Go swami Committee Recommendations.
During the phase of liberalization initiated in 1991, it was felt essential to take some preventive steps to check growing industrial sickness in the country. In April 1993, a committee on industrial sickness and corporate restructuring was constituted and Dr. Omkar Goswami of Indian Statistical Institute was appointed chairman of this committee. The committee submitted its report to the Ministry of Finance on July 13,1993.
The committee suggested a new definition of industrial sickness and also gave recommendations to modify SICA and the role of BIFR. The committee made it clear that in previous years BIFR adopted the policy of rehabilitation of sick units instead of closing them. The committee objected this approach with the view that any financial assistance granted under rehabilitation policy is indirectly a reward to inefficient and irresponsible entrepreneurs. The Committee also made it clear that this rehabilitation certainly provides a relief to the laborers in short run but this relief is not long lasting. A stitch in time saves nine’ should be the motto for closing down sick units so that laborers may seek alternative employment opportunities at their earliest.
Closing down of sick units will put a check on wastage of public money to accelerate the process of closing down the sick units. The committee recommended to establish Fast Track Winding-up Tribunals in five metropolitan cities in the country, i.e., Mumbai, Kolkata, Chennai, Delhi and Bangalore.
Commission on Labor Standards: The Government has constituted a high level commission for investigating the issues related to the linkages in foreign trade and labor standards. Dr. Subramaniam Swami was appointed as its Chairman and was given the status of a cabinet minister. Mr. S.L. Pasi and A.V. Ganeshan are other two members of the commission. This commission was given the responsibility to investigate the follow up of the Government in international conventions of ILO. This commission was also asked to forward appropriate suggestions.
The interim report of the commission was submitted to the Prime Minister in May 1995 and its final report was submitted in February 1996. The commission recommended to adopt a liberal view regarding social matters of international trade. It is to be noted here that till now India strongly opposed any linkage of international trade with social standards. The commission completed its term in February 1996.