The Indian government this week released details of a plan outlining expenditure of INR 102trn (USD 1.4trn) on infrastructure through March 2025.
The National Infrastructure Pipeline will add projects worth another INR 3trn by the end of this month, Finance Minister Nirmala Sitharaman said at a press briefing in New Delhi on Tuesday.
The government will look at measures to improve debt funding and at alternative investment funds to provide most of the debt finance for the projects, she said, adding that they will be spread across 21 ministries and 18 states and union territories. While the federal and state governments will contribute 39% each to the costs, the private sector will contribute 22%.
The expenditure plan includes both ongoing projects and those that are yet to be awarded.
“By 2025, we expect the private sector contribution to rise to 30%,” said Sitharaman, adding that the first edition of an annual Global Investors’ Meet on infrastructure will be held in the second half of this year.
Of the total expenditure outlined, energy will account for 24%, according to the finance ministry. Roads will receive 19% while urban infrastructure and railways will get 16% and 13%, respectively.
The pipeline includes both brownfield and greenfield projects by the federal and state governments as well as those under the public-private partnership (PPP) model. About INR 42.7trn (43%) worth of projects are ongoing while INR 32.7trn are at the concept stage.