Congress President Smt Sonia Gandhi, Dear colleagues of the CWC, Members of the AICC, Friends,

This session of the All India Congress Committee is a historic session. Not only is it the first AICC session after the formation of our new government, but also the first session where our party will have to grapple with the challenge of running a coalition government at the Centre.

I look upon this session as one of great consequence and significance that will give us the direction for the coming years. We have to chart a course that simultaneously respects the interests of our coalition partners, incorporates the basic tenets of our Party's ideology and fulfills the mandate that have been given to us by our people. The Resolutions we will pass/have passed today will become the beacons that guide us on this challenging path.

Friends,

We also meet here today to express our sincere gratitude to the people of our country, for renewing their faith in us; to the Congress President Smt Sonia Gandhi, for her inspiring leadership and her pivotal role in the rejuvenation of our Party; and, to all our allies for joining us in the battle for secularism, for social justice, for economic progress and for the preservation of the values we have cherished as a secular, democratic Republic. The people's mandate was clearly in favour of Shrimati Sonia Gandhi leading the Government as Prime Minister. All our allies were also of the same view. Soniaji's decision to renounce this august office is an unprecedented act of sacrifice with few parallels anywhere in the world. I was personally overwhelmed by the great trust she has reposed in me. I pledge to you all that I will do everything in my power to be worthy of this trust and confidence.

It is only natural that an air of optimism and hope pervades the Rajiv Gandhi Nagar where we have all gathered today. However, I come here to address� you with a deep sense of humility, acutely aware of the immense responsibility I have been entrusted by our President, Smt Sonia Gandhi and each one of you, fellow Congress members.

The mandate we have received has been obtained in the face of overwhelming odds and severe onslaughts on the Party and its leader. It is a mandate that we share with our coalition partners but it is a mandate that places the primary responsibility for fulfillment on the Congress party. It is a mandate that has been given to us mainly because of the untiring efforts, courage, determination, inner strength and vision of our Party leader. We are where we are today because of the leadership provided by her. We are proud and grateful that our Party cadres and senior colleagues responded to this leadership and strove valiantly during the political battle of the last elections.

Friends,

We meet today just a day after the 60th birth anniversary of our illustrious and young former Prime Minister, Shri Rajiv Gandhi. While we continue to mourn his untimely loss, we derive strength from his endeavours and his achievements in so short a time. He was the one who truly set the direction for equipping the nation for entering the new millennium with a progressive, modern and scientific outlook. Major strides in communication and information technology, in strengthening democracy at the grass roots level, in education, in ending a decades old insurgency movement in Mizoram, in opening a fresh dialogue with China, in launching the technology missions, and in many other areas, have been the direct results of his vision and efforts, and have given us today a firm platform to launch further initiatives for growth and development. It shall be our endeavour to carry forward the work he had started.

Drought and Floods

In the very first few weeks of its tenure, this government ran into a few crises created by nature. In May / June, the prospect of a drought was looming large. The delay in the monsoons in many parts of the country had given rise to tremendous apprehension in my mind. Another year of drought, so close on the heels of the drought that ended on in 2002, would have devastated millions of our people and placed unbearable strain on our new government in its very first year. Unlike in the past, however, the government machinery swung into action and we made adequate preparations to meet the challenge of drought.

It was a great relief when the monsoon strengthened and revived in the last week of July. In most States there has been significant improvement and more sowing. However, some states suffered from a problem of plenty. Floods' affected many regions of the country. Once again, the government was pro-active and worked in close cooperation with state governments to provide timely relief to the affected people. I must mention that the level of support from the Government in Delhi was on an unprecedented scale - both in timeliness and level of operations. The Armed forces and civil administration have worked together to provide relief and they are currently on full alert in Himachal Pradesh to deal with another contingency posed by the threat of flash floods from the lake formed on the river Parichu in Tibet due to blockage caused by landslides.

Friends, as I have already said more than once, the management and utilization of water has emerged as a major national challenge. We cannot allow the sacred waters of our ancient land to divide us. I urge all of you to take a national and holistic perspective on this vital issue.

The Challenge of Inflation

Friends,

I know that the issue of inflation must be bothering many of you. There is apprehension that there may be a campaign by our opponents about our management of inflation.

