CII charts plan to expedite infrastructure projects

NEW DELHI, OCT 24: The Confederation of Indian Industry CII on Saturday presented a seven-point action plan to the government for speed...

NEW DELHI, OCT 24: The Confederation of Indian Industry CII on Saturday presented a seven-point action plan to the government for speeding up implementation of infrastructure projects at the end of its three-day seminar on infrastructure.

The apex industry organisation has asked the government for:

Independent, autonomous, fair-minded and duly empowered regulatory bodies for each of the infrastructure sectors.

Review of all subsidies to ensure fair pricing of all public services with acceptable delivery standards.

Infrastructure Promotion Board to facilitate setting up of new projects, review archaic laws and institutionalise learning from previous infrastructure projects.

State governments must prepare a blue-print for infrastructure where they should detail their charter on infrastructure on a long-term basis. This will enable cogent planning for the different sectors both by the state government and private sector agencies who plan to involve themselves with theseprojects.

State governments must review all existing administrative systems and procedures to ensure faster decision making.

The government should take enabling measures like enacting the Insurance Regulatory Bill which will enable long-term savings garnered by various insurance bodies to be channelised into infrastructure projects. Such measures will also make it possible to develop a deep and vibrant debt market.

Both the Centre and state governments should adopt one infrastructure project as a model project. This model project should make it possible to kick-start other projects as it will set an example for finalising certain rules and procedures.

Reacting to the recommendations, Montek Singh Ahluwalia, member, Planning Commission, said, quot;Some basic changes need to be effected if we have to get our act right on the infrastructure front. The tariff structure needs to be eased. For many decades now the pricing for various services has been subsidised. This has led to inefficientworking of service providers.quot; Unless these subsidies are phased out, it would be difficult to build new infrastructure, he added. The Eighth Plan envisaged entry of the private sector in various areas of infrastructure. At that stage, however, problems of a level-playing-field between the public and the private sectors could not be anticipated, Ahluwalia said. This needs to be sorted out now, he underscored.

Citing the case of the power sector, he said that the National Thermal Power Corporation NTPC is clearly at a disadvantage versus the new power projects which have been guaranteed fuel linkages and payments from state electricity boards. Here, the odds are against the public sector company, he said.

But the scenario is just the opposite for telecom sector where the public sector is better-placed compared to the private sector players, Ahluwalia said. This anomaly related to level-playing-field obstructs functioning of service providers, he stressed. Various issues then get locked in with theregulatory authorities, he said.

Ahluwalia said that it is important that the regulatory authorities are empowered to settle disputes and create a proper environment.

Somnath Chatterjee, MP, who was also present at the valedictory session, said the various central governments for the last seven-eight years have tackled the question of infrastructure in a cavalier manner by giving out conflicting signals and striking an ambivalent posture. Infrastructure can only be built if the government prepares a proper policy framework, he said. He praised the West Bengal government for providing a good administration both in rural areas and cities.