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Posted on Oct 04, 03:01PM | UNI
The high level Committee on Infrastructure, led by Deepak Parekh, has suggested increasing Foreign Direct Investment (FDI) limit in the telecom sector to 100 per cent.
The Committee today submitted its interim report to the Prime Minister.
The Committee was appointed by the Planning Commission and its head Dr Montek Singh Ahluwalia also met Prime Minister Manmohan Singh in this connection.
Later, the two addressing a press conference here said the plan was to attract one trillion dollars of investment in the infrastructure sector in the 12th Plan. This amount can't be garnered by the public sector alone, and it was important to make it lucrative for the private sector and the public private partnership mode.
The Committee has noted, "Overarching impediments such as delays in land acquisition and environmental clearances, taxation and GAAR related issues and regulatory uncertainties need to be addressed urgently." The proposal to introduce regulatory reforms through an overarching legislation also needs to be implemented. In the absence of these measures, not only will future investments be constrained even the existing investments may be at risk in some cases, it said.
The Committee has identified a number of sector-specific issues constraining investment in infrastructure, especially private investment. In doing so, the Committee noted that the projected investment of about Rs 51 lakh crore can't be taken for granted.