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Reform power to grow: PC
By agencies
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Monday, 12 December 2005, 20:30 IST
KOLKATA: Finance Minister P. Chidambaram today said the economy could grow at an annual rate of more than 8 percent if the crucial coal and power sectors increase their output.
"We can achieve more than 8 percent growth if we address the issues in coal and electricity in the next few weeks," Chidambaram said.
India grew 8.0 percent in the July-September quarter, beating forecasts due to strong output in services and manufacturing prompting analysts to raise their full-year growth forecasts for the Asias third largest economy.
India has coal reserves that can last 300 years and abundant water resources for both thermal and hydropower projects that Chidambaram said could be utilized for more power output.
"Yet, we have got bogged down in an economic model where there is no incentive to generate and transmit electricity," Chidambaram said. "But for coal and electricity we could have grown at a higher rate than we are now."