Set Up GST Council Type Authorities for Land, Labour, Power to Drive Structural Reforms: RBI

It suggested that states can be encouraged to publicise the availability of litigation-free land in their jurisdictions with access to modern infrastructure. “In the power sector, the opportunity has arrived to leapfrog India into becoming the world leader in renewable energy by incentivising the domestic production of solar panels and connecting dispersed transmission links with remote areas,” it said.

For the sector as a whole, elimination of cross-subsidisation through tariff structure and provision of subsidy, if any, through direct benefit transfer (DBT) should be a priority, along with due consideration to the privatisation of electricity distribution companies (DISCOMS). “With regard to railways, there is a strong case for manufacturing units to be corporatised,” the report said, adding that FDI into railways can be encouraged by removing bottlenecks in access to infrastructure — land, procurement rules, project risk-sharing mechanisms.

The growth potential of land banks can be exploited, particularly in metropolitan areas, by long-term leasing to the private sector, including for development of commercial real estate. Further, “a comprehensive policy is needed with regard to building adequate reserves of strategic materials, including the initiatives undertaken for crude oil”.

The report also said the progress made on building modern physical infrastructure in the country over the last five years has been noteworthy in the areas of roads, civil aviation and airport connectivity, telecommunication (including internet and broadband penetration), and ports. Nonetheless, the infrastructure gap remains large, needing around USD 4.5 trillion of investment by 2040, as per the Economic Survey 2017-18, with emphasis on upgrading the poor quality of infrastructure, it added.