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Union Finance Minister Pranab Mukherjee has said that
India's aim of investing Rs.41,00,000 crore on the infrastructure
sector in the 12th Plan (2012-17) would most likely face a
shortfall of 30 per cent or Rs.12,30,000 crore.
"The main constraint in the funding for infrastructure is the
mismatch of asset-liability by the banks and the risks concerning
their concentration. This is all the more problematic because
India gets support from banks which finance its infrastructure
projects," Mukherjee.
The FM was addressing members at a meeting of the Parliamentary
Consultative Committee attached to his ministry on
infrastructure financing.
A robust corporate bond market is required to bridge the financial
gap by aiding the banks in addressing their asset-liability
mismatches with regulatory changes to bring in more foreign
capital, most importantly, debt capital.
The corporate bond market has to be strengthened so that
credits can be enhanced for funding the infrastructure projects,
and also access to long-term funds from insurance and pension
funds. For the first two years of the 11th Plan period, the target
investment was Rs.9,81,119 crore while the actual investment
was Rs.10,65,828 crore, he said.
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