SENSEX NIFTY
Sep 21, 2012, 01.06 PM IST | Source: CNBC-TV18

More reforms seen in Telangana, power sector: Anand Rathi

Following the government’s stance on moving ahead with its policy action regardless of the political turmoil, Praveen Chakravarty of Anand Rathi Financial Services believes that we will continue to see some bold moves in terms of reforms.

Following the government’s stance on moving ahead with its policy action regardless of the political turmoil, Praveen Chakravarty of Anand Rathi Financial Services believes that we will continue to see some bold moves in terms of reforms. According to him, the next step of reform moves would be in the form of more fundamental issues such as Telangana and power sector.

Chakravarty added, “I truly believe there is a revival of confidence in the government. Also in some sense, whatever has happened in the past few days with one of the close allies pulling out of the government is a blessing in disguise.”

Below is the edited transcript of the interview

Q: What did you make of the noises from the government yesterday; does it assure you that the government may move ahead with some policy moves regardless of the kind of political turmoil which had cropped up yesterday?

A: I remember the old bastion of the Congress that ‘Dalal Street ecstasy is not what should dictate policy making’, I guess that time has changed and we are seeing a government that is starting to believe in trickle-down economics.

You used the word ‘noise’; as far as yesterday’s announcements are concerned, I think that is a fair characterisation. It does look like we will continue to see some bold moves in terms of reforms. But I also think there will be some fundamental issues that will be tackled such as the Telangana issue. The Telangana issue or the power sector issues or the land acquisition act has far more impact on businesses than a symbolic FDI in retail or an FDI in insurance. The next step of reform moves would be in some of these more fundamental issues such as Telangana and power sector.

Q: Do you see any resolution on the land acquisition bill front over the next few weeks if the government wants to move ahead?

A: It is all about the law of eminent domain and we, as a country, will have to recognise that we have to face that upfront and get past resolving that. Contrary to perception, I don’t think the difference is between industry and what the various political party want in the bill are actually that wide. I think it’s a very solvable issue. If only we could get all of them to sit down either in parliament or outside and talk about it, that, in my view, will be a far reaching reform move than any of these other symbolic moves.

I am not sure if the government’s stance could be characterised as suddenly turning bold and I also don’t agree with the view that this is somewhat analogous to the Indo-Nuclear deal. This for the first time the issue is about economics and politics. The Indo-Nuclear deal was about power and wasn’t so much about economics. In that sense, I truly believe there is a revival of confidence in the government. Also in some sense, whatever has happened in the past few days with one of the close allies pulling out of the government is a blessing in disguise.

1 2

ADS BY GOOGLE

video of the day

All portents good; optimistic for next few Diwali's: Damani

Explore Moneycontrol

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.