News: India Inc recipe to spice up growth

(TT 05/06/2006) New Delhi - The economy requires a set of structural reforms not just to improve performance but also to create inclusive growth, according to the Confederation of Indian Industry.

The revised estimates of the GDP and other growth figures released by the Central Statistical Organisation on May 31 are a clear pointer to this fact as mining and power sectors were a big drag on the industrial growth, said CII president R. Seshasayee. The Central Statistical Organisation has revised the GDP growth for 2005-06 to 8.4 per cent from the earlier 8.1 per cent.

To combat the slack, the CII has suggested deregulation of the power and mining sectors.

The chamber has proposed an energy commission to develop and implement an integrated energy policy covering power, coal, oil and natural gas, non-conventional and nuclear energies.

In addition, there is a need to create a competitive and vibrant wholesale power market.

The CII also suggested incentives from the Centre to those states that expedite reforms.

Talking about the power crisis affecting various parts of the country, the CII president said, “There is a need to create an environment for greater power generation either by public or private companies.”

India Inc is also concerned over the lack of growth in the mining sector.

“There is a need to urgently de-regulate, particularly in the coal sector,” he said.

The industry body has suggested policy changes like public and private participation in the mining sector and removal of hurdles in obtaining approvals and establish an independent regulator.