Two-thirds of the infrastructure investment, as per the revised plan, was to be funded by the public sector (central and state governments) while the remaining one-third was to come from the private sector.
IFC, a member of the World Bank Group, has invested Rs 6.67 billion ($103 million) in L&T Infrastructure Finance Company Ltd. by subscribing to the first official Green Bonds in India. This is in line with IFCÂ’s strategy to support renewable energy infrastructure in the country and also develop the capital markets.
I think in many sectors the policies are conducive. The most recent example is the Rewa Ultra Mega Solar Project, where IFC was the lead public-private-partnership (PPP) transaction advisor. We helped structure the bidding process to include a three-tiered payment security mechanism.
The Inland Waterways Authority of India (IWAI) was set up in 1986. Since then till 2008, only five waterways could be declared as National Waterways. Work could be started on only three of them: National Waterway or NW-1 that is the Ganga National Waterway, NW-2 that is the Brahmaputra Waterway and NW-3 comprising the backwaters of Kerala.
Despite having the largest rail network in Asia, Indian Railways has not been able to make much progress. The reasons for its dismal growth are known. Union Railway Minister Suresh Prabhu has ambitious plans of expansion and capacity building. In this regard, he says that in the high density routes, there has been considerable underinvestment, resulting in congestion.
Infrastructure is one of the top priorities for the Indian government. The right policy framework will give confidence to both domestic and international investors and create a competitive environment to deliver cost-effective services to end-users.