Accelerating PPP in India

Accelerating public private

partnerships in India

FICCI

I am happy to share with you the FICCIE&Y Report on Accelerating PPP in India to be released at the India PPP Summit 2012 organized by FICCI.

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M)&NO".<6-#/-&?%(*"-(P&'.(&*0-&-4-"*E&Q(")*&R&>.+"/&0%)&@(-@%(-#&%&,.2@(-0-")$4-&S%,B/(.+"#&?%@-(&,.4-($"/&%&6%(/-&"+25-(&.'&$2@.(*%"*&%(-%)3&;0-&(-@.(*&0%)&5--"&@(-@%(-#&*0(.+/0&#-*%$6-#&%"%6G)$)&.'&)-4-(%6&,($*$,%6&'%,*.()&$"T+-",$"/&???&@(.F-,*)&$"&!"#$%3&!&*%B-&*0$)&.@@.(*+"$*G&*.&*0%"B&*0-2&'.(&*0-$(&-''.(*)3

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Hemant Kanoria

Chairman =!HH!&K%*$."%6&H.22$**--&."&!"'(%)*(+,*+(-

Foreword

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Abhaya Krishna Agarwal

QU-,+*$4-&L$(-,*.(&%"#&K%*$."%6&`-%#-(&a&?+56$,&?($4%*-&?%(*"-()0$@) A.4-("2-"*&R&;(%")%,*$."&M#4$).(G&8-(4$,-)

Ernst & Young

Accelerating public private partnerships in India ] 4

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1.2 Current status of PPPs in India 07

1.3 Common forms of PPP models in India 08

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1.6.1 Andhra Pradesh 12

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1.7 International experience 17

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1.7.2 Australia 18

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1.7.4 Philippines 20

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Contents

[ Accelerating public private partnerships in India5

2.3 Means of infrastructure funding 24

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I3e3I&S."#)& Ih

2.3.3 External commercial borrowings 28

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2.3.6 Multilateral agencies lending 29

2.3.7 Insurance/pension funds 23

2.4 Grants 31

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3.2 Railways 36

3.3 Power 37

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4. Recommendations 41

4.1 Policy recommendations 41

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4.3 Financing recommendations 42


“PPP projects take much less time to complete and the Government does not have to bear cost overruns. This will not only enable us to leverage our limited public resources !"#$%&'($)*+,(-.$./01).213$(/$service delivery.”

80($&X%"2.0%"&8$"/0E& D.".(%56-&?($2-&X$"$)*-(&.'&!"#$%

Source: PM inaugural address at the Conference on ?+56$,&?($4%*-&?%(*"-()0$@&$"&K%*$."%6&D$/0<%G)


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;0-&-U*-"*&*.&<0$,0&*0-&A.!&-"4$)%/-)&%&)$/"$1,%"*&(.6-&@6%G-#&5G&???&$"&$2@(.4$"/&*0-&6-4-6&%"#&Y+%6$*G&.'&-,.".2$,&%"#&).,$%6&$"'(%)*(+,*+(-&)-(4$,-)&$)&$",(-%)$"/6G&-4$#-"*&'(.2&*0-&/(.<$"/&(-6$%",-&."&*0-&???&2.#-6&$"&the recent past.

1.1 Evolution of PPPs2

1.2 Current status of PPPs in India;0-&???&!"#$%&#%*%5%)-&\L-@%(*2-"*&.'&Q,.".2$,&M''%$()E&X$"$)*(G&.'&=$"%",-]&$"#$,%*-)&*0%*&V[h&???&@(.F-,*)&,.)*$"/&!KZeEhee&5$66$."3&$)&%<%(#-#i+"#-(<%G&)*%*+)&\$3-3E&$"&.@-(%*$."%6E&,.")*(+,*$."%6&.(&$"&)*%/-)&<0-(-$"&%*&6-%)*&,.")*(+,*$."i$2@6-2-"*%*$."&$)&$22$"-"*]3&;0-(-&-U$)*)&)$/"$1,%"*&+"*%@@-#&@.*-"*$%6&'.(&*0-&+)-&.'&*0-&???&2.#-6&$"&-C/.4-("%",-E&0-%6*0&%"#&-#+,%*$."&)-,*.()3&

:& k!"4-)*2-"*&$"&!"'(%)*(+,*+(-&$"&!"#$%El&Article base websiteE&0**@mii<<<3%(*$,6-)5%)-3,.2i$"4-)*$"/C%(*$,6-)i$"4-)*2-"*C$"C$"'(%)*(+,*+(-C$"C$"#$%Cb[h[eIh30*26E&%,,-))-#&Ie&L-,-25-(&IJ::

I& k=%,$6$*%*$"/&???&'.(&M,,-6-(%*-#&!"'(%)*(+,*+(-&L-4-6.@2-"*&$"&!"#$%El&X$"$)*(G&.'&=$"%",-&R&M)$%"&L-4-6.@2-"*&S%"BE&L-,-25-(&IJJd

e& ???&!"#$%&L%*%5%)-&%)&.'&e:&f+6G&IJ::

1.Public private partnership in India

Source: PPP in India website

Few notable PPPs could be found as early as 19th century:4 The Great Indian Peninsular Railway

Company (1853)4 The Bombay Tramway Company's tramway

services in Mumbai (1874)4 PPP models were there in power generation

and distribution in Mumbai and Kolkata in the early 20th century

4 Only 86 PPP projects worth INR340 billion were awarded till 2004 (World bank study of 13 states in 2005)

4 Most of the projects were in bridges and roads sector

4 `%(/-C),%6-&@($4%*-&1"%",$"/&has been limited to Vishakapatnam and Tirupur

4 Increasing acceptance of PPP model due to favorable policy reforms and innovative PPP structures

4 Growth in PPP from 450 projects costing INR 2,242 billion in November, 2009 to 758 PPP projects costing INR3,833 billion in July 2011

Phase I: 19th century and early 20th century

Phase II: 1991 2006

Phase III: After 2006


O%("%*%B%E&M"#0(%&?(%#-)0&%"#&X%#0G%&?(%#-)0&%(-&*0-&6-%#$"/&)*%*-)&$"&*-(2)&.'&"+25-(&%"#&4%6+-&.'&???&@(.F-,*)3&M*&*0-&,-"*(%6&6-4-6E&*0-&K%*$."%6&D$/0<%G&M+*0.($*G&.'&!"#$%&\KDM!]&$)&*0-&6-%#$"/&+)-(&.'&*0-&???&2.#-63&

!"&.(#-(&*.&)-6-,*&%&@(.4$#-(i%<%(#&%&,."*(%,*&%&,.2@-*$*$4-&5$##$"/&@(.,-))&\-$*0-(&"%*$."%6&.(&$"*-("%*$."%6]&%(-&'.66.<-#3&!"*-("%*$."%6&,.2@-*$*$4-&5$##$"/&@(.F-,*)&%,,.+"*-#&'.(&e[W&.'&*.*%6&$"4-)*2-"*&'.66.<-#&5G&#.2-)*$,&,.2@-*$*$4-&5$##$"/&\IdW]3

1.3 Common forms of PPP models in Indiaj0$6-&*0-&@(-'-((-#&'.(2)&.'&???&2.#-6&$)&*0-&."-&$"&<0$,0&*0-&.<"-()0$@&.'&+"#-(6G$"/&%))-*&(-2%$")&<$*0&*0-&@+56$,&-"*$*G&#+($"/&*0-&,."*(%,*&@-($.#&%"#&@(.F-,*&/-*)&*(%")'-((-#&5%,B&*.&@+56$,&-"*$*G&."&,."*(%,*&*-(2$"%*$."E&*0-&1"%6&#-,$)$."&."&*0-&'.(2&.'&???&$)&#-*-(2$"-#&+)$"/&*0-&n%6+-&'.(&X."-G&M"%6G)$)3&

PPP projects in India by sector (Total number of projects: 758)*

Source: PPP India database, *As of July 31, 2011

Airports, 0.7%

Education, 2.2% Energy,

7.4%Healthcare,

1.1%

Ports, 8.0%

Railways, 0.5%

Roads, 53.4%

Tourism, 6.6%

Urban Development,

20.1%

PPP projects by value of contracts (Total value of contracts: INR3,833 billion)*

Based on INR 100 crore, 2.5%

Between INR 100 to INR 250 crore,

5.2%

Between INR 251 to INR 500 crore,

14.4%

More than INR 500 crore, 77.9%

BOT (buildoperatetransfer) modelsThe BOT form of model and its variants is the most common form of PPP model used in India accounting for almost twothirds of PPP projects in the country. The two major forms of BOT models are:4 Userfee based BOT model: Commonly

used in medium to largescale PPPs for the energy and transport subsectors (road, ports and airports).

4 Annuitybased BOT model: Commonly used in sectors/projects not meant for cost recovery through user charges such as rural, urban, health and education sectors

PPP models supported by the

Government

!"#$%&#'#&($)*+,-$.#'/0-1*2&34'contracts4 The designbuild contracts yield

5-"-1*)&$"&*0-&'.(2&.'&*$2-&%"#&,.)*&)%4$"/)E&-'1,$-"*&($)BC)0%($"/&%"#&$2@(.4-#&Y+%6$*G3&;0-&*+("B-G&%@@(.%,0&<$*0&2$6-)*."-C6$"B-#&payments and penalties or $",-"*$4-)&,%"&5-&6$"B-#&*.&)+,0&B$"#&of contracts.

Performance based 56*6)&5&*0756$*0&*6*8&'8"*01680(4 The PPP models that lead to improved

-'1,$-",G&%(-&-",.+(%/-#&$"&%"&environment that is constrained by the availability of economic resources. The sectors meant for such form of PPP models include water supply, sanitation, solid waste management, road maintenance etc.


j0$6-&*0-(-&#.&-U$)*&5+$6#C.<"C.@-(%*-&\Sgg]&2.#-6)E&*0-G&%(-&".*&)+@@.(*-#&5G&*0-&A.!&#+-&*.&$*)&1"$*-&(-).+(,-)&%"#&*0-&,.2@6-U$*$-)&$"&$2@.)$"/&@-"%6*$-)&$"&,%)-&.'&"."C@-('.(2%",-&%"#&-)*$2%*$."&.'&4%6+-&.'&+"#-(6G$"/&%))-*)&$"&,%)-&.'&-%(6G&*-(2$"%*$."3&M6).E&*0-&A.!&#.-)&".*&(-,./"$^-&*0-&-"/$"--($"/C@(.,+(-2-"*C,.")*(+,*$."&\Q?H]&,."*(%,*)&%"#&%))-*&#$4-)*$*+(-)&%)&???)3

1.4 PPP policy framework4

8$/"$1,%"*&/(.<*0&$"&*0-&"+25-(&.'&???)&$"&*0-&@%)*&:[&G-%()&0%)&2%#-&!"#$%&."-&.'&*0-&6-%#$"/&???&2%(B-*)&$"&*0-&<.(6#3&M)&%&(-)+6*E&%&@(.@-(&???&-,.C)G)*-2&,.2@($)$"/&$")*$*+*$."E&#-4-6.@-()E&1"%",$-()E&-Y+$*G&@(.4$#-()E&@.6$,$-)&and procedures has emerged.

!"&*0-&6$/0*&.'&/(.<$"/&???&*(-"#)&%"#&@.6$,Gi$")*$*+*$."%6&$"*-(4-"*$."E&*0-&A.!&'--6)&$*&$)&$2@-(%*$4-&*.&0%4-&$"&@6%,-&%&5(.%#&@.6$,G&'(%2-<.(B3&=.66.<$"/&*0-&=$"%",-&X$"$)*-()P&5+#/-*&IJ::_:I&)@--,0&*.&,.2-&+@&<$*0&%&,.2@(-0-")$4-&@.6$,GE&*0-&X$"$)*(G&.'&=$"%",-&#(%'*-#&%&K%*$."%6&???&@.6$,G&'.(&).6$,$*$"/&)+//-)*$.")3&;0-&#(%'*&K%*$."%6&???&?.6$,G&@(.@.)-)&*.&'.,+)&."&%))$)*$"/&H-"*(%6&%"#&)*%*-&A.4-("2-"*&%/-",$-)&%"#&@($4%*-&$"4-)*.()&5Gm

o& 7"#-(*%B$"/&???&@(.F-,*)&*0(.+/0&)*(-%26$"-#&@(.,-))-)&%"#&@($",$@6-)

o& Q")+($"/&%#.@*$."&.'&4%6+-&'.(&2."-G&%@@(.%,0&*0(.+/0&.@*$2$^%*$."&.'&($)BC(-*+("&%66.,%*$."&$"&@(.F-,*&structuring

o& M**%$"$"/&%@*&@+56$,&.4-()$/0*&%"#&2."$*.($"/&.'&???&@(.F-,*)

o& L-4-6.@$"/&/.4-("%",-&)*(+,*+(-)&*.&'%,$6$*%*-&,.2@-*$*$4-"-))E&'%$("-))&%"#&*(%")@%(-",G

Prominent features of the proposed National PPP policy:

o& ;0-&A.!&@6%"&*.&'.(2%6$^-&???)&%)&@(-'-((-#&$2@6-2-"*%*$."&2.#-6)&5%)-#&."&*0-&-U$)*-",-&.'&)*(."/&*(%,B&record for those models. It has laid down strong procedures to procure a PPP project. In order to instill *(%")@%(-",G&$"&???E&$*&<$66&@+56$)0&)-@%(%*-&2%"#%*.(G&#$),6.)+(-)&%"#&'%$(&@(%,*$,-)E&)-*&+@&#-#$,%*-#&#$)@+*-&(-).6+*$."&2-,0%"$)2E&#-4-6.@&"-<&2%(B-*C5%)-#&@(.#+,*)&\-3/3E&@(-C5$#&(%*$"/]E&%"#&-U@6.(-&@.))$5$6$*$-)&.'&)-**$"/&+@&<-5C5%)-#&???&2%(B-*&@6%,-3

b& &kK%*$."%6&?+56$,&?($4%*-&?%(*"-()0$@&?.6$,G&_&L(%'*&'.(&,.")+6*%*$."El&X$"$)*(G&.'&=$"%",-E&8-@*-25-(&IJ::

Major policy and institutional initiatives taken:4 Setting up of PPP Appraisal Committee to streamline

appraisal and approval of projects4 Preparation of PPP Toolkit to improve PPP decision making

process4 Establishment of transparent and competitive bidding

processes through model bidding documents4 QU*-"#$"/&1"%",$"/&)+@@.(*&*0(.+/0&#-4-6.@2-"*&'+"#)E&

nA=E&+)-(&,0%(/-&(-'.(2)E&-*,3

Institutions Developers

Financiers Equity providers

Need for policies and procedures in PPP ecosystem


o& ;0-&???&@(.,-))&)0.+6#&,.2@($)-&'.+(&@0%)-)m

o& ;0-&A.!&$)&6$B-6G&*.&-)*%56$)0&X!8&'.(&,."*$"+.+)&2."$*.($"/&.'&*0-&@-('.(2%",-&.'&???&@(.F-,*)3

o& ;0-&#-4-6.@2-"*&.'&%&)+)*%$"%56-&???&@(./(%2&(-Y+$(-)&%&)*(."/&%"#&<-66&#-1"-#&$")*$*+*$."%6&)*(+,*+(-m

o& 8+@@.(*$"/&*0-&,(-%*$."&.'&".#%6&%/-",$-)&)+,0&%)&???&H-66)&%*&*0-&)*%*-&.(&)-,*.(&6-4-63&&

o& `%G$"/&#.<"&.'&%@@(%$)%6&2-,0%"$)2&'.(&???&@(.F-,*)&5G&*0-&???&M@@(%$)%6&H.22$**--&\???MH]

PPP $#&*0$%860$"*'(06)&Consists of strategic planning, project

prefeasibility analysis, Value for Money

analysis, PPP suitability checks, and internal clearances to proceed with PPP development

91"8-1&5&*0'(06)& Consists of

procurement and project award

999'8"*01680'56*6)&5&*0'6*#'5"*$0"1$*)'(06)&'Consists of project implementation and monitoring over the life of PPP project

:&;&."<5&*0'(06)&'Consists of project

preparation (including technical feasibility and

1"%",$%6&4$%5$6$*G&%"%6G)$)]E&project structuring,

preparation of contractual documents and obtaining of

project clearances and approval

H(-%*$"/&-"%56$"/&-"4$(."2-"*&'.(&???)m

o& �&A.!&0%)&%&@(./(-))$4-&1"%",$%6&)+@@.(*&)G)*-2&'.(&???&@(.F-,*)3&8.2-&.'&*0-&B-G&$"$*$%*$4-)&$",6+#-&!"#$%&!"'(%)*(+,*+(-&?(.F-,*&L-4-6.@2-"*&=+"#&\!!?L=]E&n$%5$6$*G&A%@&=+"#$"/&\nA=]E&(-).+(,-)&'.(&%""+$*$-)i%4%$6%5$6$*GC5%)-#&@%G2-"*)E&6."/&*-".(&6-"#$"/E&(-C1"%",$"/&'%,$6$*GE&$"'(%)*(+,*+(-&#-5*&'+"#)E&-*,3&;0-&A.!&<$66&@(.4$#-&6-/$)6%*$4-&%"#&@.6$,G&)+@@.(*&*.&#-4-6.@&-Y+$*GE&#-5*E&0G5($#&)*(+,*+(-)&%"#&%@@(.@($%*-&,(-#$*&enhancement structures.

o& �&;0-&A.!&<$66&+"#-(*%B-&,%@%,$*G&5+$6#$"/&$"*-(4-"*$.")&*.&#-4-6.@&.(/%"$^%*$."%6&%"#&$"#$4$#+%6&,%@%,$*$-)&'.(&$#-"*$1,%*$."E&@(.,+(-2-"*&%"#&2%"%/$"/&???)3

o& �&;0-&???&H-66&$"&L-@%(*2-"*&.'&Q,.".2$,&M''%$()&<$66&0%4-&@(.'-))$."%6)&<0.&@(.4$#-&,.2@-*-",$-)&%"#&*-,0"$,%6&)+@@.(*&*.&*0-&2$"$)*($-)&%"#&.*0-(&%+*0.($*$-)&#-4-6.@$"/&???)3


1.5 Challenges in PPP in India5

j0$6-&2.)*&.'&*0-&%5.4-&,0%66-"/-)&%(-&5-$"/&<.(B-#&+@."&5G&*0-&A.!E&*0-&6$2$*-#&%4%$6%5$6$*G&.'&).+(,-)&.'&'+"#$"/&$)&*0-&5$//-)*&5.**6-"-,B&'.(&*0-&)+,,-))&.'&*0-&???&2.#-63

[& !"'(%)*(+,*+(-&H0%66-"/-)&$"&8.+*0&M)$%m&;0-&Z.6-&.'&?+56$,C?($4%*-&?%(*"-()0$@)E&MLSE&8-@*-25-(&IJJV& ;(%")@%(-",G&$"&???&@(./(%22-E&The Financial ExpressE&g,*.5-(&IV&IJ::& !"#$%"&!"'(%)*(+,*+(-&_&H0%66-"/-)E&!L=HE&8-@*-25-(&IJ:J

;0-(-&$)&".&$"#-@-"#-"*&???&(-/+6%*.(&%)&.'&".<3&!"&.(#-(&*.&%**(%,*&2.(-&#.2-)*$,&%"#&$"*-("%*$."%6&@($4%*-&'+"#$"/&.'&*0-&$"'(%)*(+,*+(-E&%&2.(-&(.5+)*&(-/+6%*.(G&-"4$(."2-"*E&<$*0&%"&$"#-@-"#-"*&(-/+6%*.(&$)&-))-"*$%63&&

Regulatory environment

;0-&???&@(./(%2&6%,B)&%&,.2@(-0-")$4-&#%*%5%)-&(-/%(#$"/&*0-&@(.F-,*)i)*+#$-)&*.&5-&%<%(#-#&+"#-(&???3&M"&."6$"-&#%*%&5%)-E&,.")$)*$"/&.'&%66&*0-&@(.F-,*&#.,+2-"*)&$",6+#$"/&'-%)$5$6$*G&(-@.(*)E&,.",-))$."&%/(--2-"*)&%"#&)*%*+)&.'&4%($.+)&,6-%(%",-)&%"#&6%"#&%,Y+$)$*$.")&<$66&5-&0-6@'+6&*.&%66&5$##-()3

Lack of information

;0-&@(.F-,*&#-4-6.@2-"*&%,*$4$*$-)&)+,0&%)E&#-*%$6-#&'-%)$5$6$*G&)*+#GE&6%"#&%,Y+$)$*$."E&-"4$(."2-"*%6i'.(-)*&,6-%(%",-)&-*,3E&%(-&".*&/$4-"&%#-Y+%*-&$2@.(*%",-&5G&*0-&,.",-))$."$"/&%+*0.($*$-)3&;0-&%5)-",-&.'&%#-Y+%*-&@(.F-,*&#-4-6.@2-"*&5G&%+*0.($*$-)&6-%#)&*.&(-#+,-#&$"*-(-)*&5G&*0-&@($4%*-&)-,*.(E&mispricing and many times delays at the time of execution.

