New Delhi: The private sector lending arm of the World Bank, International Finance Corp. (IFC), on Thursday said India can greatly improve its business environment if the best practices, currently followed only in some cities, can be replicated across the country.
“India can jump 55 places if best regional practices (in 10 business areas) are adopted nation-wide,” IFC’s chief economist Michael Klein said at a panel discussion on the ‘Doing Business 2008 Report’ of the World Bank.
India is currently ranked 120 in the Doing Business Index.
The report pointed out that best domestic practices in the area of launching a business exists in Jaipur, dealing with licences in Bhubaneswar, registering property in Hyderabad, paying taxes in Bhubaneswar and Chandigarh, trading across borders in Chennai, enforcing contracts in Bhubaneswar and closing a business in Bangalore. These practices, if adopted by the entire nation, would significantly improve the business environment in India, he said, adding that the country’s ranking in 2008 survey went up by 12 places to 120.
Klein further said that many countries have been focusing on the reforms relating to starting a business, but were often found wanting in taking up labour reforms for fear of a political fallout.
Tax reform, he said, was the second most popular reform agenda among nations as it helped the industry as well as the exchequer by increasing compliance and improving realization.
Pointing out that reforms create growth potential and attract investments, Klein said, “China, India and Vietnam will keep reforming and create lot of business opportunities”.
In the area of enforcing contract, India ranked 177 out of 178 nations, the report said, adding that it takes almost four years to resolve a commercial dispute through courts in Mumbai, compared with slightly over a year in Shanghai. Similarly, it takes 10 years to go through bankruptcy cases in India, against less than two years in Shanghai.
ONGC to shut down 2 facilities for hook-up
New Delhi: State-owned oil exploration firm Oil and Natural Gas Corp. Ltd (ONGC) will shut down two key facilities at its largest gas field off Mumbai in January and February, that will cut output by one-third.
ONGC plans to shut down two production complexes at the Bassein field to hook up new facilities leading to a fall in natural gas availability from 42 million cu. m per day (mscmd) to 29-31mscmd, a company official said.
The company will shut BPB process complex from 1 January to 25 January and BPA complex from 14 February to 28 February.
ONGC has invested Rs2,937 crore in additional development of the South Bassein field and another Rs1,688 crore in the Vasai East field.
Against the current production of 42mscmd, gas supply is expected to be in the range of 29-31mscmd during the shutdown period. PTI
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