CII favours decontrolling diesel prices

Confederation of Indian Industry today favoured decontrolling diesel prices saying the subsidy on fuel would hit the country's growth in the long term.

"We are not in favour of subsidies...Though it is important temporarily, if it becomes a habit, it will hamper the long term productivity of the country," CII President B Muthuraman told reporters here.

The prices should be driven by the market conditions so that the competitiveness was increased. "We want competitive scenario and at the same time it should be a level playing field (for industries)", Muthuraman, also the Vice-Chairman of Tata Steel, said ahead of the CII National Council Meeting.

He also sought modifications in the Land Acquisition Bill currently in the drafting stage.

"It is not practical for industry to acquire large acres of land.. It can be done in a different way. We are trying to discuss the issue with the policy makers." he said.

It was in this context, the CII was planning to set up a Land Development Corporation which can be a public-private partnership that works on business objective.

"The idea is to buy and develop land for industry purposes," he said.

On rising interest rates, he said any further hike would kill the growth of industry.

"Any further increase (on interest rates) will kill the industry," he said adding the supply and demand sides needed to be addressed.

Detailing some of the affirmative actions taken by CII in the recent past, he said so far 276 ITIs had been adopted and 10,900 scholarships distributed since 2007.