The New Nation - Internet Edition

THE National Board of Revenue and its officials have obtained more positive responses from tax payers this time. More people have submitted their tax returns for payment of tax. Tax payers from different sectors of the economy are required to submit income tax returns to the National Board of Revenue. The trend so long had been to showing lower ranges of their earnings and pay minimum revenue to the treasury. Some people even did not submit income tax returns and thus avoided paying taxes.

Since the declaration of emergency and the moves of the caretaker government to encourage people to enroll themselves in the list of tax-payers the responses have increased. That being so, the collection of revenue has shown an upturn. Compared to the collection of the last fiscal year, the collection in the current fiscal year has virtually tripled.

The taxpayers have already paid a sum of seven hundred thirty- nine crore Taka to the treasury. The uptrend may continue in subsequent years mainly due to positive response from the taxpayers. If the systems and procedures for calculation of income from different sources are further simplified and the documents thereupon printed and distributed to tax-payers as well as potential new tax payers, the response may be much more positive. If need be, the documents on simplified tax calculation procedures may be distributed to tax-payers through workshops and seminars held at district and upazila levels. Tax officials should also be trained on the more simple methods and procedures of revenue collection.

As reported in the press, the Chairman of the National Board of Revenue has expressed his satisfaction at positive response of the tax-payers. The NBR may take further steps for bringing more people in the tax-net.

It is worth noting that the incumbent caretaker government has taken steps and made some legal and procedural improvements for collecting taxes and rates from different sectors of the economy. The revenue resources thus collected would be spent for meeting the needs of the people and implementing development projects. The response from tax-payers should be welcomed and properly nursed for obtaining higher revenue income. The government, official agencies and the business community have to work hand in hand for increasing revenue earnings of the government.

FROZEN food, mainly shrimp, comprise an important export item of the country. With increased investments by the entrepreneurs, a number of hatcheries have been set up in the southern zones. The production of shrimps has increased over the years. The earnings from export has showed an upturn and investors in this sub-sector are earning returns. The realities in the field of export of frozen food have of late turned difficult, due to sharp competition from exporters of the same product in China, India, Indonesia and Thailand. These competitors have also been producing new species of shrimps, including Vhanamei, which is high-yielding and more delicious. Then again the November 15 cyclone has caused havoc to the shrimp farms most of which have suffered loss of shrimp stock.

Those involved in production and export of shrimps are reportedly reviewing the situation in the country. They have noted the upturn in the price of inputs including shrimp feed and oil that are needed for operating the shrimp farms. Beyond that, the processing of shrimps in the farms and packaging those for shipment to the export markets have turned costlier. The competitors from other countries, have updated their systems of production, processing and shipment for ensuring speedy export.

Those keeping vigilance on the shrimp sub-sector and its increasing contribution to export earnings look for effective support and cooperation from producers and exporters of shrimp. They insist upon the elimination of alleged unfair practices which create adverse reactions in export markets. The tendency among a section of exporters to use antibiotics while processing shrimp have created such reaction in the European Union which is an important market for Bangladeshi frozen foods.

The shrimp farms that have been affected by cyclone Sidr should be rehabilitated with support from banks and financial institutions so that they can not only resume normal production but also introduce improved species of shrimp that are in high demand in international markets to help recovery of the sector. Apart from introducing more productive methods of farming and also improved species of shrimps, shrimp producers and exporters should improve efficiency of shrimp processing and shipment to remain competitive in the market.

M A Gofran

India started working on Biogas Technology in 1900, when they built the first biogas plant in Homeless Leper Asylum at Matunga, Bombay. The plant did not work up to expectation and could neither attract the researchers nor the common people. In 1937, the scientists of Indian Agriculture Research Institute (IARI) could collect biogas from the sewerage line at Dadar, Bombay. The gas was used to rum trucks and the slurry was used as organic fertilizer. Dr. Desai of IARI constructed a biogas plant there using cow dung as raw material. But the output was not satisfactory. In 1951 Jashabhai Patel developed a new design for biogas digester and constructed a few plants there. He named the model as 'Gram Lakshmi'. This was the first successful attempt in the field of biogas technology in India. Following the model about 200 more plants have been constructed. Initially, the plants worked well, but after few years have gone out of order due to leakage and other technical problems.

