When all else fails, go to the Prime Minister. This has been public wisdom in the country for many years. From the deprived villager to the successful city slicker feel that if all else fails, go to the PM. So it was not surprising when the country's top industrialist had a big meeting with Prime Minister I.K. Gujral to thrash out the infrastructure problems which are holding back industrial growth.Gujral, ensured that the key economic minister of his cabinet were present at the meet and did not disappoint the industrialists. He said that all power projects set up with MoUs will be cleared by December this year. Finance Minister P. Chidambaram said that finance will not be a problem for power projects as the Government would make resources available. Gujral said that a model framework of assessing the bankability of power projects would be prepared in two weeks. The Government would also come out with a policy on corporatisation of ports.Gujral said that laws like the Urban Land Ceiling Act would be reviewed so that artificial land prices do not add to project costs. Petroleum Minister Janeshwar Mishra said that a policy on liquid fuel will be announced soon. Gujral said that similar meetings with the industry would be organised every three months to ensure that there is no slack in implementing decision.The industrialists were predictability worried about state level clearance. They felt that while centre would hurry decisions, they would get stuck at the level of local Government and bureaucracy. The Federation of Chambers of Commerce and Industry asked that the FIPB be made more powerful so that it became the final approving authority and not the first clearance body. FICCI said that subsidies on utilities should be done away with. If at all the Government wanted to subsidise the poor, it could do so by direct income transfer and not by price distortions. On its part the Confederation of Indian Industry said that regulatory bodies be set up for all infrastructure sectors, and should include representatives of state Governments. But there was one question which remained unanswered. Would the PM deliver on his promises?Long loansAlmost on cue, the Industrial development Bank of India has approved of long term loans to various projects worth Rs 2,000 crore. This means that many of the projects hanging fire may just take off this year. These sanctions are almost as much as the ones made by other FIs in the last three months. But for the projects to really take off, the clearance should come through as promised.Final fiatItalian car-maker Fiat's chief Paolo Cantarella, who was in town did not mince his words as he ripped apart the veil of complacency in the country about foreign investment. He said that, ``Despite all its progress, India is slow on deregulating and privatising its markets. Once agreements are made with local Governments they must be respected by everyone.'' He said that his company will invest about $1 billion in India in the next five years and its world car Palio will be here in 1999.In return for his investments, he has asked for a 14 year sales tax exemption from the state of Maharashtra where the Palio project will come up. He has also demanded that adequate power be supplied and that the Government pick up the bill for treatment of solid waste and water at the plant. The company sure knows how to get the best out of a deal. But with Fiat investing so much, it will be silly for Maharashtra not to accede to its demands which really do not amount to much.
