An Important Challenge ?

Shri Piyush Goyalji , while speaking recently at the Asian Infrastructure Investment Bank’s Annual Summit , said :

“  Infrastructure creation requires $ 4.5 trillion ( $ 4500 billion ) in investments over the next 10 years

…. The required funds will be available and raising it will not be a deterrence…”

Shri Goyal flagged the COST of FINANCE , as an important challenge

[ source :

 https://indianexpress.com/article/business/economy/cost-of-infra-funding-a-challenge-piyush-goyal-5233432/  ]

At a press meet later , Shri Goyal said :

India has proposed nine infra projects to AIIB for funding which will entail an investment of $ 2.4 billion

With AIIB having committed $ 1.4 billion worth of projects , India is already the biggest beneficiary of AIIB ( so , cannot expect much more there ? )

Something just does not sound right here !

Our need is $ 450 BILLION  per year ( year after year for next 10 years ), and here we are begging AIIB for $ 2.4 billion  !

Incidentally , according to some  think tanks / experts , share of BLACK MONEY in our economy is 15 % of our GDP

If our GDP is $ 2800 billion ( $ 2.8 trillion ) , this would work out to $ 420 billion !

About the same as our requirement of Infra Funds  !

Just consider this :

An amount of Rs 7,000 cr ( $ 1  billion ) , belonging to Indians,  is lying in Swiss Banks

Opposition claims that this is BLACK MONEY – with government rejecting that claim

But , as against that $ 1 billion ( Black or White ) , lying abroad , we have some $ 420 billion stashed away LOCALLY , in land / gold / benaami assets etc .   ALL BLACK  !

On the same dias , along with Shri Goyal , was Mr Bambang Permadi Soemantri Brodjonegoro , the former Finance Minister of Indonesia

I am surprise that neither Shri Goyal nor the Anchor turned to him and ask :

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“ Sir ,

  Last year , your country announced a BLACK MONEY AMNESTY SCHEME , with no penalty / no prosecution / no interrogation

Only 2 % - 4 %  tax to be paid on BLACK MONEY declared by individuals

You managed to raise  $ 330 billion , to be used for funding Infrastructure Projects

Can you please tell us more about how you pulled off this MIRACLE  and how this money

is creating millions of jobs and raising your GDP , through those Infra Projects ?  “

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Dear Shri Goyalji :

I totally appreciate that it could have been very embarrassing to hear what Mr Bambang might have said , in front of such a distinguished audience

But nothing stops you from making some quiet / private inquiry !

Or read my following email to Shri Jaitleyji ( dated : 23  Dec  2016 ) :

Indonesia Shows the Way 

https://myblogepage.blogspot.com/2016/12/indonesia-shows-way.html

Even our neighbour Pakistan recently managed to raise  Rs 100 billion  by announcing a similar AMNESTY SCHEME

[ https://dunyanews.tv/en/Pakistan/445890-Amnesty-Scheme-likely-to-be-extended-keeping-in-view-its-benefits  ]

It is still not too late to evaluate my suggestion considering that :

*  In India , we can raise $ 420 billion at ZERO cost of finance

*  By forcing declarations  of Black Money raised with INFRA SPVs only , we are putting

   these “ no risk “ funds to productive use and generating millions of new jobs

01    July  2018

www.hemenparekh.in / blogs

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