The Hindu Business Line : Left parties preparing plan to identify sources to fund NIF — To press for review of Govt sops to industrial units

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Left parties preparing plan to identify sources to fund NIF — To press for review of Govt sops to industrial units

Ambarish Mukherjee

New Delhi , Dec. 11

THE four Left parties are working on preparing a roadmap within the framework of the National Common Minimum Programme for identifying alternative sources of fund raising for the National Investment Fund (NIF).

The broad areas from where funds may come, according to the Left's perception, are recovery of banking sector's non-performing assets (NPAs), review of fiscal concessions granted by Centre and States, austerity measures in non-Plan expenditures etc.

Funds for the NIF are supposed to come from sale of Government stake in non-navratna profitable public sector enterprises and other sources.

Sources in the Left parties said "we are holding discussions and would present a note to the Government after the winter session."

Utilising NPAs: Left party sources said that whether recovered NPAs of the banking sector too could be utilised for social sector projects by bringing them in the NIF can be examined since commercial banks, by rule, had already created provisions for such assets.

Another issue that is being examined is the concessions and refers to the larger fiscal picture of the federal form of Government.

Social benefits: Left sources said that a review of all concessions extended by various State Governments to industrial initiatives is being discussed.

The State Governments as well as Centre had extended concessions for a large number of industrial projects coming up, particularly in relatively less developed geographical areas, and various types of tax rebates. The idea was that industrialisation in under developed areas would serve other social benefits.

"A review of the social benefits achieved in exchange of the revenue that the Government is forgoing for extending various tax rebates to these industrial enterprises should be undertaken and if they are not commensurate, corrective measures could be taken. This may lead to interesting revelations," sources said.

Check on PSU ads: Another area that the Government's Left allies want to hit upon is to restrict advertisements by public sector companies.

"PSU advertising must be checked. If I am travelling and need to fuel my car on the highway I will go to the nearest petrol station. It doesn't matter whether it is an IOC or a Hindustan Petroleum pump. Then why do these oil companies have to waste money on advertising?" says a party official while pointing out that the four PSU oil companies themselves have spent more than Rs 100 crore this year on advertisements and there are 240 CPSUs.

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