How the communist feel that, Invest amount is safe, only because Govt. has the limitation gives the security.
Instead, PF Corpus fund should be invested, begining from Small % (Percentage)of Corpus fund. Than analysis, the investments portfolio v/s returns. If results are 50% satisfied, than continue, otherwise, review the policy.
WHAT COMMUNIST PARTY IS DOING,TO CONTROL THE INFLATION. JUST THEY MUM NOW, AFTER SOMETIME, THEY GIVE PRESS STATEMENT FOR THE PUBLIC CONSUMPTION. ahhhh!
Investing in INFRA projects (mainly Power & Transportation) will help the countries growth .... but considering the pathetic way in which projects are executed ex., low quality material ,corruption & delays, a whole new process has to devised so the money is well utilized.
RE:Good Idea ....... but what about corruption?
by Zaki Ansari on Feb 28, 2007 12:07 PM Permalink
I agree, just ensuring tight, well thought-out processes will save us enormous amounts of expenditure. This should be priority #1
Bad idea. I have more faith in the stock market that in government's infrastructure funds. The retirement benefits of so many government employees will be eroded away by corruption. The employees who will suffer may or may not be corrupt. We need policies that will encourage honesty at all levels.
When FM was in UK last week, read reports of he telling to UK businessmen that India need $300bn for its Infrastructure development in next 3 years. $200bn will be raised by Indian govt.
Now, RBI has denied permission to use Foreign reserves to use for this cause. Then the question is, from where government will bring this much big money?
And today in India Infrastructure development is the most critical issue, becuase urban population is increasing. And if cities do not have proper infrastructure one can expect many kinds of calamities in near future.
Pure-sufficient water, Continuous electricity, clear air, better traffic are the very basic needs to every city. If we fail to address these issues, we are bound to pay huge cost for it.
Now, I am not sure how govt utilizes the money of EPF. Rs. 3 trillion is quite a lot money, and if it is sitting idle, it is going to be a burden on govt to pay even 6 % of interest rate. (One can calculate 8 % of 3 trillion rupees. :-) )
So as suggested by left govt "cautiosly" check the option of using the EPF money for development. Infrastructure bonds, Infrastructure company shares are good options to start with.
Or Govt can start a totally new company with public-private partnership, dedicated for Infrastrtcure related activities. Many private giants like TATA, Riliance may show interest.
If we do not develop infrastructure, we expose ourselves to the risk of very sub-standard urban life. And if we use EPF money for Infrastructure development, we expose our hard earned money to risk corruption, unefficiency etc.
I guess, choosing later is more wise becuase there is a risk everywhere. But if we choose later option, there are chances that our risk will be paid off well. However, noone is sure about it. :-)
RE:Don't reduce interest rate
by hira ticku on Feb 08, 2007 03:48 PM Permalink
The P F amount is hard earned amount while in service & saved for the old age livelihood so it should be utilised there were it remains secured so interest rate should not be reduced.
Maintenance cost will be high and much higher than the risk of stock market at times. Also it should be able to generate revenues. Say a flyover or a bridge is built with the funds money a toll tax should be Levied and we have to pay to raise the cost Incurred. At present what % of bridges or flyovers in our country charges toll tax ?
