The Planning Commission has indicated a resource gap of Rs 336,000 crore during the Ninth Plan period. This is about 16 per cent of the total required investments of Rs 22,05,000 crore.
The Central and state governments will together cough up Rs 758,000 crore or 34 per cent of the total investment needs. The private sector is expected to meet half of the total investment requirement or Rs 11,10,000 crore.
The resource gap is most acute for the electricity sector. Of the projected investment of Rs 364,000 crore, Rs 140,000 crore will be met by public investments and Rs 47,000 crore by private investments, leaving the balance 49 per cent unaccounted for.
The private sector contribution in the total investment outlay includes investments by industry amounting to Rs 697,000 crore. About 9 per cent of the industrial investments over the next five years is expected to met by foreign capital inflows, projected at Rs 60,000 crore.
The private sector is expected to invest Rs 376,000 crore in registered manufacturing units and the public sector Rs 100,000 crore, leaving a fund gap of Rs 32,700 crore.
Unregistered manufacturing units will witness investments worth Rs 161,000 crore leaving a fund gap of Rs 35,000 crore.
Despite indications by the railways that it will seek to attract private funds, the plan document does not envisage any contribution from the private sector. Public investments in railways will be at Rs 46,500 crore, which is about Rs 9,700 crore more than the projected investment requirement of Rs 36,800 crore.
The contribution of the agriculture and the allied sector is expected to come down from 27 per cent in 1996-97 to 24 per cent in the final year of the Ninth Plan.
It says that the agriculture sector would require a total investment of Rs 195,000 crore. Of this, Rs 70,000 crore is expected to meet by public investment and Rs 117,000 crore by private investment.
The plan panel has suggested a growth rate of 10.6 per annum for the infrastructure sector.
Private investments amounting to Rs 240,000 crore will flow into the real estate, despite the planners advising the government to try and divert these funds to the infrastructure sector.
