Financing of PPP Infrastructure Projects in India : Constraints and Recommendations

Infrastructure projects are complex, capital intensive and with long gestation period, posing multiple and unique risks to project financiers. Private investment in infrastructure in India over the past decade has not been up to the expectation, and there is a need for Public-Private Partnerships (PPPs) to play a much greater role than before. The paper analyzes the reasons for private financing not making its way into the different infrastructure segments, and examines the key constraints to private financing. It also suggests ways to mitigate these constraints for a sustained private investment in the Indian infrastructure