National Competition Policy 2nd largest economic reform : Moily

India Infoline, September 13, 2011

We are looking forward to table the draft of policy in the Parliament in December, 2011.”

In one of the rounds of discussions with India Inc on the proposed draft of National Competition Policy, Dr M Veerappa Moily, Honourable Union Minister for Corporate Affairs while interacting with the industry captains at Indian Merchants’ Chamber (IMC), said that the Policy will be finalized and brought in the Parliament in December, 2011.

The discussion at IMC was a part of the consultative meeting organized by Ministry of Corporate Affairs and IMC. Dr Moily said, “After rounds of discussions with the industries, a meeting with all states would be held on November 24, 2011. We are looking forward to table the draft of policy in the Parliament in December, 2011.”

The proposed measure of formulating the Competition Policy which would also look into making of the Competition Law, Moily termed it as the second biggest economic reform in the country after the introduction of policies on liberalization, privatization and globalization in 1991. “The Competition Law is one of the components of the Policy.

The proposed Policy would make a sea-change in the existing ways of running businesses and would also improve the standards of corporate governance.” Several countries including, Australia, Hong Kong and other European countries have already implemented such policies and they have witnessed improvement in their Gross Domestic Product (GDP).

About the new Company Law, which is under discussion since 2009, Dr Moily said, “There were about 300 recommendations for amendments and hence, we are formulating a comprehensive new Company Law altogether and we will put the Bill before the Parliament in upcoming Winter Session.”

Ms Bhavna Doshi, President, IMC, said, “With such measures like, National Competition Policy, overall Competition Effectiveness indicators of India will improve and move upward in the international competitiveness index. Besides, for ease of doing business, there also other areas of Corporate Affairs that can be addressed by the Ministry.”

Pradeep Mehta, Founder Secretary General, Consumer Unity and Trust Society, emphasized on making the policy draft effective for various aspects including, making the producers rule-bound, transparent, fair and non-discriminatory. Similarly, Dhanendra Kumar, Former Chairman, Competition Commission of India presented an overview of the draft policy and its objectives.

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