Government has assigned a high
priority to creation of physical infrastructure for sustaining the growth
momentum and for achieving inclusive growth. During the 11th Five
Year Plan, the investment target is Rs. 20,50,000 crore. For the 12th
Plan, the likely target will be Rs. 41,00,000 crore (at constant 2006-07 prices), of which investment, about
one half is expected from the private sector and a significant proportion of
the balance half will be funded by public sector undertakings through market borrowings.
It would be necessary to evolve policy responses to enable the flow of large
capital resources of this order into infrastructure projects. In order to
review the existing framework and to make recommendations, it has been decided
to constitute a High Level Committee on Financing of Infrastructure under the
chairmanship of Shri Rakesh Mohan, former Deputy Governor of the Reserve Bank
and former Secretary, Department of Economic Affairs, who will have the status
of a Minister of State in an honorary capacity.
2. The Terms of Reference of the Committee
will be as under:
(i)
To
assess the investment required to be made by the Central and State Government,
Public Sector Undertakings (PSUs) and the private sector in the ten major
physical infrastructure sectors during the Twelfth Five Year Plan.
(ii)
To
identify areas and activities to be financed by the government, public sector
undertakings and the private sector respectively.
(iii) To suggest ways to enable the requisite
flows of private investment in infrastructure including the creation of a
supportive investor-friendly environment.
(iv) Make recommendations on the role government
could play in developing the capital markets for intermediating long term
savings for investments in infrastructure projects, including the fostering of
appropriate institutional arrangements.
(v)
Examine
the role of international capital flows in infrastructure financing and
development, assess the nature of projects likely to receive such capital, and
consider how such financing can be obtained, in a sustainable manner.
(vi) Identify any regulatory/ legal impediments
constraining private investment in infrastructure, and make specific
recommendations to facilitate their removal.
3. The composition of the Committee shall
be as under:
Chairman
1) Dr. Rakesh Mohan (in
Honorary capacity, with status of MoS)
Members:
2) Secretary, Department of Economic Affairs
3) Secretary, Department of Financial Services
4) Chairman, Insurance Regulatory and
Development Authority
5) Chairperson, Pension Fund Regulatory and
Development Authority
6) A Deputy Governor of RBI to be nominated
by Governor, RBI
7) Chairman, State Bank of India
8) Chairman, Life Insurance Corporation of India
9) Chairman, Power Finance Corporation
10)
Managing Director, ICICI Bank
11) Managing Director, Infrastructure
Development Finance Company Limited (IDFC)
12) Shri Uday Kotak, Kotak Mahindra Bank
13) Shri G.M. Rao, Chairman, GMR Group
14) Shri Sanjay Reddy, Managing Director,
GVK Group
15) Country Head, Goldman Sachs
16) Shri Madhav Dhar, Managing Partner,
Traxis Partners
Member
Convenor
6)
Shri
Gajendra Haldea, Adviser to Deputy Chairman, Planning Commission
Special Invitees
1)
Chairman,
Railway Board
2)
Secretary,
Ministry of Power
3)
Secretary,
Ministry of Road Transport and Highways
4)
Secretary,
Ministry of Urban Development
5)
Secretary,
Ministry of Petroleum and Natural Gas
6)
Secretary,
Ministry of Telecommunications
1)
Secretary,
Ministry of Water Resources
2)
Chief
Economic Adviser, Ministry of Finance
4. The Committee will be serviced by the
Planning Commission and the Infrastructure Development Finance Company (IDFC).
The headquarter of the Committee will be at New Delhi. The tenure of the Committee shall be 18 months.
NNK/RK