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New Delhi : The government plans to set up Rs 50,000 crore debt fund for the power sector, Power Secretary P Uma Shankar said on Sep 9.
"There are thoughts of setting up a debt fund. It is at a planning stage," Shankar said. The fund would be the latest in a series of recent government measures to overhaul India's creaky infrastructure, long seen as a drag on growth in Asia's third-largest economy.
A separate $11 billion debt fund for infrastructure has already been announced. Shankar said an investment of Rs 5 lakh crore was required to meet a target to build 100,000 mega watts (MW) generation capacity in 2012-2017.
India's Planning Commission said in recent report capacity shortages in the power sector could prevent India from achieving double-digit growth. The commission predicts India will likely add 62,000 MW of power capacity in the five years to 2012, short of a 78,000 MW target.
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