Prime Minister Dr Manmohan Singh has called for freeing state-owned enterprises from bureaucratic control and giving them greater functional autonomy to enable them to face competition. Inaugurating the 3rd BRICS International Competition Conference in New Delhi today, Dr Singh said that the government should not use its legislative and fiscal powers to give undue advantage to its own businesses over the private sector. The Prime Minister said, shielding public sector enterprises from competition may lead to several distortions which are against norms of fair competition. Dr Singh favoured competition-neutral policies, saying competitive procurement markets would help to save resources and release funds for development.

He said, elimination of unnecessary restrictions and better tender design can enhance possibilities for effective competition.

The Prime Minister stressed on an architecture of sound competition policy to meet the challenges of growth, development and poverty reduction faced by Brazil, Russia, India, China and South Africa, BRICS, countries. He said there is a need for building credible institutions for sustained and equitable growth. Dr Singh said fair and effective competition has to be created and enforced through public policy, otherwise private private barriers may substitute government barriers to trade and prevent improvements in social welfare.

Our Correspondent reports, the two-day conference will deliberate on various issues and challenges in competition enforcement in BRICS countries. It would focus on issues and challenges in setting up an effective agency, enforcement related to state owned enterprises, public procurement and creation of competition culture.