Private Investment in infra expected to go up
The government is expecting private participation in infrastructure projects to go up to USD 182 billion in this five year plan at an outlay of about USD 500 billion for infrastructure, a top L&T official said today.
Compared to the sector's contribution in the 10th five year plan, which was about 25 per cent, the expected contribution to the 11th plan is more than one third, President (Operations) Larsen & Toubro and Chairman Suminfra 2010 J P Nayak said.
He was speaking at Suminfra 2010, the eighth edition of the two-day annual summit on sustainable public private partnerships in infrastructure organised by CII here today.
Public Private Partnership investment in infrastructure far exceeds participation said Vinayak Chatterjee, Chairman, CII National Council on Urbanisation and Future Cities, and Chairman of Feedback Ventures Ltd, adding that private investment is expected to increase to 36 per cent in the 11th Five Year Plan from 25 per cent in 10th Five Year Plan.
Chatterjee said average Gross Capital Formation in Infrastructure (GCFI) as a percentage of GDP, a measure to evaluate the performance of infrastructure development, is expected to increase to 10 per cent in the 12th Five Year Plan (2012-2017) from 5.5 per cent average of 10th Five Year Plan.
He said India is expected to become the biggest destination of PPP projects. As per independent estimates, India is expected to achieve 84 per cent of its infrastructure project targets of the 11th Five Year Plan. he added.
However, the country needs to correct imbalances in the performances of infrastructure sectors – "the growth rate of infrastructure projects in areas of electricity, transport, water supply and sanitation could grow only at about 65 per cent as against the growth rate of infrastructure projects in the areas of telecom, airports, oil & gas, and irrigation, which is about 134 per cent," Chatterjee said.