The last time our party was in government, in the mid-1990s, we left behind a healthy and robust economy, with an unprecedented and historic record of over 7.0% rate of economic growth for three years in a row, rising foreign exchange reserves, declining external debt and a modest rate of inflation. There was an air of optimism and the Nation was looking forward to a further acceleration of growth. Regrettably, in subsequent years the economy slowed down, and the fruits of growth were unevenly distributed. Our government is committed to pursuing higher economic growth that is at the same time more equitable and people-centered.

Given this commitment to the people we will give the highest priority to taming inflation. The sharp rise in international prices of petroleum products and fears of an impending drought have no doubt strengthened inflationary expectations. However, we are confident of bringing the situation under control. Let there be no doubt on that score.

We have adequate foreign exchange reserves and our balance of payments is in surplus in the current account. We have comfortable food stocks and the monsoon has revived well. The supply situation is agreeable. If, despite these favourable conditions there is some pressure on the price front it is largely on account of either international factors or a consequence of policies pursued by the previous government with respect to the management of money supply and energy pricing. Seasonal factors accentuated by a weak monsoon in July also fuelled inflationary expectations. I wish to assure you that price stability is one of the highest priorities of the government and our objective of growth and enhanced investment with price stability will be tenaciously pursued.

Internal Security

The internal security and law and order situation in the country have been the focus of a considerable part of my attention since I took charge of the Government. The three main areas of challenge are cross-border terrorism in Jammu and Kashmir, insurgency in the North East region and naxalite violence in some states. We need a multi faceted approach to meet this challenge. The machinery for the enforcement of law and order has to be made more effective. At the same time, we must also deal with the underlying causes which give rise to a feeling of alienation among a section of the people, the large majority of whom wish to live in peace and tranquility. The administration at all levels must become more focused on equitable and people centred development. The development dimension and human rights concerns cannot be lost sight of.

We are committed to paying equal attention to the genuine concerns of the people and redressing their grievances. We will take steps to accelerate the tempo of social and economic development so that young people in Jammu and Kashmir have ample opportunity to live a life of dignity, self-respect and prosperity. In pursuit of peace and normalcy our Government has repeatedly expressed its willingness to talk to any group provided they abjure the path of violence. Cross-border terrorism continues to pose a serious challenge. We shall meet this challenge with determination.

Activities of underground groups and ethnic tensions have continued to vitiate the atmosphere in some parts of the North Eastern states. We are committed to restoring normalcy to the region so that the people of the North-Eastern region can live normal lives and the region can prosper economically. Our government will pay adequate attention to accelerating the pace of development in the North Eastern region and to ensure that this development takes into account their legitimate aspirations.

As for the situation in Manipur, it is being closely monitored and we will take whatever steps are required to ensure that the people of Manipur live in peace and dignity.

Friends,

Both in Jammu and Kashmir and in the North East region the Congress Party has historically had an important presence. We are the only national party in whom the people of these regions have reposed their trust time and again. We owe a special debt of gratitude to them. However, we also have a special responsibility. In Jammu and Kashmir Soniaji took a remarkable decision in the national interest by agreeing to support the Government led by Mufti Mohammed Sayeed. I have a particular interest in the welfare of the people of the North Eastern region having represented the region in the Rajya Sabha for many years now. The Congress has been a uniting force, a force for good and a force for change. We must rededicate ourselves to the cause of the emotional integration and economic development of these regions. We need to have a new development paradigm here which revitalizes the growth processes. I take development paradigm here which revitalizes the growth proceses. I take development aspirations of these regions seriously but one must remember that development can take place only in a secure, peaceful and harmonious environment.

The National Common Minimum Programme

The National Common Minimum Programme is the essence of the consensus of principles and ideologies of the allies within the UPA. It is the dharma that must guide our government during its tenure. Being the primary partner, the main responsibility for implementing the Programme lies on the shoulders of the Congress Party and its representatives in the government.

In my Independence Day address I had said that from the National Common Minimum Programme I have identified seven priority sectors for focused attention. These are agriculture, water, education, health care, employment, urban renewal and infrastructure. These Seven Sectors� (saat sutra) are the pillars of the development bridge we must cross to ensure higher economic growth and more equitable social and economic development.

In all these sectors, we are backing up our commitments with increased budgetary support and increased investments. But for achieving results, it is not enough to increase outlays. It is equally necessary to pay adequate attention to their effective utlisation.

