CII recommends regulatory framework on infra

New Delhi, Oct 22: Emphasising the need for a renewed focus on infrastructure regulation, the Confederation of Indian Industries (CII) has suggested the establishment of an overarching regulatory framework for the sector.

In this regard, CII and Public-Private Infrastructure Advisory Facility (PPIAF), have come up with a study, Recommended Framework to Improve Regulatory Effectiveness in Infrastructure Sectors, which recommends the principles that would enhance and ensure the effectiveness of regulatory mechanism for infrastructure.

According to it, a renewed focus on infrastructure regulation would both increase private sector investments in Indian infrastructure and also enable more efficient management of the infrastructure assets.

The study was prepared in general agreement with the Planning Commission's own white paper on Infrastructure Regulation in India.

''We have recommended that the principles for regulatory effectiveness be enshrined in a National-level 'Infrastructure Regulatory Framework Act','' CII National Council for Infrastructure Chairman Vinayak Chatterjee said.

The recommendations draw upon an analysis of the major shortcomings in the regulation of telecommunications and power sectors, particularly in the areas of regulatory independence, authority, professionalism and accountability.

''The CII report does not espouse the perspective that all infrastructure sectors must have an economic regulator irrespective of the sectors' market maturity or needs,'' Mr Chatterjee added.

The study recommends the empowerment of the sector regulator for performing entry regulation and price and performance regulation as well as fiancial autonomy by providing budgetary allocations.

It calls for the need to clearly spell out the manner in which the issues of competition shall be addressed and dealt with clearly.

For the adjudicaion of appeals arising from various sector regulators in a time-bound manner, it also asks for creation of an expert National Infrastructure Appellate Tribunal.

UNI