Mr. Shankar also said that the NMCC would also propose to the new government to set up public funded equity funds to extend and release financial assistance to industry in its mid and smaller segments since such industries suffer from credit from public and financial institutions.
Elaborating on pruning of Labour and Factory Laws to just three from existing number of close to 44, the Member Secretary added that the council's recommendation to this effect has gone to the government very recently. The new government should be able to condense the new labour laws into three categories that will address the labour concerns relating to their safety and security, their legitimate rights to work and provide them welfare, pointed out Mr. Shankar.
The new labour laws should facilitate foreign investors to park their surpluses in India with an atmosphere of putting up manufacturing facilities in which the role of government is bare minimum, he stressed.
On the issue of public funded Equity Fund, Mr. Shankar was of the view that the council is toying with this idea and it would soon propose to the new government to put up such funds to accelerate manufacturing, especially in the medium and small scale industries to grant them financial assistance since manufacturing initially does not provide for higher returns and the banks and financial institutions are reluctant to release liquidity to this category of industry, he added.
He also demanded that the new government should be able to create an eco-system in which manufacturing is accelerated as in the absence of sound eco-system, the manufacturing has fallen to a negative zone in the last couple of years.
In his welcome remarks, Mr. Anil Khaitan, Chairman, Industry Affairs Committee, PHD Chamber said that until a focused attention was paid to increasing India's manufacturing by policy makers, it would be harder to obtained desired and intended targets. He, however, welcomed Mr. Shankar's disclosure to set up public funded equity funds for financial assistance to small scale sector and also appreciated the council's move to suggest to government to minimize the number of labour statute to govern the industry.
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