Government needs internal system to settle disputes with private companies

Planning Commission Deputy Chairman Montek Singh Ahluwalia today pitched for an internal system by government for settling disputes with private sector players to improve business climate in the country. 

"Government should set up internal mechanism (for settling disputes with private sector). If you want to improve ease of doing business. This is a major reform I am talking about", Ahluwalia said at The Economist conference here. 

According to Ahluwalia, it takes a lot time to settle disputes between government and private players in courts and that about 80 per cent of cases in the courts seem to be of government appeals, including tax cases. 

He said in this scenario the government should have an agency or an arbitrator for resolving disputes. 

Ahluwalia said he was of the view that while dispute between two public sector companies can be resolved by the government, so was not the case with private sector. 

On the growth prospects, he said, "The task of bringing 5 per cent economic growth (in 2012-13) back to 7 per cent is not contingent on new reforms. You need to take decisive action to remove and unclog some of the bottlenecks that have emerged." 

He suggested that "90 per cent of all the government's energy, in next 12 months should be spent on this problem, which will definitely get you back to 7 (per cent economic growth)". 

"Most of what need to be done is not reforms but implementation which do not require any single change in law", Ahluwalia said adding the average economic growth rate of 8 per cent is feasible "but not on business as usual basis". 

Ahluwalia also advocated opening coal mining sector for private players and said, "There is no rationale of keeping coal nationalised when petroleum is not. Petroleum is much more valuable resource and it is not nationalised." 

He also stressed on the need to bring more private investment in infrastructure sector to boost India's economic growth. 

"Certainly, in energy and infrastructure sectors put together, it is totally clear that there is no chance whatsoever of meeting India's infrastructure needs if you rely entirely on public sector. You simply forget about 8 per cent economic growth without private investment," he added. (Economic Times)