Addressing a session on infrastructure on the second day of India EconomicSummit 1999, he said the tendency, especially among London-based financialinstitutions, is to over secure loans here more than in their own country."This was despite the fact that the level of reforms in our country is morethan many other emerging countries," he said.

Expressing concern over the prevailing low power tariffs, the ministerwarned that a sudden increase in tariff would lead to negative reactions.He said that the government was aware that if the infrastructure was notsufficient, the desired economic growth cannot be achieved. For a growthrate of 7-8 per cent of GDP, 15,000 mw power is required. This means aninvestment of $15 billion which needs to come from both public and privatesector. "But we are already behind schedule."

Kumaramangalam said that a meeting of state ministers would be held inJanuary for drawing a five-year schedule for power sector reforms.Speaking on the occasion, John Prescott, British deputy prime minister, saidthere was a need to find new ways to meet increasing capital demands in boththe public and private sector. He cited the examples of public privatepartnerships in British railways, London Underground and National AirTraffic Services.

Whether in developed or developing countries, for improving the quality oflife, governments require ever-increasing amounts of capital investment. "Nogovernment can pay for all of that simply from taxation revenue."He felt opportunities for a real partnership between India and Britainexisted.

Prescott said that a water commission representing 18 British companies wasvisiting India and was interested in financing projects here.

Expressing optimism about India's power sector reforms, Kenneth L Lay,chairman and chief executive officer, Enron, said that his company wouldincrease its investment in India over the coming years. He, however, calledfor quick decisions on the part of the government.

Stating that Enron was in favour of alliances with various public sectorcompanies in the energy sector, Lay said the Maharashtra State ElectricityBoard has already picked up 30 per cent stake in the first phase of Dabholpower project. It would pick up another 30 per cent for phase two.

"It is critical that the state electricity boards (SEBs) and other publicsector companies be restructured and privatised to bring in private sectorcollaboration and alliances," he said.

Enron is actively considering such alliances and the corporation has alreadypicked up six per cent stake in the public sector Gas Authority of IndiaLtd, Lay said.

Lay also spoke about the company's plans to diversify into telecom anddevelop the fibre optic capability by bringing technology from the UnitedStates.