December 22, 2010 1:52 PM

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FM calls for harnessing benefits of PPP for providing services to weaker sections

Finance Minister Mr. Pranab Mukherjee today called for harnessing the benefits of public private Private Public Partnership for providing services to weaker sections of society. Addressing a conclave on Private Public Partnership in New Delhi today, Mr. Mukherjee asserted that those who can afford to pay must be made to pay but the weaker sections have to be given special attention. He said that the target for the Private Public Partnership investment in the current plan is 1 trillion dollars and 50 percent of it has to come from Private sector. Mr. Mukherjee launched a capacity building in initiative to improve decision making process in this area. Addressing the function the Deputy Chairman of the Planning Commission Montek Singh Ahluwalia made a strong case for encouraging Private Public Partnership model. He asserted that this model can play an important role in the development of infrastructure sector in the country. Mr. Montek Singh Ahluwalia said that desired growth rate can not be achieved with out investments in this vital sector. He said, there is a need to experiment in social sector particularly in health and education. Mr. Ahluwalia urged the Finance Ministry to examine the possibility of setting up Infrastructure Debt Funds (IDFs) to fund core sector development activities. The Planning Commission Deputy Chairman also made out a case for exempting debt funds from payment of withholding tax, as the levy would make their operation unviable. Withholding tax is the amount that is required to be deducted by an entity while paying interest on borrowings.

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