25,000 MW POWER WOULD BE ADDED IN 15 YEARS- ASHWANI KUMAR

India will add 25,000 MW of power generation capacity in 15 years time from now as against a meager 3500 MW added in the last 6o years. Power generation to this extent would be enough to wipe out the deficit to a great extent and can give a critical push to the .economic activities.

This was stated by Dr Ashwani Kumar, Minister of State for Industry, while addressing the participants at the PHD Chamber’s International Tax Conference, held in Delhi today. The Minister said that other than the physical infrastructure, which would get a big boost in the coming years, India’s growth objectives are going to be driven by the emergence of a strong knowledge economy. In the next 10 years, the Government is going to spend over US 550 billion only on infrastructure. Of that, US$ 360 billion will be committed for building roads, highways, telecom etc.

“More exciting would be the growth in the knowledge and technology segments against the backdrop of crating 1500 new universities, a large number of centres of excellence, creation of more number of IITs and up-gradation of existing ones,” the Minister said , adding that “the Government, which has crafted a well-knit strategy to roll out plans for knowledge revolution under the direct supervision of the Prime Minister.” He also underlined the need for creating a strong infrastructure for R&D, which is presently very inadequate both at the public and private sector. There is also a plan in the pipeline to enhance the scientific temper among the students since there is a visible drop in the number of PHDs awarded in science subjects.

India Inc, the Minister said, was in an unprecedented trajectory that its outbound investment had leaped several fold. Indian industry in 2007 fiscal had invested US$ 28.9 billion abroad as against US $ 4.3 billion in 2005 and US$ 0.7 billion a few decades back. “This is a true barometer of globalization and was made possible due to huge foreign exchange surpluses that the country had accumulated on account of a variety reasons especially quantum jump in the services exports,” he said. This calls for a pragmatic review of the tax, legal and corporate laws to dovetail with the increasing aspersions of the India inc, he added.

While globalization is a reality that one has to accept and gear up to face it, preponderance of poverty, destitution, disease and malnutrition would apply jolts to the liberalization process, Dr Kumar observed. Inclusive growth is the most preferred route. “We have strong delivery systems to distribute wealth and prosperity. That is a societal requirement for harmony and peace, which are critical for sustained growth,” he added.

Responding to a question from Mr Sanjay Bhatia, President, PHD Chamber, regarding the need for labor reforms, Dr Kumar said that a coalition government has to compromise on many issues. Therefore, he could not foresee any immediate steps to bring about labor reforms, though he believed that such steps would create more employment..

Addressing the delegates, Mr Santosh Bagrodia, Member, Rajya Sabha and Chairman, Parliamentary Standing Committee on Industry said that the tax reforms that have been carried out by the Government had enhanced the credibility of India as a major destination for investment. He also underlined the need for crafting tax and other fiscal policies to promote SME sector, which is key to promote employment and growth..

The country specific presentations on investment opportunities included that from the Netherlands, Singapore, Maldives and India. Tax regimes in these countries were explained and Indian industry was invited to take advantage of the tax breaks and liberal withholding tax regimes.