The massive investment target of Rs. 3,23,000 cr announced by the government for the 12th Five Year Plan, more than double of the Rs. 1,52,201 cr spent during the previous plan period, is undoubtedly good news for the Indian construction and infrastructure industry. Private sector share in this development is also slated to rise from the current 41 per cent to 51 per cent i.e. from the present level of Rs. 62,630 cr to Rs. 1,66,738 cr.
The revision is based on increased interest for developing road projects shown by private builders as a result of which NHAI has been able to able to award 21 out of the 33 ongoing projects at a premium. Industry analysts expect that this will help NHAI reduce its projected market borrowings by half, and the authority now expects to have to generate only Rs 83,000 cr instead of the earlier target of Rs. 191,000cr by 2030-31.