Core infrastructure needs USD 1.4 tn to shore up; PC
Core infrastructure needs USD 1.4 tn to shore up; PC To enhance the core infrastructure, an amount of USD 1.4 trillion has been estimated by Indian planners, reports Business Standard.
Planning Commission (PC) finalized the figures recently.
As against the earlier estimate of USD 320 billion, it is now estimated that USD 498 billion will be needed in 2007-12 (the 11th five-year Plan period) and another USD 989 billion between 2012 and 2017 (the 12th Plan period).
It has become imperative for infrastructure sector to grow since India is facing capacity constraints. Development of infrastructure will encourage the economy to grow another 1-2 percentage points.
For the 11th plan period, capacity addition in the core sector was estimated USD 475 billion by the finmin. At this rate, investment in infrastructure is expected to nearly double to 9% of GDP every year during 2007-12.
Upgradation through public-private partnership (PPP) model will enhance to meet ambitious targets.
In addition to that, the contribution of private sector is targeted to move up to 29% from 16% of the total investment during the 10th Plan. Telecom, ports and airports, the government aims to attract around 65% investment from the private sector.
To reach the estimate of USD 498 billion in the Eleventh Plan, an appropriate mindset for PPP projects at the political level is mandatory. Ther efore, it is necessary to improve efficiency and ensure rational user charges to improve revenue streams.
