Discussing prospects: Mr A.K. Misra, Executive Director of Tata Projects, Mr J.P. Nayak, Director and President of L&T, and Mr Y. Harish Chandra Prasad, Chairman of CII (AP Chapter), at the seminar on Infrastructure Development on Roads in Hyderabad on Saturday.

Hyderabad, July 18 Foreign direct investment (FDI) will flow into infrastructure, particularly roads, if the project finance is made attractive ensuring good returns, Mr J. P. Nayak, President, Operations, Larsen & Toubro, has said.

The new Government has initiated a series of measures to attract investments in the road sector that has a multiplier effect on the economy, providing employment. This could potentially turn around the economy, he said.

Government initiatives include 100 per cent FDI, enhancement of overseas borrowing limit to $500 million and IT exemptions. However, the role of Government and private players needs to be better defined, he felt.

Speaking at a meet on ‘Infrastructure Development on Roads’ hosted by the Confederation of Indian Industry, Mr Nayak said the move to establish a Road Finance Corporation for easy access to funds, along the lines of Power Finance Corporation, and the re-finance option for infrastructure with the India Infrastructure Finance Corporation Ltd., will help the sector gain momentum.

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Posted by rjorr at July 19, 2009 12:45 PM