Department of Economic Affairs likely to be authorised as sole agency to define 'infrastructure'

NEW DELHI: The Department of Economic Affairs could become the sole agency to define the scope of the term "infrastructure" and the proposal is likely to be cleared by the panel of Secretaries meeting on September 30.

"The panel of Secretaries is expected to clear the proposal which entails assigning the role of defining infrastructure to a singular agency, i.e. DEA. It would help bring in more consistency and clarity," a Finance Ministry official told PTI.

The government plans to step up investment in the infrastructure sector to USD 1 trillion or Rs 45,00,000 crore during the 12th five-year Plan (2012-17).

At present, infrastructure has various definitions assigned by different agencies, which include regulators like the Reserve Bank ( RBI), Insurance Regulatory and Development Authority (IRDA), World Bank and Income Tax department, among others.

The RBI has a much wider definition of infrastructure that covers hospitals and education. It has categorised the term into two parts: for the purpose of infrastructure lending and for raising external commercial borrowings (ECBs).

According to the scope of Section 80-IA of Income Tax, infrastructure covers electricity, water supply, sewerage, telecom, roads & bridges, ports, airports, railways, irrigation, storage (at ports) and industrial parks/SEZ.

The World Bank treats power, water supply, sewerage, communication, roads & bridges, ports, airports, railways, housing, urban services, oil/gas production and mining sectors as infrastructure.