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NT Bureau
Chennai, Jan 17:

        The private sector needs to come forward and invest in building infrastructure that is sustainable and conducive for the increasing urban populace in India, said M Ramachandran, Secretary (Urban Development) at the 'India Infrastructure Investment Forum 2007' jointly organised by the Confederation of Indian Industry (CII) and the Commonwealth Business Council (CBC), here on Monday.

        Ramachandran was speaking at the inaugural session of the two-day forum titled 'Policies, Opportunities and Financing Modules for Power, Transport, Logistics and Urban Development.'

        The government is planning to invest in urban infrastructure through the Jawaharlal Nehru Urban Renewal Mission, he said and added that this is a Rs 100,000 crore programme covering 63 cities across India.

        While economic growth in India has accelerated in the last decade, the country still faces a huge infrastructure deficit. Although the 11th Five Year Plan (2007-2012) envisages a growth of 9 per cent, many experts fear that poor infrastructure growth may slow this growth.

        Vinayak Chatterjee, chairman, CII infrastructure council said, 'The 11th Five Year Plan envisages an investment of $ 350 billion in infrastructure. Around 70 per cent will be by the government and 22 per cent by the private sector. We must work towards channelising private investment; work to establish independent eco regulators; engage meaningfully with organisations like the World Bank and ADB; and invest in long term financing.'

        The optimistic economic environment in India has encouraged British investors to take a closer look at the infrastructure market. 'We are looking forward to a service led infrastructure; this is not just building schools and hospitals but creating a better infrastructure to deliver education and health care,' said Martin Harman, co-chair and senior partner with Pinsent Masons Worldwide.

        Harman said that Public-Private Partnership (PPP) can help build this 'social infrastructure' in India. Duarte Figueira, managing director, sectors group, UK trade and investment, said the key to infrastructure delivery is PPP. 'We look forward to investment opportunities in India and deepen our relationship with it with the support of CII.'

        Even policy planners in India see a greater role of PPP in infrastructure investment. Gajendra Haldea, Advisor to Deputy Chairman, Planning Commission, said the government plans PPP-led projects in building highways and airports, modernising railways and ports and improving the power sector.

        'We have already established the India Infrastructure Finance Company Ltd and hope to attract more private sector investment,' he said that the need of the hour was not only to study where investment can be made, but how sustainable and commercially viable will they be.

        Jamshed J Irani, co-chair from the Indian side defined the agenda of the two-day event. The forum had a large delegation from the UK Trade and Investment group and other private investors.

        The forum had parallel sectoral workshops that addressed the current policies and business opportunities in India; showcase relevant global best practices; and discuss how India could adopt various strategies to enhance and accelerate its infrastructure development.