Monday, December 26, 2011

set-regulators-free-to-make-them-independent-to-fight-corruption

First: The Draft National Competition Policy, 2011, that inter alia seeks separation of the policymaking, regulatory and operating functions. For instance, the department of telecom (DoT) decides telecom policy, it oversees the Telecom Regulatory Authority of India, and also owns BSNL and MTNL. How can one expect the DoT to be impartial when disputes arise between the regulator and an operator.

The Trai Act, 1997, would not have been replaced by the Trai (Amendment) Act, 2000, if a spat between BSNL and Trai had not taken place. The DoT was unhappy that Trai was not heeding its advice, but nothing could be done as the law did not allow for sacking of the regulator easily. So, that government did a wicked thing: it scrapped the law and adopted a new one that now provided for an easier removal procedure.

Both the Trai Acts had empowered the government to issue policy directives, an anachronistic device, but its use was not made when the Trai was implementing the law as defined under the 1997 Act. 


 

http://economictimes.indiatimes.com/opinion/comments-analysis/set-regulators-free-to-make-them-independent-to-fight-corruption

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