Infrastructure Sector & Infrastructure Policy: Is There A Big Boost?
Infrastructure Sector & Infrastructure Policy: Is There A Big Boost?
Infrastructure Sector & Infrastructure Policy: Is There A Big Boost?
& INFRASTRUCTURE
POLICY: IS THERE A BIG
BOOST?
Presented by:
Manoj Kumar
Ravi Kumar Sihag
C Sameer Raja
Rajanikant Chilumula
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WHAT IS INFRASTRUCTURE?
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WHY INFRASTRUCTURE?
Demanded by
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WHAT IS MAGIC OF
INFRASTRUCTURE
DEVELOPMENT?
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NATIONAL
INFRASTRUCTURE
• World-class infrastructure, improve quality of life
• 111 lakh crore infrastructure projects during 2020-25
PIPELINE
• Budget 2020-21 increased no. of projects in NIP from
~6800 to 7400
• 1.10 lakh crore projects are already completed
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Urban infrastructure
Expansion of metro rail network and city bus service :
Metro Lite and Metro Neo
Innovative PPP model
Power infrastructure
Revamped reform based, result linked power distribution
sector scheme – 3.05 lakh crore
Comprehensive National Hydrogen Energy Mission
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INFRASTRUCTURE FINANCE
‘Patient Capital’ is needed
• Existing financial institutions can’t cater to needs
• Three thrust areas to increase funding for infrastructure
1. Creation of institutional structures
2. Focus on monetizing assets
3. Enhancing the share of capital expenditure.
• To increase foreign investment into infrastructure funding
• Allowed Infrastructure Debt Funds (IDFs) to raise capital by issuing
zero coupon bonds
• FPIs are now allowed to subscribe to debt instruments of INVITs
(Infrastructure Investment Trusts)
DEVELOPMENT FINANCIAL INSTITUTION
Developmental and • High risk appetite
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QUESTIONS TO BE ANSWERED
• Revenue expenditure disguised as capital expenditure
• How professional the management of DFI will be?
• How can we attract foreign investments before creating
conducive environment?
• Problems in infrastructure lie beyond investment alone
• Issues with Asset Monetization – legal hurdles, asset titles,
encroachment
• Liquidity support to DISCOMs is not enough
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“Overall, the union budget
2021-22 admirably rises to the
challenge of creating an
enabling environment to deliver
on the promise of National
Infrastructure Pipeline in the
next few years”
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THANK YOU
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