CAG report on 2G had a detrimental effect on growth: Manish Tewari

NEW DELHI: The CAG report on 2G spectrum had a "detrimental effect" on the India growth story and a "corrosive" discourse is creating a mood of paranoia, conditions in which an economy can only grow at rates of 4.4 to 5.5 per cent, I&B minister Manish Tewari said today.

"In the last two or three years, India has been a witness to a most-corrosive discourse which a democracy or any nation could possibly feel," he said, adding that he did not hold the media responsible for this corrosiveness.

"Some of the actions which were taken by some of our institutions or especially people who headed those institutions, is a classical reminder that when individuals decide to go rogue, institutions suffer. That possibly has had the most detrimental effect on the India growth story and I refer to the CAG's report with regard to the 2G spectrum," Tewari said.

He said that in November 2010, the CAG in it report stated that there had been a presumptive loss report of Rs 1.76 lakh crore in allocation of 2G spectrum.

"Three years down the line, after two auctions what are the numbers that we are left with? Rs 722 crore upfront which has flown into the kitty of the government and a commitment of roughly about Rs 8,650 crore which is supposed to come in over the next ten years," he said.

The Minister said that while there have been difficulties with project approvals, environmental clearances, other factors but the factor that stood on India's path to greatness was the corrosiveness of discourse.

"If you create an environment of paranoia, if you create an environment of suspicion, if you perpetuate an environment where you say corporate is a bad word, making money is evil, then unfortunately you are left with an economy which is destined to grow at 4.4 per cent, 5 per cent or five- and-a-half per cent," he said.
Addressing an event organised by the All India Management Association ( AIMA), Tewari said that when "blatant aberrations are being put out in public space" which are growing to impact the growth story, it is very important for stake holders in the economic process to really stand up and be counted.

He said when economic numbers come down, it is not only the industry that suffers but also the social development programmes and millions who are coming out of schools and colleges and are waiting to enter the employment stream.

The Minister said that between 2004 and 2013, the Indian economy had on an average grown at 8.1 per cent which at a time when there was the global economic meltdown, is an achievement.

In 2004 when the UPA government was formed, it reflected whether India's economic model included everyone, he said, adding while Indian companies were doing well and buying assets abroad, many people at home were also feeling excluded.

Thereafter, the work to establish "the most ambitious rights-based entitlement structure" was started and the Right to Information, rural employment guarantee programme, Right to Free and Compulsory Education and other legislations like food security emerged, he said.