Parekh panel for rail, power hike
The Deepak Parekh Committee has suggested 100 per cent FDI in the telecom sector from the present 74 per cent; hike rail fares and power tariffs, removal of uncertainties over taxation issues like GAAR, creating a favourable environment for private public participation in infrastructure projects and several other points in order to attract funds for infrastructure.
The committee which was appointed to suggest ways to remove impediments in the way of financing infrastructure presented its report to the Prime Minister on Wednesday.
The 12th Five-Year Plan has envisaged `51.46 lakhs crore needed for funding the infrastructure sector of which 47 per cent is to come from the private sector. The report said the government should “draw 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”.
The private sector’s share was 37.53 per cent during the 11th Plan. The Committee warned that this target of `51.46 lakhs crore would not be able to be achieved unless the government tackled in the shortest possible time the issues that were impeding private investment in infrastructure.
On the issue of land acquisition which is one of the most contentious issues holding up most of the infrastructure projects, the Parekh committee, said, “Overarching impediments such as delays in land acquisition and environmental clearances, taxation/GAAR related issues and regulatory uncertainties need to be addressed urgently.”
In order to maintain flow of investment in the power sector, the report said, “Tariffs will have to be set at sustainable levels, while also improving the collection efficiency and reducing losses”.
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