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India’s private infra funding at 10-year low, says World Bank
WASHINGTON: India recorded a 10-year low in private investment in infrastructure in 2015, adding to contraction that pulled down the global investment to below its
WASHINGTON: India recorded a 10-year low in private investment in infrastructure in 2015, adding to contraction that pulled down the global investment to below its five-year average of $124.1 billion (Rs8.3 lakh crore), the World Bank said on Monday.
According to the bank, global investment in 2015 decreased to $111.6 billion (Rs7.5 lakh crore).
“India recorded a 10-year low in investments, as only six road projects usually a rich source of PPI over the past 10 years reached financial closure,” the World Bank said.
In South Asia, 43 deals for a combined total of $5.6 billion reached closure in the region, representing 5% of the total investment — a decline of 82% from the five-year average of $30.5 billion.
“Consistent with historical trends, India generated a majority of the projects (36 out of 43); Pakistan had four; Nepal, two; and Bangladesh, one. Notably, 26 of the 36 projects in India, amounting to $2.0 billion, targeted renewable energy, while all of Pakistan’s projects, totalling $749.9 million, solely focussed on renewables,” the Bank said.
Solar energy investments climbed 72% higher than the five-year average, while renewables attracted nearly two-thirds of investments with private participation, it said.
Commitments in Brazil were only $4.5 billion in 2015 — a sharp decline from $47.2 billion the previous year.
By number of projects, however, India, Brazil and China took the lead, with 131 of the 300 global deals, or 44% of all projects.
Still their combined investment of $11.6 billion only made up 10% of the global total, compared to 54% in 2014.