In 1961, Khadi Village Industries Commission (KVIC) included the technology in their program and created an organization named Directorate of Gobar Gas for the extension of biogas technology. Their main focus was on domestic household biogas plant, but they built a few large size plants also (100 m3 to 300 m3). At Ajit Male Gobar Gas Research Institute (GGRI) was established to further intensify the development of the technology. Until 1976 a good number of biogas plants have been constructed in India and all are of floating dome model. The lower part of the plant is made of bricks and works as digester. The upper part is made of steel and works as gas holder. The mixed slurry is pushed into the digester through a small inlet tank. When the gas is produced, the gas holder moves up and it is used, it goes down. As the model has been developed and widely used in India, it is called 'Indian Model'.

KVIC model has its limitations, particularly its cost. The gas holder alone accounts for 40% of the total cost. As the dome is made of steel, within 3-4 years due to corrosion it becomes unserviceable. These considerations led to the emergence of fixed-dome plants. In 1976 GGRI developed a new model following recent designs developed in China. They gave its name 'Janata Model' (people's model). It is a mixture of fixed dome and floating dome model. This model is 30% cheaper than the floating type and which has the added advantage of using locally available building materials. Systematic practical training of masons on construction techniques is crucial for successful dissemination of this model. If such training was not provided, quality diminished, resulting in a fairly widespread failure of plants. However, the model worked successfully and became popular within a few years. By 1980, KVIC constructed about one hundred thousand biogas plants following Janata Model.

In 1980, government decided to promote and support 20 viable and proven technologies. Subsequently, this was included in the Prime Minister's 20 point program. Recognizing the need and high potential of renewable sources of energy and seeing the success of KVIC, they included biogas technology in their program. India established Commission for Additional Sources of Energy (CASE) in 1981 with the objectives to develop and demonstrate Renewable Energy Technologies (RETs) and launched a large scale project named National Project on Biogas Development (NPBD) in 1981. The program got further momentum, when the Department of Non-conventional Energy Sources (DNES) was created in 1982.

One of the key barriers in promoting RETs is high initial cost and high perceived risk associated with financing new technologies. In order to overcome these, Indian Renewable Energy Development Agency Limited (IREDA) was established on 11th March, 1987 as a Public limited Government Company under the Companies Act, 1956. The main objectives of IREDA are to promote, develop and extend financial assistance for Renewable Energy and Energy Efficiency/Conservation Projects. Indian government has given highest priority to this newly born organization and allocated good amount of money. Concomitantly, this was accompanied by financial and technical assistance from the World Bank, UNDP, ADB, Global Environment Facility (GEF) etc. They adopted a decentralized, multi-agency and multi-model implementation strategy for this nation-wide initiative. At the state level, the program is being implemented through a nodal agency responsible for achieving installation targets, managing finances, monitoring, etc. Other agencies involved at the district level and below are several government bodies such as the District Rural Development Agency, the Block Development Office, local private sector entrepreneurs, local government (gram panchyats), dairy cooperatives and rural non-governmental organizations (NGOs).

In addition, the nationalized banks are also involved in the program through the provision of soft loans to beneficiaries to partially meet construction costs. IREDA provides support up to 80% of project cost and 75% of equipment cost. Their rate of interest is 5% to 12%, moratorium up to 3 Years and repayment period is 12 years. By 2005 IREDA approved 1736 projects with loan commitment of Rs.6945 million and disbursed Rs.3715 million.

In 1992 the Department of Non-conventional Energy Sources (DNES) was upgraded to the Ministry of Non-conventional Energy Sources (MNES). MNES is headed by a Secretary and the activities of the Ministry are divided into different groups, on the basis of end use applications and activities. These groups are headed by Advisers and/or joint Secretaries. They launched a program namely National Biogas and Manure Management Program (NBMMP). With the creation of new ministry, all activities on renewable energy including the IREDA have been placed under the control and supervision of MNES.

Action for Food Production (AFPRO), a NGO established in early 1980s decided to go for wide scale dissemination of biogas technology and gave a proposal to Canadian Hunger Foundation to scale up the promotion of family size biogas plants by involving local NGOs. Based on the proposal Canadian International Development Agency (CIDA) sent a consultant to New Delhi to give final shape to the proposal in 1983 and launched a biogas extension program for 17 years through two distinct phases (Phase I 1983-89; and Phase II 1990-99. Under the project about one hundred thousand family size biogas plants have been built in the country.

From the beginning, NGO participation has been an integral feature of the national program. During the Eighth Five Year Plan (1992-1997) the NGO sector was assigned 25% of the total national target to be implemented with the feelings that, NGOs have close contact with the farmers and their involvement will accelerate the pace of dissemination.

