New Delhi, March 20 (IANS) About 40 percent of the country's road projects put up for competitive bidding have found no takers due to the economic slowdown, a Planning Commission member said here Friday.
'Of the 60 road projects that had been put up for competitive bidding, 40 percent received no bids,' Planning Commission member Kirit Parikh said.
He was speaking at the India infrastructure meet 2009, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) in association with the ministries of shipping, road transport and highways, railways and civil aviation.
According to Parikh, the major reason of the lack of private participation in infrastructure projects is expensive finance and high perception of risk.
'Seeing huge infrastructure projects lying pending, there is a need to further reduce the interest rates for the infrastructure projects,' Parikh added.
According to World Bank estimates, India needs to spend $500 billion in the five-year period ending March 2012 to upgrade its infrastructure.
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