The Hindu Business Line : CII for thrust on rural infrastructure

THE Confederation of Indian Industry (CII) has urged the Government to make the construction and concreting of village roads a major priority for 2004-05 by setting clear targets and financing plans.

In its pre-Budget memorandum submitted to the Government, CII has said these projects should be monitored as well as the National Highway Authority of India programme.

The memorandum states that India can achieve an annual growth in Gross Domestic Product (GDP) of seven-to-eight per cent in the next decade so as double its GDP. In this backdrop, the essence of chambers recommendations for the budget is woven around four challenges including that of building world-class infrastructure, improving agricultural growth, empowering youth and creating adequate employment opportunities and continuously enhancing the competitiveness of domestic companies.

While emphasising on the need to provide a boost to rural housing, the memorandum suggests that rural housing loans from banks as well as housing finance companies should be counted as a part of the priority sector loans and advances. Further, it has suggested that rural housing portfolio of banks and housing finance companies should be accorded infrastructure status under a variation of Sections 80IA and 80IB of the Income Tax Act.

The chamber has said the bonds or deposits of housing finance companies with a credit rating of "AAA" should be made an eligible form of investment by provident and pension funds.

The memorandum has suggested the creation of an independent Railways Tariff Regulatory Authority.

In order to encourage fiscal reforms in the power sector, the memorandum has suggested the implementation of the key recommendations of the N.K. Singh committee report.

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