The projected private investment of Rs 26.83 lakh crore in infrastructure sectors during the 12th Five Year Plan (2012-17) is unlikely to materialise, Parliament was informed today.
“..investment in infrastructure sector particularly the private investment including PPPs has slowed down during the first three years of the Plan, the projected private investment during the 12th Plan is unlikely to materialise,” Planning Minister Rao Inderjit Singh said in written Reply to Rajya Sabha.
Explaining further, he said: “This slowdown (in investment) has been attributed to various reasons including inadequate allocation of fuel to power stations, delays in environment and forest clearances and land acquisition, funding issues and economic slowdown etc.”
The minister informed the House that of the total investment in infrastructure, the 11th Five Year Plan (2001-12) witnessed a share of 37 per cent of private investment, including PPPs, against a share of 22 per cent achieved in the 10th Plan (2002-07).
According to the 12th Plan document, government has envisaged an investment of Rs 55.74 lakh crore in the infrastructure sector including Rs 16.01 lakh crore from Centre, Rs 12.89 lakh crore from states and Rs 26.83 lakh crore from private sector.
The erstwhile Planning Commission was targeting USD one trillion investment (about Rs 63 lakh crore at today’s price) in infrastructure sector during the 12th Five Plan. But at that time the exchangerate was Rs 44 for a US dollar.
The last Deputy Chairman of the Commission Montek Singh Ahluwalia had also made it clear that the investment target could not be achieved as for achieving this, Indian economy should grow at over 9 per cent per annual in 12th Plan period.