Finance Minister P Chidambaram on Sunday announced the setting up of a three-member Investment Commission, headed by Tata group Chairman Ratan Tata, to act as an 'interface' between the government and investors to attract the targeted $150 billion investment in infrastructure over the next 10 years.

The commission, which will also have HDFC Chairman Deepak Parekh and former Hindustan Lever Chairman Ashok Ganguly as members, will initially have a three-year term.

It would hold discussions with businessmen in India and abroad, identify opportunities for investment and advise the government on creating a favourable investment climate, Chidambaram said in his inaugural address to the India Economic Forum, 2004.

The summit has been organised by the World Economic Forum and the Confederation of Indian Industry.

The minister also announced that a roadmap to allow 74 per cent foreign direct investment in private banks would be announced this month. But he hastened to add that 'PSU banks will give you (foreign banks) a run for your money.'

Chidambaram said discussions were also on within the government on increasing the FDI limit in the insurance sector.

"I hope to bring in a Bill (to amend the IRDA Act) early next year," he said, adding that the government would also soon appoint a regulator for the pension sector to fully operationalise the pension scheme with defined contributions to all subscribers.

Asserting that India was well poised to attain 7 per cent economic growth over the next 10 years, Chidambaram said that despite the economic progress made by India, he was "not satisfied as investors had still not reaped the full benefits of a golden opportunity called India."

"Virtually every sphere of activity requires investment. We need $40 billion in telecom, $12 billion in power, $13 billion in roads, we need at least six world class airports and need to build at least 20 seaports along the coastline, explore petroleum reserves off-shore and on-shore, double or triple steel capacity and explore mineral wealth in states like Bihar and Orissa," he said.

In addition, areas like services and agriculture also require huge investments.

"Agriculture requires the highest investment - new markets, new inputs, seeds, fertilisers, pesticides and new opportunities to explore new markets," he said, adding that agriculture exports would double every year for the next 10 years.

Stating that the earlier dogma that "the State alone could promote investment" was now irrelevant, Chidambaram said the government would take care of providing social services such as drinking water, sanitation and health services, but the industry must use the opportunities to invest in infrastructure sector.

He assured the industry that the government would provide an enabling environment and an investor friendly climate to allow them to make profits.