Attracting private sector investments in public sector projects can generate the money to fill up the fiscal gap, Niti Aayog CEO Amitabh Kant said on Wednesday.
Kant was speaking at the 'Ministerial Conclave — the Growth Debate'.
"Airports, roads, should be privatised. In fact, we should go for a reverse BOT (build operate transfer) process if needed. The money coming from it should be used to fill the fiscal gap," Kant said, adding that the Union Cabinet has opened up railways and other government areas for the private sector.
"It is important to revive the consumer demand for the private sector to start investing once again. It is for the same reason that the government is investing in projects like affordable housing," he said. He added that the government should soon act upon Niti Aayog's recommendations of disinvestment of PSUs.
Emphasising the Narendra Modi's government's economic policies in the last three years, Kant said the country's economic fundamentals are strong even though there are developmental challenges. He asked the country to be patient as the current situation is only a result of those challenges.
"What is important is that the government has been responsive and has responded immediately to challenges," he said, referring to the recent GST changes.
Taking about banking reforms, he said public sector banks needs recapitalisation and a professional management to compete with private banks.
Kant also lauded the start-up initiative saying that 40 per cent of IIT Mumbai students are now starting their own businesses or joining the start-up movement, instead of taking up a job.
Talking about the gloom over India's economic growth, Kant said India is an oasis of growth and there has been a 62 per cent increase in FDI.
Acknowledging that the private sector investment has gone down, he said there was a lot of private sector investment three years ago and a lot many had taken loans which had turned to NPAs.
EXPERT SPEAKS
- Airports, roads, should be privatised and if need be the government should go for a reverse build operate transfer to help fill the fiscal gap.
- It is important to revive the consumer demand for private sector to start investing once again.
