The Tamil Nadu government is looking at increasing private sector investment in infrastructure development from 15 per cent of the Rs 25,000 crore in 2010 to 42 per cent of the estimated Rs 2.37 lakh crore in 2023. The funding from the state government for infrastructure would be gradually brought down from 60 per cent in 2010 to 28 per cent in 2023, said a vision document by the Tamil Nadu government.
According to the Tamil Nadu Vision 2023 document, released by chief minister J Jayalalithaa, the investment in infrastructure over the period between 2011-2023 is estimated at Rs 15 lakh crore, of which Rs 13.25 lakh crore would be spent on infrastructure projects and Rs 1 lakh crore on administrative and social welfare programmes. Further, an estimated Rs 75,000 crore would be spent on regular capital expenditure on improvements to existing infrastructure.
“Going forward, the share of the private sector is expected to increase while that of the state government will reduce,” the vision document said.
The expected fund mix suggests that in 2016, out of the estimated Rs 93,705 crore investment in infrastructure, almost 33 per cent would be from the state government, decreasing from 60 per cent of the Rs 25,000 crore spent by it in 2010.
The investment by private players would go up from 15 per cent to 37 per cent by that time.
By the year 2023, the state government’s contribution would come down to almost 28 per cent of the Rs 2,37,690 crore estimated investment in infrastructure, while the private sector investment would go up to 42 per cent. However, funding from the central government would go up from 25 per cent in 2010 to 30 per cent in 2016 and would remain the same till 2023.