However, it must be remembered that, barring a few infrastructure sectors, all the sectors identified above are under the controls of state governments as far as their implementation is concerned. Our aim should be to work with states to ensure effective implementation of programmes. Therefore, wherever our party is in power in states, the responsibility is on state governments to gear up their machinery to ensure such effective implementation. And wherever we are in the opposition, we should play the role of an effective watchdog to ensure that the necessary results are achieved. The people of India expect this from us.

New Deal For Rural India

The primacy of agriculture and the interest of our farmers in our agenda has been emphasized by the Congress President. I have underlined this in my speech on 15th August. I have spoken of a "New Deal For Rural India" that includes increased public investment in agricultural research and extension, irrigation and rural infrastructure, including rural roads and housing for weaker sections. In all these areas we have increased budgetary support for new investment. The Union finance minister has announced several measures in his Budget speech, including a new agricultural credit policy. We have taken several steps to address the challenge of water management and supply of drinking water with the idea of launching a Water Mission in the future.

Panchayat Raj and Cooperatives

The Congress Party has been in the forefront of the movement for decentralization and the growth of the cooperative movement. Regretably, in recent years both panchayat raj institutions and cooperatives have been neglected. We are committed to the revival of these two important institutions of development. I made it a point that the the first conference I addressed was devoted to "Poverty Alleviation and Rural Prosperity through Panchayati Raj". Panchayati Raj is the medium to transform rural India into 700 million opportunities. The key instrument for integrating economic reforms with institutional reforms in the countryside is Gandhiji's farsighted goal of Purna Swaraj through Gram Swaraj. This was given Constitutional shape and sanction by Late Shri Rajiv Gandhi's vision of empowering Panchayati Raj Institutions to function as "institutions of self-government", to plan and implement programmes of economic development and social justice. Congress workers all over the country have to take an active interest in the healthy growth of these institutions.

Education

Our education policy must focus on making ours a fully literate country with a modern and world class educational system that makes India a "super power of the knowledge economy". A major issue we are tackling is to reverse the ideological and bureaucratic onslaught on education which was one of the major damages inflicted on the Nation by the previous government. While reversing this, we are professionalising the management of education in the country and ensuring that professional excellence is recognized and rewarded. The Congress Party has always stood for liberal values and principles and believed in academic freedom, institutional autonomy, social justice and intellectual excellence as the guiding principles of educational policy.

The other issue in education is achieving universal coverage. We particularly attach importance to the universalisation of elementary education and in this budget, we have imposed a cess on all taxes to mobilize additional resources. We will leave no stone unturned to meet our goals in this area. A national cooked nutritious mid-day meal scheme is another element in our attempt to ensure that every child attends school. We lay utmost emphasis on the education of the girls child, a necessary step in the empowerment of women.

Equally we must ensure that every citizen secures access to education. The needs of Scheduled Castes, Scheduled Tribes, other Backward Classes and Minorities must be adequately addressed. The equality of opportunity which is enshrined as an ideal in our Constitution cannot become a living reality unless all our people enjoy the benefit of quality education.

It is the responsibility of all Congress workers to ensure that all parents are motivated to send their children to school. I call upon all of you to work towards this noble and essential goal.

Health

Along with education, health is the other vital issue in the social sector. The two major areas of cous here are a comprehensive national scheme for health insurance and a reform of the rural health care delivery system. For achieving this, a Mission on Rural Health Care Delivery is on the anvil. A related area of special attention is food and nutritional security. The coverage under the Antyodaya scheme has been raised by 50 lakh families this year.

Employment

Youth are the future of the nation. An educated and an employed youth are a Nation's asset. Uneducated or unemployed they can become a liability. We should, therefore, endeavour to provide employment opportunities so that people are not viewed as a liability but become an asset. We will give particular importance to agriculture, small and medium industries, village and cootage industries and activities like housing and tourism which have considerable employment potential. For rural areas affected by chronic poverty, we are launching a new food-for-work programme in 150 most backward districts. The government is examining a draft Employment Guarantee Bill for rural areas prepared by the National Advisory Council.

Urban Renewal

Urban areas account for almost a third of our population. They are the nodes for development processes and economic activities. Many of our urban areas need renewal, particularly areas inhabited by the poor and needy. For improving the quality of life of the urban poor, a Mission on Urban Slum Renewal is being contemplated. This Mission will focus on a quantum jump in the quality of life in these areas through security of tenure, improvement of physical and social infrastructure, assured drinking water, proper sanitation, education, health care and social security.

