Mumbai: Planning Commission Deputy Chairman Montek Singh Ahluwalia today (Oct 14, 2004) said that India has excess foreign exchange reserves and part of them should be used for the financing the infrastructure growth, which is necessary for the country's fast economic growth.

Asked about plans to use forex reserves for infrastructure, Ahluwalia told reporters in Mumbai that the country has more foreign exchange than required and "we are working on modalities to deploy part of it for development of infrastructure".

The plan panel was discussing proposals with the Union Finance Ministry, however, it was yet to be taken up with the Reserve Bank of India, he added.

Foreign exchange should be used for financing projects in such a manner that it did not have any disruptive impact on the system, Ahluwalia said.

Earlier addressing Indian Merchant's Chamber he said the quality of infrastructure, especially power and roads had to be improved to the help country attain an eight per cent annual growth.

India could become a medium income country in next 20 years with four-fold rise in per capita income (PCI) to $ 2,000, he said, adding, this would "keep poverty at minimum levels".

The task of growing PCI was challenging and to attain the eight per cent growth, more infusement of resources was needed in social sectors like health and education.