Core sector fund panel to be headed by Deepak Parekh
New Delhi: To ensure increased availability of long-term finance for the infrastructure sector, Finance Minister P Chidambaram has set up a committee headed by HDFC chairman Deepak Parekh.

The committee will look into a number of issues faced by infrastructure companies and will submit a quick report by the end of January 2007 — and a detailed report subsequently.

Building of infrastructure in the country is expected to require nearly $320 billion by 2012. Of this, private sector investments are pegged at close to $75 billion.

The mid-year review of the economy has also sought deepening of the debt market, so that investment risks (in infrastructure) can be diversified and more capital accessed.

The government is also mulling using the country's foreign exchange reserves of $170 billion to bankroll infrastructure projects. The idea was first mooted by the Planning Commission.

Deputy chairman Planning Commsission Montek Singh Ahluwalia said the reserves could be used to tackle the huge infrastructure deficit in the country. The idea did not gain immediate approval of the finance ministry and the Reserve Bank of India.
Back to News Review index page