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. :-)
