The finance ministry, in consultation with the Prime Minister’s office, would evolve a mechanism to give an impetus to the manufacturing sector. The move was aimed at increasing the rate of growth in manufacturing to 12% from the present 9%, finance minister P Chidambaram said on Wednesday.

After an interactive session with four apex industry chambers, he said reforms in power and mining sectors, and fiscal sops for employment-intensive industrial clusters would get priority in the action plan. Chidambaram also indicated that industry chambers’ demand for fiscal concessions for investments made by corporates in ITIs would be favorably considered.

Addressing media persons, he said, the industry bodies also raised their concern over the non-availability of long-term debt. “We have set up India Infrastructure Finance Corporation. Earlier we had set up Infrastructure Development Finance Corporation. We have also taken steps to deepen and broaden the debt market,” Chidambaram said.

The minister said that the industry underlined the shortcomings in the power sector, despite the New Electricity Act. There were problems faced by IIPs, captive power generators and issues relating to wheeling of power. Other issues in power sector pertained to the payment security mechanism, state taxes on power consumption etc., he pointed out.

Chidambaram added that the industry had noted that there is shortage of skilled manpower. He pointed out that last year under the private public partnership model, 83 ITIs were set up. This year the government is targeting to set up 100.

Source: http://www.financialexpress.com/fe_full_story.php?content_id=132929