Proposed Solution

The Government of India should immediately form additional Infrastructure and Services Companies on the basis of the Rural Electrification Corporation, NABARD, National Highways Corporation etc to issue long term (5-15 years), tax free bonds for Infrastructure works such as, for Ports, Coastal Development, Air / Rail and other Surface Transport, Schools and Hospitals, Urban Development (especially low cost housing) as increasing shift of the ever growing population from rural to urban is inevitable and inescapable. Banks and even designated NBFCs may also, be allowed to issue such Bonds under proper regulatory guidelines. Investments in unproductive assets such as properties should be discouraged so as to avoid asset bubbles.

Such a scheme is different from a Moratorium scheme which only allows suspension of payments that are due for a specified period. It is also, different from an Indemnity scheme (eg: VDIS) which provides exemption from penalties or liabilities incurred.

Here we are considering a proposal to meet the above objective by allowing all the Indians who had earlier taken money out of India and are now willing to bring it back to India’s benefit (it may also, include NRI’s and perhaps even any other non Criminal source etc). If they also, stand to gain from this Proposal, so be it – as long as the Country gains more.

It should allow a no-questions asked investment by Indian Nationals / NRIs and Indian Corporates through Tax Free Bonds for 5 / 7 / 10 -20 Years period bearing 3 / 5 / 7 percent interest respectively with a no questions asked guarantee on return thereafter. This scheme could be kept open for anything from 1 to 3 or more years depending on our ability to absorb the inflow. The matter of allowing Foreigners or Foreign Institutions / Corporate bodies, to also, invest in such Corporations, if there is any perceived advantage by doing so especially in terms of Skills or Technologies or in the speed of setting up and execution, can be considered separately as long as their investments are also, locked in for the periods as specified and the sources of the Funds are verified as clean.

Suggestions for Projects and Methodology for execution and ensuring adequate inflow of Funds:

It is the most urgent and essential need of the day to take up massive and very extensive Infrastructure Projects all across the Country to enable us to better grow our Economy and to also, put us in a position to meet the Employment needs of our growing working age population.

What sort of Projects? We should Dream Big and Plan and Work to realize it all!

1. Highways and Rural Connectivity Roads.
2. Power Projects and Rural Electrification especially across the lower Himalayas and the North- -East States.
3. Primary and Secondary Schools and Primary Health Centres / Family Welfare Centres / Tier II Town Government Hospitals. (See “Education in the 21st Century” and also, “Wealth, Market Economics & Entrepreneurship – The Case for,”)
4. Mass Rapid Transport Systems in all Metros. New Railway lines connecting various Sea Ports (both existing and new) to Cities across the Country
5. Railway Corridors (Delhi-Mumbai, Delhi – Kolkata, Hyderabad – Visakhapatnam) and Rail links to the North East and J & K and Ladakh.
6. New Ports, Marinas and Harbours all along our Coastline and Rail and Road connectivity from them to the nearest Large Cities.
7. Construction of many more planned Cities across India to act as Nodal Development Centres and to control the Urbanization of now Rural India in a proper manner. (See “Urbanization”)
8. Development of inland waterways along with the linking of Rivers (See “The Grand Irrigation and Power System – GIPS”).
9. Construction of Helipads and Air Fields especially in Central, North East India and the Ladakh region.
10. Development of Andaman & Nicobar, and Laccadive Islands for Tourism (Also, for Scientific Research and Military Bases)
11. Archaeological Department to upgrade all Museums, digitize all Ancient Documents, renovate and maintain all historic buildings and monuments. This will also, lead to increased Tourism and thus Employment of Artisans and semi skilled and unskilled persons in great numbers.
12. R & D for Ayurvedic, Siddha and Unani Medical Systems to scientifically identify and propagate their benefits.
13. Low cost housing projects (preferably prefabricated and factory built)
14. Massive Environmental Remediation Projects to rectify earlier Environmental damage.
15. Agricultural Research for improvement of Productivity, reduction in the use of Chemical based Fertilizers, Weedicides and Pesticides etc… Soil, Rivers, Underground Aquifers and Coastal waters Remediation. (See – Agricultural Reforms – “Krishi Jagruti” Scheme Own your Farm as a Shareholder)
16. Development of wildlife sanctuaries and strengthening animal care and anti-poaching measures therein.
17. R & D in all disciplines of Science and Technology.
18. Identifying, sourcing, scanning and collating all ancient manuscripts to better analyze and learn therefrom.

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