Previous Year Question

Under the Twelfth Five Year Plan (2012–2017), the Government of India estimated an investment of approximately USD 1,000 billion (USD 1 trillion) for the development of Infrastructure. According to the Planning Commission, this amount was equivalent to approximately ₹55.7 lakh crore at the prevailing exchange rates.

The objective of this investment was to support economic development, industrial production, and commercial activities by expanding transportation, energy, communication, and other infrastructure facilities across the country.

The major infrastructure investment sectors under the Twelfth Five Year Plan were:

1. Energy: Electricity generation, transmission and distribution, renewable energy, and oil and gas pipelines.

2. Transport: Roads, bridges, railways, ports, airports, and urban mass transit systems.

3. Communication: Expansion of telecommunications networks and related infrastructure facilities.

4. Water Resources: Irrigation, water supply, water conservation, and sanitation projects.

5. Storage: Development of storage facilities for agricultural and other products.

Under the Eleventh Five Year Plan (2007–2012), infrastructure investment was approximately USD 500 billion. The Twelfth Five Year Plan targeted an increase to approximately USD 1,000 billion, representing a plan to nearly double infrastructure investment.

To achieve this large investment target, Public-Private Partnership (PPP) was given special importance. According to the Union Budget 2013–14, approximately 47% of total infrastructure investment under the Twelfth Five Year Plan was expected to come from the private sector.

The importance of infrastructure investment is not limited to construction activities. Improved transportation, reliable electricity supply, and developed communication networks influence production costs, market access, and the efficiency of economic activities.