:: Dilip Cherian

Confidence restored

Dilip Cherian

June.14 : CLEARLY, THIS is just the first among the various key policy initiatives finance minister Pranab Mukherjee is expected to take to revive the economy. Just a week after he took over as finance secretary, Ashok Chawla restored the significance of the Foreign Investment Promotion Board (FIPB), which approves foreign direct investment proposals that do not fall under automatic route. The FIPB has now been brought under the ambit of the infrastructure wing in the finance ministry.

Though foreign investors and Indian industry with foreign partners have to approach FIPB for clearances not only for their initial investment plans, but also for any subsequent changes in ownership patterns, the board has been shuttling between key economic ministries. At one time, it was under the omnibus ministry of law, justice and company affairs. But when the National Democratic Alliance (NDA) government split the ministry, FIPB went to the commerce and industry ministry. When Jaswant Singh took over as minister for finance and company affairs, FIPB also moved with him. In May 2004, the United Progressive Alliance (UPA) came to power and spun the department of company affairs into a separate ministry, though FIPB stayed with the finance ministry.

Sources say that now with the FIPB brought into the new infrastructure and investment division within the ministry, under the guidance of joint secretary Govind Mohan, greater synergy in investment plans can be ensured.

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Post-poll reshuffle

MAYAWATI MAY well find that it is easier to send babus packing than to reinstate them. Already smarting from the Bahujan Samaj Party's (BSP) dismal performance in the general election, a Supreme Court directive to the Uttar Pradesh government to reinstate the 5,000 constables who were fired earlier is like a double whammy! But for now, it is the BSP netas and, of course, my favourite tribesmen who Behanji blames for her party's "non-performance".

Not content with transferring district police chiefs, she has followed it up by reshuffling the IAS pack, particularly those in the 12 districts where the BSP lost to Congress. Among those transferred are district magistrates Nitisha Kumar (Ferozabad), C.S. Bakhshi (Kaushambi), Santosh Kumar (Mathura) and R.K. Singh (Sultanpur). Meanwhile, home secretary Javed Ahmed is being sent to the Centre on deputation. Sources say that the position of Manjit Singh, principal secretary (home), is also shaky.

Interestingly, a similar exercise has been undertaken in Bihar as well, though not for the same reasons. After a solid showing at the hustings, a triumphant Nitish Kumar decided to reshuffle his departmental heads. In the ensuing exercise, 34 IAS officers, most of them posted at headquarters, have been transferred to districts and divisions. Clearly, after the elections, Mr Nitish Kumar realises that the mofussil areas hold the key to his continued success.