Economic Survey 2009-10: Channel savings into infrastructure

Considering the dimensions of the infrastructure deficit in the country, the Economic Survey called for channelling savings for development of core sectors on a large scale.

The pre-Budget document on the health of the economy stated that telecom, power, coal, ports, civil aviation and roads have shown signs of recovery in 2009-10. "However, reaching the target of an infrastructural investment of 9 per cent of the GDP fixed in the 11th Five-Year Plan (2007-12) would be extremely challenging task," it said.

"Efforts are required to channel the long-term contractual savings to infrastructure sectors on a much larger scale," it said.

The Planning Commission has estimated that investment in infrastructure as a proportion of GDP rose to 6 per cent in 2007-08 compared to 4.5 per cent in 2003-04. It also brought attention to removing administrative hurdles, including disputes in land acquisition, rehabilitation, contractual issues, shortage of raw materials, environmental disputes and inadequate availability of skilled manpower for speedy implementation of projects.

As many as 254 projects were awaiting environment clearance whereas the terms of reference were not been decided for 270 projects during the April to November 2009 period.