Power Investments To Be Made Easy

The government is simplifying investment procedures in the power sector because the flow of foreign funds in this sector has not been "impressive". He was speaking at the "Destination India" meeting. "We are impressing upon the state governments to streamline procedures at the state level also," he said.

Deve Gowda said his government is also keen to attract investment to develop super highways that would connect all major ports of the country. "We are planning to amend the existing legislation regarding land acquistion to ease the burden on investors."

"The mind of this government is not to harass the investors," he said. "This is a responsive government." Since coming to power, his government has cleared 350 foreign investment proposals worth $4 billion. The entire backlog of proposals was cleared in the last two months.

 

He said fresh foreign investment proposals will be approved in six weeks and foreign investment rules and procedures further liberalised. "In fact, our entry and ownership policy compare favourably with other developing countries."

Gowda said his government has forecast a 7 per cent GDP growth rate in the next ten years with an annual industrial growth of 12 per cent. Further, the objective is to attain a capital formation of 30 per cent of GDP to bridge the investment-savings gap.

Industry minister Murasoli Maran said FDI regulations will be further liberalised so as to attract $10 billion investments annually.

The government is planning to expand the "high priority" industry list by including new industries in it. The government is also considering raising the level of equity participation in certain high priority areas.