Competition in the new milieu

By Our Special Correspondent

CHENNAI, FEB. 11. The Chairman of the Committee on Competition Law, Mr. S. V. S. Raghavan, today suggested that the objectives of the proposed law could include revamping policies relating to the small-scale industry sector, besides those on market dominance and labour.

Delivering the keynote address at the two-day annual convention of the Madras Management Association (MMA), devoted to the theme ``Competition in the New Order'', Mr. Raghavan emphasised the need to distinguish between consumer interest and public interest. He said often in the name of public interest, which should embrace the needs of both consumers and manufacturers as part of the social system, competition was sought to be stifled and consumer interests seriously impaired, and favours conferred on specific interest groups.

The proposed competition law, which should supplant several existing laws and not supplement them, could preserve the essence and spirit of competition while harmonising the conflict between competition policy and government policy.

The Industries (Development and Regulation) Act might no longer be necessary except for considerations of location (avoidance of urban concentration) and protection of the environment and heritage/habitats.

Mr Raghavan said there should be no reservation for the SSI sector in the case of those products which were under import OGL (open general licence) and SIL (special import licence). There should be a progressive reduction and ultimate elimination of reservation for the SSI and handloom sectors.

The government should divest its shares and assets in State monopolies and public enterprises in all sectors other than those subserving defence and security needs and sovereign functions. All State monopolies and public enterprises should be under the surveillance of the Competition Policy to prevent monopolistic, restrictive and unfair trade practice on their part.

Concerns relating to WTO agreements should be squarely addressed, Mr. Raghavan said, adding that substantial reduction of tariffs would pose a serious challenge to domestic businesses.

Mr. K. C. Pant, Deputy Chairman of the Planning Commission, in his inaugural address read in absentia, said civil service reform should constitute the centre-piece of the second generation reforms and invited suggestions on how this could be done.

Dr. K.Venkatasubramaniam, Member of the Planning Commission (Union), called upon industries to eliminate the dependence on the government for provision of higher education, research and training and set up their own centres of learning as was common in the US.

Mr. R. Jagannath, President, MMA, welcomed the gathering.

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