More FDI, clarity on coal, gas pricing this month: Chidambaram
13 Jun 2013
In a scenario of sagging industrial production and rising inflation, finance minister P Chidambaram on Thursday said the government will announce host of decisions, including further lifting of foreign direct investment (FDI) caps and clarity on pricing of domestically produced coal prices by the end of this month.
He further said there was no need for panic over the declining value of rupee – even as the currency plunged to a new low of Rs58.98 per dollar this week - and that the domestic currency would regain the recent losses and stabilise.
"I am looking forward to more reforms ... I expect a number of decisions in the next few days and weeks ... in June, you can expect a number of decisions taken and implemented that will accelerate reforms and spur investments in critical sectors," Chidambaram said at a media briefing in New Delhi.
He said decisions will be taken on coal and gas pricing, coal allocation to power plants, FDI limit in various sectors, including defence, and skill development.
Chidambaram said the Securities & Exchange Board of India board will on 25 June take a decision on the K M Chandrasekhar Committee report on rationalisation of foreign investment norms.
On the declining rupee, which was trading 58.48 this morning and which was the backdrop of the briefing, Chidambaram said, "There is no reason for panic ... countries with large current account deficit have taken a hit on currencies. The rupee will find its level. We are concerned more about volatility,'' he said.
Noting the recent decline in gold imports with satisfaction, Chidambaram appealed to the people to "resist the temptation to buy gold" saying it will dramatically change the worrying current account deficit position.
Chidambaram, however, ruled out any immediate hike in gold import duty, saying he doesn't want to be "too unpopular".
Chidambaram said Prime Minister Manmohan Singh has called a meeting with him and other key advisers to discuss steps to revive investment and stalled projects.
Chidambaram said the steps taken by the government since August last year have yielded results and the fiscal deficit has come down to 4.9 per cent in 2012-13 and inflation has moderated.
The economic condition is stronger today than what it was in the same period last year, he said, adding that lot of people continue to keep faith in India's growth.
The government, he said, will leave no stone unturned to achieve the revenue targets in the current financial year and hoped that fiscal deficit of 4.8 per cent is achievable. "If it is better, so be it," he added.
"Revenue collections are satisfactory. I will achieve my revenue target. I will leave no stone unturned to achieve the revenue target," he said.
Chidambaram further said the real concern is the performance of the crude, natural gas and fertilisers sector as they have recorded negative growth in last three years.
"We need to get our act together. I am sure we can share some decisions in July," he said.
