The textile industry apparently is happy with Smriti Irani retaining charge of the Textile Ministry as she is known for pushing the Finance Ministry hard while demanding funds for various schemes.
The Minister, once convinced of the need for funds for a particular purpose, would sit for long with Finance Ministry officials till she convinced them, say people in the industry.
With another determined woman, Nirmala Sitharaman, now heading the Finance Ministry, it will be interesting to see how such discussions pan out in the future!
1991 reforms 2.0
Now that Modi 2.0 is upon us and the economy having hit an air pocket, brace up for reforms of the 1991 era type. There will now be large doses of labour and land reforms if whispers in the corridors of power are anything to go by.
So don’t be surprised if the Modi government in the upcoming Parliamentary session comes up with a Bill consolidating 44 central laws into four codes — wages, industrial relations, social security and welfare and finally ‘occupational safety, health and working conditions’. Land reforms that would please foreign investors are also on the cards.
Why Nitish said no?
There are strong rumours that the Agriculture Ministry was given to Narendra Singh Tomar (who was identified for rural and panchayati raj) in the eleventh hour because the JD(U) refused to accept it. While it is fact that JD(U) leader and Bihar Chief Minister Nitish Kumar was unhappy that his party with 16 MPs in the 17th Lok Sabha was not given adequate representation in the Modi 2.0 government, he also was said to be unhappy that his party was offered the Agriculture Ministry.
According to the grapevine, Kumar felt that the Agriculture Ministry may prove to be a trap because of the damage done on the farm front in the last few years. The party may have to bear the cross for others’ sins.
Throwing open the doors
Newly appointed Commerce Minister Piyush Goyal is known for having an eye for detail. Taking charge of his new ministry, Goyal seemed to be visibly unhappy with the décor of his office. He is said to have asked his office staff to light up some corners, open up the doors and make rooms more spacious. Hopefully, Goyal will also as the Trade Minister leave no stone unturned to open the doors for Indian businesses in markets around the world.
Fire fighting from Day 1
Wherever Piyush Goyal goes, challenges cannot be far behind. From Power Ministry to Coal Ministry and now Commerce Ministry, he is always faced with challenges within the first few days in office, say observers.
As Power Minister, Goyal had to face the collapse of the national grid. As Coal Minister, he had to handle the coal shortage that emanated because of the Supreme Court cancelling coal block allocations. In the Renewable Energy Ministry, Goyal had to face the wrath of American complaints at the WTO.
This time, as Commerce Minister, he now has to fire fight the US decision to withdraw preferential trade status for India under Generalised System of Preference from June 5.
Saviour of last resort
Most PSUs are wary to bid for stressed assets despite lenders being ready for a massive haircut on the ailing projects. This is because public sector honchos are quite clear where value lies when it comes to companies referred for insolvency, as one top chief executive pointed out.
Recently when this chief executive was quizzed by hacks as to whether he would put in a bid for a stressed asset, he quipped: “The fact that this asset has reached us clearly means that the project has no takers at all.”.
This should be a clear enough message to policy makers trying to create a market for stressed assets.
Published On : 03-06-2019
Source : The Hindu Businessline
