The proposed regulator should help in generating large-scale investments to meet the pressing needs of the infrastructure sector and also address financial viability of specific sectors.
In fact when the Prime Ministers committee on infrastructure had been formulated in August 2004, it had earmarked the need for a regulator. Subsequently, it was decided that the Planning Commission would be finalising a draft paper on the proposed regulator by December 31, 2004.
However, till date nothing has happened. Though sources say that with CII presenting its recommendations on the regulator to the plan panel, the panel may now prepare the draft paper on the regulator by next month.
Chairman of CIIs national committee on infrastructure and chairman of feedback ventures, Vinayak Chaterji told FE that a common regulator for the entire infrastructure sector would help in streamlining it.
Accountability and transparency would also be ensured, if CIIs suggestion regarding a tribunal under the regulator is implemented upon, he said.
In a presentation to the Planning Commission, the industry body said the proposed Infrastructure Regulatory Framework Act 2006 should empower the regulator to perform, ensure accountability and secure transparency.
The regulators functions should not overlap with those of the Competition Commission of India (CCI), the CII said.
Separate regulation fund for each sectoral regulators should be set up and the funds should be used by regulators for administrative expenses.