Deepak Parekh committee calls for legislation to revamp regulatory framework for infrastructure

Deepak Parekh headed high-level panel on infra financing has pitched for an overarching legislation for overhaul of regulatory framework in infrastructure, clarity on taxation issues such as anti-tax avoidance rules GAAR, expeditious land acquisition and faster environmental clearance.

It has also called for increase in foreign direct investment in telecom to 100% from the current 74% and privatisation of state-owned monopolies.

The panel that submitted its report to Prime Minister Manmohan Singh on Wednesday has projected an investment of Rs 51.46 lakh crore in the 12th Plan period, pegging the private sector share in this investment at very 47%.

"Business as usual approach is unlikely to deliver this level of investment," the panel said warning that in the absence of these measures, not only will future investments be constrained but even pose risk to existing ones.

The panel wants the government to pursue reforms in various sectors including railways, flagging it for being well behind the curve. It has suggested public private partnership (PPP) initiatives for railways to mobilise private investment including in modernisation of stations, elevated suburban corridors in Mumbai, development of new freight corridors, high speed rail projects and manufacturing of diesel and electric engines, coaches and wagons.

It has also said that a time bound action plan be put in place to implement its recommendations to create an enabling environment for private sector.

Telecom - Increase FDI to 100%, allow external commercial borrowings (ECB), remove regulatory uncertainties related to allocation, pricing and sharing of the spectrum allotted in the past

Power - Rationalise tariffs, revise standard bid documents, allow import of coal through STC/MMTC or directly through power producers,

Roads - Set up expressway authority, expedite institutional restructuring of NHAI,

Railway - Rationalisation of passenger fares, encourage PPPs in various sectors of railways

Airports - Expedite award of green field airport in Navi Mumbai, Goa, Kannaur and Chandigarh in current year

Ports - Expedite awarding of projects