ibnlive » India

Oct 03, 2012 at 07:34pm IST

Parekh panel suggests reforms, says hike power charges, rail fares

New Delhi: Suggesting big-ticket reforms to attract investment in the infrastructure sector, a high-level committee on Wednesday recommended increasing electricity charges and rail fares.

The high-level committee on financing of infrastructure, which is headed by HDFC chairman Deepak Parekh, also pitched for 100 per cent foreign direct investment (FDI) in the telecom sector. The limit at present is 74 per cent.

The panel also suggested raising prices of natural gas.

Parekh panel for hiking power charges, rail fares

The committee on financing of infrastructure, headed by Deepak Parekh, also pitched for 100 per cent FDI in the telecom sector.

These recommendations are aimed at attracting Rs 51.46 lakh crore for funding infrastructure sector during the 12th Five Year Plan (2012-17), said the report which was presented to Prime Minister Manmohan Singh earlier on Wednesday.

The government, the report said, should draw "a time-bound action plan...with a view to improving the enabling environment for private investment which is expected to finance about 47 per cent of the projected investment during the 12th Plan".

The share of private sector in infrastructure funding was 37.53 per cent during the 11th Plan, the report said, adding, the contribution of public sector is estimated to decline to 53.32 per cent in the 12th Plan from 62.47 per cent in the previous Plan.