7-8% interest for infra projects: Plng Commission member

New Delhi: The Planning Commission member, Mr Kirit Parikh on Friday advocated a reduction in interest rates to 7-8 per cent for infrastructure projects saying it would be a good stimulus for the core sector.
The rate may be 7-8 per cent, which will be a good stimulus, Mr Parikh said on the sidelines of a FICCI summit on infrastructure here.
At present, the rates at which public-sector banks lend for infrastructure projects vary between 11.50 per cent and 13 per cent.
He added that lower rates are advisable considering the long-term inflation of 3-4 per cent.
Inflation fell to a record low of 0.44 per cent for the week ended March 7. This is expected to provide more room to the Reserve Bank of India to further cut rates to spur growth.