The Hindu : Act fast on huge forex reserves: Chidambaram

Online edition of India's National Newspaper
Sunday, Dec 28, 2003

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Act fast on huge forex reserves: Chidambaram

By Our Special Correspondent

Coimbatore Dec. 27. The Congress Jananayaka Peravai leader and former Union Finance Minister, P. Chidambaram, today urged the Central Government to act immediately on the huge foreign exchange reserves. "Otherwise it would become a wasted opportunity to carry out further economic reforms", he told presspersons here.

Mr. Chidambaram said he was certain that the current forex reserves of $100 billion would rise to $120 billion by March 2004. There were suggestions on how such enormous reserves could be constructively used. They included greater capital account convertibility, more bilateral investment policies, reduction of tariffs, repayment of debts, brand equity promotion, a line of credit to overseas importers and credit to developing countries.

"It may not be possible to act on all these suggestions. But what is worrying is that why no decision has been taken so far," he said.

Adverting to the sharp criticism by the Chief Election Commissioner, J.M. Lyngdoh, of politicians, Mr. Chidambaram said, "though this is exaggerated, it cannot be ruled out as if it is total untruth. This would be the view of the majority of the people as well," he added.

The Prevention of Terrorism Act (POTA) should be scrapped in toto as it was "very bad". While the Central Government was "obdurate" about its implementation, the State Government [in Tamil Nadu] "misused it". And, the Centre was tolerating its "misuse". It was so draconian that even journalists and lawyers could be detained if they refused to part with information. The recent amendments to the Act were "not even cosmetic". Once the Supreme Court had upheld all the provisions of the Act, "there is no meaning for the Review Committees at all," Mr. Chidambaram said.

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