Wednesday, October 3, 2012

Parekh panel suggestions

Parekh panel on financing of infrastructure headed by HDFC chairman Deepak Parekh suggests big-ticket reforms to attract investment in the infrastructure sector, it recommended increasing electricity charges and rail fares.
The committee also recommends 100 per cent foreign direct investment (FDI) in the telecom sector as against current 74 per cent.
The panel also suggested raising prices of natural gas.

The pannel thinks these recommendations will help in attracting Rs 51.46 lakh crore for funding infrastructure sector during the 12th Five Year Plan (2012-17), said the report which was presented to Prime Minister Manmohan Singh.
The report adds, "a time-bound action plan...with a view to improving the enabling environment for private investment which is expected to finance about 47 per cent of the projected investment during the 12th Plan".

Worth reading