in the political field and also the resolve of member countries to co-operate with one another more concretely. 

opportunity for a detailed exchange of views on recent developments affecting nonaligned countries. 

Hon'blc Members, the basis and nature of There has been a conscious effort on the part of my Government and that of the United States of America to strengthen relations on the basis of equality and mutuality of interests. An important result of this is the agreement on the question of U.S. 

l upee funds in India. 

relationships between the countries of the world are changing rapidly; so also many concepts which held sway during the last two decades. Amidst all this, it is a matter for satisfaction that the basic tenets of our foreign policy since Independence have been cosistently vindicated. 

The conclusion of the Commercial Co-
During this session you will consider the demands for grants for the next financial year and the pending and new legislative business. Government will bring before Parliament a Bill to amend the Prevention of Food Adulteration Act to enable more vigorous enforcement. 

Among other operation Agreement with the European Economic Community is a significant step and with this, our relations with the enlarged Community have started well. We are con - fident that trade and economic co-operation between the Community and India will grow fast in the coming years. 

measures are the Bills for establishing Central universities at Pondicherry and Hyderabad, Bill to further amend the Ninth Schedule to the Constitution and a Bill to amend the Agricultural   Refinance Corporation Act to The views exchanged during the visits of the Prime Minister of two sister countries of the Commonwealth—Australia and New Zealand-indica daated the enlightened stand 
 
enable it to extend assistance directly to Area Deveioment Corporations. 

Hon'ble Members, I summon you to the exacting tasks of 1974. The formidable challenges that the nation faces can be turned into an opportutnity by a determined people. 1 have no doubt that as the representatives of the people, you will give the right lead in a spirit of dedication and constructive co-operation and that the country will overcome the present difficulties and emerge stronger and more united to advance along the chosen path. 

(Text of the President's Address in Hindi) 

## Obituary Reference

MR. CHAIRMAN: It is with profound feel ings of sorrow that I have to refer to the passing away of Professor Satyendra Nath 
 