Project development

;0-&6$2$*-#&$")*$*+*$."%6&,%@%,$*G&*.&+"#-(*%B-&6%(/-&%"#&,.2@6-U&@(.F-,*)&%*&4%($.+)&H-"*(%6&2$"$)*($-)&%"#&-)@-,$%66G&%*&)*%*-&%"#&6.,%6&5.#$-)&6-4-6E&0$"#-(&*0-&translation of targets into projects.

Lack of institutional capacity

;0-&@($4%*-&)-,*.(&$)&#-@-"#-"*&+@."&,.22-(,$%6&5%"B)&*.&(%$)-&#-5*&'.(&*0-&???&@(.F-,*)3&j$*0&,.22-(,$%6&5%"B)&(-%,0$"/&*0-&)-,*.(%6&-U@.)+(-&6$2$*)E&%"#&6%(/-&!"#$%"&!"'(%)*(+,*+(-&,.2@%"$-)&5-$"/&0$/06G&6-4-(%/-#E&'+"#$"/&*0-&???&@(.F-,*)&$)&/-**$"/&#$'1,+6*3

Financing availability


1.6 Statelevel experience6

;0-&),-"%($.&$"&-%,0&)*%*-&$)&#$''-(-"*&$"&*0-&,."*-U*&.'&$"'(%)*(+,*+(-&#-4-6.@2-"*&%)&-%,0&)*%*-&0%)&*0-&($/0*&*.&@(.2+6/%*-&6-/$)6%*$.")&$"&*0-&%(-%)&,.4-(-#&$"&*0-&)*%*-&6$)*&.'&*0-&H.")*$*+*$."&.'&!"#$%3&D.<-4-(E&,-(*%$"&)*%*-)&0%4-&*%B-"&)+5)*%"*$%6&)*-@)&*.&-",.+(%/-&???&%,*$4$*G3&;0-G&0%4-&,(-%*-#&6-/%6&'(%2-<.(B)&'.(&@%(*$,$@%*$."&.'&@($4%*-&)-,*.(&$"&*0-&)*%*-3&

1.6.1 Andhra Pradesh7

M"#0(%&?(%#-)0&$)&*0-&6-%#$"/&)*%*-&$"&*-(2)&.'&???&@(.F-,*)&5G&"+25-(&.'&,."*(%,*)&\cd]&%"#&4%6+-&\!KZddc&5$66$."]3&!*&%,,.+"*)&'.(&%(.+"#&:V3[W&.'&*0-&*.*%6&4%6+-8 of PPP contracts in India.

;0-&)*%*-&0%)&5--"&#(%<$"/&$"*-(-)*&'.(&???&@(.F-,*&$"4-)*2-"*&$"&)-,*.()&)+,0&%)&+(5%"&#-4-6.@2-"*&\IcW]E&-"-(/G&\IbW]E&(.%#)&\IIW]E&-*,3

d& ???&!"#$%&L%*%5%)-&%)&."&e:&f+6G&IJ::V& k???&H-66&.'&M"#0(%&?(%#-)0El&PPP Cell AP websiteE&0**@mii@@@3,//3/.43$"i`./$"3%)@UE&

%,,-))-#&:d&L-,-25-(&IJ::h& ???&!"#$%&L%*%5%)-&%)&.'&f+6G&e:E&IJ::

Gujarat

Uttar Pradesh

Andhra Pradesh

Maharashtra

Karnataka

States of India and PPP6

o& ;0-&*.@&14-&)*%*-)&%,,.+"*&'.(&[h3eW&.'&*.*%6&4%6+-&.'&???&$"&!"#$%3

o& ;0-&2%F.(&)-,*.()&5-$"/&*%(/-*-#&'.(&???&'.(2%*&5G&6-%#$"/&)*%*-)&%(-&(.%#)E&@.(*)&%"#&%$(@.(*)3

o& X%0%(%)0*(%E&O%("%*%B%&%"#&A+F%(%*&%4-(%/-&%(.+"#&::W&.'&*0-&*.*%6&4%6+-&.'&???&.'&*0-&country.

o& ;0-&5.**.2&:J&)*%*-)&(-@(-)-"*&."6G&e3[W&.'&*0-&*.*%6&4%6+-&.'&???&a&$"#$,%*$"/&#$''-(-",-)&$"&%**(%,*$4-"-))&.'&$"4-)*2-"*&5G&@($4%*-&)-,*.(3

Prominent projects undertaken

o& D!;QH&H$*GE&DG#-(%5%#

o& Z%F$4&A%"#0$&!"*-("%*$."%6&M$(@.(*

o& A%"/%4%(%2&?.(*

o& Krishnapatnam Port

o& DG#-(%5%#&!"*-("%*$."%6&H."4-"*$."&H-"*-(&R&%"&!"*-/(%*-#&;.<")0$@

o& :Jh&X.5$6-&Q2-(/-",G&Z-)@.")-&8-(4$,-&%"#&:Jb&X.5$6-&D-%6*0&8-(4$,-

PPP projects in pipeline

o& DG#-(%5%#P)&2-*(.&(%$6&@(.F-,*

o& &S($#/-&%,(.))&Z$4-(&A.#%4%($&%*&Z%F%02+"#(G

o& Machilipatnam Port at Machilipatnam

o& L-4-6.@2-"*&.'&'.+(&/(--"1-6#&%$(@.(*)

o& S+)&Z%@$#&;(%")$*&8G)*-2&$"&DG#-(%5%#&%"#&n$F%G%<%#%

o& &L$%/".)*$,&,-"*-()&$"&0.)@$*%6)&%*&n$)0%B%@%*"%2E&O+("..6E&O%B$"%#%&%"#&j%(%"/%6


;0-&)*%*-&0%)&)-*&+@&4%($.+)&$")*$*+*$.")&*.&@(.2.*-&$"'(%)*(+,*+(-m

o& M"#0(%&?(%#-)0&!"#+)*($%6&!"'(%)*(+,*+(-&H.(@.(%*$."&\M?!!H]&a&@(.4$#-)&-)*%*-&$"'(%)*(+,*+(-&'.(&*0-&#-4-6.@2-"*&.'&$"#+)*($%6&%(-%)&\!;&@%(B)E&'..#&@(.,-))$"/&^."-)E&8Qp)E&-*,3]&

o& M?&!"4-)*&a&@(.2.*-)&M"#0(%&?(%#-)0&%)&*0-&'%4.(-#&#-)*$"%*$."

o& M?&;.+($)2&L-4-6.@-2-"*&H.(@.(%*$."&a&@(.4$#-)&*.+($)2&$"'(%)*(+,*+(-&*.&%**(%,*&*.+($)*&$"T.<

o& !"'(%)*(+,*+(-&H.(@.(%*$."&.'&M"#0(%&?(%#-)0&\!KHM?]&a&#-%6)&<$*0&@(.F-,*)&*0%*&%(-&.'&,($*$,%6&$2@.(*%",-&to the state’s progress

o& M?&Z.%#&L-4-6.@2-"*&a&@(.,+(-)&(.%#&@(.F-,*)&$"&*0-&)*%*-

o& M?&7(5%"&=$"%",-&R&!"'(%)*(+,*+(-&L-4-6.@2-"*&H.(@.(%*$."&a&@(.4$#-)&1"%",$%6&%))$)*%",-E&*-,0"$%6&assistane and other guidance

o& 8*%*-&???&,-66&a&%,*)&%)&%&".#%6&%/-",G&'.(&%66&???&@(.F-,*)&'.(&)+@@.(*$"/&*0-&)*%*-P)&???&$"$*$%*$4-)

Institutional support

o& M"#0(%&?(%#-)0&<%)&*0-&1()*&)*%*-&*.&-"%,*&*0-&M?&!"'(%)*(+,*+(-&L-4-6.@2-"*&Q"%56$"/&M,*E&IJJ:&%@@6$,%56-&*.&%66&$"'(%)*(+,*+(-&@(.F-,*)&$2@6-2-"*-#&5G&*0-&)*%*-3&;0-&%,*&6%G)&#.<"&/+$#-6$"-)&'.(&#-4-6.@-(&)-6-,*$."E&$66+)*(%*-)&4%($.+)&???&*G@-)E&%"#&(%"/-&.'&)*%*-&)+@@.(*&*.&$"'(%)*(+,*+(-&@(.F-,*)

Policy reforms

;0-&A.4-("2-"*&.'&M"#0(%&?(%#-)0&-U*-"#)&)+@@.(*&$"&*0-&'.66.<$"/&'.(2)m

o& L$(-,*&1"%",$%6&)+@@.(*&$"&*0-&'.(2&.'&)*%*-P)&)0%(-&.'&4$%5$6$*G&/%@&'+"#$"/&\nA=]&*.&@(.2.*-&-,.".2$,%66G&4$%56-&@(.F-,*)

o& QU-2@*$.")&$"&*-(2)&.'&)%6-)&*%UE&)*%2@&#+*G&%"#&)-$/"$.(%/-&'--)

o& M))-*C5%)-#&)+@@.(*&*.&@(.4$#-&A.4-("2-"*C.<"-#&6%"#&%*&,.",-))$."%6&6-%)-&,0%(/-)E&@(.4$#$"/&6$"B%/-&infrastructure to projects

o& M#2$"$)*(%*$4-&)+@@.(*&*.&/-*&,6-%(%",-)E&+"#-(*%B-&(-0%5$6$*%*$."&%"#&(-)-**6-2-"*E&)+@@6G&@.<-(&%"#&<%*-(&%*&@(.F-,*&)$*-E&6%"#&(-Y+$(-2-"*)

Funding initiatives

H%)-&)*+#Gm&X%F.(&5($#/-&%,(.))&A.#%4%($

o& X%F.(&5($#/-&%,(.))&($4-(&A.#%4%($&,.)*$"/&!KZh3:&5$66$."E&$)&*0-&1()*&'.+(&6%"-&5($#/-&$"&M)$%&+"#-(&*0-&???&2.#-3&;0-&),.@-&.'&*0-&@(.F-,*&$)&*.&#-)$/"E&5+$6#E&,.")*(+,*E&1"%",-E&.@-(%*-&%"#&2%$"*%$"&2%F.(&5($#/-&%,(.))&*0-&($4-(&A.#%4%($&<$*0&%&*.*%6&@(.F-,*&6-"/*0&.'&:[&B2)3&j0$6-&*0-&,.")*(+,*$."&'.(&*0-&5($#/-&$)&."E&*0-&@(.F-,*&/.*&$*)&1"%",$%6&,6.)+(-&$"&X%G&IJJc&%"#&*0-&6%"#&%,Y+$)$*$."&*.&%"&-U*-"*&.'&cJW&$)&%6).&,.2@6-*-3&;0-&@(.F-,*&$)&6$B-6G&*.&5-/$"&$*)&,.22-(,$%6&.@-(%*$.")&$"&X%G&IJ:I&%"#&$)&-U@-,*-#&*.&G$-6#&)$/"$1,%"*&5-"-1*)&$"&*0-&'.(2&.'&(-#+,-#&#$)*%",-&5-*<--"&Q6+(+&%"#&Z%F%02+"#(GE&(-#+,-#&*$2-&.'&*(%4-6E&6.<-(&*(%4-6&,.)*)&*0%"&-%(6$-(&%"#&#-,."/-)*$."&.'&*(%'1,3

o& ???&2.#-6&C&;0-&@(.F-,*&$)&."&Sg;&*.66&5%)$)&<$*0&*0-&#-4-6.@-(&5-$"/&)-6-,*-#&*0(.+/0&,.2@-*$*$4-&5$##$"/&@(.,-))&'.(&%&,.",-))$."&@-($.#&.'&I[&G-%()3&;0-&@(.F-,*&<$66&0%4-&/(%"*&.'&!KZI3:&5$66$."&%"#&*0-&(-2%$"$"/&)0%66&5-&(%$)-#&$"&*0-&'.(2&.'&-Y+$*G&@(.4$#-#&5G&*0-&#-4-6.@-(&%"#&#-5*&'(.2&*0-&=!)3


1.6.2 Karnataka9

M,,.(#$"/&*.&Q,.".2$,&8+(4-G&IJ:JE&O%("%*%B%&$)&%2."/&*0-&*.@&)*%*-)&$"&???&$"&$"'(%)*(+,*+(-&@(.F-,*)3&;0-&)*%*-&0%)&:Jb&???&@(.F-,*)&.'&4%6+-&!KZbbV&5$66$."103&M)&*0-&B".<6-#/-&0+5&.'&!"#$%E&$*&0%)&$22-")-&@.*-"*$%6&'.(&$"4-)*2-"*&$"&*0-&%(-%)&.'&$"'.(2%*$."&*-,0".6./GE&5$.*-,0".6./GE&*-U*$6-)E&)*--6&%"#&,-2-"*3

!"&IJJhE&*0-&*(%")@.(*%*$."&)-,*.(&5%//-#&*0-&2%U$2+2&$"4-)*2-"*&."&%&???&5%)$)&$"&*0-&)*%*-3&D.<-4-(E&*0-&A.4-("2-"*&.'&O%("%*%B%&$)&".<&*%(/-*$"/&"-<&%(-%)&'.(&???3&!*&0%)&*%56-#&%&S$66&$"&`-/$)6%*$4-&M))-256G&*.&#-4-6.@&all ports in the state on a PPP basis and is formulating an integrated energy policy that aims to promote PPP projects in the energy sector.

c& A--(*&L-<+6'E&M)0<$"&X%0%6$"/%2E&%"#&8*-@0%"&f..)*-E&k;0-&;(%")$*$."&;.<%(#)&%&8+)*%$"%56-&???&Z-/$2-El&M+/+)*&IJ::& kO%("%*%B%&8@-,$%6&?@@&g"&=%)*&;(%,BEl&Ib&g,*.5-(&IJ::E&?(.F-,*&X."$*.(E&4$%&=%,*$4%E&q&IJ::&Q,.".2$,&Z-)-%(,0&!"#$%&

?4*3&`*#3E&#$)*($5+*-#&5G&H."*$'G3,.2 Infrastructure Development department websiteE&0**@mii$##3B%(3"$,3$"i@@@C/.30*26E&%,,-))-#&:I&L-,-25-(&IJ::10& ???&!"#$%&L%*%5%)-&%)&.'&f+6G&e:E&IJ::

o& ;0-&8*%*-&A.4-("2-"*&0%)&-)*%56$)0-#&*0-&!"'(%)*(+,*+(-&L-4-6.@2-"*&L-@%(*2-"*&$"&:ccd3&!*&%$2)&*.&%**(%,*&@($4%*-&)-,*.(&@%(*$,$@%*$."&$"&*0-&#-4-6.@2-"*&.'&$"'(%)*(+,*+(-&@(.F-,*)3

o& ;0-&8*%*-&A.4-("2-"*&0%)&)-*&+@&%&???&,-66&$"&*0-&!"'(%)*(+,*+(-&L-4-6.@2-"*&L-@%(*2-"*&*.&5..)*&???&$"&*0-&)*%*-3&???&,-66&%$2)&%*&$#-"*$1,%*$."E&,.",-@*+%6$^%*$."&%"#&,(-%*$."&.'&%&)0-6'&.'&@(.F-,*)&*0%*&,%"&be considered for implementation through the PPP route.


o& ;0-&)*%*-P)&K-<&!"'(%)*(+,*+(-&?.6$,GE&IJJV&%$2)&*.&@(.4$#-&%&'%$(&%"#&*(%")@%(-"*&@.6$,G&'(%2-<.(B&'.(&@(.2.*$."&.'&???&$"&*0-&$"'(%)*(+,*+(-&)-,*.(&$"&*0-&)*%*-3&;0-&@.6$,G&0%)&*0-&@(.4$)$."&'.(&,.")$#-(%*$."&.'&$2@6-2-"*$"/&*0-&@(.F-,*&1()*&*0(.+/0&???&'.(&%66&"-<&$"4-)*2-"*)&$"&$"'(%)*(+,*+(-3

o& ;0-&8*%*-&A.4-("2-"*&#-,$#-#&*.&-)*%56$)0&%&)$"/6-&<$"#.<&*.&'%,$6$*%*-&*0-&)@--#G&%@@(.4%6&.'&*0-&@(.F-,*)3

Policy reforms

o& ;0-&8*%*-&A.4-("2-"*&0%)&)-*&+@&%&'+"#&,%66-#&O%("%*%B%&!"'(%)*(+,*+(-&?(.F-,*&L-4-6.@2-"*&=+"#&*.&@(.4$#-&1"%",$%6&%))$)*%",-&*.&)*%*-&%/-",$-)&*%B$"/&."&$"'(%)*(+,*+(-&@(.F-,*)&+"#-(&???&2.#-3&;0-&'+"#&*%(/-*)&$"4-)*2-"*&$"&(%$6<%G)E&%$(@.(*)E&@.(*)E&(.%#)E&+(5%"&$"'(%)*(+,*+(-E&-"-(/GE&*.+($)2&%"#&$"#+)*($%6&infrastructure.

Funding initiatives

H%)-&)*+#Gm&S%"/%6.(-&!"*-("%*$."%6&M$(@.(*

o& ;0-&lA(--"1-6#l&S%"/%6.(-&!"*-("%*$."%6&M$(@.(*E&*0-&1()*&???&%$(@.(*&$"&*0-&,.+"*(GE&$)&#-4-6.@-#&."&%&???&2.#-6&<$*0&*.*%6&$"4-)*2-"*&.'&!KZ:c3e&5$66$."3&!*&$)&*0-&F.$"*&4-"*+(-&5-*<--"&*0-&M$(@.(*)&M+*0.($*G&.'&!"#$%&\MM!]E&O%("%*%B%&8*%*-&!"#+)*($%6&!"4-)*2-"*&%"#&L-4-6.@2-"*&H.(@.(%*$."&`*#3&\O8!!LH]&%"#&@($4%*-&@(.2.*-()3&;0-&%$(@.(*&$)&5+$6*&."&$"*-("%*$."%6&6$"-)&<$*0&<.(6#&,6%))&'%,$6$*$-)&%6."/&<$*0&*0-&,%@%,$*G&*.&0%"#6-&bJ&2$66$."&@%))-"/-()&."&'+(*0-(&#-4-6.@2-"*3

o& ???&2.#-6&C&;0-&S%"/%6.(-&!"*-("%*$."%6&M$(@.(*&$)&5-$"/&5+$6*&."&Sgg;&'.(2%*&<$*0&A.4-("2-"*&.'&O%("%*%B%&%"#&M$(@.(*)&M+*0.($*G&.'&!"#$%&\MM!]&-%,0&0%4$"/&:eW&-Y+$*G&)0%(-)&%"#&#-4-6.@-(&5-$"/&)-6-,*-#&*0(.+/0&,.2@-*$*$4-&5$##$"/&@(.,-))&'.(&%&,.",-))$."&@-($.#&.'&eJ&G-%()&\@(.4$)$."&.'&eJ&G-%()&-U*-")$."]3&;0-&!KZ:c3e&5$66$."&1"%",$"/&5-$"/&#."-&%)&-Y+$*G&a&!KZe:3[&2$66$."E&)*%*-&)+@@.(*&a&!KZe3[&5$66$."&%"#&#-5*&a&!KZ:I3d[&5$66$."3&


1.6.3 Gujarat11

With around 63 projects valued at INR396 billion12, Gujarat is among the leading states witnessing high level of PPP activity especially in the sectors of ports and power. Gujarat’s vision 2010 envisioned development of robust infrastructure in the state primarily through the PPP mode. Similar planning exercise has been undertaken for future projects in the form of ”Blueprint for Infrastructure, Gujarat2020.” It envisages investment of INR120 trillion by 2020 across infrastructure sectors.

