India may turn to private sector to help plug US$1.5t infrastructure gap

Mumbai

INDIA is considering turning to the private sector to help plug a chronic shortage of capital for infrastructure projects.

The Reserve Bank of India is proposing that Asia's third-largest economy offer licences to private companies to set up infrastructure banks. That could help finance US$1.5 trillion in roads, ports, power and other projects over the next 10 years and bridge a gap that ratings agency Standard & Poor's says is shaving off almost 5 per cent of the country's gross domestic product.