Attracting Private Investments to Boost Highway Growth in India
Ever since India set out on a path of economic liberalization in 1991, the policymakers for almost three decades remained focused on developing infrastructure to commensurate with the economic growth of the nation. But the task was humongous and the resources, both technical and financial, limited. As the old saying goes, every challenge offers an opportunity for innovation. The budgetary constraints to support such large scale infrastructure creation actually paved the way for private investment in infrastructure sector.
With the advent of Public Private Partnership (PPP) model for infra development, India leapfrogged into the race for the fastest growing major economies. However, despite the success of the PPP model in Highway development, some questions still remained on its efficacy. Many execution models have been attempted such as BOT (Toll), BOT (Annuity), OMT and even the recently formulated HAM and TOT. But a foolproof PPP model still remains elusive. It is, therefore, important to delve deeper into some of the major issues plaguing the infra sector, find solutions, and attract private investment.
With the advent of Public Private Partnership (PPP) model for infra development, India leapfrogged into the race for the fastest growing major economies. However, despite the success of the PPP model in Highway development, some questions still remained on its efficacy. Many execution models have been attempted such as BOT (Toll), BOT (Annuity), OMT and even the recently formulated HAM and TOT. But a foolproof PPP model still remains elusive. It is, therefore, important to delve deeper into some of the major issues plaguing the infra sector, find solutions, and attract private investment.
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NBM&CW August 2019
