Budget 2015: Commerce Ministry wants Rs 100 crore for Project Development Fund

NEW DELHI: The Commerce Ministry has sought setting up of a Project Development Fund with an initial corpus of Rs 100 crore to boost project exports from the country.

In its Budget suggestions, the commerce ministry has urged Finance Minister Arun Jaitley to look into the the long pending demand of the fund.

"This a long pending demand of the ministry. We are expecting that the Finance Minister would announce this in the forthcoming Budget," a senior commerce ministry official said.

The fund would help in enhancing project exports mainly in CLMV countries (Combodia, Laos, Myanmar and Vietnam), the official said adding "huge investment opportunities exists in these regions in sectors such as spinning and other textile related activities".

Federation of Indian Export Organisations ( FIEO) too said that the Project Development Fund would push India's project exports, helping both the merchandise and services sector.

Project Exports, in essence, connotes setting up of projects overseas as construction or engineering projects. It also involve the export of engineering consultancy or other goods or services desired by the project owner.

"Leading financial institutions led by EXIM bank, State Bank of India and ILFS will identify projects and take them up in a fast track manner with the active involvement of the government of those countries and business entities of India," FIEO President Rafeeq Ahmed said.

He said this would further boost ' Make in India' campaign of the government and help in establishing India as quality suppliers of goods and services.