Rs 56-lakh crore investment projected in 12th Plan

The government has projected an investment of about Rs 56.32 lakh crore in infrastructure, during the 12th Plan period of 2012-17 for accelerating the pace of investment in the sector.

"The draft 12th Plan continues the thrust on accelerating the pace of investment in infrastructure and has projected an investment of about Rs 56.32 lakh crore in infrastructure during the Plan period (2012-17)," minister of state for Parliamentary affairs and planning Rajeev Shukla said in a written reply to Lok Sabha on Wednesday.

The government has set an investment target of Rs 20.56 lakh crore during the 11th Plan period (2007-12) in various infrastructure projects, as inadequate infrastructure has been considered a major constraint to growth, he said. "Recognising that inadequate infrastructure is a major constraint on rapid growth, the Eleventh Plan had emphasised the need for massive expansion in investment in infrastructure and has set an investment target of Rs 20.56 lakh crore over the Plan period (2007-12) in various infrastructure sectors."

The government has taken various steps to accelerate pace of infrastructure development in the country, he said. It launched country's first Infrastructure Debt Fund (IDF) of USD 2 billion in March 2012. "This IDF is structured as a non-banking finance company with an initial equity share of Rs 300 crore is envisaged to expand the availability of debt to infrastructure projects."

"Further, a few more IDFs are also proposed to be launched soon and by the end of 2012 at least two IDFs are expected to be functional," Shukla said.       A high-level committee on financing infrastructure has been constituted to review the existing framework for financing infrastructure and to make recommendations in this regard.

In July 2006, the Cabinet Committee on Infrastructure (CCI) was constituted under the chairmanship of the Prime Minister. "The CCI reviews and approves policies and projects across infrastructure sectors. It also considers and decides on financial, institutional and legal measures required to enhance investment sectors," he added.