The UPA 2 is completing its 100 days this weekend and all the chambers have made an assessment of the performance of the various ministries of the centre in the context of the promises made by the Prime Minister for the first 100 days of the new Government. The Federation of Indian Chambers of Commerce & Industry (FICCI) has carried out a detailed exercise to identify the areas where substantial work has been initiated and the gaps which are yet to be bridged. In fact, a high-level FICCI delegation had a meeting with the Prime Minister recently and discussions took place on the immediate agenda that has to be pursued taking into account the impact of widespread drought on the economy.

FICCI study has specifically mentioned the big challenge on the agricultural front. It has been pointed out that while this sector must grow by 4 per cent, it is presently clocking a growth of just about 2 per cent. The chamber therefore has suggested a comprehensive development plan that looks at better seeds provision, improved farm practices, organised retail, cold chain, warehousing for bringing about a meaningful change in the agricultural sector. FICCI also wants investments in agri market infrastructure in priority lending and an extended weather-based insurance programme. Further, in order to facilitate easier movement of foodgrains from surplus to deficit states, necessary amendments should be made in the existing rules.

Apart from agriculture, infrastructure development at a faster pace has been given priority in FICCI's immediate agenda for action following one hundred days of the Government. It has been pointed out that infrastructure development is still hampered by difficulties in land acquisition, limited financing options and environmental issues and these should be immediately addressed. It is pointed out that performance at our infrastructure facilities is way below international standards. For example, turnaround time at our ports is much longer compared to Singapore or Colombo ports.

Experts feel that simplification of processes and procedures in the Indian ports is a must and the challenge for India is how to adopt the best practices while building additional capacity. It could relate to availability of handling equipment or labour productivity. FICCI feels that to address these issues, a three-pronged approach is needed. First the Government should exercise its authority to improve operating conditions at ports; secondly, the private sector has to be involved; and the third approach should be to build additional capacity. Further, faster modernisation of Chennai and Kolkata airports and upgradation of 35 non-metro airports should be on the agenda as well.

As regards the power sector, the analysis has specifically mentioned that adequate investments are not coming to the sector, keeping a big gap between demand and supply. Power generation is the key to the growth of the industry and this area has to be tackled on a high priority basis by removing the bottlenecks like land acquisition, environmental clearance, mining sites, etc. The pricing issues should be made transparent without keeping any scope for controversy. Similarly in the nuclear power area, the chamber wants amendment of Atomic Energy Act 1962 to allow private sector participation in nuclear energy generation.

Interestingly, FICCI submitted a 100-day action agenda for the new Government to the Prime Minister after he took over for the second time as the leader of the ruling coalition. The quick review made by the chamber has shown that quite a number of suggestions made in that agenda have been accepted by the UPA government and announced. But at the same time, FICCI points out that due to drought conditions, the corporate borrowers have to be assured of the stability of interest rates and they should be allowed to have new equity sources and a deeper and wider debt market including corporate debt market.

In this context, industry sources point out that greater flow of funds from overseas would be critical and the passage of Insurance Bill will lead to greater long-term funds availability. FICCI is happy at the moves for reforming the education sector and it has urged allowing private sector to set up higher educational institutions as a section 25 company to plough back surpluses for development and expansion. FICCI feels that the country needs an Education Promotion Finance Company along the lines of HDFC to provide educational loans at affordable rates for all study programmes including vocational education. (IPA)