The Hindu Business Line : Mineral policy to focus on infrastructure growth

Focus on cost-effectiveness: Mr T. Subbarami Reddy (right), Union Minister of State for Mines, and Mr G.V. Ramakrishna, Conference Chairman, at the Infrastructure Today international conference in Hyderabad on Wednesday.

Our Bureau

Hyderabad, March 26 The National Mineral Policy (NMP), which is expected to bring in fresh investments in the mining sector, is likely to be placed before Parliament for its approval soon.

“The NMP, which was recently cleared by the Cabinet, will be placed in Parliament for its approval during the current session. The Government expects an annual investment of a minimum of $2 billion and create an additional five lakh jobs in the next five years,” Mr T. Subbarami Reddy, Union Minister of State for Mines, said at an infrastructure conference here on Wednesday.

The Minister also said that the NMP envisages local area development and special attention will be given to development of infrastructure in mine areas.

According to Mr Reddy, cost-effectiveness is a very important parameter which directs the construction industry.

Cost-effectiveness

“Despite the spiralling prices of steel, cement and other inputs, the industry is looking up because of sustained economic growth. Also the construction industry must not be driven by profit motive alone. While it is important to be financially viable, companies must also feel it as a social obligation to deliver cost-effective solutions,” he said.

“The production levels in the construction sector are very low. Scientific methods have to be adopted to increase the productivity of men and materials and companies have to take initiatives to develop the workforce,” the Minister said.

Earlier, Mr Rajeev Ratna Shah, former Secretary, Planning Commission, said that the Government, in the Eleventh Five-Year Plan (2007-2012), is looking at an investment of around $494 billion (Rs 20,27,000 crore) for developing the infrastructure in the country.

Mr Shah added that since the Government was looking for an active participation from the private sector, it is also important to have a good regulatory mechanism and have a mechanism for long term debt financing.

“While we have a mechanism through the India Infrastructure Finance Company for providing long term financing, the regulatory mechanisms are still evolving for various sectors,” he said.

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