Brokers' body suggests dedicated fund for infra projects

In order to help mobilise money from the capital market for infrastructure sector, brokers' grouping ANMI has said the government should set up a dedicated fund for such projects and provide tax incentives on investments.
It has proposed a National Development Mission, under which investors should be allowed to invest a maximum of Rs 2 lakh per annum, and 50 per cent of the invested amount should be deductible from the income tax.
ANMI said the government would have to notify the eligible equity investments like infrastructure projects, public sector disinvestment in shares and equity issuances for projects of national importance.

It added that the eligible equity investments should be listed on the stock exchange to provide liquidity for the investors.
The suggestions were made to the government by the Association of National Exchanges Members of India in its pre-budget proposals.
ANMI said that while there has been good response to tax free bonds of infrastructure companies, the response to equity capital in infrastructure projects has been lukewarm.

"There is an urgent need to mobilise risk capital to fund infrastructure projects. We, therefore, suggest that a new scheme 'National Development Mission' is launched," ANMI said.
There is a need to raise at least Rs 50,000 crore annually wherein all investors, particularly retail investors, contribute towards rapid economic development, it said, adding that even if 50 lakh investors opt for the scheme in 2015-16, at least Rs 1 lakh crore can be mobilised.

"ANMI expects that there will be a 20 per cent growth in annual subscription thereby rising to over two lakh crore in 2018-19," it said.
"ANMI sees the National Development Mission as a logical step in that direction contributing to much needed capital formation for infrastructure and government's development plans," it added.