Gradually, a network of NGOs was established to ensure coordination, avoid overlapping and duplication. Phase I was initially launched with 20 NGOs which, with the addition of approximately 20 new members per year, gradually grew to about 60 organizations.

Thirty five of these NGO partners, which came to be known as Program Implementing Partners (PIPs) decided to continue their partnership into Phase II. In addition, new NGOs have also joined the network which at its peak reached 72 members operating more than 90 Biogas Extension Centers (BEC) in 17 states of India. The network, now called the Indian Rural Energy Network (IRENet) is moving forward to take on the challenge of transferring a variety of other renewable energy technologies (RETs).

To farther reduce cost by giving spherical shape to minimize surface area for a certain volume and improve efficiency AFPRO developed a fixed dome model biogas plant named Deenbandhu model, which is one of the most successful biogas plant models throughout India. At present there are more than three hundred thousand plants in India following this model. The model is now being used in other Asian and African countries also.

The availability and consumption of energy is an index of prosperity of a country. The energy consumption per person in India is very low and is about 610 kwh/year whereas China is 1400, Germany 6900 and USA 13000 with world average of 2400 kwh/ year. The Government of India has set up an agenda of electrifying all villages by 2007 and providing power to all by 2012. Fourteen states have so far announced policies for purchase, wheeling and banking of electrical energy generated from various RE sources. Power generation through renewable in India is considered to be more useful for sustainable development and the estimated potential is about 80,000 MW. The renewable energy based power generation capacity presently constitutes about 7,100 MW i.e. 5.9 % of the total installed capacity from all sources. Government has set target to achieve share of renewable energy up to 10% by 2012. They are now using biogas technology to produce electricity. From a single dairy farm in Punjab they are generating 1 MW power.

Mahatma Gandhi, the founder of India gave high priority to the promotion of rural energy. The then Prime Minister Indira Gandhi, on 13 August 1975 passed hours together with the scientists to find means and ways to explore new renewable for meeting energy crisis. All the state leaders without any exception provided all necessary support for the promotion of renewable sources of energy. Declaring renewable energy policy, creation of KVIC, CASE, DNES, MNES, IREDA, provision of bank support are the examples of their commitment. The President in his address to the nation on the eve of Independence Day 2005 set an aim for developing an economy that would be largely driven by renewable energy, especially in the light of uncertainties in global oil prices. Energy security and energy independence have taken centre stage in the planning process. The country is developing alternate fuels considering the aforesaid concerns.

Consequently, new and renewable sources of energy have emerged as a development imperative. The Indian scientific establishment has been working on the development of various renewable energy systems. As a result India has become one of the largest producers of renewable energy. They are now planning to see an India with 100% renewable at the end of this century, when conventional sources will have no existence.

Due to commitment of the state leaders, policy interventions and institutional reforms a cumulative total of over 4.45 million plants have been set up in the country against a theoretical potential of about 14.34 million plants up till December 2005. In addition, 3952 nos. of community/institutional/night soil based biogas plants also installed.

Total Family Type Biogas Plants: 1981-82 to 2005-6 along with some important states

No of plants Estimated potential Cumulative achievement % Achieved

Total 12,339,000 3834,080 31

Arunachal Pradesh 7,500 2,210 29

Assam 307,000 58,667 19

Himachal Pradesh 125,000 44,866 36

Jharkhand 100,000 2,083 1

Manipur 38,000 2,128 5

Meghalaya 24,000 4,226 17

Mizoram 5,000 3,470 69

Nagaland 6,700 2,617 39

Orissa 605,000 224,373 37

Uttaranchal 83,000 6,603 7

West Bengal 695,000 263,587 38

Andamand &Nicobar Island 2,200 137 6

Total 14,337,400 4,449,047

(The writer is biogas consultant, Grameen Shakti, Grameen Bank Bhaban, Dhaka.)

Source: MNES-India

After the fall of the erstwhile Soviet Union, U.S.A emerged as the sole superpower of the world. With depleted economic and military power, Russia was not in a position to challenge the newly acquired supremacy of America. Like any other prudent and ambitious superpower, America took the advantage of imbalance of power in the international arena and made elaborate plan to make foray into the news areas of interest and consolidate the existing strongholds to expand its sphere of influence. It focused on East European nations and the former Soviet Republics. Though much smaller and weaker in size and power, Russia was still a significant country having the power to alter the balance of power in the region. Knowing this fact, America moved quickly to forge deep economic and military relations with the former WARSAW pact nations and Soviet Republics. Another objective of America's quick move to forge strategic level relations with the former Soviet satellite nations was to de-nuclearise them and utilize the enormous energy reserve of the central Asian nations.

