The Telegraph
Wednesday , April 2 , 2014
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Tips for new regime

Ajay S. Shriram in New Delhi on Tuesday. Picture by Ramakant Kushwaha

New Delhi, April 1: The new government needs to sell its unutilised assets to cut deficit and unleash the goods and services tax (GST) to spur growth, the CII said today.

In its 100-day agenda for the new government unveiled here today, the Confederation of Indian Industry (CII) said a strong inter-ministerial coordination group was necessary to resolve issues such as the “mining conundrum” and “raw material securitisation” for sectors such as steel.

“India can achieve a gross domestic product (GDP) growth rate of 8 per cent provided systemic reforms are carried out quickly by the new government,” newly-elected president Ajay S. Shriram said.

“The government should fast-track the process of public sector divestment and create a policy framework for monetising unutilised assets and land resources of the government and PSUs,” he said.

Shriram told The Telegraph that it made little or no sense in pumping in money into sick ventures such as closed fertiliser plants, which could be run better by the private sector.

In December, the government provided about Rs 116.86 crore to 11 sick public sector units, including HMT Machine Tools, towards the payment of wages and other dues.

The CII said the new government should also fast track stalled projects and timely implement the Delhi-Mumbai Industrial Corridor and the National Manufacturing Investment Zone programmes.

On GST, the industry body said the implementation of the regime would boost the gross domestic product by 1.5-2 per cent.