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Fundraising for infra should get incentives

The Economic Survey has emphasised the need to overcome infrastructure deficit to achieve the targeted the 9 per cent growth in the 11th Five Year plan, reports Samiran Saha.

business Updated: Feb 28, 2008 21:38 IST
Samiran Saha

The Economic Survey has emphasised the need to overcome infrastructure deficit to achieve the targeted the 9 per cent growth in the 11th Five Year plan. However, infrastructure growth during April-December slowed down to 5.7 per cent against 8.9 per cent a year ago.

The survey estimates that investment in physical infrastructure (electricity, railways, roads, ports, airports, irrigation, urban and rural water supply and sanitation) during the 11th plan is estimated at Rs 2000 crore or $500 billion.

"During 2008-09 alone, the projected investment in infrastructure is expected to be more than Rs 322,000 crore (comprising non-debt and debt resources at 2006-07 prices). The substantial requirement of debt resources would have to be financed through various sources including domestic bank credit, non-bank finance, pension and insurance funds and through the external commercial borrowing route," the survey observed.

"The development of adequate infrastructure is a critical pre-requisite for sustaining the growth momentum and to ensure inclusiveness of the growth process," Finance Minister P Chidambaram has said.