New Delhi: The Union government on Tuesday underscored the role of the private sector in catalysing infrastructure investments and laid down a road map for planned investments of a little more than $1 trillion (around Rs45.6 trillion) in the next Five Year Plan. This estimate is nearly twice the amount projected to be spent on infrastructure in the current Plan period.
Speaking at a conference on ‘Building Infrastructure: Challenges and Opportunities,’ Prime Minister Manmohan Singh said investments in infrastructure had to expand to as much as $1 trillion in the 12th Plan period (2012-2017).
Catalyzing investment: Prime Minister Manmohan Singh (left) and finance minister Pranab Mukherjee. PTI
Singh said he had asked the Planning Commission to prepare a draft Bill outlining regulatory institutions for the infrastructure sector.
Planning Commission officials said private investment should begin to outpace public investments in infrastructure towards the end of the 12th Plan period. The 11th Plan estimates that the private sector would contribute nearly one-third of the total planned investments.
“Financial intermediaries would be allowed (to) float infrastructure bonds, which the public would be allowed to subscribe to,” finance secretary Ashok Chawla said at the conference.
The 2010-11 Budget announced by finance minister Pranab Mukherjee has proposed reducing Rs20,000 from an individual’s taxable income if the sum is invested in infrastructure bonds.