CII suggests steps to resume growth

To bring economic growth back on track, industry body CII has suggested a slew of measures, including faster implementation of infrastructure projects and releasing payments of Rs 1,00,000 crore, that are stuck in the public system, to private companies.

The suggestions were made by a CII delegation that met C Rangarajan, chairman of Economic Advisory Council to the Prime Minister, and Pulok Chatterji, principal secretary to the Prime Minister on Tuesday, CII said.

The meeting was centered around core issues that are hurting the key infrastructure sectors fertiliser, coal, power and construction and debt restructuring the companies.

Setting up of a dedicated Infrastructure Fast Tracking Board and creation of a special purpose vehicle, that has all clearances in advance before bidding for projects, would also help in stimulating economic growth.

It also emphasised the need to expedite major infrastructure projects and investments like dedicated freight corridor, both Western and Eastern corridors.

Stating that level of corporate debt restructuring in infrastructure has increased to around Rs 17,000 crore in last few years, the CII delegation sought an urgent government intervention on issues like fuel security for power producers, environmental clearances and financial restructuring. According to CII, ‘the banking sector needs to permit ‘two time’ restructuring of infrastructure companies under balance sheet stress as a special case instead of the current one time allowance.’
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