The Planning Commission on Tuesday emphasised the need for setting up "effective" regulatory institutions in civil aviation and ports sectors even as it said the functioning of the existing regulators in power and telecom was "uneven."
"It is clear that as we open up infrastructural investments to the private sector, appropriate and effective regulatory institutions will have to be established in view of the monopolistic nature of these facilities," K C Pant, deputy chairman of the Planning Commission, said, inaugurating the 83rd AGM of Associated Chambers of Commerce and Industry, in New Delhi.
He said such bodies would have to be set up in the civil aviation, ports and "eventually perhaps even in the railways."
Indicating the commission's dissatisfaction over the way the present regulators in power and telecom sectors were functioning, Pant said: "I would not like to comment further on the regulators we have in the power and telecom sectors, but their functioning has been uneven."
Pointing out that there was lack of expertise on regulatory principles and practices, Pant said the country was going through a process of "learning-by-doing, with all the teething troubles."
"There is an understandable reluctance on the part of the government functionaries, both political and bureaucratic, to fully cede control," he said, adding the need was to find ways to strengthen the regulatory systems in terms of internal capability and freedom from external pressures.
As these would be in the best interest of the producer as well as the consumer, Pant asked the industry associations to firmly back such proposals.
Pant said industrial growth and productivity, and purchasing power were greatly dependent upon development of human resources that would require world-class educational facilities.
The Tenth Plan had estimated that sustained industrial growth would be possible only if there was wide dispersion of purchasing power in the economy.
As the organsied sector accounted for only nine per cent of total employment in the country, he said, steady improvement in productivity in the unorgansied and informal sectors was necessary for sustained growth in purchasing power.
Pant said the economic recovery during the past one-and-a-half year had added to the confidence of the industrial sector and had prepared it to "fully engage in the process of globalisation."
Adding a word of caution, he said, "In doing so, we have to be sure that the support structures are appropriate and contribute to our competitiveness."
In his welcome address, outgoing president of the chamber R K Somany said the critical areas which would support and strengthen India Inc included strong regulators and institutions, sound infrastructure and good governance.