The Hindu : Business : Nuclear deal to catalyse Rs. 2 lakh crore investment in power, says Assocham

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Nuclear deal to catalyse Rs. 2 lakh crore investment in power, says Assocham

Special Correspondent

40 firms have already started negotiations with companies abroad

Chamber to submit a blueprint to the Prime Minister
Suggests 20-point strategy for 15% industry growth

— PHOTO: R. V. MOORTHY

NEW VISTAS: Venugopal Dhoot (left), Chairman, Videocon Industries and D. S. Rawat, Assocham Secretary General, releasing a Assocham study on ‘Indian manufacturing: aiming to achieve 15 % sustainable growth’ , in New Delhi on Monday.

NEW DELHI: Close on the heels of India getting the nod from the Nuclear Suppliers Group (NSG) and paving the way for a civil nuclear agreement with the U.S., 40 domestic firms have already started negotiations with companies abroad for nuclear power generation entailing a minimum investment of Rs. 2 lakh crore within 15 years.

Revealing this while releasing an Assocham study on ‘Indian manufacturing: aiming to achieve 15 per cent sustainable growth’ here on Monday, the apex chamber’s immediate past-President and Videocon Group Chairman and Managing Director, Venugopal N. Dhoot, said that among the leading corporates negotiating joint venture projects in nuclear power were the Tatas, Jindal Power and his own Videcon group.

“We have already asked Prime Minister Manmohan Singh to amend the legislations regarding nuclear power to facilitate the entry of private sector in the generation of nuclear power,” he said.

Mr. Dhoot pointed out that in the next 15 years, nuclear power generation would be to the extent of 40,000 MW and the cost of power through this route would also be much cheaper.

The chamber, he said, would be submitting a detailed blueprint to the Prime Minister in this regard shortly.

The chamber’s study on Indian manufacturing has stressed on adoption of a 20-point strategy for achieving 15 per cent growth in the sector with focussed attention to improvement in logistics, port operations, trade policy approach, relaxation in borrowing costs and tax exemptions for industry.

Among the other recommendations of the study are: reforms in the infrastructure sector, diversification in the existing export structure, emphasis on research and development (R&D), partnership between policy-makers and captains of domestic industry, labour law reforms, sops for engineering sector, and special concessions for farm goods as well as processing of perishable products and reliable power supply.

The study has stressed the need for the Government’s focussed attention on the hitherto stalled reforms and removal of uncompetitive barriers. According to Mr. Dhoot, such barriers are crippling growth and development prospects of various industrial groups.

Turning to the country’s infrastructure, the study has pointed out that action is required on a priority basis as the lack of basic facilities — be it roads, ports, cold storage or processing units — are bottlenecks in the way of development of industrial units.

Port operations and procedures also need reforms by simplifying the number of procedures and automating the processes with a view to bringing down customs clearance time.

Likewise, the future trade policies should aim at creating an enabling business environment to promote large-scale investments for expanding manufacturing capabilities, improving competitiveness and increasing higher value-added exports,” the study said.

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