Many miles covered in 2006, several more to go in 2007

continued to chug along, billowing profits and strategies to climax as a management guru. The opening up of the container business to 11 private entrepreneurs will see containerisation of the Indian economy over the next decade; it will be further powered by the building of freight corridors.

Not all ideas were in the bricks and mortar space — the creation of an enabling infrastructure, in the form of changes in the way companies file information or the first steps towards full convertibility, for instance. The initial hiccups in the former notwithstanding, this year should see how e-filing plays out. But resistance to increasing FDI limits in insurance, delays in pension reforms, amending the Banking Act are reforms that have been discussed until death, and which the year 2006 will record as sacrifices to the coalition polity of India. How a small group of elected representatives can cheat their own constituencies is reflected in unending delays in pension reforms, turning them into a conference joke — “it will be tabled in the next session”. Meanwhile, millions remain without access to long-term, low-cost retirement corpuses.

As we end the year with a quick policy synopsis, here’s wishing you readers in the business of making, influencing, studying policy, much to chew on in 2007.

Retail

• Feb 06: Guidelines issued for FDI in ‘branded’ retail allowed up to 51%

• Nov 06: Brand, trademark acquisition transactions no longer require RBI prior approval

Banking and finance

• Feb 06: Investment limit of mutual funds in foreign equity and debt instruments raised from $1 billion to $2 billion

• Mar 06: Forward Contracts (Regulation) Amendment Bill 2006 — allow option trading in commodities derivatives

• Jul 06: Sebi approves guidelines for real estate mutual funds

• Oct 06: Capital account convertibility — first steps announced by RBI in October review

• Nov 06: FDI in stock exchanges pegged at 26%; next month, foreign portfolio investment in stock exchanges allowed upto 23%, taking the total foreign investment to 49%

• Nov 06: Investment limit of mutual funds in foreign equity and debt instruments hiked further from $2 billion to $3 billion

• Dec 06: Comprehensive bill on insurance approved by cabinet includes hike in FDI cap to 49% from 26% in the sector

Broadband and broadcast

• Jan 06: Entry fee and license fee for telecom service providers reduced

• Sep 06: Uniform licensing procedure for satellite communications, broadcast and multimedia services

SEZs

• Feb 06: SEZ policy in place, nearly nine months after Parliament passes Act

• Aug 06: Cap of 150 on SEZs removed

Company affairs

• Aug 06: Electronic filing of information kicks of under MCA21, an e-governance project

Civil aviation

• Mar 06: Delhi and Mumbai airports handed over to private consortia (GMR and GVK)

Power and petroleum

• Jan 06: Power tariff policy moots competitive bidding for distribution, multi-year tariff framework

• Mar 06: Private players to be allowed in nuclear power sector

• Aug 06: In principle permission for autonomous fuel price adjustments by oil marketing companies

• Dec 06: Natural gas pipeline policy and framework for city gas distribution, 100% FDI allowed

• Dec 06: Sixth round of national exploration licensing policy launched in Feb ‘06, records highest number of bids so far

Railways

• Jan 06: State monopoly in container transportation by rail ends

• Feb 06: Dedicated Freight corridors approved in principle

Education

• Nov 06: Proposed legislation, Foreign Education Providers (Regulation) Bill, cleared by group of ministers to allow FDI in higher education

• Dec 06: Parliament clears 27% reservation for OBCs in centrally aided educational institutions. Separate bill for unaided institutions to be placed before House

Compiled by Indicus Analytics