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Confederation of Indian Industry (CII) Suggests Agency For Infrastructure Projects In The Country


By ugesh sarkar, Section Infrastructure
Posted on Tue Nov 11, 2008 at 09:52:10 PM EST

In order to expedite and enable smooth functioning of the infrastructure projects in the country, industry body, Confederation of Indian Industry (CII), has recommended setting up of a national infrastructure implementation and monitoring agency.

According to Vinayak Chatterjee, Chairman, CII Infrastructure Council: "The national infrastructure implementation and monitoring agency would identify top 20 infrastructure projects, where the expenditure is already committed and would closely monitor them. It would also help in removing obstructions in way of projects."

The agency should have 10 of the best top executives from top 10 corporates of India and 10 from the government, who would report to the Prime Minister on a weekly basis, said Chatterjee.

He also recommended the creation of a dedicated development finance institution for the infrastructure sector that should act like the "mother of the sector".

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This would be an important step in the face of current economic slowdown with receding demand when corporates are playing cautiously, and the immediate need is to jumpstart public expenditure in infrastructure projects.

Though, there have been talks of having a nodal agency for infrastructure, nothing concrete has come so far and various ministries are still handling various segments of infrastructure like transport, power, telecom, real estate etc.

Second measure suggested by Chatterjee is to create a real estate asset reconstruction fund for supporting the real estate sector, which he said, has been affected the worst by the present economic crisis.

Source: Business-standard 11/Nov/2008

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