NEW DELHI, November 27: The Union government may clear the $1.3-billion Bhadravati project by the end of the year. Approval for the project which involves UK-based General Electric Co (GEC), Ispat group and Electricity de France has been pending for the last four years.

GEC chairman Rt Hon Lord Prior PC, at a meeting organised by the Confederation of Indian Industry (CII), said the government is likely to clear the proposal after it gets certain clarifications regarding it. Prior said he is meeting the cabinet secretary soon for the much awaited approval and he is hopeful that it will be done soon.

He also said that the three partners and the government are expected to settle all differences which would enable the project to take off by the beginning of the next fiscal. GEC is making an initial investment of $90 million in the project.

Speaking at the meeting, Prior said that Britain will extend help to India in order to enable the latter to take advantage of the European Union (EU). He further said that Britain would like to receive have assistance from India in order to settle the differences emerging among the partner countries in the union.

However, Prior felt that Britain should only enter the Economic and Monetary Union (EMU) till the year 2002 and once the interest rates are lower. EMU is a significant entry into the EU and Britain should enter it after doing away with policy differences between taxation and other economic issues, he added.

Currently, UK is sceptical about the union as its economic growth has picked up but some of the partner countries are way behind, Prior said. Further he added, a solid political union is required before the countries unite on the economic front, Prior said.

On Britain's entry into EU, Prior said it is difficult for European countries to be compatible in terms of their respective economies. Problems have aggravated with the entry of Turkey and Czechoslovakia in the union, which are relatively backward in terms of economic development, he added. Problems may arise which may break the whole union, Prior said.

The possibility of enlargement of the union by including new partner countries are likely to create problems, as these countries are not at par in terms of economic progress, he felt. There are also differences in business practices between different countries in the union, Prior said.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.