Even as the much awaited World Bank 2018 report on ease of doing business is just a day away, Sunil Bharti Mittal says that it remains a “major concern”, in India. At an ET awards function event held last week, Sunil Mittal said, “The ease of doing business remains a major concern.” The Founder and Chairman of Bharti Enterprises also credited the Narendra Modi-led government’s efforts saying, “ I know the government is very focused on this, the PM wants our ranking to go up. You come out with fantastic policies.”
In the same address, Sunil Mittal described how he was stunned to get approvals for a merger in Ghana in a flat three days despite the holding companies being based in The Netherlands. According to him, it still takes much longer for such processes in our country.
So, what is his solution? “My appeal to the government is to create an inter- ministerial framework, a committee may be, where we can present with logic as to what needs to be changed and you will either reject the logic or buy it. Then the government must take a position as quickly as possible,” he said. “We can’t get to three days. But can we get to 30, may be 60 days? We really need such a framework,” he noted. Further, Sunil Mittal cited the case of the merger of a 100 per cent subsidiary with the parent, saying it takes up to five months to get the requisite approvals in India.
However, Sunil Mittal also said that the government has de-clogged the courts to have the National Company Law Tribunals, but termed the progress on this as “slow” as they are taking “time to stabilise.” Notably, India has moved up marginally to 130 rank in ease of doing business among 190 countries evaluated by the World Bank, and the government aims to break into top 100.
Sunil Mittal also lauded the the government’s Rs 2.11 lakh crore bank recapitalisation plan announced last week. According to the veteran industrialist, the move may help banks, which are sitting on excess liquidity right now due to their “reluctance” to lend because of high NPAs.