As many as 87 per cent of the company heads, CFOs, seniors and board functionaries, the ASSOCHAM interacted with, feel that there is feeling of a clean government, certainly at the top level among the ministers, secretaries, along with an impression that there is an oversight mechanism well at work.
The chamber spoke to about 105 corporate heads in the last one week. Besides, the issue of perception is discussed threadbare in various ASSOCHAM sectoral councils, headed by well-known industry leaders, academica, doctors and bankers.
We keep discussing the perception issue of the Prime Minister Mr Narendra Modi's Government at our policy making organs and sectoral councils and there is this overwhelming feeling that there is a new style of functioning in the government, ASSOCHAM Secretary General Mr D.S. Rawat said.
However, it is the 'Play It Safe' approach which is creating problems of slow movement in some of the key infrastructure projects like roads, ports, power, coal and environment issues etc.
For instance, in the absence of environment clearances at the Centre and state levels, thousands of ready to move in houses are stuck in the NCR. The real estate developers are ready to hand over flats, but the issues like bird sanctuary nearby have not been resolved, resulting in delays causing financial loss and suffering to middle class people who have booked these units.
Sharing their experience at the implementation level, the corporate senior functionaries feel that it is the project execution levels that the officials are taking a 'safe' approach. They want to go by the rule - book which at times is beset with impractical and outdated rules. Any deviation from these rules would involve exercise of discretionary powers which these officials are not willing to use,' the ASSOCHAM report noted.
It specially noted the problem with regard to officials at the project level in regard to projects in the highway sector.
When it comes to banks, the focus among the bankers, from branch manager CMD's office is excessively on the non-performing assets (NPAs). The interaction between the industry officials and bankers indicated that quarter on quarter, the targets are to somehow reduce the NPA ratios.
In the process, the priority has shifted from fresh proposals and projects. In any case, bankers have become a lot more circumspect about the large projects. What is serious is the fact our banks, especially among PSUs, have not built solid risk management systems and depend on the conventional methods of hits and trials. We need to have in place the modern risk management system which should be strictly followed. Once this is done there would be a lot more improvement among the bankers. The industry too needs to learn and go a long way in this regard, the chamber pointed out.
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