Friday, June 15, 2012

>Manmohan Singh promises to speeden up infrastructure development

Prime Minister Manmohan Singh on Wednesday (June 06, 2012) sent a strong signal by outlining an ambitious agenda to put infrastructure projects on the fast track. He promised a big push to infrastructure development and pledged quick action in awarding airports, highways and port projects in a meeting with ministers and top officials from the power, coal, aviation, railways, highways and shipping ministries. With Indian economy in doldrums and general elections round the corner, this was anticipated. The Prime Minister said that infrastructure development was a key part of the strategy to revive the India growth story and has outlined an impressive target for the same.

Despite huge infrastructure growth opportunity, the world’s second fastest growing economy has been a laggard when it came to developing its infrastructure. Be it macro conditions, lack of effective government policy or just plain underperformance by companies. To bridge the infrastructure deficit to achieve an inclusive growth as well as accelerate GDP growth, investment in infrastructure across segments is likely to increase tremendously in the 12th Five Year Plan period as against 11th Plan.

The government’s projected investment in 12th Plan is Rs40,152 bn as compared to an investment of Rs19,481 bn in the 11th Plan. The government has plans to rely more on infrastructure investment by private sector and has targeted for private investment contribution of 50% in 12th Plan as compared to 37% in the 11th Plan and 25% in the 10th Plan. This indicates increased PPP projects/participation in future.

To read report in detail: INFRASTRUCTURE DEVELOPMENT