PM had 'lucky 9-months' but no improvement on ease of doing business: Parekh

February 18, 2015

Mumbai, Feb 18: Pitching for relaxing "administrative controls" to improve ease of doing business, top industry leader Deepak Parekh has said that impatience has begun creeping in among businessmen as nothing has changed on ground in first nine months of the Narendra Modi government.parekh

He said the industry is still optimistic about the changes it expects from the Modi government, but optimism is not translating into revenues and there has been little improvement on 'ease of doing business' front so far.

Parekh, who is known as a guiding voice of the Indian industry and has been on a number of key government panels on various policy and reform matters, further said that 'Make in India' can't succeed unless it is made easier for people to do business here and the decisions are fast-tracked.

"I think there is still a lot of optimism among the people of the country and among the industrialists and entrepreneurs that the Modi government will be good for business, for progress, for reducing corruption. They think this government means business on all these fronts.

"However, after nine months, there is a little bit of impatience creeping in as to why no changes are happening and why this is taking so long having effect on the ground.

"The optimism is there but it is not translating into revenues. Any industry you see, when there is a lot of optimism, the growth should be faster," Parekh told PTI in an interview.

Parekh, an eminent banker and Chairman of financial services giant HDFC, has always been very vocal with his views on reform and policy measures taken by the various governments over the past three decades.

He was among the first industry leaders to openly criticise the previous UPA Government for "policy paralysis" after a spate of scams led to decisions getting delayed within the government and business began getting hurt.

"The thing is that our Prime Minister had a lucky period in these nine months. The world commodity prices are at all-time low which help India the most," Parekh said.

Stating that India is again at a position when everyone is looking at it with high hopes, he said, "I don't see ease of doing business changing so far."

Parekh cited the example of delay faced by his own group's HDFC Bank, the country's top private sector lender, with regard to approvals required for raising of funds, including from overseas.

"Things are happening at such a speed around the world, we need to move faster as well.

"Just to give you an example of our own case. We needed to raise some capital in HDFC Bank. It took more time this time than earlier years to get approvals from FIPB etc," Parekh said.

On benefits from oil prices, he said there are many countries that import oil but benefits have been huge for India.

Japan is also one of the countries that imports oil. But it does not make any difference to Japan with the reserves of oil they have, whether oil is at USD 50 or USD 40 or even USD 110. Also, they are willing to pay higher price because they can afford it, but we can't.

"We have fiscal deficit and shortage of foreign exchange. These factors, when the government came into power, this was not there on the cards. No one had ever anticipated this (fall in oil prices).

Just like none of the 7-8 opinion polls predicted 67-3 in Delhi, no one predicted among the oil analysts at the big firms that the oil will become USD 55. No one predicted this," he said while emphasising that the first nine months of the Modi government has been extremely lucky for it.

Elaborating on HDFC Bank's example with regard to 'ease of doing business', Parekh said, "It got FIPB approvals. Then FIPB minutes had to be signed, and then it had to go to the Cabinet Committee on Economic Affairs.

"People were helpful but processes have not changed. Now we are a 20-year-old organisation and we are within the limits (of 74 per cent foreign investment cap). Why can't they change these things. Why can't the administrative controls be relaxed.

"If 49 per cent in defence is permitted and if someone wants to put in Rs 1,300 crore, why should this go to the Cabinet Committee. The FIPB is good enough and it is within the 49 per cent. So, you have to remove controls. You have to make it easier for people like us to do business."

He said the final approval letter came on the last day, after which the issue of Rs 10,000 crore had to be postponed as there were other listing deadlines of Indian and the US stock markets to be met.

"It is very difficult. And it is only administrative and what does it achieve? If it is within the limits, why should it go to Cabinet Committee on Economic Affairs. Why spend the Prime Minister's time on such things as he chairs the CCEA.

"If it is a controversial issue, something on security or on defence or some other very important issue, then it can, but not for simple commercial transactions. Someone must take the initiative to remove this," he said.

Parekh said that this committee has been there for the last 35 years that he has been in the industry.

"When I started working 35 years, it was Rs 200 crore, now it has gone up to Rs 1,200 crore (foreign investment limit beyond which the case is referred by FIPB to CCEA), but it has not been scrapped."

Suggesting that this revised limit was also very low, Parekh wondered, "Why is it Rs 1,200 crore, make it Rs 5,000 crore. Besides, if it (the investment proposal) meets the guidelines of FIPB, which is chaired by the Finance Secretary and the Finance Minister is always aware of FIPB cases, it should be good enough."

He also said that a lot of work needs to be done at state levels too on ease of doing business, as things have not changed there either on approvals to start construction of a business etc.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
June 2,2020

Lucknow, Jun 2: Bahujan Samaj Party chief Mayawati on Tuesday said protests in the US after the death of George Floyd, an African-American man, is a clear message to the world that a common man's life has value.

She said this is also guaranteed by the India Constitution, but the governments don't follow it, resulting in the current plight of migrants workers.

Floyd, a 46-year-old restaurant worker from Houston, died in Minneapolis on Monday after a white police officer pinned him to the ground. Video footage showed the officer kneeling on Floyd's neck as he gasped for breath, sparking widespread protests across the US.

