Infrastructure Project Funding Is An Area to Explore Growth Path
A one-day seminar on Private Sector Participation and Innovation in Resource Mobilisation was organised in Mumbai by the Ministry of Finance, Government of India in collaboration with Research and Information System for Developing Countries and FICCI.
The main thrust of the Seminar was to address the critical dimensions of Infrastructure Projects Funding and underline the need for financial support, from Private Sector players.
During the Inaugural Session, several eminent Speakers shared their expert perspectives of the investment landscape in the Infrastructure Sector and also discussed the various initiatives undertaken by the present Government in this regard in last four years.
Speaking, on the occasion, Kumar V. Pratap said, that India’s Infrastructure Sector has received an investment worth $1 trillion in the period from 2007 to 2017, of which, more than a third of this capital was contributed by the private sector. India aims to raise the investment in this sector to $200 billion every tear from the present level of $110bn per annum.
Schemes such as the Brownfield Asset Mobilization for Infra Investments (BAMII), Credit Enhancement Fund for raising Bond Ratings issued by infra companies and the New Credit Rating scale for infrastructure projects creates opportunities for private investors, thereby promoting a steady flow of financial resources into this sector, he added.
Sharing his thoughts on this subject, Mr. Sujoy Bose, CEO, NIIF said that India is a preferred destination for investments especially in infrastructure sector.
He said that with an improving and fast growing economy, the Government led infrastructure projects are getting funded and there is an increase in the flow of Foreign Direct Investments.
To ensure financial investments in the infrastructure sector, the Government of India has financed various projects under National Investment and Infrastructure Fund (NIIF), Infrastructure Investment Trusts (InvITs) and Build Operate and Transfer (BOT) to bridge the gap in the funding space, he added.
Earlier delivering the Welcome Address, Jaspal Bindra, Chairman, FICCI – Maharashtra State Council and Executive Chairman, Centrum Group welcomed the panel and spoke about the opportunities in the Infrastructure Sector in the country relating to private financing.
He added, “The global population will witness a growth of ~2bn people by 2040. The Global Infrastructure Hub Report states that, investment worth $97trillion is needed in the global infrastructure sector of which 50% is required by Asia.