ECB norms for core sector must be flexible: FM

Written by Agencies | Mumbai, October 29: | Updated: Oct 29 2007, 15:58pm hrs
To boost infrastructure development in the country, Finance Minister P Chidambaram on Monday said the government has identified certain areas in this regard, including relaxing of external commercial borrowing norms.

"We have identified some areas... ECB norms for infrastructure must be made flexible, pension and insurance funds should invest more in infrastructure and its guidelines have to be revisited and above all... create a broad, deep and active corporate bond market," he said at the US-India CEO Forum in Mumbai on Monday.

Chidambaram said India needs to raise investment in infrastructure from the current level of five per cent of GDP to nine per cent of GDP over the next five years.

The finance minister added that initiative for dedicated infrastructure funds were stalled due to the lack of projects.

"We are sensitising state government to make a shelf of projects for investment," he said.

Chidambaram added that there is nothing more important to sustain growth than infrastructure and expected that GDP growth in the current fiscal be close to nine per cent.