New policy to boost infra investment

The government will soon come out with a comprehensive policy to drive more resources to the infrastructure sector based on the PPP model for infrastructure development. It proposes to spend Rs 2.72 lakh crore on the transport and energy sectors out of the Rs 5.92 lakh crore earmarked in the Central Plan for 2011-12. The allocation for the sector accounts for 45.95 per cent of the total plan outlay.This marks an increase of 9.68 per cent over the budget estimates of the previous year. Since investment in infrastructure is critical for maintaining the growth trajectory of the economy, the government intends to continue its focus on the sector. Besides raising the outlays in the Central Plan, the Budget announced other important initiatives for funding the projects, including those in the private sector and the PPP models. The major initiatives include creation of an infrastructure debt fund and raising the limit of foreign institutional investors   (FII) in corporate bonds.