Click here to visit SME Buzz - A Business Standard special on the latest news, information and features on Small and Medium business  
 
Business Standard
Friday, Mar 19, 2010
Budget 2010 Sponsored by
drived banner
drived banner
  Advanced Search
Feedback | RSS
Content Guide
Follow us on  
  Home  ||||||||| 
 BS Headlines | News Now | BS Weekend | The strategist | The Smart Investor | Lunch with BS | Columnists | Energy | SME | Run-up to the Budget
  Hindi | E-Paper | Motoring  | Live Markets |  Smart Portfolios II  | Blogs | Portfolios >
  Search:

Sunil Jain: Dream teams and more
It would be nice to have, at the helm, a group of men and women who inspire confidence and trust by their very presence
Sunil Jain / New Delhi May 25, 2009, 0:57 IST

 Click here to visit SME Buzz
 
 
Related Stories
News Now
-More of the same
-Assets sale may ease fiscal concerns
-Cong-DMK chill thaws
-Pranab works on paper to revive economy
-Krishna gets External Affairs, Mamata Railways
-Karna Cong calls for more representation in Manmohan Ministry

Forget the first 100 days spiel about what Dr Manmohan Singh will do to kickstart the economy. That’s just media hype and, in any case, the economy’s on a recovery-path. As has been seen over just the last few days, despite the Congress getting 206 seats in the Lok Sabha and getting support letters from 100 more MPs, Dr Singh still hasn’t been able to form his government—just 19 ministers were sworn in with him and, a day later, portfolios could be announced for only six of them.

Given that Dr Singh needs just 272 seats, you wouldn’t think he’d need the DMK’s 18 so desperately (and it has just four seats in the Rajya Sabha), yet the Congress party sent an emissary to meet DMK chief M Karunanidhi after the talks in Delhi collapsed and Dr Singh’s already on the record saying he has no personal problems with DMK ministers like A Raja and TR Baalu.

Makes you wonder a bit considering that, apart from aviation and petroleum, the only other ministers that brought disrepute to Dr Singh’s government the last time around were those headed by DMK ministers such as Raja and Baalu—Raja gave away telecom licences to a handful of favoured firms for a whopping $10bn (Rs 47,000 crore at today’s exchange rates) less than their actual price, and Baalu’s inexplicable ways made sure the very efficient highways-building programme of the NDA years ground to a very rapid halt.

But let’s not kid ourselves into thinking that the problem was Raja-centric, that he did what he did in the telecom ministry, or in the environment ministry earlier, without Karunanidhi’s blessings—if this was so, he’d have been out by now.

Sleeping with the DMK may be realpolitik on Dr Singh’s part, but it also tells you that he’s going to have anything but a free hand. (Dealing with allies has always been a tough thing and most would remember that, during the NDA years, when Maruti was to be sold off to Suzuki, Shiv Sena minister Manohar Joshi simply refused to sign the file and it took several months of more than gentle persuasion for the government to get around his opposition.)

What of the other moves Dr Singh’s made, of the Cabinet ministers he’s sworn in and, more important, not sworn in? The fact that Arjun Singh is finally out of the Cabinet is certainly very good news. Both the NDA and the UPA have handed this vital ministry to the worst possible ministers in the past, so we should hope Dr Singh will give this ministry to a more modern and efficient minister.

Given that optics also count for something and that the minister has to be seen to be progressive, you may just have someone like Kapil Sibal getting the ministry—even the inefficient Met department got good press each time Sibal announced some new initiative from it! (Given the view that the Muslims have finally come back to the Congress fold, watch out for whether the Sachar report’s suggestions like linking UGC grants to ‘diversity’ start to get implemented.)

The fact that First Family Faithfuls like Hansraj Bhardwaj have been kept out also suggest the government is embarrassed by the bad press it got from Bhardwaj’s decisions which helped Bofors-accused Ottavio Quattrocchi walk away with his money—another way of looking at it is that, now that the deed’s been done, dropping Bhardwaj will look as if the government is very serious about its image! In which case, it will be a good idea to also get a new Attorney General as well as a new Solicitor General.

