Infra Funds worth Rs. 50,000cr on the anvil

The Planning Commission Deputy Chairman, Muntek Singh Ahluwalia, in a statement reiterated that Rs. 50,0000 crore infrastructure funds targeted by the Central government for financing infra projects across the country are all set to become fully operational before the end of this financial year.

He added claiming that the committee spearheaded by the State Bank of India Chairman O P Bhatt is looking into the changes needed in the regulatory framework for creating IDF and its final report is expected any time now. Prior to this, in June this year, an expert panel headed by HDFC Chief Deepak Parekh had recommended setting up of IDF funds to the tune of Rs. 50,000 crore for financing projects in the crucial sector.

The committee in its recommendations submitted to the Plan Committee, had asked the government to make changes in rules to allow funding by pension and insurance companies. In addition, it had also called upon the government ensuring the sectoral regulators including Reserve Bank of India, SEBI, IRDA and PFRDA softening their existing laws to enable market players to use the large amount of untapped insurance and pension funds. The Planning Commission Chairman reiterated that if everything goes as per plans these funds would be ready for financing infrastructure projects before the beginning of the next fiscal.