11& k;0-&;(%")$*$."&;.<%(#)&%&8+)*%$"%56-&???&Z-/$2-El&A--(*&L-<+6'E&M)0<$"&X%0%6$"/%2E&%"#&8*-@0%"&f..)*-E&M+/+)*&IJ::& X%F.(&!"$*$%*$4-)E&A+F%(%*&g'1,$%6&8*%*-&?.(*%6E&0**@mii<<<3/+F%(%*$"#$%3,.2i$"#-U30*2E&%,,-))-#&::&L-,-25-(&IJ::& ?+56$,&?($4%*-&?%(*"-()0$@E&Gujarat infrastructure Development Board websiteE&0**@mii<<<3/$#53.(/iE&%,,-))-#&:I&L-,-25-(&

201112& ???&!"#$%&L%*%5%)-&%)&.'&f+6G&e:E&IJ::

o& A+F%(%*&$)&*0-&1()*&)*%*-&*.&5+$6#&%&(-/+6%*.(G&'(%2-<.(B&'.(&???&*0(.+/0&*0-&@%))$"/&.'&A+F%(%*&!"'(%)*(+,*+(-&L-4-6.@2-"*&M,*&$"&:ccc3&!*&#-1"-)&/+$#-6$"-)&'.(&*0-&@($4%*-&)-,*.(&@%(*$,$@%*$."&$"&1"%",$"/E&,.")*(+,*$."E&2%$"*-"%",-&%"#&.@-(%*$."&.'&$"'(%)*(+,*+(-&@(.F-,*)&+"#-(*%B-"&."&%&???&5%)$)&in Gujarat.

o& A+F%(%*&!"'(%)*(+,*+(-&L-4-6.@2-"*&S.%(#&\A!LS]&<%)&)-*&+@&$"&:cc[&*.&+"#-(*%B-&???&$"$*$%*$4-)&$"&*0-&)*%*-3&A+F%(%*&!"'(%)*(+,*+(-&L-4-6.@2-"*&\A!L]&M,*&:ccc&@(.4$#-)&%&2-,0%"$)2&'.(&)-6-,*$."&.'&#-4-6.@-()&*.&-",.+(%/-&@($4%*-&)-,*.(&@%(*$,$@%*$."3


o& A!LS&0%)&#-4-6.@-#&2.#-6&,.",-))$."&%/(--2-"*)&'.(&,-(*%$"&)-,*.()&)+,0&%)&@.(*)E&+(5%"&*(%")@.(*E&(.%#&and water.

o& !"&%##$*$."E&)-,*.(C)@-,$1,&@.6$,$-)&.'&*0-&)*%*-&@(.4$#-&'.(&+*$6$^%*$."&.'&???3&

Policy reforms

o& ;0-&8*%*-&A.4-("2-"*&0%)&'.(2+6%*-#&4$%5$6$*G&/%@&'+"#$"/&),0-2-&*.&@(.4$#-&'+"#)&'.(&-))-"*$%6&???&@(.F-,*)3&7"#-(&*0$)&),0-2-E&*0-&8*%*-&A.4-("2-"*&@(.4$#-)&1"%",$%6&)+@@.(*&+@&*.&IJW&.'&*0-&,.)*&.'&???&@(.F-,*3&;0-&'+"#$"/&$)&@(.4$#-#&$"&*0-&'.(2&.'&%&,%@$*%6&/(%"*&%*&*0-&)*%/-&.'&@(.F-,*&,.")*(+,*$."3

Funding initiatives

H%)-&)*+#Gm&L%0-F&`KA&;-(2$"%6&

o& A+F%(%*P)&L%0-F&`KA&;-(2$"%6&$)&*0-&1()*&`KA&*-(2$"%6&$"&!"#$%E&)@(-%#&.4-(&bh&0-,*%(-)&%"#&$)&,+((-"*6G&l+"#-(&.@-(%*$."l&)*%/-3&g<"-#&5G&?-*(."-*&`KA&`*#3&%"#&6.,%*-#&%*&L%0-F&$"&S0%(+,0&#$)*($,*&.'&A+F%(%*E&*0-&???&@(.F-,*&$)&-)*$2%*-#&*.&,.)*&!KZIe&5$66$."3

o& ???&2.#-6&C&L%0-F&`KA&;-(2$"%6&???&$)&$"&%&Sgg;&'.(2%*&<$*0&,."*(%,*&%<%(#-#&5G&*0-&K-/.*$%*-#&X.7&2-*0.#&'.(&eJ&G-%()3&;0-&-Y+$*G&<%)&,."*($5+*-#&5G&!"#$%"&.$6&,.2@%"$-)E&%&=(%",-C5%)-#&,.2@%"G&%"#&M)$%"&L-4-6.@2-"*&S%"B3&;0-&@(.F-,*&0%#&%&#-5*C-Y+$*G&(%*$.&.'&V:mIc3

\8.+(,-m&???&$"&!"#$%&%"#&0**@mii<<<3/$#53.(/i,2)3%)@Ur,."*-"*s$#t:Jd]

Gujarat and PPP

o& �&A+F%(%*P)&bJ&2$".(&@($4%*-&)-,*.(&@.(*)&0%"#6-&approximately 80% of cargo handled by all @($4%*-&@.(*)&$"&!"#$%3

o& �&A+F%(%*&@.))-))-)&1()*&-4-(&@($4%*-&@.(*&project in the country.

o& �&;0-&."6G&,0-2$,%6&@.(*&%"#&*.<&`KA&;-(2$"%6)&0%4-&5--"&#-4-6.@-#&$"&*0-&???&format.

o& �&&;<.&%$(&)*($@)&0%4-&5--"&#-4-6.@-#&5G&@($4%*-&#-4-6.@-()3&


1.6.4 Jharkhandf0%(B0%"#&<$*"-))-#&(-6%*$4-6G&6.<&???&%,*$4$*G&$"&$"'(%)*(+,*+(-&@(.F-,*)3&;0-&)*%*-&0%)&+"#-(*%B-"&"$"-&???&,."*(%,*)&,.)*$"/&!KZ:V&5$66$."133&;0-&Sg;&0%)&5--"&*0-&@(-'-((-#&'.(2&.'&???&*G@-&%@@6$,%56-&$"&*0-)-&@(.F-,*)3&;0-&)-,*.()&)+,0&%)&+(5%"&#-4-6.@2-"*&%"#&(.%#)&0%4-&#(%<"&2.(-&%**-"*$."&*.<%(#)&???&$"&*0-&)*%*-3&;0-&#(%'*&f0%(B0%"#&!"#+)*($%6&?.6$,GE&IJ::&6%G)&#.<"&)$/"$1,%"*&-2@0%)$)&."&$2@6-2-"*%*$."&.'&*0-&,.",-@*&.'&???&$"&$"#+)*($%6$^%*$."&-)@-,$%66G&$"&$"'(%)*(+,*+(-&#-4-6.@2-"*i$"#+)*($%6&%(-%&#-4-6.@2-"*i$"#+)*($%6&@%(Bi&0+2%"&(-).+(,-&#-4-6.@2-"*i)-(4$,-&)-,*.(&-*,314

1.6.5 Chhattisgarh;0-&)*%*-&.'&H00%**$)/%(0&(-,.(#-#&(-6%*$4-6G&6.<&???&%,*$4$*G&$"&$"'(%)*(+,*+(-&@(.F-,*)&<$*0&."6G&'.+(&???&,."*(%,*)&,.)*$"/&!KZh&5$66$.":[3&M66&*0-&@(.F-,*)&0%4-&5--"&+"#-(*%B-"&$"&*0-&(.%#)&)-,*.(&+*$6$^$"/&*0-&Sg;C;.66&???&*G@-3&

H00%**$)/%(0&'.(2+6%*-#&%"&$"#+)*($%6&@.6$,G&'.(&*0-&@-($.#&.'&IJJc_IJ:b&*.&'.,+)&."&???3&!*&%66.<)&*0-&$"#+)*($%6$)*&*.&'.(2&*0-$(&.<"&@($4%*-&$"#+)*($%6&@%(B&'.(&%"&%(-%&.'&+@&*.&V[&%,(-)&(-)+6*$"/&$"&)@--#G&%,Y+$)$*$."&.'&6%"#3&;0-&)*%*-&/.4-("2-"*&%,*$4-6G&)+@@.(*)&*0-&???&2-*0.#&'.(&#-4-6.@2-"*&.'&*.+($)2&%"#&$"'(%)*(+,*+(-3&

13& &???&!"#$%&L%*%5%)-&%)&.'&f+6G&e:E&IJ::14& kf0%(B0%"#&!"#+)*($%6&?.6$,G&_&IJ::El&Jharkhand Industry websiteE&F0%(B0%"#$"#+)*(G3/.43$"if0%(B0%"#WIJ!"#+)*($%6WIJ

?.6$,GWIJIJ::WIJ:e3c3::3#.,E&%,,-))-#&:c&L-,-25-(E&IJ:::[& &???&!"#$%&L%*%5%)-&%)&.'&f+6G&e:E&IJ::

K%*$."%6&A%2-)&D.+)$"/&H.2@6-U&%*&Z%",0$&

o& A.4-("2-"*&.'&f0%(B0%"#&\A.f]&-"4$)%/-#&#-4-6.@2-"*&.'&%&)-6'C,."*%$"-#&*.<")0$@&%*&Z%",0$&<$*0&Y+%6$*G&$"'(%)*(+,*+(-&$"&*0-&)*%*-E&)+@@.(*$"/&%"#&,.2@6$2-"*$"/&*0-&eb*0&K%*$."%6&A%2-)3&;0-&@(.F-,*&-"*%$6-#&#-4-6.@2-"*E&,.")*(+,*$."E&)%6-&.'&#<-66$"/&+"$*)E&.@-(%*$."&%"#&2%$"*-"%",-&\gRX]&.'&%(.+"#&:EdJJ&#<-66$"/&+"$*)&-Y+$@@-#&<$*0&%66&+*$6$*$-)&%"#&'%,$6$*$-)3&;0-&?0%)-C!&.'&*0-&@(.F-,*&\:EIJJ&0.+)-)]&<-(-&*.&5-&,.2@6-*-#&5G&f+6G&IJJVE&?0%)-C!!&\dJJ&0.+)-)]&5G&X%(,0&IJJh3&;0-&-)*$2%*-#&,.)*&.'&*0-&@(.F-,*&$)&!KZI[&billion.

o& ???&2.#-6&C&L-@%(*2-"*&.'&M(*)E&H+6*+(-E&8@.(*)&R&>.+*0&M''%$()E&.'&f0%(B%"#&6-%)-#&[d3bb&%,(-)&.'&6%"#&'.(&14-&G-%()&$"&6$-+&.'&,.")*(+,*-#&#<-66$"/&+"$*)3&K%/%(F+"%&7(5%"&!"'(%)*(+,*+(-&H.2@%"G&`$2$*-#&\K7!H`]&0%)&5--"&$"4.64-#&$"&#-4-6.@2-"*E&,.")*(+,*$."E&)%6-&%"#&.@-(%*$."&%"#&2%$"*-"%",-&\gRX]&.'&*0-&#<-66$"/&units.

\8.+(,-m&???&L%*%5%)-&0**@mii<<<3@@@$"#$%#%*%5%)-3,.2i8,(--")i'(2n$-<3%)@Ur?ZgfQH;!LtZIYUn5uu:Ii-(!tRM7;DgZ!8QL78QZtK&]

7@,.2$"/&???&@(.F-,*)&$"&f0%(B0%"#P)&).,$%6&$"'(%)*(+,*+(-&

PPP for model colleges

;0-&)*%*-&.'&f0%(B0%"#&%"".+",-#&$*)&@6%")&*.&#-4-6.@&2.#-6&,.66-/-)&+"#-(&*0-&???&2.#-&*.&@(.4$#-&5-**-(&-#+,%*$."&%"#&$",(-%)-&*0-&/(.))&enrolment ratio.

\8.+(,-m&0**@mii<<<3*-6-/(%@0$"#$%3,.2i::J:IJdiF)@iF0%(B0%"#i)*.(Gs:eIde[J[3F)@]

Jharkhand announces plan for PPP hospital

;0-&)*%*-&.'&f0%(B0%"#&%"".+",-#&$*)&@6%")&*.&.@-(%*-&*0-&"-<6G&5+$6*&[JJC5-#&8%#%(&D.)@$*%6&%*&Z%",0$&$"&???&2.#-&<$*0&*0-&4$-<&*.&%4%$6&Y+%6$1-#&and specialist doctors and trained nursing and paramedical staffs.

\8.+(,-m&0**@mii<<<3$/.4-("2-"*3$"i)$*-iF0%(B0%"#C2..*)C@@@C2.#-C/.4*C0.)@$*%6)]


16

1.7 International experience1.7.1 United Kingdom???&%,*$4$*$-)&$"&*0-&7O&)*%(*-#&/%$"$"/&2.2-"*+2&$"&*0-&:chJ)E&$"&%&5$#&5G&*0-&7O&A.4-("2-"*&*.&(-#+,-&*0-&-,.".2GP)&#-@-"#-",-&."&@+56$,&)-,*.(&1"%",$"/317&j$*0&*0-&)+@@.(*&.'&4%($.+)&$"$*$%*$4-)&.4-(&*0-&G-%()E&*0-&???&2.#-6&0%)&-4.64-#&'(.2&%&,0%""-6&*.&.'')-*&*0-&,.")*(%$"*)&."&@+56$,&)-,*.(&-U@-"#$*+(-E&*.&*0-&@(-'-((-#&2.#-6&*.&#-6$4-(&)+@-($.(&Y+%6$*G&)-(4$,-)3

M,,.(#$"/&*.&*0-&7O&*(-%)+(G&#%*%E&dch&@($4%*-&1"%",-&$"$*$%*$4-&\?=!]&@(.F-,*)&0%4-&5--"&)$/"-#&*.&5-&#-6$4-(-#&*0(.+/0&*0-&???&(.+*-E&$"&4%($.+)&)-,*.()&)+,0&%)&-#+,%*$."E&0-%6*0E&#-'-")-E&@+56$,C0.+)$"/E&!;&%"#&*(%")@.(*318

;0-&???)&$"&*0-&7O&0%4-&5--"&0$/06G&)+,,-))'+6E&<$*0&)-4-(%6&,.+"*($-)&%(.+"#&*0-&<.(6#&*(G$"/&*.&-2+6%*-&*0-&7O&2.#-63&M,,.(#$"/&*.&S($*$)0&K%*$."%6&M+#$*&g'1,-&\KMg]&%"&%))-))2-"*&.'&*0-&7O&???&@.6$,G&$"&IJJc&)0.<)&*0%*&d[W&.'&*0-&,."*(%,*)&<-(-&#-6$4-(-#&."&*$2-&%"#&<$*0$"&*0-&%/(--#&5+#/-*319

16& kH00%**$)/%(0Ek&Ministry of Foreign Affairs, Kingdom of Thailand websiteE&0**@mii<<<32'%3/.3*0i$"*-("-*i#.,+2-"*iddc:3@#'E&%,,-))-#&:c&L-,-25-(&IJ::

& kj.(6#&,6%))&-#+,%*$."&$"&H00%**$)/%(0El&Dailybhaskar.com websiteE&0**@mii#%$6G350%)B%(3,.2i%(*$,6-iX?CZM!C).."C<.(6#C,6%))C-#+,%*$."C$"C,00%**$)/%(0C$$$*C6$B-6GC*.C.@-"C$"C)*%*-CI:bI:hV30*26E&%,,-))-#&:c&L-,-25-(&IJ::

17& k?+56$,C?($4%*-&?%(*"-()0$@)E&A.4-("2-"*&A+%(%"*--)E&%"#&=$),%6&Z$)BEl&!"*-("%*$."%6&X."-*%(G&=+"#E&M@($6&IJJdE&@3&VICVd18& k?(.F-,*&L%*%5%)-El PPPForum websiteE&0**@mii<<<3@@@'.(+23,.2i@(.F-,*)E&%,,-))-#&:b&L-,-25-(&IJ::19& k;0-.($^$"/&?+56$,C?($4%*-&?%(*"-()0$@&8+,,-))m&M&X%(B-*CS%)-#&M6*-("%*$4-&*.&A.4-("2-"*El&?%@-(&'.(&*0-&?+56$,&

X%"%/-2-"*&Z-)-%(,0&H."'-(-",-&%*&8G(%,+)-&7"$4-()$*GE&f+"-&IJ::E&@3&:d

7@,.2$"/&???)16

Setting up of Gems & Jewellery SEZ on PPP

H00%**$)/%(0&8*%*-&!"#+)*($%6&L-4-6.@2-"*&H.(@.(%*$."&`$2$*-#&@6%")&*.&)-*&+@&%&A-2)&%"#&f-<-66-(G&8Qp&,.4-($"/&VJ&%,(-)3&;0-&@(.F-,*&<$66&5-&#-4-6.@-#&."&%&???&5%)$)&<$*0&Xi)&Z%2BG&!"'(%)*(+,*+(-&`*#3&;0-&@(.F-,*&$)&-U@-,*-#&*.&5-&,.2@6-*-#&5G&IJ:b&%*&%&,.)*&.'&!KZ:V3bI&5$66$."3&

Sports City in Naya Raipur

K%G%&Z%$@+(&L-4-6.@2-"*&M+*0.($*G&$)&)-**$"/&+@&%&)@.(*)&,$*G&<$*0&'%,$6$*$-)&'.(&%Y+%*$,E&*-""$)&%"#&$"#..(&)*%#$+2&."&???&$"&K%G%&Z%$@+(&.4-(&:eV&M,(-)3&;0-&@($4%*-&@6%G-(&<$66&5+$6#&*0-&)@.(*)&'%,$6$*$-)&%"#&0%"#&$*&5%,B&*.&*0-&%+*0.($*G3&M&ce&%,(-&(-)$#-"*$%6&6%"#&@%(,-6&will crosssubsidize the sports facilities.

Infrastructure UK (IUK)

2007

Partnerships UK (PUK)

2000

Treasury taskforce

1997

PFI

1992


1.7.2 Australia20

;0-&M+)*(%6$%"&???&2%(B-*&$)&."-&.'&*0-&2.)*&<-66&#-4-6.@-#&2%(B-*)&'.(&???3&;0-&$"$*$%6&@0%)-&.'&???&@-(*%$"-#&*.&$"'(%)*(+,*+(-&@(.F-,*)&*0%*&<-(-&2.#-6-#&."&*0-&Sg;&%"#&Sgg;&*G@-)3&D.<-4-(E&*0-&'.,+)&.'&???&)0$'*-#&*.&).,$%6&$"'(%)*(+,*+(-&$"&IJJJ)3&;0-&@(.F-,*)&%(-&#$4-()-&%"#&(-6%*-&*.&0.)@$*%6)&%"#&),0..6)3&;0-&2%(B-*&'.(&).,$%6&$"'(%)*(+,*+(-&$)&-U@-,*-#&*.&,."*$"+-&*.&#-4-6.@&%)&*0-(-&$)&"--#&'.(&<%*-(&%"#&-"-(/G&$"'(%)*(+,*+(-&*.&2--*&M+)*(%6$%P)&'+*+(-&)+)*%$"%5$6$*G&(-Y+$(-2-"*)3&

M+)*(%6$%&$)&<$*"-))$"/&)$/"$1,%"*&/(.<*0&$"&$"'(%)*(+,*+(-3&;0-&$"'(%)*(+,*+(-&2%(B-*&$)&-)*$2%*-#&*.&@(.,+(-&$"4-)*2-"*)&<.(*0&789:J:&5$66$."&5G&IJ:d3&!"&%##$*$."E&*0-&#-4%)*%*$."&,%+)-#&5G&*0-&T..#)&$"&".(*0-("&M+)*(%6$%&-U%,-(5%*-)&*0-&2%))$4-&*%)B&.'&(-5+$6#$"/&#%2%/-#&$"'(%)*(+,*+(-3&;0+)E&*0-(-&$)&(-Y+$(-2-"*&.'&@($4%*-&$"4-)*2-"*&$"&*0-&,.+"*(G3

20& kH%)-&8*+#$-)&.'&;(%")@.(*%*$."&?+56$,C?($4%*-&?%(*"-()0$@)&%(.+"#&*0-&j.(6#El&g'1,-&.'&?.6$,G&%"#&A.4-("2-"*%6&M''%$()E&July 2011

& ?+56$,&?($4%*-&?%(*"-()0$@)E&Infrastructure Australia websiteE&0**@mii<<<3$"'(%)*(+,*+(-%+)*(%6$%3/.43%+i@+56$,s@($4%*-iE&%,,-))-#&::&L-,-25-(&IJ::

High level of political commitment: Timely reforms have been introduced by the Government to ensure development of the PPP markets. This includes steps such as PFI, and empowering the National M+#$*&g'1,-&\KMg]&*.&$"#-@-"#-"*6G&.4-()--&???)3

Strong policy framework: A proper legal and institutional framework at national, regional and municipal levels is in place, which acts as a safeguard for potential partners. It is ensured that the Government spending is regularly scrutinized and published for the general public.Key

success factors

1

2

3

4

Specialized bodies: The creation of specialized 5.#$-)&)+,0&%)&?%(*"-()0$@)&7O&\?7O]&%"#&*0-&Treasury Taskforce has institutionalized and gave structure to the PPP activities, which has been critical for the success of a PPP program in such a large scale.

Utilization of taxpayer's money: A proper evaluation tool, along with a program management process, has been put in place. This screening optimizes the project risk, and ensures that they are delivered on time without compromising on the quality.

