To encourage greater private participation in investment of infrastructure sector, Finance Minister P Chidambaram has called for more innovative financing solutions for sector. For 12th five year plan (2012-2017), investments in the infrastructure sector has been pegged at around $1 trillion and the share of private participation in the total investment in infrastructure is projected at 47%.
During the launch of India Infra Debt, India's first infrastructure debt fund under a non-banking finance company structure, finance minister said 'to mobilize the resources of this tune many more institutions are required to share this responsibility. Promoters of Infra Debt should provide sound management to make these projects successful'. The $2-billion fund, India Infra Debt is promoted by Bank of Baroda, Citibank, ICICI Bank and LIC and will finance its first project by the end of the current fiscal.
Infra Debt has identified infrastructure projects, which have completed minimum one year of operation, whereas the government has already set up a cabinet committee with PM as its head for infrastructure investments to expedite approval and clearances of projects.
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