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Competition in the financial sector will be expanded. Public sector
banks will be given full managerial autonomy. Interest rates will
provide incentives both to investors and savers, particularly
pensioners and senior citizens. The UPA government will never take
decisions on the Employers Provident Fund (EPF) without
consultations with and approval of the EPF Board. Regulation of
urban cooperative banks in particular and of banks in general will be
made more effective. LIC and GIC will continue to be in the public
sector and will continue to play their social role. In addition, the
social obligations imposed by regulatory bodies on private banks and
private insurance companies will be monitored and enforced strictly
Labour
- The UPA government is firmly committed to ensure the welfare and
well-being of all workers, particularly those in the unorganized sector
who constitute 93% of our workforce. Social security, health
insurance and other schemes for such workers like weavers,
handloom workers, fishermen and fisherwomen, toddy tappers,
leather workers, plantation labour, beedi workers, etc will be
expanded.The UPA rejects the idea of automatic hire and fire. It recognizes that
some changes in labour laws may be required but such changes must
fully protect the interests of workers and families and must take place
after full consultation with trade unions. The UPA will pursue a
dialogue with industry and trade unions on this issue before coming
up with specific proposals. However, labour laws other than the
Industrial Disputes Act that create an Inspector Raj will be re-examined
and procedures harmonized and streamlined.
Public sector
- The UPA government is committed to a strong and effective public
sector whose social objectives are met by its commercial functioning.
But for this, there is need for selectivity and a strategic focus. The
UPA is pledged to devolve full managerial and commercial autonomy to
successful, profit-making companies operating in a competitive environment.
enerally profit-making companies will not be privatized.
All privatizations will be considered on a transparent and
consultative case-by-case basis. The UPA will retain existing
"navaratna" companies in the public sector while these companies
raise resources from the capital market. While every effort will be
made to modernize and restructure sick public sector companies and
revive sick industry, chronically loss-making companies will either
be sold-off, or closed, after all workers have got their legitimate dues
and compensation. The UPA will induct private industry to turn-
around companies that have potential for revival. The UPA government believes
that privatization should increase competition, not decrease it. It will not
support the emergence of anymonopoly that only restrict competition. It also
believes that theremust be a direct link between privatization and social
needs---like, for example, the use of privatization revenues for designated social
sector schemes. Public sector companies and nationalized banks will
be encouraged to enter the capital market to raise resources and offer
new investment avenues to retail investors.
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