H%)-&)*+#Gm&M#4%"*%/-&???&C&M[[&`6%"#-/%$&*.&D.6G0-%#&;(+"B&Z.%#

o& ;0-&v:J:&2$66$."&M[[&`6%"#-/%$&*.&D.6G0-%#&*(+"B&(.%#&0%)&5--"&#-)$/"-#E&1"%",-#&%"#&5+$6*&5G&7O&D$/0<%G)&M[[E&%&,.").(*$+2&.'&H%($66$."&`%$"/&%"#&DG#-(&%"#&$)&*0-&1()*&*(+"B&(.%#&5+$6*&$"&j%6-)&+"#-(&*0-&?($4%*-&=$"%",-&!"$*$%*$4-3&!*&$)&%&B-G&$"*-("%*$."%6&0$/0<%G&6$"B$"/&L+56$"&%"#&!(-6%"#&2.(-&/-"-(%66G&<$*0&j%6-)&%"#&Q"/6%"#&%"#&*0-&2%F.(&2%(B-*)&.'&Q+(.@-3&;0-&@(.F-,*&@(.4-#&*.&5-&%&2%F.(&%,0$-4-2-"*&'.(&*0-&,.",-))$."%$(-&%)&$*&#-6$4-(-#&*0-&@(.F-,*&d&2."*0)&%0-%#&.'&*$2-&#-)@$*-&*0-&<-**-)*&<$"*-()&%"#&'+-6&,($)$)3

Infrastructure Australia Independent statutory advisory council with 12 members from government and private sector

Australian PPP unit Established by Department of Finance and Administration to provide guidance to government agencies on use of PPP

National PPP Forum Facilitates cooperation across Australian regional

jurisdictions for infrastructure projects through PPP

Key national entities for PPP


1.7.3 Brazil21

?($4%*-&$"4-)*2-"*&*.&5+$6#&$"'(%)*(+,*+(-&0%)&-U$)*-#&$"&S(%^$6&'.(&%&6."/&*$2-3&!"&'%,*E&$*&<%)&*0-&2%$"&'.(2&$"&<0$,0&2%F.($*G&.'&*0-&,.+"*(GP)&.($/$"%6&$"'(%)*(+,*+(-&<-(-&#-4-6.@-#3&;0-&1()*&(%$6(.%#)&.'&*0-&,.+"*(G&<-(-&5+$6*&5G&@($4%*-&@6%G-()&+"#-(&*0-&)*%*-&6$,-")-)3&S(%^$6&0%)&."-&.'&*0-&6."/-)*&0$/0<%G&"-*<.(B&+"#-(&@($4%*-&,.",-))$.")22 &$"&*0-&<.(6#&$"#$,%*$"/&,.C-U$)*-",-&.'&@+56$,&%"#&@($4%*-&-"*$*$-)3

???&%,*$4$*$-)&%(-&(-/+6%*-#&+"#-(&*0-&H.",-))$.")&`%<&\:cc[]&%"#&*0-&?+56$,&?($4%*-&?%(*"-()0$@)&`%<&\IJJb]3&;0-&2%$"&#(%<5%,B&.'&*0-&,.",-))$."&6%<&0%)&5--"&*0%*&*0-&+)-()&\-)@-,$%66G&#($4-()&."&*.66&(.%#)]&%(-&+"<$66$"/&*.&@%G&'.(&*0-&+)-&.'&%&@(-4$.+)6G&'(--&(.%#3&7"#-(&*0-&6%<&*0-&,."*(%,*&#+(%*$."&,%"&4%(G&5-*<--"&[&*.&e[&G-%()&%"#&*0-&,."*(%,*&4%6+-&)0.+6#&5-&%*&6-%)*&789::&2$66$."3

;0-&%#.@*$."&.'&*0-&*<.&2.#-6&)*(+,*+(-&$"&*0-&???&6%<&0%)&@(.4-"&*.&5-&-''-,*$4-&5-,%+)-m

o& ;0-&???&6%<&%66.<)&*0-&@%G2-"*)&*.&5-&@%(*6G&.(&*.*%66G&'+"#-#&5G&*0-&A.4-("2-"*3&;0$)&0%)&0-6@-#&$"&%**(%,*$"/&@($4%*-&$"4-)*2-"*)&$"&@(.F-,*)&*0%*&,%"".*&5-&)+)*%$"-#&5G&*0-&'--)&,0%(/-#&'(.2&*0-&+)-()3&

o& ;0-&A.4-("2-"*&0%)&*.&-)*%56$)0&%&'+"#&*.&@(.4$#-&<%((%"*G&.'&$*)&.56$/%*$.")&+"#-(&*0-&%/(--2-"*3&

o& ;0-&6%<&%6).&@(.4$#-)&'.(&*0-&+)-&.'&%6*-("%*$4-&2-,0%"$)2)&'.(&#$)@+*-)&(-).6+*$."E&$",6+#$"/&%(5$*(%*$."3&

21& kS(%^$6$%"&???&?(./(%2E&`-)).")&%"#&H0%66-"/-)El&Brazil Ministry of Planning websiteE&0**@mii-)*%*$,.35+-".)%$(-)3/.43%(i%(-%)i0%,$-"#%i@#'ihs2-)%@%"-6s4%"$%6+,$%s6$")s).+*.3@#'E&%,,-))-#&:I&L-,-25-(&IJ::3

& kM"&g4-(4$-<&.'&H.",-))$.")&%"#&?+56$,C?($4%*-&?%(*"-()0$@)&$"&S(%^$6El&American Bar Association websiteE&X%(,0&IJ::3& Public Private Partnership Unit websiteE&<<<3@@@32/3/.435(E&%,,-))-#&:I&L-,-25-(&IJ::& k?($4%*$^%*$."&%"#&?+56$,C?($4%*-&?%(*"-()0$@El&Barbosa, Müssnich & Aragão Advogados websiteE&IJJhE&@3&b22& &M&,.",-))$."&$)&*0-&($/0*&*.&.@-(%*-&@+56$,&)-(4$,-)&.(&'%,$6$*$-)&'.(&%&1U-#&@-($.#&.'&*$2-E&%*&*0-&,.",-))$."%$(-P)&($)B3

H%)-&)*+#Gm&M#4%"*%/-&???&C&8G#"-G&D%(5.(&*+""-6&

o& ;0-&6-4-6&.'&*(%'1,&5-*<--"&K.(*0&8G#"-G&%"#&*0-&8G#"-G&H-"*(%6&S+)$"-))&L$)*($,*&6-#&*.&*0-&#-4-6.@2-"*&.'&*0-&*+""-6&."&???&2.#-6&\Sgg;]3&;0-&K-<&8.+*0&j%6-)&A.4-("2-"*&)-6-,*-#&*0-&8G#"-G&D%(5.(&;+""-6&H.2@%"G&?*G3&`*#3&%)&*0-&@(-'-((-#&,.").(*$+2&$"&:chV3&;0-&???&2.#-6&<$*0&.<"-()0$@&.'&@($4%*-&)-,*.(&6-#&*.&)$/"$1,%"*&%66-4$%*$."&.'&,."/-)*$."&$"&*0-&%(-%&%"#&@(.4-#&*.&5-&)+,,-))'+63

o& !"4-)*2-"*&$)&(-,.4-(-#&'(.2&*0-&(-4-"+-)&,.66-,*-#&'(.2&*0-&+)-()&$"&*0-&*-(2)&.'&,.",-))$."&\Z-4-"+-&).+(,-&t&+)-(&*%($'')]

o& Ideal for longterm sustainable projects

The Concession Law

o& 8@.").(-#&,.",-))$."&a&)*%*-&$)&%66.<-#&*.&,.2@6-2-"*&,.",-))$."%$(-P)&(-4-"+-)&\Z-4-"+-&).+(,-&t&+)-(&*%($'')&w&@+56$,]

o& M#2$"$)*(%*$4-&,.",-))$."&a&A.4-("2-"*&$)&(-)@.")$56-&'.(&*0-&@($4%*-&@%(*"-(P)&(-2+"-(%*$."&\Z-4-"+-&).+(,-&t&@+56$,&@%G2-"*)]

The Public Private Partnership Law


8,.@-&'.(&$2@(.4-2-"*m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d&5$66$."&*.&+@/(%#-&*0-&country’s infrastructure in the period 2011 to 2014.

1.7.4 Philippines23

A.4-("2-"*&.'&?0$6$@@$"-)&0%)&5--"&@(.2.*$"/&@%(*$,$@%*$."&.'&@($4%*-&)-,*.(&".*&."6G&$"&*(%#$*$."%6&$"'(%)*(+,*+(-&@(.F-,*)&)+,0&%)&@.<-(E&*(%")@.(*%*$."&%"#&<%*-(&)-,*.()E&5+*&%6).&$"&"."C*(%#$*$."%6&$"'(%)*(+,*+(-&%"#&#-4-6.@2-"*&)-,*.()&)+,0&%)&$"'.(2%*$."&%"#&,.22+"$,%*$.")&*-,0".6./GE&0-%6*0&%"#&@(.@-(*G&#-4-6.@2-"*&)$",-&:chV3&???&-"%56-#&(-).64$"/&.'&*0-&@.<-(&,($)$)&$"&*0-&-%(6G&:ccJ)&%"#&0-6@-#&$2@(.4-&(.%#&"-*<.(B&Y+%6$*GE&*(%")@.(*&6$"B%/-)&%"#&).,$%6&)-(4$,-)&$"&*0-&,.+"*(G3&???&$"$*$%*$4-)&0%4-&5%//-#&%@@(.U$2%*-6G&789:c3[5$66$."&$"&*0-&,.+"*(G3

;0-&,.+"*(GP)&???&@(./(%2&$)&%&4$*%6&,.2@."-"*&.'&$*)&#-4-6.@2-"*&@6%"3&;0-&???&,-"*-(&$)&%*&*0-&0-62&.'&%''%$()&.'&*0-&???&@(./(%23&!*&@(.4$#-)&4%($.+)&)-(4$,-)&%"#&%))$)*%",-&*.&$2@6-2-"*$"/&%/-",$-)&\!M)]E&/.4-("2-"*C.<"-#&%"#&,."*(.66-#&,.(@.(%*$.")&\AgHH)]E&)*%*-&+"$4-()$*$-)&\87H)]E&6.,%6&/.4-("2-"*&+"$*)&\`A7)]&%"#&*0-&@($4%*-&)-,*.(&$"&*0-&#-4-6.@2-"*&%"#&$2@6-2-"*%*$."&.'&,($*$,%6&$"'(%)*(+,*+(-&@(.F-,*)3&!"&%##$*$."E&*0-&,.+"*(GP)&Sg;&6%<&(-,./"$^-)&*0-&(.6-&.'&@($4%*-&)-,*.(&$"&*0-&#-4-6.@2-"*&.'&*0-&,.+"*(G&5G&@(.4$#$"/&4%($.+)&$",-"*$4-)&)+,0&%)&*%U&-U-2@*$.")3&???&,-"*-(&)-(4-)&%)&%"&-'1,$-"*&".#%6&%/-",G&'.(&???&@(.F-,*)&.'&*0-&,.+"*(G3&?(.F-,*&L-4-6.@2-"*&%"#&X."$*.($"/&=%,$6$*G&\?LX=]&.'&*0-&,-"*-(&@(.4$#-)&'+"#)&'.(&???&%,*$4$*G3

A.4-("2-"*&$)&@(.%,*$4-&$"&*%B$"/)&)*-@)&*.&5+$6#&+@&)+@@.(*&'.(&???&@(.F-,*)3&!*&0%)&%66.,%*-#&789d3h&2$66$."&$"&*0-&IJ::&5+#/-*&*.&-"%56-&)*(+,*+($"/&%"#&@(-@%(%*$."&.'&???&@(.F-,*)3&!"&%##$*$."E&$*&$)&#-4-6.@$"/&%"&$"*-($2&),0-2-&*.&@(.4$#-&%,,-))&*.&6."/C*-(2&1"%",$"/&'.(&???&@(.F-,*)&+"*$6&%&#-#$,%*-#&$"'(%)*(+,*+(-&1"%",-&'%,$6$*G&,%"&5-&established.

23& k?+56$,&?($4%*-&?%(*"-()0$@&?(.F-,*)El&Z-@+56$,&.'&?0$6$@@$"-)E&X%(,0&IJ::&& k;0-&?0$6$@@$"-&???&?(./(%2El&???&+"$*E&L-,-25-(&IJJh

H%)-&)*+#Gm&???&$"&S(%^$6&C&XACJ[J&0$/0<%G

o& ;0-&(-,.4-(GE&-U@%")$."&%"#&2%$"*-"%",-&.'&*0-&XACJ[J&0$/0<%G&<%)&*0-&1()*&0$/0<%G&@(.F-,*&$"&S(%^$6&*.&5-&-U-,+*-#&*0(.+/0&???3&;0-&eVICB2&6."/&0$/0<%G&-"*%$6)&$"4-)*2-"*&<.(*0&789d[J&2$66$."&*$66&IJeI3&;0-&@(.F-,*&$)&5-$"/&-U-,+*-#&%)&)@.").(-#&,.",-))$."&%"#&*0-&@($4%*-&@6%G-(&0%)&5--"&/(%"*-#&%&/+%(%"*--&5G&*0-&)*%*-C.<"-#&X$"%)&A-(%$)&Q,.".2$,&L-4-6.@2-"*&H.2@%"G3&

H%)-&)*+#Gm&M#4%"*%/-&???&C&K.(*0&`+^."&QU@(-))<%G&\K`Qx]

o& !"&:ccJ)E&*0-&A.4-("2-"*&.'&?0$6$@@$"-)&$"4$*-#&*0-&@($4%*-&)-,*.(&*.&+"#-(*%B-&*0-&(-0%5$6$*%*$."E&-U@%")$."E&%"#&2.#-("$^%*$."&.'&K`Qx3&;0-&*.*%6&,.)*&.'&*0-&@(.F-,*&%2.+"*-#&*.&789I[I3I&2$66$."3&;0-&@($4%*-&)-,*.(&+"#-(*..B&*0-&(-)@.")$5$6$*$-)&.'&1"%",$"/&*0-&@(.F-,*&<$*0.+*&*0-&A.4-("2-"*P)&/+%(%"*--E&5+$6#$"/&*.66<%G&%"#&%))+2$"/&,.")*(+,*$"/&($)B3&!*&(-)+6*-#&$"&#-4-6.@2-"*&.'&*0-&(-/$."%6&%/($,+6*+(-&%"#&$"#+)*(G&5-)$#-)&@(.4$#$"/&%,,-))&*.&".(*0-("&%"#&,-"*(%6&`+^."3


2.1 Overview;0-&#-4-6.@2-"*&.'&%&/..#&@0G)$,%6&%"#&).,$%6&$"'(%)*(+,*+(-&$)&,0%(%,*-($^-#&5G&)$/"$1,%"*&$"4-)*2-"*&(-Y+$(-2-"*)E&6.<&.@-(%*$"/&,.)*)&<$*0&(-@%G2-"*)&'(.2&(-4-"+-)&/-"-(%*-#&'(.2&*0-&@(.F-,*3&;0-&A.!&0%)&*(%#$*$."%66G&5--"&*%B$"/&*0-&."+)&.'&1"%",$"/E&$2@6-2-"*%*$."E&.@-(%*$.")&%"#&2%$"*-"%",-&.'&*0-)-&@(.F-,*)3&D.<-4-(E&*.&%4.$#&,.)*&%"#&*$2-&.4-((+"&%"#&5-"-1*&'(.2&$"".4%*$4-&@(.F-,*&)*(+,*+($"/&%"#&$2@6-2-"*%*$."&)*(%*-/$-)E&@($4%*-&)-,*.(&@%(*$,$@%*$."&$"&#-4-6.@2-"*&.'&$"'(%)*(+,*+(-&$)&-U*(-2-6G&,($*$,%63

;0-&A.!E&,./"$^%"*&.'&*0-&'%,*E&$)&)-**$"/&*0-&*%(/-*)&'.(&$*)&;<-6'*0&14-&G-%(&@6%"&)+,0&*0%*&*0%*&[JW&.'&*0-&$"'(%&)@-"#$"/&$)&2-*&5G&*0-&@($4%*-&)-,*.(3

2.2 Meeting the Twelfth Five Year Plan targets;0-&Q6-4-"*0&=$4-&>-%(&?6%"&\=>?]&@-($.#&.'&IJJV_IJ:I&$)&%5.+*&*.&-"#&).."&%"#&*0-&A.!&$)&,+((-"*6G&#(%'*$"/&*0-&;<-6'*0&=>?3&;0+)E&<0$6-&*0-&1"%6&;<-6'*0&14-&G-%(&@6%"&$)&G-*&*.&)--&*0-&6$/0*&.'&#%GE&*0-&M@@(.%,0&?%@-(&'.(&*0-&;<-6'*0&=>?&*%(/-*)&%"&$"'(%)*(+,*+(-&)@-"#$"/&(-Y+$(-2-"*&.'&!KZbJEccI&5$66$."&\+@&'(.2&$"'(%)*(+,*+(-&)@-"#$"/&6-4-6)&.'&!KZcEJd:&5$66$."&%"#&!KZIJE[bI&5$66$."&#+($"/&*0-&;-"*0&%"#&Q6-4-"*0&=>?)&(-)@-,*$4-6G]&$"&.(#-(&*.&%**%$"&%&)0%(-&.'&:JW&.'&*0-&,.+"*(GP)&AL?3&M(.+"#&[JW&.'&)+,0&$"4-)*2-"*&$)&-)*$2%*-#&*.&,.2-&'(.2&*0-&@($4%*-&)-,*.(E&%/%$")*&*0-&%4-(%/-&e[3hW&,."*($5+*$."&*0%*&<%)&-)*$2%*-#&$"&*0-&Q6-4-"*0&=>?3

;0-&M@@(.%,0&?%@-(24&*.&*0-&;<-6'*0&=>?&'+(*0-(&)*%*-)&*0%*&<0$6-&@+56$,&$"4-)*2-"*&$"&$"'(%)*(+,*+(-&$)&"--#-#&'.(&*0-&.4-(%66&).,$-*%6&#-4-6.@2-"*&%"#&<$#-(&(-%,0E&*0-&???C5%)-#&#-4-6.@2-"*&"--#)&*.&5-&-",.+(%/-#&$"&%66&'-%)$56-&%(-%)3&=.(&*0$)E&*0-&$")*$*+*$."%6&2-,0%"$)2)&*.&)+@@.(*&*0$)&B$"#&.'&$"4-)*2-"*&#-)-(4-&)*(."/&)+@@.(*3&

M)&%&(-)+6*E&*0-&A.!&0%)&%6(-%#G&*%B-"&4%($.+)&2-%)+(-)&*.&-"0%",-&%4%$6%5$6$*G&.'&'+"#)&%"#&2--*&$",(-%)-#&6-4-6&.'&@($4%*-&)-,*.(&@%(*$,$@%*$."3&;0-&"-U*&)-,*$."&#-),($5-)&$"&#-*%$6&-%,0&.'&*0-&'+"#$"/&).+(,-)&%"#&*0-&2-%)+(-)&*%B-"&5G&*0-&A.!&*.&-",.+(%/-&*0-&+)-&.'&)+,0&).+(,-&'.(&$"'(%)*(+,*+(-&1"%",$"/3&&

24& k=%)*-(E&)+)*%$"%56-&%"#&X.(-&$",6+)$4-&A(.<*0&_&M"&%@@(.%,0&*.&*0-&;<-6'*0&=>?El&?6%""$"/&H.22$))$."E&A.!

2.Funding infrastructure through public private partnerships

Infrastructure spending estimates across the various FYPs (in INR billion)

Source: Planning Commission projections of Investment in infrastructure during the Twelfth Five Year Plan

Planned yearwise infrastructure spending during the Twelfth FYP (in INR billion)

6,80913,113

20,4962,252 7,429

20,496

5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Tenth Plan (Actual)

Eleventh Plan (Revised)

Twelfth Plan (Projected)

Public investment Private investment

FY2013, 6,194

FY2014, 7,127

FY2015, 8,095

FY2016, 9,181

FY2017, 10,395


2.3 Means of infrastructure funding;0-&'.66.<$"/&*%56-&5(.%#6G&$"#$,%*-)&*0-&4%($.+)&2-%")&.'&'+"#$"/&'.(&%"&$"'(%)*(+,*+(-&@(.F-,*3

Sources of funds for PPP25

Forms Domestic sources External sources

Debt o& L.2-)*$,&,.22-(,$%6&5%"B)

o& L.2-)*$,&*-(2&6-"#$"/&$")*$*+*$.")

o& L.2-)*$,&5."#&2%(B-*)

o& 8@-,$%6$^-#&$"'(%)*(+,*+(-&1"%",$"/&institutions

o& !"*-("%*$."%6&,.22-(,$%6&5%"B)

o& Export credit agencies

o& !"*-("%*$."%6&5."#&2%(B-*)

o& Multilateral agencies

Equity o& L.2-)*$,&#-4-6.@-()&

o& Public utilities

o& g*0-(&$")*$*+*$."%6&$"4-)*.()

o& !"*-("%*$."%6&#-4-6.@-()&

o& QY+$@2-"*&)+@@6$-()&'+"#)

o& g*0-(&$"*-("%*$."%6&-Y+$*G&$"4-)*.()

o& Multilateral agencies

o& Bank creditm&H.22-(,$%6&5%"B)&%(-&'%,$"/&#$'1,+6*$-)&%)&*0-G&0%4-&%6(-%#G&(-%,0-#&*0-$(&6-"#$"/&-U@.)+(-&6$2$*)&'.(&*0-&$"'(%)*(+,*+(-&)-,*.(&%"#&'%,-&*0-&@(.56-2)&.'&,.",-"*(%*$."&($)B)&%"#&M`X&2$)2%*,0-)3

o& Bonds: ;0-&5."#&2%(B-*&$"&!"#$%&$)&0$/06G&+"#-(#-4-6.@-#3&;0-&(%*-&%*&<0$,0&*0-&5."#&2%(B-*&$"&!"#$%&$)&growing is considerably slow in comparison to the rate of growth needed by the GoI to build its infrastructure.

o& External Commercial Borrowings (ECBs):&QHS&6-"#$"/&$)&0$/06G&#-@-"#-"*&."&*0-&$"*-(-)*&(%*-&),-"%($.3&?(.2$"-"*&$"'(%)*(+,*+(-&,.2@%"$-)&)+,0&%)&`R;&0%4-&5--"&$",(-%)$"/6G&-4$",$"/&$"*-(-)*&$"&QHS)&%)&%"&.@*$."&for infrastructure funding.

o& Multilateral agenciesm&;0-&j.(6#&S%"B&%"#&*0-&M)$%"&L-4-6.@2-"*&S%"B&0%4-&6%+",0-#&@(./(%2)&)+@@.(*$"/&???&@(.F-,*)&$"&!"#$%3&;0-&$")*$*+*$.")&@(.4$#-&*-,0"$,%6&%"#&1"%",$%6&%))$)*%",-&*.&'%,$6$*%*-&$"'(%)*(+,*+(-&#-4-6.@2-"*3

;0-&$"'(%)*(+,*+(-&)-,*.(&0%)&5--"&<$*"-))$"/&($)$"/&#-5*&-Y+$*G&(%*$.)&$"&*0-&(-,-"*&G-%()3&;0-&)-"$.(&#-5*&$)&,."*($5+*-#&5G&5.*0&,.22-(,$%6&5%"B)&%"#&@+56$,&)-,*.(&5%"B)3&;0-&+)-&.'&)+5.(#$"%*-#&#-5*&$)&6$2$*-#&%"#&$)&+)-#&particularly in the road sector.

