Projections tell us that the Indian economy will grow at a pace of 7.5 per cent by the next financial year -- or 2000-01 -- from the current rate of growth in GDP of 5.6 per cent. This projection is based on the premise that the investment rate goes up to 30 per cent of the GDP -- from the current rate of 25 per cent.

And a major part of this incremental investment would need to be channeled into infrastructure development.Out of this, significant investment will have to be made in transport infrastructure. Since huge investments are required in the transport sector, which cannot be met by the Government, the Government of India has decided to encourage private sector participation in infrastructure.