PSEs need more autonomy to face competition: Manmohan Singh

NEW DELHI: Prime Minister Manmohan Singh has pitched for greater functional autonomy for public sector enterprises saying they have been for very long shielded from competition and are now needed to be free from bureaucratic control.

"The government may own a public sector firm and exercise the normal rights of ownership. But this does not mean that it should shelter the firm from competition as well," said Singh at the inauguration of the 3rd BRICS International Competition Conference of India (ICCI) in New Delhi on Thursday. Singh also said it is important for the governments not to give undue benefits to their own businesses over private sector, which can lead to possible distortions. Therefore, the government needs to adopt competition neutral policies.

Addressing the BRICS competition authority officials, Singh emphasised the need for a concerted effort for competition regulators across the world to enforce competition law for successful implementation of an antitrust regime. "These are real world challenges that have to be recognised for the successful implementation of an antitrust regime," said Singh.

The two-day conference, organised by the fair trade regulator Competition Commission of India on behalf of the BRICS, would deliberate various issues and challenges including enforcement of competition laws vis-a-vis state-owned enterprises, public procurement and creation of competition culture.

Singh also highlighted the need for greater cooperation among competition authorities across the world in the wake of the growing number of cross-border mergers and acquisitions. "The increasing integration of the world economy in the form of multi-jurisdictional mergers and cross-border anti-competitive conduct makes international cooperation in this arena vitally important for all modern competition authorities," Singh said.

Emphasising the need for a strong competition policy, corporate affairs minister Sachin Pilot added that fair competitive regimes only ensure efficient market mechanisms.

"Competition encourages affordable products and services, serves as an invisible check on quality and lead to innovation. More competitive markets are also relatively resilient to adverse economic conditions," said Pilot.