I guess this is an excllent idea.. Considering the fact that the EPF proceeds are huge and that investments into stock markets is a risky investment, the idea of diverting the funds to infrastructure devlopment will do a world of good. There are two reasons as to why this will succeed.
1. infra development in India lacks funds ans we are still way behind other developed and developing countries in terms of infra growth. The PF proceeds will bring the added impetus to this growth. This will ensure that the Govt does not think about financing details for such a development but instead divert its thinksing as to how to make such a developement more profitable.
2. Investing in infra projects would ensure that the Government earns more than what it pays. Since viability of an infrastructure project is only possible when Net Present Value or NPV>prevailing Interest Rates. Thus the there wld b no pressure on the Govt to pay the mimimum interest on the EPF Suurplus...
If this idea is implemented, it would not only solve 2 problems in ine go but would also probably change the face of the Country.
