Govt to spur growth with core projects- source Deccan Herald

As against impressive growth rates in the past years, the GDP grew by just 6.5 per cent last fiscal, the lowest in nine years.

At the meeting, the Prime Minister made no announcement about any major next generation reform policy initiatives that the government might intend to take, though there have been speculations about it.

Foreign investors in particular have been pressing for next generation reforms to revive investments and spur growth. But, he said achieving the stiff investment targets during the fiscal year in the six sectors will be "key to success and will inspire confidence about the overall economic growth rate."It is "imperative to take measures to give a boost to our economy. There is a need to revive business and investor sentiment," the prime minister told the meeting. He emphasised the urgent need to take effective measures to "reverse the situation and revive India's growth story.

These will turnaround India and take it back to a growth path of 9 per cent."Among others, the meeting approved to award 9,500 km of roads for construction this year in the place of 7,000 km target set earlier. Similarly, in railways, shipping and more crucial aviation sectors, the targets have been enhanced in order to meet the government's reform commitment.

Infrastructure sectorIndia requires $1 trillion for the development of the infrastructure sector during the 12th Plan (2012-17) of which it expects 50 per cent from private sector. In railways, it was decided to award contracts on the elevated rail corridor in Mumbai among other things.

In shipping, it was decided to award work for two new major public-private partnership port projects, in addition to capacity addition targets which are three times the targets for the last year.

In civil aviation, work would be awarded on three greenfield airports in Navi Mumbai, Goa and Kannur and new international airports at Lucknow, Varanasi, Coimbatore, Trichy and Gaya. Contracts worth almost Rs 50,000 crore will be awarded in the port sector this year.