Govt fears slowdown; commits to fin reforms and disinvestment

New Delhi, June 4 (PTI) Indian Government on Thursday
vowed to push aggressively financial sector reforms and
disinvestment, along with enhanced public investment, to spur
growth as it feared that economy would slow down in the
current fiscal due to global recession.

The roadmap of government's reform policies, sectoral
growth agenda and disinvestment was spelled out by Indian
President Pratibha Patil in her address to joint sitting of
the Lower House and the Upper House of the Indian Parliament
where she said "our immediate priority must be to focus on
management of economy...

"My government will focus attention on sectors that
are adversely affected, especially SMEs, exports, textiles,
infrastructure and housing," she said, adding this must be
coupled with "expansion in public investment in infrastructure
sectors including public-private partnership in the sector".

The government also announced selling up to 49 per
cent equity in the Public Sctor Undertakings (PSUs) through
initial public offer (IPO)route, an initiative that could not
see light of the day in past five years due to opposition from
the Left parties.

"Our fellow citizens have every right to own part of
the shares of PSUs while the government retains majority
shareholding and control. My government will develop a roadmap
for listing and people-ownership of PSUs while ensuring that
government equity does not fall below 51 per cent," she said.

Observing that infrastructure development will be a
key focus area for the next five years, Patil said bottlenecks
and delays in implementation of infrastructure projects
because of policies and procedures, especially in railways,
power, highways, ports and airports would be systematically
removed.

To fulfil the election promise of Congress, the
President said the National Food Security Act would be enacted
that assures food security to all.

"Every family below poverty line in rural as well as
urban areas will be entitled, by law, to 25 kilograms of rice
or wheat per month ar Rs 3 per kilogram. This legislation will
also be used to bring about broader systemic reform in the
public distribution system," she added.

On the financial sector initiatives, the President
said there was a need to augment resources in the banking and
insurance sectors in order to permit them to serve the needs
of society better.

Towards this end the government would "recapitalise"
the public sector banks to strengthen their financial position
and also bring legislation to establish a regulator for the
pension sector, she added. PTI TEAM
SKT