The Industry ministry on recenlty pitched for setting up of SWF (Sovereign Wealth Fund) for infrastructure financing, which requires an estimated Rs. 45 lakh crore ( $1 trillion) in the next 5 years.
In a discussion paper on infrastructure financing, the ministry said, ''The government should use part of its Forex (Foreign exchange reserves) to set up the sovereign wealth fund as has been done by countries like China, Korea & Singapore. While the RBI (Reserve Bank of India) has reservations about the issue, this SWF option needs to be explored,"
Our country has Forex of about $ 32,000 Crore (about Rs. 15,68,000 Crore)
Besides, setting up SWF, the Industry ministry has also made a case for development of domestic bond market, currency market and debt funds for financing infrastructure projects, seen as a major bottleneck in achieving double digit economic growth.
The concept paper also suggested that the central government should address the taxation issues concerning infrastructure bonds as they would not be eligible for income tax exemptions.
In a discussion paper on infrastructure financing, the ministry said, ''The government should use part of its Forex (Foreign exchange reserves) to set up the sovereign wealth fund as has been done by countries like China, Korea & Singapore. While the RBI (Reserve Bank of India) has reservations about the issue, this SWF option needs to be explored,"
Our country has Forex of about $ 32,000 Crore (about Rs. 15,68,000 Crore)
Besides, setting up SWF, the Industry ministry has also made a case for development of domestic bond market, currency market and debt funds for financing infrastructure projects, seen as a major bottleneck in achieving double digit economic growth.
The concept paper also suggested that the central government should address the taxation issues concerning infrastructure bonds as they would not be eligible for income tax exemptions.
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