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So, now monitoring and implementation would be easy? Monitoring by itself only provides information. When delays takeplace because people in the ministry are not processing things fastenough, monitoring itself can help. But, half the time, projectsare delayed not because the ministry is delaying its work butbecause clearances that have to come from other ministries are notavailable. That requires a problem resolution mechanism to getcooperation across ministries. In my view, investor confidencewould be positively affected if effective problem resolution is putin place that can get these large projects implemented. How will it work now? Issues that emerge from monitoring will be referred to theprincipal secretary to the prime minister, who can bring ministriestogether. Some compromise among ministries will be necessary andthe problem resolution mechanism will help to decide who shouldcompromise. In our system, anybody can stop any project and that isreally the problem. I think we need to get over it. This mechanism will be there for solving problems associated withall projects? For all projects in the infrastructure area. Similar problems inother areas have to be solved by different means. If the mechanismwe have set up helps to get infrastructure projects moving in thecurrent year, it will make a difference. It will also setprinciples for the future. Targets have been fixed and the problem-solving mechanism has beenput in place. How do you see this working? Planning Commission will do a review of the first quarter outcome.This could be by end- July, when we will know the first quarterperformance. If it looks after the first quarter review that theyare getting nowhere, then at our level, we will review what iswrong, to see if the problem is internal or inter-ministerial. Inthe latter case, the matter can be flagged to the principalsecretary. At the end of second quarter, there will be a PM-levelreview. These targets have been accepted by the ministers who havepromised the PM they will deliver. I am sure they will want to showtheir best performance. If things are not on track, we will knowwhat is the problem and if that problem is not getting resolved atthe principal secretary"s level, it should get resolved inthe Cabinet Committee on Infrastructure. Ultimately, some ministrymay need to be overruled. That can only be done at the cabinetlevel. That is the ultimate problem-solution mechanism. The prime minister spoke of taking steps to reach to nine per centgrowth. Which are the top priorities picked by the government now? Energy and transport, and transport means railways, roads, ports orairports. The railways have many legacy problems and they will takea long time to resolve. But they have put forth importantmilestones. In ports, minor ports have done very well. The majorports have not done very well, but we are told that issues relatedto security clearances have now been resolved and the shippingministry is optimistic on meeting the target of 42 ports. Besides infra, which could be the two critical areas for achievingnine per cent growth? Keeping control on the fiscal situation is obviously veryimportant. The finance minister has said we are going to stick tothe 5.1 per cent fiscal deficit target. He has also said he willcontain subsidies, which is good. We must also get over thenervousness of foreign investors. We can do a lot of things tore-assure them. Investors were concerned about some of theprovisions of GAAR. The finance minister has set up a committeeunder a senior official to talk to people. I hope these problemswould be resolved to the satisfaction of investors. Talking of the foreign investors" perception, FDI relaxationdecision that the government wants to take in several areas are notmoving forward? It is true the government announced FDI in retail, but it has beenheld back for more consultations. That will take some time. FDI incivil aviation has to go to the cabinet and I hope it will be donesoon. Things that need legislative approval may not be easy unlessthe opposition cooperates. But there is a lot that can be doneoutside what requires legislation, to get economy back on to theeight to nine per cent growth path. We should concentrate on thosein the short run. Apart from infrastructure, which are the other areas? I have mentioned fiscal deficit and taking care of GAAR-relatedproblems. A successful telecom auction which settles uncertainty inthis critical area will make a big difference and an EGoM islooking at that. A successful outcome on the telecom side willimprove sentiment. It has to be done this year, by the end ofAugust. GDP growth of 5.3 per cent in Q4 of 2011-12 has raised questions onthe nine per cent growth target fixed for the 12th Plan. How do yousee it? It is clear that GDP growth has slowed to worrying levels. TheGovernment must work towards a turnaround in growth performance. Weshould focus on reviving investment, which has slackened. I amhopeful that if we can take care of some of these infrastructureinvestment issues, and if the fiscal deficit looks like it iscoming under control, and if some of these reassurances on theforeign direct investment and FII side happen, we should see arevival of growth this year. I am not making a forecast. But, giventhat the last quarter was 5.3 per cent, even to get an averagebetween 6.5 to seven per cent, requires a quick turnaround.Whatever happens this year, there is no doubt in my mind that theunderlying growth potential of India remains between eight per centand nine per cent. Nine per cent when the global economy is robustand eight per cent otherwise. But to achieve that, we have to do alot at home. I think energy and transport are very crucial. Energy,most of all. You can"t grow at eight per cent if youdon"t have enough energy. The monsoon and interest rates. How important are these two in thecurrent scenario? We must work on the assumption that the monsoon would be normalthis year. The next scientific forecast will be available on June22, but so far the prediction is normal, which as you know meansplus or minus 10 per cent of the norm. As far as interest rates areconcerned, investors obviously want easier rates, but what mattersfor them is the long-term interest rate and not the repo rate whichis what the RBI controls. I do think the circumstances have becomelittle bit more favourable. Oil prices are down, commodity pricesare down. So, price pressure on inflation may be less. Hopefully, the fiscal deficit is also coming down, though it willtake time for the people to be sure about that. On that side also,there will be a little more room. Inflation is not yet comfortable.I would like to see it down at six per cent and it is not yetthere. But, with the softening of oil prices and softening ofcommodity prices, if we have a good monsoon, it might well comedown. RBI has to juggle all this information and take a call.However, I would say the press focuses too much on the short-termrate. What matters is liquidity and availability of resources withbanks and the longer-term rate. If the government borrows heavily,even if RBI alters the repo rate a little, it is not going to makethat much difference. I am an expert from carton-machinery.com, while we provides the quality product, such as China Flex Printing Machine , Slotting machinery, Semi Automatic Machines,and more.
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