NEW DELHI: The Finance Minister, P. Chidambaram, has invited private players to participate in the development of the country's infrastructure entailing a funding requirement of $363 billion over the next five years if an overall growth rate of eight per cent is to be ensured.

Speaking at the inaugural session of the conference on infrastructure convened by the Planning Commission here on Saturday, wherein Prime Minister Manmohan Singh later promised a transparent policy framework for public-private partnership (PPP) projects, Mr. Chidambaram said: "[The] economy is expected to grow at eight per cent or more in the 11th Plan. Unless investment grows at the same pace, it will not be possible sustain the economic growth.''

The reason for the inadequacy in infrastructure, Mr Chidambaram said, was the fact that its development had remained in the public sector domain for long. With the private sector flush with funds, its participation in infrastructure development was now essential, he said.

Addressing another session, Mr. Chidambaram conceded that there was a virtual absence of long-term instruments for infrastructure funding and noted that there was a possibility of some movement on the issue of pension and insurance bills over the next few weeks with the support of coalition partners. Alongside, the Finance Ministry, he said, would soon implement the recommendations of the R. H. Patil Committee on corporate debt, in consultation with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), for deepening and broadening the long-term financing market. This, he said, would especially cater to the development of infrastructure, a sector in need of over $65 billion annually over the next five years.

"Nearly no long-term instrument is available. We need to press ahead with pension and insurance products for which legislation has to be put in place. We are working with coalition partners for this and hopefully in next few weeks there will be some movement,'' Mr. Chidambaram said at the session attended by bankers, investors and State government representatives.

India, Mr. Chidambaram said, should look at the globally available cheaper funds and modify its policies and practices to take advantage of such funding options, be it from private equity funds across the globe or institutions from Japan. Noting that most people in the Government were scared of such funds, he said, "We are part of [the] global economy and must take advantage, if [the] global economy is willing to lend money at less rate.''

Responding to queries, Mr Chidambaram said the absence of a shelf of PPP projects could be a major impediment and asked States and Central ministries to identify them and invite bids. To show the Centre's willingness to address such issues, he talked to his Ministry officials, leading bankers and financial institutions and assigned responsibilities such as identification of consultants to IDFC.

Once a consultants' panel is finalised, the Finance Ministry would then send the list to State governments for chalking out new projects. The Centre, Mr Chidambaram said, would bear the cost of these consultants.

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