minister of state for industry) met the press
jointly
to explain the new industrial policy reforms package. The finance minister held centre-stage, but the presence of five ministers was meant to convey the impression that all were on board. Almost all the questions were on foreign investment, the public sector and the abolition of MRTP controls, and all of them were fielded by Manmohan Singh himself—and that too aggressively!
The most detailednews report that appeared about this unusual event was carried in the 27 July 1991 edition of
The Hindu
and gives the full flavour of what transpired there.
Industrial Policy Not Anti-worker: Manmohan Singh
From Our Special Correspondent
New Delhi, July 26
In an unusual move, the Government today fielded five senior Central Ministers to emphasise the point to the press that the new industrial policy neither meant a go by to socialism nor would be detrimental to the interest of workers.
Denying the charge that the policy would mean a shift towards capitalism on behalf of other Ministers—Dr. Manmohan Singh, Finance, Mr. K. Vijay Bhaskar [
sic
] Reddy, Law and Justice both with cabinet rank, Mr. P.R.Kumaramangalam, Law and Justice and Mr.P.K. Thungon, Industry with Minister of State rank—the Minister of State for Industry Prof. P.J. Kurien asked how could socialist goal be achieved without increasing production.
The centrestage at the press conference was occupied by Dr. Manmohan Singh who said the process of industrial and economic transformation did not mean reneging on efforts in the direction of poverty alleviation, reducing income and wealth disparities, unemployment or rural-urban disparities. He said, social objectives enshrined in the Constitution would remain and quoted Pandit Nehru to say that ‘instrumentalities must be adjusted to changing circumstances’. While the effort would be to modernise without tears he said ‘we are committed to protect the worker’s interest and modernisation process would not be achieved by breaking their backs’. Besides referring the cases of sick companies to BIFR [Board for Industrial and Financial Reconstruction], the Government would also contribute Rs. 200 crores to the proposedNational Renewal Fund, he said.
Regional balance: On ensuring regional dispersal of industries, while Prof. Kurien was trying to say that there should be no apprehension on that count as special incentives would be given to ensure it, Dr. Manmohan Singh was really blunt. He said the Government was not going back on its commitment to ensure regional balance. But the earlier policies regulating industries to go to backward areas just did not work, he remarked, citing Bihar. Bihar had lots of industries but it still remained backward. There was no point in compelling capital to move in a particular area where its contribution to the local population in terms of quality jobs was minimal. Stressing the need for a positive and promotional approach, Dr. Singh recounted the example of Eastern UP to suggest that industries set up there did not create job opportunities matching the local skill. He felt the new policy was far superior to the old approach of regulating through industrial licenses. Under the new policy it would now be possible to effect substantial expansion by existing units even if it were at a new location.
Again Dr. Manmohan Singh rescued Prof. Kurien when pointed questions on foreign investment were raised. According to him the proposed Special Empowered Board would negotiate with multinational corporations (MNCs) as they had the technology. To a query on BHEL which was languishing for lack of orders and as to whether the entry of MNCs would not hit it further, Dr. Singh said, ‘In these areas if somebody wants to come, we will discuss. But it should be understood that they (foreign investors) also wanted to make money,’ he said and asked, ‘why should they put their money here otherwise. If BHEL had no orders where will it be for these
jointly
to explain the new industrial policy reforms package. The finance minister held centre-stage, but the presence of five ministers was meant to convey the impression that all were on board. Almost all the questions were on foreign investment, the public sector and the abolition of MRTP controls, and all of them were fielded by Manmohan Singh himself—and that too aggressively!
The most detailednews report that appeared about this unusual event was carried in the 27 July 1991 edition of
The Hindu
and gives the full flavour of what transpired there.
Industrial Policy Not Anti-worker: Manmohan Singh
From Our Special Correspondent
New Delhi, July 26
In an unusual move, the Government today fielded five senior Central Ministers to emphasise the point to the press that the new industrial policy neither meant a go by to socialism nor would be detrimental to the interest of workers.
Denying the charge that the policy would mean a shift towards capitalism on behalf of other Ministers—Dr. Manmohan Singh, Finance, Mr. K. Vijay Bhaskar [
sic
] Reddy, Law and Justice both with cabinet rank, Mr. P.R.Kumaramangalam, Law and Justice and Mr.P.K. Thungon, Industry with Minister of State rank—the Minister of State for Industry Prof. P.J. Kurien asked how could socialist goal be achieved without increasing production.
The centrestage at the press conference was occupied by Dr. Manmohan Singh who said the process of industrial and economic transformation did not mean reneging on efforts in the direction of poverty alleviation, reducing income and wealth disparities, unemployment or rural-urban disparities. He said, social objectives enshrined in the Constitution would remain and quoted Pandit Nehru to say that ‘instrumentalities must be adjusted to changing circumstances’. While the effort would be to modernise without tears he said ‘we are committed to protect the worker’s interest and modernisation process would not be achieved by breaking their backs’. Besides referring the cases of sick companies to BIFR [Board for Industrial and Financial Reconstruction], the Government would also contribute Rs. 200 crores to the proposedNational Renewal Fund, he said.
Regional balance: On ensuring regional dispersal of industries, while Prof. Kurien was trying to say that there should be no apprehension on that count as special incentives would be given to ensure it, Dr. Manmohan Singh was really blunt. He said the Government was not going back on its commitment to ensure regional balance. But the earlier policies regulating industries to go to backward areas just did not work, he remarked, citing Bihar. Bihar had lots of industries but it still remained backward. There was no point in compelling capital to move in a particular area where its contribution to the local population in terms of quality jobs was minimal. Stressing the need for a positive and promotional approach, Dr. Singh recounted the example of Eastern UP to suggest that industries set up there did not create job opportunities matching the local skill. He felt the new policy was far superior to the old approach of regulating through industrial licenses. Under the new policy it would now be possible to effect substantial expansion by existing units even if it were at a new location.
Again Dr. Manmohan Singh rescued Prof. Kurien when pointed questions on foreign investment were raised. According to him the proposed Special Empowered Board would negotiate with multinational corporations (MNCs) as they had the technology. To a query on BHEL which was languishing for lack of orders and as to whether the entry of MNCs would not hit it further, Dr. Singh said, ‘In these areas if somebody wants to come, we will discuss. But it should be understood that they (foreign investors) also wanted to make money,’ he said and asked, ‘why should they put their money here otherwise. If BHEL had no orders where will it be for these
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