Russia, in the mean time, was trying to cope with the new situation emerged due to adopting capitalism and democracy as the system of government. But the strategic thinkers of the country were aware of the American strategic game plan near the Russian border and East Europe. They soon advanced to China for help. China, on the other hand, with over 1 billion people was finding avenues to elevate itself to the level of a superpower. So, the Chinese leaders viewed the Russian offer for deeper military and economic relations favourably. The two countries signed various economic and military agreements in the meantime. Russia found a willing partner, which was also looking for gaining power to offset the American influence in East Europe, and particularly in central Asia, Korean peninsula, and China Sea. The cooperation between the two giants commenced in a majestic fashion to counter, according to them, American hegemony.

China needed new and more modern training and technology to upgrade various units of its military. Observing closely the gulf war, China realized the need for a smaller, faster and more flexible military to win a regional war. So, they sought to replace the old military thinking with a new and more sophisticated one. They proceeded to buy modern jet fighters from the Russian air force to replace its ageing fleets of F-7s and A-5s. With a view to modernize the air force they procured SU-27, SU-30, and ordered for SU-34 ground attack bombers from Russia. It won't be irrelevant to mention that Russia needed these big-ticket orders to sustain its own military industry. So, the agreements were signed pretty quickly. China got these planes along with production facilities. The Russian experts trained the Chinese technicians and pilots to operate these highly sophisticated jet fighters.

China and Russia expanded their cooperation in naval sector too. Chinese dilapidated Luhu and Jiangwei class frigates were completely unsuitable for a navy that aspired to be a blue water navy within a few decades. So, they ordered for highly advanced nuclear missile guided Sovremenny class destroyers. They bought a few units to bolster its navy. The area of naval cooperation was further expanded to modernize Chinese antiquated submarine fleets. China procured quite a few Kilo class diesel electric submarines armed with lethal torpedoes. They also proceeded to upgrade the existing Song and Ming class submarines with borrowed French electronic equipments and combat management systems.

Due to geo-strategic reasons, China could hardly overlook the need of the ground forces. They advanced to the Russians for modern technologies to produce better APCs(Armoured Personnel Carriers), Tanks, MBRLs(Multi barrel Rocket Launchers), IFVs(Infantry Fighting Vehicles), and air defense systems. Russia proved to be a willing partner up to this point and did not hesitate to sell military hardware as per Chinese demand.

But historically, the relationship between China and Russia saw many ups and downs. The erstwhile Soviet Union forcefully occupied millions of kilometers of land from China in the past. They fought a bitter division level war in 1969 over disputed land along the Sino-Soviet borders. Though they have signed border agreements in 1991 and 2004 to resolve the land disputes amicably, a sizeable portion of the border is still not properly demarcated. Keeping in view of this fact, the Russians are not interested to see a China powerful enough to alter the balance of power in the region. The recent anti satellite missile test by China rang an alarm bell in Russia too. America was pretty vocal against such missile test, Russia, on the other hand, doubted the intention of the Chinese military modernization. The Russian strategic planners want a submissive partner in the strategic game against America that they will be able to use as a pawn to counter America. China, on the other hand, wants to emerge as an independent superpower to grab its share in the international political arena. A clear conflict of interest has surfaced that may impede the ongoing military cooperation between the two giant neighbours. Besides, Russia also has to take into account the concerns of America. In the recent time, the American policymakers have adopted an aggressive strategic policy to calm down Russia, which is selling arms to anti-American nations to expand its sphere of influence and make healthy profit to sustain and modernize its defense industry.

It can be noted that the Bush administration has taken a bold strategic initiative to install missile defense systems in some European and central Asian countries. The Russian military experts view this move as detrimental to the nation's security and an element with potential to alter the balance of power in the world.

Due to the above reasons, we have seen reluctance in the Russia government to provide more modern military hardware to China. One more thing that needs attention is that, China is aggressively pursuing its own plan to build a modern self-reliant defense industry that requires technology from a trusted source. It just doesn't want to be a mere purchaser of high tech military weapons any more. It wants unprecedented level of access to Russian most modern military technology. But how far the Russians will be willing to entertain Chinese wishes will remain to be seen.