9.28         ndian      onom
     India, while stepping up public investment in                   The Planning Commission65, in its aproach
     infrastructure, has been actively engaged in finding       paper has projected an investment of over Rs. 45
     the appropriate policy framework, which gives the          lakh crore (for about US $1 trilion) during the
     private sector adequate confidence and incentives          Twelfth Plan (2012–17). It is projected that at
     to invest on a massive scale, but simultaneously           least 50 per cent of this investment will come
     preserves adequate checks and balances through             from the private sector as against the 36 per cent
     transparency, competition and regulation.                  anticipated in the Eleventh Plan and public sector
          The Eleventh Plan63 emphasised the need for           investment will need to increase to over Rs. 22.5
     removing infrastructure bottlenecks for sustained          lakh crore as against an expenditure of Rs. 13.1
     growth—proposed an investment of US$500                    lakh crore during the Eleventh Plan. Financing
     billion in infrastructure sectors through a mix            infrastructure will, therefore, be a big challenge in
                                                                the coming years and will equire some innovative
     of public and private sectors to reduce deficits in
                                                                ideas and new models of financing.
     identified infrastructure sectors. As a percentage of
     the gross domestic product (GDP), investment in
     infrastructure was expected to increase to around             uday scheme
     9 per cent. For the first time the contribution            Without improving the performance of the
     of the private sector in total investment in               electricity distribution companies (DISCOMs)
     infrastructure was targeted to exceed 30 per cent.         of the state governments efforts towards 100 per
     Total investment in infrastructure during the              cent village electrification, 24x7 power supply and
     Eleventh Plan is estimated to increase to more             clean energy cannot bear fruit. Power outages also
     than 8 per cent of the GDP in the terminal year            adversely affect national priorities like ‘Make in
     of the Plan, which was higher by 2.47 percentage           India’ and ‘Digital India’. In addition, default on
     points as compared to the Tenth Plan. The private          bank loans by financially stressed DISCOMs has
     sector is expected to be contributing nearly 36 per        the potential of seriously impacting the banking
     cent of this investment.                                   sector and the economy at large.
          An analysis64 of the creation of infrastructure            For financial and operational turnaround of
     in physical terms indicates that while the                 DISCOMs and to ensure a sustainable permanent
     achievements in some sectors have been remarkable          solution to the problem, the UDAY (Ujwal
     during the Eleventh Plan as compared to the                DISCOM Assurance Yojana) was launched by the
     previous FiveYear Plans, there have been slippages         GoI, in November 2015. The scheme also aims to
     in some sectors. The success in garnering private-         reduce interest burden of the DISCOMs, cost of
     sector investment in infrastructure through the            power and their AT&C (Aggregate Transmission
     public-private partnership (PPP) route during the          & Technical) losses.
     Plan has laid solid foundation for a substantial                Due to legacy issues, DISCOMs are trapped
     step up in private-sector funding in coming years.         in a vicious cycle with operational losses being
     PPPs are expected to augment resource availability         funded by debt. Outstanding debt of DISCOMs
     as well as improve the efficiency of infrastructure        were Rs. 4.3 lakh crore by 2014-15, with interest
     service delivery.                                          rates upto14–15 per cent and AT&C losses as
                                                                high as 22 per cent. The scheme assures the rise
       63.  Planning Commission, Mid Term Appraisal of the 11th of vibrant and efficient DISCOMs through a
            Pan ew elhi overnment of ndia,               .
       64.  Planning Commission, while announcing the Approach    65.  Planning Commission, Approach to the 12th Plan ew
            for the 12th Plan.                                           elhi overnment of ndia, .