New Delhi: Private sector will be expected to contribute up to $500 billion for development of the infrastructure sector during the 12th Plan, an amount which will be nearly half of the total investment projected for the Five-Year period, the planning commission has said.
“We need to do a trillion dollar (investment in infrastructure sector in the 12th Plan) ... 50% of investment has to come from the private sector,” a top official of the commission said.
The contribution of private sector in development of infrastructure sector is expected to go up from 25% in the Tenth Plan to 36% in the 11th Plan and further to about 50% in the next Plan.
“A preliminary assessment suggests that investment in infrastructure during the Twelfth Plan would need to be of the order of about Rs40,99,240 crore ($1,025 billion) to achieve a share of 9.95% as a proportion of the GDP”, Planning Commission deputy chairman Montek Singh Ahluwalia had said in a foreword to a recent report on investment in infrastructure.
The investment in infrastructure sector during the current Plan (2007-12) is expected to be nearly $500 billion, as was envisaged at the start of the Plan.
The commission will draw a detailed plan for doubling investment in infrastructure and outlining the contribution of public and private sectors, the official said, adding huge investment would be needed to achieve a growth of 10% in the Twelfth Plan as suggested by Prime Minister Manmohan Singh.
As it is not possible for the government alone to raise resources, he added, a significant amount would have to come from the private sector, especially through public-private partnership projects.