National Infrastructure Pipeline may remain a dream unless supported by a multiple strategies for better infrastructure creation. Discuss (200 Words)
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IAS Parliament 4 years
KEY POINTS
· India’s private sector has lacked both the resources to support the National Infrastructure Policy.
· Private participation has been in decline, despite several measures taken, from inviting foreign investment and streamlining regulations to introducing innovative finance mechanisms like infrastructure investment trusts (InvITs).
· Infrastructure projects raise 45-80% of their funding requirements from commercial banks. But banks lack the domain expertise needed to understand the nuances of financing.
· So development finance institutions (DFIs) that could mobilize funds for project lending is the need of the hour.
· For a DFI to be successful, it should be set up with an ownership and management structure like that of HDFC and ICICI. The strength of a DFI lies in its domain expertise, and it may therefore be advisable to create sector-specific DFIs .
· Apart from setting up a DFI, the government should institutionalize mechanisms for time-bound approvals and clearances, coordination.
· Public-private partnerships (PPPs) have been an important vehicle for infrastructure development.
· For these to fulfil their potential, an effective dispute resolution mechanism is needed, which would require a legal enactment or a workable administrative arrangement.
yuvaraj 4 years
kindly review thanks
IAS Parliament 4 years
Good attempt. Keep Writing.
