Greater Noida, May 4 (KNN)  The private sector is no longer willing to bet on infrastructure as the projects involve long - term gestation  periods necessitating multilateral institutions to chip in and finance the key areas of growth, Prime Minister Manmohan Singh said today.

  “Adequate investments in the much- needed infrastructure sectors require timely access to capital. As investments in infrastructure are inherently long-term and the private sector continues to be risk averse in many cases, a concerted global effort towards infrastructure financing and investment has to be high on the global agenda. This is where Multilateral and Regional Development Banks come in, “ the Prime Minister said at the Governors’ meeting of the Asian Development Bank here.
 
  In a country like India, lack of  infrastructure like roads, electricity, railways,  ports and airports are the main bottlenecks for economic growth. The lack of basic infrastructure lead to hike in the transaction costs for the industry, trade and exporters.  

The Prime Minister said  while there was a need for more funding to the infrastructure sector , the level of lending that the ADB can sustain is projected to come down. “At this juncture, ADB should take the initiative to find innovative ways to channelize global savings into infrastructure projects in Asia Pacific. ADB’s good rating and technical expertise can be leveraged to raise resources in domestic and international markets through appropriate instruments’’.

He also said the demographic advantages ( having more of the youth power) can take place if investment in education, skill development take place. “We need effective institutions and effective policies to make this happen. Adequate investments in  health, primary and higher education, skill development, as well as industrial sectors that can provide gainful employment, are very crucial.”

Meanwhile, holding of the ADB meeting here is being seen as a boost to the growing Noida-Greater Noida in the National Capital Region. The area which boasts of the country’s only Formula –I race track is coming up as major convention centre , capable of organising big international meetings. No wonder, several start category hotels and realty projects are coming up in the area. KNN