UPA II began by making a slew of promises to be fulfilled in the first 100 days, but most of them remain on paper.
When the United Progressive Alliance (UPA) returned to power two years ago, it made promises, to be fulfilled in 100 days. But several ministries failed to achieve their goals.
That was perhaps the beginning of a period of policy inaction for UPA II, only to intensify later with various probes into scams, the biggest being the one on 2G spectrum allocation.
Either new policies were not announced or they remained on paper, with some exceptions. “The record in both policy making and implementation has been poor,” says a former bureaucrat.
Pointing out that the Budget session of Parliament saw action on some pending finance bills, D K Joshi, chief economist, Crisil, said some investment decisions, like on the urea policy, should be taken in the coming months. “Leveraging is easier in the first half of the tenure.”
B B Bhattacharya, former vice chancellor at Jawaharlal Nehru University (JNU), said the stalled Parliament proceedings had cost UPA II dear. “Decision-making has been slow. Inflation management has been weak, too.” However, he credited the government for efficient handling of the global economic turmoil.
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Here’s a glimpse into the actions and inactions of UPA II across sectors:
TELECOM & 3G
While auction of spectrum for 3G telecom services and broadband wireless access (BWA) was seen as a success story for UPA II for fetching big bucks (over Rs 1 lakh crore), the process was actually a spillover from UPA I. The 3G and BWA auction was planned for early 2008, but executed only in 2010. Mobile number portability, which allowed subscribers to switch from one operator’s platform to another in the same service area, was rolled out early this year and is seen as a big plus for the telecom sector. However, state-owned Bharat Sanchar Nigam Ltd (BSNL) posted a loss for the first time, attributed to red-tapism and mis-governance.
RETAIL ROADBLOCK
Despite years of consultation and multiple surveys, there’s been no headway yet on foreign direct investment (FDI) in multi-brand retail. There are indications that foreign investment may be permitted, but with riders.
FINANCE, A MIXED BAG
After much inaction, the government tabled the Banking Laws (Amendment) Bill, Pension Reforms Bill and Factoring Services Bill. It also set up the Financial Sector Legislative Reforms Commission to clean up financial sector laws.
The Direct Taxes Code timeline is on track for April 2012 rollout, but only after diluting some proposals. The Goods and Services Tax, however, has already missed two deadlines.
The government fell short, by Rs 18,000 crore, of the Rs 40,000-crore disinvestment target last year.
FOOD PRICES
Crucial decisions like allowing export of 500,000 tonnes of sugar under the open general licence was cleared after a long delay over a difference of opinion between the agriculture and food ministries. Also, although foodgrain production in 2010-11 has been good, a long-term policy on price management is the need of the hour.
Is de-control of petrol price effective?
Although petrol was officially decontrolled in June 2010, the government did not allow its oil marketing companies to increase the prices after this January. A day after the Trinamool Congress electoral victory, a steep hike of Rs 5 a litre was announced.
AADHAR LANDMARK
Aadhar, or the Unique Identification (UID) scheme, launched under the guidance of former Infosys board co-chairman Nandan Nilekani was a big-bang project for UPA II. More than five million UID numbers have been issued till end of April.
SUSPENDED AVIATION
Environment clearance for the Navi Mumbai airport is perhaps the only significant action in the sector. The Airports Authority of India’s plan for the development of the city side of the airport has not progressed. Air India’s performance worsened, with the airline facing three strikes.
ALL QUIET IN MEDIA
The proposed FM-3 radio auction has been a non-starter, despite signals that bidding was round the corner.