Private sector role in infrastructure is poised for significant growth in the XII five-year Plan, possibly accounting for about 35 to 40 per cent of projected investment of $1 trillion, according to Mr J.P. Nayak, President of Larsen & Toubro.
Speaking at Suminfra hosted by the CII southern region as its Chairman, Mr Nayak, said that the 12th Plan seeks to achieve a growth target of 9 per cent where private sector investments and public private partnership (PPP) investments are set to play a larger role in achievement of growth targets.
“Therefore, investments to create new infrastructure needs to be doubled,” he felt.
“While the XI Plan had targeted investment of $500 billion in infrastructure, we may actually achieve about $380 billion to $400 billion. However, on a larger target of about $1 trillion for the 12th Plan announced by the Prime Minister, Dr Manmohan Singh, we need to significantly ramp up the investments and also the pace of development of infrastructure projects,” he explained.
Of the 670-plus projects awarded for development under the PPP mode, with aggregate value of about Rs 3,80,000 crore, 40 per cent of these investments are accounted for by the four Southern states with Andhra Pradesh bagging 44 per cent of this, followed by Karnataka (29 per cent), Kerala (15 per cent) and Tamil Nadu (12 per cent).
Mr Nayak felt that States needed to adopt a standardised single gateway model which will enable expedite clearances of these projects. The CII believes that there is greater requirement to bring in transparency in finances, accountability in execution while ensuring sustainability of environment.
Mr A.P. Venkateshwar, Vice-President of Tata Projects, said that South accounts for 36 per cent of total projects awarded under PPP whose value is estimated at 40 per cent overall. He felt that there was a need for an independent regulator and a mechanism to resolve disputes.