In line with its intention to focus on the ‘aam-aadmi’, the government would enact a new law (the Congress manifesto called it the National Food Security Act) to provide 25 kg of rice and wheat per month at Rs 3 a kg to all families living below poverty line (BPL). “This legislation will also be used to bring about broader systemic reforms in the Public Distribution System,” she said.

Another area where the UPA would focus itself is the expansion of public investment in infrastructure sectors, while encouraging public-private partnerships. “Bottlenecks and delays in implementation of infrastructure projects because of policies and procedures, especially in railways, power, highways, ports, airports and rural telecom will be systematically removed¿A large number of PPP projects in different areas currently awaiting government approval would be cleared expeditiously. The regulatory and legal framework for PPPs would be made more investment friendly,” she said, signalling possible changes to the model concession agreements (MCAs) for various sectors.

Observing that the country has benefited from large foreign investment flows, the President said foreign direct investment (FDI) needed to be encouraged through an appropriate policy regime. There is also need to augment resources in the banking and insurance sectors to permit them to serve the needs of society better, she pointed out. The Bill to amend the Insurance Act drafted by the UPA during its previous rule seeks to increase FDI in the sector to 49 per cent from 26 per cent now.

The government, Patil said, will recapitalise public sector banks and also give statutory backing to the pension regulator. In fact, the government has already drawn a Rs 20,000-crore recapitalisation blueprint for about 18 banks over the next two years. It is also seeking World Bank funding for the same.

... contd.