The Hindu Business Line : Key ministries readying for big reforms push

Minister after minister, upon assuming office in the new UPA dispensation, has made statements that indicate just one thing – reforms are on the anvil.

The first off the block was the Finance Minister, Mr Pranab Mukherjee, who started his innings by indicating that the Government was gearing to push long-pending reforms, especially in the financial sector.

“We need to seize the opportunity presented by the current circumstances for pushing long pending reform measures. These include measures in the area of financial sector and real economy, to make the economy more competitive and the economic regulatory and oversight system more efficient, quick and responsive to global developments,” he told the media.

Though the minister did not elaborate on the reform agenda of the Government, he mentioned that the next round of economic reforms could harness sustained stimulus to growth.

FDI POLICY

Following him was the newly appointed Commerce and Industry Minister, Mr Anand Sharma, who said that things were looking up for the economy with massive influx of foreign institutional investor (FII) funds. He further said the new Foreign Trade Policy would be announced in August first week.

“All issues relating to the policy process of foreign direct investment (FDI) and other such areas would be addressed by the new policy,” said Mr Sharma, pointing out that the massive FII inflows, which touched Rs. 20,000 crore in the last three months, indicated the confidence levels of the international investors in the Indian economy. Expressing satisfaction over the FDI inflows of about $27 billion in 2008-09, he said indications were that this momentum would continue.

PENDING REFORMS

The key reform measures that the previous UPA Government was not able to pull through due to Left opposition include increasing foreign direct investment in various sectors, including insurance, retail and aviation. Bills pertaining to reforms in banking and pension are also awaiting action.

Apart from finance and commerce, the other ministries everyone is watching closely for accelerated reforms are infrastructure and social sector. In infrastructure, oil and telecommunication could be first on the radar.

As soon as he took over, the Minister of Petroleum and Natural Gas, Mr Murli Deora, announced that the Centre would be looking at deregulation of petrol and diesel prices. “The issue of deregulation is being discussed and it will be put up to the Cabinet for a decision,” he said, adding that a decision on the issue would be taken in about six weeks.

Mr A. Raja, who also retained his old portfolio as the Communication and IT Minister, said on assuming charge that the policy for allowing third generation mobile services will be finalised in another 2-3 months and will be tabled in Parliament. It was supposed to be announced by June, but was held up due to issues on spectrum availability and pricing.

On BSNL’s IPO, which was stalled due to opposition from its three lakh employees, he said that the Ministry and the management would like to build a consensus on the issue.

Another big-ticket public issue that could see the light of day is Air India. The Civil Aviation Minister, Mr Praful Patel, has already indicated that the Government may consider coming out with an IPO for the state-owned carrier.

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