Rs 2 lakh cr investment to flow into power sector after NSG's waiver

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New Delhi, Sep 8 (UNI) With a 'clean' waiver secured from the Nuclear Suppliers Group (NSG) for the Indo-US Nuclear deal, India Inc expects investments worth about Rs two lakh crore to flow in to the nuclear power generation sector.

''With nuclear civil agreement with the US, a minimum of Rs two lakh crore investment is expected to go towards nuclear power generation as 40 domestic companies have already started negotiations with their foreign counterparts for nuclear power generation,'' Assocham past president Venugopal N Dhoot said.

Mr Dhoot said among the lead corporate that are negotiating nuclear power joint ventures include the Videocon group, Jindal Power, Tatas and the like.

With nuclear civil power agreement becoming a reality, he said the power generation would be to an extent of 40,000 megawatt in next 15 years and the cost of power will be much cheaper.

He said the Assocham would shortly submit a detailed blueprint to Prime Minister Manmohan Singh.

Meanwhile, the Assocham Study on 'Indian Manufacturing: Aiming to Achieve 15 per cent Sustainable Growth,' has brought out a 20-point approach paper for achieving 15 per cent manufacturing growth with focussed attention to improve logistics, port operations, trade policy approach, relaxation in borrowing costs and tax exemptions for India Inc.

The other points include reforms in infrastructure sector, diversification in existing export structure, emphasis on R&D, partnership between policy makers and captains of Indian industry, liberalisation of reforms in labour and engineering sector and special concession for agriculture products as well as processing of perishable products including reliable power supply.

The Study has adequately stressed that this sector needs government attention particularly on stalled reforms and removal of uncompetitive barriers.

According to Mr Dhoot, these barriers are crippling growth and development prospects of various industrial groups.

Furthermore, the importance of building indigenous brands through publicity and the ability to market a product under own brand is must for international competitiveness.

Manufacturing in itself is a vast sector next just to agriculture, there are 17 broad sub-sectors under two-digit level classification and further classification leads to more sub-sub sectors, thus bringing a revolution to the whole sector at once is a mammoth task.

While continuing the focus on labour-intensive sectors like food processing and textiles, India should aim at higher target (over 15-18 per cent) for high potential sectors such as engineering goods, including machinery and transport equipments, and pharmaceuticals.

The target for high growth in engineering sector is particularly more important to promote India as a hub for global manufacturing.

For the engineering sector, the chamber suggested that the government should focus on setting up engineering export processing zones, focus approach on identifying thrust products and thrust markets, upgradation of technology, sales promotion effort, prompt delivery and aftersales services, support to small-scale units, more involvement of large-scale units, setting up of joint ventures, attraction of foreign direct investment, establishment of free trade area or preferential trade agreements are some of the areas that can very well push India to be a world class manufacturing hub.


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