Plan panel seeks public comments on Regulatory Reforms Bill
The Planning Commission is seeking comments from various stakeholders on the Regulatory Reforms Bill.

This Bill addresses many important issues plaguing the regulatory structure. The timing of the Bill is also important, as regulatory regimes have to be modified to cope with the changing demands of the state. This Bill suggests sweeping reforms in some of the crucial aspects of regulatory governance and incentives. However, this draft reform Bill raises a very contentious issue regarding the mandate of the regulator and the competition authority in matters of competition. The Bill does place the sector regulator and the competition authority in an adversarial position, while it need not be so and a cooperative relationship can lead to consumer welfare gains.
Antitrust institutions worldwide have long included regulated industries within their purview, working to ensure that regulated industries could not use the limits that regulation imposes on the normal competitive process to achieve anticompetitive ends. The very regulatory structure that exists to promote competition can create gaming opportunities for competitors bent on achieving anti-competitive goals. Such “regulatory gaming” undermines both the regulatory system itself and the longstanding complementary relationship between regulatory and antitrust law.
Several cases can be made for their complementarities: reduction in the scope for capture, creation of more focused missions through the separation of tasks and reduction in the incentives for “cover-ups” through a separation of ex ante (regulation) and ex post (antitrust) decisions between two unrelated players (regulatory agency and antitrust enforcers). So a calm, co-operative relation and not an adversarial one is one that we propose.

Trai tries to change horses midstream
The Telecom Regulatory Authority of India (Trai) has recommended that operators not be given free spectrum beyond 6.2 MHz when their licences came up for renewal, but must pay market rates based on 3G prices.

As far as the legacy issue of “non-pricing” of the spectrum allocated beyond the contracted limit is concerned, TRAI has been extremely bold in its suggestion that this assignment needs to be revisited and the pricing should be aligned to the market realities.
However, the recommendations and the alternatives offered are still arbitrary and non-transparent. Pricing of 2G using 3G price as benchmark is arbitrary, since the prices of apples cannot be used to price oranges. Any such act by the government will send a signal of capriciousness and irresponsibility in government policy. The implied loss of credibility can be costly for the government in all its transactions with the private sector. Moreover, responsibility must be fixed within the government for errant policy, especially the 2008 licencing policy. Why is this not being done?
However, there is one window of possibility of cleaning this pricing conundrum. Very soon, many licenses will be coming up for renewal. TRAI has been reiterating that the contracted spectrum is 6.2 MHz in respect of GSM and 5 MHz in respect of CDMA. The licensee applying for renewal should then be assigned spectrum upto the committed amount as per the present licence, and any additional spectrum that these licensees require to carry out their operations should be priced through a transparent auction.
It is time that the government understands the cost of a flawed public policy regarding the pricing of spectrum. The government can at least fix political responsibility; reams of TRAI recommendations will not fix that. In future it should commit to a rational policy in this regard and foreswear capriciousness and political discretion.

Government will set up GoM to decide on caste-based census
Following divisions over a proposed caste-based census, the Union cabinet has decided to form a group of ministers (GoM) to take a call on the controversial issue.

There have been many people writing both in favour and against re-introducing caste based census. While we are against, based on arguments of divisive nature of the exercise, incentives to lie if caste becomes a basis for targeting public policy programmes and it being an overall regressive step; it is also important to understand that caste enumeration per se has many problems. Sociologists have pointed out the enormity of the problem and the details of how to enumerate caste have now to be sorted out by a GoM.
I take the liberty of citing an eminent sociologist’s1 view on caste census:

Regulators get bogged down over turf wars
The Bombay high court will hear the Central Electricity Regulatory Commission’s (CERC) defence against a filing by the Forward Markets Commission (FMC), protesting the former’s refusal to allow futures trading in power.

Trading of electricity is in the power sector’s domain, one awaits for the judgment as this will create a case law precedence in matters relating to overlapping regulatory jurisdictions

One year on, CCI still doesn’t cover mergers, acquisitions
The ministry of corporate affairs (MCA) had earlier said the M&A norms were not notified because the competition regulator did not have enough staff.

Or maybe the corporate sector lobby has been successful in delaying the notification as their merger activities will come under the scrutiny of a competition watchdog?

Mining reforms on hold as ministries differ
A sweeping set of reforms proposed for the country’s mining sector have led to a faceoff between the Union law and mines ministries.

Six years and one of the most crucial reform is stalled, infact the past six years have not seen one major reform that will improve the efficiency of the economy.

Medical education to remain with health ministry
The Centre has said medical education would remain separate from general education and would not come under the aegis of the National Council for Higher Education and Research (NCHER).

Not a bad decision as MCI has proven to be an incompetent and corrupt body, it is better that regulation remains with the relevant ministry.

Shipping monopoly policy draft finalized
The policy draft — prepared by the shipping ministry — has been forwarded to the law ministry for approval. The draft had been prepared in consultation with private players.

Cabinet increases natural gas prices
The Union Cabinet has effected an increase of over 113% in the prices of natural gas produced by public sector companies Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL). 

Panel calls for inclusion of non-major ports under tariff regulation
The BK Chaturvedi-led Committee is likely to propose that non-major ports be brought under a tariff regulatory framework to create a level playing field across all ports.

Ambani brothers break the ice
It took a gentle nudge from the Supreme Court to signal an end to the most publicised corporate war in India.

Unique ID project gets Cabinet nod for data collection norms
The government has given an in-principle approval for adopting a standardised approach to collect demographic and biometric attributes of residents for its ambitious unique identification (UID) project.

UPA moves on higher education reforms; tables Bills in Parliament
The Bills, seen as attempts to fast-track education reforms, are to check malpractices by educational institutions, to set up educational tribunals to resolve disputes in campuses and to form a national education agency.

Environment clearance panels set for rejig
In a decision that will help streamline clearance procedures, the environment Ministry decided to reconstitute the Expert Appraisal Committees (EACs), while stopping the practice of giving “in-principle” clearance to projects.

Government to form inter-min panel for rationalising coal sources
The government will soon set up an inter-ministerial task force to rationalise coal sourcing so as to help key consumers in the power, steel and cement sectors optimise transportation costs.

Apex court ruling poses HR issue for tribunals
The Supreme Court of India has yet again brought to the fore a debate over justice delivery through tribunals. The Court has expressed a range of views that could have a far-reaching impact on justice delivery.

CAG moots highway toll collection regulator
The Comptroller and Auditor General (CAG) has recommended an independent agency to monitor toll collection on national highways (NHs) on alleged leakages.

N-liability Bill tabled in Parliament
Recently, the controversial Civil Liability for Nuclear Damage Bill, 2010, was introduced in the Lok Sabha. The Bill is a key requirement for operationalisation of the Indo-US nuclear deal. 

Delhi to have its realty regulatory authority this year
The much-awaited real estate regulatory authority, which intends to shield small-time buyers from fly-by-night developers, will be formulated this year.