FM moots using forex reserves for infrastructure development

New Delhi, Mar 21 (UNI) Referring to the phenomenal requirements for financing infrastructure development, Finance Minister P Chidambaram today mooted the idea of using foreign exchange reserves to promote investments, particularly in the infrastructure sector.

In his address to a conference organsied jointly by ESCAP and Research and Information System for the Non-Aligned and Other Developing Countries (RIS), Mr Chidambaram said the idea of using the huge build of reserves for purposes of development of the infrastructure has been doing the rounds in the government and among experts.

The financing need of infrastructure has been estimated at 350 billion dollars over the next few years and India's foreign exchange reserves are estimated at more than 180 billion dollars.

''We have a large requirement in India for resources to finance investments,'' Mr Chidambaram said.

''And, if we wish to raise our sights and consider connectivity between Asian countries, than the requirement multiplies several folds,'' he said.

In this regard the Finance Minister said rail connectivity within India itself will require huge resources, but connectivity amog Asian nations will require a multiple of this.

The argument also applies to the telecommunication and road transport as well as shipping.

Mr Chidambaram described the total resource requirement for infrastructure financing for connectivity of the Asian Region as ''staggering'' adding that the government was making all-out efforts to improve infrastructure, a key element for the future development of industry and the services sector.

UNI