Players in the infrastructure sector urge government to simplify approval process for key projects especially in the road, mining and port segments. Highway developers suggest single-window clearance for mega road projects in order to ensure timely implementation and avoid cost overrun.
Besides simplification of approval process, companies also seek easier funding avenues for infrastructure sector. Funding gap is the most important issue in financing infrastructure. Currently, most of the infrastructure financing happens through the commercial banks. Corporate or municipal bond markets are at a very nascent stage comparing the equity or currency markets.
The government should try to target the deployment of domestic savings directly to the infrastructure. The government can introduce a separate investment limit of Rs 1 lakh for tax saving infrastructure bonds.
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