Sunday, June 4 2006 11:48 Hrs (IST) - World Time -

New Delhi: Indian economy needs a set of structural reforms, not just to improve the performance of the economy and in particular the industry, but also to create inclusive growth, said industry body CII.

The revised estimates of GDP and other growth figures released by the CSO on May 31 are a clear pointer to this fact as mining and power sector were a big drag on industrial growth, said CII president R Seshasayee.

Taking serious note of this slack, he shared the CII suggestions for these two sectors, where structural reforms are required. It has suggested deregulation of power and mining sector.

It is important to have a comprehensive vision for the entire energy sector, while focussing on energy efficiency, the CII president said, adding this will be important since India is taking the issue of energy security seriously.

CII has suggested creation of an Energy Commission for developing and implementing an integrated energy policy, creation of a competitive and vibrant wholesale power market and increasing the role and guidance from the centre through stronger incentives for states that expedite reform; and increase CERCs mandate over SERC.

Similarly, for mining sector it has suggested policy change like private and merchant participation in the mining sector and removal of hurdles in obtaining approvals and establish an independent regulator.