Sources, however, said that the finance ministry was still working out the selection process of the CRA. Earlier the Invest India Economic Foundation (IIEF) had proposed that selection of the CRA should be based on tenders. We will take a final call on the selection process in the next few days. We want to make the process an objective one, a source said.
Finance ministry officials said that the pension reform exercise was on track, in spite of the reservation of the Left parties on the reform process. The Left parties are believed to have opposed the participation of the private fund managers in the new pension scheme. However, these are internal differences. They may have certain reservations on certain issues but the basic guidelines have been outlined in the Common Minimum Programme (CMP) and that will be followed, an official said.
The selection of the CRA has already been delayed due to the general elections. It was supposed to be in place by June. The CRA, which will be granted a licence for 10 years, will be made operational in three phases. The first phase will be an eight-month period while the second and third would be seven-month each as per a proposal.