Montek Singh Ahluwalia, the new member in the Planning Commission, has initiated a series of discussions with advisors handling various economic issues in order to breathe life into the somnolent panel.
This is being seen as a move to determine the nature of restructuring that deputy chairman Jaswant Singh wants to carry out in the commission. Singh wants to revive his earlier proposal to revamp the commission after making some modifications in it, sources said.
Following his meetings with advisors and officials in the plan panel, Ahluwalia is expected to apprise Singh about the nature and quality of work done by different departments in Yojna Bhavan.
Singh had earlier put up a proposal to the Prime Minister for revamping the Planning Commission and make its work more focused and responsive to the liberalised economic scenario in which the private sector is expected to play a major role.
The proposal, meant to be discussed in the cabinet, did not come up for discussion because the Prime Minister's Office sought certain modifications, sources said.
Ahluwalia is expected to help the deputy chairman modify the original proposal and send it back to the PMO.
The commission has so far been focusing on public sector investments and has paid very little attention on possible investment by the private sector. As a result, different economic ministries in the government have been dealing with the private sector at the policy and permission levels on an ad hoc manner without the advantage of advance planning.
Being a former finance secretary, Ahluwalia has both advantages and disadvantages as member of the plan panel. On one hand, he is in a position to bring about a better interface between government departments and the commission.
On the other hand, he is expected to face resistance from planning experts in view of his past differences on the size of the Ninth Plan. Among other things, he is expected to resolve differences over the delicate balance between the fiscal deficit and the size of public investment.
Ahluwalia's discussions with advisors are also significant because Singh has not convened a single meeting with commission experts since he took over as deputy chairman nearly four months ago.
