'Corporates should have stake in political process'

By Our Special Correspondent

BANGALORE, NOV. 28. The Union Minister of State for Coal and Mines, Mr. R.S.Prasad, today called upon corporates to have a stake in the political process in the country in the hope that it would enhance the quality of polity as well as governance.

Inaugurating the Ninth Quality Summit of the Confederation of Indian Industry (CII) here, Mr. Prasad said it was a good sign that the performance of chief ministers was being assessed. The reforms process had acquired an elitist image, and it was for the captains of industry to percolate the benefits of the reforms to the people at large.

The process of training in principles, tools and techniques of quality and their application in governance had to be further strengthened. He urged the CII to organise training programmes for government officials and politicians.

One of the impediments in quality governance, he said, was corruption, and politicians, bureaucrats and business houses were all to blame for this. The Union Government, was trying to simplify procedures and make the decision-making process transparent. "The demystification of the Budget-making exercise, the simplification of trade policy, the abolition of industrial licences, and the near disappearance of the permit quota raj are all steps taken by the Centre to provide cleaner governance."

"We have taken quality too casually in the past," he said, and pointed out how in a protected environment complacency had grown. The investment in the 240 public sector undertakings was to the tune of Rs. 2,30,000 crore and the returns were a meagre Rs. 9,062 crore. "It is the tax-payers' money, and should things be allowed to continue like this?" he asked.

Delivering the keynote address, the ITC Chairman, Mr. Yogesh Deveshwar, said companies should not be in the sole pursuit of creating shareholder value, but work towards the creation of more economic activity which would benefit people at large. There was need for equitable growth, he said adding that he hoped that the needs of the Indian poor would be addressed.

The flow of foreign direct investment and savings should be towards productive ventures which would help the base of the economy grow, he said.

Calling upon companies to get their act together, particularly in the light of globalisation, he said the induction of China into the World Trade Organisation was a formidable threat. The companies had to work towards quality, core competency and enhancing productivity.

Talking about ITC's turnaround from its crisis period in 1996, he said the company had repositioned itself by working at its strengths. It was now exploring new business opportunities using Information Technology. He said the programme now served over two lakh farmers and would touch the lives of five lakh farmers by June next. "We are setting up infrastructure in and out of the villages, which will create good shareholder value."

The Chairman of ABB and Chairman of the CII Institute of Quality, Mr. K.N.Shenoy, said industry should concentrate on cutting down waste, enhancing productivity, improving quality on a continuous basis, shortening the time taken to market the product, better customer orientation, and accent on business excellence.

He said government attention and action was required in the areas of physical infrastructure, commercialisation of agriculture, education, fiscal probity, financial sector reform, transparent disinvestment programme and labour law reform.

Mr. Venu Srinivasan, Managing Director, TVS Motor Co. Ltd., and Chairman, National Committee on Quality (CII), in his welcome address said the storm of competition, had hit Indian industry, causing considerable damage to corporate India. This had been further worsened by global recession.

Indian industry, he said, could emerge stronger from this baptism by fire. "But for that to happen, there has to be concerted action on the ground at the individual unit level. Actions which would ensure higher efficiency, increased productivity, lower wastage and greater customer satisfaction, are required. All these are elements of total quality."

On the occasion, three companies were accorded commendation certificates for their commitment to Total Quality Management. They were BHEL, Trichy; JK Tyres; and Raychem RPG. Infosys Technologies was accorded a commendation certificate for significant achievement.

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