Infra sector debt gap of over Rs 1.62 lakh cr in 11th plan

NEW DELHI: There is a debt funding gap of over Rs 1.62 lakh crore in infrastructure financing for the current 11th Five Year Plan but the government has no plans to channelise foreign savings in the sector, Parliament was informed on Friday.

"There is...a funding gap of Rs 1,62,496 crore or $40.62 billion in the debt component (for financing infrastructure)," Minister of State for Finance Namo Narain Meena told the Lok Sabha in a written reply.

He said that according to the projections of the Planning Commission, the total requirement of debt for infrastructure financing, both public and private, during the 11th Plan is likely to be Rs 9,88,035 crore or $247.01 billion.

Of this, debt financing available has been estimated at Rs 8,25,539 crore or $206.38 crore.

The minister said there is no proposal for using foreign savings in the infrastructure sector.

"The government has no proposed dedicated debt funds to channelise foreign savings into the infrastructure sector," Meena said.

However, he added that a concept paper on setting up an India Infrastructure Debt Fund has been submitted by a committee constituted by the Planning Commission under the chairmanship of HDFC Chairman Deepak Parekh.

Replying to another question, the minister said that the government has approved a Rs 626 crore scheme for computerisation of state treasuries.

"The scheme, to be implemented in about three year beginning 2010-11, would support states and union territories to fill the existing gaps in their treasury computerisation, upgradation, expansion and interface requirements, apart from supporting basic computerisation," Meena said.

The project is intended to bring more efficiency to the budgeting process and improve cash flow management, besides bringing in transparency in the public delivery systems of states and union territories, he added.