New Delhi: Government is taking all possible steps, including viability gap funding to enhance public and private investment for promoting economic growth and poverty reduction, Finance Minister P Chidambaram said.

Addressing the Parliamentary Consultative Committee attached to the Finance Ministry, he said that an enabling environment is necessary for attracting investment, as well as proper infrastructure and larger investible resources.

Chidambaram said he would consult the Prime Minister in utilising Forex reserves in infrastructure development.

Asserting that revenue deficit meant dis-saving, Chidambaram said both Government and PSUs (Public Sector Undertakings) must save and public spendings should be reduced to free resources for investment.

Chidambaram said Government was committed to promoting Public Private Partnerships (PPP) for infrastructure, as it has now become an important tool the world over.

Recent developments in infrastructure sector, including roads and ports, were good examples of such partnerships.

Government has therefore proposed to set up a special 'viability gap funding' facility to support PPP projects.

Most of the infrastructure projects have a long gestation period and may not be fully viable on their own. Financial viability can be ensured through a mechanism that provides Government's support to reduce project costs, he said.

To qualify for viability gap funding, the projects must be implemented with at least 40 per cent private equity in the following sectors -- roads, railways, ports, airports, power, water supply, sewerage and solid waste disposal in urban areas and international convention centres.