"Floyd's killing by police and the 'Black lives matter' agitation in the US have given a clear message to the world that a common man's life has value and it should not be taken for granted," Mayawati said in a tweet in Hindi.

"India's constitution guarantees independence, security, self-respect and pride and governments should give special attention to it. If it was followed, crores of migrants labourers would not have to witness such bad days," she added.

She also demanded better coordination between states to check the spread of coronavirus and said Centre should intervene.

"While coronavirus patients are rising, there is lack of coordination between states and with the Centre, and allegation and counter-allegations are going on and sealing of state borders is unjustified and it is weakening the fight against the virus.  The Centre should intervene," she said in a separate tweet.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 19,2020

New Delhi, May 19: Spitting at workplace will be punishable with fine, the Personnel Ministry has said, citing the national directives for COVID-19 management.

In an order issued to all central government departments, it has asked their heads to ensure strict compliance of this and other directives in this regard.

This order is likely to bring about changes in and around government and private work places, where one can easily spot stains of 'pan' and 'gutka' spitted at some of the corners of walls or areas not frequented by many employees/public.

"Spitting in public and work places shall be punishable with fine, as may be prescribed in accordance with its laws, rules and regulations by the state/union territory local authority," said the national directives issued by the Home Ministry and shared by the Personnel Ministry with all central government departments.

It said wearing 'face cover' is compulsory in all public and work places.

In additional directives for the work places, the ministry said as far as possible, the practice from work from home should be followed.

"Staggering of work/business hours shall be followed in offices, work places, shops, markets and industrial and commercial establishments. Provision for thermal scanning, hand wash and sanitiser will be made at all entry and exit points and common areas," the directives said.

Frequent sanitization of the entire workplace, common facilities and all points which come into human contact e.g. door handles etc., shall be ensured, including between shifts, it said.

"All persons in charge of work places shall ensure social distancing through adequate distance between workers, adequate gaps between shifts, staggering the lunch breaks of staff, etc," the directive said.

The Centre on Monday asked 50 per cent of its junior employees, below the level of deputy secretary, to join work in office.

Till now, only 33 per cent of such employees were asked to attend office due to the novel coronavirus lockdown.

Central government employees were asked to work from home due to the lockdown that came into force from March 25.

All officers of the level of deputy secretary and above have already been asked to attend office on all working days.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
January 20,2020

New Delhi, Jan 20: Union Finance Minister Nirmala Sitharaman on Sunday said the kind of cleaning in the system that the BJP-led government had to carry out after coming to power in 2014 was "unbelievable" and it undertook the exercise without any grudge or worry.

Between 2014-16, there were a lot of questions as to why reforms did not come fast and there were comments that the government was incapable of bringing them, she said delivering the Nani Palkhivala Memorial lecture on "Road Map to $5 Trillion Economy" here.

Pointing out that there were allegations and criticism that the government wants to do something but it did not, Sitharaman said, "I am fully willing to buy that." She recalled that Prime Minister Narendra Modi often said he did not believe in incremental changes and the country needed good transformational change. The stage in which India is today, it cannot have little marginal increments, but good transformational change.

"But still one might say in the last five years the government never did. That can be a critical analysis and I am fully willing to buy that. Because post-2014 the kind of cleaning up the government had to do was unbelievable and we undertook that exercise without a grudge without a worry.. we had to do it and it is part of the game," she said. Elaborating, Sitharaman said states have their own views on Land Acquisition Bill and the government could not have done anything because land, after all, is with them.

Commenting on the topic 'Road Map to $5 trillion economy,' she said quoting Prime Minister Narendra Modi's comments, the government would take the route "Sarkar ka abhaav nahi hona chahiye, prabhaav hona chahiye aur dabaav nahi hona chahiye."

"Abhaav and dabaav both of which are not desirable, abhaav is the inadequacy or lack of adequate presence or shortfall. You do not need a shortfall. You need a government where it should be present, where it is expected to function.", she said.

"So there should not be abhaav. Dabaav (meaning pressure) is not something you want from the government. So, you want Prabhaav. It is broadly an influence, facilitation, broadly the philosophy with which it is mandated, she said.

Noting that the government has got the mandate through the election, she said, "The mandate was spelt out in so many different ways in its manifesto. So the route towards $5 trillion is this."

"We have to be there to facilitate. We have to be there to make it easy. We have to be where you need us, where there is no policy (reforms from the government)," she said.

On the Insolvency and Bankruptcy Code (IBC) implemented by the government, the union minister said the approach of the IBC was not to shut business. "IBC takes on the approach in having some kind of resolution where all people who exploited the company do not come back through the "back door," she said.

IBC was done through better management so that the institution is alive and kicking. It is something which she wanted to carry forward from Modi 1.0 to 2.0. "The point I am trying to make on this road to $5 trillion economy is that it is not just an abstraction, this is not how I want India to be. But in micro-level too, we are coming in response to every stakeholder," she said.

Comments

Well Wisher
 - 
Tuesday, 21 Jan 2020

LOL. Do not say anything, else she will get angry.

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.