Finance Minister P Chidambaram today announced the setting up of a three-member Investment Commission, headed by Tata group Chairman Ratan Tata, to act as an ‘interface’ between the government and investors to attract the targeted $150 billion investment in infrastructure over the next 10 years. The commission, which will also have HDFC Chairman Deepak Parekh and former Hindustan Lever Chairman Ashok Ganguly as members, will initially have a three-year term. 

It would hold discussions with businessmen in India and abroad, identify opportunities for investment and advise the government on creating a favourable investment climate, Chidambaram said in his inaugural address to the India Economic Forum, 2004. The summit has been organised by the World Economic Forum and the Confederation of Indian Industry. The minister also announced that a roadmap to allow 74 per cent foreign direct investment (FDI) in private banks would be announced this month. 

But he hastened to add that “PSU banks will give you (foreign banks) a run for your money”. Chidambaram said discussions were also on within the government on increasing the FDI limit in the insurance sector. “I hope to bring in a Bill (to amend the IRDA Act) early next year,” he said, adding that the government would also soon appoint a regulator for the pension sector to fully operationalise the pension scheme with defined contributions to all subscribers.