MINISTER OF STATE FOR PLANNING, SCIENCE & TECHNOLOGY
AND EARTH SCIENCES (DR. ASHWANI KUMAR)
(a): The Eleventh Five Year Plan has projected an investment of Rs. 20,56,150 crore
over the Plan period (2007-12) in electricity (including non-conventional electricity),
roads & bridges, telecommunications, railways (including mass rapid transit system),
irrigation (including watershed), water supply & sanitation, ports (including inland
waterways), airports, storage and oil & gas pipelines sectors. The Government, as part
of the Mid-Term Appraisal (MTA) of the Eleventh Five Year Plan has reviewed the
progress made in infrastructure sectors. At that stage, the investment projection was
revised to Rs. 20,54,205 crore as against the Plan projection of Rs. 20,56,150 crore.
The sector-wise Eleventh Plan investment projections and revised MTA projections are
given Table 1 below:
Table 1
Eleventh Plan Projections and Revised MTA Projections of investment in
Infrastructure (Rs. crore at 2006-07 prices)
Sectors Plan Projections Mid-Term Appraisal Projections
Electricity 6,66,525 6,58,630
(incl. NCE)
Roads & Bridges 3,14,152 2,78,658
Telecommunications 2,58,439 3,45,134
Railways (incl. MRTS) 2,61,808 2,00,802
Irrigation (inc l.2,53,301 2,46,234
Watershed)
Water Supply & 1,43,730 1,11,689
Sanitation
Ports (incl. Inland 87,995 40,647
waterways)
Airports 30,968 36,138
Storage 22,378 8,966
Oil & gas pipelines 16,855# 1,27,306
Total 20,56,150 20,54,205
Note: # The Plan target pertains to gas pipelines only.
The MTA noted following sectoral progress:
Electricity
1. The revised projected investment of Rs. 6,58,630 crore in the electricity sector
is slightly lower than the original projection of Rs. 6,66,525 crore. The figures for
private investment in the electricity sector show an increase of 55 per cent as compared
to the original projections. The contribution of the public sector investment is likely to
decline mainly due to lower than anticipated investments in the Central Sector in the
first two years of the Eleventh Plan. Capacity addition of 62,374 MW is likely to be
achieved during the Eleventh Plan as compared to a target of 78,700 MW.
Roads
2. The revised projected investment in road sector is also significantly lower at Rs.
2,78,658 crore compared with Rs. 3,14,152 crore in the original projections. The
investment by the Centre is expected to decline due to award of lower than projected
road projects by NHAI during the first three years of the Plan. It is interesting to note
that investment in the road sector by the States is expected to increase on account of
higher investments under PMGSY.
3. The investment by the private sector is also expected to go down due to award
of a lower number of BOT projects in the first three years of the Eleventh Plan.
However, MORTH has decided to speed up the award and implementation of NHDP to
achieve a completion rate of 20 kms. of highways per day. This is likely to increase the
investment during the last two years of the Eleventh Plan, but the major build up in
expenditure consequent to this acceleration will be in the Twelfth Plan.
Telecom
4. The growth in the telecom sector has been phenomenal and the investment is
expected to be Rs. 3,45,134 crore which is 1.3 times higher than the originally
estimated figure of Rs. 2,58,439 crore at the time of the formulation of the Eleventh
Plan. This is due to increase in investment by the private sector to a level 1.59 times
higher than the investment envisaged at the time of formulation of the Eleventh Plan. In
contrast, investment by the Centre in telecommunications is expected to be 23.84 per
cent lower than projected when the Eleventh Plan was formulated.
Railways
5. The revised projected investment in railways, including metro railways, in the
Eleventh Plan is now expected to be about Rs. 2,00, 802 crore which is 23.3 per cent
lower than the earlier projection of Rs. 2,61,808 crore. Both Central sector investment
and private investment are lower than the original projections. As per latest estimates
only Rs. 8,316 crore is expected by way of private investment which is only 16.5 per
cent of original projections.