M@%(*&'(.2&6-"#$"/&$"&'.(2&.'&#-5*&1"%",$"/E&*0-&/.4-("2-"*&/(%"*)&%(-&#-4$)-#&*.&)+@@.(*&-,.".2$,%66G&+"4$%56-&5+*&'-%)$56-&@(.F-,*)3&;0-&#.2-)*$,&5%"B&,(-#$*&0%)&5--"&*0-&@($2-&).+(,-&.'&#-5*&1"%",$"/&$"&,%)-&.'&$"'(%)*(+,*+(-&projects.

I[& ?(.@.)-#&X+6*$*(%",0-&=$"%",$"/&=%,$6$*G&!"#$%m&!"#$%&!"'(%)*(+,*+(-&?(.F-,*&=$"%",$"/&=%,$6$*GE&M)$%"&L-4-6.@2-"*&S%"BE&K.4-25-(&IJJV

Lend

ers’

perspe

ctive


2.3.1 Commercial lendingH.22-(,$%6&6-"#-()&%(-&*0-&@(.2$"-"*&1"%",-()&'.(&*0-&$"'(%)*(+,*+(-&)-,*.(&.'&*0-&,.+"*(G3&;0-&'.66.<$"/&*%56-&$"#$,%*-)&*0%*&$"'(%)*(+,*+(-&6-"#$"/&.'&,.22-(,$%6&5%"B)&/(-<&'(.2&!KZ:E:Ih&5$66$."&$"&IJJd&*.&!KZ[EIdd&5$66$."&$"&IJ::&(-/$)*-($"/&%&/(.<*0&.'&%@@(.U$2%*-6G&edW3&!"&%##$*$."E&*0-&)0%(-&.'&5%"B&1"%",-&-U*-"#-#&*.&$"'(%)*(+,*+(-&)-,*.(&%)&%&@-(,-"*%/-&.'&/(.))&5%"B&,(-#$*&0%)&$",(-%)-#&'(.2&I3IW&$"&IJJ:&*.&%(.+"#&:e3bW&$"&IJ::326

Bank credit to the infrastructure sector

in INR billion 2006 2007 2008 2009 2010 2011

Infrastructure sector :E:Ih :Ebee IEJ[: IEdcc eEVch [EIdd

Primarily comprising

Power 601 731 c[J :EIbb :EhVh IEdc:

;-6-,.22+"$,%*$." 184 194 380 [Je [ce :EJJb

Roads and Ports 196 249 eb[ 470 Ve[ cI[

8.+(,-m&D%"#5..B&.'&8*%*$)*$,)&."&!"#$%"&Q,.".2G&IJ:JC::

D.<-4-(E&2%"G&!"#$%"&5%"B)&%(-&".<&."&*0-&4-(/-&.'&(-%,0$"/&*0-$(&2%U$2+2&6$2$*)&'.(&6-"#$"/&*.<%(#&*0-&$"'(%)*(+,*+(-&)-,*.(3&j$*0&)$/"$1,%"*&"+25-(&.'&0$/0&$"4-)*2-"*)&@(.@.)%6)&$"&*0-&@$@-6$"-&'.(&*0-&$"'(%)*(+,*+(-&)-,*.(E&*0-&5%"B)&%(-&1"#$"/&$*&#$'1,+6*&*.&1"%",-&$"'(%)*(+,*+(-&@(.F-,*)3&g"-&.'&*0-&B-G&@(.56-2)&'%,-#&5G&5%"B)&$)&*0-&%))-*C6$%5$6$*G&2$)2%*,0&@(.56-2E&*G@$,%66G&.'&$"'(%)*(+,*+(-&@(.F-,*)327

Challenge of assetliability mismatch and reaching infrastructure exposure limits

;0-&%))-*C6$%5$6$*G&2$)2%*,0&@(.56-2&%($)-)&#+-&*.&*0-&'%,*&*0%*&6."/-(&#+(%*$."&6.%")&(-Y+$(-#&5G&*0-&$"'(%)*(+,*+(-&@(.F-,*)&"--#&*.&5-&1"%",-#&5G&)0.(*-(&#+(%*$."&5.((.<$"/)3&;0-&6-"#$"/&5%"B)&%(-&1"#$"/&$*&$",(-%)$"/6G&#$'1,+6*&*.&@(.4$#-&1"%",$"/&*.&0$/0C4%6+-&@(.F-,*)&<$*0&(-@%G2-"*)&),0-#+6-)&.'&+@&*.&:[&G-%()&$"&,.2@%($)."&<$*0&#-@.)$*)&(%"/$"/&$"&2%*+($*G&@-($.#&.'&."-&*.&*0(--&G-%()3&j$*0&M`X&%"#&,.",-"*(%*$."&($)B)E&*0-&6.%")&%(-&".*&,.2@6-*-&(-T-,*$."&.'&*0-&@(.F-,*&($)B&%"#&6.%"&@($,$"/&,."*(.6)&\'.(&6$Y+$#$*G&)0.(*'%66&%"#&(-1"%",$"/&($)B]3&;0-&6.<&#-@.)$*&(%*-)&0%4-&'+(*0-(&%//(%4%*-#&*0-&)$*+%*$."&%)&*0-&#-@.)$*.()&%(-&+"<$66$"/&*.&,.22$*&*0-2)-64-)&to longterm maturities28.

26& ZS!&M""+%6&Z-@.(*&IJ:JC::E&@/[:27& k`.%"C#-@.)$*&2$)2%*,0&2%G&0$*&5%"B&6-"#$"/&*.&$"'(%&)-,*.(El&Live Mint websiteE&0**@mii<<<36$4-2$"*3

,.2iIJ::iJIiJhIIbeIhi`.%"#-@.)$*C2$)2%*,0C2%GC0$*30*26E&%,,-))-#&."&b&f%"+%(G&IJ:I28& kS%"B&'%,-&%))-*C6$%5$6$*G&2$)2%*,0&."&$"'(%&6-"#$"/El&Business Standard websiteE&0**@mii<<<35+)$"-))C)*%"#%(#3,.2i$"#$%i

"-<)i5%"B)C'%,-C%))-*C6$%5$6$*GC2$)2%*,0$"'(%C6-"#$"/ieceJh[iE&%,,-))-#&Ic&L-,-25-(&IJ::

“Infrastructure loans are of 1015 years duration, while most bank deposits have tenure of onetwo 3.%,'5$62$#7.$&%'#$02%21)%&$3.%,8$not much disbursement took place, and now every bank is sitting on huge sanctions waiting to be disbursed. This is going to create a major problem, as we won’t have deposits of equal maturity,”

&H0%$(2%"&%"#&X%"%/$"/&L$(-,*.(&.'&% &@+56$,&)-,*.(&5%"B

\8.+(,-m&S+)$"-))&8*%"#%(#]

Lend

ers’ persp

ectiv

e


;0-&#$''-(-",-&5-*<--"&6$%5$6$*$-)&%"#&%))-*)&4%($-)&%,,.(#$"/&*.&*0-$(&2%*+($*G&@(.16-&5+,B-*)3&;0-&*%56-&$"#$,%*-)&*0%*&%)&*0-&2%*+($*G&*$2-&@-($.#&$",(-%)-)E&*0-&6$%5$6$*$-)&\#-@.)$*)&%"#&5.((.<$"/)]&)+(@%))&*0-&%))-*)&\6.%"&%"#&%#4%",-)&%"#&$"4-)*2-"*)]3&!*&(-)+6*)&$"&%))-*&6$%5$6$*G&2$)2%*,0&'.(&5%"B)3&

;0-&@(.56-2&%,,-"*+%*-)&<$*0&$"'(%)*(+,*+(-&6-"#$"/&%)&$"'(%)*(+,*+(-&6.%")&%(-&6."/C*-(2&$"&"%*+(-3&&

=6,.&>'!60-1$03'<1"%.&'"?'(&.&80&#'$0&5('"?'.$6,$.$0$&('6*#'6((&0('"?'?"-1'<-,.$8'(&80"1',6*2('/$*'@AB'5$..$"*4'6('on 31 March 2011

SBI Bank of India Punjab National Bank

Canara Bank Total

Deposits

g4-(&[&G-%() :E[V:Ed[d [ehEV:c V:bEbId [IeEbdb eVVE[hV

Borrowings

g4-(&[&G-%() bJcEdce chE:ec :J:EVh: beE[[J VVEchd

Loan and Advances

g4-(&[&G-%() :EedJEIJb edeEeJV IdbEchd e[[E:I[ IhVE:d:

Investments (at book value)

g4-(&[&G-%() :EdJJE:Ie [beEeeb [VcEbed [cVEch[ eVbEJch

Difference

g4-(&[&G-%() cVEhch IdEcVh IEhII ehEd:J IJE[dc

!"&*0-&%5)-",-&.'&%&#-4-6.@-#&,.(@.(%*-&5."#&2%(B-*E&+)-&.'&(-1"%",$"/&'%,$6$*G&0%)&5--"&)+//-)*-#&*.&2$*$/%*-&M`X&2$)2%*,0-)3&7"#-(&*0$)&'%,$6$*GE&*0-&6."/C*-(2&'+"#)&<$66&5-&5.((.<-#&%"#&+)-#&*.&(-1"%",-&$"'(%)*(+,*+(-&6.%")&.'&5%"B)&%"#&)@-,$%6$^-#&KS=H)3

“Many banks are close to exhausting their internal limits '.#$/(,$)2/,%'#,"1#",.$0,*'95We may not see the same pace of expansion, in terms of credit disbursement to the infrastructure sector, in the next two years that we have seen in the past two years”

Z3&Z%2%,0%"#(%"E&H0%$(2%"&%"# &X%"%/$"/&L$(-,*.(&.'&M"#0(%&S%"B

“Maximum loan proposals are coming from this (infrastructure) sector. All are bigticket +,(+('%&'9:%2;'$<)&&$7%-.$#($see their loan book and see what their headroom available for lending”

?3O3&M"%"#E&QU-,+*$4-&#$(-,*.(&.'& ?+"F%5&%"#&8$"#&S%"B

\8.+(,-m&`$4-2$"*]Lend

ers’ persp

ectiv

e


=62&+"-0'%*6*8$*)'6('6'(".-0$"*>&;0-&*%B-C.+*&1"%",$"/&),0-2-&0%)&5--"&#-4-6.@-#&*.&#-%6&<$*0&$))+-)&.'&0$**$"/&)-,*.(%6&6$2$*)E&,.",-"*(%*$."&($)B&%"#&%))-*C6$%5$6$*G&2$)2%*,03&;0-&*%B-.+*&1"%",$"/&),0-2-&$"4.64-)&*0(--&@%(*$-)&a&@(.F-,*&,.2@%"GE&6-"#$"/&,.2@%"G&%"#&*%B$"/&.4-(&$")*$*+*$."&\5%"Bi,.").(*$+2&.'&5%"B)i=!]3&7"#-(&*0-&),0-2-E&*0-&*%B$"/&.4-(&$")*$*+*$."&-"*-()&%"&%/(--2-"*&5G&<0$,0&*0-&6-"#-(&*(%")'-()&%&@%(*i<0.6-&.'&*0-&.+*)*%"#$"/&*.&*0-&*%B$"/&.4-(&$")*$*+*$."&."&%&@(-C#-*-(2$"-#&5%)$)3&;0-&,.",-@*&.'&*%B-.+*&1"%",$"/&0%)&5--"&%,,-@*-#&%)&%&/6.5%6&@(%,*$,-&*.&(-6-%)-&6."/C*-(2&'+"#)&'.(&1"%",$"/&$"'(%)*(+,*+(-&@(.F-,*)3&

!!=HÈ&%"&8?n&'.(2-#&'.(&*0-&@+(@.)-&.'&6-"#$"/&'+"#)&*.&$"'(%)*(+,*+(-&@(.F-,*)&%"#&)+@@6-2-"*&.*0-(&6.%")&'(.2&5%"B)&%"#&1"%",$%6&$")*$*+*$.")E&0%)&5--"&(-,./"$^-#&%)&%&)@-,$%6&%/-",G&*.&-U*-"#&*%B-.+*&1"%",-&),0-2-&$"&IJ:J3&M&*($@%(*$*-&%/(--2-"*&<%)&)$/"-#&$"&8-@*-25-(&IJ::&5-*<--"&!!=HÈ&`!H&%"#&!L=H&<0$,0&%66.<)&*%B-.+*&1"%",$"/&*.&%"&-U*-"*&.'&[JW29 of the project cost.

!!=H`&0%)&'+(*0-(&$",(-%)-#&*%B-C.+*&1"%",$"/&#$)5+()-2-"*&*%(/-*&5G&!KZ[J&5$66$."&%)&%&(-)+6*&.'&<0$,0&*0-&5%"B)&%"#&$"'(%)*(+,*+(-&#-4-6.@-()&%(-&-U@-,*-#&*.&/-*&%**(%,*$4-&*%B-.+*&1"%",$"/&#-%6)3&7"#-(&*0-&"-<&,.",-))$."&$"&???&@(.F-,*)E&*0-&*%B-C.+*&1"%",$"/&(%*-&$)&6$B-6G&*.&4%(G&'(.2&c3cJW&*.&:J3h[W3&;0-&5%"B)&<$66&".<&5-&%56-&*.&)--B&.+*&*%B-.+*&1"%",$"/&$22-#$%*-6G&%'*-(&*0-&,.22-(,$%6&.@-(%*$."&#%*-3&M6).E&*0-&Sg;&@(.F-,*)&.'&KDM!&<$66&5-&-6$/$56-&'.(&*0-&),0-2-3&;0-)-&,0%"/-)&<$66&-"%56-&5%"B)&(-#+,-&-U@.)+(-&*.&-U$)*$"/&5.((.<-()&%"#&'(--&+@&*0-$(&capital and operate within the exposure limits.30

X-%)+(-)&*%B-"&5G&*0-&ZS!31

M##$*$."%66GE&*0-&Z-)-(4-&S%"B&.'&!"#$%&\ZS!]&0%)&*%B-"&%&"+25-(&.'&(-/+6%*.(G&,.",-))$.")&'.(& $"'(%)*(+,*+(-&1"%",-m

o& ?-(2$**$"/&5%"B)&*.&-"*-(&*%B-C.+*&1"%",$"/&%((%"/-2-"*

o& =(--#.2&*.&$))+-&6."/&*-(2&5."#)&5G&5%"B)&

o& Relaxation of single and group borrower limit for additional credit exposure in the infrastructure sector

o& =6-U$5$6$*G&*.&$"4-)*&$"&+"(%*-#&5."#)&.'&,.2@%"$-)&-"/%/-#&$"&$"'(%)*(+,*+(-&%,*$4$*$-)&<$*0$"&*0-&.4-(%66&,-$6$"/&of 10%

o& QU,6+#$"/&*0-&@(.2.*-()P&)0%(-)&$"&*0-&8?n&.'&%"&$"'(%)*(+,*+(-&@(.F-,*&*.&5-&@6-#/-#&*.&*0-&6-"#$"/&5%"B&'(.2&*0-&5%"B)P&,%@$*%6&2%(B-*&-U@.)+(-&

o& ?-(2$**$"/&5%"B)&*.&-U*-"#&1"%",-&*.&'+"#&@(.2.*-(P)&-Y+$*G&<0-(-&*0-&@(.@.)%6&$"4.64-)&%,Y+$)$*$."&.'&)0%(-&in an existing company engaged in implementing or operating an infrastructure project in India.

=+(*0-(E&*0-&,-"*(%6&5%"B&(-,-"*6G&-%)-#&*0-&".(2)&5G&%66.<$"/&5%"B)&*.&6-"#&IJW&.'&$*)&,%@$*%6&'+"#)&*.&!"'(%)*(+,*+(-&=$"%",-&H.2@%"$-)&\!=H)]3

29& k!!=HÈ&`!HE&!L=H&-"*-(&$"*.&X.7&'.(&*%B-.+*&1"%",$"/El&Economic Times websiteE&0**@mii%(*$,6-)3-,.".2$,*$2-)3$"#$%*$2-)3,.2iIJ::CJcC:ci"-<)ieJ:V[ddVs:s*%B-.+*C1"%",$"/C$$',6C$"#$%C$"'(%)*(+,*+(-C1"%",-E&%,,-))-#&I&f%"+%(G&IJ:I

30& k!!=H`&(%$)-)&*%B-.+*&1"&5%(&5G&Z)[EJJJ&,(.(-El&DNA websiteE&0**@mii<<<3#"%$"#$%3,.2i2."-Gi(-@.(*s$$',6C(%$)-)C*%B-.+*C1"C5%(C5GC()[JJJC,(.(-s:dIVhVhE&%,,-))-#&IJ&L-,-25-(&IJ::

31& kO&H&H0%B(%5%(*Gm&!"'(%)*(+,*+(-&1"%",-&_&-U@-($-",-)&%"#&*0-&(.%#&%0-%#El&S!8&Z-4$-<E&=-5(+%(G&IJ:J


2.3.2 Bonds;0-&5."#&2%(B-*&$"&!"#$%&,.2@($)-)&$))+%",-)&5G&5.*0&H-"*(%6&%"#&)*%*-&/.4-("2-"*)E&@+56$,&)-,*.(&+"#-(*%B$"/)E&.*0-(&/.4-("2-"*&5.#$-)E&1"%",$%6&$")*$*+*$.")E&5%"B)&%"#&,.(@.(%*-)3&D.<-4-(E&*0-&,.(@.(%*-&5."#&2%(B-*&,+((-"*6G&$)&0$/06G&+"#-(#-4-6.@-#&%"#&6%,B)&6$Y+$#$*G&%"#&#-@*0332

;0-&,.(@.(%*-&#-5*&2%(B-*)&0%4-&5--"&,.")*(%$"-#&5G&#-*%$6-#&@($2%(G&$))+-&/+$#-6$"-)E&6-"/*0G&@(.,-))-)E&%"#&%5)-",-&.'&6."/C*-(2&$"4-)*.()3&

;0-&5."#&2%(B-*&@($2%($6G&'+",*$.")&%)&%&@($4%*-&@6%,-2-"*&2%(B-*&%)&*0-&@+56$,&$))+-)&.'&5."#)&0%4-&5--"&'.+"#&*.&5-&#$'1,+6*E&)6.<E&-U@-")$4-&%)&<-66&%)&($)BG3&M&#-5*&@($4%*-&@6%,-2-"*&%2.+"*&.'&!KZ[3b&5$66$."&was raised in the infrastructure sector during FY09 up '(.2&!KZb3e&5$66$."&$"&=>Jh333 Indian companies are allowed to issue bonds in Indian ,+((-",G&'.(&*(%#$"/&."&*0-&,.(@.(%*-&5."#&2%(B-*&$"&*0-&country according to the existing regulations. Foreign $")*$*+*$."%6&$"4-)*.()&%(-&@-(2$**-#&*.&$"4-)*&$"&*0-)-&5."#)&+@&*.&!KZce[&5$66$."&,.66-,*$4-6GE&<$*0&%&k,%(4-&.+*l&.'&!KZIeb&5$66$."&'.(&$"'(%)*(+,*+(-&@(.F-,*)334

