NK Singh’s tenure in PMO extended

The case of N K Singh was being keenly tracked in bureaucratic and political circles after he missed an ambassadorial assignment to Washington and it was suggested that he would quietly retire this month-end.

But Singh has proved his detractors wrong and turned out to be the biggest of survivors. His tenure has been extended until the Union Budget so that he can assist in policy formulations.

The PMO is extremely concerned about the slowdown in the economy and the low growth rate. A core group is set to be created to suggest ways and means to hike the growth rate. It is felt that steel, cement, power, ports and other infrastructure areas need special attention.

Higher investment – of up to Rs 50,000 crores in a single year – is required over and above the present level. This amount could be mobilised by giving special tax benefits, say sources.

Since N K Singh has played a key role in these policy formulations, it is felt his departure in the midst of the Budget preparation could jeopardise the process.

Secondly, there have been reports that relations between the PMO and the Finance Ministry are not very cordial. The way some bureaucratic changes were made in the finance ministry at the instance of the PMO recently is reported to have caused ripples in the FM’s office.

But the argument put forward by Sinha is that he was neither the signatory nor an advocate of the World Trade Organisation. He was only implementing whatever had been assigned to him. During his interaction with the industry, Sinha was blamed for not protecting it against dumping.

However, the PMO did not encourage these views and does not want to be seen to be re-introducing a protection regime.

The PMO is keen that much needed investment be brought in the core sector to boost growth and help the industry.

It is in this context that the extension to N K Singh is significant.

Meanwhile, as part of the down-sizing of the bureaucracy, the Prime Minister’s Office has decided to abolish the post of two joint secretaries. Instead of seven, the PMO will have five joint secretaries.