Date:06/12/2004 URL: http://www.thehindubusinessline.com/2004/12/06/stories/2004120602180100.htm

Back Ratan Tata to head investment panel

Our Bureau

The Finance Minister, Mr P. Chidambaram, with Mr Klaus Schwab, Founder and Executive Chairman, World Economic Forum, at the India Economic Summit in the Capital on Sunday. — Ramesh Sharma

New Delhi , Dec. 5

MR Ratan Tata will head the three-member Investment Commission constituted by the UPA Government to woo investments from domestic and foreign business. The other members are the Chairman of ICICI-OneSource, Mr Ashok Ganguly, and the HDFC Chairman, Mr Deepak Parekh.

There will be no Government representation.

Announcing the three members of the Investment Commission in his inaugural address at the India Economic Summit 2004, the Finance Minister, Mr P. Chidambaram, said the commission would have the authority of the Government to engage, discuss with and invite domestic and foreign business to invest in India.

"They (Investment Commission) will be Government's voice. They will listen to you and engage you and advice the Government on what to do. I am throwing the ball into the court of Indian business," said Mr Chidambaram.

Mr Chidambaram pointed out that the Prime Minister, Dr Manmohan Singh, had announced that India needs investments of over $150 billion over the next 10 years. He also used the occasion to hard sell the country as an investment destination.

The Finance Minister identified infrastructure as a priority area for investment. This includes telecom, power, petroleum, airports and seaports.

For instance, the telecom sector, Mr Chidambaram said, requires an investment of $40 billion, the road sector needs $13 billion for developing 13,146 km of roads, while the power sector needs $12 billion investment annually for the next 10-15 years.

He added that the country required at least six world-class airports and 20 seaports along the coastline. "We want to triple the steel capacity and explore petroleum reserves," he said.

Financial services comprising banking, insurance and pension was also identified as an important sector.

Commenting on the large trade deficit, Mr Chidambaram said it would actually benefit the country.

No eyebrows have been raised over the $12-billion trade deficit. While exports are growing at 24 per cent in dollar terms, imports are growing at 37 per cent.

"When our trade with China expands and the free-trade agreements with Thailand and ASEAN roll out to full potential, India will emerge as a big trading country. Trade is a great driver of growth," he said.