Mumbai, Sept 15: Former finance minister Dr Manmohan Singh expressed his reservations on the success of the government's disinvestment programme. Speaking at the 27th National Management Convention organised by the All India Management Association (AIMA) Dr Singh said, "If the disinvestment is planned well, the government can realise substantial amount of funds once its shares in VSNL and MTNL are offloaded. But without a clear consensus, the process is merely hurtling directionless.""For efficient public sector reforms, the government should first evaluate whether the PSU needs a joint venture through a fresh infusion of funds. If a blanket policy of disinvestment is applied to all PSUs, the government will not even realise the Rs 10,000 crore that they plan to put into the budget," Dr Singh added.
Even if the government has no consensus on handing over majority control to foreigners, it is time the government started implementing functional autonomy to the public sector undertaking according to Mr Singh. On government's plans to reduce spendings Dr Rakesh Mohan, Director General of National Coucil of Applied Economic Research, said even if the government fires all the civil servants, it would still have a fiscal deficit. "We will not be able to blame our books. What we instead need to do is to retire debt and therefore have lower fiscal charges," added Dr Mohan.
Andersen Consulting International chairman Vernon Ellis warned India not to be complacent about low prices and well-qualified Indian labour. He said, "India cannot afford to be complacent, especially in the area of software skills. Salary structures will have to change and increase in India unless you want to see a mass exodus of IT talent to foriegn shores." India needs to see why in spite of the resources, entrepreneurships, technological skills, the country still has apprehensions, he added. Carrying off on more optimistic note, Andersen Consulting managing partner (India and Middle East) Sid Khanna said, "India is clearly on the right path of reforms process, but it has to move beyond selling the standard line of skilled manpower, efficient judicial systems and a competitive market."
Straying away from the policy matters and delving more on the ground realities, Tata Sons executive director R Gopalakrishanan said, "Poverty is a big business. Economists and politicians thrive on it. But for a professional manager, poverty is an anathema because it does not allow you to have markets." According to him, economic policies and reform processes should have social symbols without which a holistic development pattern cannot emerge.
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