Order to quiz ex-PM Manmohan Singh could spark policy paralysis again

NEW DELHI: A special court's order on the coal block allocation case has raised fears of a fresh round of policy paralysis as scared bureaucrats may drag their feet on decisions involving large contracts and projects.

Earlier this week a special court hearing the coal block case asked the CBI to record the statement of former Prime Minister Manmohan Singh who was then holding the coal ministry portfolio. Former Coal secretary PC Parakh was also booked by the CBI in the case in October last year sparking a strong response from the former civil servant who is known for his spotless reputation.

Bureaucrats in key ministries, particularly in infrastructure and resources, fear that the decisions that they may take now could be questioned years after their retirement from service. The immediate reaction from civil servants over any major financial decision is to ensure that it is taken by their successor, which is expected to lead to delays in key projects.

Sources in several ministries said there was a concern among bureaucrats over the latest developments and if the situation persists decision making could slow.

Prime Minister Narendra Modi has vowed to streamline decision making and revive the bureaucracy. He has kicked off interactions with his secretaries and key officials and has asked them to approach him directly on any issue of importance.

During the last two years of the UPA regime, decision-making stalled hurting the economy and scared investors to the sidelines. Growth slipped below 5% for two consecutive years.

Modi promised to reverse the situation and since assuming power has taken several steps to boost the bureaucracy's confidence.

The major worry is the manner in which bureaucrats who had long retired have been hauled from their retirement for questioning on decisions which they had taken at a particular time.

The latest scare comes at a time when the government is moving to boost investment and growth. It has taken measures to fast track decision making and clear stalled projects. Any slowdown in the process is likely to hurt the recovery process and dent investor confidence. Getting projects off the ground and streamlining the approval process is work in progress and any dent in this would have an adverse impact.

Finance Minister Arun Jaitley had criticised the CBI for raking up old cases which he had said could undermine the confidence of civil servants and hurt the investment scenario.