Lecture 6:

Organizations and Players Involved

By: Dr. K. Monu
Assistant Professor, Civil Engineering Department
TIET, Patiala

1
Infrastructure Players
üPlays a vital role in the infrastructure sector.
üAll the Infrastructure players should be inter related
and co – ordinated for the better functioning of the
players in this sector.
üVarious Infrastructure players having vital role in
Infrastructure sector are:
• Government departments
• Government Agencies
• EPC Contractors
• Financiers
• Communities affecting the performance of the project
• NGOs
• Project sponsors
• Banks
• Equity Investors Invest money in exchange of shares
• Insurance providers
• Guarantee providers
• Regulators TRAI, AERA (Airports Economic Regulatory Authority
of India, CERC/SERC (Central Electricity Regulatory
Commision)
Government Departments
ØGovernment departments plays a vital role in the infrastructure
projects.
ØThe government department consist of departments in three levels;
ØCentral Government – Policies, reforms and schemes made by the
government in this sector. Various Ministries are set up at the government
level for the better functioning of these projects.
ØState Government – Policies and reforms along with the schemes by the
central government and state government and funding from the central
government and external sources and taxes for the better functioning of
these projects.
ØLocal Bodies at rural level for the development of the rural areas in terms of
the infrastructure facilities.
Government Agencies
ØThe government agencies at three levels also plays a vital
role in infrastructure projects.
üCentral Level – NHAI (National Highway Authority of India), etc.
üState Level – State Government and agencies, Municipalities, etc.
üLocal Bodies – Panchayati Raj, etc.
Various agreements involved in the
Infrastructure projects
üEPC (Engineering Procurement Construction) contracts
üConcession agreements
üPower purchase agreements
üAnnuity agreements with private sponsors
üLoan and equity agreements with financiers
 EPC Contractors
ØEPC stands for Engineering Procurement Construction
ØEPC contract means the contractor to which the contract in tendered, is
involved in which engineering of the project i.e. designing and planning of the
project, procurement of the project i.e. procurement of all the material,
equipment and machines involved in the project and construction of the
project.
ØThis contract is contracted by the government agencies or by the private
organizations to the contractors or firms.
ØThey take the charge of all the aspects, like engineering, designing, planning
and construction.
ØThey also take care of the completion of the project in time with the
construction delays and over – run cost.
 Financiers
ØBasically the financial help providers to the contractor, company
or firm for the infrastructure projects.
ØThe financiers provides finance in terms of grants, loans, debts,
investments, other charges, etc.
ØGrants for infrastructure projects, is provided by various
schemes of the MNREGA, MSME, JNNURRM, etc.
ØLoans is being provided by the banks, World Bank, etc.
ØInvestments are provided by Foreign Investment policies,
schemes, Indian policies, schemes and agencies, etc.
Communities
ØDevelopment of Infrastructure projects can cause benefits to the
communities nearby in the positive and negative sense.
ØExamples: Improving the sanitation facilities of the rural areas,
cause the positive impact to the society. Building of roads and
highways cause cutting of tress which in turn have negative impact
on the society.
ØThe infrastructure projects should be in such a way that they have
positive impact on the society and the development should be
sustainable.
 NGOs.
üVarious Non – Governmental Organizations plays a vital
role in the development of the society in terms of
infrastructure projects.
üThese are the organizations which present the problems
of the society to the nation clearly and properly.
üThere are various NGOs which are involved for the
development of the society along with considering the
environment of the society.
Project sponsors
üProject sponsors as the name suggest is based on the organization which
sponsor the project.
üIt the organization which sponsor the project and take each and every
responsibility of the project.
üProject sponsors are mostly private organizations.
üThe project sponsors sign the concession agreements which the
government agencies for all the clearance and permissions.
üThis agreement include the operation of the projects, quality standards
and specifications to be followed, etc.
üProject sponsors can be the project development or can sign contracts
like EPC contracts with other agencies and firms.
Insurance and Guarantee providers

üInsurance providers are the organizations and firms which are linked
with providing the insurance for any damage and risk suffered during
the generation of the projects.
üThese types of insurance are required during the construction and
operation phase of the project.
üAlong with insurance providers, guarantee providers are also there
for the infrastructure projects to serve as a backbone to the
infrastructure development companies at the time of any risk,
damage or any causality.
Regulators
üRegulators are present, when private organization are allowed in
the infrastructure projects.
üRegulators are the independent organizations.
üThese organizations are basically meant for regulating the
service offered by the project, and to ensure the quality
standards of the project may be during or may be after the
completion of the project.
Infrastructure Players
Indian Players

üGovernment – Planning Commission, Ruling parties, TRAI, NHAI

etc
üConsultants – Feedback Ventures
üFinanciers – IDFC, IL&FS, ICICI, IIFC
üSponsors – TNRDC
üContractors – L&T ECC, HCC
Thank you

16