Communal Harmony

Our government is committed to dealing firmly with those elements who promote divisiveness and hatred amongst our own people. Our government will follow a path based on Gandhiji's philosophy of Sarva Dharma Sambhava.

The UPA government has promised to enact a model comprehensive law to deal with communal violence and encourage each state to adopt that law. The Home Ministry is in the process of doing this.

We are close to fulfilling our commitment on the repealing of POTA. The repeal Bill is being tabled in this session. Some aspects of POTA relating to militancy and terrorism, however, will be incorporated in existing laws.

Welfare of SCs, STs and Minorities

Our Party has been committed to the welfare of Scheduled Castes, Scheduled Tribes, Backward Classes and Minorities. Our government will ensure their equal participation in all avenues of development.

A priority area is the codification of rules and instructions relating to reservation in government and enacting a law on reservation in government. We will be doing this shortly. In the budget, we have already announced a 50% subsidy scheme for water harvesting by SC and ST farmers covering 1,00,000 irrigation units.

The Congress Party has always remained committed to the welfare of tribal communities across the country. The challenge before us is to see how best we can protect their interests without endangering our forest wealth or diluting the provisions of the Forest Conservation Act. The NCMP talks specifically about all states passing legislations to confer ownership rights to people living in and around forests. We are working on such a legislation.

We are committed to establishing a national commission to see how best the welfare of socially and economically backward sections among religious and linguistic minorities is enhanced, including through reservations in education and employment. We are also committed to examining the question of providing Constitutional status to the Minorities Commission and to exploring ways and means by which minority professional institutions can have direct affiliation to central universities.

Governance Reform

An important area of focus is the reform of government and of governance. The promise to make the Freedom of Information Act more progressive, participatory and meaningful is in keeping with our commitment to bringing about greater transparency, accountability and probity in the entire system of governance. It is unfortunate that no serious efforts were made by the previous government to bring into force the Freedom of Information Act that we had helped to pass in December 2002. An improved model Right to Information Draft Bill has now been received from the National Advisory Council and the Government is examining it.

NCMP and Fiscal Management

States will have a major role to play in converting into reality the objectives of the Common Minimum Programme. Without their full involvement and active participation, we will achieve very little. I have written to all the Chief Ministers affirming my commitment to work with them for accelerated social and economic development. Equally, the Centre and the States must join hands in ensuring prudent fiscal management. If we lose sight of the financial health of the Government at the Centre and in States and of the broader macro-economic goals of growth and stability, we shall be disabling ourselves and doing a great injustice to the nation.

The Fiscal Responsibility Act which was passed with our support and which has been notified by our government, enjoins us to give due regard to our fiscal and financial management. Centre and the States have to contain non-development expenditure and prioritize development expenditure. We have to improve the returns from our public enterprises and streamline our tax administration by plugging loopholes. We have to manage the volume and structure of our debt with an eye on sustainability. This is not an easy task. Hard decisions will have to be taken by Governments at all levels and all political parties must understand this.

I urge Congress chief ministers to show particular discipline in this regard, setting an example for all others. The country can ill afford competitive populism. Fiscal irresponsibility can land the country in trouble posing a threat to national security. We must evolve a national consensus on issues like user charges for water and power so that the country does not once again land in a economic crisis. The sharp increase in petroleum prices is a reminder that we also need to work out a long term energy security strategy

Foreign Policy and National Security

Our `Vision Statement' on Foreign Policy, Defence and National Security along with the Common Minimum Programme are our guidelines regarding external relations and for consolidating & strengthening a strong institutional basis to ensure national security.

It is relevant to recall that it was a Congress led Government which managed the profound transitions in international politics and in the international security environment, following the end of the Cold War and the disintegration of the Soviet Union. Our Party managed the transition, fashioning our external and national security policies with precise perception of national interests, a clear sense of priorities and a calibrated exercise in creating new equations with the emerging power centres in a transformed global situation. We reformed and revitalized our economy. We ensured India's effective participation in the processes of globalisation in a manner responsive to our multifarious and complex interests.

What are the challenges that we face today? First and foremost we have to give close and continuous attention to ensuring national unity challenged by internal centrifugal forces which at times are supported from abroad. Managing India's relations with the major powers of the world particularly the nuclear weapon powers, in a constructive manner, protective of India's concerns and interests is a matter of high priority. This is particularly so given India's nuclear weaponization and attendant technological capacities which were built up assiduously and with purposiveness for nearly 3 decades by the Congress Party.

