Lok Sabha Question No. 4911 (UNSTARRED), answered on 2017-03-31
Subject: Infrastructure Sector
Ministry: FINANCE
Asked by: CHANDRAKANT BHAURAO KHAIRE

## Government of India Ministry of Finance Department of Economic Affairs

## LOK SABHA

## UNSTARRED QUESTION No.4911 TO BE ANSWERED ON FRIDAY, MARCH 31, 2017/CHAITRA 10, 1939 (SAKA)

## INFRASTRUCTURE SECTOR

## 4911. SHRI CHANDRAKANT KHAIRE

## Will the Minister of FINANCE be pleased to state:

- a)  whether the Government has fixed the target to increase the growth rate of domestic product in the infrastructure industry in the country;
- b)  if  so,  the  details  thereof  including  the  investment  made  so  far  in  the  infrastructure industry vis-a-vis the target fixed in this regard;
- c)  the percentage of increase in indigenous production in infrastructure industry during the last financial year; and
- d)  the reaction of the Government towards the said percentage of growth rate?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ARJUN RAM MEGHWAL)

(a) to (d) : As per the CRISIL-ASSOCHAM Report, 2016 on Building a  New India, the funding requirement to build India's infrastructure is estimated at Rs. 43 lakh crore over the next 5 years. As per the 374 th Flash Report on Central Sector Projects (for projects of cost Rs 150 crore and above) of Ministry of Statistics and Programme Implementation, details of the on-going central sector infrastructure projects are given below:-

| Sr No   | Period           |   Total no. of projects | Sanctioned cost (Rs in Crore)   |
|---------|------------------|-------------------------|---------------------------------|
| 1 (a)   | As on 31.03.2014 |                     710 | 9,24,307.04                     |
| 2 (b)   | As on 31.03.2015 |                     751 | 10,28,235.95                    |
| 3 (c)   | As on 31.03.2016 |                    1076 | 12,38,517.07                    |
| 4 (d)   | As on 31.12.2016 |                    1186 | 14,60,099.70                    |

The Gross Capital Formation in Infrastructure Sector comprising electricity, gas, water supply, other utility services , construction , transport ( railways, air, road), storage, and communication  &  broadcasting  services  has  recorded  an  annual  growth  of  14.49% during FY 2015-16 at constant (2011-12) prices.

Government has taken various steps to enhance investment in infrastructure sector including  launching  of  innovative  financial  vehicles  such  as  Infrastructure  Debt  Funds (IDFs),  Real  Estate  Investment  Trusts  (REITs)/Infrastructure  Investment  Trust  (InVITs), National  Infrastructure  Investment  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),   bringing  in 5/25  Scheme to  extend long  tenor  loans  to  infrastructure  projects,  take-out  finance,  flexible  structuring  etc. Various  steps  to  ensure  timely  completion  of  projects  have  also  been  taken  such  as rigorous  project  appraisal,  online  computerized  monitoring  system  (OCMS)  for  better monitoring, setting up of standing committees in the Ministries for fixation of responsibilities,  and  setting  up  of  Central  Sector  Project  Coordination  Committees (CSPCCs) in states under Chief Secretaries for removal of bottlenecks and for facilitating speedy implementation of major projects.

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