2.3.3 External commercial borrowingsQU*-("%6&,.22-(,$%6&5.((.<$"/)&\QHS)]&,%"&%6).&)-(4-&%)&%"&$2@.(*%"*&2-%")&.'&'+"#$"/&#-5*&(-Y+$(-2-"*)&.'&*0-&$"'(%)*(+,*+(-&@(.F-,*3&;0-&"+25-(&.'&QHS)&-U*-"#-#&#-@-"#)&."&$"*-(-)*&(%*-)&$"&*0-&,.+"*(G3&g4-(&*0-&G-%()E&*0-G&0%4-&5-,.2-&,0-%@-(&%"#&#-4-6.@-()&%(-&$",(-%)$"/6G&4$-<$"/&*0-2&%)&%"&%6*-("%*-&).+(,-3&

8.2-&.'&*0-&(-/+6%*.(G&,0%"/-)&$2@6-2-"*-#&*.&2%B-&QHS)&%"&$2@.(*%"*&2-%")&.'&'+"#$"/&$",6+#-m

o& !"&X%G&IJ::E&*0-&ZS!&@-(2$**-#&!=H)&*.&(%$)-&'+"#)&*0(.+/0&QHS)&.'&+@&*.&[JW&.'&"-*C.<"-#&'+"#)&<$*0.+*&%@@(.4%63e[

o& !"&8-@*-25-(&IJ::E&*0-&6$2$*)&*.&%4%$6&QHS&+"#-(&*0-&%+*.2%*$,&(.+*-&0%)&5--"&6$5-(%6$^-#&%)&/$4-"&5-6.<m36

o& H.(@.(%*-)&$"&(-%6&)-,*.(i$"#+)*($%6&)-,*.(i$"'(%)*(+,*+(-&)-,*.(&a&!KZe[&5$66$."&.(&-Y+$4%6-"*&%)&,.2@%(-#&*.&*0-&,+((-"*&6$2$*&.'&!KZIe3e&5$66$."&.(&-Y+$4%6-"*

32& k!"#$%&*.&)-*&+@&4$5(%"*&5."#&2%(B-*m&X+B0-(F--El&Economic Times websiteE&0**@mii-,.".2$,*$2-)3$"#$%*$2-)3,.2i2%(B-*)i5."#)i$"#$%C*.C)-*C+@C4$5(%"*C5."#C2%(B-*C2+B0-(F--i%(*$,6-)0.<iVeIJcbb3,2)E&%,,-))-#&IJ&L-,-25-(&IJ::

33& k?(.#+,*&!"".4%*$.")&'.(&=$"%",$"/&!"'(%)*(+,*+(-m&M&8*+#G&.'&!"#$%P)&L-5*&X%(B-*)lE&M)$%"&L-4-6.@2-"*&S%"BE&g,*.5-(&IJ::34& k!"#$%&*.&)-*&+@&4$5(%"*&5."#&2%(B-*m&X+B0-(F--El&!"#.CM)$%"&K-<)&8-(4$,-E&:c&f%"+%(G&IJ::E&4$%&=%,*$4%&q&IJ::&D;&X-#$%&

`$2$*-#3e[& QHS&".(2)&6$5-(%6$^-#&'.(&$"'(%)*(+,*+(-&1"%",-&1(2)E&`$4-&2$"*E&X%G&IJ::36& kQU*-("%6&H.22-(,$%6&S.((.<$"/)&\QHS]&_&Z%*$."%6$)%*$."&%"#&`$5-(%6$)%*$."El&ZS!E&8-@*-25-(&IJ::

India plans to develop a vibrant bond market to facilitate )2/,%'#,"1#",.$02%21)2=8$%'$the source of nearly onethird of the targeted $1 trillion investment in the sector during the Twelfth plan period is not ;2(<2$3.#955>?.$<%2#$#($develop and set up a vibrant bond market in the country to facilitate infrastructure 02%21)2=5>

?(%"%5&X+B0-(F--& D."P56-&=$"%",-&X$"$)*-(&.'&!"#$%

\8.+(,-m&Q,.".2$,&;$2-)]

“ The success of government’s very ambitious infrastructure programme hinges on developing an adequate bond market “

L3D3?%$&?%"%"#$B-(E&?(-)$#-"*E&Z?A&=.+"#%*$." \8.+(,-m&S+)$"-))&j--B]

Lend

ers’

perspe

ctive


o& H.(@.(%*-)&$"&)@-,$1-#&)-(4$,-&)-,*.()&)+,0&%)&0.*-6E&0.)@$*%6&%"#&).'*<%(-&a&!KZc3e&5$66$."&.(&-Y+$4%6-"*&%)&%/%$")*&*0-&,+((-"*&6$2$*&.'&!KZb3d&5$66$."&.(&-Y+$4%6-"*

o& ;0-&,.(@.(%*-&-"*$*$-)&$"&*0-&$"'(%)*(+,*+(-&)-,*.(&,%"&".<&%4%$6&.'&QHS)&'.(&$"*-(-)*&#+($"/&,.")*(+,*$."&\!LH]&%)&%&@-(2$))$56-&-"#C+)-E&+"#-(&*0-&%+*.2%*$,i%@@(.4%6&(.+*-E&%)&*0-&,%)-&2%G&5-E&)+5F-,*&*.&!LH&5-$"/&%&@%(*&.'&project cost and is capitalized.

;0-&A.!&%@@(.4-#&'+"#&(%$)$"/&<.(*0&!KZdJc3[&5$66$."&5G&,.2@%"$-)&*0(.+/0&-U*-("%6&,.22-(,$%6&5.((.<$"/&\QHS]&.(&'.(-$/"&,+((-",G&,."4-(*$56-&5."#)&\=HHS]&'.(&$"'(%)*(+,*+(-&@(.F-,*)&$"&*0-&6%)*&*<.&1"%",$%6&G-%()337

H.2@%"$-)&)+,0&%)&`R;&=$"%",-&%(-&2+66$"/&*0-&QHS&(.+*-&'.(&$*)&-U@%")$."3&`R;&!"'(%)*(+,*+(-&=$"%",-&(%$)-#&!KZb3I&5$66$."&*0(.+/0&*0-&QHS&<$"#.<&*0$)&1),%6&%"#&$)&%$2$"/&*.&(%$)-&2.(-&'+"#)&*0(.+/0&*0$)&(.+*-338

2.3.4 Foreign investment funding=.(-$/"&#$(-,*&$"4-)*2-"*&\=L!]&a&=L!&.'&+@&*.&:JJW&$)&@-(2$**-#&$"&/(--"1-6#&$"'(%)*(+,*+(-&@(.F-,*)&+"#-(&*0-&%+*.2%*$,&(.+*-3&!"&*0-&,%)-&.'&-U$)*$"/&@(.F-,*)E&=L!&+"#-(&*0-&%+*.2%*$,&(.+*-&$)&@-(2$**-#&+@&*.&VbW&%"#&=!?S&%@@(.4%6&$)&(-Y+$(-#&5-G."#&VbW3&=L!&/%$"-#&%&@(.2$"-"*&(.6-&$"&$"'(%)*(+,*+(-&1"%",$"/&$"&*0-&(-,-"*&G-%()3&;.*%6&=L!&$",(-%)-#&'(.2&789[3Je&5$66$."&$"&IJJI_Je&*.&789IV3JI&5$66$."339&g4-(&*0-&"-U*&*<.&G-%()E&!"#$%&,.+6#&%**(%,*&=L!&<.(*0&789hJ&5$66$."3&;0-&$"'(%)*(+,*+(-&)-,*.(&%)&%&@-(,-"*%/-&.'&*.*%6&=L!&$",(-%)-#&)$/"$1,%"*6G&'(.2&%(.+"#&bW&$"&IJJI_Je&*.&%(.+"#&:d3VW&$"&IJ:J_::340&A.$"/&5G&*0-)-&*(-"#)E&=L!&,.+6#&)$/"$1,%"*6G&,."*($5+*-&*.&1"%",$"/&infrastructure in India.

2.3.5 Foreign Institutional Investment (FII);0-&A.!&$)&(-@.(*-#6G&$"&*%6B)&<$*0&*0-&(-/+6%*.(G&%+*0.($*$-)&*.&%66.<&$"'(%)*(+,*+(-&1"%",-&,.2@%"$-)&*.&$))+-&5."#)&*.&'.(-$/"&$"4-)*.()&'.(&*0-&@+(@.)-&.'&(%$)$"/&$"'(%)*(+,*+(-&1"%",-&$"&*0-&,.+"*(G3&;0-&A.!&0%#&-%(6$-(&(%$)-#&*0-&6$2$*&."&=!!&$"4-)*2-"*&$"&,.(@.(%*-&5."#)&.'&#+(%*$."&.'&2.(-&*0%"&14-&G-%()&$))+-#&5G&,.2@%"$-)&$"&*0$)&)-,*.(341

2.3.6 Multilateral agencies lending !")*$*+*$.")&)+,0&%)&*0-&j.(6#&S%"B&%"#&*0-&M)$%"&L-4-6.@2-"*&S%"B&%6).&@(.4$#-&'+"#)&*.&1"%",-&???&infrastructure projects.

M)$%"&L-4-6.@2-"*&S%"B42

;0-&A.!&)*%(*-#&%&???&$"$*$%*$4-&,%66-#&kX%$")*(-%2$"/&???)&$"&!"#$%l&$"&,.66%5.(%*$."&<$*0&MLS3&!*&,.22-",-#&$"&IJJV&*.&-"%56-&???)&5G&'.,+)$"/&."&%66&%,*$4$*$-)&(-6%*$"/&*.&4%($.+)&@%(%2-*-()&)+,0&%)&@(.,-))&)*%"#%(#$^%*$."E&)-,*.(&*..6)E&#-4-6.@2-"*&'+"#)&%"#&@(.F-,*)&#-4-6.@2-"*343

MLS&%6).&@(.4$#-)&)+@@.(*&*.&!"#$%&$"&)*(+,*+($"/&.'&@.*-"*$%6&???&*0(.+/0&$*)&)+@@.(*&$"&*0-&'.(2&.'&;-,0"$,%6&M))$)*%",-&\;M]3;0-&)+@@.(*&@(.4$#-#&5G&*0-&$")*$*+*$."&$)&$"&*0-&'.66.<$"/&'.(2)m

o& ?+56$,&)-,*.(&6.%")&*.&)*%*-)&.(&2+"$,$@%6$*$-)&'.(&1"%",$"/&/(%"*)i-Y+$*G&)+@@.(*

o& ?+56$,&)-,*.(&6.%")&*.&!!=H`&*0%*&'+(*0-(&/(%"*&'+"#)&'.(&@(.F-,*&,.2@%"$-)

o& ?($4%*-&)-,*.(&6.%")&*.&@(.F-,*&,.2@%"$-)

o& ?(.4$)$."&.'&/+%(%"*--&*.&,.22-(,$%6&6-"#-()3

37& 0**@mii<<<3@(.F-,*)$"'.3$"iK-<)3%)@Ur"!#t*Y8Vy64Ywy%I%'G2%'.X@/tt38& k`R;&!"'(%&6%+",0-)&*%UC'(--&5."#)z&2+66)&QHS&(.+*-&'.(&'+"#)El&Business Line websiteE&0**@mii<<<3*0-0$"#+5+)$"-))6$"-3

,.2i$"#+)*(GC%"#C-,.".2Gi5%"B$"/i%(*$,6-Id[dbcd3-,-E&%,,-))-#&II&L-,-25-(&IJ::39& L-@%(*2-"*&.'&!"#+)*($%6&?.6$,G&%"#&?(.2.*$."E&!"#$%&=L!&=%,*&80--*&_&M@($6&IJ::&?/b40& ZS!&M""+%6&Z-@.(*&IJ:JC::&@/VJ41& k0**@mii<<<32."-G,."*(.63,.2i"-<)i5+)$"-))i/.4*C%$2)C*.C-%)-C1$C-"*(G$"'(%C1"%",-C5."#)C).+(,-)s[VcVJV30*2642& H.+"*(G&g@-(%*$.")&S+)$"-))&?6%"E&MLSE&L-,-25-(&IJ:J43& k;0-.(-*$,%6&=(%2-<.(BEl&ADB websiteE&0**@mii<<<3%#53.(/i!"#$%i???i%5.+*3%)@E&%,,-))-#&I&f%"+%(G&IJ:I


MLSP)&;M&)+@@.(*&'.(&*0-&!"#$%"&???&@(./(%2&$#-"*$1-#&2.(-&*0%"&eJ&@$6.*&@(.F-,*)&%,(.))&,0%66-"/$"/&)-,*.()&)+,0&%)&+(5%"E&0-%6*0E&-#+,%*$."E&@.<-(&#$)*($5+*$."&%"#&*0-&(+(%6&)-,*.(3&!*&$)&)+@@.(*$"/&%@@(.U$2%*-6G&b[I&???&@(.F-,*)&across the country through the PPP cells.

j.(6#&S%"B

j.(6#&S%"B&)+@@.(*&$"*-"#)&*.&$",(-%)-&*0-&%4%$6%5$6$*G&.'&6."/C*-(2&1"%",$"/&'.(&$"'(%)*(+,*+(-&???&@(.F-,*)&$"&!"#$%3&!*&<$66&0-6@&!!=H`&*.&)*$2+6%*-&*0-&#-4-6.@2-"*&.'&%&6."/C*-(2&6.,%6&,+((-",G&#-5*&1"%",$"/&2%(B-*&'.(&infrastructure in India.

;0-&!"*-("%*$."%6&S%"B&'.(&Z-,.")*(+,*$."&%"#&L-4-6.@2-"*&\!SZL]&0%)&@(.4$#-#&%&`$"-&.'&H(-#$*&\`.H]&.'&!KZ[h&5$66$."&*.&!!=H`&'.(&$"'(%)*(+,*+(-&@(.F-,*)3&

!"&%##$*$."E&j.(6#&S%"B&@(.F-,*&\IJJc_IJ:[]&(-/%(#$"/&!!=H`&)+@@.(*&$)&-U@-,*-#&*.&5($"/&%(.+"#&:[J&"-<&???)&*.&1"%",$%6&,6.)+(-E&(-)+6*$"/&$"&%&'.+(C'.6#&$",(-%)-&$"&*0-&%2.+"*&.'&@($4%*-&,%@$*%6&%4%$6%56-3&8+,0&%&1"%",$"/&<$66&)+@@.(*&%&"+25-(&.'&???&@(.F-,*)E&2%$"6G&$"&*0-&(.%#)E&@.<-(&%"#&@.(*)&)-,*.()3

2.3.7 Insurance/pension funds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

“The government clears policy impediments to enable life insurance companies and pension funds, which have funds for 2030 years at their disposal, to invest in the infrastructure sector.”

8+//-)*-#&5G&OH&H0%B(%5%(*GE&L-@+*G&A.4-(".(E&ZS! &\8.+(,-m&;0-&;$2-)&.'&!"#$%]

Setting up of India infrastructure debt fund

;0-&A.!&0%)&6%$#&#.<"&*0-&'.(2%*&'.(&!KZ[JJ&5$66$."&$"'(%)*(+,*+(-&#-5*&'+"#&<$*0&[JW&@%(*$,$@%*$."&'(.2&'.(-$/"&5%"B)&%"#&2+6*$6%*-(%6&%/-",$-)&%"#&*0-&(-2%$"$"/&5-$"/&,."*($5+*-#&5G&*0-&)*%*-C.<"-#&=!)3&;0-&'+"#&$)&-U@-,*-#&*.&6-"#&*.&%"G&$"'(%)*(+,*+(-&@(.F-,*E&<0$,0&$)&5%)-#&."&???3


2.4 GrantsA(%"*&$)&*0-&%2.+"*E&<0$,0&%&@(.F-,*&%<%(#$"/&%+*0.($*G&@(.4$#-)&*.&*0-&@(.F-,*&)@.").(&$"&.(#-(&*.&)+@@.(*&*0-&1"%",$%6&4$%5$6$*G&.'&%&@(.F-,*3&?(.F-,*)&*0%*&%(-&".*&,.22-(,$%66G&4$%56-&."&*0-$(&.<"&(-Y+$(-&%&'+"#&)+@@.(*&'(.2&*0-&A.!3&;0-&A.!&$"*(.#+,-#&kn$%5$6$*G&A%@&=+"#l&*.&@(.4$#-&,%*%6G*$,&%))$)*%",-&%"#&)+@@.(*E&-)@-,$%66G&'.(&(-/$.")&%"#&)-,*.()&<0-(-&???)&%(-&#$'1,+6*3

2.5 Private sector capabilities?($4%*-&)-,*.(&$)&)6%*-#&*.&@6%G&%"&$2@.(*%"*&(.6-&$"&@(.4$#$"/&'+"#)&'.(&#-4-6.@2-"*&.'&$"'(%)*(+,*+(-&$"&*0-&,.+"*(G3&!*&$)&-U@-,*-#&*.&1"%",-&[JW&.'&$"4-)*2-"*&.'&789:&*($66$."&$"&$"'(%)*(+,*+(-&@(.F-,*)&$"&*0-&,.+"*(G&#+($"/&*0-&@-($.#&IJ:I_:V3&;0-&?6%""$"/&H.22$))$."&)*%*-)&*0%*&%@%(*&'(.2&*0-&0$/0<%G&%"#&@.<-(&)-,*.()E&*0-&'.66.<$"/&%(-%)&,%"&%6).&6-4-(%/-&!"#$%P)&@($4%*-&)-,*.(&,%@%5$6$*$-)&#+($"/&*0-&;<-6'*0&=>?344

o& Civil aviation:&?($4%*-&)-,*.(&,."*($5+*-#&*.&*0-&2.#-("$^%*$."&.'&%$(@.(*&$"'(%)*(+,*+(-3&;0-&"-<&X+25%$&%$(@.(*&$)&-U@-,*-#&*.&5-&#-4-6.@-#&."&???&2.#-63&?($4%*-&)-,*.(&,%@%5$6$*$-)&,%"&%6).&5-&6-4-(%/-#&'.(&#-4-6.@2-"*&.'&.*0-(&%$(@.(*)&$"&*0-&,.+"*(G3

o& Higher education:&?($4%*-&)-,*.(&/(.<*0&$"&0$/0-(&-#+,%*$."&"--#)&*.&5-&'%,$6$*%*-#&*0(.+/0&+*$6$^$"/&$"".4%*$4-&PPP models.

o& Skill development:&7@/(%#$"/&.'&!;!)&*0(.+/0&*0-&???&2.#-6&%"#&@%(*$,$@%*$."&.'&@($4%*-&)-,*.(&$"&1"%",$"/E&)-(4$,-&#-6$4-(GE&%"#&*(%$"$"/&.'&*(%$"-()3

o& Housing:&8,.@-&.'&%''.(#%56-&0.+)$"/&'.(&<-%B-(&)-,*$.")&,%"&5-&-U@%"#-#&*0(.+/0&@%(*$,$@%*$."&.'&@($4%*-&sector.

44& M"&M@@(.%,0&*.&;<-6'*0&=$4-&G-%(&@6%"E&?6%""$"/&H.22$))$."E&g,*.5-(&IJ::

n$%5$6$*G&A%@&=+"#$"/Financing:

o& ?(.4$#$"/&IJW&.'&@(.F-,*&,.)*

o& M##$*$."%6&IJW&,%"&5-&%66.<-#&5G&*0-&)@.").($"/&%+*0.($*GE&$'&(-Y+$(-#

Eligible sectors:

o& ;(%")@.(*%*$."&$%$6E&(.%#<%G)E&)-%@.(*E&0$/0<%G)]

o& Power/ Energy

o& 7(5%"&$"'(%)*(+,*+(-&\<%*-(&)+@@6GE&)-<%/-E&).6$#&<%)*-&2%"%/-2-"*]

o& ;.+($)2&\$"*-("%*$."%6&,."4-"*$."&,-"*-()]

o& 8@-,$%6&Q,.".2$,&p."-)

Current status:

;0-&*.*%6&n$%5$6$*G&A%@&=+"#$"/&\nA=]&.+*6%G&'.(&*0-&Q6-4-"*0&=$4-&>-%(&?6%"&\IJJV_IJ:I]&0%#&5--"&-)*$2%*-#&%*&!KZdc3Ve&5$66$."3&!"&*0-&=>:J_::&%6."-E&!KZb3hJ&5$66$."&<%)&@(.4$#-#&%)&nA=3&;0-&*.*%6&%@@(.4%6)&'.(&nA=&/(%"*&*$66&".<&%(-&!KZhI3hc&5$66$."&'.(&@(.F-,*)&*0%*&0%4-&5--"&/(%"*-#&k!"C@($",$@6-i1"%6&%@@(.4%6l3&;0-&%,*+%6&6-4-6&.'&nA=&%2.+"*&.'&*0-)-&@(.@.)%6)&<$66&5-&B".<"&.",-&*0-&5$##$"/&@(.,-))&$)&,.2@6-*-#3

\8.+(,-m&g+*,.2-&5+#/-*&=>::_:IE&X$"$)*(G&.'&=$"%",-E&@/&e]

;0-&,.4-(%/-&.'&nA=&),0-2-&$)&%6).&5-$"/&,.")$#-(-#&'.(&-U@%")$."&$"&,%)-&.'&-#+,%*$."&%"#&0-%6*0&)-,*.()3&M6).E&*0-&)*%*-&/.4-("2-"*)&$+,0&%)&7?&A.4-("2-"*]&%(-&+"#-(*%B$"/&#-4-6.@2-"*&@(.F-,*)&*0(.+/0&nA=&*.&2%B-&*0-2&@(.1*%56-&'.(&@(.2.*-()3


o& Urban infrastructure:&;0-(-&%(-&)$/"$1,%"*&.@@.(*+"$*$-)&'.(&@($4%*-&)-,*.(&$"&*0-&1-6#)&.'&+(5%"&(-"-<%6&%"#&2%"%/-2-"*E&#($"B$"/&<%*-(&)+@@6GE&<%)*-&<%*-(&(-,G,6$"/E&*(-%*2-"*&.'&2+"$,$@%6&)-<-(%/-&<%)*%/-&%"#&treatment or urban sewerage.

o& Health care services: ???&%((%"/-2-"*)&,%"&5-&+*$6$^-#&*.&1"%",-&0-%6*0&,%(-&)-(4$,-)&%"#&*.&)*(-"/*0-"&*0-&secondary and tertiary health care systems in the country.

