PM takes stock of economy

Economic Advisory Council asked to prepare mid-year review of economy within two weeks.

Taking a break from heavy-duty diplomacy, Prime Minister Manmohan Singh has initiated a comprehensive review of the economy.

Over the next 10 days, he will take a close look at the performance of several key sectors, including power and health, and also approve the Comprehensive Economic Cooperation Agreement with the Asean.

As a first step, the Prime Minister today held a meeting with Finance Minister P Chidambaram and Planning Commission Deputy Chairman Montek Singh Ahluwalia.

He has also asked his Economic Advisory Council (EAC), headed by former Reserve Bank of India Governor C Rangarajan, to put together a mid-year review of the economy within the next two weeks.

PMO spokesperson Sanjaya Baru told Business Standard that the meetings were a stock-taking exercise to ascertain the progress made since the Budget was announced earlier in the year and what measures were needed for the next year.

"We are six months into the financial year, so it is a good time. The economy is high on the Prime Minister's agenda," he said.

Several initiatives have been lined up for the infrastructure sector. In addition to the Infrastructure Committee meeting today, the Prime Minister has convened a second meeting of the committee next week to approve a special purpose vehicle for infrastructure financing.

A proposal to do away with the requirement to obtain a Pre-Public Investment Board clearance for public-private partnership projects is also slated to be cleared.

The Prime Minister had also asked Power Minister PM Sayeed to make a presentation on the current power situation. Similarly, Health Minister Anbumani Ramadoss has been asked to come up with a presentation on the current situation regarding communicable diseases in the country.

A meeting to approve the Tribal Land Rights Bill has also been slotted. A decision has now been taken that the Bill, granting land ownership rights to tribals residing in forests, will not be applicable in areas designated as tiger sanctuaries.

The Bill is regarded as a significant measure to help Naxalite-prone regions like Andhra Pradesh where tribals have been demanding ownership rights over forest land.

Baru said the Prime Minister had also convened a meeting this week of the Knowledge Commission headed by Sam Pitroda to discuss some of its initial ideas. He will also chair a meeting on the setting up of two more Indian institutes of science at Pune and Kolkata.

A meeting of the Trade and Economic Relations Committee (TERC) will also be held next week to approve the India-Asean Economic Cooperation Agreement.

The agreement is expected to be formally signed during the South Asian summit in Kuala Lumpur in December. The TERC is also expected to take a view on the proposed Free Trade Agreement with South Korea.