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Punjab Told To Improve Infrastructure

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BSCAL
Last Updated : Aug 24 1996 | 12:00 AM IST

In a note recently submitted to the state government, the chamber has suggested that in future, Punjab's approach should be to compete with the newly emerging high growth region of south-east and east Asia. These economies should be the benchmark for the state to create world class infrastructure for self sustaining development, the chamber has said.

A delegation from the chamber will hold discussions on the basis of the note with Punjab chief secretary V K Khanna and other senior officials of the state government here on August 26.

The chamber's note has stressed on creating an industry friendly environment in Punjab. It has urged the state government to adopt concrete measures to encourage private investment in the road sector, power generation and distribution and integrated township development.

As funds for developing new industrial infrastructure will have to be largely generated outside the state plan, transparent guidelines to encourage private investment to upgrade the existing infrastructure and take up new projects are necessary. Only then Punjab will become the preferred destination for investment, the note says. It suggests that international institutions can also be approached to supplement domestic resources.

The chamber has suggested that the state government should identify two or three free enterprise zones to begin with and offer them to the private sector for developing state-of-the-art infrastructure. But before announcing such an offer, the government should complete land acquisition work. Offering land free of disputes is a must to ensure time bound development of a free enterprise zone.

External road linkages and telecom facilities should be provided since only then can projects take off.

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Dedicated allocation of power from the Punjab State Electricity Board should be ensured, the chamber has said. It has expressed concern over the power situation, and pointed out that only one power station of 210 mw has been commissioned in the state since 1992. Punjab should follow states like Andhra Pradesh, Maharashtra and Rajasthan which have been successful in tapping private investment in the power sector, the note has said.

The chamber has emphasised that the government arrange for generation of power within the state. It should also enter into commercial agreements for purchase of power from other states. The chamber has pointed out that Himachal Pradesh is encouraging development of hydel power projects in the private sector and the Punjab government should also tap this potential source.

The chamber has also suggested that a joint sector distribution company should be floated in one of the industry intensive circles. The state electricity board may invest up to 25 per cent in the share capital. Competition between the state electricity board and the new company will lead to improvement in the distribution system as bench marking of supply will be possible.

Regarding strengthening the surface transport network, the chamber has regretted that the state has so far not taken concrete steps to involve the private sector in construction and upgradation of highways and bridges. Suggestions to strengthen the surface transport network are:

* To begin with, the state government should finalise the terms and conditions for six projects on a priority basis and offer them to the private sector through global bids.

* The state allocation for strengthening the road network should be increased.

* The quality specifications for the maintenance and upgradation of roads should be suitably reviewed and strictly monitored.

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First Published: Aug 24 1996 | 12:00 AM IST

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