!"&!"#$%E&2%F.($*G&.'&-Y+$*G&$"&$"'(%)*(+,*+(-&@(.F-,*)&$)&,."*($5+*-#&5G&@(.F-,*&#-4-6.@-()E&<$*0&*0-&"-U*C6%(/-)*&,."*($5+*.(&5-$"/&*0-&@+56$,&)-,*.(3&;0-&@($4%*-&)-,*.(&,.").(*$+2&%6."/&<$*0&@+56$,&%/-",G&,."*($5+*-)&-Y+$*G&depending on the terms of contract while debt is sourced from an outside agency.

M,,.(#$"/&*.&j.(6#&S%"BP)&?($4%*-&?%(*$,$@%*$."&$"&!"'(%)*(+,*+(-&#%*%5%)-E&!"#$%&)*%"#)&)-,."#&."6G&*.&H0$"%&$"&*-(2)&.'&"+25-(&.'&???&@(.F-,*)&%"#&$)&)-,."#&*.&S(%^$6&$"&*-(2)&.'&$"4-)*2-"*)3

???&@(.F-,*)&$"&!"#$%&(-Y+$(-&%&2$"$2+2&)0%(-0.6#$"/&,.22$*2-"*&'(.2&)@.").()&.'&@(.F-,*)&%2.+"*$"/&*.&[:W&.'&*0-&-Y+$*G&+@&*.&)-,."#&G-%(&.'&,.22-",-2-"*&.'&.@-(%*$.")3&;0-&-Y+$*G&,%@$*%6&$)&-"*$(-6G&@(.4$#-#&5G&@(.F-,*&)@.").()&.+*&.'&*0-$(&-U$)*$"/&5%6%",-&)0--*)3&;0-(-&$)&%6).&@6%,-2-"*&.'&2$".($*G&-Y+$*G&)*%B-)&<$*0&Q"/$"--($"/&?(.,+(-2-"*&%"#&H.")*(+,*$."&\Q?H]igRX&,."*(%,*.()&5-)$#-)&)*(%*-/$,&$"4-)*.()&<0.&%(-&6$B-6G&*.&5-"-1*&'(.2&*0-&project’s operations.

M&@($4%*-&@6%G-(&$"&%&???&@(.F-,*&,%"&5-&%&@($4%*-&,.2@%"GE&%&,.").(*$+2&.'&@($4%*-&$"*-(-)*)&.(&%&K."&A.4-("2-"*&g(/%"$^%*$."&\KAg]3&?($4%*-&)-,*.(&@6%G)&*0-&(.6-&.'&#-)$/"$"/E&,.")*(+,*$."E&.@-(%*$."&%"#&2%$"*-"%",-&.'&*0-&@(.F-,*3&?($4%*-&@6%G-()&%(-&%6).&(-)@.")$56-&'.(&@(.4$#$"/&-Y+$*G&.'&*0-&???&@(.F-,*3&;0-GE&$"&*+("E&,%"&*%@&*0-&@($2%(G&2%(B-*&*.&(%$)-&,%@$*%6&4$%&%"&!?g&$))+-3&

D.<-4-(E&@($4%*-&#-4-6.@-()&0%4-&6$2$*-#&%2.+"*&.'&,%@$*%6E&*$-#&+@&'.(&6."/&*-(2&$"&$"'(%)*(+,*+(-&@(.F-,*)3&;0-G&(-6G&."&@($4%*-&-Y+$*G&$"4-)*.()&*.&#-,(-%)-&@(.2.*-(P)&($)B3&?($4%*-&-Y+$*G&<$*"-))-#&%(.+"#&Ib:&#-%6)&<.(*0&!KZIdd&5$66$."&$"&*0-&$"'(%)*(+,*+(-&)-,*.(&$"&:D::3

Table: Capital raising of infrastructure companies and PE investments in infrastructureIPO/FPO PE

Number of issues INR billion Number of deals INR billionIJJbCJ[ 4 62 7 4IJJ[CJd 9 46 10 28200607 12 66 40 ::[200708 21 206 77 341200809 3 10 48 1848.+(,-m&=$"%",$"/&!"'(%)*(+,*+(-E&!L=H&8-($-)

;0-&$"4-)*2-"*&$)&,."*($5+*-#&5G&5.*0&#.2-)*$,&%"#&'.(-$/"&@6%G-()3&D.<-4-(E&*0-&#.2-)*$,&@6%G-()&#.2$"%*-&*0-&scenario of PPP projects in India.

Table: Prominent private players in Indian Infrastructure

Domestic players Investment (INR billion)

Number of projects

Major domestic players`%()-"&R&;+(5.&;(%")@.(*%*$."&!"'(%)*(+,*+(-&`*#3& e[ 10Small domestic playersL8&H.")*(+,*$.") 3 48%#50%4&Q"/$"--($"/&`$2$*-# 21 11X8O&?(.F-,*)&\!"#$%]&`$2$*-#& 2 :[;.*%6 d[ 40

Source: Shodhganga


3.1 Highways&Z.%#&)-,*.(&\bJ[&@(.F-,*)&4%6+-#&%*&!KZ:EVdV&5$66$."]&%,,.+"*)&'.(&[eW&.'&*0-&*.*%6&"+25-(&%"#&bdW&.'&*0-&*.*%6&4%6+-&.'&???&@(.F-,*)&$"&!"#$%b[3&;0-&(.%#&"-*<.(B&$"&!"#$%&,.2@($)-)&"%*$."%6&0$/0<%G)&\d[E[dc&B2]E&)*%*-&0$/0<%G)&\:EeJEJJJ&B2]&%"#&#$)*($,*i(+(%6i+(5%"&(.%#&\e:EbJEJJJ&B2]463&;0-&,."*(%,*)&0%4-&@($2%($6G&5--"&%<%(#-#&5G&,.2@-*$*$4-&5$##$"/&%"#&%(-&6%(/-6G&$"&*0-&Sg;&'.(2%*&\*.66&.(&%""+$*G&5%)$)]3

Common forms of PPP in national highways

PPP format Projects Value (in INR billion)

Sg;&_&*.66 48 93.3

Sg;&_&%""+$*G 8 Ie3[

8@-,$%6&?+(@.)-&n-0$,6-&?(.F-,*) 24 46.8

8.+(,-m&X$"$)*(G&.'&Z.%#&;(%")@.(*&R&D$/0<%G)

o& National highways:&8$/"$1,%"*&@(./(-))&0%)&5--"&2%#-&$"&*0-&1"%",$"/&.'&%25$*$.+)&K%*$."%6&D$/0<%G&L-4-6.@2-"*&?(./(%2&\KDL?]&,.4-($"/&%&*.*%6&6-"/*0&.'&b[EcVb&B2&%"#&$"4-)*2-"*&.'&!KZIEIJJ&5$66$."&+@&*.&2012.

Status of State Highways

Project status No. of projects

Completed projects 73

Projects under implementation 62

Projects in the bid process 41

Projects where feasibility study has commenced 44

Projects in pipeline for 201112 38

;.*%6 I[h

8.+(,-m&H.2@-"#$+2&.'&???&@(.F-,*)&$"&)*%*-&0$/0<%G)E&Infrastructure website

o& State highways: j$*0&)$/"$1,%"*&@(./(-))&5-$"/&2%#-&5G&*0-&KDL?&\$"&,%)-&.'&"%*$."%6&0$/0<%G)]&$"&<0$,0&%@@(.U$2%*-6G&h[W&.'&@(.F-,*)&%(-&@(.@.)-#&*.&5-&+"#-(&*0-&???&2.#-E&/(.<*0&2.#-6&'.(&)*%*-&0$/0<%G)&%6).&0.6#)&@.*-"*$%63&;0-&)*%*-&/.4-("2-"*)&.'&M"#0(%&?(%#-)0E&A+F%(%*E&O%("%*%B%E&X%0%(%)0*(%E&Z%F%)*0%"&%"#&X%#0G%&?(%#-)0&%(-&*%B$"/&$"$*$%*$4-)&*.&@(.2.*-&???C5%)-#&)*%*-&0$/0<%G)3&

b[ PPP India database as of 31 July 2011 46& X$"$)*(G&.'&Z.%#&;(%")@.(*&R&D$/0<%G)

3.Key industries/sectors for PPP

8-4-(%6&/.4-("2-"*&$"$*$%*$4-)&*.&-"0%",-&@($4%*-&)-,*.(&@%(*$,$@%*$."& \$",6+#$"/&???]&$"&(.%#)&)-,*.(m

o& n$%5$6$*G&A%@&=+"#$"/&$"&*0-&'.(2&.'&,%@$*%6&/(%"*)&)+5)$#G&.'&+@&*.&bJW&.'&@(.F-,*&,.)*&

o& :JJW&*%U&-U-2@*$."&$"&%"G&,.")-,+*$4-&:J&G-%()&.+*&.'&IJ&G-%()

o& L+*GC'(--&$2@.(*&.'&,-(*%$"&$#-"*$1-#&0$/0&Y+%6$*G&,.")*(+,*$."&@6%"*)&%"#&-Y+$@2-"*

o& M66.<$"/&=L!&+@&*.&:JJW&$"&*0-&)-,*.(&%"#&(-6%U-#&QHS&".(2)

o& `."/&,.",-))$."&@-($.#&.'&+@&*.&eJ&G-%()

o& Right to collect and retain toll

o& Model concession agreements for state highways

o& Standardizing of model bidding documents


Investment requirements:&;0-&"%*$."%6&0$/0<%G)&,.")*$*+*-&F+)*&IW&.'&*0-&-"*$(-&(.%#&"-*<.(B&5+*&,%((G&%@@(.U$2%*-6G&bJW&.'&*.*%6&(.%#&*(%'1,&$"#$,%*$"/&-U$)*-",-&.'&)$/"$1,%"*&@.*-"*$%6&*.&5-&+"6-%)0-#3&;0-&$"4-)*2-"*)&<.(*0&!KZbEcJI&5$66$."&0%4-&5--"&@6%""-#&%)&%&@%(*&.'&*0-&;<-6'*0&=>?&\,.2@%(-#&*.&!KZIEVhd&5$66$."&'.(&*0-&Q6-4-"*0&=>?]3&;0-&,."*($5+*$."&.'&@($4%*-&)-,*.(&$)&6$B-6G&*.&(%"/-&'(.2&!KZ:EddV&5$66$."&*.&!KZIEb[:&5$66$."&#+($"/&*0-&;<-6'*0&=>?&\5%)-#&."&%"&-)*$2%*-#&ebW&.'&@($4%*-&)@-"#$"/&$"&*0-&Q6-4-"*0&=>?&%"#&-"4$)%/-#&[JW&@($4%*-&)@-"#$"/&$"&*0-&;<-6'*0&=>?]3

3.2 Railways ;0-&(%$6<%G)&)-,*.(&F+)*&-U@-($-",-#&b&???&,."*(%,*)&4%6+-#&%*&!KZ:[3V&5$66$."473&;0-&@(.F-,*)&0%4-&5--"&,."*(%,*-#&-$*0-(&5G&#.2-)*$,&,.2@-*$*$4-&5$##$"/&.(&*0(.+/0&"-/.*$%*-#&Xg7)3&L+-&*.&*0-&6%(/-&)$^-&.'&*0-&@(.F-,*)E&*0-&???&@(.F-,*)&$"&(%$6<%G)&0%4-&*.&5-&)+@@6-2-"*%(G&.(&%"&-U*-")$."&*.&%"&-U$)*$"/&6%(/-&(%$6<%G&"-*<.(B3

;0-&(-,-"*&???&#%*%48&$"#$,%*-)&%(.+"#&"$"-&@(.F-,*)&5-$"/&,."*(%,*-#&).&'%(&$"&A+F%(%*&\b]E&g($))%&\I]E& D%(G%"%&\:]E&M"#0(%&?(%#-)0&\:]&%"#&O%("%*%B%&\:]3&;0-&"$"-&@(.F-,*)&0%4-&Sg;&\.(&$*)&4%($%"*)]&'.(2%*& \$",6+#$"/&."-&."&LS=g;]&???&%)&*0-&@(-'-((-#&Sg;&2.#-63&;0-&!KZc&5$66$."&2-*(.&6$"B)&'(.2&L-60$&X-*(.&a& '(.2&8$B%"#-(@+(&*.&KD&hE&A+(/%."&0%)&*0-&0$/0-)*&4%6+-&.'&???&(%$6<%G&,."*(%,*&).&'%(3&

;0-&???&-U@-($-",-&$"&*0-&(%$6<%G)&)-,*.(&0%)&@(.4-"&*.&5-&%&2$U-#&5%/&).&'%(3&!"&@(.F-,*)&<$*0&,6-%(&,+*&#-2%(,%*$."&.'&(-)@.")$5$6$*$-)E&*0-&2.#-6&0%)&@(.4-"&)+,,-))'+6&)+,0&%)&$"&*0-&,%)-&.'&6%)*&2$6-&@.(*C,.""-,*$4$*G&\=.(&$")*%",-E&6%)*&2$6-&,.""-,*$4$*G&*.&X+"#(%&@.(*&<$*0&?%6%"@+(CA%"#0$#0%2&(%$6<%G&6$"-z&%"#&(%$6&6$"B&'(.2&S0%#(%B&*.&"-<&@.(*&%*&L0%2(%&$"&g($))%]3&g"&*0-&.*0-(&0%"#E&*0-&(%$6<%G)&0%)&5--"&'%,$"/&@(.56-2)&$"&+)$"/&*0-&???&(.+*-&'.(&2%"+'%,*+($"/&(.66$"/&)*.,B&%"#&6.,.2.*$4-)&\*<.&2-/%&(%$6<%G&@(.F-,*)&a&2%"+'%,*+(-&.'&Q6-,*($,&6.,.2.*$4-)&%*&X%#0-@+(%&%"#&L$-)-6&`.,.2.*$4-)&%*&X%(0.(<%&0%4-&5--"&."&0.6#]3

Investment requirements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

47& ???&!"#$%&L%*%5%)-&%)&."&e:&f+6G&IJ::48& k???&#%*%El&???&$"&!"#$%&L%*%5%)-E&%,,-))-#&c&L-,-25-(&IJ::49& k!"&*(%,B&,0%"/-E&Z6G&-G-)&Z[JB&,(&@4*&$"4-)*2-"*El&The Financial Express websiteE&0**@mii<<<31"%",$%6-U@(-))3,.2i"-<)i

!"C*(%,BC,0%"/-CCZ6GC-G-)CZ[JBC,(C@4*C$"4-)*2-"*ihbJhdJi&%,,-))-#&:c&L-,-25-(&IJ::

8.2-&.'&*0-&???&@(.F-,*&$"$*$%*$4-)&+"#-(*%B-"&5G&*0-&(%$6<%G)&)-,*.(&$",6+#-m

o& Container Corporation of India Limited (CONCOR)&a&'.(&#-4-6.@$"/&2+6*$&2.#%6&*(%")@.(*&6./$)*$,)&$"'(%)*(+,*+(-&*.&)+@@.(*&#.2-)*$,&,."*%$"-(&*(%'1,

o& Pipavav Railway Corporation Ltd. (PRCL) a&*.&@(.4$#-&5(.%#&/%+/-&(%$6&6$"B&*.&?.(*&.'&?$@%4%4&$"&A+F%(%*

o& Rail Vikas Nigam Limited (RVNL)&a&'.(&?.(*&,.""-,*$4$*G&<.(B)&%"#&$2@(.4-2-"*&.'&*0-&A.6#-"&y+%#($6%*-(%6&*.&2--*&'+*+(-&*(%")@.(*%*$."&"--#)


;0-&@(.F-,*)&@(.@.)-#&'.(&???&'.(2%*&include:

o& D$/0&)@--#&(%$6&,.(($#.(

o& L-#$,%*-#&'(-$/0*&,.(($#.(&

o& `.,.2.*$4-&%"#&,.%,0&'%,*.($-)&

o& X+6*$C2.#%6&`./$)*$,)&0+5)

3.3 Power;0-&A.!&0%)&*%B-"&)-4-(%6&$"$*$%*$4-)&.4-(&*0-&6%)*&'-<&G-%()&*.&@(.2.*-&@%(*$,$@%*$."&'(.2&@($4%*-&@6%G-()&$"&*0-&@.<-(&)-,*.(3&j$*0&%&*.*%6&.'&[d&@(.F-,*)&4%6+-#&%*&!KZdVI&5$66$."E&*0-&-"-(/G&)-,*.(&%,,.+"*)&'.(&:hW&.'&*0-&.4-(%66&4%6+-&.'&???&,."*(%,*)&%<%(#-#&$"&4%($.+)&)-,*.()3[J

o& Power generation51:&?.<-(&/-"-(%*$."&$"&!"#$%&*%B-)&@6%,-&@($2%($6G&%*&*0-&)*%*-&6-4-6&\bdW]&%"#&H-"*(%6&6-4-6&\e:W]E&<$*0&@($4%*-&)-,*.(&%,,.+"*$"/&'.(&*0-&(-)*3&?%(*$,$@%*$."&.'&@($4%*-&@6%G-()&$"&*0-&@.<-(&)-,*.(&$)&,-"*-(-#&."&*0-(2%6&@.<-(&/-"-(%*$."E&6%(/-6G&$2@6-2-"*-#&*0(.+/0&*0-&Sgg&%"#&Sgg;&2.#-6)3& !"*(.#+,-#&$"&IJJ[E&"$"-&76*(%&X-/%&?.<-(&?(.F-,*)&\7X??)]&%(-&-U@-,*-#&*.&(.@-&$"&%"&$"4-)*2-"*&.'&%(.+"#&789e[_bJ&5$66$."&'(.2&*0-&@($4%*-&)-,*.(3&;.&$",(-%)-&$"4-)*.(&,."1#-",-E&7X??)&%(-&%<%(#-#&*0(.+/0&,.2@-*$*$4-&*%($''C5%)-#&5$##$"/E&%"#&%(-&5-$"/&#-4-6.@-#&."&%&Sgg&5%)$)3&

o& Power transmission:&8$",-&f%"+%(G&IJ::E&*(%")2$))$."&@(.F-,*)&0%4-&%6).&5--"&%<%(#-#&*0(.+/0&,.2@-*$*$4-&5$##$"/&+"#-(&*0-&Sgg&2.#-63&=.(&$")*%",-E&8*-(6$*-&0%)&%6(-%#G&5--"&%<%(#-#&*0(--&@(.F-,*)&\%2.+"*$"/&*.&789bJ&2$66$."]&'.(&5+$6#$"/&@.<-(&*(%")2$))$."&)G)*-2)&."&%&S+$6#Cg<"Cg@-(%*-CX%$"*%$"&\kSggXl]&5%)$)3&

Opportunities in the power sector[I

o& ;0-&#-2%"#C)+@@6G&/%@&0%)&5--"&<$#-"$"/&%*&%"&%6%(2$"/&@%,-E&@($2%($6G&6-#&5G&(%@$#&/(.<*0&$"&@.@+6%*$."&%"#&2%"+'%,*+($"/&%,*$4$*$-)3&;0-&,.+"*(G&$)&-U@-,*-#&%&@.<-(&#-1,$*&.'&%(.+"#&:JW&#+($"/&IJ::_:I&%"#&5G&IJeJE&*0-&*.*%6&#-2%"#&'.(&-6-,*($,$*G&$"&!"#$%&$)&-U@-,*-#&*.&,(.))&c[JAj3

o& ;0-&?6%""$"/&H.22$))$."&@(.F-,*-#&%"&$"4-)*2-"*&.'&789:V:&5$66$."&$"&*0-&@.<-(&)-,*.(&#+($"/&*0-&@-($.#&IJ:I_:VE&.+*&.'&<0$,0&*0-&@($4%*-&)-,*.(&$)&-U@-,*-#&*.&,."*($5+*-&%(.+"#&789dJ&5$66$."3&H+((-"*6GE&:JJW&=L!&$)&@-(2$**-#&'.(&/-"-(%*$."E&*(%")2$))$."&%"#&#$)*($5+*$."&*0(.+/0&*0-&%+*.2%*$,&(.+*-3&

