The government has decided to set up a Cabinet Committee on Competition (CCC) on the lines of the Cabinet Committee on Economic Affairs (CCEA) to promote fair competition among firms while nurturing the smaller companies and those related to agriculture-marketing societies. The move is also expected to ease supply-side constraints and help in controlling rising inflation in the long run.
The Ministry of Corporate Affairs (MCA) has recently moved a Cabinet note for setting up of the CCC and early implementation of the National Competition Policy (NCP) that involves policy intervention at the highest level in the government.
According to the ministry’s Cabinet note, a copy of which is available with HT, the NCP will be reviewed every three years. The existing anti trust body — the Competition Commission of India (CCI) — will report to CCC, the note added.
The government has missed the March 31, 2012 deadline.
“If the Cabinet approves, we should have the CCC in place,” M Veerappa Moily, corporate affairs minister, told HT. “Though we have missed the deadline, we would implement it at the earliest and the ground work is complete.”
While seeking the creation of the CCC, the MCA has also proposed setting up of a high-level advisory committee under Moily apart from secretaries from various economic ministries to help the government implement the NCP.
“Our aim is to create one national market and remove all barriers which would ease the supply side and would bring down inflation by 50%,” said Moily.
“The Central government will bring out all the issues related to matters enumerated in the NCP to the advisory committee before taking up the matter for further consideration of the CCC,” the Cabinet note said.