Slow but sure: Govt's cutting size, begins with devp commissioner

NEW DELHI: Downsizing of the government, one of the key components as well as a crucial facilitator of economic reforms, is taking place, albeit at a slow pace. Acting on the recommendation of the Expenditure Reforms Committee (ERC) for laying off the redundant bureaucracy, the development commissioner (Iron & Steel), has been wound up by the finance ministry through an order issued on May 23, according to government sources. The dismantling of the DC (I&S) has rendered about 280 employees of the DC (I&S) surplus with immediate effect. Confirming the development, steel secretary, JS Gill said the size of the Joint Plant Committee (JPC), the authorised statistics provider to the steel industry, will also be cut by half soon. JPC, which includes an economic research unit (ERU), has about 170 employees at present. JPC is currently headed by a joint secretary in the ministry of steel, despite it being a non-government body, sponsored by primary steel makers through a special corpus. All 280 employees of DC (I&S), who have been rendered surplus, will be re-deployed after training, Mr Gill said. They will continue to receive current salaries during the training. The steel ministry will take over the DC's functions which are legally mandated, such as government's claims on overcharging, and also matters mired in litigation. The DC, headquartered in Kolkata, consists of three deputy development commissioners, besides regional directors' offices in Delhi, Chennai and Mumbai. For the last few years, the government has been doling out roughly Rs 5 crore per annum for running the DC's office. Of late, major steel producers have said that the office should be wound up. Its functions like demand forecasting has lost relevance as in a free market scenario, each player is supposed to have internal mechanisms for such purposes in strategic interest. Secondary producers are, however, opposed to winding up of the DC's office, as they feel that DC could have been an adviser to the government on major policy issues. Development Commissioner — formerly Iron and Steel Controller — was the all powerful regulator of steel industry until the Iron & Steel Control Order (ISCO) was repealed in '91. Under the ISCO, the controller used to regulate the production, pricing and distribution of steel in the country, in pursuance of the Essential Commodities Act. Recently, the Indian Steel Alliance, consisting of primary steel makers, said that the JPC's function of a statistics provider to the industry should be divested to the Confederation of Indian Industry (CII). Currently, major producers spend roughly Rs 10 crore per annum to meet the JPC's expenses, out of interest on a roughly Rs 100 crore corpus that had been created by charging cess on steel production.

Slow but sure: Govt's cutting size, begins with devp commissioner

Downsizing of the government, one of the key components as well as a crucial facilitator of economic reforms, is taking place, albeit at a slow pace.

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