Need to look at infrastructure development in fresh perspective

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Infrastructure projects, which often include long gestation, are severely impacted by the Covid-induced lockdown and there is a need to look at their development in a fresh perspective, according to Padmanabhan Jai Shankar, Managing Director of India Infrastructure Finance Company (IIFCL).

“The government has taken a number of steps to combat the impact of the pandemic and aid economic recovery and create liquidity in the market. We have to understand the induced lockdown has diminished consumer confidence and full restoration of the economic activities would depend on a number of factors,” he said, speaking at a virtual event by industry body PHD Chamber of Commerce and Industry.

He said the National Infrastructure Pipeline envisages an investment of Rs 111 lakh crore through 2025 and that 42 per cent of these infrastructure development projects are under implementation while 32 per cent are under conceptual stages and the rest are under development.

“The state and central budget will cover 44 per cent of this. Multilaterals would chip in 2 per cent, the bond markets are expected to chip in 7 per cent and internal accruals of PSUs are supposed to chip in 2 per cent. Main investments are supposed to be pushed by banks and Non-Banking Financial Corporation (NBFCs) to the extent of 27 per cent,” he added.

He also said that infrastructure projects require long-term financing in order to tide over the situation of stress because of the limitations of financing from the banks.

Source: Energy World

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