NEW DELHI, OCT 3:
The Deepak Parekh committee on infrastructure finance has suggested increasing the FDI limit in the telecom sector to 100 per cent. The committee submitted its interim report to the Prime Minister on Wednesday.
The committee has also noted that “impediments such as delays in land acquisition and environmental clearances, taxation/GAAR-related issues and regulatory uncertainties need to be addressed urgently.”
The committee also wants proposal to introduce regulatory reforms through an overarching legislation to be implemented. In the absence of this , it feels that not only will future investments be constrained but also the existing ones may be at risk.
The committee was also critical about the role of regulators. Deepak Parekh, who is also chairman of HDFC, said, “Regulators should be more responsive. They should understand the need of the sector. They should take more risk.”
The committee has identified a number of sector-specific issues constraining investment in infrastructure, especially private investment. In doing so, it noted that the projected investment of about Rs 51-lakh crore cannot be taken for granted. On the contrary, it is likely to fall short significantly if measures to remove policy impediments are not taken within a short timeframe.
Deputy Chairman of the Planning Commission Montek Singh Ahluwalia said that final report should be submitted by December, so that some of the views can be incorporated in Budget 2013-14
-Thanks - Business line
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