Lok Sabha Question No. 2188 (UNSTARRED), answered on 2015-12-11
Subject: Investment Infrastructure Development
Ministry: FINANCE
Asked by: M. K. RAGHAVAN

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

## LOK SABHA

## UNSTARRED QUESTION No. 2188 TO BE ANSWERED ON FRIDAY, THE 11 th  DECEMBER, 2015

## INVESTMENT INFRASTRUCTURE DEVELOPMENT

## 2188. SHRI M.K. RAGHAVAN:

Will the Minister of FINANCE be pleased to state:

- a) whether  the  Government  is  aware  of  the  shortage  of  funds  for  investment  in infrastructure development in the country and an overall volume of institutionally assisted projects across the sectors;
- b) if  so,  the  details  thereof  along  with  the  overall  requirement  of  these  projects including bringing in various types of foreign investments;
- c) the details of the credit growth for infrastructure sector during the last three years and the current year; and
- d) whether there has been a substantial decline in this sector as per RBI report, if so, the  details  thereof  and  the  steps  taken/being  taken  by  the  Government  including measures to up-start the stalled projects?

## ANSWER

## MINISTER OF STATE FOR FINANCE (SHRI JAYANT SINHA)

(a) & (b) The Twelfth Five Year Plan had projected an investment of  Rs. 55,74,663 crore  over  the  Plan  period  (2012-17)  in  infrastructure  defined  to  include  electricity, renewable  energy,  roads  &  bridges,  telecommunications,  railways,  mass  rapid  transit system,  irrigation  (including  watershed),  water  supply  &  sanitation,  ports  (including inland  waterways),  airports,  storage  and  oil  &  gas  pipelines  sectors  which  have  been revised to Rs 37,24,078 crore.  The actual investment in these sectors during 2012-13 and  2013-14  was  Rs  5,50,166  crore  and  Rs  6,25,020  crore  respectively,  while  it  has been estimated at Rs 7,09,286 crore in 2014-15.  Total cumulative drawls of external loan/grant up to 8 th  December, 2015 are Rs 56,875 crore for infra- related projects.

- (c) & (d): Available  data  on  Credit  to  infrastructure  sector  for  select  banks  which cover  about  95  percent  of  all  non  food  extended  by  all  scheduled  commercial  banks during last three financial years and current year is as under:

(Rs in crore)

|                 | (Outstanding as on)   | (Outstanding as on)   | (Outstanding as on)   | (Outstanding as on)   |
|-----------------|-----------------------|-----------------------|-----------------------|-----------------------|
| Item            | 22/03/2013            | 21/03/2014            | 20/03/2015            | 30/10/2015            |
| Non-food Credit | 48,37,193             | 55,29,602             | 60,02,952             | 62,09,731             |
| Infrastructure  | 7,28,966              | 8,36,357              | 9,24,531              | 9,60,872              |

Note: Data are provisional and relate to select banks which cover about 95 per cent of total non-food credit extended by all scheduled commercial banks

Government  has  taken steps to mobilize funds from various sources for development  of  basic  infrastructure  including  establishment  of  Infrastructure  Debt Funds, Real Estate/Infrastructure Business Trusts, relaxation in External Commercial Borrowing (ECB) and Foreign Direct Investment (FDI) norms, mainstreaming of Public Private Partnerships (PPPs), liberalization of lending norms by banks in infrastructure sector,  relaxation  of  norms  for  Employees'  Provident  Funds  Organization  (EPFO) /pension  funds  for  infrastructure  sector,  periodical  review  of  Harmonized  List  of Infrastructure, establishment of National Infrastructure Investment Fund (NIIF), issuance of Tax Free Bonds etc. Further Project Monitoring Group has been set up in the  Cabinet  Secretariat  with  a  view  to  putting  in  place  an  institutional  mechanism  to track stalled projects both in public and private sectors involving investment of Rs 1000 crore or more.

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