Ajay Saxena of Asian Development Bank informed that government might consider proÂviding soft loans to developers of projects on public private partnership (PPP) basis if there is a shortfall in revenue.
The government would provide the loan as per the draft rule on PPP projects on revenue support released by the Planning Commission.Revenue supÂport can be considered mostly for greenfield projects, where preÂcedents or ground data are minimal. Debt and operation and maintenance obligations shoÂuld be covered through a revenue shortfall loan, he said to a news agency.
Saxena said India has reached the second stage of PPP maturity.The PPP policy and draft rules, which are in place, would remove all uncertainties and help attract a lot of investments of the proposed $500billion in PPP projects, he added.
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