According to the Planning Commission, investments in infrastructure should be 10 - 11% of GDP, to sustain a GDP growth of 9%. The 11th Indian Plan was formulated with an investment target of INR20t or US$420b (+130% vs 10th Plan).The government has emphasised on private participation through Public private partnerships (PPP) to gain efficiencies and help funding. Private sector contribution is actually going to increase from 16% in 10th Plan to 30% in 11th Plan. As a result, India is the world's largest Public private partnership (PPP) playground.Private equity investments in infrastructureGiven that the market is getting bigger and bigger, investments in Indian infrastructure have led the flood of private equity (PE) inflows that took place during the first six months of 2011.Business Standard reported the following: "the PE industry has witnessed about 241 deals worth $5.7 billion in the first six months, against 187 deals worth $3.7 billion during the same period of 2010, an increase of 54 per cent, according to data from VCCedge, a financial research firm."The list of investments during 2011 so far is the following: 

Target	Investor	Value (million $)
GMR Airports	Standard Chartered PE III	131
SKIL Infrastructure	JP Morgan	400
JV Isolux Corsan NHAI BOT	Morgan Stanley Infra. Partners	200
GMR Airports	Macquarie SBI Infrastructure Fund	200
KMC Constructions	3i India Infrastructure Fund	112
Ind-Barath Energy Uktal	3i India Infrastructure Fund	45
MB Power MP	Macquarie SBI Infrastructure Fund	130
GVR Infra Projects	IDFC Private equity	33
VISA Power	Blackstone group	111
HCC Infrastructure	Xander group	54
Caparo Energy Limited	IDFC Private equity	78.5
Hydel Power Corporation	India Infrastructure	26.5
Soma Infrastructure	JP Morgan	110
Karaikal Port	Ascent Capital	30

 In May, Morgan Stanley's global infrastructure fund said it was investing up to $200 million in a joint venture with a unit of Spain's Grupo Isolux Corsan, which holds rights to build three highway projects in India.In January, Macquarie SBI infrastructure fund had invested $130 million in MB Power, a subsidiary of Moser Baer Projects, engaged in the development of thermal power plant in Madhya Pradesh. In March, Macquarie SBI Infrastructure Investments has invested $200 million in GMR Airports Holding, wholly-owned airport subsidiary of GMR Infrastructure. They have just also got $131 million from Standard Chartered Pvt. Equity (Mauritius) III Ltd, JM Financial-Old Lane India Corporate Opportunities Fund I Ltd, Build India Capital Advisors Llp and JM Financial Trustee Co. Pvt3i India Infrastructure Fund invested in March around $45 million for a minority stake in Ind-Barath Energy (Utkal) Limited ("Utkal"), a subsidiary of Ind-Barath Power Infra Limited (IBPIL); and around $111.51 million in KMC Infratech Limited ("KMCIL"), a subsidiary of KMC Constructions Limited ("KMCCL").The US$1.2 billion Infrastructure Fund is building a balanced portfolio of investments focused on power, road, ports and airports. Since inception, the Fund has invested in Adani Power Ltd, Soma Enterprises Ltd, Krishnapatnam Port Company Ltd, GVK Energy Limited and KMC Roads.There are some questions on whether PE firms will be able to generate the 25 per cent plus returns that they expect from such infrastructure investments where it is more common to expect returns in the range of 15-18 per cent.Update July 23th 2011