Nath seeks issue of global bonds to fund road projects

Let the finance minister examine this issue,we will come out with something for the NRIs (Non Resident Indians) and PIOs (Person of India Origin), he said,stressing that India is not only a stable investment destination but a very attractive investment destination as the economy grew at a time when most economies of the world were contracting. The bond issue will create a shelf of sequestered funds for the road ministry ar a time when the government has identified the country needs $500 billion to finance its infrastructure gap.

However,Mukherjee did not commit himself to this proposal of floating infrastructure bonds,as this requires detailed examination and Parliamentary nod. That does not mean that I am agreeing to that proposal,dont take it as a commitment.

Overseas Indian affairs minister Vayalar Ravi also said that his ministry would move a proposal to the finance ministry to allow NRIs to invest in infrastructure bonds. This will give an opportunity to lakhs of overseas Indians to participate in Indias growth process, he said. He said the idea mooted by Nath needs to be taken forward as it has been a long-standing demand of the overseas Indian community.

Kamal Nath said that in order to achieve a target of building 7,000 km of roads every year an investment of $50 billion is required. Nath is tapping all resources including multi-lateral funding,public private participation and foreign investments. To achieve this,we need work on 20,000 km in progress. So,20,000 km of work in progress means $50 billion worth of investment, he said asserting that roads can create wealth.