The Planning Commission has proposed to set up a mega fund with seed money of Rs 50,000 crore to facilitate investment of over Rs 45 lakh crore in the infrastructure sector during the 12th Plan (2012-17).
“The commission has recommended to create a fund with seed money of Rs 50,000 crore to finance infrastructure projects in the country particularly in 12th Plan period,” an official said.
“The panel has also constituted a committee, which would be headed by HDFC chairman, Mr Deepak Parekh, to look into funding of the infrastructure sector projects. The committee would submit its report to the Planning Commission,” he said.
The government will seek funding from multilateral lending agencies like the World Bank and the Asian Development Bank, financial institutions, insurance companies and pension fu-nds for the dedicated fund.
As part of the exercise to step up infrastructure sector funding, the government will also fix annual targets for ministries like road, railways, power and telecom, and would monitor implementation of the projects.
“In a bid to boost infrastructure development, besides setting annual targets, the government would make provision for periodically monitoring such projects to ensure desirable growth of the sector,” the official said.
The decision to set up an effective mechanism to en-sure sustainable investment in the infrastructure sector was taken at a meeting of the Planning Commission headed by its deputy chairman, Dr Montek Singh Ahluwalia, on Tuesday.
During the meeting, it was pointed out that infrastructure development, failed to gain momentum in the past 6-7 years despite government efforts and after setting up of a task force under the Prime Minister. — PTI