PMSpeak: Growth, power, globalisation

States urged to address coal, power issues.

Prime Minister Manmohan Singh today urged states to pay attention to power and coal sectors as shortage of power could handicap them critically in their quest for growth.

Inaugurating the 25th India International Trade Fair, Singh said the trend of globalisation was irreversible and the government was committed to bringing tariffs down to Asean levels. "We are also working actively to bring the economies of South and South East Asia closer. We are on the threshold of unveiling an India-Asean FTA and the Safta will come into effect from the coming new year," he said.

Singh said improving availability of power at efficient prices was of prime importance for the government. "We need to improve the financial condition of power distribution companies. We need to focus on making our state electricity boards (SEBs) viable, healthy and efficient," he said.

Admitting that there were "internal constraints" such as illiteracy, ill-health and poor infrastructure coming in the way of sustaining the 7 per cent economic growth rate, Singh said, "There has been inadequate attention paid to the development of basic infrastructure of modern industrial development. We are committed to reversing this."

Referring to the recent initiatives in road, airport and railway sectors, he pointed out that every area of infrastructure development would require public-private partnerships as the public sector alone could not deliver all that was required.

Speaking on the occasion, Commerce and Industry Minister Kamal Nath said India's commercial engagement with the world this year would be in the region of $330 billion, with $150 billion of exports and $180 billion of imports (both goods and services).

Chief Minister of West Bengal Buddhadeb Bhattacharjee, in his address, said the annual industrial investment in the state totalled more than Rs 2,000 crore, with countries like Japan being the highest foreign direct investors.

He said the state government now planned to set up three satellite cities and two special economic zones, in addition to the existing two SEZs for gems and jewellery and information technology. "We are also pursuing a plan for adding more capacity in the power sector," he said.

N D Tiwari, chief Minister of Uttaranchal, said projects to produce 20,000 MW of power were in the pipeline in the state, with an envisaged investment of Rs 65,000 crore. The state has also launched ambitious plans for setting up organic export zones.