Mumbai: Keen to boost a sagging economy, the Indian
government is contemplating an additional expenditure
of Rs 10,000 crore in various projects - like the railways,
irrigation, power and highways - as identified by the
committee of secretaries headed by Cabinet Secretary T
R Prasad.
Disturbed
by the fact that the economy grew only 4.4 per cent of
the GDP in the first quarter of the current fiscal in
comparison to the 6.1 per cent in the corresponding period
last year, the government has been contemplating various
measures in order to turn the trend at least by the last
quarter of the current fiscal.
If
this investment goes through it would be in addition to
Rs 58, 000 crore, which ministries of power, petroleum,
roads and the railways are likely to invest in various
projects in their sectors.
Sources
said Rs 11,000 crore each was already lying with the railways
and power, Rs 17,000 crore with petroleum and Rs 8,500
crore with roads. These amounts are already lying with
the ministries, having been allocated during the budgetary
exercise. The general feeling is that if these investments
do go through, then their impact could be felt by the
last quarter of the current year.
The
committee has suggested that only those projects, which
are 70 per cent complete, should be taken up for investments
as it would be worthwhile putting in the extra money in
them and complete them in the current fiscal itself. It
makes sense, therefore, that those sectors like power,
road, petroleum and the railways have been identified
for an additional investment because a number of projects
here would meet the 70-per cent completion mark.
The
sources said the railways have about 12 projects, which
are 70 per cent complete, and the power ministry is keen
on completing the Naphtha Jhakri Hydel project before
its prescheduled time, which is financial year 2003.
As
an additional measure, the government is also
contemplating giving early clearances to projects to cut
out on implementation delays. It is also mulling over
whether to raise the threshold investment limits for individual
ministries to speed up decision-making and to empower
them to award contracts and take investment decisions
after taking advice of financial experts.
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