The Hindu Business Line : PM hopes to resolve FDI issue through dialogue

The Prime Minister, Dr Manmohan Singh, administering the oath of office and secrecy to the Deputy Chairman, Planning Commission, Dr. Montek Singh Ahluwalia, in New Delhi on Saturday.

New Delhi , July 17

THE Prime Minister, Dr Manmohan Singh, today said the heat generated over the Budget proposal to hike foreign direct investment (FDI) cap in civil aviation, insurance and telecommunications, even by allies of the Left parties supporting from outside, would be resolved through dialogue and there would be "a smooth sailing in the end".

"I think there will always be problems. But I have great faith in the inherent patriotism of my colleagues in various political parties... all issues will be resolved through dialogue" Dr Singh told reporters here soon after the swearing in ceremony at his residence for the Planning Commission's Deputy Chairman, Dr Montek Singh Ahulwalia, and six other full-time members.

The Prime Minister also defended the inclusion of six Union Ministers as ex-officio members of the Planning Commission, contending that "a judicious mix of politicians and technocrats is what the country needs to move forward with the process of socio-economic change".

He also said the relevance of the commission as an important think-tank and a link between the Centre and the States could hardly be gainsaid. Earlier, the Prime Minister administered the oath of office and secrecy to Dr Ahluwalia and the six others.

Later briefing media persons about the meeting, which lasted for more than two hours without the ex-officio members, Dr Ahulawalia said the Prime Minister was concerned about the deficiencies in the delivery mechanisms.

He said Dr Singh urged the Plan panel to work out how various development programmes could be implemented effectively. He said the meeting discussed in detail the new policies and priorities of the Government besides various initiatives announced in the Budget.

Mr Ahluwalia said the Prime Minister suggested that all the members of the Planning Commission get acquainted with the developments in their domains quickly so that social imbalances could be ironed out and the economy put on track to achieving 7 to 8 per cent GDP growth. He said the issue of revisiting the entire methodology of Centrally Sponsored Scheme and their transfer to States also figured.

The Deputy Chairman said the Plan panel would expedite the mid-term appraisal of the Tenth Plan (2002-07) to evolve new initiatives and policy directions in tune with the National Common Minimum Programme of the Government.

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