C Shivakumar
Chennai:
As the state government
has estimated Rs 15 lakh crore investment for infrastructure in the next 11
years under Vision 2023, plans are afoot to form a separate development agency
to finance the projects.
Industry department sources told Express that the plans for
Tamil Nadu Investment Promotion Program (TNIPP) to further improve the
investment climate through strengthening the policy framework and enhancing the
quality of urban infrastructure is at an initial stage.
Industry sources said neither state nor municipal budgets
can fully meet the necessary investments for infrastructure development, as
such a large portion of infrastructure needs to be financed by the private sector.
Currently, the private sector funding for infrastructure is only
15 per cent and by 2023 it is expected to cross 42 per
cent. Similarly, the state’s contribution, which is 60 per cent is expected to
come down to 28 per cent, according to Vision 2023 document.
Interestingly, private players are shying away from
investing in urban infrastructure as they feel financing urban infrastructure
is too risky and costly. As such, plans are on for a development agency to make
these investments bankable by reducing costs, shouldering some of the risk and
developing new financing mechanisms, sources said.
The investments could include road widening, small bridges,
distribution lines, water supply and industrial parks, and the focus will be on
Greater Chennai Metropolitan Area which includes surrounding peri-urban areas.
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