Date:16/01/2005 URL: http://www.thehindubusinessline.com/2005/01/16/stories/2005011601540300.htm

Back Govt pursuing forex reserves for infrastructure

Our Bureau

New Delhi , Jan. 15

THE Government is actively considering the Planning Commission's proposal to use the country's foreign exchange reserves for the development of infrastructure.

Speaking to newspersons on the sidelines of CNBC-TV 18 India Economic Conclave, Dr Montek Singh Ahluwalia, Deputy Chairman, Planning Commission, said that the proposal is being actively considered by the authorities concerned, including the RBI and Ministry of Finance, and a decision would be taken soon. "We have not dropped the idea (of using foreign exchange reserves) and are still discussing it. There is a lot of interest in the proposal and it remains a sensible idea and has to be done sensibly," he said.

Dr Singh had year suggested using $5 billion of foreign exchange, each year for the next three years to "fill critical gaps in the country's infrastructure." On the progress being made in the Government's proposed restructuring and modernisation of airports in Delhi and Mumbai, the Deputy Chairman said that the Government hopes to finalise the concession agreement for the airports by July.