New Delhi: Faced with the challenge to raise
an estimated USD 1 trillion for developing the country's
infrastructure, government on Thursday set up a high-level committee
to evolve a strategy in this regard.
The committee headed by former RBI Deputy Governor
Rakesh Mohan would submit its report in 18 months, an official
statement said.
It would suggest steps for improving capital markets for
garnering long term savings and facilitating flow of foreign
investment.
The committee would assess the investments required to be
made by the central and state government, public sector
undertakings (PSUs) and the private sector in the ten major
physical infrastructure sector projects.
India is aiming to double its investment in
infrastructure to about USD one trillion during the 12th Plan
(2012-17) from an estimated USD 500 million in the current
Plan.
In rupee terms the investment target for infrastructure
sector projects during the 11th Five Year Plan was pegged at
Rs 20,50,000 crore
It would be about Rs 41,00,000 crore (at constant 2006-07
prices) in the next Plan.
It is expected that half of the investment target for
infrastructure would come from the private sector and the
balance from public sector undertakings.
The panel will also identify the regulatory or legal
impediments constraining private investment in infrastructure,
and make specific recommendations to facilitate their removal.
The high-level panel for infrastructure funding will
include Secretary, Department of Economic Affairs, Secretary,
Department of Financial Services, Chairman, Insurance
Regulatory and Development Authority and Chairperson, Pension
Fund Regulatory and Development Authority.
Besides, the panel will include RBI Deputy Governor
and chief executives of State Bank of India, Life Insurance
Corporation, Power Finance Corporation, ICICI Bank and
Infrastructure Development Finance Company Limited.
Other members would include Uday Kotak of Kotak Mahindra
Bank, G.M. Rao, Chairman, GMR Group, Sanjay Reddy, Managing
Director, GVK Group and Country Head of Goldman Sachs, Madhav
Dhar.
Chairman, Railway Board, Secretary, Chief Economic
Advisor in the Ministry of Finance and secretaries in the
ministries of Power, Road Transport and Highways, Urban
Development Secretary, Petroleum and Natural Gas,
Telecommunications, Water Resources would be special invitees
to the Committee.
The convener of the panel would be Gajendra Haldea,
Adviser to Deputy Chairman, Planning Commission.
PTI
First Published: Thursday, November 18, 2010, 18:59