Economic Survey: Net bank credit to infra rises 59%

Net bank credit to infrastructure in 2009-10 defined as the difference between outstanding gross deployment of bank credit to infrastructure in March 2009 and March 2010, increased substantially in the current fiscal. As compared to net bank credit increase of Rs. 64,322 crore during April-November 2009-2010 there has been an increase of Rs. 1,02,301 crore during April-November 2010, showing 59% rise.

The total FDI inflows during April-November 2010 have been low compared to the inflows during the same period in the previous year. FDI inflows into the petroleum and natural gas and air transport sectors have been comparatively higher during the current financial year. FDI inflows into the power, telecommunications and information and broadcasting sectors have been comparatively lower during 2010-11. In the period April-November 2009, the FDI flow to infrastructure was USD 4552.7 million which fell to USD 3338.2 million in the period of April-November 2010.

Given the enormity of the investment requirement and limited availability of public resources, the Survey has said that it is imperative to explore avenues for increasing investment in infrastructure through a combination of public investment, Public Private Partnerships (PPPs) and occasionally exclusive private investment wherever feasible. Various measures by the Central and State Governments has resulted in a robust pipeline of over 518 PPP projects in diverse sectors with an estimated project cost of over Rs. 2,73,847.25 crore.