Explain, says Modi

Making headlines the last few days was the World Bank’s latest report on ease of doing business. India’s ranking having only marginally changed led to some confusion. As nothing misses the attention of the Prime Minister, there were whispers that he was given a detailed explanation by the commerce minister. And so, ministers and officials from key ministries were seen explaining to the media where and how the World Bank report has missed the crucial achievements of the government.

But matters didn’t end there. At his 16th interaction through PRAGATI — the ICT-based, multi-modal platform for Pro-Active Governance and Timely Implementation — Modi asked all chief secretaries and secretaries to study the report and analyse potential areas where there is scope for improvement in their respective departments and States. He asked for a report within a month, which would be reviewed by the Cabinet secretary.

Up or down?

Has the revised ranking for ease of doing business last year proved to be a blessing in disguise?

A downward revision in performance can sometimes be better news than an improvement. It was thanks to the World Bank’s decision to pare down India’s last year’s ranking in the survey to 131 from 130 which prevented the country from stagnating on the performance scale this year.

Although moving up just one notch to 130 this year is hardly reason to celebrate, it at least gives the country the satisfaction of having improved — however insignificantly.

Now, the hope is that next year the World Bank doesn’t carry out a downward revision of this year’s ranking!

Perform, don’t politicise

Narendra Modi needn’t worry too much about the Goods and Services Tax (GST) rollout, as his government’s best negotiator and one of the few who is popular among the Rahul Gandhi brigade, Finance Minister Arun Jaitley, is in charge of the whole process.

But, as a word of caution, the Prime Minister, it seems, has told his team members to make GST less political and focus on meeting its deadline of April 1, 2017.

Avoid washing dirty linen

No sooner had the biggest corporate battle in recent years broken out in Corporate India than the question on everyone’s lips was: What did Prime Minister Narendra Modi say to Ratan Tata and Cyrus Mistry?

Theoretically speaking, it is a corporate dispute and has nothing to do with politics. Besides, what can the Government do? But, if whispers are to be believed, a call was made from the boardroom by Ratan Tata to Finance Minister Arun Jaitley, who in turn briefed the Prime Minister.

Ratan Tata’s letter to the PM was termed “customary communication’ to keep the Prime Minister in the know of developments in one of the biggest corporate houses. However, both Tata and Mistry met him separately. It appears the communication from Modi is to sort it out within the four walls and not wash dirty linen in public.

Legal loophole

Imagine a situation where a lender (bank) has initiated liquidation proceedings against a defaulting company. There is nothing in the current insolvency and bankruptcy law to prevent the promoter of that defaulting company from going abroad (read, run away from the country with all the spoils) during pendency of the proceedings, say legal experts and worried bankers.

Our lawmakers, it seems, are yet to learn from the Vijay Mallya episode. Or is it a conscious decision to leave the door open for the great escape, wonder legal experts. The only saving grace could be the age-old Passport Act — but will lenders muster the courage to impound the passports of promoters whose companies are facing liquidation?

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