Chidambaram seeks South Korean investment in infra sector

The next bilateral meeting would be held in South Korea

Committing to deepen economic reforms, Finance Minister P Chidambaram today asked the South Korean companies to take advantage of the investments opportunities in the Indian infrastructure sector.

"Since the country's growth potential is around 8 per cent, several steps have been in the recent months to reverse the economic slowdown, rein in the fiscal stress and improve investment climate," he said while addressing the 4th India- South Korea Finance Ministerial meeting here.

The South Korean side was led by Hyun Oh Seok, Deputy Prime Minister and Minister of Strategy and Finance.

The measures being undertaken by the government to improve investment climate include liberalisation in the FDI regime, promotion of exports, banking reforms, deepening of financial markets and fiscal consolidation.

In case of Posco, a steel plant which is being developed by a Korean company in Orissa, Chidambaram said the land acquisition process for the project has been completed.

Chidambaram said to promote domestic and foreign investments in infrastructure, the government had set up a Cabinet Committee on Investment (CCI) to expedite project clearances.

Secondly, he added, Infrastructure Debt Funds (IDFs) were set up to raise low-cost long term resources for refinancing infrastructure projects.

The Korean companies should make good use of the investment opportunities in infrastructure sector, he said, adding: "India is in the process of deepening policy reforms in its financial sector and addressing gaps in the overall regulatory architecture".

Chidambaram said the government is examining the recommendations of the Financial Sector Legislative Reforms Commission (FSLRC), which was formed to review and rewrite the legal-institutional framework of the financial sector laws.

The next bilateral meeting would be held in Korea.