Stop Flogging a Dead
Horse !
===========
Times of India ( 16 Sept ) carries following news
report :
“ Centre to tap market to fund
infra projects “
Facing a huge need for funds for
on-going urban infrastructure projects including housing for all and smart
cities, the Centre will tap the market for borrowings to raise resources.
While addressing the ‘Public Affairs
Forum of India’ on challenges and opportunities of rapid urbanisation in the
capital on Friday, Union housing and urban affairs minister Hardeep Singh Puri
said his ministry is seriously thinking of borrowing from the market to
incentivise speedy execution of urban infrastructure projects launched in the
past two years.
This will be the first such move by the
ministry to raise funds from the market. Puri said his ministry will set up a
special purpose vehicle (SPV) for this purpose and the process will start soon.
“To overcome the severe infrastructure
deficit accumulated over long years, huge order of investments is required. To
meet various contingencies and to ensure fund availability to meet the targets
under new urban missions, we are thinking of mobilising resources from the
market. We have undertaken an assessment of requirement of funds till 2022 and
likely flow of funds,” Puri said.
Till now, only a few municipalities
including the Pune Municipal Corporation have raised fund from market through
bonds.
TOI has learnt that the fund raised from
market by the ministry will be used to meet the fresh demand. For example,
Andhra Pradesh government on Friday assured the ministry to construct over five
lakh affordable houses in the next 15 months. So, the Centre has to pay more as
assistance to the state than what could have been allocated from budget under
normal circumstances.
“The fund raised by ministry could be
used to meet such demand and subsequently government would increase the
budgetary allocation,” a source said.
Earlier Puri also said that a
comprehensive evaluation of implementation and outcomes of Jawaharlal Nehru
National Urban Renewal Mission (JNNURM) will be undertaken.
Dear Shri Hardeep Singh
Puriji :
Whereas ideas of,
·
raising funds for Infrastructure from the market ( Public ? )
·
·
setting up a Special Purpose Vehicle ( SPV ) ,
·
are very good , I have serious doubt
that your effort will succeed , since neither the banks nor the general public
are likely to come forward with $ 500
BILLION that you need ( - to start with ! )
I urge you to follow the example of tiny
Indonesia which , only a few months back ,
managed to raise $
460 BILLION ,
for its own Infrastructure needs ! @ 4% tax – no penalty for declaring
tax-evaded assets !
Here is how :
18 Sept 2017
With Regards,
hemen
parekh
(
M ) +91 - 98,67,55,08,08
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