Ficci warms up to Congress

MANDATE 2004

Ficci functionaries discuss reforms issues with Manmohan Singh.

With the Congress and its allies set to form the new government, the Federation of Indian Chambers of Commerce and Industry (Ficci) is now trying to get its equations right with the party.

Ficci officials are busy shuttling among the party offices to warm up to the leaders of the Congress and its allies and pushing forward their agenda.

Ficci President Yogendra K Modi and Secretary General Amit Mitra met Congress leader Manmohan Singh, who is tipped to be the new finance minister, to discuss reforms issues and convey what India Inc sought from the new government.

"We will also be meeting Sonia Gandhi, Pranab Mukherjee and Kapil Sibal. Apart from them, there are other close friends in the Congress, with whom we will get in touch soon," Modi said.

Ficci, which was perceived to be close to the National Democratic Alliance (NDA), yesterday said a Congress-Left government was not a cause for concern. "We have co-habited with Congress government for 50 years before the NDA came to power. And we will do so even now," Modi said.

"As for the Left, the party will surely behave responsibly when it will be in power," he added.

Disinvestment and foreign direct investment could be the bone of contention between the Congress-Left alliance and the corporate fraternity.

The Communist Party of India-Marxist (CPM) has already voiced its dissent against the disinvestment initiative. This could make the going tough for chambers like Ficci, which promises to bargain hard for complete disinvestment and de-regulation of the loss making companies.

"For profit-making ventures, we will press the government to bring down stakes to 51 per cent and for non-strategic sectors like retailing, it should be 26 per cent. The presence of Left parties could make things difficult," Modi said.

"We are pinning our hopes on the fact that CPM has taken some reformist measures in West Bengal, and will not block disinvestment processes at the national level," Modi added.

Ficci is also holding a meeting to bring together 70 industrialists from various sectors to deliberate on reform processes and how the new government should carry forward the agenda. The chamber will unveil its new 10-point economic agenda on May 17.

Hard bargaining

• Ficci is perceived to be close to the National Democratic Alliance (NDA)
• Ficci has said it will bargain hard for complete disinvestment and de-regulation of the loss making companies
• The chamber will unveil its new 10-point economic agenda on May 17