Industry & Economy
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Budget
IIG to beef up infrastructure
Our Bureau
New Delhi
,
July 8
IN a move likely to give an impetus to the financial closure of infrastructure projects including airports, seaports and the tourism sector, the Finance Minister, Mr P. Chidambaram, on Thursday announced the setting up of an Inter-Institutional Group (IIG) to tackle the issue.
The IIG - which includes IDBI, IDFC, ICICI Banks, SBI, LIC, Bank of Baroda and Punjab National Bank - will pool their resources and make available an amount of Rs 40,000 crore.
The IIG will ensure speedy conclusion of loan agreements and implementation of infrastructure projects. The move is likely to give a boost to the Government efforts to modernise and restructure the airports in Delhi and Mumbai. Official sources said that the funds from the IIG would be utilised not only for the upgrade of the two metro airports but also for restructuring of other airports if the need so arises.
Similarly, the Finance Minister announced that during 2004-05, the Government will provide equity support of Rs 14,194 crore and loans of Rs 2,132 crore to Central public sector enterprises (CPSEs), including the Railways. Mr Chidambaram added that the major investments will be made in PSEs falling in diverse sectors of power, telecommunications, roads, petroleum, coal and civil aviation.
In the civil aviation sector alone, the more than Rs 20,000-crore 71-aircraft fleet acquisition plans of both Air India and Indian Airlines is pending with the Government.
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