(a) whether the Central Government is considering to increase investment in
infrastructure sector after the global financial crisis choked inflow in mega projects;
(b) if so, the details thereof;
(c) whether the Central Government has drawn up any estimate for additional spending
on infrastructure projects during the Twelfth Five Year Plan;
(d) if so, the details in this regard; and
(e) the measures taken by the Central Government to increase investment in
infrastructure?
MINISTER OF STATE FOR PLANNING, SCIENCE & TECHNOLOGY
AND EARTH SCIENCES (DR. ASHWANI KUMAR)
(a): Yes, Madam.
(b): As a part of the Mid Term Appraisal of the Eleventh Five Year Plan done in 2010, the
Central Government’s investment in infrastructure during the Eleventh Plan is expected to be
Rs. 6,90,926 crore which is 86.85 % more than the Central investment realized during the
Tenth Five Year Plan period.
(c) & (d): The Twelfth Five Year Plan is being formulated.
(e): The Central Government has taken following measures to increase investment in
infrastructure:
Cabinet Committee on Infrastructure (CCI)
The CCI was constituted under the chairmanship of the Prime Minister on July 6, 2009. The
CCI approves and reviews policies and annual targets and projects across infrastructure
sectors.
Public Private Partnership Appraisal Committee (PPPAC)
For streamlining and simplifying the appraisal and approval process for PPP projects, the
PPPAC has been constituted under the chairmanship of Secretary, Department of Economic
Affairs.
Empowered Committee / Institution (EC/EI)
An institutional framework has been established for appraising and approving PPP projects
for availing the Viability Gap Funding (VGF) grant of up to 20 per cent of the cost of
infrastructure projects.
Viability Gap Funding (VGF) Scheme
To enhance the financial viability of competitively bid PPP infrastructure projects which do
not pass the standard thresholds of financial returns, VGF grant up to 20 per cent of capital
costs is provided by the Central Government to projects undertaken by any Central Ministry,
State Government, statutory entity or local body. An additional grant of up to 20 per cent of
the project costs can be provided by the sponsoring authority.
India Infrastructure Finance Company Limited (IIFCL)
The IIFCL was set up as a non-banking company for providing long-term loans for financing
infrastructure projects that typically involve long gestation periods. The IIFCL lends up to 20
per cent of the project costs.
Model Documents
Model documents that incorporate key principles and best practices relating to the bid process
for PPP projects have also been developed. Guidelines for the pre-qualification of bidders
along with a Model Request for Qualification (RFQ) document have been issued by the
Ministry of Finance.