PM assures industry of transparent governance

Amid questioning of corporate bigwigs in connection with the 2G probe, Prime Minister Manmohan Singh today told the industry that he was aware of ‘the nervousness in some sections’ and assured them of a corruption-free environment.

The government was considering measures, including legislative and administrative, to tackle corruption and improve transparency. The PM asserted the government was committed to fight corruption and action needed to be taken against “powerful” individuals.

Chairing the PM’s council on Trade and Industry, he promised to continue with reforms. “I am aware of the nervousness in some sections of the corporate sector arising out of some recent unfortunate developments. We stand committed to ensuring that our industry moves ahead with confidence and without fear or apprehensions.”

Singh said the faith of the public needs to be restored by addressing issues that had led people to form a perception that there was a deficit in governance and ethical conduct in public life. “The Government is committed to improving the quality of governance and enhancing transparency, probity and integrity in public life.”

“We have already taken action against...entrenched individuals. Systems will be put in place to prevent recurrence of incidences of corruption and malfeasance.”

The Prime Minister’s remarks assume significance in the wake of an open letter written by prominent personalities, including former RBI Governor Bimal Jalan and Wipro Chairman Azim Premji, expressing concern over a series of scams that they said pointed towards governance deficit. The letter was written following the corruption cases surrounding the 2G spectrum allocation and Commonwealth Games.

The Prime Minister said comprehensive measures had been taken to strengthen institutions to combat the menace of black money and corruption. “A Group of Ministers has been entrusted the task of considering issues relating to enunciation of public procurement standards, formulation of a public procurement policy, review and abolition of discretionary powers enjoyed by ministers, introduction of an open and competitive system for the use of natural resources.”

He said the government will continue with the economic reforms. “Building a consensus for economic and social change is crucial,” he said, adding the government plans to push ahead on reforms in key areas, especially those aimed at fiscal consolidation, including the Goods and Services Tax.

Singh said the reforms will encourage expansion in investment in infrastructure, taxation and the financial sector. Sebi today issued a circular implementing the Budget announcement over increased FII limit for infrastructure bonds.

The Government has tabled key reform legislations in Parliament, including the Pension Reforms Bill and a bill to increase voting power in private sector banks in proportion to stakeholders’ equity.

The Prime Minister also outlined the challenges of rising crude, food and commodity prices, international political uncertainties and the impact of natural disasters that the economy faces today. He said the government was aware of these challenges and the concerns of the industry.

The meeting was attended by noted personalities like Ratan Tata, Chanda Kochhar, Sunil Bharti Mittal, Deepak Parekh, Swati Piramal and Kumarmangalam Birla. An official statement said the government will prioritise areas like agriculture production, public-private-partnership in research and development, tribal area development, financial inclusion, skill development and affirmative action.