[J& k???&?(.F-,*&8*%*+)&Z-@.(*El&?+56$,&?($4%*-&?%(*"-()0$@)&!"#$%&#%*%5%)-E&e:&f+6G&IJ::[:& k?.)$*$."&@%@-(&."&*0-&@.<-(&)-,*.(&$"&!"#$%El&L-@%(*2-"*&.'&Q,.".2$,&M''%$()E&X.=&\!"#$%]E&L-,-25-(&IJJc[I& k!"#$%&@6%")&:d&76*(%&X-/%&?.<-(&?(.F-,*)&*.&-"0%",-&@.<-(&/-"-(%*$."El&Industrial fuels and power websiteE&0**@mii<<<3

ifandp.com/article/0010818.html

“This time around, we will indeed make a difference when it comes to PPP projects. Railways doesn’t have enough resources on its own and the government can’t keep funding our plans for ever. So, PPP is the only way forward,”

L$"-)0&;($4-#$ D."P56-&Z%$6<%G&X$"$)*-(&.'&!"#$%&

Source: Financial Express &\0**@mii<<<31"%",$%6-U@(-))3,.2i"-<)i$"C*(%,BC

,0%"/-C(6GC-G-)C([JBC,(C@4*C$"4-)*2-"*ihbJhdJiJ]

?.6$,G&$"$*$%*$4-)&%"#&$",-"*$4-)&*.&-",.+(%/-&@($4%*-&@%(*$,$@%*$."m

o& Increasing foreign participation up to 100% under the automatic route

o& K-<&@.6$,G&'(%2-<.(B&*0%*&$",6+#-)m&Q6-,*($,$*G&M,*E&IJJeE&K%*$."%6&Q6-,*($,$*G&?.6$,G&IJJdE&;%($''&?.6$,G&IJJdE&Z+(%6&Q6-,*($1,%*$."&?.6$,G&IJJdE&K-<&DG#(.&@.6$,G&IJJh&%"#&2-/%&@.<-(&@(.F-,*)&IJJh

o& Introduction of open access to transmission lines and distribution systems by licensees or consumers or generators

o& !"*(.#+,*$."&.'&,.2@-*$*$."i7X??)


o& Z-"-<%56-&-"-(/G&0.6#)&)$/"$1,%"*&.@@.(*+"$*$-)&$"&/-"-(%*$."&%)&<-66&%)&2%"+'%,*+($"/&%,*$4$*$-)E&6%(/-6G&#+-&*.&+"#-(+*$6$^-#&(-).+(,-)&%"#&6%,B&.'&@.6$*$,%6&<$663&;0-&A.!&0%)&%"&%25$*$.+)&k?.<-(&'.(&M66l&@6%"E&<0$,0&%$2)&'.(&,.2@6-*-&-6-,*($1,%*$."&5G&*0-&-"#&.'&IJ:I3&;.&$2@6-2-"*&*0$)&$"$*$%*$4-E&)$/"$1,%"*&@%(*$,$@%*$."&'(.2&*0-&@($4%*-&)-,*.(&$)&(-Y+$(-#3&;0-&.@*$."&.'&???&$"&"+,6-%(&@.<-(&/-"-(%*$."&$)&%6).&5-$"/&-U@6.(-#E&*0.+/0&=L!&$"&*0-&sector is not permitted yet.

3.4 Urban infrastructure;0-&+(5%"&$"'(%)*(+,*+(-&)-,*.(&<$*"-))-#&%&(-6%*$4-6G&)$/"$1,%"*&"+25-(&.'&???&,."*(%,*)&\:[I]&4%6+-#&%*&!KZIcb&billion[e&%6*0.+/0&$*&%,,.+"*)&'.(&."6G&hW&.'&*.*%6&4%6+-&.'&,."*(%,*)&$"#$,%*$"/&%&6%(/-&"+25-(&.'&???&@(.F-,*)&<$*0&)2%66&,."*(%,*&4%6+-3

;0-&A.!&(-,./"$^-)&*0-&$2@.(*%",-&.'&+(5%"&$"'(%)*(+,*+(-&$"&*0-&,0%"/$"/&#G"%2$,)&.'&!"#$%"&@.@+6%*$."&%)&$*&$)&expected that urban population will reach 600 million by 2031[b3&;0-&A.!&6%+",0-#&*0-&f%<%0%(6%6&K-0(+&K%*$."%6&7(5%"&Z-"-<%6&X$))$."&\fKK7ZX]&*.&-)*%56$)0&%&'(%2-<.(B&%"#&@(.4$#-&$",-"*$4-)&*.&@(.2.*-&???&*.&)*%*-)&%"#&+(5%"&6.,%6&/.4-("2-"*)3

D.<-4-(E&*0-&)-,*.(&)*$66&<$*"-))-)&.5)*%,6-)&*.&%**(%,*&@($4%*-&$"4-)*2-"*&%)&*0-(-&$)&6%,B&.'&%#-Y+%*-&6-/%6&'(%2-<.(B&%*&*0-&)*%*-&%"#&,$*G&6-4-6&%"#&$")*$*+*$.")&%"#&B-G&)*%B-0.6#-()&#.&".*&0%4-&*0-&,%@%,$*G&%"#&B".<6-#/-&to carry out project on PPP basis.

[e& &M)&@-(&???&$"&!"#$%&#%*%5%)-&\%)&."&e:&f+6GE&IJ::][b& kZ-@.(*&."&!"#$%"&7(5%"&!"'(%)*(+,*+(-&%"#&8-(4$,-)El&;0-&D$/0&?.<-(-#&QU@-(*&H.22$**--&\D?QH]&'.(&Q)*$2%*$"/&*0-&

!"4-)*2-"*&Z-Y+$(-2-"*)&'.(&7(5%"&!"'(%)*(+,*+(-&8-(4$,-)E&X%(,0&IJ::E&@%/-&xx!

“The scope for investment in the power sector over the next few years is well over $300 billion and given our large expansion programme in this sector, we would @.02)#.&3$2..@$%2@$<.&1(*.$%$large amount of foreign direct investment.”

Sushil Kumar Shinde D."P56-&7"$."&?.<-(&X$"$)*-(

8.+(,-m&!=MKL?&\#%*-#&M@($6E&IJ::] \0**@mii<<<3$'%"#@3,.2i%(*$,6-iJJ:Jh:h30*26]

?(.2$"-"*&???&@(.F-,*&$"$*$%*$4-)&$"&+(5%"&$"'(%)*(+,*+(-m

o& 24 X 7 water supply project for Nagpur city&a&*.&@(.4$#-&+"$"*-((+@*-#&<%*-(&)+@@6G&*.&,.")+2-()z&2.#-6&slated to be emulated in many other cities

o& Water supply and sewerage project in Kolkata&a&*.&#-4-6.@&<%*-(&)+@@6GC,+2C)-<-(%/-&'.(&*0-&*.<")0$@&.'&8-,*.(Cn&.'&8%6*&`%B-

o& Integrated solid waste management project in Chennai&a&*.&2--*&*0-&(-Y+$(-2-"*)&.'&).6$#&<%)*-&management

o& City bus service of Surat&a&*.&,%*-(&*.&*0-&"--#&'.(&@+56$,&*(%")@.(*&)G)*-2&'.(&*0-&,."/-)*-#&,$*G&.'&8+(%*


g"-&.'&*0-&2.)*&,($*$,%6&$))+-&$"&+(5%"$^%*$."&$)&-'1,$-"*&*(%")@.(*&)G)*-2&%"#&%&(-,-"*&)*+#G&)0.<)&*0%*&2-*(.&(%$6&%")<-()&*0-&*(%")$*&"--#)&.'&+(5%"&%(-%)&2.)*&-''-,*$4-6G&%"#&0%)&*0-&@.*-"*$%6&*.&5($"/&%66&(.+"#&5-"-1*)&*.&5+)$"-))E&*.&-"4$(."2-"*&%"#&2+6*$@6-&5-"-1*)&*.&@-.@6-&$"&%66&<%6B)&.'&6$'-[[.

M&"-<&2-*(.&@(.F-,*&$)&5-$"/&*%B-"&+@&$"&DG#-(%5%#&'.(&V:3:d&B23E&%*&%"&-)*$2%*-#&,.)*&.'&!KZ:Ie3eI&5$66$."E&5-)$#-)&*0-&."/.$"/&2-*(.&@(.F-,*)&.'&S%"/%6.(-E&H0-""%$E&O.6B%*%&\Q%)*Cj-)*&X-*(.&,.(($#.(]&%"#&X+25%$3&M6).E&2-*(.&(%$6&@(.F-,*)&0%4-&(-,-$4-#&$"&@($",$@6-&%@@(.4%6&'.(f%$@+(E?%*"%E&?+"-E&O.,0$&%"#&`+,B".<3

;0-&H-"*(%6&%"#&)*%*-&/.4-("2-"*)&<$66&(-Y+$(-&'+"#)&*.&'+6166&*0-&#-2%"#&'.(&+(5%"&$"'(%)*(+,*+(-3&;0-&#-1,$*&,%"&."6G&5-&2-*&*0(.+/0&$"4.64$"/&@($4%*-&@6%G-()&$"&*0-&)-,*.(3&

X$"$)*(G&.'&7(5%"&L-4-6.@2-"*P)&)*(%*-/$,&@6%"&)*%*-)&*0%*&???&,%"&@6%G&%&@(.2$"-"*&(.6-&$"&*0-&1-6#)&.'&).6$#&<%)*-&2%"%/-2-"*&'+",*$.")&)+,0&%)&#..(C*.C#..(&,.66-,*$."E&)*(--*&)<--@$"/E&*(%")@.(*%*$."&%"#&*(-%*2-"*z&-C/.4-(-"%",-&%"#&)*(-"/0*-"$"/&.'&+(5%"&6.,%6&5.#$-)&\7`S)]3

;0-&2$"$)*(G&%6).&-"4$)$.")&)-**$"/&+@&.'&%&???&+(5%"&infrastructure fund to encourage PPP to supplement /.4-("2-"*&-''.(*)3

8.+(,-m&kZ-@.(*&."&!"#$%"&7(5%"&!"'(%)*(+,*+(-&%"#&8-(4$,-)El&;0-&D$/0&?.<-(-#&QU@-(*&H.22$**--&\D?QH]&'.(&Q)*$2%*$"/&*0-&

!"4-)*2-"*&Z-Y+$(-2-"*)&'.(&7(5%"&!"'(%)*(+,*+(-&8-(4$,-)E&X%(,0&IJ::E&@%/-&xxn

[[& 8*+#G&."&7(5%"$^$"/&!"#$%&R&X-/%&X-*(.&K-*<.(B&n$)$."&'.(&*0-&Q2-(/$"/&H$*$-)&.'&!"#$%CIJeJ&k0**@mii<<<3%)).,0%23.(/i%(5i/-"-(%6iX-*(.&8*+#Gs7@#%*-3@#'

Urban infrastructure investment requirement: INR39,186 billion (201231)

44%

11%10%

8%

6%

5%

3%

3%1%

8%Urban roadsUrban transportRenewal and redevelopment including slumsWater supplySewerageStorm water drainsCapacity buildingTraf1c support infrastructureSolid waste managementOther sectors

“Government will encourage PPP model for developing infrastructure like water supply and municipal solid waste management in the cities across the country”

O%2%6&K%*0& D."P56-&7(5%"&L-4-6.@2-"*&X$"$)*-(&.'&!"#$%&

8.+(,-m&;0-&D$"#+ \0**@mii%(*$,6-)3-,.".2$,*$2-)3$"#$%*$2-)3,.2iIJ::C:ICIJi"-<)ieJ[ehJbIs:s@@@C2.#-6C).6$#C<%)*-C

2%"%/-2-"*C+(5%"C6.,%6C5.#$-)]


4.1 Policy recommendationso& An independent institutional structure for handling of PPP program: j$*0&*0-&-U@(-))&.5F-,*$4-&.'&2--*$"/&

*0-&???&*%(/-*)E&%"&$"#-@-"#-"*&$")*$*+*$."&)0.+6#&5-&)-*&+@&*.&%,*&%)&".#%6&%/-",G&<$*0&*0-&(-)@.")$5$6$*G&.'&,(-%*$."&.'&???&#%*%&5%)-E&5-)*&@(%,*$,-)E&2.#-6&#.,+2-"*)&'.(&%66&)-,*.()&%"#&,..(#$"%*$."&<$*0&%66&departments.

o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

o& Dissemination of information on PPPs:&;0-(-&-U$)*)&%&"--#&'.(&*0-&,(-%*$."&.'&)@-,$1,&$"'.(2%*$."&@.6$,G&'.(&???)&<0-(-$"&%66&5$#&#.,+2-"*)E&'-%)$5$6$*G&(-@.(*)&%"#&,+((-"*&)*%*+)&.'&*0-&@(.F-,*)&%(-&@+56$)0-#&."&%&#-#$,%*-#&,."*(%,*&@.(*%63&;0-&$"*-("%*$."%6&@.6$,G&2.#-6)&)+,0&%)&?%(*"-()0$@)&n$,*.($%&\M+)*(%6$%]&,%"&5-&referred to in this case.

4.2 Project development recommendationso& Capacity building measures for the government: ;0-(-&$)&%&"--#&'.(&,%@%,$*G&5+$6#$"/&%*&*0-&H-"*(-&%"#&

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

o& Role of consultants:&=.(&#-4-6.@2-"*&.'&???&@(.F-,*&*0-&(.6-&.'&*-,0"$,%6&%"#&*(%")%,*$."&%#4$).()&$)&2.)*&,($*$,%63&D-",-E&$*&$)&$2@-(%*$4-&*0-&+*2.)*&,%(-&$)&*%B-"&$"&%@@.$"*2-"*&.'&,.")+6*%"*)3&A-"-(%66G&*0-&,.")+6*%"*&'--&$)&%&)2%66&@(.@.(*$."&.'&*0-&@(.F-,*&,.)*&%"#&*0-&4%6+-&%##$*$."&5G&%&/..#&,.")+6*%"*&,.+6#&5-&2+,0&0$/0-(3&=.(&*0-&)+,,-))&.'&*0-&@(.F-,*E&,.")+6*%"*P)&Y+%6$*G&$)&2.(-&,($*$,%6&%)&,.2@%(-#&*.&*0-&,.)*&$2@6$,%*$.")3&D-",-E&*0-&@(-'-((-#&2.#-6&'.(&)-6-,*$."&.'&*0-&,.")+6*%"*&)0.+6#&5-&-$*0-(&kY+%6$*G&5%)-#l&.(&kY+%6$*GC,+2C,.)*&5%)-#l&<$*0&0$/0-(&<-$/0*%/-&*.&Y+%6$*G3&

4.Recommendations

Policy recommendations Project development recommendations

Financing recommendations

o& Setting up independent institutional structure for handling PPP program

o& L-4-6.@2-"*&.'&)-,*.(C)@-,$1,&regulatory mechanism

o& L$))-2$"%*$."&.'&!"'.(2%*$."&on PPPs

o& Capacity building measures for *0-&A.4-("2-"*

o& Role of consultants

o& ?(.F-,*&#-4-6.@2-"*&%,*$4$*$-)

o& g@*$2%6&%66.,%*$."&.'&($)B)E&authority and accountability

o& 8-6-,*$."&.'&@($4%*-&)-,*.(&partner

o& L-4-6.@$"/&,.(@.(%*-&5."#&2%(B-*

o& Encouraging participation by pension funds and insurance companies

o& 8*$2+6%*$"/&?Q&$"4-)*2-"*)&$"&infrastructure sector

o& D-#/$"/&2-,0%"$)2&'.(&external borrowings and $"4-)*2-"*)


o& Project development activities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

o& Optimal allocation of risks, authority and accountability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

o& Selection of private sector partner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also be used.

4.3 Financing recommendationso& Developing corporate bond market: ;0-(-&$)&%"&$22-#$%*-&"--#&*.&#-4-6.@&*0-&,.(@.(%*-&5."#&2%(B-*3&

;0-&@(.@.)%6&*.&)-*&+@&!"'(%)*(+,*+(-&L-5*&=+"#)&\!L=)]&$)&%&)*-@&$"&*0-&($/0*&#$(-,*$."3&=+(*0-(E&$"&.(#-(&*.&F+2@)*%(*&*0-&,.(@.(%*-&5."#&2%(B-*&$"&$"'(%)*(+,*+(-&@(.F-,*)E&*0-&6%(/-&!"#$%"&,.22-(,$%6&5%"B)&<0$6-&'+"#$"/&*0-&@(.F-,*&,%"&,.2@+6).($6G&'+"#&).2-&@%(*&.'&#-5*&5G&)+5),($5$"/&*.&5."#)3&;0-)-&5."#)&,%"&5-&6$)*-#&."&-U,0%"/-)3&;0-&6%(/-&,.22-(,$%6&5%"B)&%"#&KS=H)&,%"&%6).&@6%G&*0-&2%(B-*&2%B-()&$"&$"'(%)*(+,*+(-&5."#)&'.(&initial years.

o& Encouraging participation by pension funds and insurance companies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

o& Stimulating PE investments in infrastructure sector:&A6.5%6&%"#&#.2-)*$,&@($4%*-&-Y+$*G&'+"#)&0%4-&*0-&,%@%5$6$*G&*.&@(.4$#-&1"%",-&'.(&$"'(%)*(+,*+(-&/(.<*0&$"&!"#$%3&;.&%**(%,*&?Q&'+"#)&'.(&5$##$"/&$"&$"'(%)*(+,*+(-&@(.F-,*)E&*0-&-6$/$5$6$*G&,($*-($%&)0.+6#&5-&)+$*%56G&%2-"#-#E&%"#&%@%(*&'(.2&*0-&1"%",$%6&"-*<.(*0E&*0-&l=+"#)&+"#-(&X%"%/-2-"*l&'.(&?Q&%"#&n-"*+(-&H%@$*%6&'+"#)&)0.+6#&%6).&5-&$",6+#-#3&

o& Hedging mechanism for external borrowings and investments:&;0-&!"#$%"&,.2@%"$-)&0%4-&5--"&(%$)$"/&-U*-("%6&,.22-(,$%6&5.((.<$"/)&'.(&$"'(%)*(+,*+(-&@(.F-,*)3&!L=)&%6).&%$2&*.&*%@&$"*-("%*$."%6&$")+(%",-&%"#&@-")$."&'+"#)&'.(&$"4-)*2-"*&$"&$"'(%)*(+,*+(-&$"&!"#$%3&;0-&0-#/$"/&.'&'.(-$/"&,+((-",G&-U@.)+(-&-%*)&+@&%&6%(/-&@%(*&.'&$"*-(-)*&(%*-&%(5$*(%/-&*0(.+/0&'.(-$/"&'+"#$"/3&;0-&A.!&,%"&+)-&%&@%(*&.'&$*)&'.(-$/"&,+((-",G&(-)-(4-)&*.&/$4-&%&6-))&-U@-")$4-&,+((-",G&0-#/$"/&2-,0%"$)2&'.(&'.(-$/"&,+((-",G&5.((.<$"/)&%"#&$"4-)*2-"*)&in the infrastructure space.


Notes


Abdul SalamL-@+*G&L$(-,*.(FICCI!"#+)*(GP)&n.$,-&'.(&?.6$,G&H0%"/-=-#-(%*$."&D.+)-E&;%")-"&X%(/E&K-<&L-60$&::J&JJ:Q2%$6m&%5#+6u1,,$3,.2&&&;-6m&& w&c:C::CIeVd&[JhI=%Um&& w&c:C::CIeeI&JVedX.5$6-m&w&c:Ccc&cch&hb&JJVj-5m&& <<<31,,$3,.2

FICCI contact

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About Federation of Indian Chambers of Commerce and Industry (FICCI)

Q)*%56$)0-#&$"&:cIVE&=!HH!&$)&*0-&6%(/-)*&%"#&.6#-)*&apex business organisation in India. Its history is closely $"*-(<.4-"&<$*0&!"#$%P)&)*(+//6-&'.(&$"#-@-"#-",-&%"#&$*)&)+5)-Y+-"*&-2-(/-",-&%)&."-&.'&*0-&2.)*&rapidly growing economies globally. FICCI plays a leading role in policy debates that are at the forefront .'&).,$%6E&-,.".2$,&%"#&@.6$*$,%6&,0%"/-3&;0(.+/0&$*)&bJJ&@(.'-))$."%6)E&=!HH!&$)&%,*$4-&$"&[e&)-,*.()&.'&*0-&economy. FICCI’s stand on policy issues is sought out by *0$"B&*%"B)E&/.4-("2-"*)&%"#&%,%#-2$%3&!*)&@+56$,%*$.")&are widely read for their indepth research and policy @(-),($@*$.")3&=!HH!&0%)&F.$"*&5+)$"-))&,.+",$6)&<$*0&V[&countries around the world.

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Accelerating PPP in India

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