Financial Daily from THE HINDU group of publications
Wednesday, Nov 16, 2005
Financial Daily from THE HINDU group of publications Wednesday, Nov 16, 2005 |
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Opinion
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Letters Financing infrastructure
This is with reference to the editorial "Financing infrastructure" (Business Line, November 5) and an article on the same subject, `Infrastructure investments - Not needed yet another financing entity' (Business Line, November 14). The need for infrastructure development in the country on priority basis is undisputedly recognised by all including the government. However the solution to the problem does not lie in setting up new institutions such as India Infrastructure finance company limited (IIFCL) but identifying bottlenecks and taking suitable remedial measures. What happened to IDFC, which was also set up for similar purpose with much fanfare by the present FM during his earlier term? The Government even provided advance equity which is unheard of, mainly with a view to supporting the growth of the organisation and meeting the emerging needs of infrastructure development in the country. In the new dispensation, IDFC has been completely forgotten and the government as well as the RBI for some strange reason seem to have adopted a hands-off approach. Development financial institutions such as IDBI, IFCI, SIDBI and IIBI are being denied any support by Government on the one hand and on the other Government is setting up IIFCL and has agreed to provide guarantee for raising resources. The plan seems to be not concern for providing resources for infrastructure development but to set up new institutions. One therefore need not be carried away by the euphoria of setting up a new institution especially when the existing or the old one is being given a quiet burial. I agree with Mr Venkitaramanan's analysis that IIFCL may be a bureaucrat's delight but is likely to clutter the financial landscape. Richika Tyagi New Delhi
Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in
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