Reform Options For ...

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[The Finance Ministry suggested several policy reform options for sustaining high economic expansion in its economic survey for the fiscal year 2007-08, presented to Parliament on Thursday. The following were among them: Insurance Raise a cap on foreign investment in the insurance sector to 49 per cent. Allow 51 per cent foreign holdings in insurance companies providing products such as health and weather cover to rural residents and for agricultural-related activities, including agro-processing. State Run Firms Complete the process of selling 5-10 percent equity in previously identified profit-making, state-run firms. List all public sector enterprises and sell a minimum of 10 percent of equity to the public. Auction all loss-making state firms that cannot be revived. For those firms in which networth is zero allow negative bidding in the form of debt write off. Foods Phase out government control of the sugar industry, for which officials set a monthly free sale quota, and the pricing of fertilisers and drugs. Coal Amend Coal Mines and Nationalisation Act to allow regulated entry into coal mining. Privatise old coal mines to improve recovery of &quot;in-place&quot; reserves by 5-10 percent, subject to a professional independent regulator for safety and environment issues. Oil Sell old oilfields to the private sector to attract improved or enhanced oil recovery techniques. Retail FDI Allow foreign equity in all segments of the retail trade. Allow 100 percent foreign equity in branded, specialised retail chains (e.g. luxury brands, consumer durables, semi-durables) Banking Allow 100 percent foreign direct investment in greenfield, private rural banks. Such a bank would be free to set up any number of branches in any rural or semi-rural area. It would be free to lend to agriculture and allied sectors, agro-processing and agro-input industries anywhere in the country and to any industry located in non-urban areas. Such a bank would also be free to take over other private sector banks. As an incentive, such a bank could be allowed expansion into small towns when the general FDI policy on banks is liberalised. Factories Act Increase work week to 60 hours (from 48) and daily limit to 12 hours to meet seasonal demand through overtime. Railways State run rail track company to own new tracks and signals for planned freight corridors. Free entry of private and public-private partnership in rail freight companies. (Reuters)