Financial Daily from THE HINDU group of publications Tuesday, Jun 08, 2004 |
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Industry & Economy
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Economy Logistics - Infrastructure Kalam lays stress on infrastructure Our Bureau
New Delhi , June 7 EMPHASISING the Government's thrust on creation of world-class infrastructure, the President, Dr A.P.J. Abdul Kalam, today laid stress on the "encouraging expansion of roads, ports, airports, railways, water supply and sanitation." Significantly, the Common Minimum Programme (CMP) of the Congress-led United Progressive Alliance (UPA) Government does not find any mention of airports as a thrust area for development. The Government soon after assuming power had reviewed the earlier foreign direct investment (FDI) limit set for the development of Delhi and Mumbai airports at 74 per cent. It pared it down to 49 per cent. On the power sector front, the President has chosen to ignore the CMP's proposal to seek review of the Electricity Act. The CMP had sought review of the Act on the grounds that several States had sought extension to the "mandatory date" for unbundling and replacing the State Electricity Boards. The Power Ministry officials later discovered that there was no need for a review of the Act since the Act provided for extension of the deadline. In his speech, the President mentioned that the Government would be launching a special programme to ensure that households have full access to power. After taking charge, the Power Minister, Mr P.M. Sayeed, said that his thrust area would be rural electrification. The Power Ministry is currently engaged in putting together an `active' policy on the issue. In line with the CMP, the President mentioned in his speech that private sector participation would be encouraged in the power generation and distribution business. He qualified hisGovernment's thrust on `power reforms' by stating that "reforms will be continued in such a way that all sections of society will have access to quality power at affordable prices." In the hydrocarbons sector, he said, "overseas investments will be encouraged". On the Railways front, Dr Kalam said the Railways has suffered immensely over the past few years with rail safety being a prime casualty. "The Government will work purposefully to modernise the vast Railway network, keeping both economic and social dimensions of the Railways in mind," he said.
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