Mamata Bannerjee is unlikely to be as efficient a railway minister as Lalu Prasad was, and a situation where the economy is not booming as it was in the last five years is likely to make this clear in a pretty short time. It would be interesting to see if the privatisation programmes that got stalled/derailed during Lalu’s period—privatisation of the New Delhi Railway Station and the diesel and electric locomotive plants, to name just a few—will be revived.

Pranab Mukherjee as the finance minister is a curious choice and perhaps is the best indicator of where the government’s going. His last big experience with the ministry was in the early 1980s, when the only liberalisation that happened was in favour of a few industrialists—this may have still been alright then given that there were few Indian industrialists apart from the late Dhirubhai Ambani who even dreamt big and when there were few foreigners who wanted to enter the Indian market, but it is certainly not true today.

And while it is true Mukherjee headed around 50 Groups of Ministers in the last UPA government and is therefore its Mr Crisis in many ways, the GoMs he has chaired haven’t always distinguished themselves with their recommendations. Some have blatantly played favourites.

It is true that, in the past, the most unlikely of ministers have delivered. Yashwant Sinha turned out to be a good finance minister and despite his royal disdain for the nitty gritty, Jaswant Singh managed to set the stage for a genuinely modern and efficient tax system. Even so, it would be nice to have, at the helm, a group of men and women who inspire confidence and trust by their very presence. The trust that the support of 300-plus MPs in the Lok Sabha demands.

Arrow Other Stories     
- Markets flat in noon trades
- Sensex up 37 points
- Govt recalls Deepak from BSNL board
- Strides to use licencing income, loan for buyouts
- Alarm was raised by Merrill on Lehman: report
More  
  Read Business news in 
  
   " Instant Loan for Corporates"
   Get a complementary DLF IPL Ticket worth Rs500
   Click here to visit Business Standard SME Buzz
  
   Transfer your funds at ease from abroad
   Get triple tax benifits, and doosra income Advantage
   Now Pick your advisor with ING Life Insurance
  Replace your aging IT hardware and dramatically lower your IT operating expense
  Follow the ups and downs of your investments. Try our new Portfolio Tracker
  Find how Midsize Businesses use ERP to gain competitive advantage
  Discover an economical and cost effective way to market your products and services
  Giftwithlove.com: Same Day Gifts & Flowers Delivery to India
  Download the E-book on the Future of Business Intelligence
  Learn Best Practices for improving customer satisfaction
  Know your customers better... download the free e-book on CRM
   Discussion Board / User Comments    
Display Name  Email-Id  
Post your comment
KM
Crap again as usual
Reply
Most Popular
Read
E-Mailed
Commented
   
- India's arms import doubles in five years
- 'Working in Unilever is like working in 13 companies'
- 'Vindi' Banga bids adieu to Unilever
- Nayak to head Morgan Stanley India
- Rajapaksa lauds India's development work in North Lanka
 
 More  
BS Poll
Cast Your Vote
 
   
 
Should FDI be permitted in India's nuclear sector?
  Yes  No
Submit

  Hot Searches  
 
Budget 2010 |  Railway Budget |  Economic Survey |  Bharti |  Ranbaxy |  Auto sales |  My Name Is Khan |  CAT  |  Maruti Suzuki |  Small Car |  Dubai |  BSE  |  NSE |  Amitabh Bachchan |  Mukesh Ambani |  Anil Ambani |  Bollywood |  TCS |  Infosys |  Pranab Mukherjee |  Sonia Gandhi |  Congress |  Rahul Gandhi |  New Pension Scheme |  Service tax |  Excise duty |  Sebi |  Notebook |  Tech Mahindra |  Reliance |  RBI |  GDP |  Gold |  Ratan Tata |  ICICI |   |  B-School |  Sensex |  Tax calculator |  Home Loan |  Personal Finance |  inflation |  oil prices |  World Bank |  HDFC  |  Barack Obama |   
 
  Member Area Write to the Editor RSS Archives Advanced Search
  Subscribe to BS print product BS e-paper Newsletter Portfolio Tracker
  BS Products BS Hindi BS Motoring
FOR HOT PRODUCTS
BS Bazaar.com
Home | Markets & Investing | Companies & Industry | Banking & Finance | Economy & Policy | Opinion
Life & Leisure | Management & Marketing | Tech World
About Us | Partner With Us | Code of Conduct | Careers | Advertise with us| Terms & Conditions | Disclaimer | Site Map | Contact Us | Feedback