Mumbai: Planning Commission has submitted a proposal to the Finance Ministry for raising Rs 70,000 crore for the infrastructure projects in the country in the next three years by using the burgeoning foreign exchange reserves.

"We can raise upto Rs 23,000-24,000 crore every year for the next three years for the infrastructure projects by using foreign exchange reserves," Planning Commission deputy chairman Montek Singh Ahluwalia told reporters at an interactive meeting organised by All India Industries Association in Mumbai.

The use of foreign exchange reserves for infrastructure projects would put more money in the economy leading to an increase in fiscal deficit, he said.

However, this increase in fiscal deficit could be neutralised by allowing more imports, he added.

The proposal to this effect is being discussed with the Finance Ministry, he said but did not give any timeframe for its implementation.

The funds generated would be used broadly in the areas of high infrastructure projects including roads and irrigation, he said.

Singh said the planning commission is working on the share of the Centre, states and private players for the expected Rs 9,00,000 crore investment needed in the power sector and would come out with a proposal in the mid-term plan appraisal by December end.