Inter-departmental consultations between the Finance Ministry and Ministry of Corporate Affairs are at an advanced stage for rolling out “relaxed and enlightened” regulations for private equities and venture capitalists so that India attracts larger volumes of their investments in areas of infrastructure, healthcare and clean energy, according to Mr R Bandyopadhyay, Secretary, Ministry of Corporate Affairs.
Mr Bandyopadhyay was speaking while inaugurating the 2nd Annual Private Equity Convention organised by Assocham. He also indicated that to achieve and sustain the double digit growth, focus on the needs and aspirations of the corporate sector, entrepreneurs, PEs and VCs is required.
He added that the Ministry of Corporate Affairs is willing to take up issues concerning investments in the aforesaid core sectors with the Finance and Commerce Ministries.
Enter more sectors
The Secretary, however, added that there are certain rules and regulations for PEs and VCs but the industry has been consistently demanding that rules currently in vogue need to be modified and rationalised.
Expressing his satisfaction over the entry of PE in the energy sector Mr Bandyopadhyay said that it indeed is a sign of sustainable growth in the country and maintained that PEs and VCs should venture into the pharma and IT domains, too, where India offers a vast scope for growth and development compared with other countries.