The Hindu Business Line : Early implementation of Patil panel report likely

Deepening debt market
States urged to identify a shelf of projects as public private partnerships
Infrastructure development would require bulk of the resources from within the country

BUILDING NATION: (From left) The Commerce and Industry Minister, Mr Kamal Nath; the Railway Minister, Mr Lalu Prasad; the Deputy Chairman of Planning Commission, Mr Montek Singh Ahluwalia; and the Finance Minister, Mr P. Chidambaram, at the conference on `Building Infrastructure: Challenges and Opportunities', in the Capital on Saturday. - Kamal Narang

New Delhi , Oct. 7

The Union Finance Minister, Mr P. Chidambaram, on Saturday indicated that the Government would soon begin implementing many of the recommendations of the Patil Committee on broadening and deepening the corporate debt market.

"We will have to work with the Reserve Bank of India and the Securities and Exchange Board of India to implement these recommendations. I am confident that we will begin implementing many recommendations," Mr Chidambaram said at the conference on `Building infrastructure: Challenges and opportunities' here today.

Infrastructure Development

He said that the Finance Ministry has more or less made up its mind on what was required for the corporate debt market. The development of corporate debt market was necessary for infrastructure development, which would require huge resources.

On the estimated resource requirement of about $350 billion for financing infrastructure development during the 11th Plan Period, Mr Chidambaram said that bulk of the resources would have to come from within the country.

"If we factor in FDI of say $16 billion per year, we may have to raise about $50 billion from within the country every year. This is not impossible if we are able to put in place necessary laws to tap the long-term intended savings of the people of the country," Mr Chidambaram said.

Pension Bill

Stating that the people of India want to save for the long-term, he pointed out that except insurance, which had both savings and risk component, there was really no long-term instrument available in the country.

"We need to press ahead with pension products and new insurance products and for that legislation has to be put in place. There is no way you can raise long-term debt unless the Pension Bill is through and unless in course of time the Insurance Bill is through," he said at a session on `Financing of Public Private Partnerships'.

He said that the Government was working with the coalition partners to "clear the way" for the Pension Bill and expressed hope that there would be some movement in the next few weeks. Mr Chidambaram also urged the States to impart a degree of urgency in preparing and proposing a shelf of projects as public private partnerships.

Projects

"We must quicken the process of identifying a large number of infrastructure projects for which money could be arranged and projects implemented. We want State Governments to propose projects as PPP. They may or may not require viability gap funding," he said.

It was also decided at this session that Infrastructure Development Finance Corporation would put together a list of consultants in the country. This list would be circulated among various Ministries and State Governments. Mr Chidambaram said that State Governments would be invited to use these consultants and start-preparing shelf of projects. The Centre would pick-up the tab for these consultants.

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