Committee to evolve infra financing strategy

NEW DELHI - The government has set up a committee under the chairmanship of former Reserve Bank of India (RBI) deputy governor Rakesh Mohan to chart out a strategy of raising funds for infrastructure projects.

In order to review the existing framework and to make recommendations, it has been decided to constitute a high-level committee on financing of infrastructure, an official statement said Thursday.

During the 11th plan period (2007-08 to 2011-12), Rs.20,50,000 crore investment is estimated in infrastructure sector. The government targets to double this investment to Rs.41,00,000 crore (at constant 2006-07 prices) in the 12th five year plan period (2012-13 to 2016-17).

“Nearly one half of the estimated Rs.41 lakh crore investment during the 12th plan period is expected from the private sector and a significant proportion of the balance half will be funded by public sector undertakings through market borrowings,” Planning Commission said in a statement.

The objective of the committee is to evolve policy responses to enable the flow of large capital resources of this order into infrastructure projects.

As chairperson of the committee, Rakesh Mohan will have the status of a minister of state in an honorary capacity.

The committee, which will have a tenure of 18 months, will be serviced by the Planning Commission and the Infrastructure Development Finance Company (IDFC). It will be headquartered in New Delhi.