Corporate affairs minister M Veerappa Moily has written to all chief ministers seeking their opinion on the proposed National Competition Policy, slated to be sent to the Cabinet in February. The state governments have been asked to send in their inputs by the end of December.
The policy seeks to promote fair competition among firms while nurturing smaller companies and those related to agriculture marketing societies.
The move is expected to ease supply-side constraints and help control inflation in the long run, Moily said. “Our aim is to create one national market and remove all barriers which would ease the supply side and this would bring down inflation by 50%,” Moily told HT.
The government is keen to do a detailed analysis of the impact of the proposed policy.
“We want to build consensus (on the policy) and we want all state governments to be part of it,” Moily said.
The policy would also involve the investigation of mergers and take-overs between firms.