With the government consolidating its fiscal position, Planning Commission Deputy Chairman Montek Singh Ahluwalia urged private sector to contribute no less than 50 per cent of the estimated investment in infrastructure in the 12th five year plan (2012-17).
It may be noted that the government estimated $1 trillion investment in infrastructure during this period. Ahluwalia said there are zero prospects of the government being able to finance infrastructure projects.
He further remarked that the country may attain eight per cent average annual growth rate during 2012-17 only if the private sector contributes half of a trillion dollars required for infrastructure funding during the period.
He said this at a summit organised by the Federation of Indian Chambers of Commerce and Industry. He said private-sector participation in infrastructure public-private partnership (PPP) projects had grown substantially, from 10 per cent of the required investment in the 10th Plan period to 37 per cent during the 11th.
Indian economy is expected to grow by an average 5.8 per cent annually during 2012-13 and 2013-14 assuming that the economy grows 6.7 per cent in FY14. Even then, it would require the economy to grow over nine per cent in the last three years of the Plan.