BackIndia needs a mechanism to settle govt-private firm dispute: Montek
The move will improve the ease of doing business and reduce the burden on courts, says Montek Singh Ahluwalia
Premium(Pradeep Gaur/Mint)
New Delhi: India needs a mechanism to settle disputes between the government and private firms that will improve the ease of doing business and reduce the burden on courts, Montek Singh Ahluwalia said on Wednesday.
There are only a few options with the private sector if it has a dispute with the government, the deputy chairman of the Planning Commission said at the India Summit organized by The Economist magazine.
“The only option seems to be the Supreme Court," Ahluwalia said. “I don’t know how feasible it is, but the government should have an agency, an arbitrator, etc., for resolving disputes."
If there is a dispute between two public sector companies, the cabinet secretary can solve by making them sit across the table, Ahluwalia said, but it is not possible in case of the private sector. “Around 80% of cases in the courts seem to be of government appeals, including tax cases."
It is yet to be seen if the move is feasible but this reform will significantly increase India’s ease of business ranking, which is 134 among around 180 nations, he said.
Ahluwalia also said that it is possible for India to grow at a rate of 8% but it can’t happen on a “business as usual" basis. He added that it is not necessary to focus on new reforms between now and general election which are due in 2014 and what is needed are executive decisions to make existing policies more effective.
Earlier in the day, finance minister P. Chidambaram said there is a significant possibility of the goods and services tax (GST) network being implemented in the current tenure of the Congress-led United Progressive Alliance’s government.
“Almost 80% of the work on GST has been completed. The empowered committee (EC) has authorized us to draft the constitution amendment Bill and the Bill for GST. If the drafts are endorsed by the EC and the Bills are passed, then there is a very good chance," Chidambaram said.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
