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HYDERABAD, Jan. 8

THE Union Finance Minister, Mr Jaswant Singh, has said that he would seek the Union Cabinet's approval on Thursday for opening a serious frauds office in the country so that the problems of corporate governance could be addressed effectively.

Addressing the valedictory session of the Partnership Summit 2003 here on Wednesday, Mr Singh said the Government had recognised the importance of corporate governance and an "outstanding report on this" was now with the Finance Ministry. The Minister also said that the Government has taken important decisions regarding the steel industry, debt swapping and debt amortisation but he would leave it to the respective boards to make announcements in this regard.

Referring to the demand for an open sky policy in the country, Mr Singh informed that 90 per cent of the plan in this respect was ready. "Now you will see the things happening." Emphasising the need for a change in the mindset, Mr Singh said, "Air India has to recognise that it must work less for Air India and more for India."

Ruling out creation of another institution for funding industry, Mr Singh said that banks today were flush with funds and what was needed was off-take of this money. But the banks must come out of the paradigms caused by the "C - 3 factor - the CBI, CVC and C & AG. It is my job as the Finance Minister to stand up for the banking industry and ask them to take decisions. If things go wrong, I will be accountable. Bank managers must have the security to lend money to customers."

Assuring industry captains that he would share with them the entire taxation package, Mr Singh said that most of the attention on report of Kelkar's task force was focussed on ups and downs of tax rate. But the most important aspect was the administrative reforms proposed in the Ministries of Finance and Revenue. Mr Singh said that an open approach to Budget-making was introduced in the country for the first time. His Ministry had volunteered to open up this activity and from January 9 to the first week of February a series of announcements would be made. Despite the worst-ever drought facing the country and a global economic downturn, the economy registered a growth of six per cent and 5.9 per cent in the first two quarters of this fiscal. "We had not only managed drought but also curtailed any abnormal rise in prices. It is very difficult for any other country to replicate this".

CII President, Mr Ashok Soota, said that the Indian economy had to grow at 10 per cent per annum on a long-term basis, going beyond the target of eight per cent set by the Prime Minister, Mr A.B. Vajpayee.

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