Ports
6. Progress in this sector has been much below expectations. The investments
during the Eleventh Plan are now projected at a level of Rs. 40,647 crore which is less
than half of the original projection of Rs. 87,995 crore. Private investment in the port
sector is also expected to be almost 40.31 per cent lower as compared to the projections
made at the beginning of the Plan. This is because very few PPP projects have been
awarded by the respective Port Trusts in the first two years of the Eleventh Plan.
Ministry of Shipping has revised the original target of 545 MMT of additional capacity
for the major ports downwards and now proposes to develop only 48 projects with a
capacity of 393.27 MMT costing Rs. 29,905 crore over the Eleventh Plan period.
7. Compared to the slow progress in capacity addition in major ports, the private
sector ports in the state sector have done relative well. Out of the total private
investment of Rs.32,517 crore projected for the Eleventh Plan, the share of private
investment in the state sector is Rs. 26,370 crore.
Airports
8. The investment in Eleventh Plan is now projected at Rs. 36,138 crore as against
the original estimate of Rs. 30,968 crore and both public and private investments in
airports are likely to increase compared to the investment projected at the beginning of
the Eleventh Plan. Private investment is expected to contribute Rs. 23,155 crore which
is 64.07 per cent of the total investment in airport infrastructure. The investment in state
sector airports has taken a dip from 2009-10 onwards because of the completion of the
Hyderabad and Bangalore projects.
Oil and Gas pipelines
9. The investment in oil and gas pipelines in the Eleventh Plan is expected to
increase to Rs. 1,27,306 crore as against the original figure of Rs. 16,855 crore. The
much larger figure is primarily because the data include investment in oil pipelines
whereas the earlier data only included gas pipelines. The investment in oil pipelines
alone during the Eleventh Plan is projected at Rs. 1,08,190 crore. This category
includes large investment by the Centre also.
Water Supply and Sanitation
10. The total investment in water supply and sanitation in the Eleventh Plan is now
estimated at Rs. 1,11,689 crore, about 22 per cent lower than the original projection of
Rs. 1,43,730 crore. The Eleventh Five Year Plan strategy for urban development
includes departure from the exclusive public sector monopoly over urban infrastructure
opening up the possibility of investment in this area.
Irrigation
11. Investment in irrigation and watershed management is a critical part of rural
infrastructure. The total investment in this sector is expected to be about Rs. 2,46,234
crore in the Eleventh Plan which is 7.52 per cent higher than earlier anticipated and it
will be more than double the investment of Rs. 1,19,894 crore realized in the Tenth
Plan.
(b): From the Table 1, it may be noted that the overall Eleventh Plan investment
target would be met substantially.
(c): Yes, Madam, the Government plans to give a major boost to infrastructure
development in the Twelfth Five Year Plan.
(d): The Approach Paper to the Twelfth Five Year Plan recognizes that Government
must continue the thrust on accelerating the pace of investment in infrastructure, as this
is critical for sustaining and accelerating growth. The Approach Paper as approved by
the NDC on October 22, 2011 has indicated that the total investment in infrastructure
would have to be over Rs. 45 lakh crore during the Twelfth Plan period. The Approach
Paper has further indicated that infrastructure investment (defined as electricity, roads
& bridges, telecommunication, railways, irrigation, water supply & sanitation, ports,
airports, storage and oil & gas pipelines) will need to increase from about 8 per cent of
the GDP in the base year (2011-12) of the Plan to about 10 per cent of GDP in 2016-17.
Financing this level of investment will require larger outlays from public sector, but
this has to be coupled with a more than proportional rise in private investment. Private
and PPP investments are estimated to have accounted for over 30 per cent of total
investment in infrastructure in the Eleventh Plan. Their share may have to rise to 50 per
cent in the Twelfth Plan. More details about funds for infrastructure in the Twelfth Plan
would be included in the Twelfth Five Year Plan document which is under formulation.
