With gathering steam from the demand for a grand stimulus package, it is learnt that the government is mulling an investment of Rs 1,00,000 crore in the infrastructure sector within the next two years. To bankroll the plan, the government may ask Infrastructure Investment Finance Company (IIFCL) to put together a corpus of over Rs 40,000 crore.
As companies and business houses are in a financial bind, this scheme aims to take up infrastructure projects under public-private partnership (PPP) with minimal private investment.
Under the proposed formula, a private sector company can start an infrastructure project with just 15% of the required capital and the balance will be provided by government-owned agencies.