By IANS,
New Delhi : With the funds needed for India’s infrastructure development pegged at $1 trillion during the 12th Five Year Plan (2012-17), Finance Minister Pranab Mukherjee Tuesday said private players will also be allowed to issue tax-savings bonds.
The announcement came during a conference organised by the Planning Commission here on the challenges and opportunities ahead in building India’s infrastructure, which was presided over by Prime Minister Manmohan Singh.
“We have still not completely succeeded in exploiting full potential of insurance and pension funds for deployment in infrastructure projects,” the finance minister said, adding long-term bonds carrying tax benefits was an option.
“It will, of course, be for private sector as well as public sector.”
Presenting the national budget for 2010-11, Mukherjee had said disbursements by the India Infrastructure Finance Co for long-term funding will touch Rs.9,000 crore ($2 billion) by the end of this fiscal and Rs.20,000 crore ($4.4 billion) by March 2011.
He had also said that allocation for infrastructure projects for the ensuing fiscal will be Rs.173,552 crore ($38.5 billion), or 46 percent of the total plan outlay, since good roads, ports and railways were essential to sustain growth.
According to the prime minister, in the next Five Year Plan (2012-17), India will need double the investment of $500 billion that will go into infrastructure development in current plan period.
“Preliminary exercises suggest investment in infrastructure will have to expand to $1 trillion in the 12th Five Year Plan. I urge the Finance Ministry and the Planning Commission to draw up a plan of action for achieving this level of investment.”