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.
With huge infrastructure projects underway in Maharashtra, the state government is looking at restructuring its funding model so that bankers who are willing to fund projects will be covered by the government. This will form part of the agreement that they sign with the developers.
PR Jaishankar, Chief General Manager, India Infrastructure Finance Company Ltd (IIFCL) says that old models of development financing need a complete overhaul. He feels while development financing still holds relevance, it needs to be viewed in the context of the dynamic needs of the emerging environment.
Though Public-Private Partnership contracts are the mainstay of infra projects, evidence of PPP performance in terms of value-for-money and efficiency is mixed and often unavailable, says Sangeeta Lakhi, Senior Partner, Rajani Associates.
The governmentÂ´s move to demonetise old Rs.500 and Rs.1,000 banknotes has been widely hailed by the countryÂ´s infrastructure sector as a positive development. Industry representatives would also like the government and its agencies to simultaneously roll out adequate measures to counter any likely bumps on the road ahead.