Chidambaram calls pvt players to invest in infrastructure

NEW DELHI: Pegging a massive resource requirement of 363 billion dollars over the next five years for development of infrastructure in India, Finance Minister P Chidambaram on Saturday invited private sector to pitch in with the support of the government in this crucial area for ensuring over 8 per cent growth in economy.

"Economy is expected to grow at 8 per cent or more in the 11th plan. Unless investment grows at the same pace, it will not be possible sustain the economic growth," he said addressing the day-long summit on infrastructure convened by the Planning Commission.

Chidambaram said infrastructure has long remained in the domain of public sector which resulted in inadequate development. Hence, there was a need for participation for the private players who are flush with funds to invest in the sector.

He said in the 10th Five Year Plan Rs 11,00,000 crore investments were required in infrastructure and by 2012 Rs 2,20,000 crore were needed to be invested in national highways, Rs 40,000 crore on airports and Rs 50,000 crore in ports.

Chidambaram highlighted that in the first 20 months of the UPA government the economy grew by an average of 8.5 per cent and expressed confidence that it would grow at more than 8 per cent in the second quarter of this fiscal.

He, however, said the rapid pace of growth has exposed the infrastructure deficiencies in the country which were particularly obvious in congested highways, ports and airports.