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Catalyst for decisions

Ashok Dasgupta

COME to think of it, the official foreign jaunts of the level of the Prime Minister - like the one to the US for which Mr. Atal Bihari Vajpayee emplanes in the wee hours of Thursday - should be organised a bit more often. For, whatever be the outcome of this fortnight-long visit, as other such visits before, there are some indirect benefits that come out clear.

For one, the very urgent need of having a meaty economic policy package ready on offer - before the Prime Minister leaves the shores - acts as a catalyst for quick decision-making. And the result is a package of far-reaching decisions towards reforms in various sectors which, perhaps otherwise, would have taken a couple of months, if not years.

Take the reforms package for the telecom sector, decisions on which have been taken by the Cabinet and its other committees over the past few days. First, a decision was taken to corporatise the Department of Telecommunications (DoT) which in itself is a big event because the matter had been steeped in debate and controversy for quite some time. Alongside - and this is of interest to prospective investors in the US and elsewhere - the Government also permitted 100-per cent foreign direct investment in a reas such as Internet service providers (ISPs), not providing gateways, voice-mail and e-mail services.

Then came another far-reaching decision on unrestricted entry of private players into basic telephony. Also, in keeping with the standards abroad, came the TRAI recommendation on reducing the tariff charges for STD and international calls to lower levels as a first step.

And on the very eve of Mr. Vajpayee's departure came another reform bombshell as far as Videsh Sanchar Nigam Ltd (VSNL) is concerned. To reduce the international call rates further through competition, it has been decided to end VSNL's monopoly in intern ational traffic by April 2002.

Also, to enthuse interest in the power sector, the tariff order has been issued by the CERC for the mega Hirma project in which the US-based power major, Southern Electric's subsidiary, SEAP, is a partner with Reliance. Surely, efforts will also be made to resurrect some of the other projects in which US power majors had evinced interest but have since withdrawn having made very little headway.

Certainly, such a package for the opening up of the telecom sector - as also for attracting the much-needed FDI - would not have been possible in so short a time but for the Prime Minister's visit. And this is not new. It has happened once too often in t he past, with every Prime Minister in previous regimes carrying some or the other attractive economic package for offer abroad.

Since, apart from the address at the UN Millennium Summit and bilateral talks with Bangladesh and the Netherlands on September 8 and a function of Bharatiya Vidya Bhavan and an ayurvedic conference on September 9, the rest pertain to economic ties with t he US, the important part is the last leg in Washington starting September 13 while the official welcome is to be accorded to Mr. Vajpayee on September 15.

Helping the Prime Minister will be Government's triumvirate, namely the Finance Minister, the Minister for External Affairs, and the Commerce and Industries Minister. As for the accompanying officials, some of whom are to join the delegation in the US, a re the three Secretaries of Commerce, Steel and Power.

Representing the Finance Ministry will be the Chief Economic Advisor and the Special Secretary, Insurance, but in his capacity as Spl. Secretary External Finance Division. Perhaps because there are no finance matters involved, the Secretary, Department o f Economic Affairs, and the Finance Secretary are not a part of the delegation.