Stating that voice over internet protocol (VoIP) will help in rationalising tariffs, Ahluwalia felt it would boost the growth of the information technology-based industry.

So far, VOIP has been banned by the government in both the internet service provider (ISP) policy and the telecom policy, 1999.

"The policy must acknowledge the latest technology changes," he observed at a seminar on e-commerce organised by the Confederation of Indian Industry (CII), GIIC and Infrastructure Leasing & Financial Services in the Capital on Tuesday.

"Policies should be framed with the objective of maximising competition and bringing in the best of technology and design to take advantage of the reduction in costs brought about by advances in technology," he said. In the context of VOIP, he cited the low cost of telephone calls made byusing the internet.

Speaking about legal policies to enable e-commerce, he said due to rapid changes in technology, any policy would be out of place every three years. Thus, the government should be very receptive to suggestions from the industry while the industry should be pro-active in suggesting the changes required from time to time.

Ahuwalia suggested that the government and its agencies make a beginning in electronic transactions. For instance, issuance of licences, filing of income-tax returns and certain billings could be permitted electronically, he pointed out.

Advising the industry to "get on with e-commerce" instead of waiting for a legal framework to be in place, he said: "The industry should not wait to hop on to internet-based business till all the problems relating to contracts, payments, security and encryption are resolved. It is a complicated affair. The first draft of cyber laws need not be the final," said Ahluwalia.

Acknowledging that the absence of cyber laws is not the onlyhindrance to e-commerce, Ahluwalia said that more than the legal framework, it is imperative to create awareness about e-commerce and establish adequate telecom infrastructure.

E-commerce would make possible a level of competition that would not be possible otherwise. In this respect, every agency should swiftly benchmark with worldwide practices in e-commerce.

At the same time, businesses wanting to increase their interface with the world would be forced to adopt e-commerce, added Ahluwalia.

Earlier, Central Vigilance Commissioner N Vittal outlined a four-point agenda to bring India on par with the world in e-commerce. Saying that computers should be made pervasive, Vittal called upon the government to implement the second and third reports of the IT task force so that PC density goes up.

The ISP policy and NTP 1999 must be implemented immediately as this would improve connectivity and reduce access costs, he added.

Vittal also favoured integration of the cyber laws bill (Electronic Commerce Act1998), the white paper on e-commerce and the IT bill to develop an appropriate legal framework. This should be passed as an ordinance.

More importantly, he called upon the government not to tax e-transactions. These steps could help India develop into a powerhouse like Singapore or Hong Kong of e-commerce, according to Vittal.

CII president Rahul Bajaj said e-commerce is one of the requirements for Indian industry becoming competitive. In order for business to be able to make full use of e-commerce, there is a need for infrastructure, training and education and a suitable commercial and legal framework, not controlling in nature, but regulatory, he added.