Lok Sabha Question No. 104 (STARRED), answered on 2017-12-22
Subject: Development of Infrastructure
Ministry: FINANCE
Asked by: RAMSINH PATALYABHAI RATHWA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF ECONOMIC AFFAIRS

## LOK SABHA

## STARRED QUESTION NO.*104

TO BE ANSWERED ON FRIDAY, THE 22 nd  DECEMBER, 2017/ PAUSHA 01, 1939 (SAKA)

## DEVELOPMENT OF INFRASTRUCTURE QUESTION

*104 SHRI RAMSINH RATHWA:

Will the Minister of FINANCE be pleased to state:

- (a) whether  the  Government  has  taken  cognizance  of  the  need  for  the  development  of infrastructure in the country and if so, the details thereof;
- (b) the details of the infrastructure projects along with the funding there of, project-wise;
- (c) the manner in which the Government will arrange funds for these projects; and
- (d) the role likely to be played by the debt-burdened banks in the development of infrastructure in the country?

## ANSWER

## MINISTER OF FINANCE (SHRI ARUN JAITLEY)

- (a)  to (d): A statement is placed on the table of the House.

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## Statement placed on the Table of Lok Sabha in reply to parts (a) to (d) of the Lok Sabha Starred Question No.104 (Position No. 4) to be answered on Friday, the 22 nd December, 2017 regarding DEVELOPMENT OF INFRASTRUCTURE, by SHRI RAMSINH RATHWA, Member of Parliament.

(a) to (d): Government is very much conscious that development of infrastructure is crucial to boosting growth and expanding services in the country. NITI Aayog's Three year Action Agenda (2017-18 to 2019-20) has also spelt out how infrastructure development is one of the most crucial elements of economic transformation. The total allocation for infrastructure sector  in  Budget  2017-18  stands  at  Rs.  3,96,135  crores.  The  Government  recently announced a major infrastructure push with launch of Bharatmala programme.

Infrastructure  projects  in  the  country  are  implemented  in  public,  public-private  and private  modes.  Public  sector  projects  are  also  implemented  by  the  Central  Government, State  Governments and Local Bodies.  There is no  central/single  registry  of  infrastructure projects along with their funding in the country. As per NITI Aayog,  the revised projections for investment in infrastructure in the period 2012-17 are Rs. 38,22,822 crore which is 1.6 times  the  investment  of  Rs.  23,77,746  crore  achieved  in  the  period  2007-12  at  current prices.

The Government has taken a number of steps to mobilize funds from various sources for development of infrastructure including launching of innovative financial vehicles such as Infrastructure  Debt  Funds  (IDFs),  Real  Estate  Investment  Trusts  (REITs)/Infrastructure Investment Trusts (InvITs), National Investment and Infrastructure Fund (NIIF), laying down a  framework  for  municipal  bonds,  allowing  complete  pass  through  of  income  tax  to securitization  trusts  including  trusts  of  Asset  Reconstruction  Companies  (ARCs),  take-out finance etc.

Infrastructure projects are typically characterized by large financial outlays and long gestation period.  While banks,  have  played a pivotal role in providing finance to infrastructure and supporting economic growth, bank financing of infrastructure is constrained by their inherent asset-liability mismatch. In addition, there is growing trend of stressed  assets  from  this  sector  in  bank  balance  sheets.  Government  has  modified guidelines  for  advances  to  infrastructure  sector  including  allowing  banks  to  have  flexible structuring  and  refinance  of  project  loans,  bringing  in  5/25  Scheme  to  extend  long  tenor loans to infrastructure projects etc.

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