Millennium Post

12th plan outlay much lower than expected

Aimed at sprucing up the country’s roads and bridges to bolster economic growth, the Planning Commission has projected Rs 9.2 lakh crore expenditure over the next five years.

‘The total investment is projected at Rs 9,02,071 crore during the 12th Plan (2012-17), of which Central and States’ investments’ will be Rs 3,58,845 crore and Rs 2,66,851 crore respectively,’ Planning Commission has said in a note.

The commission is aiming at an annual average economic growth of 8.2 per cent during the plan.

While the investment from the states and Centre would account for 68 per cent of the total projected investment, the remaining 32 per cent or Rs 2,94,374 crore, it hopes, will come from the private sector.

The total investment in roads and bridges during the 11th Plan stood at Rs 5,16,180 crore, in which the Centre’s contribution was 42.85 per cent or Rs 2,21,649 crore.

States had contributed Rs 1,91,517 crore or 37.02 per cent and the remaining 20.13 per cent, valued at Rs 1,03,014 crore came from the private sector.

The Commission expects the central investment to grow at a compounded annual growth rate of 12 per cent during the Plan in view of the ability of National Highways Authority of India (NHAI) to raise market borrowings for national highways. ‘The states’ investment is expected to grow at a CAGR of nine per cent on account of renewed emphasis in the states to allocate more budgetary resources for state roads,’ it said.

The investment from the private sector is being expected to grow at a CAGR of 20.8 per cent in central roads and 16.6 per cent in states’ roads.

The actual investments during the 10th Plan period stood at Rs 1,52,616 crore on roads and bridges.
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