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| Disinvest up to 49% in PSUs and banks: Assocham |
| Press Trust of India / New Delhi Jun 02, 2009, 17:15 IST |
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Seeking another stimulus package for speeding up growth, industry body Assocham today said the new UPA government should go in for disinvestment of leading public sector companies and banks up to 49 per cent.
"PSU disinvestment would also stimulate the stock market," Assocham President Sajjan Jindal said adding that the chamber would submit an action plan for the government to Prime Minister Manmohan Singh soon.
It said under the 100-day plan, the government should accord 'Navratna' status to major public sector banks.
"Navratna status for major public sector banks is the need of the hour to enable them enjoy autonomy and take bolder decisions without government intervention," he said.
A total stimulus package worth Rs 1 lakh crore should be announced to stimulate housing, construction and real estate sectors, the chamber said.
It said that foreign direct investment in insurance sector should be increased from 26 per cent up to 49 per cent.
Seeking further reduction in interest rates, Jindal said export zones require sustained support as these have suffered the most in the recent past and may not recover till late 2009 fiscal. Also, the small scale sector should get credit at a lower rate.
Assocham said, there is a need to reduce both personal tax and corporate tax by five percentage points so that public spending can be increased.
Besides, a new deadline for Goods and Service Tax (GST) should be rolled out to put it into place by the next year as its introduction by 2010 is likley to get delayed, it added.
It also sought a housing policy to provide houses for rural families within five years based on a 20-year repayment at extremely low interest rates.
On the agricultural sector, the chamber said there is a need for a long-term farm policy aimed at promoting farmer-industry interaction, development of efficient supply chains to connect farmers to urban consumers and processing industry.
Jindal said, low priced rice, wheat, dal and kerosene should be made accessible to all below poverty line families.
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