India Needs Rs 26 lakh Crore In 5 Years To Fund Infra Projects

A study conducted by industry body Progress, Harmony and Development Chamber of Commerce and Industry (PHDCCI) has revealed that the Narendra Modi government needs Rs 26 lakh crore for the next five years in order to finance infrastructure projects for its ‘Make in India’ initiative and a growth rate of 7-8%.

The study also said that there is a need to further relax investment norms for pension funds and insurance firms so that their capital can be used to finance infrastructure projects.

"Of the estimated Rs 26 lakh crore for infrastructure projects, close to 80% will be needed for the power, roads and urban infrastructure. In urban infrastructure, municipal bodies are likely to need significant investments for constructing urban roads, expanding transport and revamping water supply and sewerage infrastructure," said Alok B Shriram, president, PHD Chamber.

“In urban infrastructure, municipal bodies are likely to need significant investments for constructing urban roads, expanding its transport and revamping water supply and sewerage infrastructure,” the study showed.

The study also noted that 70% of the amount required for infrastructure financing need to be funded through debt and up to 14% may come through external commercial borrowings. Rest of the amount can be obtained through bonds.