Mumbai: The different views and regulatory confusion of RBI Governor and the Plan panel on the corporate debt market issue has come out in the open. (Agencies)
Reserve Bank Governor Duvvuri Subbarao questioned the feasibility and the ability of both the government and banking system to meet the ambitious USD 1 trillion infrastructures investment for the next five years (2012-17).
Subbarao along with Plan panel deputy chairman Montek Singh Ahluwalia was attending the foundation day of the Indira Gandhi Institute of Development Research, chaired by the RBIGovernor on Monday.
Montek Singh Ahluwalia said a corporate debt market could take the burden off by pitching to meet the USD 500-billion funding gap in this regard.
However, Subbarao-- who also disagreed with the finance ministry and the Planning Commission on inflation management and fiscal deficit cuts--said, "corporate bond market looks more like an impressionist view and not exactly based on proven facts. We need to really study the issue before going ahead with (it)."
Ahluwalia, in his address on the Challenges in the 12th Plan, has underlined the imperatives for pumping USD 1 trillion into infrastructure such as highways, roads, ports and airports among others, so that the country could achieve the 9 percent growth trajectory over the next five years.
During his interaction with reporters, the deputy chairman of Planning Commission stressed that corporate debt market was the way out as the government and the bankingsystem could meet only up to 50 percent of the funding requirement.
Mumbai: The different views and regulatory confusion of RBI Governor and the Plan panel on the corporate debt market issue has come out in the open.