The apex committee headed by Prime Minister Manmohan Singh is meeting tomorrow to discuss key proposals to boost overall demand in the economy. Increased public funding of infrastructure projects and fiscal sops for labour-intensive export sectors affected by the global financial crisis are among the proposals that are likely to be discussed.
The Planning Commission has mooted an idea to expand funding from the Reserve Bank of India (RBI) to the India Infrastructure Finance Company Ltd (IIFCL), so that infrastructure projects can access finance at lower cost from the government-owned IIFCL.
“We have made certain proposals, which I hope will be discussed in the apex committee tomorrow. They require consultation with other ministries, including the finance ministry,” Planning Commission Deputy Chairman Montek Singh Ahluwalia said on the sidelines of a function here.
“That mechanism (RBI providing money to IIFCL) should be hugely expanded. For the remainder of this year and for next year, a very major expansion in the flow of resources through this mechanism is necessary,” he said.
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