Press Information Bureau

Government of India

Ministry of Finance

02-September-2011 18:19 IST

Investments in Infrastructure

The financing requirements of infrastructure projects in States are met either through overall budgetary support , loans raised or Public Private Partnerships(PPPs). No agency of the Central Government undertakes a centralized analysis of the interest component of individual infrastructure projects at the State level. Infrastructure projects generate positive externalities in terms of fiscal stimulus to the economy and overall economic growth. Hence, the investments in infrastructure are encouraged by the Union Government. The interest component of PPP project is met by the private sector entities to whom the projects are awarded.

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.

DSM/SS/PM

Infrastructure financing: PPPs and budgetary or loan routes, with interest costs borne by private sponsors under PPP contracts. Financing of State infrastructure projects occurs via budgetary support, loans, or Public Private Partnerships (PPPs), and the Union Government does not undertake centralized analysis of the interest component of individual State-level projects; under PPPs the interest component is met by the private sector entities awarded the projects.