Planning Commission Deputy Chairman Montek Singh Ahluwalia said on Thursday investment in infrastructure during 11th Plan period (2007-12) is likely to be 10 per cent shot of the $500-billion target.
"In the 11th Plan (2007-2012), we think our investments will probably be a little short of $500 billion. I would not be surprised if it is 10 per cent or even 12 per cent short," Ahluwalia said at the India Infrastructure Summit organised by Federation of Indian Chambers of Commerce and Industry.
On Infrastructure Debt Fund, he said, "Issuing guideline (for setting up of IDF) is virtually complete. There are some details which we will sort out very quickly."
The guideline is not meant to clear $10 billion fund, he said.
"Our initial objective is to have a set of guidelines in place where 2-3 such funds take off. I expect at least two such funds to start off during the current fiscal," he said.
Ahluwalia said the government has set up a high-level committee under the chairmanship of former Reserve Bank of India Deputy Governor Rakesh Mohan on financing of the infrastructure sector.
The committee is expected to submit its report soon.
He also called upon the private sector to honour
It should be logical to open the private sector projects to government scrutiny in terms of assessing the performance parameters so that infrastructure projects do not suffer from time and cost overruns and ensure that public interest is not compromised in any way, he said.
During the 12th Plan period (2012-17), he said, almost 50 per cent of the spending on infrastructure would have to come from the private sector.
"While public sector investment would increase in absolute terms during the five year period, this would essentially be channelised into areas such as rural roads and Railways to improve transport connectivity to the remotest parts of the country," he said.
He further said that the Planning Commission is undertaking detailed exercises to sort out issues related to land acquisition, environmental and forest clearances and inter-sectoral linkages.
These will be part of the operational details currently being worked upon and would be built into the final plan document that will be ready by this fiscal-end, he added.
Image: Montek Singh Ahluwalia
