The Hindu Business Line : CII mulls setting up election fund

Chennai April 24 The Confederation of Indian Industry (CII) plans to set up an industry-wide election fund for funding of potential parties and set up a cell to address issues of harassment faced by SMEs, Mr N. Srinivasan, Adviser to the CII President, said on Tuesday. The election fund would be launched as part of the Integrity India Campaign launched by CII and Young Indian (Yi) Forum in October. The funds would be for election purposes and distributed to parties through cheques in a `transparent and open manner.' The CII had discussion in this regard with political parties and there was a mixed reaction to the idea, he told newspersons from The Hindu Group.

The Tata Group has an election fund with contribution from its group companies. The money is distributed to political parties based on the strength of each party in the Parliament. The CII would also follow a similar model, he said without disclosing the size and time to start the fund.

Companies would contribute voluntarily to the election fund and CII would set up a trust to manage the fund. Discussions have started with a few companies, he said.

Tax issues

In cooperation with the Union Ministry of Finance, the CII is also planning to set up a cell to address issues of harassment faced by small and medium entrepreneurs in regard to tax issues. Companies can write on the issues to the CII, which would in turn take up with the Ministry, he said.

Mr Narayan Sethuramon, Chairman, National Yi, said the national integrity campaign was designed to work largely with the youth of the country and through them raise a national level awareness, debate and dialogue on `transparency, accountability and ethical behaviour' in all facets of national endeavour.

The entire programme was driven and implemented by Yi Forum, which was up by the CII, he said.

According to Mr Srinivasan, corruption accounts for 1-1.5 per cent or $12 billion of the country's GDP (Gross Domestic Product). Corruption was one of the biggest hindrances for lesser inflow of foreign direct investment, he said.

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