Education: Back to school, and beyond

3% Share in the GDP of funds earmarked for education sector in 2007-2008

6% The targeted share

•In 2008, the UPA government earmarked Rs 34,000 crore to the education sector — an increase of 20% from 2007. But this is less than the 34% increase in 2006-07

• The Right To Education Bill, which grants every child between the ages of 6 and 14 years the right to free and compulsory education, must be a priority in the coming months

• These are in the pipeline: 30 new universities, eight new IITs, seven new IIMs, 20 new IIITs, five new IISERs, two schools of planning and architecture, 10 NITs, 373 new degree colleges and 1,000 new polytechnics

• Access to higher education will remain a dream for many unless interest rates on education loans are reduced.

Insurance: FDI cap that would fit

• The Insurance Bill has met with stiff opposition from the Left parties as it would allow for hike in FDI in private insurance companies to 49 per cent from 26 per cent

• Other proposals include increasing LIC’s paid-up capital from Rs 5 crore to Rs 100 crore and transfer of insurance ombudsman’s administrative control to the IRDA

• Already passed by the Parliamentary Standing Committee, the Bill is now with a group of ministers

Banking: Fair share of rights

• Banking Regulation (Amendment) Bill, 2005 has been pending in the Parliament because of stiff opposition from the Left parties and trade unions

• The most important proposal is to make the voting rights of shareholders in private sector banks equal to their voting shares

• Currently, voting rights of the shareholders are capped at 10 per cent, irrespective of their actual equity holding in the bank. Foreign investors can buy up to 74 per cent of a private Indian bank but their voting rights are capped at 10 per cent — a major deterrent for investors trying to gain management control

• The Bill is crucial as the second phase of opening up of Indian banking sector would commence in April 2009. As per this plan, foreign banks will have the opportunity to own up to 74 per cent of Indian private sector banks and 20 per cent of government-owned banks.

Pension: Spread it out

• The government had planned an ordinance for appointing a Pension Funds Regulation and Development Authority

• The Left objected and the ordinance lapsed

• The regulator is expected to break the monopoly of the Employees’ Provident Fund Organization (EPFO) in which both government and the private sector companies have to currently park their pension money

•A regulator can permit new pension funds and create the framework for them to operate in a transparent environment

Free trade agreements: Walk the distance

Asean: Differences over import duties on palm oil and crude petroleum from Malaysia and Indonesia are two irritants. However, the agreement is likely by year-end

Sri Lanka: The pact was supposed to be signed at the Saarc Summit later this year, but has been indefinitely postponed because of disagreements over negative lists and the services in which trade should be liberalised

European Union: EU wants India to further open up its markets. The stance of both the parties is the same as in the WTO. Pact likely by year-end.

Thailand: Negotiations on the backburner since we are already talking to Asean. Issues of taxation and value-addition norms are also stalling the deal

Retail: In the cold storage

• Phased relaxation of FDI norms for the $330-billion retail sector is on hold

• While FDI in single-brand retail is allowed, it is still prohibited in multi-brand retailing

• Currently, 100 per cent FDI is permitted in wholesale retail businesses and back-end operations whereas for single-brand retailing, FDI cap is 51 per cent

Labour: Work up reforms

• Unorganised Sector Worker's Social Security Bill, estimated to benefit 30 crore workers, is pending in the Parliament

• Also pending is Unorganised Sector Workers (Conditions of Work and Livelihood Promotion) Bill that aims to provide basic minimum standard on hours of work, payment of minimum wages, bonded labour and child labor

Health: Put on some weight

•The government has been unable to hike the outlays for the health sector to 3 per cent of GDP as promised in the Common Minimum Programme

• For this, budget allocation has to rise by at least 30 per cent a year. Current, increase is 15 per cent over the previous year

• At present, government’s expenditure on health is only about 1 per cent and was 0.98 per cent in 2006-07. The Centre’s share has increased to 0.34 per cent while it needs to be at least 1 per cent to reach the target of 2-3 per cent

•While the budgetary allocation for the National Rural Health Mission has not shown the necessary rise, the plan is also marred by infrastructural and political bottlenecks

•A new Rashtriya Swasthya Bima Yojana, to be launched in Delhi, Haryana and Rajasthan, providing cover of Rs 30,000 for BPL workers, would need efficient monitoring to show desired impact

Civil aviation: A skymap

•A long-term civil aviation policy is yet to come

•Taxes on ATF are yet to be slashed

•The tendering process for construction of the Navi Mumbai airport is not complete yet.

Pharma: Growth regimen

• The Draft National Pharmaceutical Policy 2006 awaits clearance by a GoM

• Since the GoM is still holding meetings, the policy has yet to derive its final version

• The industry waits for clarity on the price-monitoring issues

Coal, mining, steel: At the core

• Coal Bill 2000 has been pending in the Rajya Sabha due to the Left resistance. Its passage will facilitate private mining of coal

• Coal ministry is undecided on setting up a regulator which is expected to monitor coal prices

•The steel ministry has not re-classified steel as an essential commodity which will reduce the demand-supply mismatch of the alloy, or to cap steel exports

• Proposal to set up a regulator is also gathering dust

• New Mineral Policy up for the coming monsoon session

• Bill to amend the Mineral and Metals Development and Regulation Act is also expected to be tabled

• Impasse over Chiria iron ore mines in Jharkhand persists as both SAIL and ArcelorMittal are eyeing these

Commodities: Caught in the Act

• The amendment to the Forward Contracts Regulation Act (FCRA) has been hanging fire

• It will provide autonomy to the commodity market regulator, Forward Markets Commission (FMC), leading to better regulation

• Before the Forward Contracts (Regulation) Amendment Ordinance, 2008, FMC did not have regulatory powers and authority like the stock market regulator Sebi

• However, the ordinance lapsed in February and the commission is waiting for an autonomous regulatory authority status

Roads: The need for speed

• The amendment to the Forward Contracts Regulation Act (FCRA) has been hanging fire

• It will provide autonomy to the commodity market regulator, Forward Markets Commission (FMC), leading to better regulation

• Before the Forward Contracts (Regulation) Amendment Ordinance, 2008, FMC did not have regulatory powers and authority like the stock market regulator Sebi

• However, the ordinance lapsed in February and the commission is waiting for an autonomous regulatory authority status

The project completion rate

78 per cent 2006-07

56 per cent 2007-08

The project award rate

70 per cent 2005-06

17 per cent 2007-08