New Delhi, Dec 16: Election funding or any other form of political donations by corporates is not authorised by law, the new president of PHD Chamber of Commerce and Industry (PHDCCI), O P Vaish, said on Tuesday.

``Companies would further run into problems if they fund parties in a transparent manner. They will risk their business'', Vaish, who is also a senior advocate of the Supreme court and a specialist in corporate and tax laws, told PTI here. Even if funding was allowed, the corporates may not participate in it enthusiastically as it may boomerang if they made a wrong decision in supporting a losing party, he said.

``May be this will become possible once we mature as a democratic state'', Vaish said when asked about the Confederation of Indian Industry's (CII) idea asking all its members to contribute to political parties only through cheque.

The election Commission has already talked about state funding of elections and it is a point worth considering as precedents have been set by some countries, he said. However, Vaish conceded that it might turn out to be a complicated process in a multi-party democracy like India. Vaish hoped that the coming elections would throw up a stable government. ``the position may improve. The people know what to do and what they want''. ``On the face of it, the BJP has an edge over other parties and political combinations. But the up episode certainly has not done any credit to them,'' he said and clarified that the views were personal as chambers of commerce cannot afford to align itself with any party. The PHDCCI president's views on BJP gain significance as a similar view was expressed by leading industrialist and CII member, Rahul Bajaj, recently.

Bajaj said he would cast his vote in favour of a stable government and hinted that BJP would be the obvious choice.

Vaish said the stage was set for large-scale investments, particularly in critical areas like infrastructure, but the overseas investors are waiting for the political scene to crystallise.

``I was in Japan recently and the investors there are upbeat about India. They will come here if they are assured even a seven to eight per cent return on their investments'', he said.

Most of the developed countries have reached saturation point for investments in their own country. In Japan, the interest rates are ruling less than one per cent and surplus funds are looking for safe avenues, Vaish said.

He agreed that indigenous companies did not have the financial strength to compete on equal terms with multinational corporations.

``That is the fact of life and we have to live with it'', Vaish said when pointed out the fate of leading Indian groups in joint ventures with Dupont, Honda and Daewoo.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.