He said the IRAs would not only decide the size and worth of each project on non-political consideration but also solve disputes between the suppliers and consumers. He said that fixing the user charges for the private sector with a minimum assured returns has also become absolutely essential to attract private sector participation in infrastructure from which they used to shy away in the past.

Sinha was speaking at a function here to mark the unveiling of `Gujarat Infrastructure Agenda, Vision 2010' involving an investment of $29 billion (Rs 116,993 crore) in 383 projects over a period of the next 10 years.

Describing the Vision 2010 as a need-based, rooted-to-reality and pragmatic landmark which could indeed be achieved in a timeframe of 10 years, he said, "There could not be a better document, ensconced in legal framework. Let it beckon other states to prepare similar plans."

While the government of Gujarat has promised to provide budgetary provisions to meet 30 per cent of total investment, the remaining 70 per cent is expected to be sourced by private sector, FIs and foreign lending agencies like World Bank and Asian Development Bank.

Sinha congratulated Gujarat for doing an excellent home work in preparing sectoral as well as inter-sectoral linkages in the agenda and promulgating earlier the Gujarat Infrastructure Ordinance, known as BOT law, an ideal law for inviting and involving the participation of the private as well as co-operative sector.

He recalled that the infrastructure projects in the past failed to take off in the country for lack of transparency and want of adequate feasibility studies. Government alone was considered to be qualified to undertake such projects. The private sector lacked interest as well ascapacity. With politicians stepping in, most of the projects ran into time and cost overruns with user charges and tariffs becoming inconsequential. This made the infrastructure sector uneconomic and unattractive.

With winds of economic reforms taking shape after 1991, he said the private sector came forward in a big way but not in infrastructure. The Centre's experiment with fast track projects in power sector became the slowest, for lack of transparency in awarding projects to independent power producers (IPPs).

He said it was about time the state electricity boards (SEBs) trifurcated into power generation, transmission and distribution.

Referring to the proposed IRAs for all the major sectors, he said, such authorities have become absolutely essential to inculcate a sense of confidence among the private sector to come forward with investments for infrastructure projects from which they used to shy away earlier. He wished the Gujarat's Agenda took care of transparency.

The finance minister howeverstruck a note of caution against different state governments entering into a rate war of sorts by offering unusually low tax rate, inviting an unhealthy competition among states. The Centre has to look into the interest of certain states which have been pushed back He said the committee headed by the chief minister of West Bengal has in the meantime submitted a report, suggesting a similar tax base if not a uniform tax rate to reduce the rate war among different states. He has taken up the matter with CMs of all the states for their comments, a few have responded.