Reforms may top agenda as Cabinet meets on Tuesday

RGES, Kelkar report expected shortly

In the midst of a political storm over cutting down subsidies and opening gates for foreign investment in multi-brand retail, the United Progressive Alliance (UPA) government is likely to go ahead with another set of reforms in the Cabinet meeting scheduled Tuesday. The meeting, re-scheduled for Friday, has been again postponed to Tuesday due to political uncertainty.  

The finance ministry is also expected to announce the much-awaited Rajiv Gandhi Equity Scheme (RGES) for encouraging retail investments in capital markets today, following it up with the release of Kelkar report on fiscal consolidation tomorrow.
 
A proposal to raise price of sugar sold through ration shops, restructuring loans of power discoms and approval for some large infrastructure projects are likely to be on the agenda of the Cabinet.

Though the government was also planning to seek Cabinet for 49% foreign direct investment in insurance and pension, it may now tread on the path very cautiously considering the political compulsions. Finance Minister P Chidambaram had approved a proposal for a higher ceiling in both the sectors and the finance ministry has been waiting to take it to the Cabinet.

Official, however, said it would be difficult to get the Bills cleared in the current environment.

Earlier this week, the Finance Minister had said some measures could be announced in the Cabinet and Cabinet Committee on Economic Affairs meeting this week and next week. He had said the Securities & Exchange Board of India would also announce steps to revive investor sentiment when its board meets by the end of this month.