structure needs 8 per cent GDP investment: Montek
17 May 2007
New Delhi: Expressing concern over low investment in infrastructure, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Wednesday said the country would need to spend eight per cent of its GDP on the sector during the 11th plan to ensure a 10 per cent economic growth.
"Investment in the infrastructure sector is not enough for achieving a 10 per cent growth. Investment should rise to 8 per cent during the 11th five year plan to achieve a sustainable growth rate," Planning Commission Deputy Chairman Montek Singh Ahluwalia said here.
The infrastructure sector, which presently enjoys an investment of below 5 per cent, would need an annual expenditure of around Rs 1 lakh crore during the plan.
Montek ruled out a separate infrastructure ministry to address the issues in the sector. "I don't think there is any need for a separate ministry of infrastructure. We can continue with the present system and gain experience," he said.
"There is almost no support among the concerned ministries for an overarching regulatory framework for the infrastructure sector," he pointed out and suggested at the appellate stage there was no need for a regulator for the sector.
"The Planning Commission should be the focal point to convey the message on infrastructure," he opined.
The Deputy Chairman, however, said there could be a single regulator for the entire energy sector.
He also said the responsibility of improving urban infrastructure cannot be the sole responsibility of the centre, as it has the onerous task of improving rural infrastructure.
