Infrastructure conference will bring investors; improve policy

New Delhi, Oct 4 (UNI) Planning Commission Deputy Chairman Montek Singh Ahluwalia today expressed confidence that the mega Infrastructure Conference scheduled for October 7, 2006, has generated phenomenal interest among investors and will go a long way in clearing the cobwebs in policy.

Adressing a press conference in Yojan Bhavan on the conference, Dr Ahluwalia said investment in infrastructure needs to be stepped up from 5 per cent to 8 per cent of GDP, to leapfrog to a ten per cent growth rate in the eleventh plan. This would entail an additional investment of 110 billion dollars and a total investment of 330 billion dollars.

Dr Ahluwalia said the public-private partnership which has been picking up steam, would help get this additional investment. The capital subsidy required in infrastructure projects is seven per cent. Thus, by putting in Rs 7, the government can catalyse private investment of Rs 100, he said.

Dr Ahluwalia said literature that will be circulated at the conference and the interactive sessions between government leaders and industry, would result in far greater interest by investors than that which exists at present.

Prime Minister Manmohan Singh will inaugrate the conference, which is entitled 'Building Infrastructure; Issues and Opportunities.' The event will be adddressed by Finance Minister P Chidambaram, Railway Minister Lalu Prasad, Commerce Minister Kamal Nath, Civil Aviation Minister Praful Patel and Minister for Shipping and Road Transport T R Baalu.

Secretaries to the government for all infrastructure ministeries will make presentations at the conference, which would be attended by a large number of CEOs.

Senior representatives from state governments would be attending the event as much of the action in the area lies in their domain.

Dr Ahluwalia said the government was putting all out efforts to bring about an improvement in the quality of infrastructure, but the basic constraint is resources. This was particularly so as the government has huge committments towards social sector development.

The Plan Panel Deputy Chief said the Committee on Infrastructre, headed by the Prime Minister, has done commendable work ever since its inception in 2004. The conference will serve as an input for the work of the committee.

The financing mechanisms, inclduing the existing mechanisms, like Viability Gap Funding, would also come up for consideration at the conference.

The topics listed for the event are ; roads, ports, seaports, airports and the hotly debated topic of Special Economic Zones.

UNI GS RA GC1849