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Private power policy may be overhauled
New Delhi: With pressure and criticism mounting against it from various quarters, both within the Government and outside, the private power development policy introduced by the Union Ministry of Power in 1991 may soon be in for an overhaul. According to knowledgeable sources, a section of bureaucrats in the Prime Minister’s office (PMO) has veered round to the view that all may actually not be right with the private power development policy in its present form. And unless it is modified soon enough, with proper checks and balances, to guard against the inflated cost of projects, the policy may become a political tool in the hands of the Opposition to embarrass the Centre with. A beginning in this regard has already been made by the Opposition in Parliament.
Tight monetary policy likely
Bombay: The Reserve Bank of India may not be averse to a tight monetary policy to battle the recent sharp rise in liquidity and doubledigit inflation. The slack season credit policy is to be announced on May 14. A clue to RBI thinking is available in the latest report on Trend and Progress of Banking in India 1992-93 (July-June). Detailing policy perspectives, it states, “the viability of the banking sector would require modulation of monetary and credit policies in such a way that banks do not face large pre-emption of lendable resources. Considerable progress has already been made to reduce the effective SLR and the medium-term programme is well on course as the SLR on incremental domestic liabilities is already 25 per cent and as certain liabilities (like the new non-resident deposits schemes) carry a zero reserve requirement, the average effective SLR is likely to come down as per the medium-term programme to 25 per cent by the end of 1995- 96.”
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