Infrastructure Sector Growth Challenges & Prospects in 2021

Infrastructure, together with real estate and housing, which are key to economic development, were severely hit due to the Corona pandemic; however, there have been many bright spots, especially the progressive policy initiatives of the government, which bode well for the months ahead.
Vinod Behl

Despite an impressive economic recovery over the last quarter, several bottlenecks still pose some challenges. One of the major challenges faced by the infrastructure sector pertains to financing. In 2015, the government had set up a ₹40,000 crore National Investment and Infrastructure Fund (NIIF) for enhancing financing for greenfield, brownfield and stalled projects. However, NIIF’s equity spend over the last five years averaged less than ₹5,000 crore. NIIF’s equity investment stood at ₹4,689 crore while the co-investment made by its partners amounted to ₹7,053 crore at the end of September 2020. The total investment stood at ₹11,742 crore.

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