India is likely to miss the targeted $500 billion investment in infrastructure set for

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the eleventh-plan period by about 12 per cent. But plans are afoot to initiate at least two infrastructure debt funds each with $10 billion corpus by end of current financial year, Planning commission deputy chairman Montek Singh Ahluwalia said on Thursday.

The planning commission in its approach paper to the twelfth plan (20122017) have envisaged one trillion dollar infrastructure expenditure on ports, roads, railways and power infrastructures to achieve a nine per cent growth target.

“Goal of achieving one trillion dollars of infrastructure spend in twelfth plan period is a vision and not a dream. We think our investment will probably be little short of the $500 billion target for the eleventh plan period,“ said Ahluwalia at an infrastructure summit held by Ficci.

“I would not be surprised if it (shortfall) is 10 per cent or even 12 per cent short,“ he said. On Wednesday, a study released by consultancy firm McKinsey said that India's infrastructure bus may fall behind on planned expenditure and the gap may widen if certain course corrections are not done.

Over the next five years India is likely to hike spend on creating ports, power and pipelines infrastructure. “To facilitate all these, a balanced view on land acquisition is critical. The planning commission has taken states onboard now to discuss this,“ member of planning commission BK Chaturvedi told the conference. Interest service cost is likely to add another $150 to $200 billion per year to overall costs.