Thursday, November 18, 2010

High Level Committee on Financing of Infrastructure



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.

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