Need to iron out project implementation issues
As the economic growth has hit rough patch, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the immediate priority should be to get the many stalled projects going.
Admitting that the domestic economy faces many a headwind, including many internal issues, Ahluwalia said, "in the near-term, we should concentrate on implementation problems being faced by infrastructure projects.”
Many mega projects such as the Rs51,000-crore Posco Steel project in Orissa, and other multi-billion dollar projects by the Tatas, ArcelorMittal, Vedanta and others in Orissa and Jharkhand and elsewhere have been stalled for want of environmental clearances on one hand and many power projects are yet to take off for want of fuel linkages.
"While the macroeconomic policy decisions will be taken in the Budget, we should sort out project implementation issues so that there will be some kind of momentum," said Ahluwalia.
He also noted that the present crisis, emanating not only from external factors but also from internal problems, poses a great opportunity for the economy as our problems are short term and if we solve these issues we can encash this opportunity.
"It is important to recognise that our problems are not only external, but are also internal. Also, the external problems this time are quite different. This crisis (debt crisis in the Eurozone) is much deeper as it is now estimated that the Eurozone will grow at 0 per cent till 2012," he said.
On the forthcoming Q3 numbers, he said while Q2 was not good, one does not know what will be the growth rate in Q3. However, he noted that as a silver-lining, inflation is on its way down and RBI has indicated a rate pause.