India Plans to Increase Investment in Infrastructure

India Plans to Increase Investment in Infrastructure

Mr. Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission expressed an urgent need to increase investment in infrastructure, after the global financial crisis choked inflows in mega projects. Mr. Ahluwalia stated that the government would draw up an estimate for additional spending on infrastructure projects within the next 10 days.

Mr Ahluwalia said, "In the plan, we have said we need $500 billion or so out of which, $350 billion we will be getting anyway. Even in normal circumstances, there was a gap of funding. This year, because of credit squeeze resulting from the global downturn, the gap is much larger."

Mr. Ahluwaia was speaking at a function to mark co-operation between the Plan Panel and UK’s Department for International Development (DFID).

Mr. Ahluwalia and UK’s Secretary of State for International Development, Mr. Douglas Alexander, agreed that there was a need to improve methods for assessing whether policies were delivering on the ground and to make sure that the programmes were being implemented in the interest of the poor. Mr. Ahluwalia said, “People have a right to know whether development programmes work, and that tax payer’s money is being spent effectively.”

Mr. Alexander said, “We will take forward the evaluation of our own contributions to government programmes. We will also support the Planning Commission in its broader work on impact valuation. This collaboration will pave the way for better designed policies that deliver better results, in India and worldwide.”

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