New Delhi: India may miss a $500 billion target for infrastructure investment for the five years through 2012, but will likely create at least two $10 billion debt funds for the sector in the next few months, a senior government adviser said on Thursday.

Creaky infrastructure has been blamed as one of the drags on the growth prospects of Asia’s third-largest economy, which policymakers expect to grow between 8% and 8.5% for the current fiscal that ends in March.

“We think our investment will probably be little short of the $500 billion target," Montek Singh Ahluwalia, deputy chairman of Planning Commission said on Thursday at a conference about meeting fast-growing India’s needs for roads, ports, power and railways.

“I would not be surprised if it is 10% or even 12% short," he said.

Ahluwalia also stressed the need for more infrastructure debt funds, the guidelines for which will be released soon.

“We need several $10 billion funds. I expect at least two ($10 billion funds) to start off (in the current fiscal year)," Ahluwalia said.

Over the next five years ending March 2017, India plans to invest $1 trillion in building infrastructure.