New Delhi, Oct.5 (ANI): Confederation of Indian Industry Director-General Chandrajit Banerjee has described the Union Cabinet's approvals for the Insurance Bill, Pensions Bill, and the revision of the Companies Bill and the Competition Bill as being of great significance, as it marks the continuation of the reforms thrust that began on 13th September.
In a statement issued on Friday, Banerjee said industry in India and the global investor community have taken due note of the swift and decisive actions by the government and sentiments would only northbound from here on.
CII is hopeful that all political parties would see the merit of these bills and facilitate a speedy passage during the forthcoming winter session of Parliament.
The Companies Bill has been through various iterations and the industry anxiously awaits a new corporate law that would lay stress on responsible self-regulation.
The new law would strengthen the concept of shareholders democracy and offer protection of the rights of minority stakeholders. The law proposes to introduce responsible self-regulation replete with disclosures and accountability and make possible substitution of government control with shareholder control over internal corporate processes and decisions.
These proposals would enable unfettered functioning of corporates and are welcome. CII is, however, concerned about the mandatory two percent spend on CSR activities, considering India would be the first country in the world to do so.
CII feels that mandating CSR expenditure may actually prove counterproductive, with companies merely undertaking activities to fulfill the legal requirement, rather than creatively innovating integrated strategies that create enduring sources of livelihood and other societal value.
Being a very technical Bill, CII will wait to see the detailed language of the = document to assess the impact on industry, but CII is very hopeful that the Cabinet has kept the concerns of industry in mind while clearing this important legislation.
CII is particularly happy with the Cabinet's decision to allow upto 26 percent FDI in the Pension Sector and upto 49 percent FDI in the Insurance Sector.
This decision would provide the much-needed impetus to investments in these sectors, assist in capital formation and help channelize much needed long term funding to infrastructure sector, which is undeniably one of the key imperatives for fueling nations economic growth. (ANI)
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