New Delhi: India Inc on Friday pitched for a
regulatory mechanism to facilitate development of bond and
debt market and help the industry raise long-term funds
for infrastructure sector.
"If the government takes earlier initiatives to allow
development of these market with proper regulation, a large
number of corporates can float corporate bonds and raise debts
to participate in infrastructure funding," Assocham said.
It said that the country would need close to 320-350
billion dollars in infrastructure investments by 2012, in
which share of private investment could be within the range of
30 per cent.
The corporate bond and debt market needs to be developed
to allow companies raise funds at competitive cost for
infrastructure projects, it said.
"Risk associated with raising of such bonds can be
adequately taken care of with proper regulatory mechanism in
place. This will ensure larger subscription to such debt
raising facilities for corporates," it added.
The country's corporate bond and debt market are not as
developed as the stock markets are.
It also asked the Finance Ministry to allow private
equity firms to access provident and pension funds to part
finance projects in infrastructure sector.
Bureau Report
First Published: Friday, November 13, 2009, 21:10