Prime Minister Manmohan Singh: global economy

Global economy has affected us: Prime Minister Manmohan Singh 

NEW DELHI: Prime Minister Manmohan Singh acknowledged that India was at a "critical juncture", even though he ascribed the slowdown to external factors. "After achieving remarkably high growth rates over the past eight years and emerging as the second-fastest growing economy in the world, we are now running into more turbulent weather. The global economy is passing through difficult times. This has affected us," the PM said.

The meeting on infrastructure , which was attended by ministers of power, coal, aviation, road and shipping, saw the government chalking out a job card for the year that includes awarding airport contracts in Navi Mumbai and Goa, as well as and port projects worth Rs 20,000 crore in Andhra Pradesh and West Bengal. The much-touted Bullet Train from Mumbai to Ahmedabad is also on the "to do" list, though so far only a pre-feasibility report has been prepared. In addition, an aviation hub policy, with Delhi and Chennai to act as major nodes for airlines, is on the anvil.
Railways minister Mukul Roy did not attend the huddle, and was represented by chairman of Railway Board, Vinay Mittal.

The other notable absence was that of finance minister Pranab Mukherjee who, according to sources close to him, had informed the PM of his inability to make it.

With the government facing fiscal constraints, the focus seemed to be on getting private investors as the PM urged ministers to expedite clearances, a common grouse among investors for held up projects. He is learnt to have told his team that to take the economy back to 9% growth rates, the share of private investment in infrastructure needs to be stepped up.

"In these difficult times, we must do everything possible to revive business and investor sentiment. We must work to create an atmosphere which is conducive to investment and to removing any bottlenecks that may be hurting the growth process. We as a government are committed to taking the necessary measures to reverse the present situation and revive and revitalize India's growth story. We are aware that we have to act on multiple fronts to achieve this and we will indeed do all that is required of us," Singh said.

Deputy chairman of Planning Commission, Montek Singh Ahluwalia, said that getting investments will also serve the purpose of rebutting the perception of slowdown. "This is a clear indication to the external world of the push being given to the achievement of targets in important infrastructure sectors so that it inspires confidence about the overall economic growth rate," an official release quoted Ahluwalia as saying.

MEGA PUSH

ROADS

Highway stretches of 9,500 km to be awarded in 2012-13 , with another 4,360 km to be taken up for maintenance

POWER

Capacity addition target fixed at 18,000 MW, including 2,000 MW from Kudankulam Generation projected to rise 6.2% to 930 billion units

COAL


Coal India's despatches estimated to rise 8.8%, with those for power plants projected to grow 11%

PORTS

Two new major port projects to be taken up in Andhra Pradesh and West Bengal, involving over 20,000 crore investment In all, work on 42 projects to be taken up involving investment of 14,500 crore and a capacity of 244 MTPA

CIVIL AVIATION

Greenfield airports in Navi Mumbai, Goa and Kannur to be awarded; Lucknow, Varanasi, Coimbatore, Trichy and Gaya airports may be given international status Airport Authority of India to start work on 2,100 crore Itanagar airport Delhi, Chennai to turn into airline hubs, policy to be announced By July-end 2012, additional PPP-based airport projects to be finalised , including 10-12 greenfield ones. Projects to be awarded later this year

RAILWAYS

Proposal for Mumbai-Ahmedabad Bullet Train project to be finalised 20,000 crore Mumbai elevated corridor to be awarded PPP-based projects on eastern freight corridor to be awarded; Madhepura, Marhowra loco units to be awarded