Page 6 - IACC Newsletter March-April 2014 Issue 03

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From the Secretary General’s Desk
Dear Members,
An investment of over $ 1 trillion is needed for toning up the Indian infrastructure sector in the next ten years or so. The
resource requirement will be much higher if we are to go by the importance assigne d by the new dispensation for this
sector. This is reflected in some ambitious announcements likespeedy introduction of bullet trains, creating four transport
corridors, developing urban transport like metros, and light rail, smart cities, and the unprece dented focus on power
generation.
Domestic resource constraints are many. For instance, huge resources are being planned for education, health, river
cleaning, cleanliness drive, Jan Dhaan Yojana, etc. Therefore, it is necessary that we seek investments from abroad.
Infrastructure proposals should be attractive, gestation period low and return on capital adequate tomotivate investors to
bring in the capital. Going by the past trend, FDI in India ismostly directed to the services sector, followed by cons truction,
and the rest is miniscule spread across various sectors. We have to change this trend. Infrastructure should be a vertical
that fits the bill for foreign investors.
In the past, many knee jerk exercises have been carried out to attract investment in infrastructure, such as sovereign
guarantee of minimum returns on investment in the power sector, opening up of various segments like construction,
township for foreign investor participation, relaxation of landholding rights for certain investments, etc. But the results are
not adequate, going by the flow of investments into the segment.
Against this backdrop, IACC’s forthcoming Infrastructure Summit assumes importance. A delegation from the State of
Texas led by Ed Emmett, the top elected official of Harris County and an internationally renowned authority on
transportation and logistics, Mr. Tom Kornegay, the longest serving Executive Director of the Port of Houston Authority,
Texas State Senator Rodney Ellis and IACCGHPresident and Executive Directorwill be attending the summit. Importantly,
Mr. Nitin Gadkari, Union Minister for Urban Affairs is the Chief Guest for this Summit. We expect both Indian and US
Stakeholders to participate and ferret out the policy framework that is needed for catalyzing investment into the sector.
IACC will host this delegation from the State of Texas, US, led by Ed Emmett in Mumbai as well.
In December, IACC will host another delegation led by Mr. Wilfred Muskens, Deputy Secretary, Office of International
Business Development, Commonwealth of Pennsylvania, in Mumbai, Ahmedabad, Bangalore, and Pune.
I invite you to read this issue of the Newsletter, and pay particular attention to our list of upcoming events. We have an
interesting line-up of events in sectors such as Infrastructure, International Trade Development, Finance, Taxation &
Corporate Affairs, CSR, and Agriculture. We look forward to your active participation in all our initiatives pan India. As
always, your suggestions and comments are welcome.
With regards, Atul Vyas,
Acting Secretary General