By IANS
New Delhi, Sep 30 (IANS) The private sector is likely to invest up to 25 percent of the funds needed in infrastructure development in the next five years, according to a snap poll by the Confederation of Indian Industry (CII).
According to an expert committee report, total investments required for the infrastructure sector in the next five years is $475 billion, CII said.
Over 46 percent of the respondents revealed that power sector was the most attractive sector for private sector investment, followed by telecom, ports, airports and roads.
Interestingly, the chief executives surveyed indicated urban infrastructure and township development as the last preference among areas of infrastructure investment.
Although domestic equity and foreign direct investment emerged as the most preferred source of funding, about 28 percent voted for external commercial borrowing.
As much as 77 percent of the CEOs indicated that infrastructure funding will not be through corporate bonds as domestic corporate bond markets were not developed enough.
Assessing impediments to greater private sector participation in infrastructure, 44 percent of the CEOs felt that complexities and delays in approval and clearance were the most important hurdles.
The next most important obstacle dampening greater private sector participation was land acquisition, as revealed by 49 percent of CEOs.
The poll also pointed towards the development of more special economic zones in the next three years.