| Planning Commission Deputy Chairman Montek Singh Ahluwalia had proposed using India's foreign exchange reserves to finance infrastructure projects. |
| "There is a very stimulating debate going on and I am carefully watching it. Once, all points of view are represented, I will take up the matter with the Prime Minister," Chidambaram said in response to a question at the Economic Editors' Conference. |
| Ahluwalia has repeatedly suggested apportioning $10 billion for bridging the infrastructure 'deficit', even if the process led to a higher fiscal deficit. |
| He has proposed that the government approach Parliament seeking exemption from the Fiscal Responsibility and Budget Management Act. |
| Though the move was viewed as inflation-neutral, there were apprehensions it would create artificiality in the foreign exchange market. |
| In his inaugural address, the finance minister said an inter-institutional group of financial institutions, including IDBI Ltd, Infrastructure Development Finance Company, ICICI Bank, State Bank of India, Life Insurance Corporation, Bank of Baroda and Punjab National Bank, had been mandated to fund airport, sea port and tourism projects. |
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