Financial Daily from THE HINDU group of publications
Wednesday, Apr 27, 2005

Port Info

Group Sites

Industry & Economy - Economy

Plan panel to prepare discussion paper on regulatory regime

Our Bureau

The Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia, with the Chairman, CII Infrastructure and Regulatory Council, Mr Vinayak Chatterjee, at the Infrastructure Regulatory Conclave in the Capital on Tuesday. — Ramesh Sharma

New Delhi , April 26

THE Planning Commission will put up a discussion paper on improving regulatory mechanisms and setting up new regulators where they do not exist but are needed by May for national debate.

This follows a directive from the Prime Minister, Dr Manmohan Singh, to prepare such a paper. The Prime Minister is of the view that a proper regulatory regime will enable greater participation of the private sector, especially in infrastructure sectors.

The financial requirements of building the infrastructure are phenomenal and the most practical model for this purpose is public-private partnership. Addressing the Infrastructure Regulatory Conclave here, Planning Commission Deputy Chairman, Mr Montek Singh Ahluwalia, said he was personally involved in the preparation of the concept paper, which would serve as a guidepost for improving the functioning of regulatory bodies.

"I cannot give details on what we are working. However, when the paper is ready we will put it up for comments from the public, including the industry. The paper along with the comments would be handed to the Prime Minister," Mr Ahluwalia said.

There was a consensus on redefining the roles of available regulatory bodies and establishing new ones in certain other sectors.

In the presence of Mr Ahluwalia, Mr Gajendra Haldia, Adviser to the Planning Commission Deputy Chairman, made a presentation on the key issues involved in regulation.

According to the presentation, sectors need to be unbundled into competitive segments and non-competitive segments. While there should be light-handed regulation for competitive segments, full regulation is necessary for non-competitive segments. The Competitive Commission should notify the competitive segments when competition is effective. Mr Haldia said predictable regulation would improve investment climate and reduce costs.

"Predictability is the key to effective regulation," he said, adding that multiplicity of regulators should be checked and synergy among sectors should be optimised.

He suggested constituting common regulators for: electricity and gas, communications (telephony, Internet and broadcasting) and transport (roads, ports and airports).

There should be multi-sector regulators for States and suggested single appellate authority for all regulators.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Project for youth in AP

The great growth story
Hiccups, yet Mumbai marches on!
Starting up a brand new day
City of Hope
Why financial planning?
ESCAP pegs India's GDP growth rate at 7.5 pc
Plan panel to prepare discussion paper on regulatory regime
Shipping Ministry urged to carry out studies for Sethusamudram project
Saving the turtle
`Time to come out with FDI-based ties with Japan'
Aiyar to visit Pak next month
AP raises ESI limit on super-speciality treatment to Rs 1 lakh
Nursing Council directive
USAID to help develop pool finance structure in Bengal
Govt to build 42 flyovers in Mumbai
Salem Steel Plant aims at 40 pc increase in production
`Viability is key to investment in melting shop'
Left parties urge Govt not to raise petro prices
Development, expansion of Tapti gas field: British Gas-ONGC-Reliance joint venture plans to invest $500 m
Power Tariff Policy to be finalised soon
Orissa not to allow setting up of new sponge iron units
Some mass consumption items exempted from VAT — Consensus reached on convergence of rates
VAT: Promos on consumers' rights soon
`Trade response to VAT disappointing'
Commonwealth SME meet — enterprising
Nickelodeon in tie-up with Bombay Dyeing
Western Australia keen on biotech alliances
`East can attract $125 b investment in minerals'
Resurgent India
`Investment boom will follow Japanese PM's visit'
CII-APTDC workshop
Guatemala takes flavour off cardamom exports
EU to launch probe into sharp surge in Chinese textile imports
IOC to step up crude import from Iraq
Services Export Promotion Council gets off the ground — L.B. Singhal is Executive Director
Global demand for eco-lodges expected to rise by 10 pc
Airport officials taught to be tourist-friendly

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line