Finance Infrastructure Projects

1. State governments have huge problems in implementing major infra projects independently in spite of central govt. giving more share of income tax revenue to states. Can the central government consider launching bond sale programme individually for each state to raise funds from market instead of depending on World Bank or Japanese corporation for funding at huge costs. Though world banks provide their expertise the share of funds from them should be reduced significantly by using infrastructure bond sale in stock markets by govt. similar to private infra firms like L&T etc,.
2. When private firms even after getting a project they need funds to run projects completely they also use markets to raise funds in the same way state govt and central govt must create infra bonds to raise funds from public and private entities and foreign investors. The bond return value must be competitive and managed by private and public joint fund managers.
   The bond money earned should be used for projects only which have got all required clearance from all departments. For example a road project or new metro project which has got all approvals from centre, state, forest and wildlife, must be using this money to quickly implement the project along with percentage of central, state, outside funding directly. This will definitely reduce the burden of the govt's and increase public participation in infra projects. 
3. Public purchase of these bonds must not be restricted to demat only or SEBI must create a fast process to open demat from post offices or banks easily, some PSB don’t have demat so they can be a supporter of any PSB demat account the post offices and banks must do KYC only through postman or direct branch verification, they must be allowed to buy directly from post offices, banks, etc,. 
4. Demat account opening must be allowed to be done using post offices and banks also by preparing a new project were low cost of transactions and demat charges reduced to less than Rs. 100 for public who do transaction cost less than Rs. 5000 per year. SEBI can give details of the lowest 5% of demat accounts transaction based on that rules can be framed to allow more public participation directly in markets. US public greater participation in markets lead to more development in the country as markets decided govt decisions as right or wrong, so govt will visibly know if their decision are right or wrong.
5. Public must be provided reasons on how the funds are going to be used with consultation from fund managers, Public Sector banks, big stock brokers companies like motilal oswal, angel broking, etc,., sebi, finance ministry, RBI, Income Tax etc,. Draft can be released for public and private entities for comments and further improved for better funding of future infra projects faster so that if funds received from public are high they can self implement some projects easily instead of waiting for external funding and reduce dependency on Income Tax collection.
6. The taxation policy for these debt funds has to be reduced to improve more participation from foreign and Indian companies and public. Currently the tax is good value for long time holders only so if possible please reduce time frame for investment for reduced tax so that more participation is increased.
   The bond sale by giving 9% interest after 5 years also must be considered like the methods done a decade back to generate more funds. Using demat will reduce bogus accounts and KYC completed. But the process for opening demat must be quick say for transactions up to Rs. 5000 they KYC process can take place in background till it is opened officially. If tax free done for all investments or 1% tax it will motivate many since we need lot of funds to move at faster infra development. States must be guided on process to steps to do same bond sale.
7. All KYC process don’t hit IT department to verify pan card photo by comparing photo in card and the person who comes to open with IT systems. That process needs to be done in banks, all places were pan card is mandatory including demat opening.
8. NRI’s must be encouraged to participate in Indian markets by guiding on the steps to be taken by genuine methods by Indian embassy explaining and reaching out to all NRI by various methods like making contact with the groups they would have registered or posters at Indian temples and religious points in all countries were Indians go regularly, dance and music halls which are used by Indians, cinema theatres were Indian movies run by giving pamphlets or asking all Indians who move out of country by using passport details and contacting for email id or the mobile number registered before exiting country and entering country. So their funds can be used for markets also. NSE and BSE must also make attempts to reach NRI on investing in markets through various means. KYC for them will be through passport and pan card or other methods with finance and IT department can think to avoid loopholes.

Contact: bvenky88@yahoo.co.in