"I need at least that much time for preparation before allowing them to start operations," he said. Rangachary said insurance companies will be in a position to fund the infrastructure projects involving long-term investments. As per the new bill, it is not necessary for the Indian companies to seek foreign equity. If foreign capital is required, the Indian company can raise about 26 per cent of the capital from foreign institutions while the remaining shall be put in by the Indian promoter, he said.

Rangachary is in Hyderabad in connection with the international conference organised by CII. Speaking on "Preparing corporates for the new order" at the India Finance Forum 2000, Rangachary opined that the Indian corporates have to rework their priorities and include social development as vital requirement for economic growth of the country besides their main objective of profit maximisation. According to Rangachary, till now the main focus of corporates had been on creating wealth for shareholders. But now the time had come managements to integrate profit making with social obligation.

A majority of Indian corporates are being managed by the private entrepreneurs who have low stakes in the company while the public sector companies such as UTI, LIC etc maintain holdings.