'Infra needs 8% GDP investment during 11th Plan'

Expressing concern over low investment in infrastructure, Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the country would need to spend 8% of its gross domestic product (GDP) on the sector during the 11th Plan to ensure a 10% economic growth.

"Investment in the infrastructure sector is not enough for achieving a 10% growth. Investment should rise to 8% during the 11th Five Year Plan to achieve a sustainable growth rate," Ahluwalia said.

The infrastructure sector, which presently gets an investment of below 5% of the GDP, would need an annual expenditure of around Rs 1 lakh crore during the plan.

Ahluwalia ruled out a separate infrastructure ministry to address the issues in the sector. "I don't think there is any need for a separate ministry of infrastructure. We can continue with the present system and gain experience," he said.

"There is almost no support among the concerned ministries for an overarching regulatory framework for the sector." He suggested at the appellate stage, there is no need for a regulator for the sector.

Ahluwalia, however, said there could be a single regulator for the entire energy sector.