Parekh panel's infra road map likely this week

The report, which will be tabled this week, expected to lay down the means to attract over Rs 56 lakh cr investment

The new government might soon have an expert road map on infrastructure financing, as a high-powered panel, headed by HDFC Chairman Deepak Parekh, is expected to give its report soon.

A senior government official said the report, expected to be given to the Planning Commission this week, would lay down the means to attract investments of Rs 56 lakh crore in the infrastructure sector in the XII Five-Year Plan. The Plan had pegged infrastructure requirements at this level.

Some recommendations made by the committee in its interim report — given to Prime Minister Manmohan Singh in 2012 — including raising foreign direct investment in telecommunication to 100 per cent from 74 per cent, have been accepted by the government.

Apart from Parekh, ICICI Bank Managing Director Chanda Kochhar and GMR Group Chairman G M Rao are members of the panel.

According to an internal assessment by the Commission, infrastructure investment in 2012-13, the first year of the XII Plan, was Rs 5,34,645 crore (at 2011-12 prices), the lowest since 2010-11. This might be because the economy grew 4.5 per cent in 2012-13, dragging down the requirements for infrastructure as well. In 2012-13, the telecommunications sector was the worst hit; infrastructure investment slid to Rs 36,963 crore in 2012-13, 37.5 per cent of the total target for the sector for that financial year.

The committee had in its interim report recommended realistic pricing for railway passenger fares, electricity, natural gas and ports, to attract big-ticket investments. It also advocated redefining the role of India Infrastructure Finance Corporation by substituting its direct lending operations with guarantee operations.

On tax and other issues, the committee had said overarching impediments such as delays in land acquisition and environment clearances, taxation and General Anti-Avoidance Rule-related issues and regulatory uncertainties, should be addressed urgently.

On railways, the interim report said investments through the public-private partnership mode should be encouraged in new freight corridors, redevelopment of railway stations and high-speed rail projects. On power, the report had advocated import of coal through State Trading Corporation or MMTC or through power producers, to meet the domestic shortage. It also favoured rationalising gas allocation and pricing within two months. The committee favoured deregulation of rates of bulk consumers and allocation of 25 per cent of central power for open access consumers. For roads and bridges, it advocated operationalising the expressway programme and constitution of an expressway authority.

For ports, the panel advocated tariff deregulation and advocated accelerating the pace of capital dredging. For airports, the panel called for public-private partnership in operation and management of 15 non-metro airports and fast-tracking the completion of greenfield airports in Navi Mumbai, Goa, Kannur and Chandigarh. It also favoured PPP in Metro rail, irrigation, water supply and sanitation, oil and gas pipelines and foodgrain storage projects.
INFRA PUSH
Recommendations in Parekh panel’s interim report

Power: Import coal through State Trading Corporation and MMTC or directly through power producers; set rates at sustainable level

Railway: Rationalise passenger fare; encourage public-private partnerships

Airports: Expedite award of new airport projects in Navi Mumbai, Goa, Kannur and Chandigarh

Role of IIFCl: Guarantee operations to enable the flow of non-bank long-term credit for infra projects, especially insurance and pension funds

Ports: Bring rate deregulation and expedite capital dredging