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Economic Survery 2009 | A wish list update from 2008

Economic Survery 2009 | A wish list update from 2008
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First Published: Thu, Jul 02 2009. 11 23 PM IST

Image: Stockxpert
Image: Stockxpert
Updated: Thu, Jul 02 2009. 11 23 PM IST
Coal mines
Image: Stockxpert
Wish list 2008
Allow regulated entry of private sector into coal mining; privatize old coal mines.
Actual 2008
The Mines and Minerals Amendment Bill was introduced on 17 October 2008. The Bill is currently pending.
Wish list 2009
Amend Coal Denationalization Act to encourage private entry.
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Oil
Wish list 2008
Sell old oil fields to private sector.
Actual 2008
No progress
Wish list 2009
Sell old oil fields to private sector.
*******
Also read Budget 2009
Insurance
Wish list 2008
Increase ceiling on foreign direct investment (FDI) in Insurance to 49%. Allow 51% foreign equity in a special category of insurance companies that provide insurance to rural residents.
Actual 2008
The Insurance Laws (Amendment Bill) was introduced in 2008 and is currently pending.
Wish list 2009
Raise FDI cap in insurance sector to 49%.
*********
Power
Wish list 2008
Allow open access in transmission and put burden of transmission and distribution losses on transmission companies.
Actual 2008
No progress. For open access to be successful, states must implement new rules. Currently, states are not willing.
Wish list 2009
• Allow open access in transmission
• Amend Atomic Energy Act to permit private investment
********
Industrial decontrol
Wish list 2008
Phase out control on sugar fertilizer and drugs
Actual 2008
No progress. All three sectors remain highly regulated.
Wish list 2009
• Facilitate growth of labour-intensive industries
• Find alternative resources to deal with depleting raw materials such as coal, iron ore and natural gas
• Phase out control on sugar, fertilizers and drugs
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Photo: Harikrishna Katragadda / Mint
Public sector
Wish list 2008
Complete process of selling 5-10% equity to public in a group of previously identified profit-making companies. List all public sector companies and sell minimum 10% of equity to the public. Auction all lossmaking ones that cannot be revived. Allow negative bidding in the form of debt write-off for those with a net worth of zero.
Actual 2008
President Pratibha Patil laid out the government’s agenda for divestment during the first joint session of Parliament in June. Patil told
Parliament the government would continue to maintain the majority share of public sector companies, but the public should be able to take an ownership stake.
Wish list 2009
NA
*********
Banking
Wish list 2008
Allow 100% foreign investment in new private rural agriculture banks.
Actual 2008
No progress
Wish list 2009
• Bring all financial market regulations under Sebi
• Promote phased increase of FDI limits in banks
• Align voting rights in banks with equity holding
• Introduction of credit derivatives
• Introduce repos and derivatives in corporate debt to help improve investment in infrastructure
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Image: Bloomberg
Railways
Wish list 2008
Allow entry of private companies into the rail freight business.
Actual 2008
Achieved
Wish list 2009
NA
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Retail
Wish list 2008
Allow 100% foreign investment in specialty retailing and investment in all retail trade.
Actual 2008
No progress
Wish list 2009
FDI in multi-formal retail, starting with food retailing. Ensure that small, unorganized retailers can also benefit.
********
Bankruptcy
Wish list 2008
Change the bankruptcy laws to facilitate the exit of old/failed management as quickly as possible.
Actual 2008
Companies Bill, 2008; legislation pending.
Wish list 2009
Enact new bankruptcy law to ensure speedy and effective bankruptcy proceedings and to preserve assets.
*********
Labour
Wish list 2008
Increase work hours to 60 per week.
Actual 2008
The proposal awaits cabinet approval.
Wish list 2009
Amend Employees’ Provident Fund Act 1952 and Employees’ State Insurance Act, 1948, to bring more workers under the welfare programmes
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Image: Stockxpert
Urban public transport
Wish list 2008
Private companies can run Metros and bus transport systems
Actual 2008
Progress continues to be made on a state-by-state basis. Mixed success within the states.
Wish list 2009
• Put in place mechanisms to obtain reliable information on infrastructure projects
• Systematically address disputes on land acquisition, contractual issues and shortage of raw material, to ensure the timely implementation of projects
• Set up single regulatory body for transport sector, covering highways, railways, ports and airports
********
Commodities
Wish list 2008
Removal of proposed tax on commodity futures trade.
Actual 2008
No progress
Wish list 2009
NA
*******
Data compiled by
Kathleen Brooks and Elaisha Nandrajog / Mint
Source: PTI, Reuters, Economic Survey
Graphics by Sandeep Bhatnagar
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First Published: Thu, Jul 02 2009. 11 23 PM IST