According to a report jointly prepared by KPMG and industry body Confederation of Indian Industry (CII), India may require around $60-$100 billion private equity and venture capital funds for infrastructure projects by this year.
It may be noted that the government set a target of over $1 trillion investment in the infrastructure sector during the 12th five-year plan.
In order to attract private investment in infrastructure sector, experts suggest government to address some of the policy issues plaguing the sector.
In recent months, the government has reformed fuel subsidies, allowed foreign investment in multi-brand retail and set up a panel under the prime minister to speed up clearances for projects worth over Rs 1,000 crore, helping improve sentiment somewhat.
The government's reform measures are going to help in fundraising in 2013, but it will take longer as investors are currently sitting on negative returns, some experts feel.
Meanwhile, Macquarie Capital plans to launch a $1.1-billion fund and invest a part of the money in India's infrastructure. The new Macquarie fund is expected to be registered in Singapore, and will closely consider investment opportunities in Sri Lanka and South East Asia apart from India.
While it is still early days, analysts are cautiously optimistic that 2013 will prove to be a better year for investments in the country's infrastructure sector.