M A I N   N E W S

11-member panel to review statute
Tribune News Service

NEW DELHI, Feb 1 — The Union Cabinet today decided to constitute a national commission to review the working of the Constitution and mandated it to make recommendations within the framework of parliamentary democracy.

The commission, which would be constituted through a government resolution, would consist of a Chairperson, one Member Secretary and not more than nine other members. The term of the commission would be one year, Union Minister for Parliamentary Affairs, Pramod Mahajan announced here after the Cabinet meeting.

Heeding to President K.R. Narayanan’s advice to the government not to change the existing parliamentary system and keeping with Prime Minister Atal Behari Vajpayee’s assurance that the government would not to tinker with the core structure of the Constitution, the Cabinet worded the terms and conditions of the commission in a manner that leaves no scope for confusion.

The terms of reference of the commission is as following: To examine in the light of the experience of past 50 years as to how best the Constitution can respond to the changing needs of efficient, smooth, effective system of governance and socio economic development of modern India within the framework of parliamentary democracy and to recommend changes if any that are required in the provision of the Constitution without interfering with its basic structure or feature.

Mr Mahajan said the government would take a decision on the appointment of the Chairperson in a couple of days.

When asked if the government was considering the appointment of former Chief Justice of India M.N. Venkatachaliah as the Chairperson of the commission, Mr Mahajan said he could not say anything at this juncture. He, however, confirmed that Union Law Minister Ram Jethmalani had met the former Chief Justice yesterday.

On the selection of the nine members, Mr Mahajan said they would be eminent people from all walks of life associated with the Constitution. He said the government was not considering any proportional representation for representatives of political parties.

The minister was hopeful that the government resolution on the constitution of the commission would be out within a week.

The Cabinet also decided to free foreign direct investment (FDI) in all areas except a small negative list as part of measures to attract the targeted $ 10 billion overseas investment annually.

Announcing the decision Mr Mahajan said the negative list, including industries requiring industrial licence, would be further pruned after a review exercise by a high-powered group of ministers.

Barring the negative list, all FDI would be through automatic route without going through Foreign Investment Promotion Board, he said, adding the move was aimed at making FDI regime more transparent and attractive.

The areas which still required government clearances for FDI included SSIs where foreign equity participation was already 24 per cent, where the investor has an existing joint venture (JV) in the country and proposal relating to acquisition of shares of domestic companies.

Proposals falling outside the existing FDI policy and investment ceilings would require clearances as part of the negative list which also bars automatic investment in items requiring industrial licence under the Industries Development and Regulation Act.He said a group of ministers has already been constituted to review the negative list and caps on foreign investment.

This negative list would be changed after the group, which consists of the Ministers of Finance, External Affairs, Commerce, Telecom, Chemical and Fertilisers and SSI, submits its report.

Under the existing policy, licencing is mandatory in sectors like alcohol, cigarettes, equipment of electronics, aerospace and defence, industrial explosives, hazardous chemicals and pharamaceuticals.The Cabinet accorded approval for setting up a new airport of international standards at Devanhalli, near Bangalore, with private participation and for closure of the existing airport in that city for civilian operations.

The existing airport, which belongs to Hindustan Aeronautical Limited (HAL), is basically meant for test flying activities of HAL and has of late come under severe strain due to increasing passenger and cargo traffic.The new airport would be set up jointly by a joint venture company (JVC) of the Airport Authority of India (AAI), the Karnataka State Industrial Investment and Development Corporation (KSIIDC) and a strategic partner.