5.1. Suggestions to Improve Mobilization of Resources

♤ The Economic Survey stressed the need to fill the infrastructure investment gap by financing from private investment, institutions dedicated for infrastructure financing like National Infrastructure Investment Bank (NIIB) and also global institutions like Asian Infrastructure Investment Bank (AIIB) and New Development Bank (erstwhile BRICS Bank).

♤ Tap Cash Reserves of CPSUs – there are 50 CPSUs, which collectively have reserves and surpluses of Rs 2,21,157 crore based upon the Public Enterprises Survey, 2003-2004. However, investment by these CPSUs is not more than 30 per cent of total surplus. This disturbing trend towards underinvestment needs to be reversed at once and the CPSUs reinvigorated to undertake massive capital expenditure, diversifying their activities if necessary. Left parties argues that the Government should also seek special dividends from those CPSUs, which are holding very high levels of liquid reserves, in order to finance expenditure in social sectors or infrastructure.

♤ Effective and efficient shift to Engineering, Procurement and Construction (EPC) contracts model where the contractor is responsible for design and construction on a turnkey basis and for a fixed price. It is expected that about 20,000 km of two-lane National Highways would be developed under this model.