The Hindu : New infrastructure fund likely

Online edition of India's National Newspaper
Monday, May 26, 2003

Southern States

Southern States - Andhra Pradesh-Hyderabad

New infrastructure fund likely

By M. Rajeev

HYDERABAD May 25. The State Government is contemplating creating a separate infrastructure fund which could be used for specific purposes in infrastructure development projects even as efforts are under way to identify sources including imposing new taxes to raise the amounts required for the fund.

The recently constituted Andhra Pradesh Infrastructure Authority is actively working out the modalities for creation of the infrastructure fund, expected to be of the order of over Rs 500 crores, and the amount is expected to be raised in the form of bonds. In order to service the bonds, the authority is engaged in identifying potential departments through which funds could be mobilised in the form of a new tax - infrastructure cess.

The exercise is still in the preliminary stages and the Infrastructure Authority is likely to submit its recommendations to the Government in a couple of weeks. "It will take some more time before our consultant Crisil, the leading credit rating agency, comes out with its suggestions,'' according to the AP Infrastructure authority chairman, P.V. Rao.

Speaking to The Hindu, Mr Rao said that the authority is making efforts to identify the potential departments through which the required amounts could be mobilised.

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