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Journalism of Courage
For the first time, the Economic Survey has listed out 12 key “policy reform options” needed to put the economy on a sustainable high-growth trajectory. And called on the Centre to “play a leadership role in setting an agenda of policy and institutional reforms.”
The options, ranging from selling 5-10% equity in profit-making non-navaratnas, to raising the work week by 12 hours from the present 48, outline the unfinished agenda on reforms. These include:
• Complete selling of 5-10% equity in previously identified profit making non-navratnas, must list all unlisted PSUs and sell a minimum of 10% equity to the public.
• Auction all loss-making PSUs that cannot be revived and those where net worth is zero, allow negative bidding in the form of debt write-off.
• Allow a share for foreign equity in all retail trade and 100% foreign equity in foreign-branded, specialized retail chains.
• Raise foreign equity share to 49 per cent as well as allow 51 per cent foreign equity in a special category of insurance companies that provide all types of insurance to rural residents and for all agricultural related activities including agro-processing.
• Increase work week to 60 hours (from 48 hours) as well as set the daily limit to 12 hours to meet seasonal demand through overtime.
• Allow 100% FDI in greenfield private rural-agricultural banks with the caveat that such banks would be free to set up any number of branches in any rural or semi-rural area. These banks should be free to lend to agriculture & allied sectors as well as to any industry located in non-urban area.
• Amend Coal Mines Nationalisation Act to allow regulated private entry into coal mining.
• Phase-out controls in sugar, fertilizer and drugs.
• Sell old oil fields to private sector for application of improved or enhanced oil recovery techniques.
• Implement Open Access in a manner that shifts focus from a distribution company to “wire owners”. The intent is to allow access to electricity pillars to “string” wires and make wire owner accountable for T&D losses. Allow private (corporate) investments in nuclear power.
• Some of the other reform options include allowing public bus transport systems in cities and metros to be run by private companies; introducing a separate section on bankruptcy in the company law; form a public sector rail track company to own new tracks and signals and thereafter allow free entry of private and public-private partnership rail freight companies.
