Financing Infrastructure Projects Through Public–Private Partnerships in India

India has been suffering from a huge deficit in infrastructure facilities. The Indian government perceives the public–private partnership (PPP) model as the preferred mode to bridge this deficit and has initiated several measures in that regard. This paper discusses the basic aspects of PPP and how it works in India. Financing for infrastructure is one of the major issues. This paper explains various issues such as overdependence on commercial banks for debts; inadequate financing from infrastructure finance companies; issues in external commercial borrowing; nonavailability of mezzanine financing; partial availability of insurance, pension, and provident funds; and nonfinancing issues that are plaguing infrastructure finance in India. The recent improvements such as infrastructure debt bonds, relaxed norms for external commercial borrowing, and reasonable exit options are also examined. The paper suggests various financial reforms that are needed for PPP financing in India such as tapping into savings, allowing foreign direct investment, increasing the cap on viability gap funding, allowing balloon payments, giving impetus for corporation bonds, and building infrastructure corpus.

• Record URL:
  • https://doi.org/10.3141/2450-15
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/isbn/9780309295383
• Authors:
  • Ramakrishnan, T S
• Publication Date: 2014

Language

• English

Media Info

• Media Type: Print
• Features: References;
• Pagination: pp 118–126
• Monograph Title: Revenue, Finance, Pricing, and Economics
• Serial:
  • Transportation Research Record: Journal of the Transportation Research Board
  • Issue Number: 2450
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Debt; Financing; Infrastructure; Project management; Public private partnerships
• Uncontrolled Terms: Finance reform
• Geographic Terms: India
• Subject Areas: Administration and Management; Economics; Finance; Policy; Transportation (General); I10: Economics and Administration;

Filing Info

• Accession Number: 01515795
• Record Type: Publication
• ISBN: 9780309295383
• Report/Paper Numbers: 14-4518
• Files: TRIS, TRB, ATRI
• Created Date: Feb 25 2014 9:15AM