Uk Industry Calls For Removal Of Investment Bottlenecks
British High Commissioner to India David Gore Booth, too, echoed similar sentiments and said the Indian decision-makers should play the role of an accelerator and not a decelerator.
The bottlenecks holding back investments, as spelt out by Laing, are lack of a clear framework, a decision on funding of the feasibility studies and delays in the decision making process.
Laing, who is in India, with an eight-member high-powered delegation, in his address at a luncheon meeting orgainsed by the Confederation of Indian Industry (CII) urged the government to set up a central task force comprising of ministers and secretaries of relevant ministries.
The task force should set itself a target of six months to come out with a complete set of proposals for putting in place an effective policy.
According to Laing, his first visit to India to get a feel of the investment policy in the area of infrastructure had left him confused about the role of the multiplicity of government departments involved in the development of infrastructure.
He added that several companies are frustrated about the long-drawn procedure for finalising the winner of the bid.
There are a number of cases where British companies that have put in a bid and the process seems to be just dragging on.
The chairman of the British OverseasTrade Board said that if the bottlenecks prevail then several international companies might be left with no alternative but to shift their focus to countries like Malaysia, Phillipines and Indonesia if it is easier for these companies to invest in these countries.
He also criticised the prevailing rent control and land use norms prevailing in India saying that these could, at times, become very frustrating for the investor. He urged the CII to establish a task force to come out with concrete proposals about how the various problems facing the sector could be addressed by the government at both the Centre and the states.
In sectors like water, for example, it is important that the government allows the private developer to charge commercial rates or else the project would become unviable for him.
Laing said that British infrastructure companies would be extremely keen to participate in the equity of the company which is formed to set up the project.
Earlier, the British High Commissioner said that British infrastructure companies are very keen to come and invest in India but there is an inherent need for greater clarity about the way the market is going, whether the conditions are right or not and whether or not there are sufficient returns. He said that nothing would give Britain more pleasure than seeing India tapping its full economic potential and together aim at making the 50th year a truly golden jubilee year for India.