The private sector may have to chip to ensure the success of the government's ambitious flagship programme Rajiv Awas Yojna to make the country slum-free.
"There would be a requirement of about Rs 4 lakh crore to implement Rajiv Awas Yojna and the money cannot be sourced from the government alone," said Union Minister of State for Urban Development Saugata Ray while addressing an Assocham seminar on 'private equity in infrastructure'.
Private players will have a big role to play in the project and the modalities are being worked out by the Planning Commission, Ray said.
The scheme, which aims to make the country slum free in five years, got a special mention in the Presidential address as a flagship programme of the Centre.
Referring to another flagship programme of the government, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), he said "we are seeking a loan of USD 5 billion from the World Bank and negotiations are on".
According to the Assocham, in order to achieve a consistent GDP growth rate of 9 per cent per annum, India needs an investment of around USD 502.88 billion in infrastructure during the eleventh Five Year Plan of which 30 per cent (USD 154.90 billion) is expected to come from the private sector.
"So it is clear that the private investment in the infrastructure is not a matter of choice but of necessity," he added.