New Delhi, March 24 (KNN) With proposed Special Purpose Vehicles (SPVs) for investments in Vietnam, Cambodia, Laos and Myanmar, the government is preparing to engage private firms to offer up to 51 per cent stake to the private sector. The balance equity will held by the government.

Seen as a boost to Prime Minister Narendra Modi’s ‘Act East Policy’, wherein east is the focus area and the relations with the countries in the region conferred top priority, this is expected to create industrial zones in these countries, where Indian companies, especially small and medium enterprises will set up manufacturing unit.

To help the country's small and medium enterprises sector set up manufacturing bases in regions where it can source inputs at competitive prices while gaining global exposure, the SPVs will be under the Ministry of Commerce and Industry.

The government also hopes that since these countries are geographically closer to the Northeast part of India, this would aid in the industrial development with transport infrastructure in the form of Kaladan Multi-modal Transit and India-Myanmar-Thailand trilateral highway which is expected to be ready by 2016. (KNN/SS)