To improve regulatory enforcement and facilitate informed policy making, the Corporate Affairs Ministry will soon start data mining and analytics works by tapping into the vast information on companies it has at its disposal.
The ministry’s proposal, which has been in the works for quite some time, would be implemented over the next two years.
The vast repository of data available in the MCA 21 portal — the electronic platform for corporates registered under the Companies Act to submit their statutory filings — would be utilised by the Ministry for data mining purpose.
More than 14.5 lakh entities were registered under the Act till February this year. Of these, over 10 lakh firms were active companies.
In a fillip to the ministry’s efforts for better- utilisation of available information, the proposed Corporate Data Management (CDM) scheme has been classified as a central sector plan project in the Union Budget 2015-16.
For CDM scheme, envisaged to be implemented during the 2015-17 period, the Budget has allocated Rs 5 crore.
The ministry plans to establish an "in-house capability for data mining and analytics facility to effectively utilise the MCA21 data repository" as part of the scheme.
Such a facility would also promote analytical research and studies to inform policy making and facilitating enlightened regulation for corporate sector growth, according to the ministry’s latest monthly newsletter.
"In addition to providing authentic and clean data to all stakeholders in a more accessible manner, the facility aims at making available the information in an organised and structured manner to the Ministry and to other policy and decision making agencies within and outside the government," the Budget had said.
To begin with, the corporate data would be broadly divided on the basis of financial and non-financial aspects.
Meanwhile, the Ministry’s latest newsletter said MCA 21 databased helped in extensive revision of national accounts statistics.
"The comprehensive coverage of corporate sector with use of MCA 21 database helped the Central Statistical Organisation (CSO) revise the base year for calculating National Income Statistics (NAS) from 2004-05 to 2011-12," it noted.
As per the new series, Indian economy grew 6.6 per cent in 6.6 per cent during 2013-14 period.
With some improvements in the methodology and changes in the reporting format, the new series with base year 2011-12 was released by CSO in January.