- Without infrastructure, an economy cannot grow
- Industry and services cannot expand without highways, electricity, ports and airports, rail links and pipelines.
- The 12th Plan projects infrastructure investment of a trillion dollars.
- India is a global leader in public-private partnerships in infrastructure. The private sector financed 36% of infrastructure in the 11th Plan (2007-12), and is expected to finance fully 50% in the 12th Plan.
- Problems for private players: Infrastructure requires heavy loans, often twice as much as equity. Such loans have a fixed repayment schedule. If a project is completed on time, revenue from the project will finance the repayments. But if there are delays of months or years, the project is squeezed badly.
- Other problems for the private players include fuel supply problems, changes in environmental regulations, land acquisition etc.
I will elaborate further on initiatives to address the delicate issues in a later post.