We have to create a neighbourhood of peace and stability as a matter of high priority. Forging relationships characterized by normalcy and cooperation with countries in our immediate neighbourhood is a clear objective in our foreign policy. Given this priority, relations with Pakistan and China are a particular focus of our attention. We are committed to carry forward the composite dialogue with Pakistan including a meaningful discussion on all the issues related to Jammu & Kashmir with the purpose of resolving all outstanding issues through negotiations on the basis of a practical and realistic approach. This approach is rooted in the conviction that peace and stability in our neighbourhood require mutual trust and confidence.

Having said this I am constrained to say that the NDA Government's peace initiative seems to have been an ad hoc exercise without clarity or a road map on how they would have tackled thresholds in our negotiations where fundamental issues about Jammu & Kashmir lead to an impasse in discussions between India and Pakistan. There was not just ambiguity but an absence of forethought in this matter on the part of the NDA Government.

We attach great importance to our relations with China. The initiatives which Prime Minister Rajiv Gandhi took during his visit to Beijing in 1988 have borne fruit. During the Congress Government's tenure between 1991 and 1996 a number of confidence building measures were negotiated and put in place. A landmark Agreement on maintaining peace and tranquillity on the Line of Actual Control of 1993 and the follow-up agreements were the result of the initiatives taken by the Congress Government. Our policy is to expand Sino-Indian relations in all spheres. The endeavour would be to give substance and content to these relations. We are committed to resolve the boundary question with China with political purposiveness and a practical approach.

We will give particular attention to our relations with countries of the ASEAN. My first overseas visit was to Bangkok to attend the first Summit of the BIMSTEC. The aim of this special Regional Association is to act as a bridge between South Asian and South East Asian countries. The projects which we have decided upon in the Summit will have a beneficial impact on our North-eastern states. We remain interested and concerned about developments in Iraq and Afghanistan. Our endeavour would be to contribute in any manner which we can to the revival of stability and peace in these two countries. The objective has been and would remain the well-being of the peoples of these two countries respecting their sensitivities and aspirations. Countering the international phenomenon of terrorism and religious extremism decisively is a basic ingredient in our foreign and security policies. Maintaining and upgrading our defence capacities is an equally fundamental part of our policies.

Creating a just and stable international order has always been a part of the ethos of the Congress Party even predating India's Independence. In the current global context strengthening the United Nations and reforming it, making its agencies and organs more representative of the membership of the world organization is a basic objective of our foreign policy. Managing the transformations in the international situation necessarily involves our cultivating and strengthening relations with the United States and consolidating our partnership with the Russian Federation.

World trends have a direct impact on our interests, even though we may not always be in a position to influence them. The unprecedented rise in oil prices is a case in point. We need to be prepared to address its consequences, based on a broad national consensus.

Government, NAC And The Party

The responsibility we have taken upon ourselves is both historic and onerous. Each one of us must understand and appreciate this fact. The NCMP commits us to pursue both a humane social and political agenda as well as an equitable economic agenda. The two are linked. As I said in my address from the Red Fort on Independence Day, our approach has to be one of seeking faster growth while ensuring that the benefits of growth are more evenly distributed. Our policies for higher economic growth and modernization will have to be combined with an emphasis on social justice, communal harmony, rural development, empowerment of women, regional balance and concern for the environment.

The Political and Economic Resolutions we adopt at this session will reflect our thinking on many of these issues and I do not wish to further elaborate on what I have already said in my two addresses to the Nation.

I would like to focus here on what I regard as being of vital importance to us as a leading member of the UPA and committed to making a success of this new coalition Government. In implementing the promises we have made to the people we have two instruments at our disposal. There is the Government and then there is the Party. I have already dwelt at length in my speeches on the need to reform government. Without reforming the government it will be difficult for us to implement the promises we have made. The challenge for economic reform today is to breathe new life into government so that it can play a positive role where it must.

Friends,

This reform of government cannot be ensured only from above. It is the historical experience of all democratic societies that to make governments responsive to the needs of the people civil society must exert the required pressure on it. This is where every single Congress worker can make a difference and can contribute positively to the success of our coalition.

At the national level we have taken an important step in this direction by setting up the National Advisory Council that acts as a bridge between civil society and the government. The work of this body will have to be supported, supplemented and strengthened by the mobilization of our party cadre at the village level, the community level, the locality level, at every possible level.

Jai Hind.