The Midid-Term Appraisal of the Eleventh Plan reiterated a known fact that weaknesses in infrastructure, particularly in the energy and transport sectors, are possibly the most important constraints in the growth of the economy in the medium term. Recognizing the importance of the infrastructure development, the Eleventh Plan had estimated that the investment needed over the Plan period was about US$500 billion, compared to a likely ‘business as usual’ projection of US$ 300 billion. It was envisaged that the gross capital formation (GCF) in infrastructure should rise as a share of GDP from 5 percent in 2006-07 to 9 percent by the end of the Plan period. On the above basis, the aggregate capital formation would rise from Rs.2.6 lakh crore in 2007-08 to Rs.5.74 lakh crore in 2011-12 at constant 2006-07 price. Total investment on this basis during the Eleventh Plan was projected at Rs.20.5 lakh crore (or US$ 514.04 billion at 40/$) or 7.6 percent of GDP. This investment was to be achieved through a combination of public infrastructureinvestment and private initiative, including through PPP. The relative role of the public and private sectors was expected to vary. In some sectors such as irrigation and water resources management, construction of rural roads, capital dredging at major ports, as well as in certain economically or situationally disadvantaged regions, the bulk of the investment in infrastructure would have to come from the public sector.