New Delhi: The committee on infrastructure financing
Wednesday asked the government to allow 100 percent foreign direct
investment (FDI) in telecom, privatise state-owned monopolies and
raise electricity charges and rail fares.
In its report to Prime Minister Manmohan Singh, the panel asked
the government to overhaul the regulatory framework in
infrastructure, bring in clarity on taxation issues such as
anti-tax avoidance rules, and expedite land acquisition and
environmental clearance to attract investment in the
The committee, headed by HDFC chairman Deepak Parekh, projected an
investment of Rs.51.46 lakh crore in the 12th Plan period
(2012-17), pegging the private sector share at 47 percent.
"Business-as-usual approach is unlikely to deliver this level of
investment," the panel said and asked the government to draw "a
time-bound action plan" to improve the enabling environment for
The share of private sector in infrastructure funding was 37.53
per cent during the 11th Plan.
The panel called for increase in FDI in telecom to 100 percent
from the current 74 percent and removing regulatory uncertainties
related to allocation, pricing and sharing of the spectrum
allotted in the past.
It suggested public-private partnership (PPP) initiatives for
railways to mobilise private investment, including in
modernisation of stations, elevated suburban corridors in Mumbai,
development of new freight corridors, high speed rail projects and
manufacturing of diesel and electric engines, coaches and wagons.
Here are the sector-specific suggestions made by the committee:
Telecom: Increase FDI to 100 percent, remove regulatory
uncertainties related to allocation, pricing and sharing of the
spectrum allotted in the past
Power: Rationalise tariffs, revise standard bid documents, allow
import of coal through STC/MMTC or directly through power
Roads: Set up expressway authority, expedite institutional
restructuring of NHAI
Railways: Rationalise passenger fares, encourage PPPs in various
sectors of railways
Airports: Expedite award of green field airport in Navi Mumbai,
Goa, Kannur and Chandigarh in current year
Ports: Expedite awarding of projects
Role of IIFCL: Guarantee operations to enable the flow of non-Bank
long term credit for infra projects, especially insurance and