NEW DELHI: Aiming at an annual 10 per cent growth, the Prime Minister, Dr Manmohan Singh on Tuesday said investment in infrastructure sector should be doubled to an ambitious $1 trillion (Rs 41 lakh crore) during the 12th Five Year Plan ending 2017 from the current level.

Asserting that a successful infrastructure development strategy would depend critically on implementation, he said, “I urge the Finance Ministry and the Planning Commission to draw a plan of action in achieving this level of investment.”
He underscored the need for private participation for achieving the one trillion dollar investment target, which is four times than that in the Xth plan and double from the XIth, but said lack of financial viability of many of the projects could come in the way.
“The central government has dealt with this problem by offering a capital subsidy, which is completely determined through the bidding process,” he said, adding that this viability gap funding process could be accessed by states, as well.
Dr Singh said a growth rate of 10 per cent, though ambitious, was not impossible and would hinge on “continual improvement in our policy regime and our implementation procedures.”
The huge investment of $1 trillion is a tad lower than the current size of Indian economy.
The Prime Minister exuded confidence in the Indian economy saying it would grow by 8.5 per cent next fiscal and 9 per cent a year later against 7.2 per cent estimated in the current fiscal.
“I believe that we need to do even better. For eliminating poverty and providing productive employment for our young population in the near future, we must aim at accelerating the pace of economic growth to about 10 per cent per annum,” he said at the inauguration of conference on ‘Building Infrastructure: Challenges and Opportunities.
After growing at over 9 per cent in the three preceding year, India’s economic growth declined to 6.7 per cent last fiscal due to the global financial crisis.
However, due to the three fiscal stimulus packages given by the government to prop up the economy, the Central Statistical Organisation (CSO) has estimated economic growth at 7.2 per cent in the current fiscal.
“These rates are well above what is seen in the developed worlds, and reflect the underlying strengths of our economy,” he added.
Dr Singh said, double-digit growth would not happen automatically and would require infrastructure development across the country to make it inclusive.
He said power sector is crucial for fuelling the 10 per cent growth, while outlining the growth drivers for the sector.
“The capacity addition achieved already in the Eleventh Plan period is much higher than the achievement anytime in the past. But we have made less progress in this area than we should have,” the Prime Minister said.
Power shortages remain a problem in many parts of the country and the distribution segment, which is entirely in the states, continues to be fragile, he added.
The Prime Minister said the government is trying to tackle the problem of high transmission and distribution losses through a restructured Accelerated Power Development and Reform Programme.