CII asks govt in PSU banks

CII said after reducing its stake, the government must privatise Bank of Baroda, Corporation Bank, Oriental Bank and State Bank of India. quot;What holds for these four banks is also true for Industrial Development Bank of India IDBI, IFCI, Small Industries Development Bank of India SIDBI and Exim Bank,quot; CII said referring to the financial institutions.

It also urged the government to allow Indian insurance companies Life Insurance Corporation, General Insurance Corporation and its four subsidiaries as well as various employee provident fund and pension schemes to invest up to five per cent of their funds in venture capital funds.

CII has also recommended that the government announce a long-term fiscal policy to enable corporates to plan their investments. It has asked the government to eliminate a 10 per cent surcharge on corporate income tax.

quot;Since the elimination of surcharge is not inimical to corporate tax revenue, it should be abolished in the 2000/2001 budget. This will give a strong positive signal to the corporate sector,quot; CII said in its recommendations.