The Planning Commission has projected that investment in infrastructure would almost double at $1025 billion in the 12th Plan, compared to $514 billion in the 11th Plan. Of the $1,025 billion, 50 per cent is expected to come from private sector, whose investment has been 36 per cent in the 11th Plan.
Gajendra Haldea, advisor to the deputy chairman of the Planning Commission, at a conference said debt mobilisation posed a serious problem. He explained nearly $250 billion of debt was required for both public and private sectors during 11th Plan. “Infrastructure projects require long-term debt. Commercial banks lend for the medium term as their asset-liability mismatch prevents them from undertaking long-term commitments. Thus, the Planning Commission has suggested launching debt financing, where in-debt fund will be set up,” he said.
The fund would cover road, railways, port, Metro rail and airport projects that provide for a compulsory buyout by the authority granting the concession. It would also cover power and other projects.
