According to Finance Minister Pranab Mukherjee, India’s aim of investing Rs. 41 lakh crore on the main infrastructural sector in the 12th plan period of 2012-17 will most likely face a lack by 30 percent or a good Rs. 12.3 lakh crore.

According to the finance minister, 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.

What is needed is now is a robust corporate bond market which can help in bridging the financial gap by aiding the banks in addressing their asset-liability mismatches.

Moreover, certain regulatory changes are also required to bring in more foreign capital, most importantly debt capital.

There is also the urgent need to strengthen the corporate bond market so that credits can be enhanced for funding the infrastructure projects, and also to access long-term funds from insurance and pension funds. For the first 2 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.