Flurry of ordinances likely to speed up reforms

The government is likely to issue a series of ordinances to implement several economic reform measures in the run-up to early general elections.

An ordinance to provide statutory backing to the Pension Fund Regulatory and Development Authority was likely, official sources said.

The Banking Regulation (Amendment) Bill, 2003, which seeks to do away with the 10 per cent ceiling on voting rights, might also be issued as an ordinance, the sources said.

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There may also be ordinances aimed at making special economic zones the engines of growth and to provide tax breaks to banks and institutions when they are restructured.

Finance Minister Jaswant Singh has set an internal deadline of April 1, 2004, for restructuring ailing financial institutions. While the Bill to corporatise the Industrial Development Bank of India and convert it into a bank has already been cleared by Parliament, the restructuring of Industrial Finance Corporation of India and Industrial Investment Bank of India is still on the anvil.

While talks are on to merge IFCI with one of the public sector banks, there is also a proposal to merge IIBI with IDBI. Restructuring measures such as these will require tax breaks, which will be facilitated through the issue of an ordinance.

According to the sources, some issues relating to labour reforms may also be addressed through edicts. Specifically, amendments to the Industrial Disputes Act and the Contract Labour (Regulation and Abolition) Act, which are yet to be placed before Parliament.

Amendments to the Employees' State Insurance Corporation Act and the Employees' Provident Fund Organisation Act, which seek to extend the coverage of the respective laws to more employees and hospitals and also to provide a unique social security number to all provident fund subscribers, are also pending.

A pilot project under the Unorganised Sector Workers Bill has been cleared, and will take off on January 23. It seeks to provide universal health insurance, life insurance and pension to 370 million workers in the unorganised sector eventually.

The labour ministry is currently working on amendments to the Payment of Wages Act to enhance the wage ceiling. It is also looking to amend the Emigration Act to set up an Indian Overseas Workers Welfare Fund and the Payment of Bonus Act to increase the quantum of bonus to employees.