In the one year he has been Industry Minister, Murasoli Maran has changed the profile of the Ministry by bringing back the powerful Foreign Investment Promotion Board from the PMO. Maran has undertaken more reforms in this Ministry than any of his predecessors. But his Ministry also got caught in scraps with O Suzuki on the Maruti issue, G V Ramakrishna on disinvestment and C M Ibrahim over the Tata-SIA project. In the first interview after completing a year in office, Maran discussed the achievements and problems of his job with The Indian Express. Excerpts:

What would you count as your major achievements in the one year you have spent in office?

The major achievement during has been the complete shift in policy in the field of foreign investment. We have demystified the Foreign Investment Promotion Board. At the same time there are some difficulties encountered by foreign investors because FIPB is only a single door. After entering the door they have to go through several procedures in Delhi and other states.

But at least under the PMO it had the power to override objections from all ministries. Under your ministry, it doesn't have the power to do this.

It is not a question of power, it is a question of contacting ministries and eradicating the problems. It is not a super cabinet. It is a facilitating body. The climate has improved but we can't be complacent because China got $40 billion. We want to make a scientific study. We have entrusted this job to NCAER. They will prepare a country sector matrix for FDI (foreign direct investment). For instance which country is interested in investing in which area. And why there is delay.

Why are there so many cases of the industry ministry differing from other ministries? The most prominent example is Tata-SIA. Then, the Food Processing Ministry has not agreed with Industry Ministry on disinvestment of 49 per cent in the bottling ventures of Coke?

We are not laying down policy for other ministries. Lets take the example of the Civil Aviation Ministry. Previous policy was that the government will permit 40 per cent of foreign investment in domestic airlines. Later, the Civil Aviation Ministry thought that the Indian Airlines needs some protection for some time. When there was a policy, we wanted to apply the policy. Now the Cabinet has changed the policy. So my ministry cannot interfere.

Will the Cabinet take another look at the Tata-SIA venture?

I don't know. So far nothing has happened.

Are you satisfied with the public sector reforms?

Public sector reforms were a non-starter for a long time. So now we are kick-starting it. We have redefined the commanding heights of public sector. We have identified nine public sector undertakings for more autonomy. We have evolved a paper, it is before the Cabinet. Any time the Cabinet will consider it. We've also revived six public sector undertakings at the cost of Rs 1,578 crore. Like Heavy Engineering Corporation, Scooters India, Hindustan Photo Films etc. In the last five years, only five were revived with a financial package of Rs 495 crore.

Why are there problems between the government and Suzuki?

I am not aware of the problem. What is the problem. You just tell me.

Suzuki wants to increase its stake to expand production, but the government does not want to allow it. There is talk of changing the managing director.

There are several routes. There is the debt route. The debt-equity ratios of Maruti is almost zero. We can go through the debt route, we can go through the GDR. It has been agreed by the board, to go through the debt route. So there is no difference of opinion at all.

What is the status of the Disinvestment Commission's reports?

The report contains two parts. One is the capital restructuring and selling of PSUs. That part is being taken care of by the Finance Ministry. The other part is by this Ministry. The Cabinet has approved the mechanism for financial restructuring. The Core Group will be in charge of the physical disinvestment.

There was a lot of delay in processing the reports.

The government has several almirahs full of recommendations of various committees and commissions. So it is difficult for any government to take a decision.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.