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Indian Railways | Today and Tomorrow

Infrastructure: Telecom, power, ports and road sector hit by tepid private investments

2017-04-21

With slippages across sectors but quantitatively higher in telecom and electricity, India’s infrastructure investments in the 12th Five-Year Plan period (FY13-FY17) fell 32% short of target. The Plan, which is the last in the series, saw investments of `38 lakh crore in 12 specified infrastructure sectors, compared with the target of Rs 55.75 lakh crore.

Of the amount invested in these sectors in the 12th Plan, the public sector contributed two-thirds. While investment data for 2016-17, the terminal year of the Plan, is provisional, sources said the shortfall could be less than 15% in the case of public investment (Centre, states and PSUs combined), but a sharp 53% for private investments. A lower-than-estimated demand growth forced private power developers to go slow on projects. The Roads and Highways, Ports and Railways Sectors also had their set of sector-specific problems, apart form the overall economic slowdown during the Plan period.

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