The Hindu Business Line : `Details on SPV for infrastructure projects soon'

THE Finance Ministry will soon be coming out with more details of the special purpose vehicle (SPV), as announced in Budget 2005-06, being set up for providing investment capital for infrastructure projects.

Speaking at the 77th annual general meeting of the Indian Chamber of Commerce (ICC) here today, the Defence Minister, Mr Pranab Mukherjee, , said the Committee on Infrastructure, headed by the Prime Minister, has been systematically addressing policy issues to enhance investment and create a policy framework for attracting private capital in this area.

He said while work on the on-going National Highways Programme was being speeded up, the NHDP-IIIA project has already been approved. Pointing out that the Government has also embarked on a programme of road construction, the Minister said this would provide the additional investment avenues for private capital. "I believe we are on the right track, and if the momentum is sustained, we will be able to address the infrastructure problem."

Describing globalisation as a positive sum game and not a zero-sum game, Mr Mukherjee said, "If there are any losers, it will be our obligation to provide safety nets that will enable them deal with the challenge".

He said over the past decade and more, the debate on the nature of India's interaction with the world, with the wider Asian neighbourhood and with major world powers has also been shaped by the sweeping changes in the country's economic policies.

On the growth front, the Defence Minister said all indications are that "we may be able to deliver growth of 7-8 per cent next year as well, and this extra 1-2 percentage points in growth rates, which seem minuscule at a glance, can make a substantial difference over a period of time".

He said the UPA Government was committed to creating an environment where creativity and enterprise will flourish, where innovation and knowledge will be rewarded and where growth process will be inclusive and beneficial to all sections of society.

Describing globalisation as both an opportunity and a challenge, he said that while the growth of our knowledge economy has opened up new markets for science and technology-based products, the question of whether we are doing enough to encourage this process remains.

According to Mr Anup Singh, President of ICC, the three key priority areas for higher economic growth are development of infrastructure, value addition in Indian agriculture and development of India's human capital.

Calling for balanced economic development in the country, he said it was not a secret that the East and North-East, as a region, have responded far slowly to the exciting opportunities the country is capitalising on today.

The future growth of West Bengal, he felt, would also depend on the fortunes of neighbouring States and nations.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page