The Deepak Parekh Committee on Infrastructure Finance

Suggesting a slew of reforms in various sectors, including rail, power, coal, gas supply and telecom highways, the report says that the projected investment of about Rs.51 lakh crore during the XII Plan should not be taken for granted.

A time-bound action plan...with a view to improving the enabling environment for private investment . For promoting the Public-Private Partnership (PPP) Model of Development for Projects in sectors such as rail, ports, airports and highways , irrigation, water supply, sanitation and food storage.

Natural Gas

Rationalization of Gas Allocations & Pricing Policy within the next two months as further delay would impact the viability of gas-based power stations. The panel also suggested Raising Prices of Natural Gas.

Rail & Metro Rail

Rationalization of the Prevailing Uneconomic Rail Fares, which have not been revised for a decade.

Greater Involvement of Private sector in Rail Projects and Revamping of the Railway Board on Commercial Lines.

The committee recommends that Future Metro Rail Projects should be taken up through the PPP Mode so that available budgetary resources could be put to better use.

Telecom Sector

100 per cent Foreign Direct Investment (FDI) in the telecom sector. The limit at present is 74 per cent , arguing that it may be difficult for Indian partners to provide 26 per cent capital to companies seeking pan-India presence. The report underlines the need for Rationalisation of the Mergers and Acquisitions Policy to encourage consolidation in line with the international experience. Government to permit 2G licencees to raise funds through external commercial borrowings (ECBs).

Power Sector

Elaborating on the need for Power Sector Reforms, government should Operationalise the Open Access System to Introduce Competition.

This will not only introduce competition, but (will) also help in attracting the Much Needed Private Investment in Power Generation as Producers will be able to sell directly to bulk consumers in a competitive market as against the present reliance on financially unviable discoms .

NHAI

National Highways Authority of India should draw a Month-Wise Plan to Award Contract for 10,000 km during 2012-13.

Expressway  Authority of India

The government should expeditiously set up the long-awaited Express Authority of India, and ensure that Engineering Procurement and Construction Projects for 5,000 km are awarded in the current fiscal.

Airport

With regard Kolkata and Chennai airports, which are being constructed by the Airports Authority of India (AAI), the committee says, “ The operation and management of these airports, including the airside and city side facilities, may be undertaken through PPP... ”

“ Progress of Projects and Award of Contracts in the Infrastructure Sector should be monitored on a Monthly Basis by the Cabinet Committee on Infrastructure (CCI). “

The committee has also noted that “ impediments such as delays in land acquisition and environmental clearances, taxation/GAAR-related issues and regulatory uncertainties need to be addressed urgently.” The committee was also critical about the role of regulators. According to Report , “  Regulators should be more responsive. They should understand the need of the sector. They should take more risk.”