The 12th Plan (FY13-FY17) infrastructure investment projections have been revised to Rs 38.23 lakh crore, which is about 69% of the original plan projections of Rs 55,74,663 crore, largely due to huge shortfall in private investments. “The revised projections of public investment (Centre & States) for the Twelfth Plan stands at 88% of the target (revised from Rs 28.91 lakh crore to Rs 25.41 lakh crore), while the revision in private investment is estimated at 48% of the target (revised from Rs 26.84 lakh crore to Rs 12.81 lakh crore),” noted the appraisal document of the Plan. The last two years of 12th Plan (FY16 and FY17) accounted for half of the infrastructure investment in the country between FY13 and FY17 as the Narendra Modi government’s initiatives in many sectors like electricity, roads, railways, ports and telecommunications, which were aimed at creating additional capacities and speed up project implementation. The revised investment during 12th Plan is still 1.6 times the investment of Rs 23.77 lakh crore achieved in the 11th Plan at current prices. The revised share of private investment in 12th Plan is projected at about 34% compared to 48% in the original projection and is less than the 37% achieved in the 11th Plan. As per the revised projections, infrastructure investment as a percentage of GDP for the 12th Plan as a whole would go down to 6.11% against the original projection of 8.18% and 7% achieved in the 11th Plan.
[“Source-financialexpress”]
