Govt policies hamper innovation: FM

"Many issues, we are in a denial mode...It takes 2,500 litres of water to produce a kg of paddy. We must change the ways to grow paddy. Sugar mills, chemical factories and steel plants can be made self-sufficient in power," Finance Minister P Chidambaram said.

He, however, added that our industrial and taxation policies and administrative rules do not allow such innovation.

Addressing an award function of energy research institute TERI, the finance minister said, "Corporates must get out of this denial mode, and confront issues. They must engage their employees to be innovative and think out of the box..."

He said TERI is likely to submit its report on a roadmap for energy conservation in various sectors to the government in a couple of days.

"TERI is working with the government, and I'm told that its proposal would be submitted to the government in a day or two, (it would) fix time lines and quantitative targets which can be achieved in our own self interest. We will make efforts to achieve these targets," he said.

Later TERI director general R K Pachauri said the proposals would fix targets for energy conservation in major sectors during 11th five year and twelfth five year plan periods.

Though India is far behind others in terms of pollution, the Finance Minister said the country has to take preemptive steps in this regard as consumption is bound to rise once growth increases further.

He said since the corporate world is the early beneficiaries of the liberalisation policies, it has the responsibility to consume resources judiciously to reduce wasteful consumption so that resources could be made available to those who do not have access to them.

Pointing out that corporate social responsibility would add to profitability of companies, the Finance Minister expressed hope that they would come forward to employ 1,00,000 disabled people during this fiscal once the policy in this regard is prepared as per the Budget proposal.

Chidambaram later gave away TERI awards for corporate social responsibility, environmental friendly technologies and corporate awareness programmes on HIV/AIDS. Prominent corporates who bagged the awards, included Reliance Industries, Satyam Computer Services, Hindustan Zinc and Exide Industries.