Private sector to play major role in infrastructure: CII

Subscribe to Oneindia News

New Delhi, Sep 30: With infrastructure poised for a major expansion and investment friendly regulations in place, private sector is expected to infuse 25 per cent of the total investment of 475 billion dollars in the next five years, a CII poll said.

About 79 per cent of the CEOs said about 25 per cent of the total investment of 475 billion dollars needed in infrastructure sector according to the Deepak Parekh Committee report, would come from the private sector in the next five years, the CEOs snap poll on infrastructure conducted by industry chamber CII said.

However, majority of them expressed their concerns saying complexities and delays in the approval and clearance process are the most important impediment, followed by land acquisition, inadequate bankable projects, non-availability of long-term finance, cost of finance and lack of execution capacity on contracts.

Assessing the availability of bankable projects, 66 per cent of the CEOs, responded that the shelf of bankable projects available were only upto the extent of 50 billion dollars.

Power is the most preferred destination, as 46 per cent of the CEOs felt that it is the most attractive sector for investment, followed by telecom, ports, airports and roads.

About 65 per cent of the CEOs said the major source of investment would be domestic equity and foreign direct investment (FDI), followed by external commercial borrowing (ECB).

However, it was felt that the recent ceiling on the amount of ECBs to be raised could slowdown investment in the infrastructure sector through the ECB route.

UNI

Please Wait while comments are loading...