States root for labour reforms, privatisation

Chief ministers across the country have unanimously rejected the Centre8217;s move to prune the number of centrally-sponsored schemes...

Chief ministers across the country have unanimously rejected the Centre8217;s move to prune the number of centrally-sponsored schemes CSS and transfer these to states. In fact, they are livid with the idea of sharing the financial costs for the Sarva Shiksha Abhiyaan 50:50 with the Centre.

A poll of 16 chief ministers on the sidelines of the National Development Council meeting on Saturday found many of them pitching for bringing disinvestment and labour reforms back on the government8217;s agenda. Expectedly, the chief ministers of West Bengal and Kerala were not part of this pack. But all CMs wanted to pursue public-private partnership for the core sector.

The list of 16 chief ministers includes those from the Congress and non-Congress ruled states. The most vociferous reaction from them was to the government8217;s idea of reducing the number of these schemes from 155 to about 25 and states shelling out more money for social spending.

8220;We will oppose any move to curtail the Centre8217;s contribution to the CSS,8221; said West Bengal chief minister Budhadeb Bhattacharjee, whose party is a key ally of the Congress at the Centre. Chief minister Naveen Patnaik said, for a state like Orissa, it would be tough to spend more without central assistance. His Arunachal Pradesh counterpart Gegong Apang sought more autonomy in the spending pattern.

Congress-ruled Haryana8217;s chief minister Bhupinder Singh Hooda said the Centre must support the CSS even if states were to implement them. On labour reforms and disinvestment, most states do not agree with the Centre. For example, chief minister of BJP-ruled Madhya Pradesh Shivraj Singh Chouhan said, there was little scope to undertake labour reforms at the state level. 8220;The Centre must take steps to bring out a uniform labour law.8221; He noted that the disinvestment process kick-started by Manmohan Singh in 1991 had hit a wall.

States root for labour reforms, privatisation 8220;Instead of having a variety of labour laws, as they exist now, the Centre should adopt one comprehensive law, incorporating all issues pertaining to the industry-labour relationship. Rather, the Centre must scrap all its laws and leave the issue entirely to states,8221; Chouhan said.

Opposing the proposed 50:50 burden-sharing plan between the Centre and states for Sarva Siksha Abhiyaan, Chhatisgarh chief minister Raman Singh said, 8220;The quantum of financial burden to be borne by states must be decided on the basis of the overall financial position of each state.8221;

Story continues below this ad

Most states were keen on tapping the PPP model for funding core sector projects, given their resource crunch and that of the Centre. The best option would be to use the public-private participation route and executive infrastructure projects, they said.