Plan panel favours setting up of $10 bn Indo-US infra fund

The Plan panel today supported the proposal by India and US to set up a $10 billion debt fund, under public-private-partnership mode, to expedite investments in the infrastructure sector.

"We are in favour of setting up such funds," Planning Commission Deputy Chairman Montek Singh Ahluwalia replied when asked about the proposal of setting up the infra fund.

The proposal has been mooted by the India-US CEOs Forum that comprises 12 corporate leaders from each side and it could help India gather resources to finance its $514 billion infrastructure investment plans.

Earlier in the day, Commerce and Industry Minister Anand Sharma said, "Both the governments will consider the recommendation... It is India-US infrastructure debt fund proposed by the CEO's Forum of $10 billion.

"The governments have yet to take a final view and put in place the modalities. In principle it has been agreed that the governments will be fully supportive of the recommendation."

Ahluwalia also supported Indo-US defence deals and technology transfer agreements. He said they would modernise many parts of the Indian economy, improve productivity and create jobs in both the countries.

"If we are getting the kind equipment we need... That is going to modernise many part of our economy and produce jobs," he said at a CII seminar here.

He said, "These deals would help producing jobs at both places (India as well as in US). These deals would improve productivity which result in creating more jobs."

Besides, Ahluwalia also stressed on the need for more private investment in the education sector particularly higher studies to meet the expanding demand of the country.

"With this kind of economic growth, the public resources would not be enough to meet the expanding demand for higher education in the country and private investment is needed," he added.