More Funds Required...

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[(Reuters) India's infrastructure firms said extra spending and rate cuts announced by the government on Sunday would ensure money flowed into projects, but more cash was needed to expand the country's highways and road network. Amid a global slowdown and slumping economy, the federal government said it would seek approval for extra spending worth $4 billion in the remainder of the fiscal year, while the central bank slashed key interest rates over the weekend. State-run lender, India Infrastructure Finance Co Ltd will raise Rs 100 billion through tax-free bonds by end March 2009 for infrastructure funding, the government said. The move will likely channel public money into infrastructure spending and boost the economy, infrastructure companies said. &quot;I think we've always seen for any country to get out of recession, a further impetus on infrastructure is good and we are working on those same lines, Sarang Wadhawan, managing director, Housing Development and Infrastructure Ltd. &quot;We do understand India is slowing down, but to what level is still to be seen,&quot; he said. Many of the country's infrastructure projects, including roads and ports, are on the build-operate-transfer (BOT) model. &quot;We are looking for only two things, one is easy liquidity and the second is for lower interest rates because more and more projects are coming on BOT,&quot; Chander S Bansal, President, Transportation, Oil &amp; Gas, Maytas Infra Ltd. &quot;BOT projects cannot be made viable by just Rs 100 billion,&quot; he said, but added he expected more incentives to be announced for infrastructure. The economy will continue to need stimulus in 2009/10 and this can be achieved by substantial increase in budget spending for next year, the government said. The government will not hesitate to take more steps that may be needed to counter recessionary trends and maintain the pace of economic activity, it added. (Reuters)