Government in India is striving for balancing fiscal prudence with economic growth and this boost is likely to enthuse more private investments especially in the infrastructure segment and the case for PPP projects scores up. Simply for a reason to increase the private investment the environment offered for such capital intensive segments do demand risk hedging which PPP does provide. However, PPP in so far status have had mixed response with initial years witnessing a limited success and that too local to roads & highways and power sector only. When we factor in a US$1.5 billion recapitalization of public banks — with further funds promised — then hopefully there should be more credit available to fund essential projects which fall under the infra segment.
Key Queries Resolved
- What is the opportunity size as per investments under different segments which are apt for PPP model in India?
- What shall be the opportunity under PPP model and tracking projects on state wise basis for irrigation & dam segment?
- What shall be the opportunity under under PPP model and tracking projects on state wise basis for Railways and MRTS systems?
- What shall be the opportunity under PPP model on state wise basis for roads & highways segment?
- What shall be the opportunity under PPP model and tracking projects on state wise basis for ports & airports segment?
- What shall be the opportunity under PPP model and tracking projects on state wise basis for conventional power and renewable segment and new sector of energy efficiency and electric vehicle promoting projects ?
- What shall be the region wise best state for PPP projects in India under different segments in India
- Why PPP model can be viable for future in India as per budgetary allocations in India?
Business Case For PPP Project In India
- Government launches INR 16,320 crore “SUABHAGYA SCHEME” to supply electricity to all households by December 2018
- Railways get largest-ever budget allocation of US$20 billion as part of new, integrated transport budget
- Highways budget increased to US$10 billion, including 2000 km of new coastal connectivity roads
- Aviation budget rises by 22% to US$750 million, plus an amended act enabling monetization of land assets like shopping malls, multiplexes and business parks near airports
- Launch of second phase of National Solar Mission for additional 20 gig watts (GW) of solar parks capacity, coupled with tax cuts for wind power projects
- Proposed reduced tax rate of 10% on sale of carbon credits, plus exemption from VAT for various forms of renewable energy
- Proposal to build 10 million houses for homeless by 2019, with affordable housing given ‘infrastructure’ status
- Significant plans to improve healthcare & education segment in the country