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February 27, 2007 17:42 IST
The onus for 60 per cent of infrastructure development in the 11th Plan at an investment of Rs 8,64,000 crore (Rs 8,640 billion) has been put on the public sector.
The country's public sector would be required to raise this amount in the next five years to take on the onerous task of creating infrastructure, the Economic Survey said on Tuesday.
"Investment requirements for infrastructure in the 11th Plan are expected to be Rs 14,50,000 crore (Rs 14,500 billion) and 60 per cent of these will come from the public sector," said the Survey presented in Parliament.
The rest of the funds would have to come from either the private sector or through private-public partnership, it said.
The increase in saving rates across the board will result in the availability of more resources. The overall savings as compared to GDP has gone up to 32.4 per cent in 2005-06, the Survey said.
"However, redeeming feature of recent years is that the savings of the public sector, which had been negative till 2002-03, was positive for the third year in a row in 2005-06," it said. In 2005-06, the savings by public sector of Rs 71,262 crore (Rs 712.62 billion) in the previous fiscal was largely attributable to departmental and non-departmental enterprises.
Apart from savings, the public sector will have to tap long-term funds as debt. The Survey said the development of a vibrant bond market and pension and insurance reforms would facilitate success in infrastructure.
Economic Survey 2006-07: Complete Coverage
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