Stress on infrastructure projects

By Our Special Correspondent

NEW DELHI, SEPT. 4. A Cabinet Committee on Economic Strategy to provide stimulus to the economy and a Group of Ministers to work out reforms in labour laws were proposed to be set up after a marathon meeting the Prime Minister had with his Ministerial colleagues heading economic Ministries today.

Sources in the Government indicated that the basic objective of the meeting was to identify projects which could be launched almost immediately, that is within a time-frame of one to one-and-a-half months. Once the indications of a slowdown in the economy became evident, the Government has been planning large- scale public investment in major infrastructure projects in order to boost demand. Consequently, programmes of road construction, power projects, port development, airport construction, etc., have been under consideration so that there could be a boost in demand for cement, steel and the capital goods sector

In fact, the Union Ministry of Power has already placed orders worth Rs.6,000 crores for creation of power generating capacity of 1,500 MW and more are in the pipeline. Similarly, the Railways have made special allocation for construction of bridges and strengthening of rail tracks which would lead to more demand for steel.

Money has also been allocated for road construction, both in case of national highways and for rural roads. While a sum of Rs. 2,500 crores is being made available for rural roads, a total of Rs 15,000 crores has been provided for re-building and strengthening of national highways. Early clearance for construction of world-class international airports are also on the anvil.

Today's meeting was attended, among others, by the Finance Minister, Mr. Yashwant Sinha, the Power Minister, Mr. Suresh Prabhu, the Rural Development Minister, Mr. Venkaiah Naidu, the Agriculture Minister, Mr. Ajit Singh, the Disinvestment Minister, Mr. Arun Shourie, and the Company Affairs Minister, Mr. Arun Jaitley.

Though Mr. Advani is not in charge of any economic ministry, his involvement in economic management is not a new phenomenon. He was closely associated with the budget making exercise earlier this year and he was also present throughout the entire last week's NDC meeting. The Home Minister has also been closely monitoring the economic development of the north-eastern region, although Mr. Arun Shourie has now been given the additional responsibility of coordinating matters pertaining to the development of the north-eastern region.

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Section  : National
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