For a sustained growth of economy, infrastructure growth is a prerequisite as envisaged in various empirical evidences. India is also facing ‘infrastructure deficit’ as about more than Rs. five lakh crore is the estimated funding gap and to overcome this problem $1 trillion investment is required during the period according to the 12th Plan (2012–2017) estimates. The Interim Report of High Power Committee on Financing Infrastructure (August, 2012) observes “the pattern of inclusive growth averaging nine percent per year can be achieved only if this infrastructure deficit is overcome and adequate investment takes place to support quality of life to both rural and urban communities.” According to the Planning Commission estimates about 53% of the infrastructure investment is needed for funding through budgetary support and the balance will be financed through the private sector participation. For achieving this target, the share of the private sector in investments will have to be raised up to as much as 48% from existing 37%. Aside from slipping investment, the infrastructure sector in India is also at crossroads as the pattern of growth in infrastructure sector has been skewed because most of the investment in infrastructure came in telecommunication sector while power, railroad and shipping accounted for lesser investment. CMIE finds the biggest challenge before the infrastructure sector in India are stalled projects because as on 31st March, 2014 more than worth $ 600 million infrastructure projects are stuck up due to environmental or land clearance. The mode of financing infra projects are commercial banks & financial institutions, borrowings including ECBs, government funding and PPP mode. Infra projects require massive funds and banks are apprehensive of the mismatch between asset and liability as banks funds can be extended to a maximum of 10 years while infrastructure are long gestation projects of 15–25 years of duration for ensuring regular profitable cash flows. The present government intends to develop a new model of infrastructure financed by inviting capital market, particularly the debt market to bridge the funding chasm for boosting growth. The savings which is routed in pension and insurance funds can also be explored as a possible investment avenue for infra funding in India. But savings in insurance and pension funds contribute a small chunk of total savings. The New Pension Scheme (NPS) is also in initial stage. Take away financing and Infrastructure Development Funds (IDFs) are other options to finance huge investment needs of the infrastructure sector in India. The equity participation and debt market are yet to be explored as confidence and trust of retail investors is shaky. The co-ordination among state, governments, central government, local people, NGOs and civil society organisations has to be established so that infra projects are not stalled for want of environmental and land clearances. The present paper is an attempt to review the present status of funding in infrastructure by exploring the alternate possibilities in funding.