India needs vibrant ecosystem to attract investments: Pilot

Emphasising the need for a better business environment, Union Minister Sachin Pilot today said the country needs a vibrant ecosystem that enables both foreign and domestic investments.

 

The comments come against the backdrop of sluggish economic growth and companies scrapping proposed multi-billion dollar projects.

 

"The need for India today is to create an ecosystem that is vibrant and enables investment not just foreign but also domestic investments," Pilot, who is in charge of Corporate Affairs Ministry, said at a conference organised by industry body Assocham.

 

In the last two days, two global steel majors -- ArcelorMittal and Posco -- have said that they have scrapped their multi-billion dollars worth projects.

 

Yesterday, world's largest steel maker ArcelorMittal scrapped its $12 billion (Rs 50,000 crore) steel plant in Odisha over inordinate delays, problems in acquiring land and securing iron ore linkages.

 

On Tuesday, South Korean steel major Posco pulled out of its Rs 30,000-crore steel mill in Karnataka.

 

The developments amid the government making efforts to lure more foreign investments to bolster economic growth.

 

Meanwhile, Pilot said that there should be few regulations and 100% compliance.

 

According to him, there is no point in having layer after layer and multiplicity of efforts that also "creates negative environment for investments".

 

Regarding the Companies Bill, Pilot expressed hope that it would be passed during the monsoon session of the Parliament.

 

"The Bill is likely to come up for discussions (in the monsoon session of the Parliament). I am hopeful of getting it passed," he said. The legislation, cleared by the Lok Sabha in December last year, is awaiting Rajya Sabha nod.

 

The next Parliament session is scheduled to start on August 5.

 

Pilot also said the government would be open to make changes if necessary in the rules related to Companies Act.

 

"No bill is perfect... In a democracy we have to be dynamic. As we move forward and see what changes need to be made in the rules and regulations, I think any government will be open (to make changes if necessary)," he said.