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
www.hemenparekh.in / blogs
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