Even as we grapple with implementation issues in infrastructure, the problem of raising debt worth Rs 9,88,035 crore remains a daunting task for the government, according to the Economic Survey 2008-09. The Planning Commission has envisaged an investment of Rs 20,56,150 crore or $500 billion for the 11th Plan.

However, even after totalling the credit available through major channels such as external commercial borrowings, bank credit, pension and insurance companies and non-banking finance companies, there remains a gap of Rs 1,62,496 crore, according to the Survey.

In 2007-08, the country needed as much as Rs 1,31,718 crore for infrastructure investment but amount available through the above sources matched up to only Rs 1,02,370 crore, leaving a gap of as much as Rs 30,000 crore. The situation persisted in 2008-09, where the requirement stood at Rs 1,55,704 crore but these sources of finance could yield only up to Rs 1,26,444 crore. The gap yet again was roughly about Rs 30,000 crore.

Investment from insurance companies was one of the highest for the sector in 2008-09 at Rs 10,399 crore while that of ECBs stood at Rs 6,915 crore (down by about 30 per cent from 2007-08). However, the sector garnered as much as Rs 20,000 crore though private placements (debt not equity) in 2008-09. A chunk of this went to power generation and supply at roughly Rs 12,700 crore.

To tide over some of the deficit, the government has allowed IIFCL to raise $5 billion through bonds. However, this would help tide over only part of the deficit. The government is also talking with multi-lateral agencies and is also considering setting up infrastructure funds.

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