24x7 Toll Free # 1800 3000 1120 (India) |


Its easy to set up a Company in India but difficult to Wind up

Coutersy:- Economic Times(Same extract)
In the run-up to the last ministerial reshuffle, many expected the younger set of MPs close to Rahul Gandhi to get posts in the government. Sachin Pilot was one of the few to actually make it. The 35-year-old son of the late Rajesh Pilot, a veteran Congressman and former Union home minister, is the new minister of state for corporate affairs. He spoke to ET on the shutting down of companies, competition regulation and Aadhaar. Excerpts:

Sachin Pilot, Minister for MCA.

What are your immediate priorities in the Ministry of Corporate Affairs?

Private sector has become the focus of job creation. I would like the ministry to play the role of a catalyst, and create ecosystems where job creation takes place. The aim should be to try and make India an easier place to do business in.

There is a new Companies Bill on the anvil which I hope to pilot through Parliament this session. Also, we are in the process of thinking through a new competition policy. The report of the committee has come to the ministry and we are going through it. We want a landscape that is even-handed. My opinion is we should not overregulate.

How do you see the long-standing issue of CCI versus sectoral regulators and issues of turf between them?

It is important to consult with each other. We are working towards evolving a framework where such consultation becomes institutionalised. I am of the view that there has to be consultation at the early stages. We are figuring out a way to do that.

What are the other initiatives to ease the process of doing business?

Setting up a company is difficult...My worry is different. Setting up a company is easy. Winding up a company is the tough part. This is what I have been looking at recently. Closing a company in India has to go through courts, official liquidators, so on and so forth. It is very tricky. These are issues we are trying to look at and work with other ministries on. This is very much a part of the ambit of easing the process of doing business.

For instance, I understand there is one company that is in the process of winding up and whose case has been pending in the Orissa High Court since 1947. If something has not changed in the last 65 years, chances are bleak that it will change in the next 50. We have to take a practical and objective view of these issues.

Companies are worried that Companies Bill has made CSR mandatory. How do you respond to such concerns?

We looked at international examples, such as in France and Indonesia, where such a concept has been successful. This is a new concept and we are still looking at how to make it work. The CSR provision only applies to larger companies that are making enough profits, not companies in gestation periods or that are loss-making.

Giving back to society through CSR helps you do your brand-building and also show to the people that corporate sector is there to help us move forward. If you can't spend 2% of your profits on CSR, then you have to give a statement in your report as to why you couldn't do it. One thing I did say to my department was that the government should keep as far from it as possible. Let it be a private initiative.