G Padmanabhan, Executive Director of Reserve Bank of India (RBI) remarked that the country is on course to meet its infrastructure investment target of $1 trillion during the ongoing 12th five-year plan (2012-17).
Speaking at a conference in London, he said the funding process was working in a seamless manner and things have taken off in a very exciting way.
Padmanabhan stressed on the need to look beyond banks for financing infrastructure projects. Given the size of Indian banks, there is a limit on how much they can lend for infrastructure projects. Some have really stretched themselves as the requirement, of a $1 trillion, is massive. he said.
Financing India's Infrastructure - Building Partnership with the UK' brought together policy-makers, CEOs, heads of PSUs from India and the UK at Guildhall, in the heart of London's financial district, to assess opportunities available within public private partnership (PPP) model in the sector.
"Firms must decide on the case for investing in Indian infrastructure based on the strong market credentials," said Arvind Mayaram, Secretary, Department of Economic Affairs, who spearheaded the conference on behalf of the Indian government.
The speakers in the conference discussed investment instruments such as Indian Equities and Debt and Infrastructure Debt Funds (IDFs) available to build new highways, ports, airports, power plants and transmission grids, and for the development of industrial townships.