quot;10 bn needed in core sectorquot;

MUMBAI, Nov 4: Power minister P R Kumaramangalam said that the country needs investments worth 10 billion each year in the core sector for...

MUMBAI, Nov 4: Power minister P R Kumaramangalam said that the country needs investments worth 10 billion each year in the core sector for the next 10 years in order to remove its infrastructural bottlenecks.

Addressing the 42nd annual general meeting of the Indo-German Chamber of Commerce IGCC, the minister said installation of an additional 40,000 mw power in four years will itself require an investment of whopping 35 billion.

8220;The reforms have come to a stage of maturity and implementation of the proposed projects will not be delayed as the policies are in place,8221; he said.

Besides, the Centre and several states also have set up the electricity regulatory authorities as advised by the Centre earlier this year. 8220;Setting up of these bodies was necessary largely to rationalise the tariff structure all over the country,8221; he said.

It was also considered a prerequisite for private investment in the sector, he added. The Centre has also passed the Transmission Act to facilitate private investmentin the capital-intensive sector, he said.

Kumaramangalam said that the Centre will pass by March mega power projects policy through which another 15,000 mw of power would be added. Besides, both NHPC and HTPC will float tenders by March to add another 10,000 mw of power.

In his address, German Ambassador, Heinrich-Dietrich Dieckmann said though Germany is the second largest investor in India and the country8217;s second largest trade partner, India still shares only one per cent of the total foreign investment of Germany and trade here is only one per cent of total German international trade.

Story continues below this ad

There is a lot of scope for further investment both in direct investment from Germany and bilateral trade, he added. However, like any local company, the foreign companies also face hurdles in implementing plans due to lack of infrastructure and bureaucratic delays, he said.