The Hindu Business Line : Chidambaram for recast of public delivery systems

Part of the script
The Finance Minister was for private participation in the constantly reforming environment.
There is need to create a mechanism where market forces are allowed to work, subject to certain controls.

Hyderabad , April 22

The Finance Minister, Mr P. Chidambaram, today favoured a restructure of public delivery systems and an enabling environment that would help create world-class global corporations and institutions.

Speaking at a Leadership Roundtable hosted by the Hyderabad-based Satyam Computer Services Ltd, which hit the $1-billion mark in revenues, the Finance Minister said areas such as infrastructure — roads, health and education need to be viewed from a different perspective. This calls for the creation of appropriate methodologies to attract investments.

Emphasising the need for private participation in the constantly reforming environment, Mr Chidambaram said the country's ability to attract investment flow largely depends on the potential of the private sector to make profits in a particular area. It is unlikely that the private sector would invest where there is no profitability.

Private role

Citing the case of road projects, particularly three of them in Gujarat, the Finance Minister said that these projects show how public-private participation (PPP) can make a difference in the effort to attract investments in the country. In fact, these developers are ploughing back some money to the State's coffers.

Introduction of reforms

At a session moderated by Mr Krishna G. Palepu, a Harvard professor, Mr Chidambaram said the introduction of reforms facilitates ramping up the growth rate but obviously many institutions are becoming hurdles in the path of progress.

While some Constitutional institutions cannot be changed, others need to be revamped.

"Therefore, there is a need to create a mechanism where market forces are allowed to work, subject to certain controls. The market on its part will tell us what to do," he said.

The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, complimented Satyam promoters for their achievements and said other private players such as GVK, GMR, Dr. Reddy's are examples of local companies becoming global players. Assuring a level playing-field for companies, Dr Reddy, while inviting investments, assured that necessary steps would be taken for building the required infrastructure and lower tariffs for industry.

The Satyam Chairman, Mr B. Ramalinga Raju, said the next step is to sustain this momentum and achieve new heights.

Newer areas

The company, in its presentation, indicated that it could potentially focus on newer areas such as radio frequency identification, nanotechnology and embedded and chip technologies.

The Leadership Roundtable, attended by the captains of industry and politicians and policymakers, sought to draw upon Satyam's success story and ensure how this can be replicated in other areas , including through policy interventions.

More Stories on : Events | Satyam Computer Services Ltd | Economy

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