DAWN OF A NEW ERA MINIMUM GOVERNMENT, MAXIMUM GOVERNANCE

Let me begin by congratulating Mr Modi on having assumed the office of the Prime Minister of our country. It took an astounding three decades for the Nation to realise what a strong Government and leadership at the Centre really means. After Rajiv Gandhi’s fabulous win in 1984, following the assassination of Indira Gandhi, this is the first time that a single party has come to power with such a thundering majority. Hope has transformed into reality with Shri Narendra Damodardas Modi finally being sworn in as the 15th Prime Minister of India.

The path to coronation wasn’t really an easy one. But the sharp planning and sheer hard work put in by the Prime Minister himself along with the rank and file of the Bharatiya Janata Party was just incredible. It has yielded the result that not just the BJP wanted, but for which a Nation waited with baited breath. The pall of gloom which had descended on the Nation in the erstwhile regime of the UPA 2 has now changed into a supercharged environment of confidence.

This confidence comes from the promise of good governance and development from none other than the Prime Minister himself. In fact, close followers of the developments over the past fortnight would surely agree with me that the thumping victory of the NDA and the superb performance of the BJP has had the Prime Minister’s position and office suddenly come alive after a long gap of almost half a decade.

What lies ahead for the honourable Prime Minister is an even bigger challenge. But the first signs of being committed to fulfilling what has been promised are apparently becoming visible from day one. In a deviation from what his predecessors have done so far, Mr Modi has crafted a very interesting cabinet for himself. The process of consolidation has begun right from the floors of the Parliament. The principle of ‘Minimum Government and Maximum Governance’ surely sounds to be a good way of ensuring a better coordinated working of the government and its various ministries.

The focus on convergence of Ministries is a good way of ensuring quick decision making and a minimum number of control points.

The downsized cabinet will ultimately be helpful in ensuring smart governance. Mr Modi, we learn, is eventually aiming at smart governance where the top layers of Government will be downsized and an expansion at the grass root level will be ensured.

After reeling under a long spell of policy paralysis an initiative like this will certainly go a long way in bringing down the time needed in taking decisions by not pushing proposals through multiple layers. The efficacy of it will of course be known as we get on with normal business in a few days time. Keeping in mind the reforms that are needed to put the Indian economy back on the growth path, such a consolidation of decision making points will certainly go a long way in ensuring what is sought to be achieved.

The best example of this initiative is the Ministry of Finance which has been clubbed with the Ministry of Corporate Affairs. Another smart move on the same lines is to bring important verticals like Road Transport and Highways and Shipping under one head. The same goes for Heavy Industries and Public Enterprises. It sounds strange but is absolutely true that it took those in power so many years to understand and implement something as simple as this which can ensure a better control over things. Now you know why the world is so gung ho about the leadership qualities that our new Prime Minister possesses.

Apart from the strategic move of consolidation of ministries what also comes very close to being a first in its class and a game changer of sorts is to focus on a fairly young cabinet. The oldest member of Modi’s cabinet is 74 years of age and the youngest is 38. That sums up the energy levels that the new cabinet will exude going forward. The only thing that now remains to be seen is the actual performance of the people that have been chosen. With parliamentary veterans like Rajnath Singh, Arun Jaitley, Sushma Swaraj, Nitin Gadkari, Venkaiah Naidu, Ram Vilas Paswan, Gopinath Munde Ravi Shankar Prasad, Uma Bharti, Dr Harsh Vardhan and Prakash Javadekar to name a few making it to the list, there is little doubt that Mr Modi is all set to change the face of governance in India. The optimism about the days to come is visible all over. The financial markets are the best barometer to measure the level of this optimism. Talks about the Sensex zooming past the 25000 point mark and coming close to achieving another 3000 point rise by the year end to touch 28000 are gaining credence as days pass by. Our cover story this issue takes you through what really calls for such optimism.

As a part of our regular recommendations, in this issue we have recommended CESC as our choice scrip. With a first full year of expanded capacity in the power segment and better performance by its retail business which is on the brink of achieving breakeven in FY15 the company is all set to witness better days going forward. With three important factors like divestment potential, value unlocking in land parcels and valuations cushions Rashtriya Chemicals & Fertilisers seems to be a strong contender to secure a spot in the Low Priced Scrip segment this time.

The road ahead is surely challenging. But the man in charge looks possessed to perform and prove to the world that India means business. The first signs of this came in when the entire SAARC leadership attended the swearing-in of Mr Modi as the Prime Minister of India. A new chapter has begun, be a part of the success story. There was no better time to invest in India than today is. On our part, we at Dalal Street Investment Journal have always been there through the thick and thin to guide investors on what best will get their portfolios ready for super returns. I wish all our readers a bright and prosperous future under the aegis of our new Prime Minister Shri Narendra Damodardas Modi. Do send in your comments to us on comment@dsij.in.